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Page 1: World Bank Documentdocuments.worldbank.org/curated/pt/833851468780344410/pdf/multi0page.pdf · A Progress Report on World Bank Global Environment Operations CO(TRDINATION October

Facing the Global Environment Challenge:

A Progress Report on World BankGlobal Environment Operations

CO(TRDINATION October - December 1 994

Uhe World Bank 'The World Bank

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Page 2: World Bank Documentdocuments.worldbank.org/curated/pt/833851468780344410/pdf/multi0page.pdf · A Progress Report on World Bank Global Environment Operations CO(TRDINATION October
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Title

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* Fax Number

l Organization

Address

I City/State/Postal Code

l Country* 6

l Please mail to: Facing the GlobalEnvironmentChallenge Subscriptionl * Global Environment Coordination DivisionI The World BankI * 1818 H Street, N.W., Room S-2145| Washington, DC 20433 U.S.A.

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l Please check the box that best describes your place of work. (Check only* e one.)I El AA International or regional organizationI * E BB Environmental ministry

El O CC Other governmental agency or ministryl * E DD Embassy

El 2 EE Nongovernmental organization or associationl * El FF Research institution* El GG Libraryl El2 HH Business 0l OlII Consultant* .EO JJ Studentj El KK News mediae El LL Energy equipment supplier

El MM Environmental services companyE g a NN Environmental equipment supplierE z 00 Other

l @ Please check the box(es) that best describes your area(s) of interest.* (Check all that apply.)

El* O 11 Climate changel El 22 Biodiversity 0

l El O 33 Ozone depletionl El 44 International waters

E * 2 55 Sustainable development in general66 Other

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* Contents

Introduction page 1

Key Events & Developments 2

Portfolio Review:Biodiversity 4Climate Change 8Ozone Layer Protection 14International Waters 20

Global Forum: Concepts in ReviewGlobal Overlays for Climate Change 22

Biodiversity at the World Bank 24

Participation & Social Assessmentin World Bank Operations Work 30

General Information 32

Project Mahrix:

GEF World Bank ProjectsMontreal Protocol Projects

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OCTOBER-DECEMBER 1994 * 1

Facing the Global Environment ChallengeA PROGRESS REPORT ON WORLD BANK GLOBAL ENVIRONMENT OPERATIONS

||j*6jtdl]:l1| i] It iFACINC 7HE GLOBAL ENVIRONMENTCHALL.ENCE IS A FORUM ABOUT BROAD ISSUES

AND DEVELOPNMENTS IN THE WORLD BANK'S GLOBAL ENVIRONMENT WORK. Inaddition to its Global Environment Facility (GEF) portfolio review, thereport reflects the Bank's collaboration with the GEF to integrate globalenvironmental concerns into the Bank's regular project and sector work, tohelp governments fulfill their obligations to the environmental Conven-tions and to integrate global environmental concerns into their nationalagendas. The report is issued by the Global Environment CoordinationDivision, with contributions from staff in the World Bank Group whowork on global environmental issues, such as Bank operations groups,Task Managers for Bank global environment projects, and the Interna-tional Finance Corporation.

, [I ~O *ii ' 0 THE GLOBAL ENVIRON- -

MEN'I COORDINATION - i

DIVISION (ENVGC) is a -

unit of environmental .

* and operations special- -

ists in the Environment

* Department who t- - ,--

oversee the World

* Bank's work as an i

implementing agency -

for the GEF and 0

* Montreal ProtocolMultilateral Fund

' (MFMP).Glant panda, native to China but a global symbolfor conservation

-* l[]!lr;|2ill.ll_ The GEF has emerged as a catalyst to help countries integrate globalenvironmental concerns into their national development goals. As a

* financial mechanism providing grants and concessional funds to develop-

ing countries for projects which protect the global environment, the GEFenables governments to address global environment issues they would

otherwise be unable or unwilling to undertake. In doing so, the GEF* demonstrates a new approach to global cooperation. The World Bank is a

GEF implementing agency along with the United Nations DevelopmentProgramme (UNDP) and the United Nations Environment Programme(UNEP).

0t1lula|;;{{]*7.1LllAl lt"4 !01'bl:l$SlS_ * Climate Change* Biodiversity Loss

* International Waters Pollution* Ozone Layer Depletion

IN TIlE INTEREST of environmental responsibility, twe in,ten'd to miae this and other pub/lications available electronically durtng this cromingyear.

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2 * OCTOBER-DECEMBER 1994 Facing the Global

K E Y EVENTS AND DE V E LO PM EN TS

The Second GEF Council MeetingAT THE SECOND MEETING OF THE GEF COUNCIL, HELD ON NOVEMBER 1-3, COUNCIL

MEMBERS AGREED ON THE FOLLOWING OUTCOMES:

GRANT RESOURCES AVAILABLE FOR COMMITMENT IN 1995THE COUNCIL APPROVED AN INDICATIVE CEILING OF $280-340 MILLION FOR GRAN'I'COMMI-rMENTS IN 1995. International waters and land degradation projectscannot be included in GEF work programs until the Council has agreed onoperational policy guidelines, and both are still under development. Approvedapproximate allocations are:

Ozone Depleting Substance (ODS) Phase-out in EasternEurope: $60-80 million.

Enabling Activities in Climate Change, Biodiversity andInternational Waters: $80-100 million. Activities includenational strategies, capacity building, training, inventories,research, and information dissemination.

Investment Activities: $140-160 million. Activities weretacitly agreed but referred to the Conventions for endorsementfor:

BIODIVERSITY PROJECTS: where globally-significant biodiversity is seriously threatened,country commitment is clear and project prepara-tion well advanced

CLIMATE CHANGE PROJECTS: demonstration orinnovative projects in energy efficiency andrenewable energy

PROJECT PREPARATION FUNDS IN THE NEW PDFTHE COUNCIL APPROVED AN INITIAL (Block A grants of up to $50,000) but

-ALLOCATION OF $15 MILLION rO A instructed the Secretariat to submit aPROJECT1' DEVELOPMENTr FUND (PDF) FOR revised proposal for fund for morePREPARING NEW P'ROJECTS, TO BE detailed and complex preparationEFFECTIVE JANUARY 1. The Council work (up to $1 million). The revisedauthorized funds to be released for proposal will be discussed at the nextpreiminary project development Council meeting.

THE SCIENTIFIC AND TECHNICAL ADVISORY PANEL (STAP)THE COUNCIL AGREED THAT STAP Pilot Phase. At present, experts onWOULD SEIECTIVELY REVIEW the STAP roster are invited byPROJECTS, either at its own initiative implementing agencies on an indi-or at the request of the Council or vidual basis to review and commentthe GEF CEO, rather than review- on proposed projects prior to presen-ing every proposed project as in the tation to the Council.

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Environment Chlallenige OCTOBER-DECEMBER 1994 * 3

K E Y E VEN TS AND DE V E LO PM EN TS

Good News from the Bahamas'I'HE IRS'I' NIEET'IN(; I 'I'HE. CONFEIREN(CE (1:F 'IHE 'ARl'I'IESO'I'HE (.ON\'EN'I'ION

ON BIOLOG;1(AI. I)IVERSI'I'Y (CO()') WAS HELD) IN NASSAII, 13AHANIAS FROM NOVENIBER

28 1 o 1)Ew(:ENi3-.R 9. NIlEE'I'IN(i OUIVIO( ONIIS INC(IJI)E:

INTERIM FUNDING MECHANISM'I'HE (COP1 I)D()EI) D 'I'HAI'IHE (1GEF SHOIJIU) RENIAIN 'I'HE IN'I'ERINI FlJNI)ING

NIECHANISNI FOR 'IHE C'ONVEN'I'ION ANI) INS'I'RIC'I'II) 'I'HE IFACIII'Y '1'0 'AKE

'RONII"I'' NIEASUIRES 'I') SJPI'POR'I' I'RIORI'I'Y PROJEC'I'S ANI) A(.'l'IVI'I'IES. Thlis is

excellent news: the GEF implementing agencies can now submit somebiodiversity projects to the Council in February. Under Convention terms,only developing countries that have ratified are eligible for GEF funding.

PROGRAM PRIORITIES'I'HE C(OI' ENI'HASIZEI) 'I'HA'1' lI)I)IVERSI'I'Y (.()NSERVA'I'ION ANI) II'S SUS'I'AINABLE

USE ARE KEY El.ENIEN'I'S IN ACHIEVING SIJU'I'AINABLE D)EVEI.INIEN'I' AND) CON11BA'I'-

'T'ING iPOVEiRiTYi. The COP highlighted the need for both enabling activitiesand investment projects, emphasized that program priorities shouldpromote use of regional and local experts and be flexible to accommodatenational priorities and regional needs within the aims of the Convention,and provided a list of program priorities:

* 'ROJEC"I'S ANI) PROGRANIS 'I'HAI ARE * I'ROJE(."I'S'I'HA'I' SI'RENG'I'HEN

NA'I'IONAI. PRIORI'I'IE:S and fulfill the C:ONSERVA'I'ION, management andConvention's obligations sustainable use of ecosystems and* IDEN'I'IIICA'I'ION ANI) NIONI'I'ORING habitats, including coastal and(inventory) of wild and domesticated marine ecosystems and otherbiodiversity components, especially environmentally vulnerable areasthose under threat such as arid and semiarid lands and* CAP'ACI'I'Y 1B1I)ING, including human mountain regionsresource development and institu- * PRIOJ( ELI'S 'I'HA'I'I)RONO'I'E CONSER-tional strengthening, to facilitate VA'I'ION and/or sustainable use ofpreparation and implementation of endemic speciesnational strategies* I'ROJEC'I'S WHICH PRONMOTE ACCESS '10,

transfer of and cooperation for jointdevelopment of technology* PROJ(E(:'I'S 'I'HA'I; I'RONIO'IE r -t

StJS'I'AINABIIH'r'Y and can serve asdemonstration projects, and encour-age scientific excellence* INNOVA'I'IVE NIEASURES to conserve ...,;biodiversity and/or sustainable use,including economic incentives andmeasures to compensate localcommunities for opportunity costs* PIROJEC'I'S S'I'REN(;'I'HENIN(; L)CAI. ANI)

INDI(;ENOUS P'EOPLES' INVOI.VENIEN'I'

and integrate social dimensions, With more than 20.000 species wortdwide. orchids comprtse almost one-twelfth of J. Post

including those related to poverty the world'sflowering plants

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4 * OCTOBER-DECEMBER 1994 Facing the Global

P O R T F O L I O R E V I E W B I O D I V E R S I T Y

THE BIODIVERSITY INVESTMENT PROJECT PORTFOLIO IS MADE UP OF PROJECTS ADDRESSING LOSS OF BIOLOGICAL DIVERSITY CAUSED BY DEGRADATION OF NATURAL

HABITATS AND OVERUSE OF NATURAL RESOURCES. THIS SECTION TAKES A LOOK AT PROGRESS IN THE PORTFOLIO S PROJECTS DURING THE REPORTING PERIOD.

Newly hatched baby turtle, Seychelles. J. Post

Seychelles Project He/ps Stop Turtle SlaughterG;OOD NE.WS ON 'I'HE 13IODIVERSITIY Seychelles Island Foundation,1FRON'I': IN 'I'HF SE.Y(CHELLES, WI'I'H entrusted with managing two WorldHELPI F'RONM 'I'HE (EF.- 13ANK BIODI1VFR- Heritage sites, has considerablySIn1' I1ROJE.C'I, 1LE(ISILA'I'ON HAS BEE N improved its management capacity.PIASSEI) BANNING AlA. HARVESTIN'NG 01' The research station is beingSE.A'III)R'FIE.ES F:OR CRIAIFI' WORK ANI) reconstructed and scientific moni-CONSUJN1IP'ION. toring and research has resumed. A

The new laws have already had feral goat eradication campaign isan effect: turtle shell is now seen as nearly complete, reducing destruc-a valueless commodity, not worth tion of the fragile endemic plant lifekilling for. Turtle craftwork has and tortoise habitat on the atoll.been phased out, and all turtle A Dutch co-financed trust fundartisans have been helped to find for biodiversity conservation isnew business areas or jobs, some in being used to protect the very rarethe craft sector. An assessment of paradise flycatcher and for restora-turtle and tortoise stocks is now tion efforts in mangrove areas andbeing launched and remaining conservation work on endemicthreats to the populations will be plants. The fund is also used forestimated and strategies for conser- marine biodiversity conservationvation developed, work such as monitoring coral reef

Aldabra's ecosystem restoration changes and impacts from land-is proceeding as planned, and the based pollution sources.

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Environment Challenge OCTOBER-DECEMBER 1994 * 5

P O R T F O L I O R E V I E W B I O D I V E R S I T Y

GEPRENAF: A Biodiversity Test CaseAFTER NIONTHS OF PREPARATION, THE development and reduce pressure onWES'I' AFRICAN COMMUNITY-BASED the conservation areas.WILDLIFE AND NA'I'URAL RESOURCE In the conservation areas, theMANAGEMENT rIROJECT (BETTER KNOWN project will support measures such as13Y l'lS FRENCH ACRONYM GEPRENAF) WILL anti-poaching, bush fire control andSOON BE READY FOR GEF GRANT NEGOTIA- sustainable use of some wildlife and'I'IONS Wl'l'H BURKINA FASO AND CO'I'E secondary forest products. By promot-DI)'VOIRE. ing sustainable or regulated harvest-

A unique project with a highly ing, the project aims to ensure theparticipative character, GEPRENAF long-term survival of the area's faunaapplies community-designed "gestion and flora. The details of each compo-de terroirs" (land management plans) nent will be decided by the indi-to biodiversity conservation. This vidual communities with help fromparticipative approach to sustainable Technical Support Units staffed bydevelopment is currently being tested trained local wildlife and landby the Bank in a rural development management specialists.project in west Africa. GEPRENAF A comprehensive, detailedwill be one of the first attempts in west system for monitoring and evaluatingAfrica to link conservation and sustain- the project's performance is beingable use of wildlife resources. developed so that the lessons learned

The project will test the gestion can be documented and appliedde terroirs approach over a wildland elsewhere. The M&E system willarea of almost half a million hectares in assess the project's implementationthe Comoe ecosystem spanning performance and its impact onBurkina Faso and Cote d'Ivoire. This ecological, institutional, and socio-vast area borders the internationally economic conditions. This will berenowned Comoe National Park, one done primarily at the village level,of west Africa's largest surviving but also for the entire ecosystempristine wildland areas. through aggregation and the use of

GEPRENAF will help the area's aerial photography.50-odd communities divide the land GEPRENAF has been a chal-around their villages into separate lenge to prepare, because of the hugedevelopment and conservation tracts area it covers and the need forand create appropriate land manage- comprehensive baseline data andment plans. intensive consultation with many

In the development areas, the communities. It will also be a chal-objective will be to increase sustain- lenge to implement successfully.able production of crops and other Motivating that effort is theusable natural materials. The project promise it holds for achieving bothwill support small-scale investments sustainable development and conser-such as irrigation, animal health and vation in one of west Africa's species-agroforestry to simultaneously promote rich natural savanna ecosystems.

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6 * OCTOBER-DECEMBER 1994 Facing the Global

P O RT F O L I O R E V I E W .B I D I V E R S I TY

Protecting East

THE LANDSCAPE OF EASTERN AFRICA IS ingly threatened by burgeoningDOMINATED BY THE GREAT RIFT human population pressure and

* VALLEY, LAKE VICTORIA AND THE human activities in the lakes and onVALLEY OF THE RI% ER NILE. THE HIGH the surrounding catchments.RAINFALL AREAS OF EAST AFRICA The most serious problemsSURROUND LAKE VICTORIA AND facing the Rift Valley lakes are thePROVIDE THE NILE WITH MORE THAN result of overpopulation within theHALF ITS WATER. THIS WET REGION lakes' basins. Excessive suspendedSUPPORTS MANY WETLANDS, INCLUD- sediment from soil erosion causedING LAKE VICTORIA WITH ITS FRINGING by deforestation and overgrazingPAPYRUS SWAAMPS AND OTHER WETLAND and pollution from domestic and

* H~ABIT.ATS EXTENDING OVER THREE industrial waste have causedCOUNrRIES. eutrophication and eradication of

some freshwater species. AccidentalPROBLEMS WITH THE LAKE and deliberate introductions ofSYSTEMS exotic plants and animals andTHE EAST AFRICAN LAKE SYSTEMS, overharvesting of lake fisheries and

- EVOLLITIONARY CENTERS FOR AFRICAN orher aquatic resources have: FISH, ARE PARTICULARLY' IMPORTANT resulted in serious reductions of* FOR BIODIVERSIfn. Lakes Victoria, some species and local extinctions: Tanganyika and Malawi are high of others.

endemism centers for Africanfreshwater fish, especially ADDRESING THE PROBlEMSmouthbrooders and other cichlids. TWO BANK AND T%VO LUNDP GEFThis blodiversity and the lake PROJECTS SEEK TO ADDRESS SON1E OFfisheries' productiviry are increas- THE THREATS TO BIODIVERSITY IN THE

EAST AFRICAN LAKES. Elsewhere,Bank-funded projects are providingsupport to better protect and

STRETCHING FROM LEBANON TO MOZAMBIQUE, THE GREAT RIFT manage some of the East AfricanVALLEY IS A 6500 KMI FISSURE IN THE EARTH'S CRUST. In East lakes and their drainage basins, with

VALLEY IS A ~~~~~~~~~~~~client countries borrowing toAfrica, the Rift Valley forks around the Lake Victoria basin finance their own environmentaland provides a dramatic setting for a series ofmajor lakes, the priorities. In Kenya, the Lakecenter of some of the continent's most exciting wetland Nakuru National Park is one of thediversity. From Ethiopia to Tanzania, a chain of freshwater parks to benefit under the Bank-

funded Protected Areas andand saline soda lakes punctuate the floor of the eastern WIldlife Serice project. LakeValley. The Valley's westemn arm includes Lakes Kivu, Nakuru, one of the soda lakes,Edward and Albert, which feed into the Nile's tributaries, supports a distinct and spectacularand Lake Tanganyika, the second deepest lake in the world biota with a million or more pink

lesser flamingos filtering blue-greenafter Lake Baikal in Siberia. To the south, Lake Malawi lies algae from the alkaline waters of thein the Valley. lake.

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Environment Challenge oCTosER-DEcEMBER 1994 * 7

P O R T F O L I O R E V I E W . B I'O D I V E R S I T Y

African Lakes

Lake Al alawiIN LAKE MALAWI, THE BANK GEF GEF project currenrly under prepara-PROJECT WILL SUPPORT THE FIRST tion is aiming to find measures co dealCONIPREHENSI% E SURVEYS OF THE with land-based pollution sources andLAKE'S ANMAZING BIODIVERSITY, another introduced exotic, the wateridentify 'hot spots' along the hyacinth. Originally a native of tropicalshorelines of Mlalawi, Tanzania and America, water hyacinth has spreadNiozambique and develop a rapidly through Africa's rivers andbiodiversiry management plan. This lakes, impeding navigation, cloggingplan will provide recommendations warerways, changing the freshwaterto esrablish and strengthen pro- habitat ecology and creating conditionstecred areas in the lake for conserva- that are ideal for carriers of disease suchtion and fish nurseries. and provide as bilharzia-carrying snails and nmalaria-useful guidelines for sustainable transmitting mosquitoes. Waterharvesting, bearing in mind the hyacinth thrives in wetlands whereparticular needs of artisanal fisher- pollution levels have increased. Imple-men who depend on the lake menracion of water hyacinth contiolfisheries for subsistence. and other urgent actions will starr

during the project's one year prepara-Lake lVictoria tion phase and particular attention willLAKE VICTORIA SPANS UGANDA, be given to finding uses for the prolificTANZANIA AND KENY'A AND IS THE weed that could benefit local communi-WORLD'S SECOND LARGEST FRESHWA- ties; water hyacinth has porential bothTER LAKE, WITH A SLIRFACE AREA OF as cattle fodder and nitrogen-rich68,000 SQ. KNI. It is a source of water fertilizer.and food for millions of people andtheir livestock, and harbors unique Lake Tanganyikabiological resources. LUNDP HAS A SINIIAR GEF INTERNATIONAL

LUnforiunately, the lake's WATER PROJECT ADDRESSING POLLLITION

biodiversiEy and fisheries productiv- AND BIODIVERSIT' IN LAKE TANGANYIKA,iry are being depleted by overhar- through regional cooperation betweenv'esting, pollution from human, Burundi, Tanzania, Zambia and Zaire.agricultural and industrial waste and The 1470 meter deep lake is home tothe depradations of introduced oser 500 fish and other aquatic animals,exotic species. The deliberate but most of which evolved in the lake basinunwise introduction of the Nile itself.perch to increase lake fishery stocks Elsewhere in East Africa anotherresulted in a rapid increase in this LINDP GEF project is supportinglarge predator and a 1 0,000-fold wetland surveys of lakes and otherreduction in native fish and extinc- werland habitats in Kenya, Tanzaniation of many of the 170 cichlids, 98% and Uganda as part of a regionalof which were unique to rhis lake. support program to sirengthen instru-

WVhile it is too late to do any- tional capacity to protect and managething about the Nile perch, a Bank biodiversicy.

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8 * OCTOBER-DECEMBER 1994 Facing the Global

PO RT FOLI O R EVI EW * C Li MAT E C HAN G E

THE CLIMATE CHANGE INVESTMENT PROJECT PORTFOLIO IS MADE UP OF PROJECTS ADDRESSING PROBLEMS CAUSED BY GLOBAL

WARNIING, 13ARTICULARLYTHE EFFECTS ON CLIMATE FROM GREENHOUSE GAS EMISSIONS RELEASED IN FOSSIL FUEL USE ANDTHE

DESTRUCTION OF CARBON-ABSORBING FORESrS. PROJECTS RANGE FROM INCREASING CONVENTIONAL ENERGY EFFICIENCY TO

ENCOURAGING DEMAND SIDE ENERGY MANAGEMENT AND APPLICATION OF RENEWABLE TECHNOLOGIES. THIS ISSUE FEATURES

A LOOK AT' THE NEW SOLAR INITIATIVE AT THE WORLD BANK AND A REPORT ON OTHER GLOBAL WARMING INITIATIVES.

Rwable Energy at e World Bank: Trh BankIs New Solar itiative

WHAT IS THE SOLAR INITIATIVE?IMPLEMENTING THESOPLARMENTINGTHE The Solar Initiative is a new effort by the World Bank to work with its

member countries and the energy industry, research institutes and non-governmental organizations to commercialize solar and other renewable

The Industry and Energy energy technologies and significantly expand their applications in develop-Department (TEN) at the ing countries. It has two main thrusts:World Bank's Vice Presi-dency for Finance and Pri- * Preparation andfinance of commercial and nearvate Sector Development commercial applications(FPD) is in charge of the * Facilitation of international research, design andprogram. Key managers development (RD&D)are:

WHAT RENEWABLE ENERGY APPUCATIONS DOES THE INMATIVE COVER?* Richard Stern The Initiative covers all renewable energy applications that are considered

Director* Dennis Anderson important for developing countries but have not yet received adequate

Adviser attention in the Bank's lending program.The Solar Initiative covers applica-* Karl Jechoutek tions using direct solar, wind and biomass energy resources, which are

Chief renewable and indigenous to almost all countries. Geothermal energy is* Achilles Adamantiades also included since it is considered an inexhaustible and under-utilized

Prineipal Power resource. Large-scale hydropower is not included even though it is a

* Ernesto Terrado renewable energy technology because it is a conventional, long-establishedPrincipal Energy . power generation application.Planner

WHY THE RECENT INCREASED ATrENTION TO RENEWABLE ENERGY?

RENEWABLE ENERGY Heightened environmental con-| TECHNOLOGIES cerns, especially about global

RELIABILITY warming caused by accumulatedcarbon dioxide in the atmosphere,have convinced many that non-carbon emitting technologies mustbecome a key goal of future energy

-C COST production strategies. This in-creased attention to renewable

COST OP CONVENTIONAL technology has become more viableALTERNATIVES in the last decade as technological

advances and dramatic cost reduc-1970 1 91994 tions in the field have taken shape.

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Environment Challenge OCTOBER-DECEMBER 1994 . 9

PO RT FO Li O R EVI EW C LI MATE C HA N G E

WHAT ROLE DOES THE GEF PLAY IN THESOLAR INITIATIVE?GEF global warming projectsinclude energy efficiency andrenewable energy activities.As the India RenewableEnergy Project demonstrates, - i ait may be possible on environ- V- -Jg0&_ mental grounds for GEF _igrant financing to "buy down" gthe high capital or transaction orcosts of near commercial -t.-renewable energy technolo-gies to enable them to meet -,

Bank investment criteria andput them into practical (F r S1operation now. The SolarInitiative aims to look forsimilar opportunities that canbring these new technologiesinto the mainstream of theBank's lending program. Solar panel rstaiation in India. an enwiroTmentalyifriendIy and low mntenance way to meet local energy needs

WHAT APPUCATIONS ARE THE MOST PROMWSING IN THE IMMEDIATE TERM?Biomass-based applications such as wood residue combustion in the forest product industries and industrialscale methane generation from animal and distillery waste have long been used commercially in many coun-tries. New techniques like fluidized-bed combustion systems and gasification systems, especially when com-bined with high efficiency gas turbines, are likely to expand these applications considerably.

Windfarms and solar thermal conversion, particularly through parabolic trough technology, have madeimportant technical and economic progress for large-scale grid-connected power applications in the last decade.Depending on the wind regime, some windfarm installations can already be competitive with fossil-fuelalternatives.

Solar thermal schemes are still relatively more costly but the cost differential can be reduced by properlyconfiguring the solar field with a combined-cycle/gas-turbine set that obviates the need for energy storage.Photovoltaic (PV) cells costs have dropped from about $50 to about $6 per peak watt, considerably expandingopportunities for practical PV power use, particularly for rural applications such as lighting, water pumping,battery charging and vaccine refrigeration. Further cost reductions can extend PV use in the future for peak-shaving purposes in urban areas.

WHAT ACTIONS WILL THE BANK IMPLEMENT UNDER THE SOLAR INITIATIVE?* Commercialandnearcommercialapplications: The Bank will intensify its efforts to include renewable energyinvestments in energy projects and in agriculture, health, rural development and water supply. This will bedone by forging working alliances with all central and regional Bank units involved in energy-related work,promoting a campaign to Bank staff on renewable energy investment possibilities, and reviewing the Banklending program and identifying opportunities to introduce renewables as an energy supply option.* RD&D Facilitation: The strategy for facilitating RD&D is being refined through consultations with otherinternational organizations, research groups and government agencies. The idea is to leverage the Bank'sproject financing capability to provide a focus on ongoing RD&D work, especially in developed countries, andsteer some of these efforts towards areas considered to be more urgently needed by the developing countries.

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10 * OCTOBER-DECEMBER 1994 Facing the Global

PORTFOLIO REVI EW* C LIMATE C HANGE

GHG Mitigation Country Brief: c H I N A

A CHINESE GREENHOUSE GAS (GHG) ABATEMENT STRATEGY IS AN INTEGRAL PART OF A GLOBAL EFFORT TO COMBAT CUMATE CHANGE, BECAUSE

OF CHINA'S SHEER SIZE IN THE GLOBAL ECONOMY, ITS HIGH REAL GROWTH RATES, AND THE -DOMINANT ROLE OF COAL FOR ENERGY PRODUCTION.

IN AUGUST, A STUDY WAS COMPLETED DEMONSTRATING POLICY OPTIONS TO MITIGATE GHG EMISSIONS IN CHINA OVER THE NEXT THREE DECADES.

THE STUDY, FINANCED BY THE GEF, WAS CARRIED OUT BY A TEAM OF UNDP, WORLD BANK, NATIONAL ENVIRONMENTAL PROTECTION AGENCY AND

CHINA STATE PLANNING COMMISSION STAFF.

BASELINE SCENARIO equivalent (kgce) in 1990 to 2,280

* THE BASELINE SCENARIO DEVELOPED kgce in 2020. While this number isBY THE GHG STUDY TEAM estimates considerably lower than those forthat China's gross national product Eastern Europe or resource-rich(GNP) will grow at a rate of 8% per economies such as South Africa andyear, so that per capita GNP in 2020 Venezuela, it would be about twicewould be $2600. Adjusted for the level of Brazil's and 30% abovepurchasing power differences, the Mexico's today. Carbon dioxidetrue standard of living in China will emissions under the baselineprobably be much higher, with the scenario would increase to 2,354average income more in the range mtC (megatonnes Carbon) in 2020,of $4000-5000 or even higher. a 230% increase over 1990.

INCREASE IN ENERGY DECUNE IN ENERGYCONSUMPTlON INTENSITYTHE SCENARIO ASSUMES THAT PER CHANGES IN THE MACROECONOMIC

CAPITA ENERGY CONSUMPTION would STRUCTURE have had a major impactincrease from 863 kilograms of coal on the slow growth of China's

energy demand in the last 15 years,accounting for 70% of the declinein energy intensity from 1981-85.These factors include slow growthin residential sector energy use,

In 1990, CO accounted for 86%* of China's changes in mix of products, andGHG emissions, broken down as follows: increases in energy-intensive

% % CO, product imports. Structural changesCO, 2 are expected to continue contribut-

Sector industry emissions ing to energy intensity savings.

power generation 24 The GHG mitigation teamresidential uses 14 identifies four major factors:transport 7 * a declining share of industry inindustry 51 GDP (7% of energy intensity

energy production 15 decline in scenario);building material 12 * slower growth of residential usechemicals 10 (10-15%);food and tobacco 10 * changes in shares of industrialpower industry 32 subsectors from basic, energy

* 14% emissions caused by methane (CFCs are intensive industries such asdisregarded) metallurgy and fertilizers to

I electronics and other less energy-

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Environment Challenge OCTOBER-DECEMBER 1994 * 11

PO RTFOLIO R EVI EW * C Li MATE C HA NGEE

GHG Mitigation Country Brief: C H I N A

intensive subsectors (9%);and in feeding programs and ricechanges in the product mix cultivation practices can reducewithin industries towards higher methane emissions from thesequality and higher value added sources at negative costs.products (35-40%).

These effects are expected in Afforestation Programthe garment, chemical, machinery Afforestation programs can combineand building materials industries. cost-effectiveness with significant

impacts on China's GHG baselineemissions, as the plantations

SECTORAL INTERVENTIONS remove CO. from the atmosphere.THE STUDY ALSO IDENTIFIES THE The study delineates a program thatFOLLOWING FOUR GROUPS OF combines carefully managedSECTORAL INTERVENTIONS THAT plantations with plantations ofWOULD REDUCE CHINA'S GHG EMIS- selected high growth fuelwoodSIONS PATH BELOW THE BASELINE OF species. A large-scale afforestation2,354 MTC IN 2020: program is estimated to sequester

2.4 to 4.6 billion tons of carbon overHigh Energy Efficiency a thirty year period. In 2020, theThis scenario would reduce GHG amount of carbon sequesteredemissions by 330 mtC (14%). Given would be 10% of China's baselinethe high share of industry in GDP emissions in that year.and the high energy intensity of theChinese industry, the study identi- Alternative Energy Supplyfied industrial energy efficiency This scenario could achieve aprojects to be the most cost- reduction of 237 mtC (10.1%). Theeffective way to reduce GHG country's large size offers significantemissions. potential for renewable energy use,

even though cheap and plentifulAgricultural Programs coal reserves and considerable leadThis scenario would avoid emis- times for some renewable technolo-sions of around 20 mtC (0.8%). gies limit alternative technology useEven though changes in agricultural in the near future.practices cannot contribute much to Despite a limited role in thereducing China's GHG emissions; national energy supply scenario,they are quite cost-effective as opportunities for renewable tech-compared to changes in energy nologies are still tremendoussupply. The study calculated that compared to their current world-improved cattle production, changes wide scale. Clearly, even a minus-

continued7Jr~

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12 * OCTOBER-DECEMBER 1994 Facing the Global

PO RT FOLI O R EVI EW * C LI MAT E C HA N G E

GHG Mitigation Country Brief: C H I N A

cule role for renewables in China's alternative energy supply. m Afuture energy supply could dramati- * NUCLEAR POWER. Chinesecally alter world markets for experts have argued for setting up a The study:renewables. nuclear power program as an * recognizes the importance* HYDRO CAPACITY: Under the alternative to coal, anticipating of economic reform for

baseline scenario, China will steep drops of generating cost until improving overall energyquadruple hydro capacity by the 2020. Even at these estimates,year 2020. Developing these however, nuclear would be consid- efficiencyresources even further will likely erably more expensive than coal. Its * puts its short-term emphasisdrive up marginal cost. The study levelized cost by 2020 would be in on no-regrets programs:team calculated that hydro expan- the range of .35 to .66 (1990 Y/ industrial energy efficiencysions beyond the baseline will result kWh), roughly twice the level of improvements and anin levelized cost of 0.35 yuan/kWh coal. aggressive afforestation(7c/kWh) or higher. * NATURAL GAS. In addition to program, continuing the* WIND POWER. Wind power seems alternative sources of electricity Chinese government'sto have the largest potential among supply, there are also non-power efforts begun in the laterenewable technologies. Investment alternatives for GHG emission 1980scosts are now in the same range as reduction, some of which are very * recommends an expansioncoal-fired plants and levelized cost-effective. Among the most of efforts to develop renew-operating costs would be generally important is the expanded develop- able and low carbon energycomparable. The study team ment of natural gas resources. Even able in the m ediumestimated that by 2020 levelized though natural gas can also be used sources in the mediumcosts for wind would be in the range for power generation, its best use term.of.20 to .37 as opposed to .18-.25 may be as a substitute for coal in(1990 yuan/kWh) for coal. By residential cooking and heating,capturing scale economies and both for convenience and to avoidimproving reliability, wind power local environmental hazards causedcan become a permanent part of by coal burning.Chinese energy supply. * COALBED METHANE. Currently,* SOLAR POWER. Despite steady less than 5% of methane emissionsdecreases in costs over the past from state-owned coal mines aretwenty years, solar power is not captured and used. By adoptingexpected to be competitive to coal best-practice, China could increasein the next thirty years. Levelized its recovery levels to 2-4 billion cm,costs for solar thermal will be at .32- which is around 20% of the.7 (1990 Y/kWh) in 2020 and 0.5-1.0 country's annual natural gas produc-for solar PV, considerably above the tion. With the estimated expansioncosts for coal and other forms of of coal mining, this amount could

even rise to 30 billion cm.

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Environment Challenge OCTOBER-DECEMBER 1994 * 13

PO RT FO LI O R EVI EW * C LI MATE C HA N G E

Cote d'Ivoire Crop Waste Power Project Cancelled

THE PROPOSED COTE D'IVOIRE CROP financing, and generation from palm oilWASTE POWER GLOBAL WARMING residues was marginally economic andPROJECT, WHICH WAS TO HAVE BEEN could qualify for GEF assistance on theASSOCIATED WI'TH AN INTERNATIONAL grounds that it would substitute for theDEVELOPMENT ASSOCIATION (IDA) more environmentally-damaging im-

ported fossil fuel.PROJECT TO EXPAND ELECTRIC POWER In a new economic development,GENERATION FROM CROP WASTE SUCH however, it has now been confirmed thatAS BAGASSE AND PALM OIL RESIDUES, Cote d'Ivoire has natural gas reserves thatHAS BECOME A VICTIM OF CHANGING can be used to generate power at the lowCONDITIONS IN 'I'HE HOST COUNTRY. cost of about USc4.5/kWh. With low-cost

When the crop waste project natural gas now available, the palm oilwas originally planned, imported residues are no longer a potentiallyfuel oil was the alternative fuel for competitive fuel, even with a modestpower generation and the forecast GEF subsidy.cost of power was about UScld/ As a result, the GEF project has beenkWh. At this cost, increased cancelled and the earmarked grantbagasse power generation was resources have been allocated to moreeconomic and could qualify for IDA cost-effective alternative projects.

Windfwm germ" altenative energyI K Ahmed

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14 * OCTOBER-DECEMBER 1994 Facing the Global

PORTFOLIO RE'VIEW * O'ZONE PROTECTION

OZONE LAYER PROTECTION PROJECTS AT ENVGC HAVE BEEN DIVIDED BETWEEN THE MONTREAL PROTOCOL MULTILATERAL FUND

AND THE GEF. THE MULTILATERAL FUND ELIGIBILITY CRITERIA ARE BASED ON UNITED NATIONS COUNTRY ECONOMY

CLASSIFICATION WITH LIMITS BASED ON PER CAPITA OZONE DEPLETING SUBSTANCE (ODS) CONSUMPTION. THIS CLASSIFICATION

EXCLUDES LARGE ODS PRODUCERS AND USERS FROM RECEIVING MULTILATERAL FUND SUPPORT, PARTICULARLY ECONOMIES IN

TRANSITION LIKE THE FORMER SOVIET UNION AND CENTRAL AND EASTERN EUROPEAN COUNTRIES. HOWEVER, SINCE THE GEF'S

PILOT PHASE ELIGIBILITYCRITERIAWERE BASED SOLELYON GDP, SOME OF THESE COUNTRIES ARE ELIGIBLE FOR GEF ASSISTANCE.

Montreal Protocol Progress ReportTHE BANK S PORTFOLIO OF MONTREAL PROTOCOL (MP) INVESTMENT OPERA-

TIONS HAS GROWN TO ALMOST US$100 MILLION, AND PROJECTS WHICH HAVE

BEEN GIVEN PERMISSION TO PROCEED NOW AMOUNT TO OVER us$20 MILLION.

There are 29 separate operations including Project Preparation Ad-

vances (PPAs), of which 24 have been committed through a PPA orGrant Agreement and 18 are disbursing. In this quarter, MP projectcommitments through Grant Agreements have doubled to US$70million and disbursements have doubled to US$10 million.

GRANT AGREEMENTSA NUMBER OF GRANT AGREEMENTS WERE NEGOTIATED AND SIGNED DURING

THE LAST FEW MONTHS. Recently signed Agreements include: a Grant

Agreement with the Philippines (US$15 million); an Umbrella GrantAgreement with the Kingdom of Thailand (US$40 million); the firstozone-related Grant Agreements with Tunisia; and a US$17 millionUmbrella Grant Agreement with Indonesia. Based on Multilateral FundExecutive Committee (MFEC) approvals to date, about US$5 million isavailable for implementation of eight projects under the new Thaiagreement, and additional project proposals will be considered at theDecember MFEC meeting. In addition, the Bank cleared the secondIndia Project (Umbrella Grant Agreement of US$50 million) for negotia-tions, and the third China Project (Umbrella Grant Agreement of US$60million) is also expected to be cleared for negotiations in the nearfuture.

NEW INVESTMENT OPERATIONSNEW INVESTMENT OPERATIONS HAVE BEEN PREPARED FOR PRESENTATION TO

THE 15TH MFEC MEETING IN DECEMBER FOR PROJECTS IN ARGENTINA,

BRAZIL, CHINA, INDIA, INDONESIA, JORDAN, MALAYSIA, SLOVENIA, THAILAND,

TURKEY, AND URUGUAY. The Bank received project proposals worth US$110 million for the 15th Meeting; of this, over US $70 million has beencleared, and the Bank will work with its clients to finalize the remainingprojects for intercessional approval. With these projects, the Bank hasmet its commitments of presenting US$80-100 million of new invest-

ment projects for 1994.Total direct ODS phaseout is now estimated at over 650 tons, an

increase of 200 since the last quarter.

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Environment Challenge OCTOBER-DECEMBER 1994 . 15

PORTFOLIO RE Vl EW, OZON E:. PROTECTION

Country Focus: l N D I A

THE SPECIAL CHARACTERISIICS OF THE INDIAN CONTEXT HAVE PRESENTED NEW CHALLENGES TO WORLD BANK STAFF AND

INDIAN OFFICIALS INVOLVED IN OZONE DEPLETING SUBSTANCES (ODS) PHASEOUT. THE BANK HAS BEEN ACTIVELY HELPING INDIA

MEET THEIR OBLIGATIONS TO PHASE OUT ODS AS REQUIRED BY THE MONTREAL PROTOCOL SINCE 1993. SINCE THAT TIME ONE

PROJECT, MADE UP OF TWO SUBPROJECTS, HAS BEEN APPROVED BY THE EXECUTIVE COMMITTEE OF THE MONTREAL PROTOCOL

(EC), AND A SECOND, LARGER PROJECT IS BEING NEGOTIATED BETWEEN THE BANK, THE LOCAL FINANCIAL INTERMEDIARY AND

THE INDIAN GOVERNMENT. THIS SECTION OUTLINES ISSUES THAT AROSE DURING PROJECT PROCESSING AND THE MEASURES

TAKEN TO ADDRESS THEM, AND DESCRIBES AN INNOVATIVE INITIATIVE THAT THE BANK AND INDIA ARE UNDERTAKING TO

EXPEDITE APPROVAL OF SMALL-SCALE ODS PROJECTS.

BACKGROUND BANK ASSISTANCEIN 1991 INDIA PRODUCED AND TO INDIA ON MP MATrERSCONSUMED APPROXIMATELY 10,400 The Bank undertook discussions withMETRIC TONS OF OZONE DEPLETING the Government of India on MontrealSUBSTANCE. INDIA IS ONE OF THE FEW Protocol in 1992, and began assistanceDEVELOPING COUNTRIES WHICH IS in March 1993. During a pre-appraisalSELF-SUFFICIENT IN PRODUCING mission in March 1993, eight sub-CHLOROFLOUROCARBONS (CFCS) AND projects were identified, two of whichHALONS. ODS CONSUMPTION IN INDIA IS were finalized and submitted as anMAINLY IN THE FOAMS, REFRIGERA- ODS I project. ODS I was approvedTION, AIR CONDITIONING, AEROSOLS for US$1.2 million by the EC last June.AND SOLVENTS SECTORS. In a summer 1993 mission, a

India, which is eligible for number of new subprojects (mosdygrants from the Multilateral Fund, small aerosol sector projects) wereundertook a National Study on identified for inclusion under an ODSODS in 1990, ratified the Montreal II project. Funds for preparing projectsProtocol in June 1992, and com- for submission under ODS II havepleted their Country Program in been approved and are being dis-September 1993. At the same time, bursed. The Indian Government setthe Bank undertook project prepa- up an intemal approval process inration in line with the strategy August 1993 and a number of projectsoutlined in the Country Program. have been cleared intemally.

continued

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16 * OCTOBER-DECEMBER 1994 Facing the Global

PORT FO LI O REVIEW* OZONE P ROTE CTION

Country Focus: I N D I A

PROJECT PROCESSING: MAJOR ISSUES AND ACTIONS

SEVERAL ISSUES REQUIRED ATTENTION DURING ODS I PROCESSING WHICH RESULTED IN

SLIPPAGE OF THE ORIGINAL SCHEDULE. THE ISSUES HAVE BEEN RESOLVED, HOWEVER, AND THE

PROJECT HAS BEEN PROCESSED WITH ONLY MINOR OPERATIONAL DIFFICULTIES.

ACCORDING TO ESTABLISHED Based on a similar experience in Brazil, the BankPROCEDURE, ALL GRANTrs HAD TO and India engaged in discussions whichBE PROCESSED THROUGH THE concluded with the government authorizing theNATIONAL BUDGET. THIS WOULD Bank to sign the Grant Agreement directly withRESULT IN GREAT DELAYS DURING the financial intermediary, the IndustrialGRANT DISBURSEMENT. Development Bank of India (IDBI). This allows

the Bank to disburse the grant funds directly toIDBI, which is responsible for subprojectidentification, preparation and implementation.

THE GOVERNMENT OF INDIA The internal clearance process was set up by theESTABLISHED ITS OWN MULTI-STEP government to ensure equity, transparency andINTERNAL SUBPROJECT CLEARANCE fairness between and among large-scale andPROCESS WHICH, INITIALLY, WAS small-scale enterprises. Enterprises were calledTIME-CONSUMING FOR CLEARING A tO face-to-face meetings in order to ensureLARGE NUMBERS OF PROJECTS. ownership and commitment to projectrHE REVIEW PANEL SOMETIMES implementation, and to ensure mutual

CALLED PARTICIPATING understanding and resolution of issues. ThroughENTERPRISES SEVERAL TIMES TO experience and dialogue, the review process hasMEETINGS TO DISCUSS CERTAIN now been streamlined (only two of the originalSUBPROJECTS. project processing committees remain, certain

reports have been dispensed with, andsubprojects are sent to the Bank for review priorto the Technical Review Panel). A betterunderstanding of the review process andexpectations has emerged, and subprojects arebeing cleared on a timely basis.

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Environment Challenge OCTOBER-DECEMBER 1994 * 17

PO RTFO LI-O R EV I EW, OZON E P ROTE CTI O N

Country Focus: D I A

SMALL PROJECT APPROVAL PROCESSBECAUSE INDIA HAS MANY SMALL-SCALE ODS

USERS, THE BANK AND THE GOVERNMENT OF INDIADEVELOPED A WAY TO EXPEDITE APPROVAL OF AND THE BANK'S MP PROCEDURESDISBURSEMENTS TO PROJECTS NEEDING FUNDING

UNDER us$500,000. In July 1994, the Bank was In partnership with its developing coun-given authority to approve projects of less than try clients, the Bank develops a set ofUS$500,000 on a pilot basis for an interim . . .period of six months. Under the proposal, theBank would seek clearance for subprojects within the established Country Programfrom the Fund Secretariat on consistency and framework. These subprojects are pack-precedents issues, and the Secretariat would aged into a project and submitted to theconfirm that the subprojects raised no newpolicy issues. Once cleared by the Secretariat, Executive Committee for funding ap-the EC would have a "no objection" review proval. After EC approval and agree-opportunity. Following that, the Bank could ment on project implementation mecha-approve the project. nisms between the Bank and the client

The Bank is currently working with Indiato prepare project proposals which meet thesecriteria. A number of proposals have already UnderUmbrellaGrantAgreements,been developed. The Bank plans to obtain the Bank and the country client agree toclearance from the Secretariat for the first afunding amouwttocoverallODS phase-group of projects in December 1994. . .

The Bank intends to further streamlinethis approval process. One action under subprojects have not yet been identified.consideration is to delegate authority for small This allows the Bank to sign only oneproject approval directly to client govern- Grant Agreement every two to threements, with an ex-post review authority heldby the Bank in accordance with Bank practice. years and channel subprojects under the

Agreement until the maximum amountWHAT WORKED WELL of funds has been reached. ObtainingThe Government of India's willingness to funds for the subprojects, however, isstreamline procedures and the excellent contingent on receiving EC approval.collaboration between industries, the financialintermediary, the government and the Bankhave been important ingredients in resolvingthese issues and creating the pilot. TheMinistry of Environment and Forests OzoneUnit, which is now fully operational, is instru-mental in identifying projects to be channeledthrough the Small Project initiative.

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18 . OCTOBER-DECEMBER 1994 Facing the Global

r7_V Y ~~~OZONE OPERATIONSThe OORG Report RESOURCE GROUP

| j = Aerosols alternative, indicate that there areProblems currently facing the aerosol widespread problems with propellant

All OORG sectors sector are a lack of information on the quality and availability in developingAUwOOr G reviewe t sector itself, the widespread notion countries. In addition, the lag in safetywere reviewed at that aerosol issues will resolve training behind adoption of hydrocar-the SixthMeeting of themselves if "just left alone," and bon propellants in some countriesthe OORG in the common idea that aerosol could result in serious plant safety

October 27: conversions are always profitable for problems.the enterprise concerned. CFC usecontinues in several unnecessary Foamsapplications such as pharmaceutical Issues in the foam sector include theaerosols and cleaners for electronic flammability, purity and VOCs ofequipment. Conversions in the hydrocarbons, the transitional natureelectronics area may prove especially and related implications of HCFCcostly. alternatives, the cost and insulation

Several CFC aerosol substitutes value of HFC-134a, and performanceare now on the market. CO2 is and processing issues related to CO2.increasingly being used in develop- Hydrocarbon quality and supply issuesing countries because of its low for polyolefin and other foams haveconversion cost and lack of flamma- been referred to the OORG produc-bility risk. It is not a panacea, tion sector advisor for further study.however, since it does not work with The 1994 United Nations Envi-foams and produces a heavy, wet ronment Program (UNEP) Foamsspray. Initial findings about hydrocar- Technical Options Committee Reportbon propellants, another CFC lists current and long term options for

phaseout and covers related develop-ing country issues. UNEP has also

* * * A * * ' @ * @0' recently published a Foams Catalogue

The Bank established the OORG to obtain the most up-to- which provides detailed informationThe Bankrestablished the OORG to obtaI on options and contact information on

date technical advice on ozone-friendly technologies. The enterprises which have technology

OORG is a group of internationally recognized experts who available for transfer or are suppliers ofprovide technical guidance to task managers through compre- necessary machinery and chemicals.

hensive reviews of each ozone depleting substance (ODS) Refrigerationphase-out project. The OORG also consists of sector-specific The OORG Refrigeration Working

working groups mandated to provide recommendations on Group has recommended HFC-134a

the commercial availability and cost-effectiveness of emerg- and isobutane for implementation asing non-ODS technologies. Sectors relate to the following zero-ODS technologies in Montreal

ing on-OS tehnolgie.. Protocol projects in developingindustries currently using ozone depleting substances: countries.tUnortunaelywiltcountries. Unfortunately, while the

* aerosol propellants * solvents efficiency advantages of isobutane* foams * chemical production have been recognized, the present* refrigeration * fire extinguishants availability of related compressors is* mobile air conditioning (halons) restraining its adoption at a faster pace

in the near term.

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Environment Challenge OCTOBER-DECEMBER 1994 . 19

"Good housekeeping mea- repainted and re-labeled as CFC-12sures" provide a clear hierarchy of canisters. Contaminated refriger-cost-effectiveness rankings for the ants and flammable hydrocarbonsub-sector. Tightened maintenance refrigerants are also entering theand repair procedures, refrigerant market.containment and recovery yield the An OORG Mobile Air Condi-highest overall return, followed by tioning Working Group meeting isreplacement of aging chillers with scheduled for January 1995 toHFC-134a, HCFC-22, HCFC-123, address project-related issues inor ammonia, and chiller retrofits developing country markets.with HCFC-123 or HFC-134a.

Solvents Argentina, Brazil, China, India, To expedite OORG reviews,Change has been slow in the Agnia rzl hn,IdaMexico, South Korea, and Venezu- the Bank's Global Environ-precision and metal cleaning sub- ela currently produce CFCs. The ment Coordination Divisionsectors. Slow change in the metal total present capacity of all Article 5 (ENVGC) will recruit ancleaning sub-sector is largely countries is estimated to be morebecause 1,1,1 TCA is still widely than 135 kilotonnes. engineering firm to prepareavailable and relatively cheap while Hydrocarbon supplies for a set of specifications, pricesother chlorinated solvents (usually refrigeration, foams and aerosol and scaling factors forTRI) are also low cost, familiar and applications are available on a global common ODS conversioneffective. In larger scale produc- scale but not necessarily in appro-tion, however, alternative aqueous priate qualities or locations. While projects for one to threeand semi-aqueous cleaning methods HCFCs and HFCs have received different sectors.are now widely used. extensive toxicological tests and The Bank, in consulta-

environmental reviews, there is tion with the OORG, willHalons little data available for hydrocar-Halon alternatives are being bons. Issues of hydrocarbon supply, commission work on aintroduced rapidly in most applica- availability, quality, cost and price chiller rebate financingtions, although some residual Halon will be addressed in a forthcoming program to clarify the1301 uses remain difficult to special study. related cost-effectivenessreplace. Halon banks are being Global CFC prices remain low,established and function well with except where taxed. HCFC-22 boundaries, as well as thestrong recycling markets. Despite prices are also low, reflecting chiller size and geographicthis success, halon production, reduced demand, and HFC prices distribution, project designmostly of H-1211 and H-2402, show signs of stabilizing as the and verification procedurescontinues in Russia and in Article 5 deadline for total CFC phaseoutcountries (MP signatories eligible approaches in developed countries. and present a pilot projectfor Multilateral Fund financing), As agreed in the OORG meeting, design for OORG review.mainly China and India. the OORG Production Sector First

The most cost-effective Peer will lead the planning effort onalternative for portable extinguish- hydrocarbon availability and supply.ers continues to be replacement first The OORG Production Sectorwith ABC powder and second with Advisor will convene a specialCO2 . planning meeting in November to

address the hydrocarbon supplyMobile Air Conditioning issues facing users in the foam,Illegal CFC imports have been refrigeration, and aerosols sectors.uncovered entering the U.S. ports A draft report will be prepared formarked as recycled material. Some presentation at the Seventh OORGHCFC-22 canisters have been Meeting in April 1995.

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20 * OCTOBER-DECEMBER 1994 Facing the Global

PORTFOLIO REVIEW * INTERNATIONAL WATERS

THE INTERNATIONAL WATERS INVESTMENT PROJECT PORTFOLIO ADDRESSES POLLUTION OF INTERNATIONAL WATERS CAUSED BY OIL SPILLS, ACCUMULATION OF

WASTES IN OCEANS AND INTERNATIONAL RIVER SYSTEMS AND OTHER INTRUSIONS. THIS SECTION PRESENTS PROGRESS IN THE PORTFOLIO DURING THIS REPORTING

PERIOD.

COLLABORATION WITH UNEP'S REGIONAL SEAS PROGRAMTHE BANK'S RECENT DISCUSSIONS WITH degradation by comprehensively manag-UNEP'S REGIONAL SEAS PROGRAM REPRESEN- ing regional marine and coastal areas.TATIVES REVEAL THE MUTUAL BENEFITS TO The program is built on thirteen regionalBE GAINED FROM INCREASING COLLABORA- conventions and action plans, with moreTION ON INTERNATIONAL WATERS INITIA- than 140 coastal states and territoriesTIVES. participating. Each region formulates an

GEF international waters projects action plan according to its needs astypically involve support to regional perceived by the governments concerned.groupings of countries for managing their The discussions with UNEP madeshared waterbeds. Building effective, clear that GEF can help facilitate thecollaborative relationships with other Regional Seas Program's process byinternational donors and institutions is an catalyzing resources to address thoseimportant part of this effort. The UNEP priorities in the Program which deriveRegional Seas Program offers the Bank global benefits. Equally important, theone opportunity to engage in a successful individual Regional Seas Action Plans cancollaboration. help identify and address country-driven

The Regional Seas Program is an priorities for regional management ofaction-oriented program established globally significant water resources.twenty years ago to combat marine

SWEDEN CONTRIBUTES TO MONITORING & EVALUATION GUIDELINESTHE GOVERNMENT OF SWEDEN IS PLAYING A The advisory committee offeredSIGNIFICANT ROLE IN THE BANK'S DEVELOP- clear guidance on refining the guidelinesMENT OF MONITORING AND EVALUATION format, and suggested adopting an(M&E) GUIDELINES FOR GEF INTERNA- integrated approach based on process,TIONAL WATERS PROJECTS. stressor and environmental status

In late October, the Swedish Minis- indicators. M&E elements for differenttry of Foreign Affairs hosted the second types of projects will now be arrayedof three consultative meetings of an under each of the indicator chapters.international water resource advisory The guidelines are expected to becommittee. The Stockholm meeting was completed by March 1995.organized to review the evolving M&E The Swedish hosts also provided anguidelines and to provide an exchange of overview of the Nordic offer to help UNviews on GEF's practical experience with agencies conduct a global freshwaterM&E design. assessment.

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Environment Challenge OCTOBER-DECEMBER 1994 * 21

PORTFOLIO REVIEW * INTERNATIONAL WATERS

SMALL ISLAND DEVELOPING STATESAND THE GEFThe Bank, UNEP and UNDP have initiated discussionson GEF support for Small Island Developing States(SIDS). Following up on the action program identified bySIDS member countries at their recent Barbados confer-ence, the agencies are establishing a framework fordeveloping and implementing GEF projects to addresscoastal zone management, threats to marine biodiversity,marine resource overexploitation, and adapting to climatechange.

.- 7_

-- 441

K~~~~~~~~~~

Turtle and other marine shellsfor the tourfst trade, Zanzibar R. Paton

Attractive as they may be. turtle and other marine shells harvestedfor the touristtrade are unsustafnable - f not a violation of internattonal envuronmental conventions

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22 * OCTOBER-DECEMBER 1994 Facing the Global

GLOBAL FO RUM: CON C E PT S IN REV I EWTHIS SECUON EXPLORES CONCEPTS AT STAKE IN THE ENVIRONMENTAL ARENA, PRESENS A BREF DISCUSSION OF THE WORLD BANK POSMON, AND LOOKSAT HOW THE ISSUE IS PLAYED OUT IN THE BANK'S GLICAI ENVIRONMENTAL WORK.

Global Overlays for Climate ChangeI NTRODU CTION TO TH E CONC EPT & FI RST RESU LTS

A NEW CONCEPT CRITICAL IMPROVEMENTSENVGC HAS BEGUN APPLYING A NEW ANALYrICAL Global overlays provide at least three critical

* TOOL CALLED GLOBAL OVERLAY TO INTEGRATE improvements:GLOBAL ENVIRONMENTAL EXTERNALITIES INTO

* THE WORLD BANK'S ECONOMIC AND SECTOR Economies of Scale and Scope. Adding a globalWORK. CLIMATE CHANGE GLOBAL OVERLAYS ARE component to regular sector work offers theAPPLIED IN SECTORS SUCH AS ENERGY, TRANS- prospect of capturing analytical economies ofPORT, FORESTRY AND AGRICULTURE. SIMILAR TO scale and scope.A GRAPHIC OVERLAY, WHICH ATrACHES A NEW Scale economies arise from extensive dataLAYER TO AN ALREADY EXISTING SURFACE, THE collection in sector reviews. For example,GLOBAL OVERLAY CONCEPT ADDS A GLOBAL GHG emissions linked to energy use are fairlyDIMENSION TO THE SECTOR STUDIES THAT THE easy to calculate from the data collected for

: BANK UNDERTAKES ON A REGULAR BASIS FOR ITS regular energy sector studies.

* CLIENT COUNTRIES. Global overlays also capture economies of

scope. For example, they bring World BankGlobal overlays reflect a growing urgency to sector economists and operational staff inintegrate global concerns with national contact with GHG abatement studies under-

* development strategies. Climate change taken by developing countries as part of FCCCoverlays build on the Framework Conven- reporting requirements.tion on Climate Change (FCCC), whichasks its signatories to "take climate change Integration into Sector Work. Integratinginto account, to the extent feasible, in their global concerns into regular Bank sector workrelevant social, economic, and environmen- is bound to have a long-range impact ontal policies and actions" and on the World regular Bank work, as sector economistsBank operational policy guideline OP 10.04, become familiar with available mitigationwhich notes that global externalities are options and unexploited "win-win" opportuni-"normally identified in the Bank's sector ties offering considerable domestic benefitswork or in its environmental assessment while reducing GHG emissions.process".

Identifying GEF Projects. Global overlays area,lso an important screening tool for identifyingcost-effective GEF investment projects. The

A climate change overlay consists of two parts: overlays' sectoral focus allows more in-depth

* it uses an existing sector development strategy analysis of mitigation options than country-forsectorswithsignificantgreenhousegas(GHG) level studies, and a closer identification of cost-emissions, and calculates the associated emis- effective investment opportunities for GHGsions reduction. Client country participants in sector

. ~~~work also show their awareness of these* it outlines cost-effective GHG mitigation op- oortunis, main the. GeF ojecttions available to the country if it seeks to limit its selection,pocesna tr e as possblGHG emissions in a sector selecton process as transparent as possible

from a host country perspective.

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Environment Challenge OCTOBER-DECEMBER 1994 * 23

GLOB AL FORUM: CON C E PT S IN REV I EW

Global Overlays for Climate ChangeI N T R O D U C T I O N T O T H E C O N C E P T & F I R S T R E S U L T S

FIRST RESULTS FROM UKRAINE

A prototype of a global overlay for the energy sector in Ukraine was recentlycompleted by the engineering firm RCG Hagler/Bailly, built on the findingsof a World Bank Energy Sector Review and other pre-feasibility studies.

The study's baseline analysis shows that Ukrainian energy consumptionand CO2 emissions will decline or remain stable in the coming decade as aconsequence of the country's restructuring to a market economy. After theyear 2000, Ukrainian energy consumption will resume its traditional growthpath. The structure of energy use, which is heavily reliant on natural gas, willnot change much, even though some increases in coal use are expected.

The study identified five mitigation options in the Ukrainian energysector:

* coalbed methane recovery* district heating system rehabilitation and upgrade* introduction of residential gas metering* energy efficiency in the steel industry* wind energy

The analysis shows that the last three options may have negativeincremental costs, because they appear to be economic from a domesticperspective and could be financed through regular development loans. Bycontrast, coal-bed methane recovery and the district heating system up-grade are not cost-effective from a domestic perspective alone and arecurrently being studied as potential GEF projects.

The study emphasized the importance of the energy pricing policyenvironment for the viability of the gas metering and the district heatingprojects, which only recently have been raised closer to market levels.

NEXT STEPSThe first applications of this concept will be in the energy sector and itssubsectors (electricity, oil, gas, households) and the forestry sector, bothof which are amenable to global overlay analysis. A forestry sector studyis being prepared for Argentina, with a focus on the carbon sequestrationpotential of different forest management and afforestation options.

A global overlay concept for protecting biodiversity is also being developed andwill be reported on in the next issue.

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24 * OCTOBER-DECEMBER 1994 Facing the Global

Biodiversity AT THE WORLD BANK

DURING THE PAST FIVE YEARS, THE WORLD BANK HAS SIGNIFICANTLY INCREASED ITS POLICY AND SECTOR WORK

RELATED TO BIODIVERSITY CONSERVATION. THIS SECTION SUMMARIZES IMPLEMENTING THE CONVENTION ON

BIOLOGICAL DIVERSITY.: TOWARD A STRATEGY FOR WORLD BANK ASSISTANCE, A PAPER JOINTLY PREPARED BY THE

ENVIRONMENT DEPARTMENT'S GLOBAL ENVIRONMENT COORDINATION DIVISION (ENVGC) AND LAND, WATER AND

NATURAL HABITATS DIVISION (ENVLW). THIS PAPER WAS PRESENTED AT A WORLD BANK WORKSHOP IN THE

BAHAMAS DURING THE FIRST CONFERENCE OF THE PARTIES OF THE CONVENTION OF BIOLOGICAL DIVERSITY.

The Biodiversity Convention and Sustainable DevelopmentTHERE IS GROWING CONSENSUS THAT CONSERVING AND MANAGING BIOLOGICAL

DIVERSI'I'Y IS FUNDAMENTAL ITO SUSI1AINABLE DEVELOPMENT. SPECIES EXTINC-

TION AND ECOSYSTEMI LOSS COMPROMISE OPTIONS FOR PRESENT AND FUTURE

GENERATIONS.

Biological resources support human livelihoods and make it possiblefor humans to adapt to change. Sustainable development cannot berealized without an effective strategy for conserving and managingbiodiversity. Biodiversity conservation is crucial to sustaining sectors asdiverse as forestry, agriculture, fisheries, health care, industry and tourism.

The Convention on Biological Diversity (CBD), to date ratified by 107countries, recognizes the links between biodiversity conservation andsustainable development. The Convention's overall objectives includeconservation of biological diversity, sustainable use of its components andfair and equitable sharing of the benefits arising from its use, includinggenetic resources.

THE WORLD BANK'S ROLETwo features of the Convention are

-> . rr t particularly important to the Bank:

FS)~J~ - &- - $ - - o0 that biodiversity conservation is_ - -- -- ^ * - 'r , w1 ' not just an ecological concern but

is also intrinsic to socioeconomic___ * ;development, often providing the

> = f f i > -_ ~ -single most important contribution to people's livelihoods andwelfare

0 that successful biodiversityconservation depends on soundpolicies (pricing, taxation, landtenure) and effective institutionaland social arrangements (laws andregulations, and well-definedstate, private sector, local andindigenous community roles)

Amphibiars tike this treefrog can be good indicators of changing J. Post

en,Izlmnnlental conditions such as global warming.

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Environment Challenge OCTOBER-DECEMBER 1994 * 25

Biodiversity AT THE WORLD BANK

THE MAIN ELEMENTS OF BANK SUPPORTThe Bank accepts its responsibility to help its developing country partners mainstream biodiversity concerns intotheir development programs. In practice, mainstreaming means that the Bank will support not only traditionalconservation iniatives such as strengthening protected areas but will also inject biodiversity issues into planningdevelopment for landscapes under economic production, from agricultural ecosystems to urban and industrial areasand their hinterlands, including infrastructure development. The Bank addresses these concerns by working withgovernments through:

X Policy DialogueAt the country level, the Bank engages in dialogue with developing countries to helpthem establish a policy framework for sustainable development, which takes conser-vation and sustainable use of biodiversity into account. The Bank also helps countriesmainstream biodiversity through environmental sector work, national environmentaction plans (NEAPs), country assistance strategies and by recognizing and buildingsynergies between biodiversity and development objectives like poverty alleviation

n Investment Priorities & Action PlansThe World Bank helps countries establish investment priorities through developmentof regional and national strategies for biodiversity conservation.

X Financial AssistanceBank investments provide support for conservation and sustainable use through:0 the general investment portfolio for sustainable development0 project components addressing biodiversity in the context of larger projects0 stand-alone biodiversity projects, including many GEF projectso capacity building: strengthening existing national institutions or helping create

new management bodies. Focus is on building inter-sectoral linkages, strengthen-ing environmental ministries, government agencies, NGOs and the private sectorto build national capacity, and training in environmental assessment, biodiversityconservation, coastal zone management, Geographic Information Systems andnational planning. Over 90% of Bank GEF projects have such components.

n Information to Manage BiodiversityGovernments, local communities, conservation organizations and developmentagencies need information to manage biodiversity more effectively. Mobilizinginformation is critical for any conversation activity. The Bank is supporting efforts to:

0 establish local and national information management systems0 help develop methodologies like RAP (Biodiversity Rapid Assessment)0 plan conservation measures0 assist in the formulation of management policies0 strengthen institutions0 implement training programs

=> Improved Policy and ProceduresThe Bank has an ongoing dialogue with its developing country counterparts, NGOs,and technical-specialists and is refining its set of environmental policies and bestpractice notes and guidelines to minimize the environmental damage of its assistanceand maximize biodiversity conservation benefits.

continuedU7

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26 * OCTOBER-DECEMBER 1994 Facing the Global

Biodiversity AT THE WORLD BANK

MAINSTREAMING BIODIVERSITY KEY FACTORS IN PROJECTDESIGN & IMPLEMENTATION

ZIMBABWE. Under the proposed Bank and GEF Wildlife Man- ALTHOUGH PROJECT SITES ARE CHOSEN

agement and Environmental Conservation Project, support FOR THEIR BIODIVERSITY VALUES,will be provided to local communities to enable them to realize EXPERIENCE HAS SHOWN THAT MAINTAIN-

greater economic value from wildlife use. If successful, the ING BIODIVERSITY IN THE LONG-TERM

project would mainstream wildlife conservation and sustain- DEPENDS ON A HOST OF OTHER SOCIAL,able use with more traditional agricultural practices. POLITICAL AND ECONOMIC FACTORS.

These factors need to be taken intoGHANA. Urbanization and related infrastructure development account in project design and imple-in Greater Accra and other coastal towns threaten the ecologi- mentation. Experience shows thatcal health of coastal wetlands that provide both livelihoods and among the most important for sus-a refuge for migratory birds. Bank and GEF assistance is being tained success are the need to:provided to redesign sewage treatment and effluent disposal, * ENGAGE AND EMPOWER LOCAL

reduce user pressure on lagoons, and support community COMMUNITIES, indigenousinitiatives for sustainable use of lagoon biological resources. peoples, NGOs and other

stakeholders as partners in

GRENADA. A landfil site was proposed for an area containing designing and implementingone of two remaining small populations of the endangered projectsGrenada Dove. Bank and GEF assistance is being used to * PROVIDE FOR FINANCIALbuild conservation objectives into urban land-use planning by SUSTAINABILITY, including aensuring assistance for Dove conservation and for redesigning stable supply of recurrent costand relocating the landfill in an environmentally sound man- financingner. * MONITOR AND EVALUATE

arrangements in projects and

TURKEY. As the center of origin for many of the world's grain adopt an action-learningand pulse crops, fruits and woody species, Turkey holds the approach with the flexibility tokey to their genetic resilience. Mainstreaming biodiversity in adapt project activities to takeTurkish agricultural development means creating crop gene account of lessons learnedmanagement and forest gene resource zones to conserve crop during implementationpopulations in their natural habitat while enabling traditional Explicit recognition of these issues is aand expanded use under grazing and harvesting regimes. measure of improved economic,

BRAZIL. Recent research demonstrates that the greatest threat in Bank assistance.to the remaining Atlantic Forest of Southern Bahia is clearingby large landowners catalyzed by falling cocoa prices. Thesefarmers hold the greatest potential for forest conservation.Tracking the impact of world prices on commodities can giveforewarning of unanticipated biodiversity impacts and ilumi-nate policy options for changing incentives to modify adverseecological outcomes. In this case, the researchers suggestedchanges in land reform policy to settle on deforested land, andtax waivers or subsidies for forest conservation in privatereserves for larger landholders as offsetting incentives.

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Environment Challenge OCTOBER-DECEMBER 1994 * 27

G L O B A L E N V I R.O N M E N T F A C I L I T Y

B I O D I V E R S I T Y I N V E S T M E N T P O R T F O L I O

-trategic plans,tools and

Protected Sustainable financingareas use instruments

Projects 1 2 3 4 5 6 7 8 9

Algeria El Kala National Park and Wetlands Management * . .

Belarus Biodiversity Protection . - . .

1. Expand the Bhutan Trust Fund for Environmental Conservation . .

Network Bolivia Biodiversity Conservation

2. Strengthen *...ii,,. 2 Brazil Biodiversity ConservationExisting

Protected Areas/ Burkina Faso and C6te d'lvoire Community-Based

Institutions . Natural Resource and Wildlife Management

3. Provide Support Cameroon Biodiversity Conservation and Management

to Transfrontier Congo Wildlands Protection and Management

Parks and . Czech Republic Biodiversity Protection

Ecosystems : - ------Ecuador Biodiversity Protection

4. Integrate

Management Egypt Red Sea Coastal and Marine Resource Management

Plans and Ghana Coastal Wetlands Management

Alternative . Indonesia Biodiversity Collections

LivelihoodsKenya Conservation of the Tana River *. * .

5. Ex-Situ . National Primate ReserveConservation

Lao PDR Wildlife and Protected Areas Conservation6. Research

Malawi SADC Lake Malawi/Nyasa Biodiversity Conservation . . . .7. Participatory

Approaches Mexico Protected Areas Program . . * .

Including Mozambique Transfrontier ConservationStrategic Plans Areas and Institutional Strengthening

8. Mobilize the Peru Trust Fund for Parks and Protected Areas

Private Sector Philippines Conservation of Priority Protected Areas . .

9. Innovative Poland Forest Biodiversity Protection

Financing..Mechanisms . Romania Danube Delta Biodiversity . * . 0 .

Russia Biodiversity Conservation Programme

Seychelles Biodiversity Conservation I . .and Marine Pollution Abatement

Slovak Republic Biodiversity Protection . . . * *

Turkey In-Situ Conservation of Genetic Biodiversity

Uganda Conservation of the Bwindi Impenetrable . ,and the Mgahinga Gorilla National Parks

Ukraine Danube Delta Biodiversity

Ukraine Transcarpathian Biodiversity Protection

Biodiversity Conservation in Southeast Zimbabwe

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28 * OCTOBER-DECEMBER 1994 Facing the Global

W O R L D B A N K

B I O D I V E R S I T Y I N V E S T M E N T P O R T F O L I O

.0 !! .S L 3]i I;!3

Protected Sustainable Envirareas use & tools educ

Projects 1 2 3 4 5 6 7

Argentina Hydro Electric Project

Bangladesh Forest Resources Management (111)1. Protected Area Belarus Forestry Biodiversity

Establishment

2. Protected Area Benin Natural Resource Management ProjectManagement Bolivia Eastern Lowlands Natural Resources Mgt Project

3. Institutional Brazil Mato Grosso Natural Resource Management

Strengthening Brazil Parana Land Management

4. Policy Analysis! Brazil Rondonia Natural Resources ManagementReform

Central Africa Republic Natural Resource Mgt Project5. Environmental

Monitoring, China Tarim Basin IrrigationAnalysis, Colombia Natural Resources ManagementPlanning Cote d"lvoire Forestry Sector Project

6. Conservation Ecuador Lower Guayas Flood Control ProjectOutside Re-serves Gabon Forestry/Environmental Protection

7. Environmental Ghana Environment Project

Education Guinea Forestry and Fishery Management Project

Haiti Forestry & Environment Protection (on hold)

India AP Forestry

India Bihar Forestry

India Forest Research Educ & Extens of Biodi Conserv

India Maharashtra State Forestry

India MP Forestry , __i_=

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Environment Challenge OCTOBER-DEcEMBER 1994 * 29

W O R L D B A N KB I O D I V E R S I T Y I N V E S T M E N T P O R T F O L I O

Protected Sustainable Envir.areas use &f tools edu cat.

Projects 1 2 3 4 5 6 7

India West Bengal Forestryr -Indonesia First Forestry Institutions & Conservation .. Protected Area

Indonesia Integrated Swamps Development . Establishment

Indonesia Second Forestry Institutions & Conservation 2. Protected Area

Kenya Wildlife Services Project Management3. Institutional

Lesotho Land Management & Conservation Project .trngheini i i i ~~~~Strengthening

Madagascar Environmental Project 4. Policy Analysis!

Madagascar Forest Management Project Reform

Malaysia Sabah Land Settlement & Environ Mgt *5. Environmental

Mali-PGRN Natural Resource Management Project Monitoring,Analysis,

Mexico Decentralization & Regional Development I.__ __ __ ___ __ __ __ ___ __ __ .- . _ -Planning

Mexico Northern Border Environmental Project 6. Conservation

Morocco Rural Poverty Reduction & Environment Education Outside Re-

Nigeria Environmental Management Project serves

Pakistan Balochistan Natural Resources Management 7. EnvironmentalEducation

Pakistan Environmental Protection & Resource Conservation

Paraguay Natural Resources Management

Poland Forestry Development

Sri Lanka Environment Action I Project

Sri Lanka Forest Sector Development

Tanzania Forest Resources Project

Tunisia Second Forestry Development Project

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30 0 OCTOBER-DECEMBER 1994 Facing the Global

PAR TICIPA TION AND SOCIAL A SSESSMENTI N W O R L D B A N K O P E R A T I O N S W O R K

INCORPORATING THE SOCIAL DIMENSION IS BECOMING A SIGNIFICANT FOCUS FOR THE BANK'S WORLDWIDE PROJECT PORTFOLIO.

THE ENVIRONMENT PEPARTMENT'S SOCIAL POLICY AND RESETTLEMENT DIVISION (ENVSP) HAS TAKEN ON THE CHALLENGE OF

DEVELOPING GUIDELIENS AND POLICY TO MEET URGENT SOCIAL NEEDS IN THE CONTEXT OF ENVIRONMENTAL PRESERVATION.

THIS SECTION PROVIDES A FORUM FOR EXPLAINING BANK POLICIES RELATED TO SOCIAL ASSESSMENT AND PARTICIPATION IN GEF/

BANK AND OTHER BANK PROJECTS. IN THIS ISSUE, THE BANK'S POLICY ON RESETTLEMENT IS EXAMINED IN RELATION TO

CONSERVATION PROJECTS.

ADDRESSING CONSERVATION objectives by implementing

& LIVELIHOOD NEEDS development initiatives thatP EO0 P LE, THE WORLD BANK REPORT People and provide alternative livelihood

E N V I R 0 N M E N T Parks: Linking Protected Area Manage- opportunities to local communitiesment with Local Communities (Wells, and reduce the pressure on the

A N D Brandon and Hannah, 1992) pro- protected area.

R E S E T T L E M E N T poses adopting Integrated Conserva- In addition to ICDPs, othertion and Development Projects conservation optionscan be used to(ICDPs) as a way to reconcile reduce human pressure on pro-potential conflicts between the need tected areas. As shown in the box onto conserve natural resources inside page 31, three such options areprotected areas and the social and zoning for multiple uses, adjustingeconomic needs of people living in protected area boundaries, andand around these areas. ICDPs are resettlement of resident groups.designed to support conservation The resettlement option is gener-

ally viewed as a last resort, to beapplied when other options for

_ * * biodiversity conservation are notviable.

In 1980, the World Bank issued Operational Directive (OD) 4.30, the WHY RESETTLEMENT IS THEBank's policy on involuntary resettlement, which states: '(a) involuntary LEAST DESIRABLE OPTIONdisplacement should be avoided or minimized whenever feasible; (b) THE BANKWIDE RESETTLEMENT

where displacement is unavoidable, the objective of Bank policy is to REVIEW notes two reasons whyassist displaced persons in their efforts to improve, or restore, forner development practitioners haveliving standards and earning capacity; (c) displaced persons should be sought to avoid resettlementcompensated for their losses, given opportunities to share in project whenever possible.benefits, and assisted in transfer and throughout the transition period; First, compulsory displacementand (d) resettlers and hosts are encouraged to participate in the often creates a breakdown ofresettlement planning process, and whenever possible, people moved established societies and cultures.in groups to cushion disruptions.' This year, the Bank released a Bank- Production, livelihood systems andwide review of projects involving involuntary resettlement (Resettlement kinship networks may be dis-

. . . . ~~~~~~~~~mantled along with long-establishedand Development, Environment Department). Findings from this rintial settlents.aInimanyreview and from OD 4.30 were also included in the best practice paper res,dental settlements. In manyissued by ENVGC and ENVSP (Incorporating Social Assessment and management systems are lost.

Participation into Biodiversity Conservation Projects). Some indigenous groups may lose

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Environment Challenge ocToBER-DECEmBER 1994 * 31

access to gravesites, shrines, and * . *' . *

natural symbolic markers thathelped define their cultural iden- SEVERAL BANK FINANCED BIODIVERSITYCONSERVATION PROJECrS PROVIDE SUPPOR'T

tity. TO PROTECTED AREAS Wl-IERE SIGNIFICANT NUMBERS OF PEOPLE RESIDE ADJACENT

Second, there is a risk that TO OR INSIDE CONSERVATION AREAS. SOME MANAGEMENT OPTIONS TO REDUCE

affected people may become HUMAN PRESSURES ON BIOLOGICAL RESOURCES ARE:

increasingly impoverished. To ZONING FOR MULTIPLE USES: protected area is rezoned to accommodateprevent this, the Bank requires existing land uses. In the GEF/Bank Czech Republic Biodiversityphreventy th, theBank reqes Project in the Sumava National Park, seven zones define multiple landthoroughly prepared resettlement uses. Extensive cultivation and collection of nontimber forest productsplans for ensuring adequate liveli- are acceptable in one zone, while human settlements are permitted inhood options, for opening up new another zone.lands for cultivation, and forbuilding new and better housing ADJUSTING P'ROTECTED AREA BOUNDARIES: protected area boundaries areand social amenities. modified to protect high biodiversity areas but exclude areas which are

The fundamental goal of the currently occupied and have little conservation value. In the GEF/BankBank's resettlement policy is to financed project in Ecuador's Podocarpus National Park, the govern-

ment and local villages signed a Cooperation Agreement over uses ofimprove, or at least restore, the lands surrounding commonly shared park boundaries.former living standards and earningcapacities of displaced persons. Its RESETFLEMENT OF RESIDENT GIROUPS: resettlement may sometimes beprovisions protect and enlarge necessary to protect high biodiversity areas and prevent habitat fragmenta-displaced people's entitlements and tion. When this option is unavoidable, project preparation includespr'omote a safety net approach to detailed resettlement plans to ensure that relocation does not result inrestore their livelihoods. The policy the impoverishment of affected people. In the GEF/Bank financed

Uganda Bwindi and Mgahinga Conservation Trust Project, substan-calls for transforming people's tial support is provided for detailed resettlement plans for the eightinvoluntary resettlement into an households residing in the park as well as compensation to the 100 plotopportunity for development and holders whose cultivated land was included in the park in 1991. Thefor enhancing their prior living Trust Fund also provides resources for small-scale initiatives developedstandards by enabling resettlers to by local communities and indigenous Batwa people living adjacent toshare in the benefits of the devel- but outside the protected area.opment project that causes theirdisplacement.

Currently, there are some . .___,biodiversity projects under prepara-tion for Bank and GE F/Bank _

financing that may need to consider -

relocating resident populations outof the core zones of conservationareas. Precisely because resettle--___ment is an option, preparation timeand costs (studies and consulta-tions) of these projects haveincreased to ensure that relocationplans are designed correctly. Someof these studies may in fact lead torejection of the resettlement option,especially if it can be demonstratedthat human impacts on biodiversityare not as threatening as originallyperceived. The aim in all Bankbiodiversity projects is to maximizebiodiversity protection but mini- omize the need for resettlement.

Resettlemenl housing: Nagarhote National Park- India C. Cruz

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32 * OCTOBER-DECEMBER 1994 Facing the Global

GEN E RAL IN FORMATION

THE WORLD BANK ENVIRONMENT DEPARTMENT'S GLOBAL ENVIRONMENTCOORDINATION DIVISION

(ENVGC) STAFF INCLUDE:

Division Chief Ken NewcombeGEF Regional Coordination:* Europe, Central Asia, Middle East, North Africa Jocelyne Albert:Africa, South Asia Robin Broadfield*Latin America & the Caribbean, East Asia Christine KimesGEF Thematic Coordination:*Biodiversity Specialist Kathy MacKinnoneClimate Change Specialist Charles Feinstein*International Waters Focal Point Richard PatonMontreal Protocol Coordination:-Principal Coordination Bilal Rahill-Latin America & the Caribbean Sergio OxmanoAsia Jessica PoppeleInformation Officer & Editor, Facing the

Global Environment Challenge Clare Fleming

Phone 202 473 1816Fox 202 522 3250

OTHER BANK GROUP UNITS INVOLVED IN SIGNIFICANT ASPECTS OF GLOBAL ENVIRONMENT

OPERATIONS ARE:

Private Sector:Environmental Division,International Finance Corporation (IFC) Martyn Riddle, ChiefWorld Bank Global EnvironmentLand, Water & Natural Habitats Division Colin Rees, Chief

World Bank Social Policy and the EnvironmentSocial Policy & Resettlement Division Gloria Davis, Chief

MORE INFORMATION ABOUT GEF AND ITS OTHER IMPLEMENTING AGENCIES CAN BE OBTAINED

FROM:

GEF Secretariat External Relations Nicholas Van PraagUNDP Information Mahenau AghaUNEP Information Rohit Khanna

GEF World Bank staff can be reached via e-mail on INTERNET by typingfirst initial.last [email protected]. For example, [email protected]

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Environment Challenge oCTOBER-DECEMBER 1994 * 33

Project Task Managers

Task Manager ILountr 11 Project PhoneAlderman, Claudia Peru Trust Fund for Parks & Protected Areas 473-6682

Asibey, Emmanuel Malawi SADC Lake Malawi/Nyasa Biodiversity Conserv. 473-4330

Beardmore, Richard Zimbabwe Biodiversity Conserv. in Southeast Zimbabwe 473-4153

Ben-Slimane, Fathi Algeria, Mor, Tun Oil Pollution Management for the SW Med. Sea 473-2439

Benmessaoud, Rachid Poland Coal-to-Gas Conversion 473-2696

Bouchitte, Alec Congo Congo Wildlands Protection & Management 473-4932

Bromhead, Marjory-Anne Romania Danube Delta Biodiversity 473-2270

Calderon, Gustavo Costa Rica Tejona Windpower 623-1978

Clement-Jones, Robert Mozambique Trans-Frontier Conserv. Areas & Inst. Strength. 473-4546

Creighton, Ken Cameroon Biodiversity Conservation & Management 473-4107

Dabbagh. Usamah OECS OECS Ship Waste Disposal 473-9400

Demayo, Adrian Mexico Protected Areas Program 473-6671

Epworth, Robert Ghana Coastal Wetlands Management (223-21)229681

Floor, Willem Cote d'Ivoire Crop Waste Power 473-3251

Mali Household Energy

Graham, Douglas I. Egypt Red Sea Coastal & Marine Resource Mgt. 473-5838

Gross, Daniel Brazil Biodiversity Conservation 473-0055

Hazelton, Philip Bolivia Biodiversity Conservation 473-4804

Kiss, Agi Kenya Conserv. of the Tana River Natl. Primate Res. (254-2)2284777

.______ _ Uganda Conserv. of the Bwindi Impen. & Mgahinga Parks

Kosmo, Mark Czech Republic Phaseout of Ozone Depleting Substances 473-2516

Larrieu, Jorge Morocco Repowering of Power Plant 473-0249

Lewis. Jeffrey Regional Community Based Natural Res. & Wildlife Util. (226)306237

Luca, Irina Romania Danube Delta Biodiversity (401)2101804

Lundin, Carl Seychelles Biodiv. Conserv & Marine Pollut. Abatement 473-3426

Luzuriage, Luis Mexico High Efficiency Lighting Pilot 473-8768

Manzo, Madgalena India Alternate Energy 458-1466

Megateli, Abderrahmane Jamaica Demand Side Management Demonstration 473-8631

Morsli, Hannachi China Sichuan Gas Transmission & Distribution Rehab 458-2873

Msellati, Laurent Algeria El Kala Natonal Park & Wetland Management 473-5651

Plaza, Cesar Ecuador Biodiversity Protection 473-8598

Savorelli. Lorenzo Tunisia Solar Water Heating 473-3558

Shen, Susan Bhutan Trust Fund for Environmental Conservation 458-2716

Lao PDR Wildlife & Protected Areas Conservation

Philippines Conservation of Priority Protected Areas

Sobrevila, Claudia Brazil Biodiversity Conservation 473-3934

Stephenson, Kathy Belarus Biodiversity Protection 473-2507

Ukraine Danube Delta Biodiversity

Ukraine Transcarpathian Biodiversity Protection

Tharakan, George Iran Teheran Transport Emissions Reduction 473-2597

Tsutsumi, Toshiro China Ship Waste Disposal 458-2955

van de Poll, Bemard Indonesia Blodiversity Collections 458-2549

Walker, Jane Pakistan Waste-to-Energy: Lahore Landflll Gas Recovery 473-2703

Wencelius, Francois Czech Republic Biodiversity Protection 473-1172

Poland Forest Biodiversity Protection

Younger, Dana Global Small & Medium Scale Private Sector Ent. Fund 473-4779

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PublicationsNameTitleOrganizationStreetCity, State, ZipCountry

Current documents published by the Global Environment Coordination Division (ENVGC) are:

(check (v/) those you would like to receive)

I PROJECT DOCUMENTS Tools, Guidelines and Best Practice

Coultrys IFProject 7lTiA* gria El la Nional Park _BioditersiAl.cl\lor Tun Oil Pollution NIgt Ss-.tem for SV Mlediterr _ Monitoring & Evaluation GuidelinesBelarus Biodi%ersit% Protection Incorporating Social Assessment & ParticipatJonBhutan Trust Fund lor Enmironment Conservation into Blodlversity Conservation ProjectsB,,Ii, ia Biodi%ersrN} Conser alion Project Issues & Optlions in the Design of GEF SupportedChina S,chuan Gas De elopment & ConsenahLon

___ China Ship l'caste Disposal ~Trust Funds for BloclNersity' ConseTvationChina Ship 1-a5te Dispos;1 __ Congo IWVildiands rProtection A Profile of the Pilot Phase Blodiversity Investment

Czech Rep Biodi erConser & Mlarine Pollut Abatement _ PortfolloCzech Rep Ozone Dep Sub tances Reduction _ Financing Innovation and InstrumentsEcuador Biodi ersirm Protection Climcate Cha,geE I Red Sea Coaslal & Nliarine Resource NlgtIir ____ -hana Coa~taI Wetrand~ ianag ent MNionitoring & Evaluation G uidelLnes

G Global oider Carib W mtlor ShlpaGenerated Waste Time-WeighUing Emission Reductions forIndia Alternate Ererg} Project Global Warming Projects

IIndonesia Bliodi%ersit Collections Local Environmental Benefits & Cost AllocationIran T hran TranFport EmissionsReductProject for GEF Global Warming ProJects

lamaca Dtemand Side 1\1anagement Risk & Uncertaintn: Selection Criteria for ProjectsLao PDR Wildite &- Protected Areas Management Offering Net Positie Domestc Benefits

Niauritiu; Sugar Energ) Biotechnolom Greenhouse Gas Assessment NlethodologyM_le [co High Efticienc; Lighting Pilot Project____Me\ico Protected Areas Program JA Data Mlanager for the Global Environment FacilityPhlippines Les le Luzon GeothermalPhilippines Cc.nseratrion ot Priorita Protected Areas Global Environment ChallengePoland Forest Biodi ersity Protection A BiGMonthly Progress Report on World Bank

__Romania3 Danube Delia B3iocli%rrsit~ otl rgesRpr nWrdBnR m3nl3 Danub* elia al *dlv esils ;Global Environment Operationsc',cwhelle- Biodi er Consen & Niarine Pollut Abatement - - lobal E bvironm n Oerios

Slo% ak Rep Biodi' ersiti Protection .n (free subscrption series)Thailand Iromotion c Electric Energ> Elficiency March-May 1994

= Turke% Genetic Blodw er-itj June-July 1994U Likraie D3nube Delra Biodiversity August-September 1994

= Lkraine Transcarpathian Biodiversity Protection October-December 1994

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Publications

Ozone Operations Resource Group MAIL TO:(OORG)Papers PUBLICATIONS

_]ITitle |IPublished: Global Environment CoordinationReducing ODS Use by Developing The World BankCountries in RefngeraLion: Report No. I Oct 1992 1818 H Street, NW, Room S-2145Reducing ODS Use in Foam-Blown Washington, DC 20433 USAPre-insulated Pipes: Report No. 2 Dec 1992ReduCLng ODS Use in DevelopingCountnes in Domestic Refrigerator/Freezer Insulating Foams: Report No. 3 Oct 1993Technical Considerations forAlternatives Production in Project Docu.mentsDeveloping Countries: Report No. 4 Oct 1993 7|| Document J| Pubi:The StatuS of Hydrocarbon and =Other Flammable Alternatves Use in Chil Dec 1993Domestic Refngerauon: Report No. 5 Oct 19993 _ Chile Mav 1993CFC- 12 to HCFC22 Plant Conversion China II May 1993

OORG Production Sector Case Studv: Ecuador Oct 1993Report No 6 Feb 1994 India Jul 1993Domestic Refrigeration Refrigerant Jordan Sep 1993Alternatives: Report No. 7 Mav 1994 _ oMan Sep 1993

Zero ODS Foam Pre-insulated Pipe Mayia Oct 1992Alternatives: Report No. 8 Mav 1994 Mexico Mar 1992Transitional & Zero ODS Domestic Nlexico Nov 1992

Refrigerator/Freezer Insulating Foam _ Thailand May 1992.lternatves: Report No. 9 May 1994 Thailand Aug 1994Chiller Refrigeration ODS Phase-out Philippines Dec 1991Alternatives: Report No. 10 Jul 1994 Venezuela Apr 1993

Occasional Papers

I/ Title 1PublishedOperational Interpretations of Incre-mental Costs & Eligible Expenditures Jun 1992World Bank/Montreal Protocol ProgramImplementation Strategy & Structure Sep 1993WVorld Bank 1993 Work Program Jan 1993XVorld Bank 1994 Work Program Nlar 1994World Bank 1993 Progress Report Oct-Jan 1994

World Bank 1994 Progress Report Feb-May 1994The Impact ol World Bank Operations asImplementing Agency of the MultilateralFund of Lhe Nlontreal Protocol Sep 1993

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Project Matrix:

GEF World Bank ProjectsMontreal Protocol Projects

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Work Program* Global Environment FacilityCountry/Project/Associated Bank Implementing Agency/ Executing

Projeci Project Description Task Manager/ Agency

Cameroon Participatory biodiversity conservation plans will be developed and World Bank Ministry of Environment

Biodiversity implemented for eight sites in the species-rich lowland forests of south- Creighton & ForestryConservation and east Cameroon and parts of the northern savannah ecosystem. TheManagement capacity of natural resource management institutions will be strengthened

through the finance of zoological and biological inventories and by theprovision of equipment, training and technical assistance and theNational Herbarium twinned with and supported by Kew BotanicalGardens and the National Herbarium of France.

Congo Development and implementation of management programs for five World Bank Ministry of Economy,

Wildlands Protection tropical forest ecosystems in the Congo, representative of the country's Bouchitte Finance and Planningand Management great ecological diversity and wealth. To achieve this objective, the

project is funding biodiversity inventories, the preparation of naturalresource management plans for each site, training supervisory staff andguards, and studies of the impact of the indigenous people on theenvironment and how any negative impacts can be mitigated.

Ghana Design and implementation of a Coastal Zone Management Plan to World Bank Ministry of Lands &

Coastal Wetlands protect five environmentally-sensitive and threatened coastal areas Epworth Natural Resources, DeptManagement registered under the Ramsar Convention on which migratory birds and of Game & Wildlife

other scarce species depend. The project includes: (a) monitoring ofEnvironmental Resource ecological conditions at the sites; (b) preparation of managementManagement Project programs and the training of site managers and wardens; and (c)

relocation of a sewage plant outlet that would have discharged intoSakumo Lagoon.

Kenya Development and implementation of a management plan for the Tana World Bank Kenya Wildlife Service

Conservation of the River National Primate Reserve, Kenya's smallest national reserve that KissTana River National contains the last remaining contiguous area of indigenous riverine forestPrimate Reserve along the Tana River. The Tana Reserve is rich in the biodiversity of this

rare ecosystem, including two endangered primate species, the RedColobus and Crested Mangaby monkeys.

Malawi Lake Malawi, Africa's third largest lake, is a uniquely rich aquatic World Bank Malawi Fisheries

SADC Lake environment, home to over 500 endemic species of fish, of which all but Asibey Department, SouthernMalawilNyasa six occur naturally nowhere else. The project will strengthen an existing Africa DevelopmentBiodiversity water quality monitoring and fish species survey and research program, Community FisheriesConservation prepare a biodiversity map and management plan for the lake, Unit

recommend revisions to national environmental legislation, and fundenvironmental training and education activines.

* Pilot Phase Work Program projects have received the endorsement of their representative govemment(s), the GEFs Scientific and Technical Advisory Panel,World Bank management and the GEF Participants. GEF I Work Program projects have received endorsement from their representative govemment(s), WorldBank management and the GEF Council.

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Investment Operations

Associated Bank Mgmt GET Grant Total Cost Proj. DevelopmentParticipation Phase Approval** (US$ mil)*** (US$ mil)**** Status

wcs Pilot 01/95 6.0 12.4 Project negotiated 11/94.

WWF-US

Birdlife Intemational

COPAD

PVO-NRMS

RONGEC

wCs Pilot 12192 10.0 13.8 Granteffective 10/93.

IUCN Political instability hashampered start-up. Sitemanagement plans now inpreparation

Royal Soc. for Protec. of Birds Pilot 08/92 7.2 8.9 Grant effective 3/93.

Wildlife Clubs of Ghana Ramsar sites surveyed &

Baseline resource surveysunderway

CARE-Kenya Pilot 03/95 6.2 6.2 Discussions with local

YWCA communities onYWCA participation aspects to beIUCN completed prior to appraisal,

National Museums of Kenya scheduled for 3/95

East African Wildlife Society

Malawi Wildlife Society Pilot 01/95 5.0 5.0 Negotiated 9/94.

WWF

ODA

** Date of World Bank management approval (future dates reflect best estimates). Bolded dates indicate projects approved during current reporting period.*** For projects not yet approved, amounts reported are only estimates and are subject to change.**** The difference between GEF grant amount and total project cost is financed by multilateral, bilateral, NGO and local public and private sources.

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Work Program* Global Environment Facility

Country/Project/Associated Bank Implementing Agency/ Executing

Project Project Description Task Manager/ Agency

Mozambique This project will prepare and implement management plans for several World Bank National Directorate for

Transfrontier wildlife-rich border areas that are contiguous with national parks in Clement-lones/De Vletter Forestry & Wildlife;Conservation Areas and neighboring Zimbabwe and South Africa. A major objective of the Ministry of AgricultureInstitutional project is to create migration corridors for big game populations thatStrengthening cross the borders in search of food and water and to inter-breed. By

facilitating this process, it will increase survival and strengthen the genepool.

Regional (Burkina Faso, Community-based wildlands and wildlife rehabilitation, utilization and World Bank Local communityCote d'lvoire) conservation programs based on the "gestion de terroirs" approach will be Lewis wildlife management

Commnunity-Based developed and implemented at three sites totalling 4,800 square kms in groupsNatural Resource and the Comoe ecosystem in southwestem Burkina Faso and northem CoteWildlife Management d'lvoire, recognized as one of the most important remaining natural

savannah ecosystems in the region. The project comprises: (a) land useplanning; (b) community land management; (c) capacity building andtraining; (d) habitat improvement and animal herd reconstructon; and (e)sustainable subsistence and commercial utilization of wildlife.

Seychelles Biodiversity conservation component comprises: (a) the restoration and World Bank Ministry of

Biodiversity preservation of the ecosystem of Aldabra Island by strengthening Bostrom/Lundin Environment, EconomicConservation & Marine conservation management and scientific research and control of feral Planning and ExtemalPollution Abatement goats; and (b) a protection program for the Green and Hawkbill Turtles. Relations

Marine pollution component covers the analysis of the steps needed toEnvironment and comply with MARPOL standards for ship waste treatment and actionsTransport Project required to control pollution from commercial shiping, fishing and leisure

craft.

Uganda The project will establish a trust fund, the income from which will World Bank Ministry of Tourism,

Conservation of the provide a sustainable source of funds for the management of the Bwindi Kiss Wildlife & AntiquitiesBwindi Impenetrable Impenetrable Forest and Mgahinga Gorilla National Parks and theNational Park & the conservation of their biodiversity. A Trust Management Board,Mgahinga Gorilla representative of local communities, NGOs and the govenmment willNational Park allocate the fund's net income to selected park management, research and

community development projects.

* Pilot Phase Work Program projects have received the endorsement of their representative government(s), the GEFs Scientific and Technical Advisory Panel,World Bank management and the GEF Participants. GEF I Work Program projects have received endorsement from their representative govemment(s), WorldBank management and the GEF Council.

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Investment Operations

Associated Bank Mgmt GET Grant Total Cost Proj. DevelopmentParticipation Phase Approval** (US$ mil)*** (US$ mil)**** Status

Southem Africa Nature Fdn. Pilot 09/95 5.0 7.5 Pre-appraisal planned for

WWF

IUCN Pilot 02/95 7.0 11.7 Negotiations planned forLocal NGOs 1/95.

Seychelles Island Foundation Pilot 11/92 1.8 2.0 Grant effective 3/93.Implementation of allcomponents proceedingsatisfactorily.

WWF Pilot 01/95 4.0 4.8 Negotiations complete.A.FW Grant approval imminent.Wildlife Clubs of Uganda

CARE-UgandaInst. of Trop. Forest Cons.

** Date of World Bank management approval (future dates reflect best estimates). Bolded dates indicate projects approved during current reporting period.*** For projects not yet approved, amounts reponed are only estimates and are subject to change.**e* The difference between GEF grant amount and total project cost is financed by multilateral, bilateral, NGO and local public and private sources.

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Work Program* Global Environment Facility

Country/ProjecttAssociated Bank Implementing Agency/ Executing

Project Project Description Task Manager/ Agency

Zimbabwe In collaboration with the local communities, the project comprises the World Bank Dept of National Parks &

Biodiversity design and implementation of a natural resource management program Beardmore Wildlife Mgmt, MinistryConservation in for an area adjoining Mozambique and South Africa, thus complementing of Env. and TourismSoutheast Zimbabwe the Mozambique Transborder Areas project. It will rehabilitate the

infrastructure of the Gonarezhu National Park to stimulate eco-tourism,Wildlife Mgnt. & Env. develop community wildlife management and sustainable use programsCons. Project and strengthen park management capacity.

Mali The project addresses both the demand for and supply of household World Bank Min. of Mines,

Household Energy energy in a country where people depend heavily on environmentally- Floor Hydraulics & Energy anddamaging woodfuels. Consumption of these fuels will be reduced by Min of Agriculture,promoting the use of more efficient stoves and by the substitution of Animal Husbandry &

Second Power Project kerosene and bottled gas through technical assistance and credit to Environmentmanufacturers and marketers. In parallel, forest planning andmanagement will be strengthened through training and technicalassistance.

Mauritius Development and testing of technologies for gathering, storing and using World Bank Central ElectricitySugar Bio-Energy sugar cane tops, leaves and residues as fuel to expand power generation Trapman Board, Mauridus SugarTechnology by existing sugar mills. Assessing opdons for reducing the cost of Authority; Union St.

bagasse transport and thereby also expanding its use as a generating fuel. Aubin Sugar FactorySugar Energy Providing technical assistance to a Bagasse Energy DevelopmentDevelopment Project Program coordinated by the Mauritius Sugar Authority which will

develop a program to fully tap the long-term potential of powergeneration from sugar cane waste.

Pilot Phase Work Program projects have received the endorsement of their representative government(s), the GEPs Scientific and Technical Advisory Panel,World Bank management and the GEF Participants. GEF I Work Program projects have received endorsement from their representative govemnment(s), WorldBank management and the GEF Council.

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Investment Operations

Associated Bank Mgmt GET Grant Total Cost Proj. DevelopmentParticipation Phase Approval** (US$ mil)*** (US$ mil)**** Status

WWF Pilot 06/95 4.8 55.0 Detaled preparationLimpopo-Save Dev. Corn. underway. Appraisal will

follow restructuring of Dept.

of National Parks & WildlifeMgmt.

Pilot 06/95 2.5 11.5 Negotiations expected early1995.

Mauritius Sugar Prod. Assoc. Pilot 02/92 3.3 55.1 Grant effective 12/93.

Mauritius Chamber of Agr Implementation of allMauritius Chamber of Agr. components underway.

** Date of World Bank management approval (future dates reflect best estimates). Bolded dates indicate projects approved during current reporting period.** For projects not yet approved, amounts reported are only estimates and are subject to change.*** The difference between GEF grant amount and total pmject cost is financed by multilateral, bilateral, NGO and local public and private sources.

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Work Program* Global Environment Facility

Country/Project/Associated Bank Implementing Agency/ Executing

Project Project Description Task Manager/ Agency

Indonesia Project strengthens the capacity of the Research and Development Center World Bank Research and

Biodiversity Collections for Biology (PPPB) to manage syetematic collections, including the van de Poll Development Center forestablishment of a computerized database which will serve as a basic Biology of thereference tool for biodiversity inventory and monitoring. Potential Indonesian Institute ofinformation users in other sectors will provide advice on database Sciencesdevelopment. Specific components include human recourcedevelopment, collections maintenance and development, improvement ofresearch facilities, and publications and user products.

Lao PDR Objectives of the project include the protection of biological diversity World Bank Nad Office for Nature

Wildlife & Protected through human resource development and institutional strengthening, the Shen Conservation &Areas Conservation designation, establishment and management of priority protected areas Watershed Mgt (Dept of

and protection of associated wildlife, and the planning and Forestry)Forest Management and implementation of community participatory programs in and aroundConservation Project protected areas. Components include the establishment and management

of at least four protected areas, technical assistance and conservationtraining with particular emphasis on the recruitment of NGOs forcommunity mobilization, environmental monitoring and evaluation, andthe design of a conservation trust fund for long-term financing.

Philippines Support for government efforts to establish a core National Integrated World Bank Dept of Environment &

Conservation of Priority Protected Area System (NIPAS) for ten sites over a seven year period, Shen Natural Resources;Protected Areas through financing site development and resource management. This NGOs for Integrated

project will promote the participation of local communities in site Protected Areas (NIPA)Env. & Nat. Resources management, as well as strengthen national capacity for coordination andSector Adj. Prgm. monitoring. The Departnent of Environment and Natural Resources

(DENR) received a grant to strengthen park infrastructure and services,and a national NGO consortium (NIPA) received a grant to providetechnical assistance services and administer a livelihood fund for localcommunities.

China Rehabilitation of gas transmission and distribution systems to eliminate World Bank Sichuan Petroleum

Sichuan Gas methane gas losses and improve pipeline network performance. Main Morsli AdministrationTransmission and components will focus on safety and operational efficiency of theDistribution transmission and distribution system, and selection of cost effectiveRehabilitation measures to reduce gas leakages through a program of environmental

upgrades. The associated Bank project includes a gas pricing reformSichuan Gas Development program which will encourage efficiency and conservation in gasand Conservation Project consumption in the future.

* Pilot Phase Work Program projects have received the endorsement of their representative govemment(s), the GEFs Scientific and Technical Advisory Panel,World Bank management and the GEF Participants. GEF I Work Program projects have received endorsement from their representative govemment(s), WorldBank management and the GEF Council.

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Investment Operations

Associated Bank Mgmt GET Grant Total Cost Proj. DevelopmentParticipation Phase Approval** (US$ mil)*** (US$ mil)**** Status

Arnold Arboretum of Harvard U. Pilot 06/94 7.2 11 4 Grant effective 7/94.

Royal Ontario Mus. of Ontario Implementation to

British Museum of Natural Hist.

IUCN Pilot 02/94 5.0 20.3 Selection of GEF technicalassistance team underway.Project CoordinationCommittee established, and

interim, first year work planunder preparation.Effectiveness expected 1/95

WWF-US Pilot 05/94 20.0 22.8 Grants to Philippines' Dept.WWF-USPPilotR05/94M20.0 22.8 of Environment and NaturalPPRM Resources and to NIPAGreen Forum Philippines effective 10/94 Super-Association of Foundations intendants appointed for 8Community Extension for R&D protected areas and 7 man-Natmure ty Crusdensionfo Philipp agement boards established.Nature Crusaders of Philippines NIPA recruiting staff and toAWB start training and awareness

programs soon

Pilot 03/94 10.0 122.7 Approved by Bankmanagement 3/94.

** Date of World Bank management approval (future dates reflect best estimates). Bolded dates indicate projects approved during current reporting period.For projects not yet approved, anounts reported are only estimates and are subject to change.

*** The difference between GEF grant amount and total project cost is financed by multilateral, bilateral, NGO and local public and private sources

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Work Program* Global Environment FacilityCountry/Project/Associated Bank Implementing Agency/ Executing

Project Project Description Task Manager/ Agency

Philippines Project seeks to assist in meeting the rapidly increasing demand for World Bank Philippines National Oil

Leyte-Luzon Geothermal electrical power using technology that substantially reduces Greenhouse Irving Co. and National PowerGas emissions. The National Power Corporation (NPC) components of Corporationthe project include the interconnection of electrical power systems of

Leyte/Luzon Geothermal Leyte and Luzon Islands and the strengthening of the environmental andProject social engineering departments of NPC. The Philippine National Oil

Company (PNOC) components of the project include the development ofa geothermal energy field, and constructon and operation under a BOTcontract of a geothermal power plant of 440 MW.

Thailand Project comprises a five year demand side management plan, which seeks World Bank Electricity Generating

Promotion of Electricity to build institutional capability in the Thai electric power sector and Mehta Authority of ThailandEnergy Efficiency throughout the economy. Will pursue policies and actions leading to the

development, manufacturing, and adoption of energy efficient equipmentDistribution System & and processes. Project will demonstrate potential savings, both financial

Energy Efficiency Project and environmental, from reducing the use of fossil fuels for electricity

production and will demonstrate the potential of the electric power sectorto achieve these savings.

China This project combines GEF, IDA and local financing to reduce pollution World Bank 6 Chinese Pon

Ship Waste Disposal in intemational and territorial waters caused by ship wastes. It provides Tsutsumi Authoritiestechnical and financial assistance to the Govemment of China and sixport authorities, selected as models, for the construction and/or

Ship Waste Disposal rehabilitation and expansion of ship waste disposal faciliities. TheProject project includes both national and individual port components.

* Pilot Phase Work Program projects have received the endorsement of their representative govemment(s), the GEFs Scientific and Technical Advisory Panel,World Bank management and the GEF Participants. GEF I Work Program projects have received endorsement from their representative govemment(s), WorldBank management and the GEF Council.

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Investment Operations

Associated Bank Mgmt GET Grant Total Cost Proj. DevelopmentParticipation Phase Approval** (US$ mil)*** (US$ mil)**** Status

Pilot 05/94 30.0 1,333.6 Grant agreement signed 9/94.

Int Inst. for Energy Cons. Pilot 04/93 9.5 189.0 Grant effective 11/93.Project activities underimplementation

Pilot 05/92 30.0 64.8 Grant effective 12/92.Project activities underimplementation.

* Date of World Bank management approval (future dates reflect best estimates). Bolded dates indicate projects approved during current reporting period.*** For projects not yet approved, amounts reported are only estimates and are subject to change.**** The difference between GEF grant amount and total project cost is financed by multilateral, bilateral, NGO and local public and private sources

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Work Program* Global Environment FacilityCountry/Project/Associated Bank Implementing Agency/ Executfng

Project Project Description Task Manager/ Agency

Belarus A logical extension of the Poland Forest Biodiverity work, this project World Bank Belarus Council of

Biodiversity Protection aims at conservation planning and research outreach programs. Stephenson Ministers' Committee forEcology

Czech Republic This project protects ecosystem biodiversity in three representative World Bank Ministry of EnvironmentBiodiversity Protection ecosystems (zones containing alpine meadows, lowland forests and Wencelius

wetlands), supports the activity of three transnational biodiversityprotection networks, and fosters financially sustainable biodiversityprotection through the introduction of user fees and related charges forvisitors and concessions, to manage the areas within their carryingcapacity.

Poland The project has initiated programs to conserve the biodiversity of key World Bank Ministry of Environment

Forest Biodiversity cndangered forests and is providing institutional support to the Ministry Wencelius Protection, NaturalProtection of Environment, Natural Resources and Forests to undertake biodiversity Resources & Forestry

conservation management activities. Innovative features include theestablishment of a gene bank to protect genetic diversity at risk since in-situ conservation is not possible because of pollution.

Romania The project aims to protect the Romanian Delta ecosystem and contribute World Bank Danube Delta Bioshere

Danube Delta to the conservation of biodiversity within the Delta It will strengthen the Bromhead/Luca Reserve AuthontyBiodiversity capacity of the two main responsible institutions to momtor and manage (DDBRA)

protected areas effectively, working with local community groups toensure sustainable resource use and restore some wedands to their naturalcondition. An innovative feature comprises testing various approaches towetland restoration and monitoring their impact.

Russian Federation This project consists of three components: (i) National Strategic World Bank Min of Environmental

Biodiversity Overview (formulation of a national biodiversity strategy, establishment Bond Protection and NaturalConservation -- Priority of a biodiversity database/infonmation system, and preparation of Resources; Centre forResponse Program guidelines on economic evaluation of biodiversity investments and Project Preparation and

policies); (ii) Nature Protection (institutional support, training, immediate Implementationassistance to critical PAs, and model ecotourism projects); and (iii)Integrated Regional Development/Natural Resource Management in theLake Baikal Region.

* Pilot Phase Work Program projects have received the endorsement of their representative govemment(s), the GEFs Scientific and Technical Advisory Panel,World Bank management and the GEF Participants. GEF I Work Program projects have received endorsement from their representative govemment(s), WorldBank management and the GEF Council.

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Investment Operations

Associated Bank Mgmt GET Grant Total Cost Proj. DevelopmentParticipation Phase Approval** (US$ mil)*** (US$ mil)**** Status

UNESCO-MAB Pilot 09/92 1.0 1.3 Under implementation.

WWF Pilot 10/93 2.0 2.8 Effective 1/94.

IUCN

Eur. Trust for Ecological Bricks

Czech Union of Nat. Cons.

Karknosnjfe Foundation Pilot 12/91 4.5 6.2 Implementation proceedingPolish Academy of Science successfully as part of

Transcarpathian network of

projects. Closing dateextended through 12/95.

IUCN Pilot 07/94 4.5 4.8 Effectiveness expected

Friends of the Delta soon. Ecosystem restorationWWF-RiendsofmaniDela activities initiated andWWF-Romania cooperative arrangementsInt. Waterfowl & Wetlands Bur. with Ukranian and US

UNESCO-MAB organizations beingnegotiated.

WWF Pilot 09/95 20.0 26.8 Accepted into work program

Local env. NGOs 12/94. Appraisat expectedLocal env. NGOS ~~~~~~~~~~~~~~~~~~~~~~~~~~2/95.Baikal Commission

Canada Parks

IUCN

** Date of World Bank management approval (future dates reflect best estimates). Bolded dates indicate projects approved during current reporting period.*** For projects not yet approved, amounts reported are only estimates and are subject to change.**** The difference between GEF grant amount and total project cost is financed by multilateral, bilateral, NGO and local public and private sources.

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Work Program* Global Environment FacilityCountry/Project/Associated Bank Implementing Agency/ Executing

Project Project Description Task Manager/ Agency

Slovak Republic This project in the Morava floodplain, Tatras forests, and Eastern World Bank Department of Nature &

Biodiversity Protection Carpathians is developing management techniques for a biodiversity Wencelius Landscape Conservation;protection program, a conservation program to develop revenue Ministry of Environmentgeneration mechanisms for the protected area system, and a program toprovide support for project management coordination at the national leveland at the three selected zones. Innovative features include anenvironmental NGO small grants program, and the development of a ti-national trans-border trust to maintain the coordinated management of theinternational biosphere reserve in Eastern Carpathians.

Turkey This project will identify and establish in-situ conservation areas for the World Bank General Directorate forIn-Situ Conservation of protection of genetic resources and wild relatives of important crops and Bromhead Agricultural Research ofGenetic Biodiversity forest tree species that originated in Turkey, providing for sustainable in- the Min of Ag. and

situ conservation of genetic resources in cereals, horticultural crops, Rural AffairsEastern Anatolia medicinal plants, forest tees, and pasture grasses and legumes through anWatershed Rehab. Project integrated ecosystem approach. Project components include site surveys

and inventories, gene management zones, data management, nationalplan for in-situ conservation, and institutional strengthening.

Ukraine Part of the tri-country Transcarpathian Network, the project supports a World Bank Ministry ofTranscarpathian biodiversity protection program (inventory, genetic studies, GIS critical Stephenson Environmental ProtectionBiodiversity Protection habitat analysis), a management resources program to enable coordinated

management of the discontinuous reserved areas of the CarpathiansBiosphere Reserve, and training and institutional strengthening programs.

Ukraine This project aims to protect the Ukrainian Delta ecosystem and contribute World Bank Ministry ofDanube Delta to the conservation of biodiversity in the Delta. It will strengthen the Stephenson Environmental ProtectionBiodiversity capacity of the two maun responsible institutions to monitor and manage

protected areas effectively, working with local community groups toensure sustainable resource use, and restoring some wetlands to theirnatural condition. An innovative feature comprises testing variousapproaches to wetland restoration and monitoring their impact.

Poland Through the IFC, direct subsidies will be given to manufacturers of IFC Private Polish EfficientEfficient Lighting compact fluorescent lighting (CFL). Manufacturers and wholesalers will Younger Lighting Manufacturers

be required to pass on full savings on to retailers, who will apply a and Distrbutors; Polishstandard percentage-based mark-up, passing savings on to consumers. Electrcity Dist.This will spark demand for CFL in Poland, demonstrating the financial Companiesand commercial benefits of energy-efficient lighting and resultng in largepower savings and reduced emissions from coal-fired generation plants.

* Pilot Phase Work Program projects have received the endorsement of their representative government(s), the GEFs Scientific and Technical Advisory Panel,World Bank management and the GEF Participants. GEF I Work Program projects have received endorsement from their representative govermment(s), WorldBank management and the GEF Council.

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Investment Operations

Associated Bank Mgmt GET Grant Total Cost Proj. DevelopmentParticipation Phase Approval** (US$ mil)*** (US$ mil)**** Status

WWF-lntl. Pilot 09/93 2.3 3.2 Implementation underway.

IUCNSlovak Union of Nature

Turkish Soc for Prot.of Nature Pilot 02/93 5.1 5 7 Under implementation.

IUCN Pilot 07/93 .5 .6 Under implementation.

UNESCO-MABMacArthur Foundation

Friends of the Delta Pilot 06/94 1.5 1.5 Effective 8/94

Institute of GeoinformaticsUkr. Center of Ecol. of Sea

Polish CFL & luminaire producers Pilot 01/95 5.0 5.0 Accepted in to work

Polish Fdn. for Energy Eff. program 12/94. IFC BoardInt Inst. for Energy Cons. presentation expected 1/95.

** Date of World Bank management approval (future dates reflect best estimates). Bolded dates indicate projects approved during current reporting periodFor projects not yet approved, amounts reported are only estimates and are subject to change.

**** The difference between GEF grant amount and total project cost is financed by multilateral, bilateral, NGO and local public and private sources.

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Work Program* Global Environment FacilityCountry/Project/Associated Bank Implementing Agency/ Executing

Project Project Description Task Manager/ Agency

Poland The project expects to demonstrate interfuel substitution and World Bank Bank for EnvironmentalCoal-to-Gas Conversion technological innovation as a means of reducing C02 emissions. GEF Benmessaoud Protection (EcoBank)

funds will be used to extend coal-to-gas conversions to medium-sizeboilers whose owners could not achieve acceptable financial rates of

Heat Supply Restructuring retum without concessional financing.and Conservahon Project

Russian Federation This project will develop analytical techniques for identifying and World Bank Ministry of Fuels &

Gas Distribution quantifying the principal sources of greenhouse gas emissions in the Stuggins EnergyRehabHiltation and production, transport and utilization of natural gas. It will also developEnergy Efficiency methodologies for ranking the most cost-effective projects for reducing

GHG emissions, define the criteria for asessing eligibility andGas Distribution Rehab. & incremental costs, and strengthen the institutional structures and theEnergy Efficiency Project technical capabilities required to apply the techniques in planning and

implementation.

zone ! 7 -IF 'j- _7 .Czech Republic Identification of key ozone depleting substances (ODS) reduction World Bank Ministry of Environment

Phaseout of Ozone activities, and introduction of new technology for recycling production KosmoDepleting Substances and ODS reduction.

* Pilot Phase Work Program projects have received the endorsement of their representative government(s), the GEFs Scientific and Technical Advisory Panel,World Bank management and the GEF Participants. GEF I Work Program projects have received endorsement from their representative government(s), WorldBank management and the GEF Council.

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Investment Operations

Associated Bank Mgmt GET Grant Total Cost Proj. DevelopmentParticipation Phase Approval** (US$ mil)*** (US$ mil)**** Status

11/94

Polish Foundation for Energy Pilot 11/94 25.0 48.3 RVP Approval 11/94

Social Ecology Union Pilot 01/95 3.2 244 7 Approval expected early1995

Assoc. of A.C. & Refrig. Techs. Pilot 08/94 2.3 2.3 Grant signed 10/94.

** Date of World Bank management approval (future dates reflect best estimates). Bolded dates indicate projects approved during current reporting period.* For projects not yet approved, amounts reported are only estimates and are subject to change.**** The difference between GEF grant amount and total project cost is financed by multilateral, bilateral, NGO and local public and private sources

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Work Program* Global Environment FacilityCountry/Project/Associated Bank Implementing Agency/ Executing

Project Project Description Task Manager/ Agency

MUItiple6ThbNat1c Areas . E -

Global This project will establish a $4 million umbrella fund designed to IFC Various private agenciesSmall and Medium stimulate greater involvement of pnvate, small and medium scale RubinoScale Private Sector enterprises in GEF-eligible activities. The project will build on IFC'sEnterprise Fund experience with private sector project financing, financial and other

intermediaries, and regional project development facilities.

* Pilot Phase Work Program projects have received the endorsement of their representative govemment(s), the GEFs Scientific and Technical Advisory Panel,World Bank management and the GEF Participants. GEF I Work Program projects have received endorsement from their representative govemment(s), WorldBank management and the GEF Council.

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Investment Operations

Associated Bank Mgmt GET Grant Total Cost Proj. DevelopmentParticipation Phase Approval** (US$ mil)*** (US$ mil)**** Status

IFC Financial lntermedianes Pilot 01/95 4 0 4 0 Approved by Participants

Commercial Banks 7/94Foundations & NGOsBusinesses

** Date of World Bank management approval (future dates reflect best estimates). Bolded dates indicate projects approved during current reporting period.* For projects not yet approved, amounts reported are only estimates and are subject to change.

+ The difference between GEF grant amount and total project cost is financed by multilateral, bilateral, NGO and local public and private sources.

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Work Program* Global Environment Facility

Country/Project/Associated Bank Implementing Agency/ Executing

Project Project Description Task Manager/ Agency

Bolivia This project will protect representative samples of diverse and threatened World Bank National Environmental

Biodiversity ecosystems, and strengthen the govemment's institutional capacity to Plaza Secretariat

Conservation protect Bolivian biodiversity. Specific components of the project includesupport for the organization, implementation and follow-up of a NationalSystem of Protected Areas (SNAP) and the establishment of new priorityprotected areas. In addition, the project will include the development ofaltemative management systems for the protection of natural resources in

buffer zones, the development of monitoring and evaluation systems, andadminstrative support.

Brazil Project implementation will take place in two phases: (i) a series of World Bank Ministry of Environment

Biodiversity biome-level workshops to set priorities for biodiversity conservation in Gross/Sobrevila and the Legal Amazoneach biome; in this phase, a national biodiversity network and a set of (MMA)

model biodiversity projects involving various combinations of public andNational Environment private sector organizations will be financed; (ii) the second phase will

Project involve modest financing over long periods for the projects identified in

the first phase; financing would come from a sinking fund to beestablished with a twenty year honzon.

Ecuador Support for the restructuring and strengthening of the institutional World Bank Instituto Ecuatoriano

Biodiversity Protection capacity, regulatory and legal framework for adequate management of the Plaza Forestal y de AreasNational System of Protected Areas (NSPA). Project activities will focus Naturales y de Vida

on (i) institutional strengthening of the Ecuadorean Institute of Forestry, Silvestre (INEFAN)

Natural Areas and Wildlife (INEFAN) in managing the NSPA; (ii)

creation of an improved legal and regulatory framework; (iii) outreachactivities to local communities, involving them in management plandevelopment for protected areas; and (iv) investment activities for civilworks and infrastructure in seven priority protected areas based on

participatory management plans developed with project support.

Mexico Resources will be made available for financing of selected activities on World Bank Secretariat for Urban

Protected Areas the basis of detailed management plans for ten to twelve protected area Demayo Development & Ecology

Program sites. The development and supervision of management plans will beguided by Technical Advisory Committees, composed of representatives

Mexico Environmental of local communities, non-govemmental organizations and local

Project govemments. An ecotourism plan will be prepared and implemented in

one of the protected area sites on a pilot basis, for potential replication in

other areas.

* Pilot Phase Work Program projects have received the endorsement of their representative govemment(s), the GEFs Scientific and Technical Advisory Panel,

World Bank management and the GEF Participants. GEF I Work Program projects have received endorsement from their representative govenmment(s), World

Bank management and the GEF Council.

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Investment Operations

Associated Bank Mgmt GET Grant Total Cost Proj. DevelopmentParticipation Phase Approval** (US$ mil)*** (US$ mil)**** Status

Fdn. Amigos de la Naturaleza Pilot 11/92 4.5 8.4 Project implementationins*tuto de Ecologica behind schedule due to

reorganization of environ-Estacion Biologica del Beni mental agencies. Most ofNature Conservancy the key project personnel

now appointed and trainingprogram underway. Certainprotected area mgt. activitiesunderway.

IBAMA Pilot 06/95 30.0 40.0 Concensus-buildingFINEP workshop held 6/94. PPA

of $275,000 signed 8/94 toConservaton Intemational accelerate preparation.Numerous Brazilian NGOs Appraisal expected early

1995.

Darwin Foundation Pilot 05/94 7.2 8.8 Project coordination unitCorp. Latinam. para Desarollo established and functioning,

and 1995 work programFundacion Natura drafted. Monthly mtgs.The Nature Conservancy being held with park mana-WCS gers. Social assessment,

community participation(incl. indigenous peoples)and NGO outreach activitiesunderway. Conflict reso-lution training to stan 2/95.

Univ. Autonoma de Campeche Pilot 03/92 25.0 33.6 Project delayed by institu-Univ. Autonoma de Pachuca tional reorganization and

change of administration.Univ. Autonoma Metropolitana but implementation getting

underway. Progress made inestablishing a responsiveinstitutional framework forprotected areas that incor-porates local participation.

** Date of World Bank management approval (future dates reflect best estimates). Bolded dates indicate projects approved during current reporting period.For projects not yet approved, amounts reported are only estimates and are subject to change.

**** The difference between GEF grant amount and total project cost is financed by multilateral, bilateral, NGO and local public and private sources.

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Work Program* Global Environment Facility.Country/Project/Associated Bank Implementing Agency/ Executing

Project Project Description Task Manager/ Agency

Peru Grant will be provided as seed money for the Trust Fund for Conservation World Bank Agency for the NationalTrust Fund for Parks & of Peru's Parks and Protected Areas (FONANPE). Annuity of grant will Alderman Fund for Protected Areas

Protected Areas be sufficient to cover the basic management costs of Peru's key (PROFONANPE)conservation units. Part of the income generated each year will be spentto finance project activities, and part will be reinvested to maintain thereal value of the principal.

Costa Rica The project will consist of installing a sufficient number of wind turbines IDB Instituto Costarricense de

Tejona Wind Power (between 40- 100) units to generate 20 MW at Tejona, near Lake Arenal. Calderon ElectricidadIn addition to the wind turbines, the project woud add a control center forthe wind power plant and a connecdon to the power grid. Though this

Electric Power project, wind power will displace thermal power plants that wouldDevelopment Loan otherwise have been built and thereby reduce greenhouse gas emissions.

Jamaica Stengthening of the institutional capabilities of Jamaica Public Service World Bank Jamaica Public Service

Demand Side Company (JPSCo), and implemenation of an integrated approach to Megateli Co.; Demand SideManagement energy conservabon developed by JPSCo. The project will acquire the Management UnitDemonstration necessary information and data to develop sustainable programs that

overcome market barriers to energy conservation. In addition, it will testmechanisms to address these barriers, and information acquired throughevaluation will be used to design full scale sustainable long-term energyefficiency programs. The project will demonstrate the viability of energysavings and efficiency in the commercial, residential and industrialsectors and the long-term sustainability of retrofitting.

Mexico Reduction of greenhouse gas emissions while simultaneously reducing World Bank Comision Federal de

High Efficiency local environmental contamination through the replacement of Luzuriaga Electricidad (CFE)Lighting Pilot incandescent bulbs with fluorescent light bulbs in two major markets, the

cites of Guadalajara and Monterrey. Project will also work to increaseinstitutonal capacity for technological change and energy conservation,and strengthen the Federal Electricity Commission (CFE) and its capacityto practice demand side management on a sustainable basis.

* Pilot Phase Work Program projects have received the endorsement of their representative government(s), the GEFs Scientific and Technical Advisory Panel,World Bank management and the GEF Participants. GEF I Work Program projects have received endorsement from their representative govemment(s), WorldBank management and the GEF Council.

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Investment Operations

Associated Bank Mgmt GET Grant Total Cost Proj. DevelopmentParticipation Phase Approval** (US$ mil)*** (US$ mil)**** Status

IUCN Pilot 02195 5.0 5.0 Negotiations expected 1/95.

WWF

Nature Conservancy

Soc. Peruana de Der. A.mb.

Sociadad Pachamama

Pilot 12/93 3.3 31.3 Grant effectvenessimminent.

Rockefeller Foundation Pilot 03/94 3 8 12.5 Residential direct

Cons. Law Foundation installantion componentCons. Law Foundation ~~~~~~~~~~~~~~~~~~successfully begun. DSMJamaica Environmental Trust Unit strengthening

proceeding and industrialassessment begun. Start-upfor regional framework andpower sector privatizationcomponents slow.

Int. Inst. for Energy Cons. Pilot 03/94 10.0 23.0 Signed 6/94 Effectiveness

Am. Con. for Energy-Eff. Econ. imminent.

** Date of World Bank management approval (future dates reflect best estimates). Bolded dates indicate projects approved dunng current reporting period.*** For projects not yet approved, amounts reported are only estimates and are subject to change.**** The difference between GEF grant amount and total project cost is financed by multilateral, bilateral, NGO and local public and private sources

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Work Program* Global Environment FacilityCountry/Project/Associated Bank Implementing Agency/ Executing

Project Project Description Task Manager/ Agency

intenatilonaj/ater s,Y,A+ _; ' , ' ' t <'-

Regional (Org. of Eastem Project will assist OECS govemments in reducing pollufion of World Bank Organization of theCarribean States) intemational and territorial waters caused by the discharge of ship- Dabbagh Eastern Caribbean States

OECS Ship Waste generated solid wastes by supporting appropriate actions aimed atManagement improving collection, treatment and disposal of these wastes Project

includes national components consisting of the establishment of pon-OECS Solid Waste waste reception facilities and incremental expansion of landfill sites toManagement Project handle ship-generated wastes, together with a regional component

comprised of support activities and technical assistance for projectmanagement, training and education, establishment of common legalframework for waste management, recycling possibilities and publicawareness programs. Project activities will also protect critical habitatfor the endangered Grenada dove.

Regional (Wider Project activities will lay the foundation for countries in the Wider World Bank Internaional MaritimeCaribbean) Caribbean Region to ratify and implement the MARPOL 73/78 Dabbagh Organization

Wider Caribbean Convention, ending discharge of ship-generated wastes into internationalInitiative for Ship- and territorial waters. Technical assistance will be provided for studiesGenerated Waste leading to a regional strategy for the implemenation of MARPOL 73/78,

assessment of existing waste management systems, formulation forcriteria of waste reception facilities at ports, development of integratedwaste management altematives, and public awareness programs. Theproject will also support periodic regional consultative meetings to reachconsensus on different elements of a regional MARPOL strategy.

* Pilot Phase Work Program projects have received the endorsement of their representative government(s), the GEFs Scientific and Technical Advisory Panel,World Bank management and the GEF Participants. GEF I Work Program projects have received endorsement from their representative govemment(s), WorldBank management and the GEF Council.

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Investment Operations

Associated Bank Mgmt GET Grant Total Cost Proj. DevelopmentParticipation Phase Approval** (US$ mil)*** (US$ mil)**** Status

RARE Center for Trop. Bird Cons. Pilot 06/95 14.0 53.4 Appraisal completed and

Birdlife International negotiations expected early1995. Component added to

U. of West Indies protect critical habitat of the

Grenada dove.

Pilot 06/94 5.5 5.5 Grant effective 9/94.Implementation starting.

** Date of World Bank management approval (future dates reflect best estimates). Bolded dates indicate projects approved during current reporting period# For projects not yet approved, amounts reported are only estimates and are subject to change.**** The difference between GEF grant amount and total project cost is financed by multilateral, bilateral, NGO and local public and private sources.

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Work Program* Global Environment FacilityCountry/Project/Associated Bank Implementing Agency/ Executing

Project Project Description Task Manager/ Agency

. M1

Algeria The project will develop and implement a management plan for the World Bank National Conservation

El Kala National Park National Park and wetland complex in the El Tarf Wilaya, including Msellati Agency; Ministry ofand Wetlands undertaking base-line studies, protected area management, natural Agriculture; El TarfManagement resource use development, monitoring and adaptive research, Wilaya

environmental education, institutional strengthening of the responsibleorganizations, and establishing a conservation fund for use by NGOs andother local groups in relation to preservation of the environment.

Egypt The project will support the development and implementation of policies, World Bank Tourism Development

Red Sea Coastal and plans and regulations that ensure that economuc development in the Red Graham Auth; Egyptian EnvMarine Resource Sea is consistent with sound environmental management to protect the Affairs Agency; Red SeaManagement shared marine resources of the Red Sea coastal zone. Project components Govemorate

include institutional strengthening, development of public-privatePriv. Sect. Tourism partnerships to ensure sustainable environmental management, dataInfrastr. & Env. Mgmt analysis and system monitoring.

Gloi&l W aiiirg t' t--s

Iran The study will identify least-cost short and long-term options for reducing World Bank Office of Transportation

Teheran Transport vehicular emissions in Tehran, based on an analysis of policy and Tharakan & Traffic Affairs, TehranEmissions Reduction technology constraints, and will suggest specific actions which could be Municipality

taken to overcome those constraints.

Morocco Repowering of an existing plant with a second generation advanced World Bank National Electricity

Repowering of Power combustion turbine, together with improvements in the quality of the Larfieu OrganizationPlant materials and enhancement of the scheme's performance in the power

generating system of Morocco. Close monitoring of the projectfs impactand careful analysis of the findings will help determine its widerapplicability for use throughout the country.

Tunisia The project will promote the commercialiazation of solar water heating World Bank Agence pour la Maitrise

Solar Water Heating technology in the residential and tertiary sectors by conditioning the Savorelli de l'Energiemarket for sustained penetration of the technology as a least-costaltemative under competitive market conditions

Pilot Phase Work Program projects have received the endorsement of their representative government(s), the GEFs Scientific and Technical Advisory Panel,World Bank management and the GEF Participants. GEF I Work Program projects have received endorsement from their representative government(s), WorldBank management and the GEF Councit.

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Investment Operations

Associated Bank Mgmt GET Grant Total Cost Proj. DevelopmentParticipation Phase Approval** (US$ mil)*** (US$ mil)**** Status

Pilot 04/94 9.2 11.6 Grant effective 9/94.

UNEP Pilot 11/92 4.8 5.7 Grant awaiting effectivenessdue to delays fromassociated Bank loan

Pilot 10/93 2 0 4 0 Project underimplementation.

Pilot 09/94 6.0 38.0 RVP Approval 9/94

Pilot 11/94 4.0 27.7 RVP Approval 11/94.

** Date of World Bank management approval (future dates reflect best estimates). Bolded dates indicate projects approved during current reporting period.*** For projects not yet approved, amounts reported are only estimates and are subject to change.**** The difference between GEF grant amount and total project cost is financed by multilateral, bilateral, NGO and local public and private sources.

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Work Program* Global Environment FacilityCountry/Project/Associated Bank Implementing Agency/ Executing

Project Project Description Task Manager/ Agency

10^| I I 1 rm MWTT .1mu l

Regional (Algeria, The project aims to: (a) reducing the input of hydrocarbons into the World Bank Min. of Transport (Alg.);Morocco, Tunisia) international waters of the Mediterranean; (b) ensunng commonality Ben-Slimane Office d'Exploitation des

Oil Pollution approach, regulatory policies, and methodologies; (c) promoting Ports (Mor.); Office desManagement Project for exchange of information and coordination of implementation; (d) Ports Nationauxthe Southwest utilizing national data sets to assess long term regional trends in marine Tunisiens (Tun.)Mediterranean Sea pollution, both for national coastal waters and for adjacent international

waters; (e) enhancing the national monitoring capability; and (F)Algera Third Ports / developing a coastal environmental management framework.Morocco Port Sector Loans

* Pilot Phase Work Program projects have received the endorsement of their representative govemment(s), the GEFs Scientific and Technical Advisory Panel,World Bank management and the GEF Participants. GEF I Work Program projects have received endorsement from their representative govemment(s), WofldBank management and the GEF Council.

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Investment Operations

Associated Bank Mgmt GET Grant Total Cost Proj. DevelopmentParticipation Phase Approval** (US$ mil)*** (US$ miI)**** Status

Pilot 04/94 18.3 20.0 3 grant agreements signedand effective 5/94.

** Date of World Bank management appmval (future dates reflect best estimates). Bolded dates indicate projects approved during current reporting period.** For projects not yet approved, amounts reported are only estimates and are subject to change.

**** The difference between GEF grant amount and total project cost is financed by multilateral, bilateral, NGO and local public and private sources.

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Work Program* Global Environment FacilityCountry/Project/Associated Bank Implementing Agency/ Executing

Project Project Description Task Manager/ Agency

l;I I L , lo 1 ,i ,, ,I ,1Bhutan Establishment and management of a national system of protected areas; World Bank Forestry Department,

Trust Fund for development of the institutional and human resource capacities needed to Shen Nature ConservationEnvironmental manage the national system. This project will test the feasibility of a trust DivisionConservation fund as a mechanism for providing long-term, sustainable finance for

biological conservation programs in the protected areas.

India Project promotes and commercializes investment in wind farms and solar World Bank Indian Renewable

Alternate Energy photovoltaic power systems through the provision of below-market laons Manzo Energy Developmentto investors in these systems, primarily from the private sector. Agency (Dept of Non-Popularizes renewable technologies through public education programs Conventional Energy

Renewable Resource that explain their functions and capacity. Implementation is overseen by Sources)Management Project the Indian Renewable Energy Development Agency.

Pakistan Design and construction of a privately-managed power station fueled by World Bank Municipal Corporation

Waste-to-Energy: methane gas collected from an urban landfill that otherwise would be Walker LahoreLahore Landfill Gas released to the atmosphere. This project will transfer a technologyRecovery and Use developed and proven in more advanced countries to a developingPunjab Urban country and test the feasibility of its application in that setting.

Environment Project

* Pilot Phase Work Program projects have received the endorsement of their representative government(s), the GEFs Scientific and Technical Advisory Panel,World Bank management and the GEF Participants. GEF I Work Program projects have received endorsement from their representative government(s), WorldBank management and the GEF Council.

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Investment Operations

Associated Bank Mgmt GET Grant Total Cost Proj. DevelopmentParticipation Phase Approval** (US$ mil)*** (US$ mil)**** Status

UNDP Pilot 05/92 10.0 20.0 Under implementation

WWF-US Trust fund established &

WWF-Bhutan operating successfully

ufacturers' Association Pilot 11/92 260 186.0 Grant effective 4/93 Wind

Indian Renewable Energy Man- energy component fullysubscribed. First two PVinvestments ready forappraisal end-I 994.

Pilot 08/95 11.0 76.0 Project appraisal scheduledfor 3/95.

** Date of World Bank management approval (future dates reflect best estimates). Bolded dates indicate projects approved during current reporting period.*** For projects not yet approved, amounts reported are only estimates and are subject to change.**** The difference between GEF grant amount and total project cost is financed by multilateral, bilateral, NGO and local public and private sources

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Global Environment Facility Investment OperationsPortfolio Pipeline*

Country Project/Concept Name Task Manager Prepatation Status

China Nature Reserves Management Scobey Biodiversity Action Plan and project preparationcompleted with Pre-lnvestment Facility advance of$1.68 million. Appraisal scheduled for early 1995.

India Ecodevelopment Mott Appraisal scheduled for 3/95.

Indonesia Biodiversity Conservation & Development: Kerind van de Poll Project preparation nearing completion. AppraisalSeblat National Park expected 6/95.

Thailand Conservation Area Protection and Management Chung Preparation nearing completion. Submission to GEFCouncil pending ratification of BiodiversityConvention.

Brazil Biomass Power Jadrijevic Project feasibility testing well advanced underGEF/UNDP T.A. project funding. Appraisalexpected by 7/95.

China Efficient Industrial Boilers Taylor Preparation work to begin early 1995. Appraisalexpected by 9/95.

Ukraine Energy Efficiency Keamey Feasibility work nearing completion, financed byUSAID.

Regional (Kenya, Lake Victoria Basin & Ecosystem Management Vidaeus Detailed preparation just beginning in each country,Tanzania, Uganda) funded by project preparation advances. Appraisal

expected early 1996.

BEug Paeuoze

Bulgaria Phaseout of Ozone Depleting Substances I Steininger Appraisal expected 2/95

Hungary Phaseout of Ozone Depleting Substances Kosmo Appraisal expected 2/95.

Russian Federation Ozone Depleting Substances Reduction I Brown Preparation underway with a project preparationadvance of $500,000. Appraisal expected 2/95.

Slovak Republic Ozone Depleting Substances Reduction Widge Transferred to IFC for resubmission in GEF 1.

* Pipeline projects have received preliminary endorsement of their representative govemment(s) and their respective World Bank Country Department(s), andhave been cleared by the GEF Secretariat and the Global Environment Coordination Division for preparatory funding. They have not yet been formally approvedby the GEF Council for GET funding.

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Montreal Protocol

ODS ODSRegion/Country to be Phased Date of

Project Activity Description Project Phased Out to ECSector Sub-project Description Activity 1/ Type 2/ Out 3/ Date 3/ Approval

Nigens

CY94 Plan - Country Program Work Program -- -- 03/94

CY94 Plan - ODS I Project Preparation Work Program 03/94

China

CY94 Plan - ODS I Project Preparation Work Progm. 03/94

CY94 Plan - ODS I Project Preparation Work Program -- -- 03/94

CY94 Plan - ODS m Project Preparation Work Program -m -- 03/94

ODS Project I Investment Main Project 14000 -- 06/92

Halon Beijing ABC powder production project Sub-project 400 06/92

Aerosol Shanghai CFC conversion to LPG propellant Sub-project 6300 06/92TA/Agency Fee Sub-project 06/92

Aerosol Tianjin CFC conversion to LPG propellant Sub-project 6300 06/92Foam Zhejiang foam plant conversion to butane Sub-project 500 06/92

Halon Zhejiang halon extinguisher conversion Sub-project 500 06/92

zzz (Of which PPA I for ODS I) 06/92

1/ Activity: Investment Project or Work Program activity2/ Project Type: Main Project, Sub Project, or Pre-investment3/ metric tons

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Ozone Project Portfolio

ExpectedApproved Disbur- Date ofFunding sements Completion Status of Implementation

150,000 12/94 In a July 1994 mission, the Bank agreed with the Federal Environmental Protection Agency (FEPA)to againrequest proposals for preparation of the Country Program for the Phaseout of Ozone Depleting Substances Theschedule agreed to would involve finalizing a contract by early 1995 and completing the Country Program byJune 1995 The expected date of completion is therefore amended to 06/95.

100,000 12/94 Project preparation has not been initiated and is pending the completion of the country program Expected dateof completion is therefore amended to 12/95.

79,000 23,454 12/94

110,000 140,121 12/94

660,000 292,953 12/94

6,925,000 720,000 12/95 Subproject implementation underway.

930,000 Technolgy training scheduled for December 1994. Equipment to be shipped in Feb 1994. Final testingscheduled for completion in April 1995.

2,309,000 Bidding complete contracts under negotiation.

93,000 Subproject appraisal reports completed and cleared by the Bank. Govermment coordinated Bank supervisionmissions and assisted enterprises secure technical consultants to prepare and evaluate bidding documents Semi-annual report received.

2,770,000 Bidding complete contract under negotiation.993,000 Plant layout reorganized for flammable substance application (includes US$ 20,000 for technical

supervision/assistance).730,000 Technology investigation tour complete.-900,000

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Montreal Protocol

ODS ODSRegion/Country to be Phased Date of

Project Activity Description Project Phased Out to ECSector Sub-project Description Activity 1/ Type 2/ Out 3/ Date 3/ Approval

ODS Project I - 50% CFC Foam Investment Main Project 1760 - 06/93

Sub-project

Foam Chengde Sub-project 06/93

Foam Contingency Sub-project 06/93

Foam Dalian conversion Sub-project 06/93

Foam Financial Agency Fee Sub-project 06/93

Foam Henan Xinfei conversion Sub-project 06/93

Foam Liming Research Institute Sub-project 06/93

Foam Qindao Haier conversion Sub-project 06/93

Foam Shangling conversion Sub-project 06/93

Foam Shenyang Production of Polyol Sub-project 06/93

Foam Shuangyan conversion Sub-project 06/93

Foam Technical Assistance Sub-project 06/93

Foam Tianjin conversion Sub-project 06/93

Foam Wuxi Production of Polyol Sub-project 06/93

zzz (Of which PPA I for ODS I) 06/93

ODS Project Im Investment Main Project tbd --

Refrigeration Chang Ling Sub-project 70 07/94

Refrigeration Hua Yi Electrical Sub-project 60 07/94

Foam Shanghai#lg Sub-project 200 07/94

Foam Shanghai #6 Sub-project 105 07/94

Refrigeration Shanghai Compressor Sub-project 100 07/94

Refngeration Shanghai Shangling Sub-project 108 07/94

Refrigeration Shanghai Shanglu Sub-project 70 07/94

Halon Tongxiang Sub-project 07/94

Refrigeration Wanabo Electrical Sub-project 80 07/94

Aerosol Zhongshan Fine Sub-project 4067 07/94

PPA I for ODS I and ODS I Investment Pre-investment -- - 06/92

PPA I for ODS I Investment Pre-investment -- -- 06/92

PPA II for ODS mI Investment Pre-investment -- - - 10/92

1/ Activity: Investment Project or Work Program activity2/ Project Type: Main Project, Sub Project, or Pre-investment3/ metric tons

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Ozone Project Portfolio

ExpectedApproved Disbur- Date ofFunding sements Completion Statusof Implementation

4,865,000 400,000 IV95 The Grant Agreement became effective August 31, 1994 Subproject implementation was initiated prior toeffectiveness using PPA I resources.

163,000 There is no imported equipment for this project Bidding for domesitc equipment is complete and disbursementswill soon be requested.

674,000

275,000 Bidding for domesitc equipment complete. For imported equipment bidding has been initiated.

58,000 The FA completed appraisal reports for all subprojects and all have been cleared by the Bank. Disbursementshave begun. The frst semi- annual progress report was received by the Bank on October 10.

1,042,000 Two of four contracts for imported equipment have been signed. The remaining two are being negotiated.

457,000 Retroactive financing is being requested for domestic expenditures. Bidding process for imported equipment isunderway.

476,000 Contracts for imported equipment have been signed and letters of credit obtained. The enterprise is finalizing therequired import documents.

958,000 Bidding for imported equipment is complete. Contracts are being negotiated.

152,000 Contracts forthe imported equipment have been signed and letters of credit obtained. Down payements havebeen made for domestic equipment

485,000 Bidding complete for imported equipment Contracts will be signed soon.

61,000 CIB carried out an ODS projecttraining workshop forthe staffof its branch offices. The workshop was attendedby NEPA officals.

400,000 The enterprise has revised its project propsal from 50% reduction to a complete CFC phaseout using approvedfunds. Butane will be used to replace CFC- 11. The revised proposal has been submitted by the Bank to theOORG technical reviewer for clearance.

264,000 Bidding process for imported equipment complete. Contract is being negotiated.

-600,000

10,524,000 IV94

853,000

1,368,000

450,000

687,000

1,280,000

1,327,000

1,010,000

838,000

1,360,000

1,351,000

1,500,000 358,000 12/94 In progress see ODS I and ODS II subporjects for details of implementation. $0.9M has been assigned to ODS Iwhile $0.6 has been assigned to ODS H.

600,000 IV95

300,000 200,060 IV94 Six project proposals and overall sector strategy completed. Proposals have been submitted to OORG technicalreviewer. Following OORG endorsement, the projects will be submitted to the EC.

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Montreal Protocol

ODS ODSRegion/Country to be Phased Date of

Project Activity Description Project Phased Out to EC

Sector Sub-project Description Activity 1/ Type 2/ Out 3/ Date 3/ Approval

PPA m for ODS m Investment Pre-investment - 02/93

CY94 Plan - ODS I Project Preparation Work Program -- -- 03/94

CY94 Plan - ODS II Project Preparation Work Program - -- 03/94

ODS Project I Investment Main Project thd -- 11/93

Foam Association of Polyurethane Foams Indonesia Technical Sub-project 11/93Assistance Program

FA/TA Sub-project 03/94

Aerosol Indonesian Ministry of Industry and Ministry of Environment Sub-project 11/93(TA Aerosol)

Foam P.T. Dasu Windu Agung CFC-1 I elimination in foam Sub-project 11/93manufacturing

Foam P.T. Erlangga Sub-project 100 07/94

Foam P.T. Royal Abadi Sub-project 120 07/94

Foam P.T.Foamindo CFC- II elimination in foam manufacturing Sub-project 11/93

Foam P.T.Intitri Muliatama CFC elimination in foam manufacturing Sub-project 11/93

Foam P.T.Tulus Bakti Sempuma CFC elimination in foam Sub-project 11/93manufacturing

Project Preparation Advance Investment Pre-investment -- -- 03/93

Maaysia

CY94 Plan - Country Program Work Program -- -- 03/94

CY94 Plan - ODS I Project Supervision Work Program -- -- 03/94

CY94 Plan - ODS II Project Preparation Work Program - - - - 03/94

ODS Project I Investment Main Project tbd -- 02/92

Refrigeration Conservation, leakage control and recycling of CFC- 12 and Sub-project 370 02/92demonstration project in MAC sector

Halon Servicing, maintenance and recovery of portable extinguishers Sub-project 300 02/92(Halon-121 1) and training programme

Phiippines

Controlled Substances Engineering Project Investment Pre-investment -- -- 06/91

1/ Activity: Investment Project or Work Program activity2/ Project Type: Main Project, Sub Project, or Pre-investment3/ metric tons

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Ozone Project Portfolio

ExpectedApproved Disbur- Date ofFunding sements Completion Status of Implementation

320,000 80,000 12/94 July foam workshop resulted in six additional proposals. Sector strategies for all sectors complete and followmnggovernment and implementing agency review will be submitted to EC at its 15th meeting on an informationalbasis.

128,899 116,675 12/94

167,312 12/94

5,216,500 12/95 Umbrella grant agreement is being negotiated.

1,600,000 Project modified within approved funding levels to include vacuum cooling equipment needed to preventscorching of low density foams.

50,000

238,000

1,733,000 Project modified within approved funding levels to include vacuum cooling equipment needed to preventscorching of low density foams.

379,000

237,500

176,000 Technology transfer agreement for proprietary Dow C02 technology under negotiation.

387,000

416,000

250,000 200,000 12/94 US$50,000 included in umbrella agreement (ODS I) for training fnancial agent

25,000 12/94

35,815 23,221 12/94

66,610 20,035 12/94

1,630,000 200,000 12/95 Subprojects implementation has begun.

910,000 Bids for MAC recycle equipment received and evaluation complete. Selection of sites underway.

720,000 Bids for halon recycle equipment received and under evaluation. USEPA has scheduled recycle equipmenttraining for October 1994. Sites for recycle units have been selected.

400,000 393,675 12/94

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Montreal Protocol

ODS ODSRegion/Country to be Phased Date of

Project Activity Description Project Phased Out to ECSector Sub-project Description Activity 1/ Type 2/ Out 3/ Date 3/ Approval

CY94 Plan - ODS I Project Preparation and Work Program -- -- 03/94Supervision

CY94 Plan - ODS II Project Preparation Work Program -- -- 03/94

ODS Project I Investment Main Project tbd -- 03/93

Foam Application of a reduced CFC blowing agent and non-CFC Sub-project 3 5 03/93application preparation at Concepcion Industries

Foam Application of a reduced CFC blowing agent and non-CFC Sub-project 5 03/93application preparation at Federal Electric Company

Foam Application of a reduced CFC blowing agent and non-CFC Sub-project 120 03/93application preparation at Philippines Appliance Corporation(Philacor)

Foam Application of a reduced CFC blowing agent and non-CFC Sub-project 9 03/93application preparation at Sanyo Philippines

Other Conversion of tobacco fluffing process to carbon dioxide at Sub-project 350 03/93Fortune Tobacco Corporation

Solvent Conversion to high-purity water cleaning at Integrated Sub-project 19 03/93Microelectronics, Inc

Solvent Conversion to low-emission processing and organic solvents at Sub-project 5 03/93Electronic Assemblies,

Solvent Conversion to low-emission processing and organic solvents at Sub-project 25 03/93Pacific Semiconductors, Inc.

Solvent Conversion to semi-aqueous and aqueous cleaning solvents at Sub-project 171 03/93lonics Circuits, Inc.

Solvent Conversion to semi-aqueous cleaning solvents at Solid Circuits, Sub-project 4 03/93Inc.

Several Institutional strengthening for Ozone Desk Operations 03/93

Several Technical assistance for the financial institution 03/93

Thailand

Controlled Substances Engineering Project Investment Pre-investment -- -- 06/91

CY94 Plan - ODS I Project Preparation Work Program -- -- 03/94

CY94 Plan - ODS I Project Preparation Work Program -- -- 03/94

1/ Activity: Investment Project or Work Program activity-2/ Project Type: Main Project, Sub Project, or Pre-investment3/ metric tons

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Ozone Project Portfolio

ExpectedApproved Disbur- Date of

Funding sements Completion Status of Implementation

136,027 21,571 12/94

94,900 12/94

11,729,000 12/96 Grant agreement signed on October 6, 1994. Bank endorsement ofthe OPG is required for effectiveness. Arevised OPG was received October 12, 1994 and is being reveiwed by Bank staff.

790,000 Reduction of35 MT/year complete through adoption of 5% CFC foam. Thermal efficiency down 8%

770,000 Reduction of 5 MT/year complete through adoption of 50% CFC foam. Thermal efficiency down 2%

1,770,000 Commercial production with 50% reduced CFC- 11 not yet successful Philacor to move to HCFC- 141 h in 1997

660,000 Reduction of 5 MT/year complete through adoption of 50% CFC foam.

4,720,000 Negotiations with the technology supplier have been successfully concluded and the contract is being drawn up.No tender was necessary as the technology is proprietary. .

430,000

710,000

710,000

790,000

70,000

209,000 Grant agreement (ODS I) to be signed August 1994.

100,000 Grant agreement (ODS I) to be signed August 1994.

390,000 389,960 12/94

129,433 28,261 12/94

81,302 1,456 12/94

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Montreal Protocol

ODS ODSRegion/Country to be Phased Date of

Project Activity Description Project Phased Out to ECSector Sub-project Description Activity 1/ Type 2/ Out 3/ Date 3/ Approval

ODS Project I Investment Main Project tbd -- 06/93

Refrigeration CFC recycling in MAC Sub-project 250 06/92

Solvent CI Group Sub-project 06/93

Solvent GSS Array Sub-project 06/93

Solvent Hana Semiconductor Sub-project 06/93

Refrigeration Hitachi -- Phase I Sub-project 06/93

Refrigeration Kang Yong -- Mitsubishi Phase I Sub-project 06/93

Refrigeration Kulthom Kirby Sub-project 06/93

MAC Nippondenso Sub-project 85 07/94

Solvent Saha Union Sub-project 06/93

Refrigeration Sanyo Universal Sub-project 06/93

Refrigeration Sanyo Universal -- 2 sites, Phase 1. Sub-project 06/93

Solvents Teamtronics Sub-project 15 07/94

Foam Technic Foam Sub-project 06/93

Solvent Thai Heat Exchanger Sub-project 06/93

Refrigeration Thai Toshiba Phase I Sub-project 06/93

Solvent Thai-Airways non-ODS metal cleaning Sub-project 10 06/92

Slovenia

CY94 Plan - Country Program Work Program - - -- 03/94

CY94 Plan - ODS I Project Preparation Work Program 03/94

Turkey

CY94 Plan - ODS I Project Preparation Work Program -- -- 03/94

CY94 Plan - Project Preparation Pre-investment -- -- 07/94

I/Activity: Investment Project or Work Program activity2/ Project Type: Main Project, Sub Project, or Pre-investment3/ metric tons

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Ozone Project Portfolio

ExpectedApproved Disbur- Date ofFunding sements Completion Status of Implementation

11,977,000 12/95 Grant agreement signed August 5, 1994. A Bank mission is in the field working with the govemment to finalizethe subsidiary agreements required for grant effectiveness.

900,000

280,000

320,000

1,000,000

550,000

1,100,000

680,000

142,000

2,573,000

1,000,000

1,890,000

222,000

180,000

270,000

830,000

100,000 Project funds were used to prepare a detailed feasiblity study and project proposal. The proposal is complete andwill be submitted to the 15th meeting ofthe EC. The remaining $60,000 will be put towards implementation ofthe project.

50,000 50,000 12/94 Slovenia's CountryProgram was completed earlierthis yearbutwas notconsidered atthe 13thMeeting oftheExecutive Committee given the uncertainty of its classification as an Article 5 country (i.e. eligible for assistancefrom the Multilateral Fund). This issue was resolved last September when the Ozone Secretarnat infomned theGovemment of Slovenia that, based on its ODS consumption data, it qualified as an Article 5 country. TheCountry Program will be resubmitted for consideration at the 15th EC Meeting in December 1994.

100,000 64,133 A workshop held on project preparation and processing procedures earlier in the year has helped the preparationof 8 subprojects in the refrigeration, foam, aerosol and solvents sectors. Most of these projects will be finalizedin time for presentation and consideration at the 15th Meeting of the Executive Committee of the MultilateralFund.

30,000 18,714 12/94 Funds utilized for supervision on project implementation.

100,000 Funds will be allocated to IFC and to Country Department to support project preparation activities.

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Montreal Protocol

ODS ODSRegion/Country to be Phased Date of

Project Activity Description Project Phased Out to ECSector Sub-project Description Activity 1/ Type 2/ Out 3/ Date 3/ Approval

ODS Project I Investment Main Project 754 304 06/92

Several Demonstration activities in other sectors Sub-project 06/92

Several Institutional strengthening Sub-project 06/92

Several Introduction of non-ODS technologies in the production of Sub-project 750 10/92domestic refrigerators at Arcelik AS.

Refrigeration Recovery and recycling of CFC-12 at a refrigeration production Sub-project 4 06/92plant

Refrigeration Recovery and recycling of CFC- 12 in network of service shops Sub-project tbd 06/92

Argentina . . .. . -... * .

CY94 Plan - Country Program Work Program - - 03/94

CY94 Plan - ODS I Project Preparation Work Program -- -- 03/94

Brazil .. _ .: . .... ; :.. d

CY94 Plan - Country Program Work Program . 03/94

CY94 Plan - ODS I Project Preparation Work Program -- -- 03/94

ODS Project I Investment Main Project -- -- 06/92

Refrigeration Assembly line refitting for HFC- 134a refrigerator compressor, Sub-project N/A 06/92commercial production

Refrigeration CFC- 12 collection, recylcing and conservation programme for Sub-project N/A 06/92household refrigerator maintenance and repair shops

Refrigeration EMBRACO -Compressor manufacturing Sub-project 270 07/94

Refrigeration Project preparation on converting CFC- I central air Sub-project 06/92conditioning units with HCFC-123 orHFC-134a

C;.e,

CY94 Plan - ODS I Project Preparation Work Program -- -- 03/94

ODS Project I Investment Main Project 729 -- 06/92

Several Ozone Seal Sub-project. 06/92

Several Ozone Team Sub-project 06/92

Several Public Awareness Sub-project 06/92

Several Specific Training Sub-project 06/92

Several TECHFIN Sub-project 06/92

1/ Activity: Investment Project or Work Program activity2/ Project Type: Main Project, Sub Project, or Pre-investment3/ metric tons

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Ozone Project Portfolio

ExpectedApproved Disbur- Date ofFunding sements Completion Status of Implementation

6,165,000 3,002,480 12/96 Project under implementation. Most components are well advanced and close to completion. Substantial ODSphaseout has been achieved.

500,000 Anumber ofproject preparation activities have been funded underthis component, inclduing the preparation ofthree additional refrigeration-sector projects which are being finalized for presentation to the next meeting of theFund Executive Committee.

300,000 Difficulties in initiating institutional strengthening activities were addressed during the last supervision mission.

4,900,000 Phase I of the CFC- 1I replacement in foam blowing (50% CFC foam) has been implemented, resulting in annualsavings of 300 tons per year. Phase II consasts in the introduction of cyclopentane and has been implemented.Trial runs underway.

65,000 Subproject has been fully implemented. Monitoring of recovery and quality or material underway.

400,000 Design of the pilot program for recovery/recycle/reclaim of CFC- 12 from servicing activities are underway.

30,000 30,000 12/94

192,929 51,874 12/94

49,400 12/94 Brazil Country Program was completed, presented and approved atthe 13th Meeting ofthe Executive Committee.

164,380 80,102 12/94 Bank has supported the preparation of refrigeration-sector projects, including Metalfrio which is inthe process ofbeing cleared by the Fund Secretariat On-going support is being provided to FINEP to further enhance itscapacities to identify and prepare new unvestment operations. The Bank also visited Brazil for supervision of theproject

2,930,000 1,000,000 12/96

530,000 An umbrella grant agreement was signed with FINEP on December 17, 1993. Project preparation is proceedingon all fronts.

2,000,000 Pilot programme being designed. To be processed through the umbrella agreement.

221,200 Project approved at 13thEC Meeting. Subproject processed through umbrella grant agreement and is expectedto be implemented shortly.

400,000 Funds for FINEP to support project preparation.

. . . ......................... ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~.... ......................... ...............

30,208 40,815 12/94

1,206,076 155,780 12/96 Grant agreement signed July 1993. Project implementation has been initiated.

7,000

215,200

361,000

127,876

495,000

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Montreal Protocol

ODS ODSRegion/Country to be Phased Date of

Project Activity Description Project Phased Out to ECSector Sub-project Description Activity 1/ Type 2/ Out 3/ Date 3/ Approval

Ecuador

CY94 Plan - ODS I Project Preparation Work Program -- -- 03/94

ODS Project I Investment Main Project 341 -- 03/93

Aerosol Conversion of aerosol plants to hydrocarbon propellants 290 03/93

Several Institutional strengthening 03/93

Foam Reduction of CFC- 1I use in foam insulation at three 51 03/93refrigerator manufacturing plants

Guatemala

CY94 Plan - ODS I Project Preparation Work Program - -- 03/94

Mexico

CY94 Plan - ODS I & Project Preparation Work Program 03/94

CY94 Plan - ODS M& Project Preparation Work Programs -- -- 03/94

MAC Recycling and Aerosols Investment Pre-investment -- -- 06/92

ODS Project I - Ozone Protection Policy Investment Main Project -- -- 04/91

Uruguay

CY94 Plan - ODS I Project Preparation Work Program -- -- 03/94

ODS Project I Investment Investment Main Project - -

Refrigeration Colder 11,

Foam Etchepare 4,4

Refrigeration Indunor 19,3

Foam Tem 5,2

Venezueta

CY94 Plan - Country Program Work Program - - - 03/94

CY94 Plan - ODS I & II (Molanca & Chiller) Project Work Program - - 03/94

Preparation

CY94 Plan - ODS m (FAACA) Project Preparation Work Program -- -- 03/94

CY94 Plan - ODS IV (AAISA) Project Preparation Work Program - 03/94

1/ Activity: Investment Project or Work Program activity2/ Project Type: Main Project, Sub Project, or Pre-investment3/ metric tons

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Ozone Project Portfolio

ExpectedApproved Disbur- Date ofFunding sements Completion Status of Implementation

30,000 43,782 12/94 Project supervision on-going. Implementation is proceeding satisfactorily.

1,566,000 405,720 12/94 Project implementation is proceeding satisfactorily. No major issues to report

697,000

204,000

665,000

55,000 5,538 12/94 Following the reconnaissance mission, there appears to be no scope for Bank involvement at this stage.

52,286 52,755 12/94

100,000 520 12/94

180,000 12/94

4,000,000 400,000 12/94 Several subsidiary agreements recently signed.

100,000 22,183 12/94 Underway. Initial reconnaissance has identified a number of small projects.

To be presented to the 15th Meeting of the Executive Committee.

To be presented to the 15th Meeting ofthe Executive Committee.

To be presented to the 15th Meeting ofthe Executive Committe.

To be presented to the 15th Meeting ofthe Executive Committe.

40,040 12/94

83,236 28,908 12/94

47,190 130 12/94

47,190 12/94

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Montreal Protocol

ODS ODSRegion/Country to be Phased Date of

Project Activity Description Project Phased Out to ECSector Sub-project Description Activity 1/ Type 2/ Out 3/ Date 3/ Approval

CY94 Plan - ODS V (Air Cond) Project Preparation Work Programn 03/94

ODS Projec. IV-AAISA MAC Compressor Conversion Investment Main Project II1 I . 09/94

ODS Project I - Placticos Molanca Investment Main Project 259 259 06/92

ODS Project nI - Chiller Retrofits Investment Main Project 14 - 10/92

ODS Project HI - FAACA-MAC Production Investment Main Project -- 11/93

Conversion

ODS Project IV - AAISA-MAC Compressor Investment Main Project I- - - 11/93

Conversion

Algeria

CY94 Plan - ODSI Project Preparation Work Program -- -- 03/94

Egypt

CY94 Plan - LFC Project Preparation Work Program -- -n 03/94

CY94 Plan - ODS I Project Preparation Work Program -- - - 03/94

ODS Project I - MCMC Compressor Investment Main Project 324 -- 10/92

Refrigeration Conversion of refrigeration compressor manufacturing to HFC- 324 10/92134a at MCMC

Jordan

CY94 Plan - ODS I Project Preparation Work Program -- -- 03/94

1/ Activity: Investment Projector Work Program activity2/ Project Type: Main Project, Sub Project, or Pre-investment3/ metric tons

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Ozone Project Portfolio

ExpectedApproved Disbur- Date ofFunding sements Completion Status of Implementation

28,655 6,631 12/94

3,802,000 Grant Agreement will be signed during 1994.

1,300,000 1,233,240 12/94

1,100,000 12/95

3,480,000 12/96

620,000 12/96

100,000 6,863 12/94 Activity suspended indefinitely due to travel restrictions.

50,000 12/94 Funds to be utlized to finalize processing ofthe MCMC project and for initial supervision work.

25,000 12/94 The reconnaissance mission scheduled for July 1994 was rescheduled to November 1994. The scope ofactivities under the proposed ODS I project for Egypt has yet to be defined.

2,800,000 12/95 Construction ofthe factory is almost completed and trial production of HFC-134a compressors has taken placealthough not yet in commercial operation. The technology transfer issue which has delayed the signing of theGrant Agreement between the IFC and MCMC is in the process of being resolved and should lead to a grantagreement soon after the IFC clears the new arrangements

2,800,000 Substantial procurement has been done and will be covered retroactively. The project is expected to disbursequickly

72,900 68,106 12/94 Two supervision mission have visited Jordan to support the initiation of Project implementation. Continuedclose supervision is planned through the end of 1995.

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Montreal Protocol

ODS ODSRegion/Country to be Phased Date of

Project Activity Description Project Phased Out to ECSector Sub-project Description Activity 1/ Type 2/ Out 3/ Date 3/ Approval

ODS Project I Investment Main Project 315 - 10/92

Aerosol Conversion of aerosol fillers Sub-project 50 06/92

Aerosol Deodorization of liquified petroleum gas (LPG) Sub-project 200 06/92Several Institutional Strengthening Sub-project 06/92

Foam Reduction of CFC- II inflexible foam Sub-project 40 06/92

Foam Reduction of CFC- 1I in rigid insulation foams in domestic and Sub-project 25 06/92commercial refrigerators

Tunisia

CY94 Plan - ODS I Project Preparation Work Program -- - 03/94

ODS Project I Investment Main Project 1265 -- 06/92

Several Implementation of Gov. action Sub-project 10/92

Foam Introduction of low-CFC and non-CFC in rigid foams in Sub-project 175 06/92refrigeration insulation

Refrigeration Maintenance of domestic, commercial and industrial Sub-project 10/92refrigeration systems

Refrigeration Maintenance of domestic, commercial and industrial Sub-project 100 06/92refrigeration systems

Refrigeration Technical assistance for development of HFC-134a-based Sub-project 60 10/92domestic refrigerators

Foam Technical assistance and demonstration of non-CFC technology Sub-project 700 06/92in rigid and flexible foam production

Aerosol Technical Consultancies in Aerosols Sub-project 10/92

Aerosol Technical seminar and conversion to non-CFC technology in Sub-project 230 06/92aerosol sector

:India e .... : : . 7 .: .. . ;.:

CY94 Plan - ODS I Project Preparation Work Program - - - - 03/94

CY94 Plan - ODS II Project Preparation Work Program - -- 03/94

1/ Activity: Investment Projector Work Program activity2/ Project Type: Main Project, Sub Project, or Pre-investinent3/ metric tons

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Ozone Project Portfolio

ExpectedApproved Disbur- Date ofFunding sements Completion Status of Implementation

1,500,000 200,000 12/96 The Project Implementation Unit has been established. The Unit has hired the required staff and set up theoffice. A number of subgrant agreements have been signed and procurements of goods and services has beeninitiated.

250,000 Subgrant agreement signed 2 aerosol fillers. Additional projects in this sector have been prepared and will soonbe presented for fLsnding.

700,000 Subgrant agreement has been signed. Preparation of the procurment package is underway.100,000 Project Implementation Unit has been established and is fully operational. Office equipment and computers have

been purchased. Additional staff has been hired.

200,000 Subgrant agreement has been signed.150,000 Project preparation in refrigeration sector being undertaken by UNIDO. These funds where utilized to cover

contingencies and revised cost estimates of subprojects following appraisal.

,,,.. .

76,296 20,777 12/94 A supervision mission visited Tunisiato assist with the startup of project implementation and the establishmentof the special account. The mission reported that progress was satisfactory.

1,790,000 12/96 A project manager has beers hired and the Project Implementation Unit has been established. Sub-grantagreements are being negotiated with the participating enterprises, several of which have initiated projectimplementation activities.

2S0,000 The Project Implementation Unit has been established and project-related activities have been initiated. Initialdisbursement is expected shortly and will support the procurement of office equipment to set up the projectoffice.

300,000

300,000

100,000

360,000

100,000

50,000

300,000

! ~ ~ ~ .

70,837 59,234 12/94 Project preparation activities are complete and grant agreement for India ODS I has been signed. Firstsupervision mission will take place in December 1994.

775,000 91,232 12/94 Preparation of India ODS 11 (umbrella grant agreement) is almost complete. A number of subprojects havealready been funded and will be channelled through this umbrella grant agreement A Project PreparationAdvance was provided from this budget to IDBI, the local financial agent, to support the preparation of a numberof subprojects to be processed through the umbrella grant agreement

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Montreal Protocol

ODS ODSRegion/Country to be Phased Date of

Project Activity Description Project Phased Out to ECSector Sub-project Description Activity 1/ Type 2/ Out 3/ Date 3/ Approval

ODS Project I Investment Main Project -- -- 06/93

Refrigeration Chiller Retrofits to HCFC 123 Sub-project 06/93

Refrigeration Refrigeration Compressor Product Conversion to HFC- 1 34a Sub-project 11/93

ODS Project II Investment Main Project -- -- 03/94

Aerosol Aero Pharma Aerosol Conversion Sub-project 11/93

Refngeration Compressors Designs Conversion Sub-project 03/94

Foam Expanded Inc. Sub-project 456 07/94

Refrigeration Feezeking Industries Pvt Ltd. Sub-project 35 07/94

Solvents Hindustan Syringes Sub-project 54 07/94

Foam Manali Petrochemical Sub-project 03/94

Foam Manali Petrochemical Polyol Systems Conversion Sub-project 11/93

Refrigeration/AC Subros CFC Phaseout in Mobile Air Conditioning Sub-project 11/93

Foam UB Petroproducts Sub-project 03/94

Foam UB Petroproducus Polyol Systems Conversion Sub-project 11/93

Pakistan

CY94 Plan - ODS I Project Preparation Work Program -- -- 03/94

1/ Activity' Investment Project or Work Program activity2/ Project Type. Main Project, Sub Project, or Pre-investmnent3/ metric tons

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Ozone Project Portfolio

ExpectedApproved Disbur- Date ofFunding sements Completion Statusof Implementation

1,252,000 12/95 Grant agreement was signed in August 1994 and implementation has been initiated by participating enterprises.Both subprojects are expected to be completed within the next 12 months

567,000 Subproject implementation has been initiated.

685,000 Implementation has been initiated..

4,814,784 12/96 The preparation ofthe second Montreal Protocol project for India is almost complete. Negotiations are expectedto be initiated shortly. This large umbrella grant agreement (US$40 million) will establish the framework for theprocessing ofa large number of small projects over the next 2 to 3 years. Anumberofsubprojects have alreadybeen funded by the Multilateral Fund and implementation will proceed shortly after grant agreement signature.

62,520

547,900

502,130

240,500

481,000

481,000

219,000

1,710,000

385,864

200,000

133,191 52,864 12/94 Project identification and preparation continues. NDFC has been selected by the govenmment as the financialintermediary for implementation of Montreal Protocol investment projects. A project preparation workshop washeld in early October and the first group of subprojects will be finalized in the coming months. Projectpreparation is now focusing on develping the most suitable and sustainable project implementation mechanismThe draft Initial Executive Project Summary was recently reviewed by Bank management It is expected that thefrst tranche of sub-projects will consist of about 10 subprojects inthe refrigeration, foam and solvent sectors.

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Global -Environment CoorYlination DivisionEnvironrnent DepartmnentThe World Bank1818 H Street, NNVVWashington, DC 2043,3 USA _tTelephone, 202 473 1816X

COORDINATION

Prinited on recycled paper

Sergio MargulisS-5133

The World Bank