The World Bank Implementation Status & Results Report LB-Environmental Pollution Abatement Project (P143594) LB-Environmental Pollution Abatement Project (P143594) MIDDLE EAST AND NORTH AFRICA | Lebanon | Environment, Natural Resources & the Blue Economy Global Practice | IBRD/IDA | Investment Project Financing | FY 2015 | Seq No: 15 | ARCHIVED on 29-Sep-2021 | ISR47993 | Implementing Agencies: Ministry of Finance, Ministry of Environment, Central Bank Key Dates Key Project Dates Bank Approval Date: 01-Aug-2014 Effectiveness Date: 28-Jan-2016 Planned Mid Term Review Date: 30-Mar-2017 Actual Mid-Term Review Date: 11-Apr-2018 Original Closing Date: 31-Mar-2021 Revised Closing Date: 31-Dec-2021 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The development objectives of the project are to assist the Borrower in: (a) reducing industrial pollution in targeted Industrial Enterprises; and (b) strengthening the monitoring and enforcement capabilities of the MOE. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name A. Technical Assistance (parallel financing):(Cost $3.00 M) B. Investment Sub-projects (IBRD):(Cost $15.00 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions The project became effective in January 2016. In spite of delays in the early stages of implementation, the project has been able to build a strong pipeline of sub-projects during the course of the 2018 and 2019 calendar years. To date ten sub-projects are signed and in various stages of implementation--reducing air and water pollution by up to 90 percent in the targeted enterprises and bringing those enterprises in compliance with national environmental laws. Total disbursements amount to US$11.4 million (76% of loan amount). Implementation progress slowed down in the past year as a result of the economic crisis in Lebanon and the lack of clarity on disbursement of project funds to commercial banks and to the beneficiaries. Since March 2021, the modalities has been clarified by the Central Bank and a commercial bank has signed a sub-loan agreement with one industry in August 2021. However, the disbursement of funds is awaiting official 9/29/2021 Page 1 of 7 The World Bank Implementation Status & Results Report LB-Environmental Pollution Abatement Project (P143594) confirmation by the Government that the project funds will be released in "fresh $" and that funding for the PMU will be secured for the duration of the extension. The Government's response should be received by September 30, 2021 in order for the project to be extended till December 2022 and for the project's activities to be initiated. Otherwise, the project will be closed on the current closing date of December 31, 2021. 9/29/2021 Page 2 of 7 The World Bank Implementation Status & Results Report LB-Environmental Pollution Abatement Project (P143594) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- Substantial Substantial Macroeconomic -- High High Sector Strategies and Policies -- Moderate Moderate Technical Design of Project or Program -- Moderate Moderate Institutional Capacity for Implementation and -- Moderate Moderate Sustainability Fiduciary -- High Moderate Environment and Social -- Moderate Moderate Stakeholders -- Substantial Substantial Other -- Low Low Overall -- Substantial Substantial Results PDO Indicators by Objectives / Outcomes Reducing industrial pollution in targeted Industrial Enterprises IN01032256 9/29/2021 Page 3 of 7 The World Bank Implementation Status & Results Report LB-Environmental Pollution Abatement Project (P143594) ►Particulate Matter reduction achieved under the project in the targeted enterprises (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 91.50 91.50 50.00 Date 01-Aug-2014 29-Sep-2020 26-Jul-2021 31-Dec-2021 All 5 LEPAP sub-projects addressing air pollution are operational. This indicator takes into account the sub-projects implemented at the following industries: Cimenterie Nationale, Zinaline, Sicomo and Ciment de Sibline. The stack measurements for Cimenterie Nationale and Sicomo data is collected from online Comments: monitoring systems and for Zinaline and Ciment de Sibline and is an estimation of the emissions and flow rate of the extraction system. The total dust emissions before the implementation of the sub-projects was around 657 kilo tonns/y and the total emissions reduction is equivalent to 602 kt/y (~ 91.5%). IN01032258 ►BOD/COD reduction achieved under the project in the targeted enterprises (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 98.30 74.00 50.00 Date 01-Aug-2014 29-Sep-2020 26-Jul-2021 31-Dec-2021 The WWTPs of Kassatly Chtaura, Chateau Ksara, Sicomo and Libanlait’s are currently operational, however, the results continue to be affected by the lockdown, specifically for Sicomo as they totally shut down (January – March 2021) and it is not fully operational. Continuous monthly testing by enterprises and MOE monitoring is still taking place to assess the performance of the systems. BOD is tested twice a year as requested by the Litani River Authority (LRA) and those results are shared with MOE by the Comments: enterprises. Lastest values show a reduction in BOD from 8.8 tonns/d to 0.1 tonns/day with a resulting efficiency of 99%. The total load of COD before treatment is 14,1 tonns/d and the total COD reduction achieved is 10, 3 tonns/d equivalent to a treatment efficiency of 73%. Resulting in a cumulative efficiency of 74% IN01032260 ►Industrial solid waste reduced under the project in the targeted enterprises (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 20.00 50.00 Date 01-Aug-2014 29-Sep-2020 26-Jul-2021 31-Dec-2021 The rendering plant of Wilco PM is the only LEPAP sub-project addressing solid waste and it is currently operated in batches (2-3 days /week). Currently 60 tons of waste. is produced and 12 tons is treated by the rendering plant, with a reduction percentage of 20%. There are currently marketing issues to offload Comments: the remining 80%. An expert is being hired to identify alternative uses and markets for the end product. Strengthening the monitoring and enforcement capabilities of the MOE IN01032257 ►Increase in number of non-compliant operational enterprises addressed in letters from MOE to Ministry of Industry, Ministry of Interior, governors, municipalities, and prosecutors (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 62.00 184.00 209.00 50.00 9/29/2021 Page 4 of 7 The World Bank Implementation Status & Results Report LB-Environmental Pollution Abatement Project (P143594) Date 01-Dec-2017 29-Sep-2020 28-Jul-2021 31-Dec-2021 Baseline 2017: 62 letters. Total letters issued from January 2018 till 24 March 2021: 192 letters (equivalent to an increase of Comments: 209.6%). Updated value to be provided IN01032259 ►Enterprises financed through the project aiming towards the environmental compliance Decree no. 8471-2012 (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 8.00 8.00 10.00 Date 01-Aug-2014 29-Sep-2020 26-Jul-2021 31-Dec-2021 As of July 2021, eight enterprises borrowed under LEPAP with 10 financed sub-projects (Cimenterie Nationale, Wilco PM, Sicomo, Kassatly Chtaura, Ciment de Sibline, Libanlait, Zinaline and Chateau Comments: Ksara). All sub-projects are completed and commissioned. Intermediate Results Indicators by Components Component A – Technical Assistance IN01032261 ►Guidelines and tools for environmental monitoring/compliance for specific industrial sectors developed (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 10.00 10.00 9.00 Date 01-Aug-2014 29-Sep-2020 26-Jul-2021 31-Dec-2021 Guidelines for the following sectors have been completed: Slaughterhouse, Meat processing, Dairy Comments: Industry, Cattle Farm, Cement Mixing, Asphalt Mixing, Cutting Stone, Cement Blocks IN01032263 ►People trained on environmental compliance/ monitoring/ enforcement and awareness (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 126.00 126.00 100.00 Date 01-Aug-2014 29-Sep-2020 26-Jul-2021 31-Dec-2021 IN01032265 ►Industrial database including monitoring, permitting, and enforcement data operational (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No Yes Yes Date 01-Aug-2014 29-Sep-2020 26-Jul-2021 31-Dec-2021 Database has been completed Comments: 9/29/2021 Page 5 of 7 The World Bank Implementation Status & Results Report LB-Environmental Pollution Abatement Project (P143594) Component B – Investments (Sub-projects) IN01032262 ►Participating banks lending to enterprises (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 4.00 6.00 4.00 Date 01-Aug-2014 29-Sep-2020 26-Jul-2021 31-Dec-2021 Audi, Fransabank, Byblos, Bank Med, BEMO Comments: IN01032264 ►Enterprises that benefit from LEPAP environmental services (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 65.00 70.00 40.00 Date 01-Aug-2014 29-Sep-2020 26-Jul-2021 31-Dec-2021 IN01032266 ►Sub-loans issued to enterprises for pollution reduction (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 11.39 11.39 14.96 Date 01-Aug-2014 29-Sep-2020 26-Jul-2021 31-Dec-2021 Performance-Based Conditions Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P143594 IBRD-84100 Effective USD 15.00 15.00 0.00 11.44 3.56 76% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P143594 IBRD-84100 Effective 01-Aug-2014 24-Oct-2014 28-Jan-2016 31-Mar-2021 31-Dec-2021 Cumulative Disbursements 9/29/2021 Page 6 of 7 The World Bank Implementation Status & Results Report LB-Environmental Pollution Abatement Project (P143594) PBC Disbursement Achievement Disbursed amount in Disbursement % PBC ID PBC Type Description Coc PBC Amount Status Coc for PBC Restructuring History Level 2 Approved on 29-Jun-2018 ,Level 2 Approved on 11-Jan-2021 Related Project(s) There are no related projects. 9/29/2021 Page 7 of 7