Documentof The WorldBank FOR OFFICIALUSEONLY ReportNo: 36273-AFR TECHNICALANNEX 2 ONA PROPOSEDGRANT FROMTHE GLOBAL ENVIRONMENTFACILITY TRUST FUND INTHEAMOUNT OFUS$4.0MILLION TO THE KINGDOMOF MOROCCO INSUPPORTOFTHEFIRSTPHASEOF THE US$21.7MILLIONAFRICA STOCKPILES PROGRAMME-PROJECT 1 November 7,2006 Africa StockpileProgrammeTeam Africa Region MiddleEastandNorthAfrica Region This document has a restricted distribution and may be used by recipients only inthe performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCYEQUIVALENTS Moroccan Dirhams8.89 =US$l.OO (April28,2006) January 1- December 31 FISCALYEAR ABBREVIATIONSAND ACRONYMS AFR Africa Region APL Adaptable Program Loan ASP Afiica Stockpiles Programme ASP-P1 Africa Stockpiles Programme - Project 1 ASP-PCU Africa Stockpiles Programme - Project Coordination Unit ASP-SC Africa Stockpiles Programme SteeringCommittee CAS Country Assistance Strategy CCAME Cross-Cutting Activities ManagementEntity CESA Country Project-specific Environment and Social Assessment CFAA Country Financial Accountability Assessment CIDA CanadianInternational Development Agency CILSS Comitk Permanent Inter-Etat de Lutte contre la Skcheresse(Permanent Inter State Committee for Drought Control) CLI Crop Life International CPD Crop Protection Department DANIDA DanishInternational Development Agency DDT Dichloro-Diphenyl-Trichloroethane DGF Development Grant Facility DGIS Directorate General for International Cooperation DPVCTRF Direction de la Protection des Vbgktaux,des ContrGles Techniqueset de la Rkpression des Fraudes (Government of the Kingdom of Morocco - Department ofPlant Protection, Technical Control andFraudRepression) DSPR Direction de la Surveillance et de la Prkvention des Risques (Government of the Kingdom ofMorocco -Department ofRiskPrevention and Monitoring) EA Environmental Assessment EMP Environmental ManagementPlan EPA Environmental ProtectionAgency EU EuropeanUnion FAA0 Financial andAdministrative Assistant Officer FA0 FoodandAgriculture Organization FFEM FrenchFacility for Global Environment FM Financial Management FMR Financial ManagementReport FMS Financial Management Specialist GAAP Generally Accepted Accounting Principles GEF Global Environment Facility -11 .. - GEFSEC Secretariat o f the Global Environment Facility GEO Global Environmental Objective GTZ Gesellschaftfur Technische Zusammenarbeit (German Aid Agency) I C B International Competitive Bidding IDA InternationalDevelopment Agency IOMC Inter-OrganizationProgramme for the Sound Management o f Chemicals P C S International Programme on Chemical Safety IPM IntegratedPest Management ISDS Integrated Safeguards Data Sheet IVM IntegratedVector Management MADRPM Ministire de 1'Agriculture,du Dkveloppement Rural et des Pgches Maritimes (Ministry o f Agriculture, Rural Development andFisheries) MATEE Ministire de 1'Amknagement du Territoire, de I'Eau et de 1'Environnement(Moroccan Ministryo f LandManagement, Water and Environment) MDTF Multi-Donor Trust Fund MFMTA Municipal Financial Management Technical Assistance Project MNA Middle East andNorth Africa Region M N S I E Water, Environment, Social andRural Development Department MOE Ministry o f Environment M&E Monitoring and Evaluation NEPAD New Partnership for Africa's Development NGOs Non-Governmental Organizations NIP National ImplementationPlan OECD Organization for Economic Cooperation andDevelopment OED Operations Evaluation Department OM OperationalManual OP OperationalProgram PAD Project Appraisal Document PAN-Africa Pesticides Action Network - Africa PAN-UK Pesticides Action Network - UnitedKingdom PDO Project Development Objective PIC Prior Informed Consent PMP Pest Management Plan PMU Project Management Unit POPS Persistent Organic Pollutants RAP Resettlement Action Plan SA Special Account SBC sc Secretariat o fthe Base1Convention Steering Committee SOE Statements o f Expenditure STAP Scientific andTechnical Advisory Panel TA Technical Assistance TF Trust Fund TORS Terms o fReferences TSU Technical Support Unit - 111- ... TTL Task Team Leader UN UnitedNations UNDB United Nations Development Business UNEP UnitedNations Environment Programme UNDO United Nations Industrial Development Organization USAID United States Agency for International Development WHO World Health Organization W W World Wildlife Fund Vice Presidents: Daniela Gressani (MNA) Gobind T. Nankani (AFR) Country Director: Theodore 0.Ahlers (MNA) Sector Director: IngerAndersen (MNA) Michel Wormser (AFTSD) Sector Manager: Vijay Jagmathan (MNA) Task Team Leaders: Peter Kristensen (AFTS4)Denis Jordy (AFTS4) - iv - AFRICA REGION MIDDLE EASTAND NORTHAFRICA REGION AFRICA STOCKPILESPROGRAMME . PROJECT 1 KINGDOMOFMOROCCO CONTENTS Page A. CONTEXT AND RATIONALE ..................................................................... 1 1 2 2 B.3 PROJECT DESCRIPTION..................................................................................................... .. .STRATEGIC Country and Sector Issues ................................................................................................... 1 Rationale for Bank Involvement ......................................................................................... Higher Level Objectives to Which the Project Contributes ................................................ 3 4 1. Financing Instrument .......................................................................................................... 4 2. Project Development Objective andKey Indicators ........................................................... 4 3 Project Components............................................................................................................ 6 4 Lessons LearnedandReflected inthe Project Design ........................................................ 8 10 C.5.... ... Alternatives Considered andReasons for Rejection., IMPLEMENTATION.. ......................................................................................................... ....................................................... 10 1 Institutional and Implementation Arrangements .............................................................. 10 2 Financing Partners ............................................................................................................ 12 3 Monitoring andEvaluation o f OutcomesResults............................................................. 12 4 13 5. Sustainability andReplicability........................................................................................ Critical Risks andPossible Controversial Aspects ........................................................... 13 6 Loadcredit Conditions andCovenants ............................................................................ 16 16 D APPRAISAL SUMMARY .7.. .. Conditions for Disbursementfor Disposal ....................................................................... ................................................................................................... 17 1 Economic andFinancial Analyses .................................................................................... 17 2 3. Fiduciary ........................................................................................................................... Technical ........................................................................................................................... 17 18 4 Social................................................................................................................................. 19 5 .. Environment., .................................................................................................................... 19 6. SafeguardPolicies ............................................................................................................. ...................................................................................... 20 ANNEXES.................................................................................................................................... 7 . Policy Exceptions andReadiness 21 22 Annex 1: Africa Stockpiles ProgrammeBackground .................................................................. 22 Annex 2: Major RelatedProjects Financedby the Bank andor Other Agencies ............................................................................. ........................ 27 Annex 4: Detailed Project Description........................................................................................ Annex 3: Results Framework andMonitoring 31 37 Annex 5: Project Costs ................................................................................................................. 44 Annex 6: ImplementationArrangements ..................................................................................... 45 Annex 7: Financial Management andDisbursementArrangements ........................................... 52 Annex 8: Procurement ................................................................................................................. 57 - v - ........................................................... Annex 10: SafeguardPolicy Issues.............................................................................................. Annex 9: Incremental Cost Analysis for Overall ASP-P1 66 .......................................................................... 77 Annex 12: Documents inthe Project File.................................................................................... Annex 11: Project PreparationandSupervision 80 Annex 13: Statementof Loans and Credits .................................................................................. 82 84 Annex 14: Country at a Glance..................................................................................................... Maps IBRD34040 and 33113R..................................................... 85 Error!Bookmarknotdefined . .vi. AFRICA STOCKPILESPROGRAMME PROJECT 1-MOROCCOPROJECT - PROJECT APPRAISAL DOCUMENT AFRICA REGION MIDDLEEAST AND NORTHAFRICA REGION ASP TEAM Date:November 7,2006 TeamLeaders: PeterKristensen(AFTS4) CountryDirector:Theodore 0.Ahlers (MNA), Denis Jordy (AFTS4) MarkTomlinson (CD16) Sector(s): Sanitation, Health, GeneralAgriculture Sector Director:Inger Andersen (MNA), (100%) Michel Wormser (AFTSD) Theme(s): PollutionManagement, Environmental Sector Manager:Vijay Jagannathan(MNA), Policy MaryBarton-Dock (AFTS4) EnvironmentalScreeningCategory: A ProjectID:P103189 GEFFocalArea: Persistent Organic Pollutants (POPS) [ ] Loan [ ] Credit [XIGrant [ ] Guarantee [ ] Other: For Loans/Credits/Others: Recipient: ResponsibleAgency: Kingdom ofMorocco Ministbre de 1'Agriculture, duDkveloppement Rural et des PCchesMaritimes Directionde laProtection des VCgetaux des ContrBles Techniques et de laRepressiondes Fraudes(DPVCTRF) M.AbderrahmaneHilali - Directeur, DPVCTRF Address:DPVCTRF Rabat, Royaume duMaroc Tel:(212) 37 23 14 Fax: (212) 37 29 75 44 Email:Ahilali0,MENARA.MA - - vii - Does the project depart from the CAS incontent or other significant respects? o Yes X N o Re$ PAD A.3 Does the project require any exceptions from Bankpolicies? Re$ PAD D.7 oYes X N o Have these beenapproved by Bank management? oYes X N o I s approval for any policy exception sought from the Board? oYes X N o Does the project include any critical risks rated"substantial" or "high"? X Y e s oNo GlobalEnvironmentalObjective(GEO): Re$ PAD B.2, TechnicalAnnex 3 Reduction o f the effects o fPersistent Organic Pollutants (POPS)on the Global Environment. Projectdevelopmentobjective: Re$ PAD B.2, TechnicalAnnex 3 ASP-PI : Selected African countries to eliminate inventoried publicly-held obsolete pesticide stockpiles and associated waste, and to implement measures to reduce and prevent future relatedrisks. Kingdom of Morocco:Assist the Kingdom o fMorocco to eliminate inventoried publicly-held- obsolete pesticide stockpiles and associated waste, and implement measures to reduce and prevent future relatedrisks. - V...l - l l ?rojectdescription[one-sentence summary of each component] Re$ PAD B.3.a, Technical Annex 4 The proposed Project i s part o f the World Bank's multi-country AfXca Stockpiles Programme (ASP-Pl), which has been endorsed by the GEF CEO on August 16, 2005 and by the World BankBoardon September 8,2005. The overallASP-PI includes: (a) country operations (ASP-P1 Component 1); (b) technical support to country projects (ASP-P1 Component 2); (c) cross-cutting activities incommunication andknowledge management (ASP-P1 Component 3); (d) program coordination (ASP-P1Component4). The Kingdom of Morocco project fits into Component 1o fthe overall ASP-P1, andwill support: (a) disposal o f obsolete pesticides and associatedwaste; (b) prevention of obsoletepesticides accumulation; (c) capacity building; and (d) project managementandcoordination. Which safeguardpolicies are triggered, ifany? Re$ PAD D.6, TechnicalAnnex 10 Environmental Assessment (OP 4.1) andPestManagement (OP 4.09) apply to ASP-P1 which has beendesignated a Category "A" Project. Significant, non-standard conditions, if any, for: Re$ PAD C.7 Boardpresentation:None Covenantsapplicableto projectimplementation: Explicit release o f Bank from liability for project activities in the event of accident or other event causingharmor injury. Conditionsfor disbursementfor disposal (a) Complete a Country Project-specific Environment and Social Assessment (CESA), including an Environmental Management Plan (EMP) to the satisfaction o f the Bank. Loadcredit effectiveness: None. - ix - A. STRATEGIC CONTEXT AND RATIONALE 1. Countryand Sector Issues 1. Over the past forty years, many countries of the continent o f Afiica have accumulated large quantities o fpesticides which have now become unfit for use or reformulation and are, therefore, obsolete. Although these chemicals are no longer effective for controlling pests, they remain potent chemical toxins and thus still need to be carefully stored and handled. The unwanted buildup o f such products has occurred due to inadequate stock management, non-distribution to farmers, bans on several pesticides, un-coordinated or inappropriate supply from donor agencies, unsuitable packaging and supplier incentive programs. The amount o f publicly-held-obsolete pesticides' currently stockpiled across the continent o f Afiica2, is estimated at 50,000 tons. These stocks will continue to present a threat to the environment until they are safely removed anddestroyed. 2. Most o f the countries inAfrica including the Kingdom o f Morocco lack adequate technical, institutional and financial capacity to develop the policy and regulatory conditions necessary to properly manage the cleanup o f contaminated wasteshites, together with the destruction o f obsolete stocks o f pesticides. They also lack the capacity and means to implement sound preventionpractices. 3. The Africa Stockpiles Programme - Project 1 (ASP-P1) follows the programmatic approach o f a horizontal Adaptable Program Loan (APL)3.The Global Environment Facility (GEF) endorsed the ASP-P1 on August 16, 2005. The Bank Board approved the ASP-P1 on September 8, 2005 for the first two Country Projects in the Programme, South Afiica and Tunisia. Other "follow-on" projects (Tanzania, Mali, Morocco, and later Ethiopia) o f the APL will be circulated to the GEF Secretariat for approval on a no-objection basis, and to the Board, 10 days before Regional Management final approval o f each grant4. 4. The Kingdom o f Morocco has been selected to benefit from the support o f the ASP-P1 because it meets the following agreed readiness criteria: (a) ratification o f the Stockholm and Basel Convention; (b) the Kingdom o f Morocco i s a priority country in terms o f readiness to address the danger o f obsolete pesticides; (c) the Kingdom o f Morocco has established a Project "Obsolete Pesticides" means products: (a) whose usage i s prohibited or severely restricted for environmental or health reasons; by applicable provisions o f the Basel Convention, the Stockholm Convention and the Rotterdam Convention, (the Conventions) andor national law consistent with the Conventions (please see Footnote 9 for full titles o f the Conventions); or (b) that have deteriorated as a result o f improper or prolonged storage and can neither be used in accordance with label specifications nor easily reformulated for use; or (c) that cannot be used for their intended purpose, and cannot be easily modified to accomplish such purpose or some other purpose. "Africa", for the purpose o f this document, is defined as the continent o f Africa. ASP-P1 follows the model o f the Multi-country HIV/AIDS Program for the Africa Region (MAP)and the Multi- country Statistical Capacity Building Program. Inaccordance with the usualAPL procedures, approvalofthe remaining Country Projects would beprovided at the Regional Vice President level inthe absence o f a request by at least three Executive Directors to have normal Boardpresentation. - 1 - Management Unit and completed an Operational Manual to implement the project; and (d) project financinghas been secured from the GEF. 5. The ASP-P1 will support the Government o f the Kingdom o f Morocco's commitments to meeting the objectives o f the Stockholm convention for eliminating persistent organic pollutants. The Project directly contributes to enhancing social and environmental sustainability and will contribute to safeguarding natural resources, including land and water conservation and reduce risks to human health. The Government o f the Kingdom o f Morocco has already initiated preparatory activities under the National ImplementationPlan (NIP) being conducted by United Nations Development Programme (UNDP). The preliminary inventory, conducted inpreparation for the ASP-Ply identified 700 tons o f obsolete stocks at approximately 225 sites. These stockpiles have accumulated largely for combating locust infestations, but have become obsolete since they were not used. 2. Rationale for Bank Involvement 6. The Bank, as GEF Implementing Agent, will support the ASP-P1 according to its comparative advantage. The rationale for Bank involvement, described in greater detail in Annex 2 is threefold: The Bank as a GEF Implementing Agency has the responsibility to implement activities that will contribute to the achievement o f GEF operational programs. By implementing ASP-Ply together with the FAO, the Bank will support the first, large scale, GEF-funded activity that aims to achieve the objectives o f the GEF Operational Program 14 (GEF OP14) for Reducing and Eliminating Releases o f POPs, and support the role o f GEF as the interim financing mechanism for the Stockholm Convention on POPs; The Bank has a significant global experience in managing trust funds that mobilize the resources o f several donors for a shared purpose. Such an experience is key to managing the Multi-Donor Trust Fund (MDTF) for ASP-P1 - in combination with funding from the GEF, Development Grant Facility (DGF), other trust funds, and bilateral donations; The Bank has a substantial and unique expertise inmanaging complex, multi-country and regional programs. It has also developed considerable experience in facilitating the dialogue between Governments, NGOs and the private sector. In Africa, this experience derives from implementing such complex operations as the River Blindness Program, the Multi-Country HIV/AIDS Program, the Nile Basin Initiative, andthe Greater Great Lakes Regional Strategy for Demobilization andReintegration. 7. Bank support to ASP-P1 is fully consistent with the implementation o f the Bank's Environment Strategy, the key pillars o f that strategy being to improve people's quality o f life, quality o f economic growth and quality o f regional and global commons. One o f the key objectives in "improving people's quality o f life" i s protecting environmental health, which is reflectedinASP-P1's approach. - 2 - 3. HigherLevel Objectivesto Which the ProjectContributes 8. ASP-P1 will contribute to national and global level objectives described in more detail in Annex 1. At the national level, ASP-P1 will contribute to the Kingdom o f Morocco national development strategy (especially in agriculture and rural development) in the areas o f public health, poverty alleviation, environmental protection and strengthening o f the agricultural sector. ASP-P1 will directly contribute to the GEO: Reduction o f effects o f POPs on the global environment. Specifically, ASP-P 1 will address: (a) improving the quality o f life in the poor communities, by reducing environmental health risks; (b) improving environmental protection; and (c) enhancing the capacity o f the agricultural sector to better manage crop pests. 9. ASP-P1 will also consolidate various approaches to obsolete pesticide cleanup, generate practical lessons from working in countries under different governance models and produce practical tools that will facilitate its replication inother countries andregions. 10. At the global level, ASP-P1 will contribute to the international efforts to eliminate persistent organic pollutants, improve management o f toxic chemicals and promote alternatives to pesticide usage that include IPM and Integrated Vector Management (IVM). ASP-P1 activities related to obsolete pesticide disposal will be a direct implementation o f the Stockholm Convention on POPs and the associated GEF Operational Program aiming to reduce the impact o f POPs on the global food chain, pollution o f transboundary waters, land and biodiversity. It will also contribute to the achievement o f the objectives o f other international agreements such as the Basel, Bamako, RotterdamandBiological Diversity Conventions.' 11. The ASP-P1 capacity building for pesticide management and disposal will enhance the overall capacity o f Morocco for managing other toxic chemicals andhazardous waste in general. Significantly, ASP-P1 will promote the global trend toward Integrated Pest Management (IPM) and utilization o f alternative pest control technologies. It will also contribute to the needed awareness o f the detrimental impacts that POPs and obsolete chemicals can have on the environment in developing countries and the global environment, and generate a body o f globally shared knowledge on effective and economically viable approaches to pesticide management anddisposal. The full titles of the Conventions to whichASP-P1 objectives contribute are as follows: Stockholm Convention on Persistent Organic Pollutants (2001); Basel Convention on the Control of TransboundaryMovements of Hazardous Wastes and their Disposal (1989); Bamako Convention on the Ban of the Import into Africa and the Control of Transboundary Movement and Managementof HazardousWastes within Africa (1991); Rotterdam Convention on the Prior Informed Consent Procedures for Certain Hazardous Chemicals and Pesticides in International Trade (1998); andConvention on BiologicalDiversity (1992). - 3 - B. PROJECTDESCRIPTION 1. FinancingInstrument 12. There i s an immediate and urgent need to implement a program to dispose o f obsolete pesticide stockpiles and associated waste from Afiica and to prevent their re-occurrence. As the PAD for ASP-P1 describes, the ASP will be implemented through a series o f individual projects within a 10-15 year programmatic approach, beginning with a four year project, called ASP-P1. This PAD describes the ASP-P1Morocco Project. 13. The primaryASP-P1 financing instrument i s a GEF grant o fUS$25.0 million which will be split between two principal implementing agencies: Bank (US$21.74 million) and FA0 (US$3.26 million) towards a total Project cost o f US$60 million to seven countries over a period o f four years. In addition, funds are being mobilized through a MDTF, other trust funds, and bilateral support. 14. The ASP follows the programmatic approach o f a horizontal Adaptable Program Loan (APL)6. ASP-P1 considers seven countries. South Africa and Tunisia projects have been approved by the BoardinSeptember 2005. 2. ProjectDevelopmentObjectiveand Key Indicators 15. The Development Objective o f the ASP-P1 Morocco Project supports the overall ASP-P1 objective which i s to eliminate inventoried publicly-held-obsolete pesticide stockpiles and associated waste, andimplement measures to reduce andprevent future related risks. 16. The ASP-P1 Morocco Project will implement various cleanup and site remediation measures to mitigate the impact o f publicly-held obsolete pesticides stocks threatening communities, ecosystems, andthe global environment. Inparallel, ASP-P 1Morocco Project will strengthen the elements o f a regulatory regime, management practices, and public awareness to prevent a recurrence ofpesticide accumulation inthe future. 17. The principal outputs o fASP-P1 Morocco Project will be twofold: (a) Through its cleanup activities, ASP-P1 Morocco Project will eliminate, as far as is practicable, the risks from obsolete pesticides to communities, natural resources and ecological systems inASP-P1 countries. At the same time, it will reduce the risks to the global environment from POPSand other persistent toxic pollutants; (b) Through its prevention activities, ASP-P1 Morocco Project will reduce future risks from obsolete pesticides by puttinginplace the key elements o f an effective pesticide management system, encouraging reduced reliance on pesticides through the promotion o f IPMand IVMpolicies. ASP follows the model of the Multi-country HIVIAIDS Program for the Africa Region (MAP) and the Multi- country Statistical Capacity Building Program. - 4 - 18. The ASP-P1 success in meeting its Development Objective, will be based on four indicators as summarized below (Annex 3 provides further details). The evaluation o f ASP-P1 Morocco Project will be based mainly on the three first indicators o f ASP-P1, Risk Reduction Improved Pesticide Management and Pesticide Disposal: Risk Reduction - based on quantitative risk assessment methodologies related to both health risks and environmental degradation, the Project will measure the percentage o f publicly-held stocks removed and quality o f ASP-P 1cleanup activities aiming to reduce pesticide stockpiles (Component 1); ImprovedPesticideManagement- basedon qualitative andquantitativeparameters, the Project will measure the adequacy o f the Government's strategies, including regulations, laws and institutional policies in bringing the management o f pesticides andtheir associatedwastes up to international standards (Component 1); Pesticide Disposal based on quantitative parameters, the Project will track the - amount o f publicly-held obsolete pesticide stockpiles that ASP-P 1will safeguard or destroy (e.g., repackaging into safe containers, incineration, and disposal o f contaminated containers) (Component 1); Service Delivery to ASP Countries The Project will measure the quality, quantity - and efficiency o f support services, such as technical assistance, knowledge management, communications, and implementation support, that the international ASP-P1technical assistance providers [initially FAO, World Wildlife Fund (WWF), Pesticide Action Network - Africa (PAN-Africa), and Pesticide Action Network- United Kingdom (PAN-UK)] deliver to the ASP-P1 countries (Components 2, 3 and 4)* 19. The ASP-P1 Morocco Project indicators are as follows: Inventory database o f Publicly-Held Obsolete Pesticides stocks inplace andbeing usedby the PMUand stakeholders; Completion o f a CESA and implementationo fthe measures contained therein; Inventoried Publicly-Held Obsolete Pesticides stocks disposed of, as a result o f the completion o f the Disposal Services contract(s) in accordance with national andinternational laws andregulations; Legal and regulatory flamework for pesticide management upgraded, including measures to strengthen compliance with the Conventions; The training program under Part D o f the Project i s implemented and the knowledge acquired is being used by PMUand stakeholders; and The PMUis hctional andits operation is satisfactory to the Bank. - 5 - 3. ProjectComponents 20. ASP-P1 has four components: (a) country operations; (b) technical support; (c) cross- cutting activities; and (d) project coordination. Each o f these and especially the details o f the ASP-P1 Morocco Project, which i s included under the Component "Country Operations", are described indetail inAnnex 4. The indicative costs and financing for ASP-P1 are laid out inthe following table. The costs for ASP-P1 Morocco Project are detailed inAnnex 5. Technical Support 4.3 1 7.18 0.41 15 Cross-CuttingActivities I 2.45 1 4.08 1 1.32 1 49 1 0O I O 0 I GEF Financingto ASP-PI =US$25.Om: WorldBank (US$21.74 million) FA0 (US$3.26 million). 21. The ASP-Plcomponents and its overall design are based on recognition that the existing level of information on the extent, geographic distribution and characteristics o f the obsolete pesticide stockpiles i s insufficient for implementing pesticide disposal and site remediation measures. The design, therefore, reflects the need to carry out in all Project countries, detailed pesticide inventories, selection o f disposal technologies and preparation o f country-specific environmental and social assessments. Only following the adequate completion o f these activities will the respective cleanup and disposal programs take place. ASP-PI Component1: Country Operations 22. This is the principal component o f the ASP-Ply encompassing a full range o f disposal, cleanup and prevention activities to achieve the Project objectives in the participating countries. It will include four sub-components: (a) cleanup and disposal; (b) prevention o f pesticide accumulation; (c) capacity building; and (d) ASP-P1 management and monitoring. The ASP-P1 Morocco Project includes the following components: Component A: Disposal of Obsolete Pesticides (Total: US2.51 million; GEF US$2.26 million) 23. Country Cleanup and Disposal activities will be based on a comprehensive and detailed inventory o f pesticide stockpiles and related contamination, determining the level o f risk to adjacent and wider communities or critical natural resources (such as water supplies). The 'African ~ ~ Development Bank (AfDB) will contribute US$lO.O million, which will be allocated to Country Operations. - 6 - cleanup will include the repackaging o f obsolete pesticides, `transport and destruction o f pesticides based on chemical analysis, needs assessment andtechnical capacity ComponentB: Preventionof ObsoletePesticidesAccumulation(TotalUS$0.78million; GEFUS$0.55 million) 24. Prevention Activities encompass strengthening o f pesticide management through improvement o f pesticide registration, licensing, enforcement o f import controls, stock management, waste management, and formulation of effective procurement strategies, as well as promotion o f alternatives to chemical pesticides through improvement o f pest control strategies with particular attention to IPM for agriculture and IVMfor health care. Prevention activities will also include the development o f awareness raising programs to inform the population o f potential environmental and health impact due to exposure to pesticides and the training o f pesticide distributors, users and farmers to encourage safe pesticide handlingand alternative pest control. The country's Stockholm Convention National Implementation Plan Coordinator will helpensure that ASP learns from andcomplies with the country's programto reduce or eliminate POPSinan environmentally safe manner. ComponentC: CapacityBuilding(TotalUS$0.27million; GEFUS$0.27million) 25. Capacity building activities in the ASP-P1 Morocco Project will include the implementation o f a training program and awareness raising campaigns. Environmental monitoring will also be supported through the provision o f equipment and staff training for effective pesticide andother chemical management practices. ComponentD: ProjectManagementandMonitoringandEvaluation(TotalUS$1.84 million; US$0.35 million) 26. Country Project Management, Monitoring and Evaluation (M&E) activities will include establishment o f a Project Management Unit (PMU) in Morocco. It will be the PMU's responsibility to implement the country level activities, solicit external technical support, monitor and evaluate Project activities and coordinate their implementationwith the GEF-funded National Implementation Plans (NIPS) for the Stockholm Convention and similar initiatives. Country level management will also include establishment o f a Steering Committee (SC) representing key stakeholders, such as NGOs and the private sector, and overseeing the work o f the respective PMUs. ASP-P1Component2: TechnicalSupport 27. This component will deliver to country Projects the highly technical and specialized expertise required for implementation, supervision and monitoring o f country level activities outlined under Component 1including: technical advice requested by the countries for the design and delivery of training; production o f technical guidelines for cleanup and prevention operations; assistance in managing technical aspects o f procurement and supervision o f specialized contractors; advice on linking countries with other specialized agencies and organizations; enhancement o f health and safety; assessment o f laboratory capacities; and - 7 - oversight o f M&E. The Kingdom o f Morocco has access to TA from the TSU and the CCAME. The technical support will include advice on alternative disposal options, targeted to specific country and site conditions. FA0 will be responsible for hosting a Technical Support Unit (TSU) to coordinate delivery o f technical services envisaged under this component and tap into expertise o f other ASP partners, e.g., UnitedNations Environment Programme (UNEP), World Health Organization (WHO), Base1ConventionRegional Centers, NGOs, andthe private sector. ASP-P1 Component3: Cross-CuttingActivities 28. This component will deliver knowledge management, awareness-raising, strategic studies and outreach services across the entire ASP-P1 to capture synergies and cost savings through a coordinated multi-country, multi-partner approach. The key sub-components will include outreach to promote ratification o f conventions relevant to project objectives, building NGOs capacity, knowledge management and communication, e.g., hosting the ASP website. The strategic studies component will include an evaluation o f alternative technologies for the disposal o f obsolete pesticides. In addition, these studies will serve to improve the understanding o f environmental health risks associated with the specific pesticides, and contribute to the prioritization and decision-making process within each country. WWF and PAN-UK will host the Cross-Cutting Activities Management Entity (CCAME) responsible for delivery o f support services under this component. ASP-P1 Component4: ProjectCoordination 29. This component will coordinate the implementation and monitoring o f the ASP-P1 among the various partners. Inaddition to the overall coordination, key activities include: developing and ensuring implementation o f a hd-raising strategy, acting as Secretariat to the Africa Stockpiles Programme Steering Committee (ASP-SC), maintaining awareness at the policy level about the Project, reporting to donors, preparing the bi-annual work plan and progress reports and financial reports, coordinating independent Project monitoring and coordinating the design o f follow-on projects. Initially, the Bank will host the ASP Project Coordination Unit (ASP- PCU). During the implementation phase o f ASP-PI the PCU will be transferred to an appropriate African organization. NEPAD has been identified as a possible candidate. 4. LessonsLearnedandReflectedinthe ProjectDesign 30. The Project design take into account lessons learned from a considerable body o f experience from (i)World Bank-supported obsolete pesticide stockpiles and waste cleanup interventions'; (ii) more than twelve years o f interventions against risks related to obsolete pesticides in Africa on the part o f FAO, PAN-UK, the private sector and other ASP partners. The project reflects lessons learned from programs under chemical conventions similar to the Stockholm Convention, the Bank's experience with regional programs and the Bank's Independent Evaluations Group (IEG) lessons on global partnerships. * The Bank has considerable experience inclean up of waste sites, such as sludge, mine tailing and uraniumclean up (e.g., Kyrgyzstan, Lithuania). However, the Bank has limited experience in the cleanup o f dispersed pesticide waste. - 8 - 31. Legal responsibility and custody of obsolete stocks: The project assumes that obsolete stocks are legally Government-owned untilthe disposal is completed. The Grant Agreement for the project states that the Bank will have no responsibility for ownership, custody or care o f the stocks at any moment during the inventory or disposal processes. Throughout the cleanup chain o f events, third parties (inparticular the disposal contractor) may have temporary custody. The ASP will require such thirdparties to carry adequate insurance to accommodate possiblemishap. 32. Country level ownership of the Project: The experience emphasizes, among others, the importance o f strong country ownership, effective pesticide management, the reliance on technical expertise in waste management in the private sector, and involvement/commitment o f pesticide companies, environmental andpublic health NGOs and other civil society participants. ASP has received a strong support from Governmental institutions and NGOs, which have actively participated in project preparation and workshops. ASP-P1 builds upon the existing initiatives which have taken place over the last 10 years in Africa to dispose o f obsolete pesticides. In order to scale up disposal and prevention activities, several African countries requested and supported the development o f a partnership to more rapidly address this issue ASP-P 1's design emphasizes country ownership not only through traditional co-financing requirements and public participation, but also through consolidating the crucial political and institutional support mobilized inthe process o fratification o fthe Stockholm Convention. 33. Prevention: Recognizing that effective pesticide management and judicious use o f pesticides are essential to preventingrisks associated with pesticide stockpiling, ASP-P1's design integrates substantial prevention and capacity building interventions at early stages o f the country operations. 34. Multi Donor Trust Fund (MDTF): The recommendations resulting from the OED analysis indicate that the provision o f sufficient grant resources is important to ensure program flexibility, and that donor funds achieve greatest efficacy when pooled. ASP-P1 has therefore established a MDTF, which potential donors are encouraged to contribute to. 35. Awareness: ASP-P 1also includes awareness-raising among the full range o f stakeholders inorderto provide aneffective pesticide management andpreventionat country level. 36. Monitoring and Evaluation: M&E functions are built into ASP-P1 both at the country andprogram levels, andcover not only the core cleanup and pesticidemanagement activities but also all technical support, cross-cutting and coordination services (see Annex 6 for more details). 37. Large-scale Regional Project: A flexible approach to the implementation o f the ASP-P1 was found to be essential. This is required inorder to enable additional partners to join the ASP partnership as they become available, provided that they subscribe to the partnership principles o f the ASP. Secondly, rather than trying to negotiate grant agreements with all countries prior to Bank Board approval, it was decided to conclude negotiations with countries demonstratinghigh readiness for implementation. The remaining countries will thenbe supported to meet conditions for negotiations post BankBoard approval following the programmatic approach o f a Horizontal APL. - 9 - 5. AlternativesConsideredandReasonsfor Rejection 38. Several alternatives were considered for the design o f ASP-P1: Support individual initiatives by donors in parallel - This alternative would yield some short-term point-source gains for the clean-up operations, but it would not provide any o f the economies o f scale, synergies and visibility that a regional program can offer. Furthermore, this model does not provide adequate sustainability o f any positive outcomes, since it lacks an integrated approach for the prevention o f future pesticide accumulation; Create a regional pesticide management agency - to centralize the clean-up and prevention operations for the entire continent. However, this alternative was rejected because ultimately it would not be cost-effective and does not reflect the need for country ownership. Furthermore, both clients and donors are reluctant to create new regionalbureaucracies; Launch a 10-15 year adaptable program loan - that could expand as additional funding becomes available and build on the lessons from previous phases. This alternative was initially considered as a basis for implementing the entire ASP operation, but it was considered preferable to start immediately with a limited set o f fully-funded countries in order to build up experience, tangible results and momentum, establish a working model and then scale up this experience in subsequent ASP activities. C. IMPLEMENTATION 1. InstitutionalandImplementationArrangements 39. ASP-P1 institutional and implementation arrangements rely on close cooperation among ASP partners, a participative approach involving all stakeholders, their comparative expertise in Afiica and their historic involvement in developing ASP. Each institutional entity will take responsibility for a key element o fprogram implementation. While it would be possible to house all elements under one agency, the program would lose the synergies and comparative advantages o f each specialized agency. 40. ASP-Steering Committee (ASP-SC) will review ASP progress once a year. It will be a forum to provide feedback and recommendations on the overall direction o f the Program. The ASP-SC will be supported by the ASP-PCU. The ASP-SC will include representatives from all the participating countries and the ASP core partners, including: NGOs, UNspecialized entities, regional organizations, and donor representatives andwill be open for future partners to join. 41. PMUs will be the principal implementers o f ASP-P1 through the individual country projects under Component 1. InMorocco, the PMU will be hosted by the Department o f Plant Protection, Technical Control and Fraud Repression (Direction de la Protection des Vigitaux, des ContrGles Technique et de la Rkpression des Fraudes - DPVCTRF) under the Ministry o f Agriculture, Rural Development and Fisheries (MinistBre de 1'Agriculture, du Dkveloppement - 10- Rural et des Peches Maritimes - MADRPM). The PMUwill be guided by a Steering Committee (SC). 42. TSUwill be a provider and coordinator o f technical expertise required for preparation and implementation o f country cleanup and prevention activities. It will be responsible for results o f Component 2 andbe hostedby FAO. It will coordinate technical services o f other partners, e.g., UNEP, WHO andthe Base1Convention Regional Centers. 43. CCAME will manage provision o f knowledge management, communications, awareness- raising and outreach activities across ASP. It will be responsible for the results o f Component 3 andhostedbyWWF andPAN-UK. 44. ASP-PCU will serve as the overall coordinator o f ASP-P1 implementation and provide a Secretariat function for the ASP Steering Committee (ASP-SC). It is anticipated that following the successful completion o f ASP-P1, or earlier, the ASP-PCU will be transferred to an African organization. NEPAD has been identified as a potential host. The ASP-PCU will be responsible for results o f Component 4. 45. ASP Unit: The Bank will manage the relevant trust funds and supervise the implementation o f activities funded through grant agreements for the seven countries, WWF, PAN-UK, and the ASP-PCU. The Bank will monitor the achievement o f the Project Development Objective (PDO) and ensure compliance with all fiduciary requirements as per grant agreements. The Bank will also supervise the DGF agreement with FAO. The Bank will not oversee the GEF grant agreement with FAO, as FA0 has direct access to GEF resources as a GEF Executing Agency with expanded opportunities under OP14 on POPS. Inorder to perform these functions the Bank will establish a small ASP Unit comprising o f a full time ASP Coordinator supported by Task Team Leaders (TTLs) ineach o f the seven countries responsible for routine day-to-day supervision o fthe relevant grant agreements. 46. All ASP-P1 Partnerswill follow a common set o f policies and procedures pertaining to fiduciary management, evaluation, safeguards and communications. These policies and procedures are established inthe implementation arrangements for each component and for each country operation. Annex 6 contains details about the institutional arrangements and ASP governance ingeneral. 47. Conflict of Interest: Two partners have received grants for both project preparation and for project implementation, namely FA0 and WWF. This approach has received policy clearance from the Bank's Legal Department. The Bank team is satisfied that the work performed inproject preparation by these entities was in fact performed in an objective manner, and that the tasks proposed for these entities during project implementation are necessary and reasonable and that they are suitable partners to perform those activities. - 11- 2. FinancingPartners 48. The financing partnership behind ASP-P1 and the formal and informal institutional partnership behind the ASP are a prominent aspect o f Project implementation. The financing partners will use different funding arrangements. 49. The ASP-P1 Morocco Project will be funded as follows: (a) GEF, ASP-Pl's largest contributor with US$4.0 million of funding will channel fundingthrough the Bank; (b) The Government o f the Kingdom o f Morocco has allocated US$1.98 million as co- financing to the ASP-P1 Morocco Project; (c) The Bank (Development Grant Facility) - will provide funding to support civil society-related activities via the PAN-UK, WWF, NEPADand FAO; (d) GEF will channel funding through FA0 for technical support to the Government o f the Kingdom o f Morocco. 50. GEF and country contributions costs for the ASP-P1 Morocco Project are detailed in Annex 5 inthis PAD. 3. MonitoringandEvaluationof Outcomes/Results 51. Monitoring o f Project activities and evaluation o f their results inASP-P1 will serve a dual function. First, it will facilitate tracking o f progress toward the Project objectives. Second, it will facilitate learning and generation of knowledge necessary for the preparation of follow-on projects and the further implementation o f ASP-P1. Independent monitoring o f disposal activities will be undertaken at the country level. Evaluation o f the global units TSU, CCAME andASP-PCU will be conducted by an Independent Monitor. 52. Overall ASP-P1 monitoring indicators are described in section B2 and Annex 3. They reflect the Project focus on risk reduction from publicly-held obsolete pesticide stocks and contaminated sites. Data will come from two main sources: firstly, it will derive from individual country-level operations using standardized Project-wide methodologies for data collection and quality assurance. Inventories will provide the baseline data and set the detailed program o f disposal operations for each o f the countries. M&E for disposal operations is straight forward as progress o f project implementation will be quantified through these pesticide inventories. The responsibility for data collection for Component 1will rest with PMU with assistance from the TSU. Secondly, for Components 2, 3 and 4, data will come from standardized monitoring and reporting by the units providing support services - TSU, CCAME and ASP-PCU, respectively. Overall data synthesis will be consolidated by the ASP-PCU and reported to the ASP-SC for dissemination and review. The Bank will monitor the implementation of the Grant Agreements through routine supervision missions andreview o fM&Edata. - 12- 4. SustainabilityandReplicability 53. A key factor to Project sustainability is the prevention o f a re-emergence o f obsolete pesticide stockpiles at the conclusion o f Project implementation. The inventory and clean-up o f the existing stockpiles will do little to reduce the obsolete pesticide risks inthe long term unless the ASP supports elements o f effective pesticide management. The design o fASP-P1, therefore, integrates substantial activities on pesticide management and the prevention o f their re- accumulation. These activities focus on four areas: (a) the general regulatory and policy reform (pesticide registration, import controls, licensing, standards, regulations, procurement strategies and stock management, inter- sectoral cooperation, enforcement andothers); (b) the promotion o f alternative pest control strategies, such as IPM and IVM through training, awareness raising andresearch; (c) an increase in general public awareness o f environmental health risks, and public disclosure o f pesticide issues and training o f pesticide distributors, users, agricultural extension staff and others, as well as an increase in the capacity o f Governments to safely and effectively manage pesticides andother chemicals; and (d) promoting the development andinvolvement o f local NGOsinpesticide safety, health risks andother environmental issues. 54. The combination o f adequate institutional and regulatory capabilities, increased public awareness and understanding, and active and informed NGOs is meant to ensure the long term sustainability o f the ASP reforms. 55. Replicability:The ASP-P1 has been designed to include replication andthe preparation o f follow-on projects. The next proposed project called ASP-P2 will be designed during implementation o fASP-P1. 5. CriticalRisks andPossibleControversialAspects 56. While the clean-up and disposal o f obsolete pesticides is routinely undertaken safely, this project will be conducting removal operations in locations that are often dispersed, remote and present unique logistical challenges. Project implementation has been designed to operate through a partnership, which builds on the comparative advantages and experience o f several key agencies, but successfully managing the partnership adds a fkrther degree o f complexity to the Project. The ASP-P1 is therefore rated "substantial risk". The table below summarizes the specific risks and describes the appropriate mitigation measures which have been adopted to minimize their impact: - 13- RiskRating with Mitigation To ProjectDevelopment/GEO S Identify and quantify all publicly-held obsolete pesticides ineachcountry at start- UP. Incorporate international standards and safeguards into the implementationo f all the The seven countries participating clean-up andremoval operations. inASP-P1 failto substantially Include substantial capacity building reduce the threat posedby obsolete activities and technical support. pesticides due to pesticides Provide flexibility inproject implementation M remainingon site or inadequate to accommodate changing circumstances. clean-up and disposal operations. Ifoneor moreofthe countryprojects arenot fulfilling the programobjectives, ASP-P1 may accelerate the implementationo f ASP- P2 countries. To IntermediateOutcomesor ComponentOutcomes S Providing substantial support on safeguard issues. Component 1: Country clean-up Continuous technical support to the country and disposal operations fail to meet projects fi-om the TSU and international the full extent o f country requirements for various reasons, experts to ensure accuracy o f the inventory. including: BuildingGovernment implementation capacity and providing mechanisms for Failure to meet adequate close collaboration. safeguard requirements. EngagingNGO's directly inproject Inventory i s inaccurate. implementation, especially inthe monitoring Lack o f Government o f clean-up and removal activities. S implementationcapacity Develop an effective public-disclosure and/or support. strategy. Lack o fpublic support or Undertaking detailed pesticide inventories to oppositionbyNGOs. identify the scale of the pesticides problem Inadequateresources due to and continuously seeking additional support the scale o f the pesticide and funding. problem. Ensuringgood coordination, collaboration The ASP partnership breaks and information exchange. Annual project down. performance reviews will be conducted to ensure the projectremains on track andthat issues are resolvedpromptly andjointly. Component 2: TSU becomes The TSUhas been designed based on the werwhelmed by the demand for currently anticipated demand for services, but M technical support services. the structure and resources will be reviewed annually. -14- RiskMitigationMeasures Component 3: CCAME i s unable The CCAME will fully engage NGOsthrough to assure NGOcommunity of the appropriate communications. Also, the soundness of project component activities have been dividedbetween S implementation, especially WWF, PAN-UK andPAN-Africa to ensure disposal. adequatecoverage at all levels. Component 4: Project The project coordinationfunction has been coordinationbecomes ineffective developed inclose collaborationwith the due to inadequate cooperation partners and i s designedto foster and maintain a M among the ASP partners. healthy and active ASP partnership. I To the Overall Success of the Project S Projectimplementationwill be carried out throughPMUswith financial and in-kind Governments may reduce the contributions from each Government, which will priority of the obsolete pesticides ensure Government buy-inthroughout the problem and may continue to program. Parallelefforts to strengthen policies, import and use cheap and toxic regulations and enforcement combinedwith S pesticides, (especially in training inIPMtechniques will also improve the emergencies, such as locust success of the preventioncampaigns. outbreaks). Furthermore, close dialogue with donors and cooperation withthe pesticide industrywill lead to greater transparency and responsibility. The ASP-P1 is already fully-funded. The ASP i s a 10-15 year program, so successful Donors may not devote sufficient implementationof the initial ASP-P 1project resourcesto resolvingthe problem, will encourage that GEF and other donors will M which continues to worsen. continue to finance the subsequent operations fi and other donors are expectedto join the partnership (several have already indicatedtheir interest inparticipating). Ensuringthat the environmental and social There i s reputationalrisk for the safeguards are rigorously enforced. World Bank, GEF and the ASP donors/partners, especially inthe Ensuringthat emergency actionplansare in case of accident or the possibility place for eachcountry. of under-deliverydue to project S complexity and/or cost overruns. Careklly managing the sharedrelationships between Governments, public agencies and the Incaseofaccident Bank donors private sector will reduce the risko f accidents may reduce support for the ASP. and ensure that any issues arising are resolved collectively. - 15 - M&E functions will identify specific risks as they arise. Highvisibility and disclosure of ASP activities will bemaintainedthrough the coordinated involvement o f all the partners and Public opposition to the project's stakeholdersto ensure that methodologies are disposal options may delay satisfactorily explained andthat the overall progress andresult inpesticides projectbenefits remain clear and are adequately M continuing to be stockpiled. disseminated. The environmental risks are principally related to the clean-up, transport and disposal operations ineachcountry. However, the projectdesign Environmentalrisks - ASP-P1has draws on a wealth o f experience from existing a Safeguard `Category A' rating projects inthe region (e.g., Ethiopia) to define due to the toxic nature ofthe the methodologies to beusedand the steps to be S obsolete pesticides beingremoved. taken to ensurethat impacts are properly mitigatedand will fully incorporate the latest and strictest standards indealingwith and transporting toxic and hazardouswastes. OverallRiskRating S =High S =Substantial M=Moderate 6. Loadcredit ConditionsandCovenants 57. The GEF Grant Agreements will also contain a statement that the Bank and the Recipient agree that at no point during the Project will the Bank be responsible for the execution o f the Project activities, nor will the Bank have any legal custody or responsibility for the pesticide stocks inventories which are to be disposed o f during the course o f the Project. This would ordinarily go without saying, but this extra precaution i s perceived as desirable in light o f the small risk o f a disposal contractor negligently disposing o f stocks and that negligence causing harmto personsor property or damage to the environment. 7. Conditionsfor Disbursementfor Disposal 58. Complete a Country Project-specific Environment and Social Assessment (CESA), including an Environmental Management Plan(EMP) to the satisfaction of the Bank. - 16- D. APPRAISAL SUMMARY 1. EconomicandFinancialAnalyses 59. ASP-P1 will essentially perform a public good in reducing the risk o f contaminating the environment and therefore does not lend itselfwell to typical economic or financial analysis. In theory, the Project could be examined using cost-benefit analysis. However, the lack o f reliable baseline data and the controversial aspects related to the valuation o f human life make such an analysis impractical. It i s expected that the benefits from reducing damage to the environment and to human health from pesticides will far exceed the costs associated with implementing ASP-P1. The Project will strive for maximum cost-effectiveness in all o f its interventions and it will use risk reductionas the criterion to prioritize amongthem ifnecessary. 60. For GEF purposes, the preparation o f the Project has included an incremental cost analysis for ASP-P1. This analysis (see Annex 9) provides a baseline and the incremental cost o f achieving global benefits to address the issue o f obsolete pesticides inthe seven targeted African countries. 2. Technical 61. The project has prepared a Generic OM which spells out the technical, procurement, Financial Management (FM), M&E, and Safeguard requirements o f ASP as well as the institutional arrangements. The Kingdom o f Morocco prepared its own country OM using the Generic O M as a template. In order to design and implement the most appropriate disposal strategies at the country level, the detailed technical options will be prepared during Project implementation once updated pesticide stockpile inventories have been completed. Inprinciple, the technical design will be guided by a preference for cost-effective practices and compliance with international health, safety, and emission standards. The technologies selected for disposing o f the stockpiles and wastes will be required to meet both the Stockholm Convention Best Available Techniques/Best Environmental Practice (BAT/BEP) guidelines, and the appropriate Basel Convention and Stockholm Convention Technical Guidelines for Environmentally Sound Management. 62. To identify standards, the Project will refer to and follow the recommendations and minimum standards described inthe International Code o f Conduct on the Distribution andUse o f Pesticides (FAO, 2003), in the Stockholm Convention on persistent organic pollutants (dioxins and furans) and those related to the Basel Convention for Control o f Transboundary Movement o f Hazardous Waste, the International Maritime Dangerous Goods Code, and the Rotterdam Convention for Prior Informed Consent. The ASP-P1 will conduct a rigorous analysis o f all available disposal technology schemes according to international standards for the industry, including additional criteria such as cost, safety, emissions, risks, etc. Inpractice, and at least in the early stage o f the project, this is expected to result inASP-PI'S obsolete pesticide stocks and associated wastes being safeguarded and shipped overseas to be incinerated at high temperature in order to meet the above-mentioned requirements. Alternative disposal technologies will be identified for possible use at a later stage (see Annex 1, Section 2 for more details). - 17- 3. Fiduciary Financial Management 63. A financial management assessment was conducted for the Kingdom o f Morocco in the executing agencies and was found satisfactory to the Bank. The Project risk from a FM perspective i s considered as "moderate". The main risks identified consist: (a) at country level, inthe delays incommitments andpayments and the additional processing time to reimbursethe project expenditures pre-financed by the budget, that may have a possible impact on disbursement; and (b) at project level, in the insufficient human resource capacity and the potential delays in reporting and monitoring project transactions from the two executing agencies. The measures to mitigate these risks are described in Annex 7 and mainly consist o f (a) the definition o f reporting procedures between the two executing agencies, the Ministry o f Finance and PMU and (b) staffing arrangement in the PMU with clear TORSand training session. The summary o f the FMassessmenti s integrated inthe Kingdom o f Morocco Appraisal Report, while the detailedFMassessment i s located inthe Project File. 64. To ensure acceptable accounting, financial reporting and audit standards, the Kingdom o f Morocco will maintain separate accounts for project h d s and carry out annual audits in compliance with internationally acceptable annual standards. FM and disbursement arrangements for the project (including financial reporting andFMR format) are described inthe Morocco OM and will be further detailed by the FM consultant during its mission to the PMU. It specifies the financial reporting format so that the ASP-PCU can consolidate all financial reports from country projects and global components. The following areas will be uniform for consistency and consolidation purposes o f the ASP: (i) chart-of-accounts will be the same for all countries; (ii)the project financial year will be the calendar year (January-December) for all; (iii) the FM Report (FMR) reporting period will be uniform; and (iv) audit arrangements will be similar for all countries. Annexes 7 and 8 discuss the specifics of the FM and procurement arrangements. Procurement Arrangements 65. The primary responsibility for overseeing the implementation o f procurement procedures will rest with the staffo fthe PMU. The Procurement CapacityAssessments o fthe implementing agencies were carried out. A Procurement Plan for the first 18 months has been developed by the Kingdom o f Morocco andis attached inAnnex 8. Inorder to M h e r strengthen procurement, the following actions were proposed: (a) a Project Launch Workshop is planned as part o f the Project implementation and capacity buildinginitiatives, including procurement; (b) an experienced consultant will be recruited at the P M U to coordinate, supervise and assist implementing agencies interms o fprocurement; (c) an OM with procurement implementation guidelines, specific to the country, will be prepared and adopted; - 18- (d) monitoring o f the procurement activities by the Bank through its country office procurement staff; and (e) periodic ex-post review by the Bank o f contracts andpurchases. 4. Social 66. ASP-P1 will deliver considerable social benefits by reducing risks to people from existing pesticide stockpiles and implementing measures to prevent recurrence o f pesticide stock accumulation in the future. Due to the correlation between health and environmental risks and poverty, the delivery o f benefits will likely be progressive, affecting the population at large and the poor inparticular. Given the low level o f awareness o f the general population with regard to the consequences o f exposure to contaminated sites and goods, their active participation and collaboration with the Project to cany out its objectives might be slow. However, the highly participatory modus operandi, started at an early stage o f Project preparation and expected to continue during Project implementation, is expected to help mitigate this problem. Other supportive measures have been plannedto sensitize the general population to this issue. They include awareness campaigns and training for pesticide distributors and users to help raise the level o f awareness and encourage safe pesticide handlingand alternative pest control. 5. Environment 67. ASP-P 1i s essentially an extensive cleanup and contamination-preventionoperation which will bring substantial environmental health benefits, both locally and globally, by removing obsolete pesticide stockpiles and (in exceptional cases) remediating contaminated sites. ASP-P1 does, however, carry some short-term high environmental risks, specifically as related to the removal and transportation o f obsolete pesticides and contaminated materials. These risks are discussed in greater detail in Annex 10 as part o f a thorough consideration o f the safeguards issues. During project implementation, a Morocco Project-specific Environment and Social Assessment (CESA) including the EMPwill be prepared by independent consultants as specified inthe OM. Detailed inventories, site specific information including detailed digital photos and precise location coordinates (GPS) o f obsolete stocks and contaminated sites will need to be taken for CESA preparation. The CESA will be completed once the obsolete pesticide stockpile inventories and site characterizations in the Kingdom o f Morocco have been completed. Disposal andcleanup activities will begin after successful completion o fthe CESA. - 19- 6. Safeguard Policies Safeguard Policies Triggered by the Project Yes No Environmental Assessment (OP/BP/GP 4.01) [XI [I Natural Habitats (OP/BP 4.04) [I [XI PestManagement(OP 4.09) [XI [I CulturalProperty (OPN 11.03, being revised as OP 4.11) [I [XI InvoluntaryResettlement (OP/BP 4.12) [I [XI Indigenous Peoples (OD 4.20, being revisedas OP 4.10) [I [XI Forests (OP/BP 4.36) [I [XI Safety o fDams (OP/BP 4.37) [I [XI Projects inDisputedAreas (OP/BP/GP 7.60)9 [I [XI Projects on International Waterways (OP/BP/GP 7.50) [I [XI 68. The environment category A rating of the ASP-P1 triggers Operational Policies (OP) 4.01 on EA and 4.09 on Pest Management. The key safeguard issues are associated with potential environmental and social impacts from dealing with highly toxic chemicals and remediation o f contaminated sites. 69. The ASP environmental and social impacts were assessed in a Framework Environmental Assessment and their mitigation measures were outlined in an Environmental and Social Management Framework. The Environmental and Social Assessment Synthesis Report was prepared based on these documents and will serve as guidance for the preparation of the respective CESA. The Environmental and Social Assessment Synthesis Report was disclosed prior to appraisal in the Kingdom o f Morocco inMarch2004 and in the InfoShop on March 17, 2004. The Project Integrated Safeguards Data Sheet (ISDS) was disclosed on October 26,2005. The Environmental and Social Assessment Summary Report was disclosed to the Board on October 28, 2004. A binding covenant inthe Project legal document will be made, stating that the Kingdom of Morocco will prepare a CESA early in Project implementation. Annex 10 discusses more specifically how ASP-P1will ensure compliance with the safeguardpolicies. 70. Involuntary Resettlement (OP/BP 4.12) is not triggered at this stage. Given the multi- country nature of the ASP-P1 Project (seven countries), it is not feasible to prepare an umbrella framework for Project countries, due to their dissimilar legislation and policies related to land acquisition and displacement. Similarly, it i s not practical and realistic to prepare a separate framework for each country, especially when there i s no confirmed evidence that existing pesticide sites/storages will result in involuntary displacement or total or partial loss of livelihood. 71. Natural Habitats (OP/BP 4.04): During project implementation, if a stock o f obsolete pesticides, pesticide wastes or a contaminated site happen to be located in the proximity o f a critical natural habitat(s), then such a situation would trigger OP 4.04 and would require that the EA process(OP 4.01) would identify suchhabitats within aproposedproject's area of influence 9 By supportingthe proposedproject, the Bankdoes notintendto prejudicethe final determinationofthe parties'claims onthe disputedareas. - 20 - and will take the necessary measures to avoid or minimize damage to natural habitats to the extent feasible. 7. PolicyExceptionsandReadiness 72. PolicyException: ASP-P1 requires no Bankpolicy exceptions. Readiness Criteria: Fiduciary The Kingdomof Morocco indicates highlevels o f compliance withFM requirements. A Procurement plan has beenprepared. I ProjectStaffing I PMU staff identified. I The Environmental and Social Assessment Synthesis Report disclosed in DisclosureRequirements the Kingdomo fMorocco and inthe BankInfoShop as o f March 17, 2004. Monitoringand Evaluation M&E indicators havebeenpreparedandincorporatedinto the project design and implementationarrangements. Co-FinancingAgreements Signed Co-financing arrangementsconfirmed and the fundingsecured. -21 - ANNEXES ANNEX 1: AFRICA STOCKPILESPROGRAMME BACKGROUND Background 1. ASP-P1 will be the first in a series o f projects to comprise the ASP. The envisaged 10-15 year program has been conceived anddesigned through a partnership composed o f seven African countries (Ethiopia, Mali, Morocco, Nigeria, South Africa, Tanzania and Tunisia), NGOs (e.g., WWF, PAN-UK and PAN-Africa), FAO, UNEP, WHO, and other international organizations including the AfDB, the African Union, the NEPAD Secretariat, the Secretariat o f the Base1 Convention, the Bank, andthe private sector. 2. ASP has been designed to address the issue o f an estimated 50,000 tons o f obsolete pesticides that are leaking into the environment, contaminating soil, water, air and food sources. These hazardous chemicals are an environmental health threat to the continent and often to poor communities who lack safe water supplies and who suffer from unsafe working conditions. Obsolete pesticide stockpiles exist in virtually all o f the 53 countries of Africa. ASP focuses on a specific sub-set o f obsolete pesticides to be removed. Many o f these pesticides include Persistent Organic Pollutants (POPS)'~. The stockpiles include varying proportions o f POPs, rangingfrom small to substantial percentages. Once mixed, however, the entire stockpiles must be considered POPS-contaminated, posing correspondingly high levels o f threat and requiring appropriately careful management and disposal. Stockpiles o f obsolete pesticides are often in a severely deteriorated condition, poorly stored and located close to habitation or water supplies, and thus represent a serious risk to humanhealth, ground and surface water, land use, and the environment. They pose the most serious longterm danger to humanhealth andthe environment because of their mobility, toxicity, bio-accumulation potential, and persistence. Obsolete pesticides are generally a mixture o f different pesticides, some o f which are POPs, and fall under the Stockholm Convention on POPs to which all seven participating ASP-P1 countries are parties. 3. The impact i s often greatest on the poor. Abandoned pesticide stockpiles and dumps are often located inpoorer communities where people scavenge for "recyclables" with no awareness o f the dangers involved. Estimates o f annual pesticide poisonings range in the millions and although reliable data is scarce, this has undoubtedly led to thousands o f deaths, diseases, birth defects and disabilities inAfrica alone. 4. The continuing accretion o f obsolete pesticide stockpiles and lack o f remediation combine to make the problems acute. Nevertheless, obsolete chemicals have generally not been considered a pressing development issue. The problem has not typically been identified in Country Assistance Strategies (CASs), and none o f the National Environmental Action Plans 10POPs are chemical substances that persist inthe environment, bioaccumulate through the food chain, and pose a risk of causing adverse effects to human health and the environment. POPs based pesticides include: Aldrin, Dieldrin, Endrin,Chlordane, Heptachlor, DDT,Mirex, Hexachlorobenzene andToxaphene. - 22 - prepared in Africa during the 1990s dealt with the problem. Several development agencies or donors such as the Food and Agriculture Organization (FAO), Gesellschaft f i r Technische Zusammenarbeit (GTZ), Danish International Development Agency (DANIDA), United States Agency for International Development (USAID), Canadian International Development Agency (CIDA), Belgium, Finland, Japan, and the Netherlands have been active in starting the cleanup and disposal o f obsolete pesticides, but the costs are very high and resources have been extremely limited. Understandably, both recipient countries and donor agencies are often reluctant to divert funds allocated to poverty alleviation, food security or other areas o f intervention for this concern. A strategic programmatic approach for the African continent, combining activities and efforts from the international community, as well as the provision o f additional funds dedicated specifically to pesticidekazardous waste management and safe disposal, is therefore urgently needed. 5. Efforts have been made inrecent years to improve control over pesticides. Many African countries have ratified international agreements, developed regulations, moved away from centralized purchasing systems, imposed controls for illegal dumping o f hazardous wastes, imposed tighter border controls and developed Integrated Pest Management (IPM) programs to reduce reliance on pesticides. However, the recent outbreaks o f locusts inWest Africa indicate the extent to which many countries still require vast amounts o f pesticides at short notice and lack the capacity to adequately dispose o f unused pesticides after such operations. Inaddition, in response to the increasing demand by countries importing agriculture products that pesticides should be well-managed, African countries need to increase efforts to prevent misuse and overuse o f pesticides. 6. In1994,FA0established a program onprevention anddisposal ofobsolete pesticides. This program provides guidance and help to developing countries to design and implement projects and to produce inventories o f obsolete pesticides stocks. The experience gained and information collected by FA0 and CropLife International (CLI - the global federation o f the plant science industry) have been o f critical importance in setting up the Africa Stockpiles Programme (ASP) - which combines experience and resources from many agencies and donors inthe common goal of riddingthe continent of obsolete pesticides. The partnership comprises Non-Governmental Organizations (NGOs), United Nations (UN) specialized entities and other international organizations and the private sector. In order to remove all the estimated obsolete pesticide stockpiles on the continent o f Africa (50,000 tons), the ASP is expected to require funding o f US$200-250 million" over a period o f 10-15 years. (Please refer to Annex 1 for a detailed description o f the long-term goals o f the ASP continent-wide partnership and a full listingo fthe ASP partnership members). 7. The Bank was invited to join the ASP partnership in 2001 because o f its experience in managing complex regional projects and inorder to leadthe program coordination, spearhead the fundraising efforts and develop the specific country-level projects. Since then, the Bank has played a key role in building a strong and cohesive partnership, inviting additional donors and partners to add their resources and skills, securing US$60 million in funding (with nearly half o f this amount coming from the Global Environment Facility (GEF), and developing the first I'This figure i s based on current estimates o f obsolete pesticides on the continent; however actual costs could rise significantly ifaddition stocks are discovered during country level inventories. - 23 - Project operations (ASP-Pl). ASP-P1 will focus on disposal and prevention activities in seven high-priority African countries: Ethiopia, Mali, Morocco, Nigeria, South Africa, Tanzania, and Tunisia. These countries were selected because they both have significant stockpile problems andhave indicateda readiness to address them. All seven countries have ratified the Stockholm Convention on P0Psl2 and the Basel Convention on Transboundary Shipment o f Hazardous Waste. Current estimates indicate that there are about 5,000 tons o f obsolete pesticides distributed throughmore than 1,400 sites inthe seven countries. Duringimplementation o f ASP- P1 it is expected that follow-on projects in eight additional countries would be prepared from among the following priority countries: Benin, Botswana, Cameroon, C8te d'Ivoire, Egypt, Ghana, Liberia, Lesotho, Mozambique, Namibia, Niger, Rwanda, Senegal, Sierra Leone, Sudan and Swaziland (see Annex 4). 8. Many African countries lack adequate technical, institutional and financial capacity to deal with these pesticides. This requires the implementation o f regulations, enforcement and resources to manage the cleanup o f contaminated wasteshites and the destruction o f obsolete pesticide stocks in an environmentally sound manner. They also suffer from weak import controls, inadequate storage and stock management and a lack o f training and education on appropriate pesticide use, all o f which contribute to the widespread misuse o f pesticides. Lastly, there is also a lack o fpublic awareness o f the environmental health risks posed byPOPs. 9. The criteria for selecting countries to participate inASP-P1 include: (i) ratification o f the Stockholm Convention, which is a condition for accessing GEF financing; (ii) ratification o f the Basel Convention for shipment o f waste and, preferably, the ratification o f the Rotterdam Convention; (iii) readiness to implement acceptable removal and prevention measures; and (iv) the availability o f adequate financing. MainSector Issuesto be addressedby ASP 10. Obsolete Pesticide Disposal and Management: ASP will support the identification, removal, transportation and safe disposal o f obsolete pesticides and associated materials. There are currently no suitable facilities in Africa for the environmentally sound destruction o f pesticides that meet the requirements o f the Basel Convention and the Stockholm Convention. Hence, ASP will necessarily facilitate the disposal o f the waste at dedicated facilities outside Africa. The Project will also assess alternative destruction technologies which may be applied throughout the African continent inthe hture. 11. Technical Options: Several technology options are available for the disposal o f hazardous wastes, such as obsolete pesticides. However, the number o f technology options which are tried and tested and considered safe at all levels, including environmentally and economically, are relatively few. The ASP has therefore committed to choosing the disposal contractors for its first project through a call for qualified firms based on the highest international standards for disposal o f hazardous wastes. These standards will encompass a varied set o f factors ensuring, inter alia, experience in the developing country context; meeting international ~ ~ ~ ~ l2The Stockholm Convention is a global treaty to protect human health and the environment from POPs. In implementing the Convention, governments will take measures to eliminate or reduce the release of POPs into the environment. - 24 - emissions and other environmental standards; and a proven track record in safe handling and transport o f hazardous waste in compliance with international conventions. The cost- effectiveness o f the offers will also be considered provided that they are within the parameters established by the standards for disposal. A list o f qualified firms will then be established and tenders will be offered among this pre-qualified group. By utilizing this "standards" approach, the ASP allows for the broadest range o f disposal options to be considered (e.g., plasma arc, high temperature incineration, etc.) rather than pre-judging the available market, while ensuring that environmental safeguards are filly met. Inaddition, the ASP will fimd a study (managed by the CCAME) inthe first phase o f the program to analyze the range o f disposal options available to ensure the broadest selection o f acceptable technologies are taken into account in subsequent phases o fthe program. 12. Contaminated Soils: The highrisks for humanhealth (e.g., cancers and birth defects) and the environment (e.g., contamination o f water tables and streams) resulting from soils contaminated with pesticides, are well identified in some countries, e.g., inMali. ASP-P1 will not commit to extensive remediation o f pesticide-contaminated soils, other than in exceptionally high-risk situations due to the high costs and large quantities involved. However, the final decision in all cases would be site-specific and would depend inpart on a clear understanding o f site-specific risk assessments, the technological options available (e.g., containment or in-situ treatment), their feasibility andrelative costs. Preventionof accumulationof new stockpilesof obsoletepesticides 13. Pesticide Regulations: Improved pesticide regulations to ensure effective use and to facilitate international trade in agricultural produce are essential. Many African countries have regulations in place, but these are often either inadequate or not enforced. Furthermore, regulations may be in place for agricultural purposes but not for public health (e.g., mosquito control campaigns and pesticides for domestic use). ASP will help countries to review and improve their regulatory systems, including ensuring their compliance with international conventions. 14. Pesticide Procurement, Production and Imports: Inadequate procurement strategies on the part o f Governments, national agencies, donor agencies, development organizations, the private sector and other organizations are the principal cause o f stockpiles o f obsolete pesticides, often resulting in oversupply, stocking o f unsuitable products, late delivery o f products, and supply in inappropriate containers. ASP will utilize stakeholder committees to identify ways o f eliminating supply-driven pesticide procurement. Inaddition, the active involvement o f donors andthe pesticideindustryinthe ASP partnership will also help to prevent oversupply. 15. Pesticide Supply, Distribution and Use: Inadequate management o f various components o f the pesticide life cycle has contributed to the creation o f obsolete stocks. There is a need to improve management o f pesticides from the point o f supply to the point o f use and beyond, in terms o f empty container and unused pesticide disposal. The ASP will provide Governments with comprehensive guidance on strategies for the appropriate management o f pesticide distribution, including information on international laws andbest practice. - 25 - 16. Pest Management in Crop Production: Heavy reliance on external inputs for crop production is a contributing factor to the creation o f obsolete pesticide stocks. ASP will collaborate and coordinate its activities with the numerous agencies (e.g., FA0 IPM Facility, Consultative Group on International Agricultural Research (CGIAR), International Centre o f Insect Physiology and Ecology) promoting the development and implementation o f IPM strategies that reduce reliance on external inputs such as pesticides. 17. Control of Migratory Pests: A major source o f pesticide accumulation has been through emergency donations for the control o f locust invasions and the inappropriate management o f such stocks. ASP will help bring together donors and specialized international agencies (e.g., FA0 Locust Program) in order to address this problem. It will also coordinate activities with the current Africa Emergency Locust Project. Coordination between the two projects will initially be most prevalent inMali (the only country currently participating in both projects). The Africa Emergency Locust Project will also contribute to the regional knowledge as well as to a key cross-cutting study under CCAME envisioned for ASP-P1. 18. Pest Management in Animal Health: Inthe second part o f the 20thcentury, livestock owners inEast and South Africa relied on "dipping" to control tick-borne diseases. This practice i s slowly being replaced by non-dipping technologies, but numerous contaminated sites are found throughout rural Africa. Cleanup o f these sites is not part o f ASP-P1. 19. Pest Management in Public Health, Structural and IndustrialUses: Pesticides are also used inpublic health (e.g., DDT for malaria vector control), for the protection o f buildings, roads, power lines and other structures, and inindustry for the protection of materials from pest attack. ASP will involve bodies responsible for the regulation, supply and use o f pesticides as stakeholders innational forums addressing obsolete pesticides. 20. Stakeholder Involvement: ASP aims to ensure that stakeholders are appropriately included in all relevant processes related to ASP supported activities. To that end, one o f the criteria which countries must meet in order to engage with the ASP i s demonstrable stakeholder involvement andthe creation o f stakeholder forums for the guidance o f ASP country projects. - 26 - Annex 2: Major RelatedProjectsFinancedby theBankandor Other Agencies BankOperations 1. The following table summarizes relatedBankProjects. Implementation Progress: Mali: Buildingcapacity for pesticide Satisfactory. Agricultural Services and management including obsolete Producer Organizations Project pesticide inventories and cleanup for Development Objective: PO35630-ongoing. US$617,000. Satisfactory. Honduras: Groundwater and breast milk testing Urgent Tracking and Disposal incontaminated areas. Inventory of Hazardous Materials andremoval of 104tons of obsolete FundedwithUS$730,000 pesticides and other toxic waste, through the DutchTrust Fund includingPOPS,following Hurricane Not rated. (TF021813) Mitch. Also awareness raising, April 1999-August 2000 capacity buildingand public Closed. information campaigns. ~~ Burkina Faso, Chad, Mali, Reducing the hardshipsimposed on Mauritania, Niger, Senepal, people and the environment from The Gambia: current and future locust invasions. Africa Emergency Locust The project includes emergency Project-PO92473-on-going. locust management; emergency Satisfactory. agriculture investments; and establishing early warning and responsesystems in7 countries for a total project cost ofUS$73.0 million. - 27 - Related Operations 2. The following table summarizes the related cleanup andprevention projects implemented byagencies other thanthe Bank. FA0 Manage Ethiopia Pesticide Disposal Projec Awareness raising workshops on obsolete Initiatekoordinatenational inventories of pesticides inaffected countries and obsoletepesticide stockpiles. regions. Guidelines onprevention and Initiate/formulate disposal projects for management o f obsolete pesticides. F A 0 member countries. Guidance and support for prevention Supervise/monitor/followup disposal and programs and strategiesinFA0 member prevention operations inEthiopia. countries. Removaland disposal o f obsolete Global IPMFacility; InternationalCode of pesticides from Iraq, Iran, Lebanon, Conduct on the Distribution and Use of Seychelles, Yemen, and Zambia. Engage Pesticides; Pesticides Management donors inaction to resolve obsolete Programme; Joint Secretariat of the pesticide problems. RotterdamConvention on Prior Informed Consent (PIC); advice and support on pesticide regulation; regional programs on pesticides registration, e.g., CornitL Permanent Inter Etat de Lutte contre la SLcheresse(CESS), Inter-Organization Programme for the Sound Management o f Chemicals (IOMC) member and co chair of IOMC working group on obsolete pesticides. WHO Awarenessraising through the WHO/ InternationalProgramme on Chemical None. Safety (IPCS). Epidemiology ofpesticides Poisoning Project on health impact of pesticides and the IPCS LNTOX Project. UNEP Chemicals Inventories Russian Federation. Financial support for FA0 work inLatin Stockholm Convention Secretariat. America. 4wareness raising. IOMC participation. PartnershipinSecretariat of Rotterdam zonvention. `Demonstrating Cost-effective and UNEP/wHO Sustainability o f Environmentally Sound [GEFfunded, mdLocallyAppropriate Alternatives to Council None. 3DT for Malaria Control onAfrica" - approved2005) Xegional (Ethiopia, Eritrea, Madagascar, Vamibia, South Africa). UNEP/ FA0 `Reducing Dependence on POPSand other [GEFfunded, 4gro-Chemicals in the Senegal and Niger Council None. Tiver Basins through Integrated approved2005) 'roduction, Pest and Pollution -28- PREVENTIONOR CAPACITY AGENCY CLEANUPORDISPOSAL ACTIVITIES BUILDINGAND AWARENESS ACTIVITIES Management" - Regional (Benin, Guinea. Mali, Mauritania, Niger,Senegal). UNIDO- Ethiopia,Nigeria Tanzania, UNEP- None. Support of NIP National Coordinators to Morocco, South strengthenlinkswith NIP process. Africa and Tunisia African 603 tons (Namibia, SouthAfrica, Improvedpesticides regulation, IPM Countries Swaziland). Ethiopia-significant programs,reformof pesticide supply (South Africa, involvement and contribution "in kind"in systems, engagementwith international Botswanaand disposal project management. forums, e.g., Conventions, others) Sub-regional initiatives, e.g., CILSS pesticide registrationprogram. DANIDA Mozambique disposal facility investigated. None. Danish Cooperationfor Southern African Development Environmentanc None. Coordination inventory. Development ~ Finnish Departmentfor Nicaragua 1998-carriedout by Ekokem International (Finnishdisposal company). None. Development Corporation GTZ Over 850 tons pesticide inMadagascar, Mauritania, Mozambique, Niger, and None. Zambia. Netherlands FundedFA0 obsolete pesticides program since 1994. Fundednational disposal programs inCape Verde, Ethiopia, Support to the Global IPM Mauritania, Senegal, Seychelles, Tanzania Facility. - Zanzibar,Yemen, andZambia. Fundeddetailed inventory inTanzania. USAID/ US Environmental Contributedto disposal inEthiopia, Niger, Awareness raising and training for Protection and Senegal. inventory taking. Agency CLI Financial support for destruction of stocks proven to be supplied by CLImember Technical Assistance (TA). companies. - 29 - DemonstrationProject on non-combustion None. POPs destruction technology (Nigeria); Knowledge Sharing workshop on POPs for African NGOs (Arusha-Tanzania). Secretariat TA for the undertakingo fthe national Guidance ontransboundary movement o f Base1 inventory of obsolete pesticides in obsolete pesticides. Technical guidelines Convention Mauritius. on environmentally sound management of POPs (drafting stage). Awareness raising, policy making and training workshops. Independent monitoring of Ethiopian ~ PAN-UK Obsolete Pesticides Project. Promotionof safe alternatives to pesticide Engagement o f Organization for Economic use. Guidance/awarenessraising on health Cooperation and Development(OECD) and environmental impact o fpesticides. Pesticides Forumon obsolete pesticides Training o f local NGOs inmonitoring, issues. Capacity buildingfor NGOs in disposal and prevention. Lobbying for developing countries. Contribution to Implementation of Conventions (e.g., on awarenessraising indevelopingcountries POPs and RotterdamConvention). and among donors. PAN-Africa Publications and awareness raising Guidance/awarenessraising across Africa PAN-UK, Safe Environment Group and on health/environmental impact o f PAN-Africa liaise to develop regional, pesticides. Lobbying for implementation networkedNGO capacity inaddition to o f Conventions (e.g., Stockholm specific in-country capacity-building Convention on POPs and Rotterdam programs. Convention). Conferences and meetings on stockpiles in West African region. Engagement with Governments and NGOs Awareness-raising on issue o f toxins on the implementationof the Stockholm andTA. Convention; Global Toxics Program. - 30 - Annex 3: ResultsFramework and Monitoring ResultsFrameworkfor the overall ASP-P1 PDO/GEO OutcomeIndicators Use of OutcomeInformation GEO Reduce the quantity o f POPS materials inAfrica that could potentially leak and damage ecosystems locally and globally. PDO Elimination of publicly-held Inventoriedpublicly-held Outcome information will be obsolete pesticide stockpiles and obsolete pesticide stockpiles in6 utilized for the design o f the associatedwaste and reductionof ASP-P 1countries eliminated13 subsequentphases o fthe Africa future relatedrisks. (Goal = 100%removed). Stockpiles Programme (ASP-P2, etc.) untilall obsolete pesticide stocks have beenremovedfrom Africa. Reducerisks to health and Quantity of new publicly-held Outcome informationwill also ecosystems from accidental leaks obsolete pesticide stockpiles be very useful for developing o f POPSby helping selected (Goal = 0 stockpiles). similar multi-partner, multi- African countries eliminate country projects inother regions. inventories o f stockpiles of publicly-heldpesticides and their No further accumulation of associatedwaste and to help publicly-heldobsoletepesticide themavoid accumulating such stocks. stockpiles inthe future. (Goal = 0 additional stockpiles). l3Initial estimates have been provided by FA0 and the countries which will be finalized as the first step of each country project within the first twelve months of implementation. - 31 - IntermediateResults ResultsIndicators Oneper Component for EachComponent Component 1: Obsolete pesticide stocks An inventory database inplace in Will define specific ASP-P1 identified accurately and 7 ASP countries, acceptedby the disposal activities and will be disposed and prevention ASP partnership and beingused usedfor future management of measuresput inplace. and updated by Government stocks. staff. Incaseofaccident,emergency plans successfully implemented. Disposal contract completed in6 ASP countries inline with national and international regulations. Quantity of accumulation of new obsolete pesticide stockpiles minimized (Goal =0 additional stockpiles). Government adopts International Code of Conduct on Pesticide Distribution and UseI4. l4The International Code of Conduct covers issues such as the labeling, tracking and licensing ofpesticides. - 32 - IntermediateResults ResultsIndicators OneperComponent for EachComponent Use ofResultsMonitoring Component2: Effective TA provided for TSUfully funded and staffed by Annually: Feedback on the implementation o fproject at the end of year 1. efficacy of TSU services. country level. Client satisfaction as determined by survey. Year 2- 4: Inform scope of future TSU support. Preparation activities for ASP-P2 countries complete -national programs identified, selection conditions met, country counterparts inplace and funding secured. Component3: Capacity buildingfor countries Strategic studies delivered, e.g., Contributeto design o f future and cross-cutting for alternative disposal technologies project components and involvement o fNGOs and locust control issues assessed activities. implementedeffectively. and adopted ifASP standards met. NGO participationinproject Annually: Feedback on the activities inall ASP-P1 countries efficacy of the CCAME services. participating inat least two of the following: awarenessraising, monitoring, capacity building and communication. Communication strategy implemented. Component4: Effective coordination o f all Monitoring reports delivered Annually: Feedback on the program components. with sufficient data on time to efficacy of the ASP-PCU GEF, donors and the Bank. services. ASP-PCU movingto African Mid-tern: Informpreparationof organization within ASP-P1. follow-on projects and scope o f future ASP-PCU support. - 33 - Indicators Specific for the Morocco Country Project: 1. To track progress towards the desired outcomes o f the ASP-P1 component (Country Operation), specific indicators have been developed for the Morocco Country Project as follows: Inventory database o f Publicly Held Obsolete Pesticides stocks inplace andbeing used bythe PMUand stakeholders; Completion o f a CESA and implementation o f the measures contained therein; Inventoried Publicly Held Obsolete Pesticides stocks disposed of, as a result o f the completion o f the Disposal Services contract(s) in accordance with national andinternational laws andregulations; Legal and regulatory framework for pesticide management upgraded, including measures to strengthen compliance with the Conventions; The training program under Part D o f the Project i s implemented and the knowledge so acquired i s being usedbyPMUand stakeholders; and The PMUi s functional and its operationi s satisfactory to the Bank. 2. The Technical Support Unit hosted by the FA0 (ASP-P1 Component 2) is currently developing, under Word Bank supervision, a result framework for all country operations. The framework will include the key outcome indicators, annual targets, baseline situation, source of data, frequency o f data collection, the strategic use o f the data and entity responsible for collecting and reporting the data. The result framework will be finalized during the Moroccan project launch andincluded inthe Project Operationalmanual. - 34 - a Ccl 8 0 2b 5i-B a m 0 4: 2 0 0 --4: 0 0 0 2 2 0 0 0 Q\ 4: 2 X 0 d 0 v) -- lm $e4 0 0 0 d 2 2 X 0 0 e4 lm $ 3 0 v) b 0 W X 0 0 zX 0 0 0 0 Y0 .m 3 a Ha ."s3 a w 9 I A 3 d 3 0 z v, 0 0 0 0 00 z E: z z v, 00 z 0 v,00 $2 00 v, 0 E: 0 0 0 0 0 00 0 v, d \o d 0 z 0 r- 0 hl v, 0 d 0 d 0 0 0 0 0 0 0 0 0 & a b a 4..1 w Annex 4: DetailedProjectDescription Background 1. Overall, ASP-P1 consists of four components: (1) country operations; (2) technical support; (3) cross-cutting activities; and (4) project coordination. The Morocco Project fits into Component 1o f the overall ASP-P1, ASP-PI Component 1:Morocco Country Operations (Total: US$1.98for the overall ASP-PI; GEF: US$4.0million). 2. This is the principal component o f ASP-P1 encompassing a full range o f cleanup and prevention activities. This Component will receive the majority o f support services provided by the remaining three components. The Morocco project is comprised o f four sub-components: a. Cleanup and Disposal Activities; b. Preventiono fobsolete pesticides Accumulation; c. Capacity Building; and d. Country Project Management andM&E. Component A: Cleanup and Disposal (Total US$2.51million; GEF: US$2.26million) 3. The component include (a) detailed inventory o f obsolete pesticides; (b ) an obsolete a pesticide risk assessment, the preparation o f an environmental and social assessment (CESA) including and Environmental Management Plan (EMP), and (c) the environmentally sound disposal o f all existing stocks o f obsolete pesticides including contaminated containers. The Morocco PMU will be trained and given technical support to carry out the inventory and CESA, including an EMP immediately after the Project launch. The inventory will include a prioritization o f storage and contaminated sites based on the level of risk they pose to populations and the environment. The inventory will also feed new data into the design o f the cleanup andremediation operations inthe Kingdomo f Morocco. Component B: Prevention of obsoletepesticidesAccumulation (Total US$O.78 million; GEF: US$0.55million): 4. Activities in this component aim at preventing the recurrence of the accumulation o f obsolete pesticide stocks. Efforts toward changing the behavior o f the many related actors will primarily focus on capacity building, regulations and controls, pesticide management practices and awareness raising. Activities include: (a) strengthen existing regulatory system for pesticide control; (b) promote ongoing IPMefforts, particularly with small scale farmers; (c) develop a communication campaign to raise awareness about pesticide impact and opportunities created by IPM; and - 37 - (d) strengthen the capacity o f the warehouses. This includes, limit reduce risks associated with storing pesticides (e.g. limited access, cement floors, better aeration, better lighting, clear warning signs, access to water, all necessary protective equipment, fire extinguishers). Component C: Capacity Building (Total US$0.27 million; GEF: US$0.2 7 million): 5. Activities will include training and awareness campaigns for effective pesticide and other chemical management practices: (a) training and awareness campaigns for environmental monitoring; (b) reinforcement o f legal control o f the pesticides and the homologation system o f the pesticides; and (c) development and implementation o f a training program in pesticide storage management and IntegratedPest Management (IPM). ComponentD: Project Management and M&E (Total US$1.84million; GEF: US$O.35 million): 6. The problem of obsolete pesticide prevention is a multi-institutional effort, and as such, the PMU's principal role is to ensure that relevant activities in the sector are well-coordinated, complement each other and develop strategic benefits. The PMU will rely on continuous M&E efforts to ensure that appropriate actions are taken within the various stakeholder agencies. The P M U will be responsible to implement the project activities, solicit external technical support, monitor and evaluate Project activities. The PMU will also coordinate fimd raising efforts in order to continue expanding the prevention activities o fthe Project. 7. A SC will be established, representing key stakeholders, such as NGOs and the private sector, andoverseeing the work o f the PMU. 8. The Components o f the ASP-P1, which will contribute to the implementation o f the Morocco Project are listed below: ASP-PI Component 2: Technical Support (Total: US$4.31 million for the overall ASP-PI; GEF: US$3.26 million) 9. The objective o f this component is to provide technical and monitoring support to the country operations under Component 1. Component 2 has four sub-components: (e) provide technical assistance to countries inthe development o f the Country OMSand the completion o f preparatory activities related to training and capacity building (GEF:US$0.06 million, Co-financing: US$0.38 million); (9 provide technical assistance to the six countries to implement disposal operations (GEF:US$0.93 million; Co-financing: US$O.10million); - 38 - (g) provide technical assistance to seven countries to build their capacity to prevent re- occurrence o f the obsolete pesticide problem (GEF: US$0.93 million; Co-financing: US$0.54 million); and (h) provide overall country M&E o f country performance against agreed technical standards (GEF: US$1.3 million; Co-financing: US$0.03 million). 10. The TSU, which i s hosted by FAO, will coordinate the technical input to country projects, and assure the technical quality o f Country Projects and consolidate M&E data. The TSU will operate under the supervision o f FA0 in compliance with the rules and procedures of FA0 . 11. The TSU will liaise directly with the country PMUs and closely with the Bank as per agreed work plans to ensure that the technical assistance needs o f countries are met in a timely and efficient manner. The TSUwill report on its progress andwork planto the ASP-PCU which in turn will consolidate activity reports for transmission to ASP donors and the ASP-SC. Because the Bank is responsible for the supervision o f all GEF ASP country grants, the TSU and the Bank will work closely together to support countries. 12. Since the original project design, GEF has offered direct access to FA0 for fimdingtheir POPS-related activities. Accordingly, FA0 has now direct access confirmed for the TSU component o f ASP and has presented its own Project Brief to GEFSEC in a joint submission with the Bank. 13. FA0 will build the capacity o f countries to safely and effectively undertake disposal activities by providing training and quality assurance. The training plans will be adapted to the specific needs o f each country and training activities will include: preparation o f training material and conduction o ftraining on: Sub-component 1:Preparationof Country OperationalManuals 14. This sub-component will support the seven countries to prepare Country OMSrequired for negotiations andto implement the project. Sub-component2: Preparationfor DisposalofObsoletePesticides 15. This sub-component will coordinate delivery o f a range o f services to support the preparation o f country operations to dispose o f obsolete pesticides and will include the following activities: (a) support the design o f strategies for the effective and safe disposal o f obsolete pesticide stocks andassociatedwaste, health andsafetyplans; (b) support the development o f obsolete pesticide inventories byproviding training, material, information andtechnical support for fieldactivities; (c) support the development o fthe CESAs includingthe EMPs; - 39 - (d) contract preparation-the TSU will support countries inpreparingtechnical specifications and carrying out technical evaluations for project managers, consultants and contractors for obsolete pesticide prevention and disposal activities. The Bank's fiduciary responsibilities will not beinfiingedinthis regard; and (e) advise on alternative disposal options, targetedto specific country or site conditions. Sub-component3: PreventionofAccumulation 16. The prevention sub-component will coordinate delivery o f a range o f services that are requiredto support country prevention activities. It will include the following activities: (a) support legislative andregulatory reforms to enhancepesticidemanagement; (b) support the identification o f wealmesses in the enforcement of legislation and enhance enforcement measures; (c) support the design o f enhancedpest management strategiesto improve efficiencies andto reducereliance onpesticides invarious sectors; and (d) support the design andimplementation o fappropriate container management strategies. Sub-component4: MonitoringandEvaluationof CountryImplementation 17. The activities under this sub-component include: support country project launch workshops and supervision support with the Bank at least twice per annum; support countries to implement the detailed M&E System andEnquiry System; support annual workshops for the PMUs on lessons learned; and support TSU Management, including overall coordination with other ASP units, administration o f TSU activities, including procurement, reporting and financial administration. Component 3: Cross-Cutting Activities Management Entity (CCAME) (Total: US$2.44million for the overall ASP-P1) 18. The objective o f this component i s to support ASP-P1 knowledge management, buildthe capacity o f local NGOs in pesticide-related matters and to identify alternative disposal technology and practices. This component will be implemented by WWF and PAN-UK. It comprises three sub-components: (a) communications andknowledge management; (b) NGOcapacitybuilding; and (c) strategic studies. - 40 - 19. The original planto include a Competitive Grants component is not currently funded, but may beprepared andincluded inASP-P2 programming as additional fimds become available. Sub-component1:CommunicationsandKnowledgeManagement(WWF) 20. The sub-component will coordinate a number o f cross-cutting activities, required for the success o f the ASP. The activities include: (a) Communications: The communication strategy will be further defined during project implementation. It will include the design and distribution o f ASP folders/documents, managing the ASP website and a media outreach service (e.g., field visits for journalists, information dissemination campaigns). The Bank will also provide media outreach and communications support to WWF due to its globalreach; (b) Knowledge management: A knowledge and information management system will be designedandimplementedto store andretrieve keydocuments andinformation; (c) Treaty ratification and coordination with chemical convention activities (in addition to POPSdestruction options): Countries which have not yet signed or ratifiedthe Stockholm Convention will be supported to do so. This is required by the GEF as a condition for country participation in ASP. Countries will also be supported financially to ratify the Rotterdam, Basel, andBamako Conventions. This activity will also support coordination with related chemical convention issues including: NIP, inventory coordination, PIC information exchange andtrans-boundary movement o fwaste issues; (d) Private sector funding: WWF will solicit private sector financial support for ASP in cooperationwiththe BankandFAO. Sub-component2: NGOCapacityBuilding(PAN-UK) 21. PAN-UK will lead these efforts in close coordination with PAN-Africa and W W . The activities will include: (a) NGO capacity building: NGO capacity to address pesticide management issues will be built through sharing lessons learnt at workshops, networking and coordination o fNGO activities; (b) preparinganddisseminating operational guidelines for NGOinvolvement andtraining in ASP; and (c) designing andimplementingawarenessraisingactivities andoutreach program targetedat key stakeholders. Sub-component3: StrategicStudies (WWl?) 22. The sub-component will include preparation o f strategic studies in close collaboration with regional partners on topics common to the entire project, such as environmentally -41 - sustainable locust control andthe safe maintenance o f emergency pesticide stocks for the control o f locust outbreaks, malaria, dengue fever and other pest-vector diseases. Activities will include: (a) identifyrng alternative disposal technologies for obsolete pesticides and remediation o f contaminated soils andwater resources; and (b) identifying environmentally sound locust control strategies and the safe maintenance o f emergency pesticide stocks for the control o f locust outbreaks, malaria, dengue fever and other vector-born diseases. ASP-PI Component 4: Project Coordination (Total US$2.44million for the overall ASP-PI) 23. The objective o f this component is to ensure overall coordination o f the ASP-P1 including the other three components and their activities. The ASP-PCU will initially be hosted bythe Bank. It is anticipated that following the successful completion o fASP-P1,or earlier, the ASP-PCU will be transferred to an African organization. NEPAD has been identified as a potential host. The Bank is channelingDGF fimding to DBSA for capacity buildingactivities o f NEPAD. The three components o fthe ASP-PCU include the following: Sub-component 1: Governance and Coordination 24. The ASP-PCU will be responsible for supporting the overall governance arrangements o f the ASP including the ASP-SC. In addition, the ASP-PCU will coordinate the efforts o f the partners to design subsequent ASP projects. The main activities under this sub-component will include: (a) providing secretarialsupport for the ASP-SC; (b) coordinating preparation for ASP-P2; (c) ensuring effective management o f ASP financial resources and maintaining an audit regime incooperationwith the Bank;and (d) promotingASP andliaisingwith donors andrecipient countries. Sub-component 2: ProjectMonitoringand Evaluation 25. The ASP-PCU will establish and implement the overall ASP M&E system in order to ensure that the Project is successfully implemented to achieve the PDO and those resources are being used efficiently and effectively. It will do this through consolidating individual FMRs and monitoring Project progress against the project Results Framework and each component against its overall Project Results Framework and Workplan. It will provide bi-annually consolidated ASP progress reports and work plans with recommendations to the ASP-SC and to donors and partnersfor information. - 42 - Sub-component3: ASP-PCUManagement 26. Fundsfrom the MDTFwill financially support the ASP-PCUinorder for it to performits central coordination functions. NEPAD will be provided with a capacity development grant from the DGF so that it will be preparedto take on increasingresponsibilitythroughout the life o f ASP-P1. The ASP-PCU will produce a bi-annual work plan and project progress report supportedby a projectFMR for the ASP-SC, andall other partners. The report will bebasedon the inputsprovidedfromthe variouspartners. -43 - Annex 5: Project Costs Item 1mount(US! GEF Gov Total 2,265,000 250,000 2,515,000 COMPONENT A: Clean Up and Disposal Inventory(14 teams of4 people) 165,000 250,000 415,000 CollectionandDisposalofpesticides 2,100,000 2.100,000 ,, ~ 550,000 230,000 780,000 COMPONENTB: Preventionofobsolete pesticidesAccumulation Environmentaland SocialAssessment (including 150,000 50,000 200,000 EMP) Training 200,000 200,000 Communicationactivities +productionof audio- 100,000 100,000 200,000 visual aids Awareness on IntegratedPest Management 60,000 50,000 110,000 Awareness on IntegratedVector Management 40,000 30,000 70,000 270,000 0 270,000 COMPNENT C: Capacity Building 140.000 50,000 25,000 25.000 30.000 345,000 1,500,000 1,845,000 COMPONENT D: PMU Coordination Consultants 85,000 85,000 Transportation(vehicles, gas andmaintenance) 140,000 600,000 740,000 Office and computer equipment 20,000 500.000 520.000 Office supplies 20,000 1oo:ooo 120:ooo Workshops andseminars 50,000 300,000 350,000 Travel expenses/ per diem 30,000 30,000 3,430,000 1,980,000 5,410,000 Total Contingencies 570,000 570,000 Total Grant Agreement 4,O00,O00 1,980,000 5,980,000 - 44 - Annex 6: ImplementationArrangements Background 1. ASP-P1 institutional and implementation arrangements rely on close cooperation between the ASP partners. Overall coordination o f the ASP will be the responsibility o f the ASP-PCU. The Country PMUs are responsible for implementation o f Component 1. The TSU (hosted by FAO), and CCAME (hosted by WWF/PAN-UK) will support the countries in implementation through providing, inter alia, technical assistance, support for prevention activities and information dissemination. Overall coordination and oversight will be provided by the ASP-PCU, to be established initially in the World Bank and then moving to an Afr-ican organization. (NEPAD is receiving DGF finds to build its capacity as a possible candidate). The ASP Unit at the World Bank provides continuous management o f project activities and supervision o f funds. 2. These arrangements are based on the comparative advantage o f each partner andresponds to the need to: ensure country implementation capacity and ownership; technical support for country project implementation; sound communication and NGO support; coordinated and effective implementation between the partners; and effective supervision and management o f donor finds. ImplementationandInstitutionalArrangementsfor the Morocco CountryOperation 3. In order to implement the Morocco Country Project, Morocco will establish a PMU, which will be supported by a Steering Committee (SC). Project Management Unit (PMU) 4. In the Kingdom o f Morocco, the PMU will be established in the Direction de la Protection des Vkge'taux,des Contrdes Techniqueset de la Rkpression des Fraudes (DPVCTRF) o f the Ministdre de 1'Agriculture, du De'veloppementRural et des PEches Maritimes (MADRPM). Activities will be closely coordinated with the Directorare for Risk Prevention and Monitoring (Direction de la Surveillance et de la Prkvention des Risques - DSPR o f the Ministry o f Land Management, Water and Environment (Ministdre de I'Ame'nagementdu Territoire, de 1'Eau et de 1'Environnement). 5. The PMU will be staffed through work program agreements with Government staff who will assign a proportion o f their time to the PMU's work. The PMUwill include the following positions; (i)a Project coordinator; ii)an Environmental specialist; (iii) Pesticides specialist; a iv) a communication specialist; (v) a M&E specialist; and (vi) a Prevention specialist and (vii) a finance, procurement and administration specialist. Some o f these posts may be supported by individual consultants where a need for them i s identified. Technical support will also be provided bythe TSU according to an agreed work plan. -45 - 6. The PMU will be responsible for supporting and coordinating all technical aspects o f Project implementation, described under the Country Operations Component (Annex 4); and Project management, including: coordinating project implementation within Government and programming o f external inputs, including from the TSU; submitting to the Bank for review and clearance all reports relatedto the project; ensuring sound FMand proper documentation of receipt and expenditure o f funds, as well as the provision o f external annual audit reports to the Bank; preparing the annual, bi-annual work plans and progress reports, mid-term review report and quarterly FMRs. The SC and TSU will receive copies o f the work plans, the progress reports and the mid term review. The ASP-PCU and the Bank will receive these reports together with the QuarterlyFMRs; updating and implementing the 18 month procurement plan, and submitting it to the Bankfor approval; project M&E, including updatingofthe management information system; ensuring preparation, approval and implementation o f the CESA including an EMP, before disposal operations commence; updating the Country OM, and ensuring implementation o f the Project according to the procedures contained inthe Country OM; and ensuring that the Project i s implemented in accordance with agreed occupational health and safety procedures. National Steering Committee (NSC) 7. The SC will be chairedby the Minister o f Agriculture, Rural Development andFisheries, or his representative. The DPVCTRF will serve as the Secretariat. The SC will include representatives from the departments o f Agriculture (DPVCTRF), Land Management, Water and Environment (DSPR), Public Health (Direction de l 'Epidemiologie et de la lutte contre les maladies), Finance and Privatization, Interieur (DGCL, Protection Civile), Industry and Trade, GEF Focal Point, NGO's Representatives, Pesticide industry representatives, and any other relevant person who the Chairmen o fthe SC can invite. 8. The NSC will meet every six months. The main functions of the SC will include: (a) approving the annual and bi-annual work plans and progress reports prepared by the PMU; (b) monitoring Project finances; (c) supporting and coordinating Government efforts to implement the Project; and (d) monitoring and advising on Project implementation, including against the indicators contained inthe Grant Agreement, and the EMP. - 46 - 9. The SC will report to the relevant Minister by, among other things, providing him or her with copies o fthe minuteso fthe SC meetings. ImplementationandInstitutionalArrangementsfor OverallASP-P1 TheASP-Steering Committee (ASP-SC) 10. This will be an advisory structure to the ASP partners including the Bank and FAO. It will comprise o f a membership of 10-15 persons representing: ASP core partners, including the seven ASP-P1 countries, NGOs, NEPAD Secretariat, AfDB, donors, key UN agencies and Convention Secretariats. The ASP-PCU will act as a secretariat to the ASP-SC. The ASP-SC will decide on its rules ofprocedures at its first meeting. The ASP-SC will meet once a year and will be responsible for: (a) reviewing and advising on overall project implementation progress and work plans, including review o f the overall annual ASP-P1 work plan and progress report and related financial status report prepared by the ASP-PCU; (b) reviewing and advising on fund-raising progress; and (c) advising on any other critical key issues important to successful implementation o f the Project. - 47 - 11. The ASP-PCII will be r c s ~ # ~ s i bfor l $ ~ o o r d the i~~ a~ l~e ~~ $~n ~OTathci ASP between ~ ~ o n the ~~~~~~s and ~ n s ~goodi ~no~v e ~ a ~ cItewill not be r e ~ p ~for ~~ e~r bf #l ~Bankn ~ ~ . ~ ~ ~ i s ~ ~ ~ enor will~ it~ ~ #the~ Bank's ~ ~ r , dresp~nsib~~i~~~s. \vi11~initially host ~ ~The Bank i ~~~~~ thc ASP-PCUbefore t r a n s f e it to ~an African ~ ~ ~ a n i ~ afikci NEDAP, The ASP-PCU wit1 ~ ~ t o n include a coordi~ator~finance s ~ ~ ~ i aand~an~a d ~ ~ n i s ~ raast ~ i~sct a n ~ ~ n f oanalyst.~ o ~ a l § , s ~ ~ ~ t Selection of A ~ Pstaffwill be on~a ~ o ~ ~ e t i tbasis. The ASP-PCU will be assisted by a - ~ ~ i v e variety o f c o n s ~ ~ (e.g.?~ ~t ~n d $ ~ e M&E, ~log~st~ca~support staff9 and ~ ~ c ~ ~ jfor~ ~ # r s ~ a n ~ e ~ t ~ ~ o r ~ ~ h o ~ S ~ . - 118- (a) coordinating project implementation between the partners. It will do this by providing bi-annual ASP-P1 work plans and progress reports to the ASP-SC and the project partners; (b) preparing consolidated FMRs for submissionto the Bank; (c) convening the ASP-SC; (d) coordinating the design andpreparationo fthe ASP-P2; (e) coordinating a fundraising strategy between the partners; (f) coordinatingthe independent M&Eo fthe ASP-P1; and (g) ensuring effective communicationbetweenthe partners. Technical Support Unit (TSU) 13. FA0 will host the TSU and be responsible for providing highlevel technical support to countries as detailed in Annex 4. The FA0 will provide the necessary internal controls to manage the TSU. The TSU will prepare its bi-annual work plans in cooperation with the seven countries as well as with the ASP-PCU and the Bank. 14. The TSU will submit bi-annual progress reports using the standard FA0 format and containing (i) implementation o f activities compared to the work plan; (ii) actual identification o f problems and constraints; (iii) recommendations for corrective measures; and (iv) detailed work plan for the following reporting period. The TSU will also submit FMRs to the ASP-PCU in order to monitor project expenditures andbudget forecasts. 15. The TSU will be coordinated by a senior specialist who will be responsible for budget management, operational activities, and staff management. An additional senior specialist will be posted in South Africa and will coordinate technical inputs to ASP-P1 countries. Other specialists will be recruited to coordinate M&E at the country level and prevention activities. The TSU will be supported by administrative assistants. In addition, the TSU will hire consultants as needed for specific tasks such as training and updating of manuals and guidelines. 16. The TSU coordinator will liaise with the ASP-PCU on programmatic issues and will maintain direct contact with ASP partners, donors and countries in order to ensure all technical issues are adequately addressed and technical inputs are coordinated. Within ASP-P1 the TSU will liaise directly with the PMUs ensuring that the needs o f the countries for technical support are met in a timely and efficient manner. Cross-Cutting Activities Management Entity (CCAME) 17. The CCAME will provide a support service, covering matters such as knowledge management, awareness-raising and strategic studies for the Project, as described in Annex 4. WWF and PAN-UK will execute this project function for ASP-P1, and will work closely with countries to support communication andknowledge management activities. - 49 - 18. WWF staff will include a director, senior program officers, senior administrative assistant anda senior program officer who will be locatedinthe WWF Africa regional office (all are part- time positions). WWF will mobilize their existing in-house capacity, e.g., WWF communications staff and staff fkom regional offices, and hire consultants for specific studies. PAN-UK will closely coordinate implementation of capacity building and communications activities with PAN-Africa. CCAME will submit bi-annual reports to the ASP-PCU. ASP Unit 19. The Bank will establish an ASP Unit, supported by staff in MNA and Africa Regions, based on the current Project preparation team. The rationale for this i s that the Project will comprise o f six GEF Grant Agreements and four other trust fund agreements. This will entail support to different entities including the current seven countries with follow-up ASP-P2 support envisaged for another eight countries. Inaddition, the Project involves two Bank regions: MNA andAfrica. The proposedASP Unitwill serve the following fbnctions: (a) coordinating Bank project supervision and compliance with fiduciary requirements and legal covenants, supporting project launch workshops, a mid-term review and production o fthe Implementation Completion Report; (b) reporting to donors, establishing new trust h d s andnegotiating grant agreements; (c) supportingthe development o f the ASP-PCU; and (d) supportingthe development o f ASP-P2. 20. Inorder to support the above, a dedicated three person unit is required. This will comprise o f a Coordinator, an operations officer and an Administrative and Client Support staff member. The ASP Unitwill be supported by 60% o fthe time o f a staffmember from the Africa Region. The ASP Unit will also be supported part-timeby identified FM staff from MNA and Africa Region Departments. While the GEF Grant Agreements are being negotiated, the same Bank preparatory team will, where possible, be used for negotiating all agreements. For countries inthe Africa Region, the negotiations packages will be cleared by the Africa Director Regional Integration and for MNA by the Country Director. As each country operation moves into project implementationphase, the procurement, disbursement, FM, safeguards and country- specific TTL h c t i o n s will be provided by the relevant country team staff, backed up by the ASP Unit. Project supervision will be initiated with workshops at Project launch, and followed up with six monthly project supervision missions. A mid-term review will be held and a project closure report produced. The ASP Unitwill be based inWashington and will report to the Sector Manager, AFTS4. Monitoring and Evaluation 21. ASP'S objective is to continually improve its standards o f operation and to minimize the potential for adverse impacts on humanhealth and the environment. Inaddition, ASP-P1 aims to reduce the implementation costs o f future country projects through the utilization o f capacity developed during ASP-P1. Budgets for the Monitoring and Evaluation (M&E) h c t i o n s have been allocated at the overall Program level and at the operational component levels in each - 5 0 - country. The M&E responsibilities are hlly described in the Generic OM and will be detailed for the individual countries with information about the budget allocation in the individual Country OMS. ASP M&E functions will take place at both the Program level and the Country level: 22. ASP ProgramLevel: The TSU is responsible for the consolidationandmanagement o f all ASP-P1 M&Etechnical data. A TSU M&E Officer will work inclose collaboration with the PMUs to ensure the M&Eprocess is as simple and streamlined as technically possible. The TSU will complete two M&E missions annually. M&E reports will use standardized formats. Once complete, the reports will be passed to the M&E focal point within the PMU for review, consolidation and evaluation, including comparative evaluation within ASP-P1 countries. Budgetfor the TSUM&Eofficer, supervisionmissions, the development o f anM&Esystem and training for Country PMUs are included inthe FA0 budget for the TSU. The TSU will publish technical M&E data on the Web and develop reports for the ASP-PCU. The ASP-PCU will also provide guidance to ASP-P1 countries on the M&E process for ASP'S financial aspects, including budget utilization, and actual costs versus budgeted costs. In addition, the ASP-PCU will be responsible for the final review o f financial data and the consolidation o f technical and financial reports to be forwarded to ASP-SC. 23. Independent Project Monitoring: The ASP-PCU will hire the international Independent Project Monitor incoordination with ASP Unit. US$200,000 has been allocated for this task as part o fthe ASP-PCU budget. Inaddition, the use o finternationalandnationalNGO monitors will provide an important independent assessment o f the project to improve timeliness and performance efficiencies. The TORSinclude review and evaluation strategies for enhancing national capacity. Inparticular, a yearly evaluation o f the progress and management o f the ASP will be prepared by the evaluator in advance o f each meeting o f the ASP-SC, and submitted to the ASP to facilitate its work. The evaluation will include an assessment o f the quality o f coordination o f the various entities involved in managing ASP activities - the TSU, PCU, and CCAME, and the effectiveness o f the program in providing timely financial and technical assistanceto the participating countries. 24. M&E in the ASP Unit: The ASP coordinator and staff involved in the day-to-day supervision and supervision missions continually monitor, evaluate, and record observations as part o f program management for project implementation. Adequate GEF BB budget has been allocated to accomplish this task. 25. M&E at the Country-Level: At the country level, the PMUs will identify a country focal point for M&E activities and develop detailed M&E arrangements with budget allocations as part o f their Country OM. Furthermore, the CCAME will be conducting continuous training workshops for local NGOs to buildup their capacity in conducting monitoring operations at the local level. All M&E data collected at the country level will be submitted to the TSU and ASP- PCU for consolidation. This will allow the TSU to identify common problems and develop lessons learned for ASP-wide dissemination and use. - 51 - Annex 7: FinancialManagementandDisbursementArrangements Background 1. A Financial Management (FM) assessment was conducted for the Government o f the Kingdom o f Morocco and was found satisfactory to the Bank. The Project risk from a FM perspective is considered as moderate. The summary o f the main risks identified and the measures to mitigate these risks is as following: (a) At the countly level: Risk to Project funds arising from outside environment i s considered as moderate. The delays in commitment and payment noted in the Country Financial Accountability Assessment (CFAA) may have a possible impact on disbursement. The prefinancing system on the budget funds usedin the Kingdom o f Morocco may imply an additional delay between payments and disbursement. Clear reporting procedures must be defined to optimize the monitoring o f disbursement; (b) At the project level: There may be potential delays in reporting and monitoring project transactions. Clear reporting procedures must be defined between the two implementing agencies, the Ministry o f Finance and PMU. The continuing adequacy o f the FMsystem must be monitoredduring supervisionmissions andFMRsreviews; Insufficient humanresource capacity may be a possible risk ifthe PMU i s not staffed with qualified agents. At the PMU level an FM staff member must be appointed to support the executing agencies. This staff must have skills in accounting, project management and IT (Excel) and will be responsible for financial project monitoring, maintaining financial reporting and preparing all consolidated FMRs. To conduct these tasks, this staff will be trained to disbursement and reporting procedures specific to Bank financed project. This FM staff will rely on the existing procurement and accounting services o f each executing agency, which have the primarilyresponsibilityo fthese two functions. Flow of Funds 2. Bank accounts and disbursement procedures: The Kingdom o f Morocco will access the funds o f the GEF after signing appropriate grant agreement in line with the Bank-Donor signed bilateral administration agreement. 3. The Proceeds of the Grant would be disbursed in accordance with the traditional Disbursement procedures o f the Bank and will be used to finance project activities through the disbursement procedures currently in use: i.e. Withdrawal Applications for direct payment, for Special Commitments and/or reimbursement accompanied by appropriate supporting documentation or using Statements o f Expenditures (SOEs) in accordance with the procedures described in the Disbursement Letter and the Bank's "Disbursement Manual". The Budget Directorate within Ministry o f Finance will be responsible for (a) submitting to the Bank the appropriate supporting documentation for reimbursement o f eligible expenditures incurred directly to the State Budget or for replenishment o f the Special Account, or (b) submitting - 52 - Withdrawal Applications for direct payment to the Bank accompanied by the necessary supporting documentation. The Kingdom o f Morocco has sufficient experience with Bank financed operations and disbursement policies and procedures, no major difficulties are expected inthe flow offunds. 4. SpecialAccount (SA): To facilitate disbursement o f eligible expenditures the Borrower will open and maintain a Special Account inMoroccanDirhams with the Trksorerie Gknkrale du Royaume to cover Grant's share o f eligible Project expenditures. The Authorized allocation o f the SA would be the equivalent o f an estimated four (4) months' o f eligible expenditures financed by the Grant. The Recipient will be responsible for submitting monthly replenishment Withdrawal Applications with appropriate supporting documentation for expenditures incurred and will retain and make the documents available for review by the Bank supervision mission andproject auditors. The supporting documentationwill include reconciledbank statements and other documents as may be required. 5. Use of Statement of Expenditures(SOEs): All applications to withdraw proceeds from the Grant will be fully documented, except for: (i) expenditures o f Contracts for (a) Goods costing less than US$500,000 equivalent per Contract; (b) services o f individual consultants costing less than US$50,000 equivalent per contract; (c) services o f consulting firms under contracts costing less than US$lOO,OOO equivalent per contract; (d) training and workshops; and (e) Operating Costs. Documentation supporting expenditures claimed against SOEs will be retained by the Recipient and will be available for review when requested by Bank supervision missions and Project Auditors. All disbursements will be subject to the conditions o f the Grant Agreement and the procedures defined inthe Disbursement Letter. 6. Staffing Arrangements: An FM staff must be appointed in the PMU with clearly defined TORS. This staff will (a) assist the existing staff in the executing agencies including in updating the FM manual; (b) be responsible for financial project monitoring and coordination including financial reporting; and (c) preparing all consolidated FMRs. To conduct these tasks, this staff must have skills in accounting, project management and IT (Excel) and will also be trained in disbursement and reporting procedures specific to Bank financed project. This FM staff will rely on the existing procurement and accounting services o f each executing agency, which have the primaryresponsibility o f these two functions. 7. AccountingPoliciesandProcedures: The official accountingsystem maintainedbythe executing agency i s based on a cash basis following outline o f budget components given in decree no. 330-66 o f April 21, 1967which includes basic rules for Government accounting. All project funds will be maintained through this public accounting system. For the project needs, a cash basis o f accounting is required by every PMU and the calendar year i s January 1 through December 31. For the Kingdom o f Morocco, a specific project reporting will be maintained by the PMU FM staff using a manual information system and based on the specific project chart o f account that will be drawn up using the cost tables o f all participating countries. For that, the PMU staff will rely on the executing agencies procurement and accounting services and will coordinate with the Ministry o f Finance. Reporting procedures for the project (including financial reporting and FMR format) are described in the Morocco O M and will be further detailed bythe FMconsultant duringhis mission inthe PMU. - 53 - 8. Information System: The project accounting records will be maintained using a conventional Excel spreadsheet. The accountingperiod for the Kingdom o f Morocco will follow the period beginning January and ending December o f each year. As the SA will be held in Moroccan dirhams, accounts will be maintained inthis currency. 9. Reportingand Monitoring: The unit in charge o f FMwithin the PMU will coordinate the project activities and will be responsible for consolidating financial reporting for both executing agencies and submitting consolidated bi-annual FMRs and annual project financial statements to the Bank. At the end o f each semester, the following reports should be prepared and submittedto the Bank andASP-PCU for consolidation no later than 45 days after the end o f each calendar semester: (a) financial reports consisting o f the sources and use o f h d s and cash balances o f the project and SA statement duly reconciled when applicable ; (b) physical progress reports; and (c) procurementreports. 10. A consolidatedFMRwill beprovidedby the ASP-PCU to the Bankwithin 60 days after the end o f each calendar semester. Inaddition to the bi-annual reports mentioned above, project financial statements should be prepared at the end o f each financial year (December 31), incorporating these financial reports and a statement o f the cash position for project hnds from all sources, when applicable, a statement reconciling the balances o f the various bank accounts to the bank balances and notes to the financial statements. The format o f these FMRs has been discussed during appraisal based on the "Government ofdtlantis" Sample from the Guideline to Borrowers and adapted to the Moroccan context. 11. Audit: Internal audit functions may be carried out by the "Inspection gkntrale" inthe Ministryo fFinance. 12. Audited ProjectFinancialStatementswill be submitted to the Bankwithin six months after year end December 31. 13. Inaddition to expressing an opinion on the Project Financial Statements in accordance with International Standards on Auditing, the auditors will be required to comment on whether counterpart funds have been provided regularly and used in accordance with the Grant Agreements. 14. In addition to the audit report, the auditors will be expected to prepare management letters giving observations and comments, and providing recommendations for improvements in accounting records, systems, controls and compliance with financial covenants in the Grant Agreements. 15. SupervisionPlan: Supervision activities will include: review o f financial projections or forecast for the Project, the procurement plan, the format and content o f auditing arrangements, - 54 - measures o fphysicalprogress, the criteria for following up variances betweenplanned and actual costs andphysicalprogress. At minimum,two supervisionmissions a year are required. DisbursementArrangements 16. Disbursement: The Budget Directorate within the Ministryo f Finance will manage all the disbursements. Disbursements under the ASP-P1 will be made largely through transaction based disbursement using withdrawal applications supported by Statements o f Expenditures. Each executing agency will be responsible for issuing and sending SOE to the PMU which will send them to the Budget Directorate. For replenishment o f the SA, the Budget Directorate will issue and send a withdrawal application to the Bank. The Budget Directorate will send withdrawal applications to the Bank for direct payments to suppliers andconsultants. Supporting documents will be maintained by each executing agency in the accounting services and made available to the Bank's visitingmissions and auditors as required. 17. Allocation of Grant Proceeds to Countries: The GEF Grants will be disbursed over a period o f four years, or such period as maybe agreed with the Bank. 18. Special Account: In order to ensure timely provision o f b d s to finance eligible expenditures under the grants, a special account will be opened in Moroccan Dirhams at the Trbsorerie Gbnbrale du Royaume (TGR). The initial deposits into these accounts will be as indicated in the respective Grant Agreement with the five Governments. In the Kingdom o f Morocco, there is no project account opened for counterpart funds. 19. DisbursementProcedures: Disbursement andwithdrawal procedures are detailedinthe Bank Disbursement Handbook. All disbursements will be governed by the conditions in the Grant Agreements andthe procedures inthe Disbursement Letter sent to the Budget Directorate within the Ministryo fFinance. These will include the remedies available to the Bankincases o f ineligible expenditures made from the SA, the SA remaining inactive, or when the reporting requirements are not complied with. 20. DisbursementCategories: The category "Disposal Services" was agreed uponbetween the Africa and MNA Region. The procurement process under "Disposal Services" would commence with a pre-qualification exercise similar to the one used for civil works, i.e., it would be an open application process and all applicants who can meet the pre-qualification criteria would be pre-qualified and subsequently invited to bid. Since the Bank has no off-the-shelf standard bidding documents for these "Disposal Services", it would be necessary to develop them based on other available documents, including the sample document "Procurement o fNon- Consultant Services". - 55 - 21. The table below sets forth the Categories o f items to be financed out o f the proceeds o f the Grant, the allocation for each Category and the financing percentage set at 100percent: Amount of the % of Category GEFTrust FundGrant Expenditures Allocated to beFinanced (ExpressedinUS$) (1) Goods 280,000 100% (2) Consultant Services, audit, training 860,000 100% and workshops (3) Disposal Services 2,100,000 100% I(4) Operating Costs 300,000 100% (5) Unallocated I 460,000 I TOTAL 4,000,000 22. Operating Costsyymeans incremental operating costs on account o f Project coordination, implementation, and monitoring activities carried out by the PMU including office supplies, office rent, utilities, printing, advertising, per diems, bank charges, maintenance and operation o f Project motor vehicles, but excluding the salaries o f the Recipient's civil service. Annex 8: Procurement General 1. Procurement for ASP-P1 will be carried out in accordance with the World Bank's "Guidelines: Procurement under lBRD Loans and International Development Agency (IDA) Credits" dated May 2004; and "Guidelines: Selection and Employment of Consultants by World Bank Borrowers" dated May 2004; and the provisions stipulated ineach Grant Agreement. For each contract to be financed by the grant, the different procurement methods or consultant selection methods, estimated costs, prior review requirements, and time frame will be agreed between the Recipient and the Bank and recorded in the Procurement Plan. The Procurement Plan will be updated at least bi-annually, or as required, to reflect the actual project implementationneeds and improvements in institutional capacity. Where applicable, the Bank`s Standard Bidding Documents for goods and works and Standard Requests for Proposals for Consultants, as well as all standard evaluation forms, will be used throughout project implementation. Other bidding documents which do not follow Bank standards, including national bidding documents, may also be acceptable, provided they are reviewed by the Bank, prior to their first use. 2. Advertising: A General Procurement Notice will be published in the dgMarket online, andUNDevelopment Business (UNDB)online. Extracts o fthis GNP will also bepublishedina national newspaper. In addition, Specific Procurement Notices (SPN), to be published in dgMarket online and UNDB online for International Competitive Bidding (ICB) for goods is required. Expressions o f Interest (EOI) for consulting services with an estimated value inexcess o f US$200,000 will also be advertised in the same manner. All I C B and National Competitive Bidding (NCB) procurement o f goods and all Requests for EO1will be advertised locally too. Contract awards will also be published in UNDB and dgMarket, in accordance with the Bank's Procurement Guidelines (para 2.60) and Consultants Guidelines (para 2.28). 3. Summary of InstitutionalResponsibility:The Project will be managed by a Project Management Unit (PMU). Although the P M U will have a global supervision and consolidation role, procurement will be carried out by the two implementing agencies: DPVCTRF and DSPR. Except for consultant services for capacity building activities at the Ministry o f Land Management, Water and Environment and some minor equipment procurement, all other procurement activities will be carried out by DPVCTRF. 4. Procurement of Goods: Goods procured under this project will include office equipment, computers, vehicles, field instruments (GPS, digital cameras, etc.), packaging, protective clothing, and specialty drum cleaning equipment. Contracts for goods estimated to cost less than US$500,000 may be procured using NCB. Contracts for goods estimated to cost less thanUS$50,000 may be procured usingshopping. For ICB, the Bank's SBDs - Procurement o f Goods will be used. For NCB, national or other bidding documents may be used, provided they have been reviewed by the Bank and found acceptable, before their first use. To the extent possible, goods will be grouped into contract packages estimated to cost the equivalent o f US$500,000. - 57 - 5. Direct Contracting for Goods: Goods and works which are specialized or o f a proprietary nature costing less than US$lO,OOO may, with the Bank's prior agreement, be procured inaccordance with the provisions o fparagraph 3.6 o f the Guidelines. 6. Procurement of Disposal Services: Non-consulting services under this Project include disposal o f obsolete and buried pesticides and disposal o f containers. It may also include safeguarding o f obsolete pesticides (repackaging) as well as their transport. Pre-qualification o f service providers will be mandatory under the grant agreements, since these services are very specialized and require close familiarity with applicable international standards. A special pre- qualification document, modeled after the Bank's pre-qualification document for works, will be developed and used. This pre-qualification document will reflect the standards for disposal o f obsolete and buried pesticides and will be approved by the Bank. Only providers who can demonstrate that they have the requisite capabilities and historical record to comply with these standards will be pre-qualified and invited to bid. Providers may be single firms or joint ventures o f several firms. The FAO-TSUwill provide technical support for the pre-qualification, bidding and execution o f these specialized services. A special bidding document for disposal services modeled after the Bank's trial edition o f such document will be developed, used and furnishedto the pre-qualified providers. 7. Selection of Consultants: Consulting services under this project include: (a) Country Environmental and Social Assessment; (b) Elaboration o f a national strategy for pesticide stocks management; (c) Cany-out o f training and/or awareness workshops on pesticide inventory, management and disposal, promotion o f alternative methods to use o f pesticides, prevention and safeguard measures, etc; (d) Study about the legal controls o f pesticides and reinforcement o f pesticide homologation systems; and (e) Capacity building services at the Ministry o f Land Management, Water and Environment. 8. The selection o f consultants for contracts estimated to cost more than US$lOO,OOO will follow the Quality and Cost Based Selection method (QCBS). The selection o f consulting firms for contracts estimated to cost less than US$lOO,OOO may follow the Consultants Qualifications Method (CQS). Services for assignments inwhich (i) teams o fpersonnel are not required; (ii) no additional outside (home office) professional support is required; and (iii) the experience o f qualifications o f the individual are the paramount requirement may be procured under contracts awarded to individual consultants, in accordance with the Section V o f the Consultant Guidelines. All Single-Source Selections (SSS) will have to satisfy the requirements o f paragraphs 3.9-3.13 o f the Guidelines. The appropriate selection method for each consulting contract will be recorded inthe Procurement Planaccording to the aforementioned thresholds. 9. The short list o f consultants for services estimated to cost less than US$lOO,OOO may comprise entirely national consultants. - 58 - SummaryAssessment of AgenciesCapacitiesto implementprocurement: DPVCTRF, through the Procurement Desk (Bureau des MarchCs) o f its Administrative and Financial Service, will be responsible for procurement o f services, goods, and all other consulting services for all components except those mentioned under (b) hereafter. As of today, DPVCTRF has a limited number o f staff able to manage procurement aspects. The staff has a good knowledge o f national procurement but has no recent experience on Bank financed projects. The capacity o f DPVCTRF represents an average procurement risk; DSPR o f the MinistBre de 1'Amknagement du Territoire, de 1'Eau et de 1'Environnement (Moroccan Ministry o f Land Management, Water and Environment (MATEE) will be responsible for procurement o f consulting services for the capacity building o f the Ministry's staff and of procurement o f some goods. The number o f transactions at this level i s expected to be low. Procurement at this level will be carried out by the Procurement Service (Service des MarchCs) o f the Administrative and Financial Division o f the Ministry. The staff i s incharge o f the procurement o f the whole Ministry andhas a satisfactory capacity. Nevertheless, they have no recent experience on Bank financed projects. Given the number o f transactions to be carried by this agency, the procurement risk is considered to be low; The national legislation on procurement o f goods and works, with some exceptions, is generally in line with the Bank's guidelines. This is not the case for the selection and employment o f consultants which will be carried out accordingto Bank Guidelines. National Competitive Bidding (NCB) Provisions: Goods estimated to cost less than US$500,000 per contract may be procured under contracts awarded on the basis o f National Competitive Bidding in accordance with procedures acceptable to the Bank. Said procedures shall ensure, inter alia, that: The bidding documents shall clearly explain the method o f biddingby lot (if applicable), the bidevaluation procedures, contract award criteria andbidder qualification criteria; Technical, administrative and financial envelopes are publicly and simultaneously opened with theprice readaloud andrecorded; Bids shall be evaluated on price and any other criteria disclosed inthe biddocuments and quantified inmonetary terms; Contracts are awarded to the qualified bidder following the criteria referred to in the preceding sub-paragraph (i), the lowest evaluated responsive bid; with The requirement for bidders to have a local representative, established in the territory o f the Guarantor, shall not apply; and The evaluation method for procurement o f goods should be on a lot basis, rather than on an article basis. - 59 - 12. The overall procurement risk is average. Inorder to mitigate the risk, it has been agreed to recruit a consultant at the PMU level who will be in charge o f the supervision, coordination and assistancetowards implementing agencies interms o fprocurement. As part o fthe PMU, the Consultant will also act as the focal point o f communicationwith the Bank. 13. Training of ASP Implementing Agencies: In view o f the procurement capacity shortfalls o f most ASP implementing agencies, the Bank will conduct extensive project launch workshops, in line with the ASP OM. In addition, on-the-job procurement training and workshops will be part o f every supervision mission, untilcapacities have reached a satisfactory level. Training will be provided either through the Bank's own resources or through established training providers. Furthermore, the ASP generic OM was designed specifically to help in buildingcapacity on a continualbasis. 14. ProcurementPlan: An 18monthprocurement planhasbeenpreparedandis attached. 15. Publication of Results and Debriefing: Publication o f contract awards would be required for all ICB, LIB, NCB, Direct Contracting and the Selection o f Consultants for contracts exceeding a value o fUS$200,000. Inaddition, where pre-qualification has taken place, the list o f pre-qualified bidders will be published. With regardto ICB, and LIB, and large-value consulting contracts, ASP beneficiaries would be required to assure publication o f contract awards as soon as the Bank has issued its `no objection' notice to the recommendedaward. With regard to Direct Contracting andNCB, publicationo f contract awards could be inaggregate form on a quarterly basis. All consultants competing for an assignment involving the submission o f separate technical and financial proposals, irrespective o f its estimated contract value, would be informed o f the result o f the technical evaluation (number o f points that each firm received), before opening o fthe financial proposals and, ifthey have secured the minimumqualifying mark stated inthe Request for Proposals, they would be invited to attend the opening o f the financial proposals. The implementing agencies o f ASP beneficiaries would be required to offer debriefings to unsuccessful bidders and consultants. 16. Fraud, Coercision and Corruption:All procuring entities as well as bidders, suppliers and contractors shall observe the highest standard o f the ethics during the procurement and execution o f contracts financed under the project in accordance with paragraphs 1.15 & 1.16 o f the procurement guidelines andparagraphs 1.25 & 1.26 o fthe consultants guidelines. 17. Frequency of procurement supervision: In addition to the review of ongoing procurement activities to be carried out duringevery Bank supervisionmission o fthe Project, the capacity assessment o f implementing agencies has indicated the need to visit the field units once every twelve months, inorder to carry out a procurement review o f procurement transactions on an ex-post basis, using a randomly selected sample o fpreviously awarded contracts. At the same time, improvements in procurement capacity will be evaluated and the updated Procurement Planswill bereviewed. To the extent possible, thesereviews would be conductedconcurrently. - 60 - a 1 k E w m 2 0 9 0 0" 0 0 8 v, 4 A V V I 4 \o I 3 Y 111 1-1 I- ____ 1- cd E: ~ I 3 I I _I .. 1- 8 .I c) Z 0 'I 8 W 9 W 0 n P E*3 .I 0 ?"W c) -. Annex 9: IncrementalCostAnalysisfor OverallASP-P1 NationalDevelopmentObjectivesofParticipatingCountries 1. The seven countries participating in ASP-P1 have, to varying degrees, adopted environment and development programs aimed at eradicating poverty, safeguarding human health, conserving the environment and building capacity o f Government and civil society to address these issues. Inaddition, ASP-P1 will support a further eight countries, to prepare for a second follow-on project calledASP-P2. 2. By addressing the problem o f obsolete pesticides, countries will protect some o f their most vulnerable inhabitants from potential chemical poisoning o f water supplies, crops, animals and ecosystems. Inaddition the capacity o f Government and civil society to prevent recurrence o f these problems will be built. 3. While many African Governments and agencies have begun to implement projects and programs to address the problem o f obsolete pesticides, additional financial and technical resources are required from the international community to allow these efforts to be fully successful. ASP-P1GlobalEnvironmentalObjectives 4. ASP-P1 will directly contribute to the GEO: Reduction o f effects o f POPSon the global environment. Specifically, ASP-P1will address: (a) improving the quality o f life in the poor communities, by reducing environmental healthrisks; (b) improving environmental protection; and (c) enhancing the capacity o f the agricultural sector to better manage crop pests. 5. InASP-P1, the GEFwill support sevenAfiican countries (Tunisia, Morocco, SouthAfrica, Ethiopia, Tanzania, Mali andNigeria) to eradicate publicly-held stocks o f obsolete pesticides and prevent their re-occurrence. An additional eight ASP-P2 countries (to be selected), will also be supported to prepare follow-on projects. 6. The problem o f obsolete pesticide stockpiles and associated waste i s not just a national problem. Scientific studies show that POPSare a global threat because they are persistent; they easily migrate through water and other means across national boundaries and even continents, andaccumulate inlivingorganisms far away from the original points o fcontamination. 7. In supporting ASP-Ply the international community will not only be supporting participating countries to eradicate a national threat to humanhealth and the environment but an escalating global threat as well. - 66 - 8. Baseline Scenario: The lack o f comprehensive management strategies over the past 40 years, combined with the following factors have contributed to the current situation: product bans: bannedpesticides that remain unused over time; inadequate storage and stock management: pesticides have a limited shelf life which i s shortened ifthey are not stored properly; unsuitable products or packaging: poor product specifications, unavailability o f required applicationequipment and lack o f labels inforeign languages; donation or purchase in excess o f need: excess products often deteriorate during storage; lack o f co-ordination among donor agencies: duplicated, unsolicited or inappropriate donations; commerciallentrepreneurial interest: over-assessment o f need, inappropriate product supply and corruption; and Government policy: central procurement o fpesticides and heavy subsidies for special programs like locust control, lack o f record keeping and poor monitoring o f the pesticide sector. 9. Obsolete pesticide stores can be found in numerous locations, and as a result o f accumulation at various steps inpesticide distribution anduse. Pesticides are often imported into Africa, although some may be manufactured on the continent. Following their manufacture and/or import into Africa, the pesticides are transported to wholesale storage and distribution sites. The pesticides are then sold and distributed to major users, retail stores and individual users. Major users, such as Government agencies, major industries, or industrial farms, may then either store or apply the pesticides. Smaller retail stores will re-sell pesticides in smaller quantities to individual users, or store them for sale at a later date. Individual users may immediately apply the pesticides, or store them for later use. The potential exists at each o f these sites (wholesale distributor site, major user, retail store and individual user) for pesticide obsolescence to occur. 10. Pesticides that are not sold prior to their expiration date become obsolete, and may be found within wholesale sites and in smaller stores. Pesticides that were purchased either by major users or by individual users and were not used may also become obsolete. While individual users may own and store obsolete pesticides which may pose grave health risks. These sources are outside the scope o f the Project andthe environmental and social assessment. 11. Although the condition o f pesticide stores vary from country to country, the overall condition o f current stores (as confirmed by site visits in several countries) present serious humanhealth andenvironmental risks. Although some countries have beguninventory, cleanup and disposal activities, many African pesticide stores have yet to be inventoried, let alone stabilized and subjected to remediation. 12. Storage sites may lack proper ventilation and pose serious health risks due to their proximity to houses and workplaces, their location on flood plains or near areas with highwater - 67 - tables. The risks posed by such stores include the risk o f fire, and o f contamination o f local drinkingwater from infiltrationthrough contaminated soils. 13. One o f the greatest challenges facing ASP-P1 and project planners i s the uncertainty surrounding the quantity and location o f obsolete pesticide stores currently inAfrica. Although several countries have completed initial and/or detailed inventories, many others have yet to gain a clear idea o f the quantities, nature, locations and conditions o f pesticide stores within their boundaries. 14. Inmanycases, pesticide containers havedeteriorated andpesticideshaveescapedinto the surrounding environment. One recent country report stated that "containers have deteriorated, corroded and started leaking, while bags have perished, spilling their contents on floors or directly on the soil." Another report stated that "the stores themselves are often in poor condition anddo not comply with FA0 guidelines on pesticide storage." 15. Much o f the difficulty in estimating the total quantity o f obsolete pesticides (and the associated heavily contaminated soils and packaging) can be attributed to decades o f varying degrees o f record keeping and documentation o f pesticide imports and stockpiling, as well as little to no detailed inventory assessment. Efforts to gain a detailed understanding o f the nature and distribution o f obsolete pesticide stores may be hampered by a number o f factors, including: damaged, worn containers and leaked pesticides; missing or worn o f f labels; existence or location o f small storage sites not recorded; remote location o f some storage sites; and, no inventories at storage sites. 16. An additional difficulty inestimating the quantity o f obsolete pesticides in Africa is the potential for fluctuations in the amount o f obsolete pesticides within individual storage sites as useable pesticides pass their expiration dates and become obsolete. Where no inventories have yet been undertaken there is an urgent need to begin detailed inventories to help verify the status o f the stock andthe need for clean up and disposal. Such data is essential to program andproject planners to ensure that the sites that pose the greatest environmental and humanhealth risks are stabilized andcleaned up. 17. Despite the above difficulties, the following baseline scenario has been assembled for the countries involved inASP-P 1. ASP-PI Component 1: Country Operations 18. This component is concerned with disposal o f obsolete pesticides, prevention, capacity development andproject management. 19. Between 1992 and 1998 the following disposal operations were successfully completed. Approximately 3,240 tons o f obsolete pesticides were removed during this period (see table below). - 6 8 - DisposaloperationsinknownAfrican countries: 1991-1998 BletedPesticideDisposalOpe Product(s) Niger Dieldrin 60 USAID/GTZ/Shell 1991 Kenya Various 100 ICI, Twiga Chemicals 1993 Uganda Dieldrin 50 FAOA-JNCDF 1993 Madagascar Dieldrin 70 GTZ 1993 Malawi Aerosol waste, contaminated soil 70 Shell 1994 Mozambique DDT/monocrotophos 160 GTZ 1994 South Africa various 1,000 Government and Private Sector DirectorateGeneral for 1995 Tanzania Various products 280 International Cooperation (DGIS) 1996 Tanzania DNOC 57 GTZ 1997 Zambia Various products 360 FAO/DGIS/GTZ 1997 Seychelles Various products 12 FAO/DGIS 1997 Mauritania Dieldrin 200 GTZ/Shell 1997/98 Cote d'Ivoire Various, sludge, contaminated soil 821 Shell 20. Between 1990 and 2004 approximately 4,340 tons o f obsolete pesticides were disposed o f with an estimated cost o fUS$15 million. 21. Regarding disposal operations, under the baseline scenario, all o f Africa would probably spend no more than US$1 million to US$3 million on disposal operations per annum. This amounts to US$4 million to US$12 million over ASP-Pl's four-year project period. The amount o f obsolete pesticide stocks which could be disposed o f across Africa at the historical disposal cost o f US$3,400 per tons is 300-900 tons per annum or 1,200 to 3,600 tons over a four-year period. - 69 - ApproximateDisposalFiguresfor Africa per Annum 160 560,000 1992 0 0 1993 190 665,000 1994 160 560,000 1995 280 980,000 1996 57 199,500 1997 572 2,002,000 1998 821 2,873,500 1999 0 0 2000 900 3,150,000 2001 0 0 2002 1,200 4,200,000 22. Under the baseline scenario it i s not entirely possible to estimate or know what resources would be devoted to the six GEF-supported countries (Ethiopia, Mali, Morocco, South Africa, Tanzania and Tunisia) in ASP-P1 over the four year period for the safe disposal o f obsolete pesticides. If, for demonstration purposes, 30 percent o f the baseline resources for Africa were allocated to these countries, this would result in approximately US$1.3 million to US$4 million being devoted to the disposal o f approximately 400 to 1,200 tons o f obsolete pesticide over the four year project period (see table below). Since these six countries contain an estimated 4,850 tons o f obsolete pesticide stocks, the threat to the local andglobal environment would remain. - 70 - EstimatedTons of ObsoletePesticidesinASP-P1 Countries18 Morocco 700 Approximately 225 None Nigeria 500 To be confmed by Project will not address inventory disposal Extensiveclean up already South Africa 250 To be confirmed undertaken and tentative inventory exists Tanzania 1,200 To be confirmedby None inventory Tunisia 1,200 128 pooledinto 17 None sites 5,350 - estimated 4,850 Inventoriesto confirm Total tons to be disposed of byASP-P1 (Nigeria quantity, number of sites and excluded) types of pesticide 23. Insummary, baseline resources ofUS$4 millionare assumed for the project duration for the ASP-P1 countries. ASP-PI Component 2: Technical Suuuort 24. Technical support andrelated project monitoring is currently provided on an ad hoc basis to countries through FAO, UNEP, WHO, Base1Convention Regional Centers andNGOs. Under the baseline scenario, this is not expected to amount to more than US$400,000 for the four-year period. ASP-PI Component 3: Cross-Cutting Activities 25. This component is concerned with overall communication on ASP issues, NGO capacity buildingactivities, country adoption o f the various chemical conventions, and the assessment o f new technologies for the disposal o f obsolete pesticides. The baseline scenario for the cross- cutting activity support is somewhat hypotheticalas no such unit would exist without ASP-P1 It . is however assumed that some o f these activities would conceivably take place without ASP at a fimdinglevel o fUS$0.2 million over the four-year period. '*Thisinformationhas already beenpublicly disclosed as part o f the Environment and Social Assessment Synthesis Report (please refer to page 31). - 71- ASP-PI ComDonent4: Proiect Coordination 26. This component is concerned with the overall coordination o f effort to implement multi- country and multi-donor pesticide disposal and prevention activities. Under the baseline scenario no coordination mechanism would exist as this is a completely ASP-hded initiative. Nevertheless some form o f ad hoc coordination and communication would probably take place between various entities involved in obsolete pesticide disposal and prevention operations. Therefore, a baseline budget o f US$0.2 million i s assumed for the four years. GEFAlternative 27. The objective o f the GEF alternative is to achieve a quantum leap in efforts to eliminate obsolete pesticides in Africa and prevent their recurrence. This includes eliminating the most dangerous and difficult to dispose o f pesticides, which represent a significant threat to human health, biodiversity andinternational waters. 28. With 50,000 tons o f obsolete pesticides inAfrica and a baseline disposal rate o f no more than 1,200 tons per annum, it willtake over 41 years to dispose o fall stocks, assuming no m h e r growth. The proposed GEF alternative aims to tackle the problem within a 15-year period. It will achieve this by takinga continent-wide approach, applying lessons learned from past efforts, and buildingon existing initiatives. The ASP will be able to apply the volume and quality o f resources necessary to provide a comprehensive solution to cleaning up and disposing o f obsolete pesticides and dealing with the problem o f contaminated soils. Specific outputs of the program will be country-based clean up and disposal operations, and in-country and region-wide pesticide management programs to prevent a recurrence o f the problem. The GEF alternative therefore aims to support a comprehensive solution and will leverage significant co-financing to achieve this. 29. The GEF alternative is US$64.81 million. The GEF will provide US$25 million comprising o f US$21.7 million channeled through the Bank and US$3.26 million provided directly to FAO. Additional co-financing has been leveraged including: US$7.06 million from the Bank MDTF to support Mali (contaminated soils), the ASP-PCU, preparation for ASP-P2 countries and support to the CCAME/ WWF activities; US$2.7 million from the DGF for the PCU, TSU CCAME and preparation o f ASP-P2 countries; Government contributions of US$3.95 million; US$4.07 million provided by Belgium to Ethiopia; US$2.29 million provided by Canada via CIDA to Nigeria; USS$1.13 million provided by Japan to Ethiopia; US$1.62 million provided by FFEM to Mali and to Tunisia; US$1.02 million provided by Finland to Ethiopia; and US$0.08 million co-financing provided by FA0 to the TSU. US$lO.OO million will beprovidedbythe AfDB to a TF for allocationto Country Operations. - 72 - Component 1: Countw Operations (7 countries) GEF alternative: US$55.37 million (GEF funding US$21.74 million) 30. GEF will provide incremental funding to ASP-P1 in six countries to address the issue o f obsolete pesticides. Nigeria will fund its own participation in this component. The GEF will support another eight ASP-P2 countries to prepare projects. Under the GEF alternative, incremental funding will be provided to support in-country to: eliminate inventoried publicly-held obsolete pesticide stocks, soils and contaminated containers amounting to approximately 4,850 tons (GEF: US$16.24 million; Co- financing: US$7.47 million). Country inventories will identify the exact tons and if need be, the grant agreements will be amended to prioritize the removal o f the obsolete pesticides above other activities; prevent accumulation o f obsolete pesticides (GEF: US$2.37 million; Co-financing: US$3,12 million); provide capacity-building to Governments to strengthen pesticide management and regulation(GEF: US$1 million; Co-financing: US$0.55 million); to support country project management (GEF: US$2.13 million; Co-financing: US$3.04 million); and support to eight ASP-P2 countries to prepare projects andto prevent obsolete pesticides from re-occurring (Co-financing: US$3.01 million). Component 2: Technical Support Unit (FAO-TSU) GEF alternative: US$4.70 million (GEF funding US$3.26 million) 31. Incremental fundingwill bemade available to assist the TSU to: (a) provide technical assistance to countries inthe development o f the Country OMSand the completion o f preparatory activities related to training and capacity building (GEF:US$0.06 million; Co-financing: US$0.38 million); (b) provide technical assistance to the six countries to implement disposal operations (GEF: US$0.93 million; Co-financing: US$O.10million); (c) provide technical assistance to seven countries to build their capacity to prevent re- occurrence o f the obsolete pesticide problem (GEF: US$0.93 million; Co-financing: US$0.54 million); and (d) provide overall country M&E o f country performance against agreed technical standards (GEF:US$1.3 million; Co-financing: US$0.03 million). - 73 - Comuonent 3: Cross-Cutting Activities ( W F ) GEF alternative: US$2.65 million (GEF funding US$2.40million) 32. Incremental funding will bemade available to support three sub-components to: (a) provide overall knowledge management and communication about the project (GEF: US$O million; Co-financing: US$0.94 million); (b) support to NGO involvement (GEF: US$O million; Co-financing: US$1.08 million); (c) determine the best new technology choices for the disposal o f obsolete pesticides for the second project, ASP-P2 (GEF: US$Omillion; Co-financing: US$0.43 million). Comuonent 4: Project Coordination (Bank) GEF alternative: US$1.87million (GEF funding US$Omillion) 33. Incremental funding will be made available to support coordination among the seven ASP-P1 countries, the eight ASP-P2 countries, CCAME, TSU, the various governance structures and funders anddonors, including the Bank. Incremental Co-financing will be usedto: (a) coordinate the provision o f the overall ASP bi-annual work plan and progress report through inputs received from the various countries andglobal components; (b) support the governance structures including the ASP-SC, which will review these reports and provide recommendations; and (c) report on the findings o f the independently commissionedM&E consultants. - 74 - Cost Summaries All costs inUS$ million Baseline GEF Increment Increment Increment scenario Alternative 1 1 1 1 1 Component I I 1 GEF Others Total I I I I I I 1. country 4.00 55.37 21.74 19.54 51.37 1I 11 II Operations 2. Technical 0.40 4.71 3.26 1.05 support 3. Cross-Cutting 0.20 2.65 0 2.45 Activities 0 1.87 I 1*88 II Total I 4.81 I 64.80 1 25.0 34.91 60.0 IncrementalCostMatrix --million) Component category cost DomesticBenefit GlobalBenefit ' Sporadic country disposal Component 1: operations remove up to prevention operations Baseline Total: 4.00 pesticideso 1,200 tonsagainst f obsolete provide minimalprotectionto the global environment. approximated 4,800 tons in six counties. Country Obsolete pesticides are Disposal operations remove a Operations disposed o f and prevention potentialtrans-boundary GEF measures introducedto threat to global ecosystems Alternative 55*37 safeguard local inhabitants and preventionmeasures and the surrounding prevent recurrence o f the environment. problem. Increment Total: 51.37 Technical support to country Technical support provides Component 2: disposal andprevention to the Baseline Total: 0.40 operations meet a small :?gallimitedprotection environment. percentage o f country demands. Technical su port enables Technical support enables Technical countries to ully implement P Support GEF countries to implement Total: 4.71 disposal andprevenhon disposal andprevention A1ternative measures. measuresto safeguard the global environment. Increment Total: 4.3 1 - 75 - Component DomesticBenefit GlobalBenefit Countries and NGO's Dueto low levels of cross- ComDonent3: receive sporadic information cutting support, knowledge about disposal and and best practice i s Baseline Total: 0.20 prevention activities and inadequately disseminated new relatedtechnologies. thereby havinga limited Cross-Cutting positive impact on the global Activities I knvironmeit. I Countries are readily able to Best mactice information and access information on knowledge i s disseminated to disposal and revention countries and civil society Alternative GEF Total: 2.65 activities anBNGO's are thereby reducingthe able to enhancecivil society pesticide risk to the global 4- knowledge. environment. Increment Total: 2.45 Some ad hoc coordination Some coordinated su port to ComDonent4: disposal activities between sporadic disposal an B Baseline Total: 0.20 countries and donors may prevention operations takes take place. lace with marginalbenefit for the global environment. Stron coordinationtakes A coordinated responsetakes Project place %etween countries and place insevenAfrican Coordination sup orting agenciesthereby countries to remove a global ena t:lingcountries to pollution threat. implementbest ractice national disposa and P preventionmeasures. Increment Total: 1.87 Baseline I 4.80 Total GEF 64.81 Alternative ~~ IncrementalCost GEF Non-GEF Total FullProject 25.00 35.0 60.0 Preparation 0.2 0.9 ~~ GrandTotal 25.70 35.2 60.9 - 76 - Annex 10: SafeguardPolicyIssues Background 1. ASP-P1 triggers two safeguards policies: OP 4.01 on EAs because it has the potential to significantly impact the environment adversely; and OP 4.09 on Pest Management because it deals with obsolete pesticides and pesticide management. Compliance with the above two safeguards policies will be ensured as follows: OP4.01/ BP401on EnvironmentalAssessment 2. ASP-Pl's potential adverse environmental impacts are principally related to pesticide storage, transportation, disposal and site remediation activities in country operations. Due to their significance, the project is classified as Category A and requires preparation o f a CESA, including an EMP. Given the framework nature o f ASP (under which the detailed technical design and location o f the project country level activities take detailed shape only after completion o f pesticide inventories during the Project implementation), the preparation o f the CESA, including the EMP, takes place intwo stages. 3. The Project environmental and social impacts were assessed in a Framework Environmental Assessment (FEA) and their mitigation measures were outlined in an Environmental and Social Management Framework (ESMF). The Environmental and Social Assessment Synthesis Report was prepared based on these documents andwill serve as guidance for the preparation o f the respective CESA including EMP. The Environmental and Social Assessment Synthesis Report was disclosed prior to appraisal in all Project countries by the individual PMUs or their host agencies and in the InfoShop by March 17, 2004. The Project Integrated Safeguards Data Sheet was disclosed on October 26, 2005. The Environmental and Social Assessment Summary Report was disclosed to the Board on October 28,2004. 4. The Environmental and Social Assessment Synthesis Report provides guidance, screening procedures and information to those responsible for the detailed design, planningand implementation o f the individual country operations. The guidance reflects the applicability and relevance o f key international standards and agreements, as well as the Bank's safeguard policies, including preparation o f detailed EMPs (as part o f the CESAs). 5. A CESA including the EMP will be prepared during project implementation for the Kingdom o f Morocco. It spells out the mechanisms that will allow the Bank to properly exercise its fiduciary responsibilities regarding the implementation o f its safeguards policies, e.g., the need for a Bank-issued "No Objection" on the screening and priority ranking process, and on TORs for o f individual cleanup operations. TORs for the preparation o f the CESA are provided in the generic OM. Morocco has to specify in its Country OM how it will implement the CESAs. - 77 - 6. The Environmental and Social Assessment Synthesis Report presents a framework of mitigation measures. Special attentionwas given to the following issues: (a) disclosure o f information in order to maximize the efficiency and the synergy o f public andprivate efforts indealing with pollution and safety hazards; (b) emergency preparation andresponse plans, especially, duringhauling andtransport o f hazardous products; (c) the scope o f the preventionactivities inrelationto pest management; (d) the handling o f contaminated areas in the vicinity o f dwellings or other property, in particular, compensation issues incases where cleanup would be impractical; (e) the handlingo f contaminated wells andother water sources; and (f) the need to take into consideration the entire "chain o f custody" during sampling, transportation and disposal operations, irrespective o f their geographical location. 7. The second stage will be the preparation o f the CESA. Duringproject implementation, the PMUwill ensure that all individual cleanup operations are subject to the CESA andthat their specific adverse environmental impacts are adequately addressed through preparation and implementation o f corresponding EMP. The EMP will reflect the applicable national or international standards, provisions o f the Rotterdam, Basel and Stockholm Conventions and other relevant Codes of Practice and guidelines, requiring that contractors demonstrate experience and competence inremoval and cleanup o f hazardous materials and set requirements for quality control and technical supervision by the TSU. This will include requiring that the packaging, labeling, and transport o f stocks and wastes comply with the internationally accepted standards andprocedures found inthe UN"Orange Book". Inaddition, the technologies selected for disposing o f the stockpiles and wastes will be required to meet both the Stockholm Convention Best Available TechniquesBest Environmental Practice (BATBEP) guidelines and the appropriate Basel Convention and Stockholm Convention Technical Guidelines for Environmentally Sound Management. 8. The CESA including the EMP will be disclosed in Morocco and in the InfoShop according to the Bank's Policy on Disclosure o f Information. Their preparation will involve adequate public participation infollowing the requirements o f OP 4.01. The Bank and TSU will monitor their implementation following the procedures outlined inthe OM. 9. Training on the preparation and implementation o f CESA and risk assessments will be provided through the TSU and the Bank at start o f project implementation, as described in the Morocco OM. OP4.09 on PestManagement 10. OP 4.09 requires preparation o f a Pest Management Plan (PMP). The entire Project is dedicated to improve pesticide and pest management issues including prevention, cleanup and measures toward strengthening pesticide management, prevention o f pesticide stockpiling and promotion o f IPM. These activities are described in detail in this PAD and other project documents. The Project will promote awareness and improved regulations andbetter handlingo f - 78 - pesticides and will also promote the adoption by countries o f IPMpolicies. In addition to the EMP (prepared as part o f the CESA) the Project documents will meet all PMP requirements. Hence, a stand alone PMPwill not be prepared. Additional SafeguardConsiderations 11. Involuntary Resettlement: Although current information indicates that pesticides are usually stored away from people, the project may identify situations when proximity o f pesticide stores to people would raise concerns for their health and safety during cleanup and disposal. Similarly, a need may arise during implementation to condemn certain sites or structures (e.g., warehouses, district back offices that might have been used for storage) as being too contaminatedto merit cleanup. 12. Normally, such a situation would trigger OP/BP 4.12 and would require the preparation of a Resettlement Policy Framework. However, given the multi-country nature o f ASP-P1,and the number o f cleanup sites within each country, it i s not feasible to prepare an umbrella framework for project countries given their dissimilar legislation and policies related to land acquisition and resettlement. Similarly, it i s neither practical nor realistic to prepare a separate framework for each country, especially when there i s no confirmed evidence that existing pesticide siteshtorages will result in land acquisition or resettlement. Because of this particular situation, it has been decidednot to trigger OP/BP 4.12 at this stage. Rather, a bindingcovenant inthe Project legal document will be made, stating that each country will prepare a CESA prior to implementation o f disposal activities. Each CESA will provide precise information and data on whether there are structures or sites or anything else that needs to be condemned or treated, resulting in involuntary resettlement, and acquisition, or total and partial loss o f livelihood. In such a case, a Resettlement Action Plan (RAP) or several RAPSfor affected sites will be prepared in compliance with OP/BP 4.12 by the Government(s) concerned and cleared by the Bank. Each RAP will provide that, among other things, should any person be temporarily or permanently relocated as a result o f project activities, compensation will be provided in accordance with the provisions o f OP 4.12 andBP 4.12. 13. Natural Habitats: Although current information indicates that pesticides are usually stored away from any critical or other natural habitat, the Project may identify situations when proximity o f pesticide stores to protected areas, important aquatic resources, or any terrestrial, freshwater, coastal, and marine ecosystems would raise concerns for their environmental health over time. Duringproject implementation, ifa stock o f obsolete pesticides, pesticide wastes or a contaminated site happen to be located inthe proximity o f a critical natural habitat(s), then such a situation would trigger OP 4.04 and would require that the EA process (OP 4.01) would identify such habitats within a proposed project's area o f influence and will take the necessary measures to avoid or minimize damage to natural habitats to the extent feasible. If significant conversion or degradation o f a non-critical natural habitat is needed to achieve a project's key objectives, the project will include an evaluation of the alternatives to show there are no feasible alternatives as well as mitigation measures acceptable to the Bank. - 79 - Annex 11: ProjectPreparationandSupervision PCNReview July 17, 2002 Initial PID to InfoShop August 1,2002 IntegratedSafeguardsData Sheet (ISDS) July 24, 2003 AppraisalMissionDepart~re'~ April 2004 March 28,2004 Negotiations*' May2006 May 15,2006 BoardApproval October 31,2006 I PlannedDate of Effectiveness I February 12,2007 I I PlannedDate ofMid-TermReview November30,2008 PlannedClosing Date June 30,2010 PreparedBy: '14. ASP-P1 has beenconceived anddesigned by a group o fNGOs (WWF, PAN-UKandPAN- Africa), FAO, UNEP, and other international organizations, including the Bank and the private sector, inclose collaborationwith the ASP countries inAfrica. PreparationAssistance: 15. GEF, as the interim financing mechanismfor the Stockholm Convention, has contributed preparation funding together with other financial or in-kind resources from other partner institutions - Canada and FA0 CooperativeProgram. l9Appraisal missions were undertaken in the seven countries participating in ASP-P1, the first of which departed March28,2004 andthe seventhmissionendedMay 1,2004. Negotiationstook place with SouthAfrica (July 6-8,2005) and Tunisia (July 13-15,2005). - 8 0 - The Morocco ASP Project-P1 Team includes the following staff and consultants: NAME SPECIALTY Peter Kristensen AFTS4 Senior Environmental Specialist (Task I Team Leader, TTL) Denis Jordy 1 DEPARTMENT 111 AFTS4 Senior Agricultural Specialist (Co-TTL) StevenMab; M N S R E 1 Senior Operations Officer Christopher Warner 111 AFTS1 1 Senior Environmental Specialist Hadi Abushakra .-.................... I ChiefLegal ......".......... ....." - .................................... 'i MNSRE 1................... LEGMS ........................ ..................... -..................................... .." Counsel .."................ .. ~ " ~ ~ " ~ " ""'r " ~ " AllanChristine j Operations Analyst (Portfolio Manager) SherifArif Reg. Environmental and Safeguards i Advisor MeryemBenchemsi 1 MNSMA Financial Management Specialist Dominique Bichara i LEGMS 1111 Sr. Counsel ................... StefanieBrackmann MNSRE Specialist " ................................................................ .............................................................................. .................................................................... ...." ..... .................... ~ Zakia Chummun 11 ~ MNSRE 1I Environmental ........... " " " LanguageProgram Assistant Charles DiLeva LEGEN 1 Chief................... Counsel " ............................... ....... .......................................... ....... ~ " ...................."........."...........".................... ~ ~ " ....."........................... ~ Steve Gorman ! Lead Environmental Specialist MuthoniKaniaru LEGAF I counsel ............."........".......................................................... Lucie Tran AFTS4 1 Operations Officer _". " ..................."............................................................... ....... ........................................ ~ " ..................... 1.............. ............................ " ~ " " " Frederick Kranz 1jI MNACS Senior Procurement Specialist ~ I ............................................... Abdelaziz Lagnaoui " ............................................................ ! Senior Pest Management Specialist". ......... ~ Dahlia Lotayef rSenior GEF Operations Coordinato Angeline Mani 1 M N S R E........................................................................................................................................................................................................... 1 " ....................... MohamedMedouar 1 LanguageProgram AssistantSpecialist Senior Rural Development ................................................ " .... " " " "....... Laila Moudden I MNCMA I""--..... j ProgramAssistant Alaleh Motamedi ......."........ ..".......I.....................-,.................................. _ " -,-, .... .........-,..................................................... " . Knut@sal . ........... ..................................................................................................... ~ " " ~ EllenTynan Marie-JeanneNdiaye 1 AFTS4 LanguageProgramAssistant ~ - 81 - Annex 12: Documentsinthe ProjectFile BankAssessment e ASP-P1 Project Coordination Unit:Terms o fReference, Budget andWork Plan, February 2005 e Framework Operations Manual e Draft FinancialManagementReport e Country Pre-Appraisal Reports e Concept Paper for aKnowledge Management Systemfor ASP 0 ProcurementAssessments for Ethiopia, Mali, Morocco, Nigeria, SouthAfrica, Tanzania, Tunisia, DBSA, WWF e ProcurementPlans for Ethiopia, Mali, Morocco, Nigeria, SouthAfrica, Tanzania, Tunisia, WWF e Financial ManagementAssessments for Ethiopia, Mali, Morocco, Nigeria, South Africa, Tanzania, Tunisia, WWF, PAN-UK, DBSA e Appraisal Aide Memoires for ASP-PCU, Ethiopia, Mali, Morocco, Nigeria, South Africa, Tanzania, Tunisia, and WWF e Environmental and Social Assessment Synthesis Report, March 17,2004 e Environmental Assessment - Executive Summary, October 2004 e Africa Stockpiles Programme (ASP) Generic Operational Manual,May 2005 e COSTAB Tables for ASP-P1, June 2005 OTHERS Basel Convention, 2002: Technical Guidelines for Environmentally Sound Management o f Persistent Organic Pollutant Wastes. Secretariat of the Basel Convention, United Nations Office at Geneva Democratic Republic of Ethiopia, Africa Stockpiles Programme, Obsolete PesticidesProject, SecondPhase Country Report, February2003 Food and Agriculture Organization (FAO) and WHO, 2001: Manual on Development and Use o f FA0 and WHO Specifications for Pesticides. First Edition. Prepared by the FAO/WHO Food and Agriculture Organization (FAO), 2001: FA0 Pesticides Disposal Series No 1. Prevention and disposal of obsolete and unwanted pesticide stocks in Africa and the Near East. First ConsultationMeeting Food and Agriculture Organization (FAO), 2001: FA0 Pesticides Disposal Series No 2. Prevention of accumulation of obsoletepesticide stocks Food and Agriculture Organization (FAO), 2001: FA0 Pesticides Disposal Series No 3. Pesticide storage andstock control manual Food and Agriculture Organization (FAO), 2001: FA0 Pesticides Disposal Series No 4. Disposal ofbulk quantities of obsoletepesticides indeveloping countries - 82 - e Food and Agriculture Organization (FAO), 2001: FA0 Pesticides Disposal Series No 5. Prevention and disposal o f obsolete and unwanted pesticide stocks in Africa and the Near East. SecondConsultation Meeting e Food and Agriculture Organization (FAO), 2001: FA0 Pesticides Disposal Series No 6. Prevention and disposal of obsolete and unwanted pesticide stocks in Africa and the Near East. Third Consultation Meeting e Food and Agriculture Organization (FAO), 2001: FA0 Pesticides Disposal Series No 7. Guidelinesfor the managementof small quantities ofunwantedandobsoletepesticides e Food and Agriculture Organization (FAO), 2001: FA0 Pesticides Disposal Series No 8. Assessing soil contamination: areferencemanual a Food and Agriculture Organization (FAO), 2001: FA0 Pesticides Disposal Series No 9. Baseline study on the problemo f obsoletepesticide stocks e Food and Agriculture Organization (FAO), 2005: Technical Support Unit to the Africa Stockpiles Programme (Draft) Helps, K, 2001: Ethiopia- ObsoletePesticideProject. Project Health and Safety Manual Helps, K, 2002: Technical Issues -Liabilities and Risks for the ASP Kristensen, P. 2003: Concept Paper for aKnowledge Management Systemfor the ASP Kristensen, P. and Rader, C., 2001: Strategic Management Approach. Conservation International. PACT Publications e Maroc Rapport -Programme Afiicain sur les Stocks de PesticidesPtrimts, Janvier 2003 e OECD, 1997: Report of the OECD Workshop OnPesticide Risk Indicators. Copenhagen, 21- 23 April 1997 e Ottke, C., Kristensen, P. and Maddox, D.:Monitoring for Impact. World Resources Institute, UnitedNations Environmental Program, Conservation International e Terra Choice and Jacques Whitford: The Africa Stockpiles Programme (ASP) - Framework Environmental Assessment (FEA) andEnvironmental and Social Management Framework (ESMF), January29,2004 e Terra Choice andJacques Whitford: The Africa Stockpiles Programme (ASP) - Framework Environmental Assessment (FEA) andEnvironmental and Social Management Framework (ESMF)-Executive SummaryReport, January29,2004 Tunisie Rapport: Le Programme Africain pour 1'Elimination de Pesticides Obsolbtes (PASP, Mars2003 UnitedRepublic ofTanzania, Obsolete Stockpile Programme, Obsolete Waste Disposal Project Country Report, February, 2003 World Bank, 2002: Toxics and Poverty: The Impact of Toxic Substances on the Poor in Developing Countries; LynGoldman andNga Tran World Bank, 2003: Proceeding from ASP Partners' Meeting and Country Workshop, September 9 to 19,2003 WWF Using Communications and NGO Awareness Raising to Build Capacity in Africa Through the Africa Stockpiles Programme, March2005. - 83 - Annex 13: Statementof LoansandCredits MOROCCO Active Proiects DifferenceBetween Expectedand Actual Orieinal Amount in US$Millions Disbursements' Project ProjectName Frm ID FY IBRD IDA GRANT Cancel. Undisb. Orig. Rev'd PO75808 MA-Adult Literacy(Alpha Maroc) 2003 4.1 1.804875 2.652771 3.2457358 PO43412 MA-Basic EducationReformSup Program 2005 80 58.96412 0.9211904 PO88243 MA-FINANCIAL SECTORDPL 2006 200 68.52271 1.3934368 PO05525 MA-HEALTHMANAGEMENT 1999 66 26.4186 19.57748 40.519043 -0.78963 PO83746 MA-HOUSING SECTORDPL 2005 150 55.90961 4.3644659 MA-IRRIGATION BASED COMMUNITY PO56978 DEV. 2001 32.57 25.63218 20.545288 PO48314 MA-PROTECTEDAREAS MANAGEMENT 2000 10.5 6.603475 6.6034739 PO82754 MA-RURAL ROADS 2004 36.86 34.9272 4.3359445 3.769322 PO69124 MA-RainfedAgriculture Development 2003 26.8 28.3482 3.9411478 PO86877 MA-Rural Water Supply and Sanitation 2006 60 59.78858 PO73531 MA-Social DevelopmentAgency 2002 5 4.120225 ~- 1.2252178 0.475218 Overall Result 661.33 10.5 28.22348 365.0465 87.094944 3.454913 MOROCCO STATEMENTOF IFC'S Heldand Disbursed Portfolio as of 12131/2005 Held Disbursed FY Approval Company Loan Equity Quasi Partic Loan Equity Quasi Partic 2000 Maghreb Inv. Mgt 0 0.02 0 0 0 0.02 0 0 2000 Maghreb InvestP 0 3.4 0 0 0 3.15 0 0 2001 Medi Telecom 52.44 0 22.13 289.83 52.44 0 22.13 289.83 Total Portfolio: 52.44 3.42 22.13 289.83 52.44 3.17 22.13 289.83 Approvals PendingCommitment Loan Equity Quasi Partic 2005 BMCE 0 30 0 0 2002 SGRI 0 0.9 0 0 2004 Meditel Restruct 0 0 -0 0 TotalPendingCommitment: 0 3 0 . 9 -0 0 iviuroccu ai a Zance Annex 14: Count at a Glance PWERWm d SOCW HorcKxO aM.A-north middle- East Lourr- imomc 32.2 305 2,475 1522 .no 2241 1.om 885 4,747 T 1.5 la 1.9 1.o 3.5 1.4 19 5Q 57 50 70 69 70 I 38 44 33 10 13 12 Acwrs C impmwdwa&er B l 89 82 52 72 88 106 103 114 111 106 I15 1Mi 100 113 I I995 m1 zbo5 12.8 33.1 50.0 51.7 25.1 20.7 25.0 25.6 25.4 n-3 33.I 34.4 Trade 16.1 140 18.8 168 193 17.1 27.8 21.4 -6.7 -3.6 2.2 0.1 4.3 4.1 1.2 125.0 7`11 36.3 33.7 33.4 14.t 33.3 '78.4 198595 i99505 2004 Z W S 2oo5-09 2.9 3B 4.2 1.8 4.3 0.8 22 0.7 0.4 26 7.5 5.0 4 7 3.4 5.4 I 1985 1995 2W4 2005 1e.e 14.6 15.9 13.3 33.4 32.9 311.4 312 I S 186 18.3 16.5 18.8 10 A 49.6 52.5 53.8 55.5 5 0 68.0 MA 60.2 628 15.Q 17.3 21.0 20.4 34.4 340 39.3 43.1 $985-95 139505 2001 2005 -0.4 3.4 7.9 -152 235 8 3.5 4.9 3,6 3 2 3.0 3.0 38 33 4.5 5.0 as 2 2 8.1 -1.8 42 4 2 1.5 13.5 1.8 5.8 3.7 3.g 6.7 4 2 8.8 6.0 No&: 2005dataarepreliminaryostina?ss. 'TIsedrarnawlsShDVrburkeytndkatofsinthecountry(inbold)crmpwdwith16income-gmupww;cge.Ifd& aemkurp.lh@diBncndmll be nccmdete. - 85 - 1985 1995 2004 MAS 7.7 6.1 1.5 1a 8 2 0.1 1.5 1.8 16.0 23.8 25.I 27.1 5.B 0.1 0.3 -12 -8.8 -2.3 -33 I - - - I $485 1995 2 M 2005 2.288 e1.400 m 9.739 10,288 546 1.532 1.m 479 284 451 548 477 3.754 5.832 e2ll 3,%2l 10.011 17.825 20.m 507 1.373 1,534 1,470 1,074 1.177 2638 5.m E 4 2,186 3,881 41w) (El too 119 $26 82 122 1% I36 75 82 $5 91 1985 1995 2 M 2005 3,283 0.045 lW58 18.1142 4,419 11243 19"eeP 22.761 -4,157 -2.199 4.101 4.619 -B6 -1318 551 -ma 1R84 2.330 4.881 5m 856 -1.186 kt09 41 976 204 726 1,023 -117 982 -1.835 -1.W 125 3,870 17.577 18.671 10.1 8.5 8.9 8 9 1- 1995 2004 2005 16,056 23,771 17.672 1 2438 3.066 2.524 2258 8261 33 21 20 I K2521 1.428 3,759 zggs 167 630 572 3Qi 1 2 2 2 Cwnpibm of netrexluroeflaw5 Omaalwan& 416 100 413 Omdal aedtor+ 381 -117 -567 Pnuateaodikrs 218 158 -573 F d g ndirectimreshnent(net inffam] 20 02 789 PortfoMwrty [netintinm) 0 20 572 World Bank program COmmtlnrentS 378 433 127 DiSbUSetlWltS 307 426 t29 282 Pnncipalrepoynwrtr 87 350 489 311) NetRam PO ?e -340 4 8 InterestPawents 81 282 105 87 Netiramkn 138 -2oe 444 -135 - 86 - MAP SECTION IBRD 33113R TUNISIA MOROCCO ALGERIA LIBYA ARAB REP. FORMER OF EGYPT SPANISH SAHARA THE MAURITANIA GAMBIA MALI NIGER SENEGAL CHAD ERITREA BURKINA SUDAN GUINEA- FASO DJIBOUTI BISSAU GUINEA BENIN NIGERIA SOMALIA SIERRA ETHIOPIA LEONE CÔTE D'IVOIRE GHANA TOGO CENTRAL LIBERIA AFRICAN REP. CAMEROON EQ. GUINEA UGANDA SÃO TOMÉ AND PRÍNCIPE CONGO KENYA GABON DEM. REP. RWANDA OF CONGO BURUNDI AT L A N T I C I N D I A N TANZANIA O C E A N O C E A N COMOROS AFRICA ANGOLA ZAMBIA MALAWI OBSOLETE PESTICIDES STOCKPILES ESTIMATES* MOZAMBIQUE ZIMBABWE MADAGASCAR NOT QUANTIFIED NAMIBIA BOTSWANA MAURITIUS 0­50 TONS SWAZILAND 50­500 TONS SOUTH LESOTHO 500­1000 TONS AFRICA OVER 1000 TONS This map was produced by the Map Design Unit of The World Bank. The boundaries, colors, denominations and any other information shown on this map do not imply, on the part of The World Bank Group, any judgment on the legal status of any territory, or any endorsement or * Source: FAO data. Does not reflect possibly significant quantities of contaminated soil in Mali and several other countries acceptance of such boundaries. MAY 2005 IBRD 34040 TUNISIA MOROCCO ALGERIA LIBYA ARAB REP. FORMER OF EGYPT SPANISH SAHARA THE MAURITANIA GAMBIA MALI NIGER SENEGAL CHAD ERITREA BURKINA SUDAN GUINEA- FASO DJIBOUTI BISSAU GUINEA BENIN NIGERIA SOMALIA SIERRA ETHIOPIA LEONE CÔTE D'IVOIRE GHANA TOGO CENTRAL LIBERIA AFRICAN REP. CAMEROON EQ. GUINEA UGANDA SÃO TOMÉ AND PRÍNCIPE CONGO KENYA GABON DEM. REP. RWANDA OF CONGO BURUNDI AT L A N T I C I N D I A N TANZANIA O C E A N O C E A N COMOROS ANGOLA ZAMBIA MALAWI MOZAMBIQUE ZIMBABWE MADAGASCAR AFRICA NAMIBIA STOCKPILES PROGRAMME BOTSWANA MAURITIUS SWAZILAND ASP-P1 PARTICIPANT COUNTRIES SOUTH LESOTHO ASP-P2 CANDIDATE COUNTRIES AFRICA This map was produced by the Map Design Unit of The World Bank. The boundaries, colors, denominations and any other information shown on this map do not imply, on the part of The World Bank Group, any judgment on the legal status of any territory, or any endorsement or acceptance of such boundaries. JULY 2005