Public Disclosure Copy The World Bank Implementation Status & Results Report Romania Integrated Nutrient Pollution Control Project (P093775) Romania Integrated Nutrient Pollution Control Project (P093775) EUROPE AND CENTRAL ASIA | Romania | Environment, Natural Resources & the Blue Economy Global Practice | IBRD/IDA | Investment Project Financing | FY 2008 | Seq No: 23 | ARCHIVED on 10-Jun-2020 | ISR41987 | Implementing Agencies: Ministry of Public Finance, Integrated Nutrient Pollution Control Project Management Unit Key Dates Key Project Dates Bank Approval Date: 30-Oct-2007 Effectiveness Date: 08-Dec-2008 Planned Mid Term Review Date: 29-Mar-2011 Actual Mid-Term Review Date: 31-Mar-2011 Original Closing Date: 31-Dec-2013 Revised Closing Date: 31-Mar-2022 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) To support the Government of Romania to meet the EU Nitrates Directive requirements by (a) reducing nutrient discharges to water bodies, (b) promoting behavioral change at the commune level, and (c) strengthening institutional and regulatory capacity. Has the Project Development Objective been changed since Board Approval of the Project Objective? Yes Board Approved Revised Project Development Objective (If project is formally restructured)HRPDODELs The development objective of the project is to support the Government of Romania towards meeting EU Nitrate Directive requirements at a national scale. Components Table Name Investments in Local Communities for Reducing Nutrient Pollution:(Cost $93.90 M) Institutional Strengthening and Capacity Building:(Cost $14.00 M) Public Awareness and Information Support:(Cost $7.52 M) Project management:(Cost $10.57 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Satisfactory Moderately Satisfactory Overall Risk Rating Moderate Substantial Implementation Status and Key Decisions This is a desk-review ISR that reports on the most noticeable aspects of the project implementation since the last implementation support mission on last November 2019, and on the short-term impacts of the ongoing COVID-19 pandemic on the project's activities. A thorough review of the 6/10/2020 Page 1 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report Romania Integrated Nutrient Pollution Control Project (P093775) remaining project’s implementation of key activities will be carried out after the ending of actual restrictions and will focus on the feasibility of full disbursement or partial cancellation of the loan given the persistent low budget allocation and no possibility to extend the project beyond the approved closing date. Overall, the World Bank team has been observing progress with the implementation of relevant project activities since November 2019, despite the pandemic that hit Romania starting with mid-March 2020. The COVID-19 pandemic has been affecting the implementation of contracted investments (communal manure management platforms) and other activities funded by the project, because of issues and numerous shortcomings with the construction supply chain and the measures to avoid the spread of the virus that have been adopted by the Government. Under Component 1, 86 financing contracts fully cover the project’s budget without any possibility to finance any of the 36 investment projects included in the reserve list, if no important savings are achieved during the future bidding procedures. There are currently 17 active construction sites, and for 5 of them the construction works have already been completed. For another 16 investments (representing 20 manure management platforms), the works contracts have been signed, but the construction works will start with delays due to the restrictions imposed by the COVID-19 pandemic situation. Despite COVID-19 pandemic issues, most of the rehabilitation works on the current 12 construction sites has continued and workers’ health conditions have been regularly monitoring. Components 2, 3 & 4 of the project are 100% committed, with contracts to be implemented by the end of the project. The Knowledge Transfer Networks under Sub-Component 2.1 have started to be developed and these already represent success models for direct support of interested farmers in training and knowledge sharing of different eco-friendly agricultural practices. During the first training year (16 March 2019 – 15 March 2020), 4757 farmers (out of 6000 targeted) were trained in several model farms selected under this sub-component. In addition, practical field demonstrations were given to farmers from 48 communes with functional manure management platforms provided by the Project. This sub- component 2.1 is also providing a fully functional Helpdesk service to assisting the farmers at national level. The progress towards the achievement of the project development objectives, which is currently deemed moderately satisfactory, will be reassessed during a field implementation support mission in fall this year, after the completion of restriction period. Two years before project closing, disbursement reached about 28% of the AF Loan of EUR 48 million, with a forecast of 31% by June 30, 2020. The actual loan's committed rate is 54.3% based on signed contracts that sum up a total of EUR 26 million; the remaining loan amount will be almost exclusively committed for the remaining selected local investments. Nevertheless, the lack of budgetary allocations poses a risk to contracts and project’s successful completion. In this calendar year, the project received an allocation of only 33% of the requested amount (EUR 4.9 million out of the necessary EUR 14.5 million). An increase in the project budget allocations toward the end of this year and ensuring the necessary budget for the next year (minimum EUR 20 million) will be decisive for the project implementation in line with the working plan. Insufficient budget allocation for the remaining implementation period would result in potential cancellation of unused funds by the end of the project implementation. By the next implementation support mission, a thorough review and analysis will be performed to assess the likelihood of full utilization of funds and propose options to make the best use of the project before its closing date. mpaTable Multiphase Programmatic Approach (MPA) Status mpaTableBody Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- Substantial Substantial Macroeconomic -- Moderate Substantial Sector Strategies and Policies -- Moderate Moderate Technical Design of Project or Program -- Moderate Moderate Institutional Capacity for Implementation and -- Moderate Moderate Sustainability Fiduciary -- Substantial Substantial Environment and Social -- Low Low Stakeholders -- Moderate Moderate Other -- -- Substantial 6/10/2020 Page 2 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report Romania Integrated Nutrient Pollution Control Project (P093775) Overall -- Moderate Substantial Results PDO Indicators by Objectives / Outcomes The development objective of the project is to support the Government of Romania towards meeting EU IN00849130 ►Downward trend of nitrates concentration in waters: at least 70% of targeted project areas show 10% reduction in nitrates discharge to water bodies (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 58.7% 58.7% 70% Date 16-Feb-2007 31-Oct-2019 20-May-2020 31-Mar-2022 The water quality in the targeted NVZs is monitored by ANAR through 124 monitoring wells. The monitoring data provided by ANAR relieve that 58.7% of the of the monitored wells show nitrates (NO3) concentrations at least 10% lower as compared with the baseline values measured in 2009. The Comments: monitoring data for the year 2018 was provided by ANAR in the second quarter of 2019. Due to the restrictions generated by the COVID-19 pandemic situation, the monitoring data for 2019, for the extended monitoring network, will be provided by June-July 2020, when the indicator will be updated. IN00849241 ►Percentage of population in the project area adopting preventative and remedial measures to reduce nutrient discharges (index measures various rural waste management and good agricultural practices) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 3% 68.3% 68.3% 75% Date 26-Feb-2009 31-Oct-2019 20-May-2020 31-Mar-2022 This indicator was estimated by the Baseline Survey carried out in the period May – July 2018 as an index measuring various waste management and good agricultural practices. This survey, conducted on about 3750 households across 100 communes, showed that 68.3% of population, in the project area, apply at Comments: least one of the practices recommended by the Code of Good Agricultural Practice, as preventive and remedial measures to reduce nutrient discharges. An update of this indicator will be done in the second semester, 2020, through the Mid-Term Survey. IN00849242 ►Improved inter-governmental coordination and capacity to assess, monitor and report on progress with implementation of the EU Nitrates Directive (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Improvements Improvements acknowledged - Good acknowledged - Good capacity of the capacity of the governmental governmental institutions TBD from gap analysis institutions in the Improvements Value in the assessment, report assessment, acknowledged monitoring and reporting monitoring and regarding the reporting regarding the implementation of the EU implementation of the Nitrates Directive EU Nitrates Directive Date 01-Feb-2008 31-Oct-2019 20-May-2020 31-Mar-2022 6/10/2020 Page 3 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report Romania Integrated Nutrient Pollution Control Project (P093775) The Inter-ministerial Committee (IC) for the Implementation of the Action Plan for the protection of waters against pollution caused by nitrates from agricultural sources is fully functional and meets on regular Comments: basis. The last meeting was held on January 10, 2020. IN00849243 ►Favorable EU assessment of Romania's progress towards meeting EU Nitrates Directive (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Progress Progress acknowledged through Value n.a. Progress acknowledged acknowledged EU comments on reports. Date 01-Feb-2008 31-Oct-2019 20-May-2020 31-Mar-2022 The report for the period 2012-2015 was submitted to the European Commission on July 8, 2016. In 2017, some notifications coming from EC generally targeted the electronic reporting (excel, xml) for water- related issues, concerning certain mismatches of monitoring section codes and inconsistent geographical coordinates between the sheets, which were not detected by the validation tool. Normally, the Commission should have developed a reporting tool to pinpoint these issues and not allow the closure of Comments: the reporting file until one addressed the mismatches. The Commission's Report to the Council and the European Parliament on the implementation of the Council Directive 91/676/EEC concerning the protection of waters against pollution caused by nitrates from agricultural sources based on Member State reports was disclosed in June 2018. Except the 8 days submission delay, the Report does not mention problems for Romania - no infringement case, nor EU Pilot investigation were opened for Romania. IN00849244 ►Nutrient load reduction (Nitrogen(N)) achieved under the project (Tones/year, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 459.92 459.92 600.00 Date 01-Feb-2008 31-Oct-2019 20-May-2020 31-Mar-2022 This indicator is updated on a yearly basis, and the last update was in January 2018. The nutrient load reduction estimated based on the data reported by the communes for the year 2018 was 459.92 t Nitrogen (N). In addition to Nitrogen (N), the Project resulted in 237.62 t Phosphorous (P2O5) and 412.76 Comments: t Potassium (K2O) reduction. Due to the restrictions generated by the COVID-19 pandemia, the update for 2019 will be done by August 2020. Intermediate Results Indicators by Components Project management IN00849248 ►Number of surveys conducted that collect feedback and report back the results to the communities (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1.00 1.00 3.00 Date 04-Nov-2015 31-Oct-2019 20-May-2020 31-Mar-2022 The first out of three surveys planned during the Project life (Baseline Survey), was conducted between April-July 2018, to collect the initial data on Project area. A number of 3753 households were interviewed in total as follows: (i) 3002 households in 100 communes – main sample (30 households interviewed in Comments: each) selected out of the total number of communes that submitted Concept Notes under the First Call for proposals and taking into account that the overall sample be representative for the national rural area, within a maximum margin error of +/- 2% at a 95% level of confidence and simultaneously have a 6/10/2020 Page 4 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report Romania Integrated Nutrient Pollution Control Project (P093775) representativeness of +/-3.5% for a confidence level of 95% at the region level sub-samples (three major regions considered, Moldova, Muntenia and Transilvania) should be met, and (ii) 751 households in 30 communes – control sample (25 households interviewed in each) selected as control group based on the criteria such as the distance from the communes included in the main sample, the size of the communes in terms of inhabitants and the geographic particularities with the ultimate goal of obtaining similarity with the communes targeted by the Project. Due to the restrictions generated by the COVID-19 pandemic situation, the next survey is planned for the second semester 2020. Institutional Strengthening and Capacity Building IN00849246 ►Working groups at Water Basin and County levels functioning effectively and all staff working on the Nitrates Directive fully operational. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target WGs effective to support EU reporting Ad-hoc implementation WGs are functioning WGs are functioning Value and to coordinate of working groups effectively. effectively. actions of other agencies Date 16-Feb-2007 31-Oct-2019 20-May-2020 31-Mar-2022 IN00849250 ►Increased number of groundwater quality monitoring sites and sample analysis for the Nitrate Directive (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 7.50 7.50 7.50 8.00 Date 04-Nov-2015 31-Oct-2019 20-May-2020 31-Mar-2022 No new investment to increase the number of monitoring wells for groundwater quality was implemented during the period. This indicator is expressed as the number of monitoring sites per 1000 Km2 of Comments: monitored area. IN00849253 ►Number of technical staff (ANAR, EPA, Health Directorates) trained (cumulative) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 689.00 689.00 700.00 Date 26-Feb-2009 31-Oct-2019 20-May-2020 31-Mar-2022 The last training session was done in Q1, 2019 when 30 ANAR technical staff were trained on pesticides Comments: analysis using Gas-Chromatographs. IN00849254 ►Number of farmers trained by knowledge and training providers on Code of Good Agricultural Practices (male/female disaggregated) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 3,400.00 4,757.00 6,000.00 Date 04-Nov-2015 31-Oct-2019 20-May-2020 31-Mar-2022 4757 farmers received a one day training. Out of them 1454 farmers received a second one day training. Were set-up 237 discussions groups, supported by 166 champion farmers and 48 communal platforms Comments: hosting manure management good practices and demonstrations. IN00849255 6/10/2020 Page 5 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report Romania Integrated Nutrient Pollution Control Project (P093775) Number of female farmers trained by knowledge and training providers on Code of Good Agricultural Practices (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 774.00 1,352.00 3,000.00 Date 04-Nov-2015 31-Oct-2019 20-May-2020 31-Mar-2022 IN00849256 ►Reduction in number of farmers penalized by APIA for non-compliance with Nitrate Directive (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 50.00 3.25 3.25 30.00 Date 04-Nov-2015 31-Oct-2019 20-May-2020 31-Mar-2022 This is a new indicator. The baseline was established as the percentage of farmers penalized for non compliance with Nitrate Directive – Norms SMR4. However, starting with 2015, the Nitrate Directive is regulated by the Norms SMR1. The evolution of the percentage of farmers penalized for noncompliance Comments: with Nitrate Directive, Norms SMR1, out of the total number of farmers checked, was 11.61% for 2015, 9.69% for 2016, 3.25% for 2017 and for 2018. A new update of the indicator, for the year 2019, could not be done since APIA has not completed the payments for 2019. IN00849257 ►Land users adopting sustainable land mgt. practices as a result of the project (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 25,800.00 25,800.00 30,000.00 Date 01-Feb-2008 31-Oct-2019 20-May-2020 31-Mar-2022 Actual values represent the same estimation based on the previous completed and functioning investments (86 platforms for manure management). No new platform completed and operational during Comments: the period. IN00849258 ►Number of project communes implementing at least one of the following nutrient reduction measures: communal platforms, pasture rehabilitation, tree planting (cumulative) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 115.00 115.00 200.00 Date 26-Feb-2009 31-Oct-2019 20-May-2020 31-May-2022 Presently there are 115 communes implementing the different practices and measures for nutrients reduction. a) 50 NVZ communes implementing only manure management practices b) 12 NVZ communes implementing manure management, pastures rehabilitation and tree planting Comments: c) 19 NVZ communes implementing manure management and tree planting d) 34 NVZ communes implementing tree planting. No new investments completed and operational during the period. IN00849259 ►Land area where sustainable land mgt. practices were adopted as a result of proj (Hectare(Ha), Corporate) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 21,316.00 21,316.00 38,000.00 6/10/2020 Page 6 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report Romania Integrated Nutrient Pollution Control Project (P093775) Date 01-Feb-2008 31-Oct-2019 20-May-2020 31-Mar-2022 This indicator was updated in January 2018, based on the communes’ reports. Will be recalculated when Comments: the new platforms will be finalized. Investments in Local Communities for Reducing Nutrient Pollution IN00849245 ►Percentage of cropped area in the project communes under relevant nutrient reduction measures. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 9% (updated from Value 60.5% 60.5% 60% baseline survey) Date 26-Feb-2009 31-Oct-2019 20-May-2020 31-May-2022 Updated from the Additional Financing Baseline Survey conducted between April-July 2018. The survey showed that 60.5% of the surveyed farms’ cultivated area in the Project localities is under relevant nutrient Comments: reduction measures. An update of this indicator will be done in 2020, through the Mid-Term Survey. IN00849249 ►Number of communal platforms completed (cumulative) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 86.00 91.00 150.00 Date 26-Feb-2009 31-Oct-2019 20-May-2020 31-Mar-2022 There are 86 platforms for animal waste management and storage already completed in 81 communes under the original loan. New investments in platforms and composting stations for animal waste Comments: management are under preparation. 5 platforms, out of the 33 contracted are finalized. IN00849252 ►Percentage of households with access and connection to sewage system (in targeted villages receiving sewage investments) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 63.98% 59.38% 60% Date 16-Feb-2007 31-Oct-2019 20-May-2020 31-Mar-2022 Estimated as the average of the connection percentages for each of the completed sewage systems, as reported by beneficiaries. Availability of the sewerage network in front of the properties allows for more and more households to opt for building toilets and bathrooms, and thus there is an upward trend as Comments: regards the number of connections. The decrease of the percentage since the last update is due to the completion of the sewerage system in Targsoru Vechi and consequently the increase of the number of available connection points from 3975 to 4795. Public Awareness and Information Support IN00849247 ►Number of meetings/public consultations/workshops organized towards meeting project objectives (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 155.00 155.00 100.00 Date 04-Nov-2015 31-Oct-2019 20-May-2020 31-Mar-2022 6/10/2020 Page 7 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report Romania Integrated Nutrient Pollution Control Project (P093775) The meetings that were planned for 2020 are suspended for now, due to the restrictions generated by the COVID-19 pandemic situation. They will be rescheduled for the time when the restrictions for public Comments: meetings will be over. IN00849251 ►Percentage of questions, comments or complaints relevant to the project that are received and addressed within indicated 30 days (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 100.00 100.00 100.00 Date 04-Nov-2015 31-Oct-2019 20-May-2020 31-Mar-2022 Comments: During year 2019, a complaint was received from one person involved in the construction works regarding the quality of construction works for the sewerage investment Targsoru Vechi, Prahova county. The PMU checked the reality of the issues raised and a response with the check findings was Comments: given to the complainant within the indicated period of 30 days. In 2020, until May 20, no complaints were received. Performance-Based Conditions Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P093775 IBRD-48730 Closed USD 68.10 65.84 2.26 60.30 0.00 100% P093775 IBRD-85970 Effective USD 52.39 52.39 0.00 14.78 38.15 28% P099528 TF-58040 Closed USD 5.50 5.47 0.03 5.47 0.00 100% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P093775 IBRD-48730 Closed 30-Oct-2007 28-Dec-2007 08-Dec-2008 31-Dec-2013 31-May-2017 P093775 IBRD-85970 Effective 28-Mar-2016 14-Apr-2016 13-Apr-2017 31-Mar-2022 31-Mar-2022 P099528 TF-58040 Closed 28-Dec-2007 28-Dec-2007 08-Dec-2008 31-Dec-2013 31-May-2017 Cumulative Disbursements 6/10/2020 Page 8 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report Romania Integrated Nutrient Pollution Control Project (P093775) Restructuring History Level Approved on 13-Jul-2012 ,Level 2 Approved on 05-Aug-2013 ,Level 2 Approved on 08-Sep-2015 ,Level 2 Approved on 03-Nov-2016 ,Level 2 Approved on 15-Oct-2019 Related Project(s) P099528-GEF Romania Integrated Nutrient Pollution Control Project ,P155594-Integrated Nutrient Pollution Control Project - Additional Financing 6/10/2020 Page 9 of 9