The World Bank Moldova: Restoring Ecosystems For Marine Pollution Prevention (P505546) Concept Environmental and Social Review Summary Concept Stage (ESRS Concept Stage) Public Disclosure Date Prepared/Updated: 05/07/2024 | Report No: ESRSC04243 Feb 07, 2025 Page 1 of 7 The World Bank Moldova: Restoring Ecosystems For Marine Pollution Prevention (P505546) I. BASIC INFORMATION A. Basic Operation Data Operation ID Product Operation Acronym Approval Fiscal Year P505546 Investment Project Financing (IPF) GEF RE-MAP 2025 Operation Name Moldova: Restoring Ecosystems for Marine Pollution Prevention Country/Region Code Beneficiary country/countries Region Practice Area (Lead) (borrower, recipient) Moldova Moldova EUROPE AND CENTRAL Environment, Natural ASIA Resources & the Blue Economy Borrower(s) Implementing Agency(ies) Estimated Appraisal Date Estimated Board Date Republic of Moldova Ministry of Environment 07-Nov-2024 30-Apr-2025 Estimated Concept Total Project Cost Public Disclosure Review Date 23-Apr-2024 7,903,975.00 Proposed Development Objective The Project Development Objective is to increase the area under sustainable landscape management practices in targeted areas within the Dniester River Basin in Moldova. B. Is the operation being prepared in a Situation of Urgent Need of Assistance or Capacity Constraints, as per Bank IPF Policy, para. 12? No C. Summary Description of Proposed Project Activities The project intends to restore ecosystem processes directly, it will result in expanded areas of healthier ecosystems (restored functionality) and broader range of generated ecosystem services (benefits). All this will ultimately improve landscape/habitat conditions and water quality through reanimated synergies between upstream and downstream ecosystems. Nature-based solutions (NBS) are defined as use of resources and processes already found in nature to restore ecosystems, support communities, and contribute to healthy and resilient economies. NBS for nutrient pollution management leverage, inter alia, the natural filtering and absorption capacities of ecosystems such as wetlands, forests Feb 07, 2025 Page 2 of 7 The World Bank Moldova: Restoring Ecosystems For Marine Pollution Prevention (P505546) to capture, retain, and remove nutrients like nitrogen and phosphorus from runoff, surface water, or groundwater. The project addresses pollution of freshwater environment through enhanced adaptive capacity for upstream ecosystem restoration (at landscape level), all following the EU directives and the Dniester Commission. The proposed Project’s design consists of three components: (i) Component 1: Institutional Capacity Development and Community Engagement; (ii) Component 2: Landscape Restoration and Watershed Management and (iii) Component 3: Project Management, Monitoring and Communication. D. Environmental and Social Overview D.1 Overview of Environmental and Social Project Settings The proposed project intends to manage nutrient pollution in the Dniester River Basin within Moldova. The Dniester River runs along the border with Ukraine to the East and discharges to the Black Sea. The river serves as the primary source of drinking water for Moldova and for a significant portion of Ukraine. It also plays a pivotal role in sustaining Moldova's substantial agricultural sector, accounting for 10% of its GDP. However, the Dniester Basin faces pressing environmental challenges that have far-reaching implications for both Moldova and Ukraine. Within this basin, 94 percent of water bodies have been assessed as at risk of "not achieving good ecological status" according to EU standards, with none classified as "no risk." Agricultural land covers about 75 percent of Moldova’s total land area. Poverty in Moldova is concentrated in rural areas where agriculture takes place. The impacts of agriculture on water are considered substantial with industrial intensification of agriculture leading to increased pollution and treatment costs. Restored ecosystems, including expansion of ecological agriculture as part of sustainable management, would offset these costs and reduce pollution. Currently, protected areas cover 6 percent of the Moldova’s territory, including protected forests and floodplains with a total area of almost 62,000 ha. Republic of Moldova also has 3 sites designated Public Disclosure as Wetlands of International Importance (Ramsar Sites), with a surface area of 94,705 hectares, Lower Prut Lakes, Unguri Holosnita, Lower Dniester (Nistru de Jos). The project will not have activities in or near protected areas or existing Ramsar sites. The project addresses marine pollution through enhanced adaptive capacity for upstream river basin ecosystem restoration (at landscape level), all following the EU directives and the Dniester Commission. D.2 Overview of Borrower’s Institutional Capacity for Managing Environmental and Social Risks and Impacts The Project Implementation Unit (PIU) is envisaged to be in the National Office for Environmental Project Implementation (NOEPI), subordinated directly to the Ministry of Environment. While being intended exclusively for financing projects in environmental protection and sustainable management of natural resources, NOEPI does not have substantial experience in implementing WB-financed projects. To address these shortfall, the project will include capacity building activities, providing respective in-time and on the job trainings during all stages of project preparation (including through the Project Preparation Grant (PPG)) and throughout the implementation period, as well as will bring in international experts to ensure effective knowledge transfer and strengthening of the institutional capacity. The PIU is to be resourced with one Environmental specialist and one Social specialist, in addition to other regular PIU staff. The PIU will coordinate screening of all project activities II. SCREENING OF POTENTIAL ENVIRONMENTAL AND SOCIAL RISKS AND IMPACTS A. Environmental and Social Risk Classification (ESRC) Moderate A.1 Environmental Risk Rating Moderate Feb 07, 2025 Page 3 of 7 The World Bank Moldova: Restoring Ecosystems For Marine Pollution Prevention (P505546) The environmental risks associated with the proposed project are assessed as Moderate. Expected long term impact of the project is positive, as none of its activities is likely to generate loss of biodiversity or other damage to the environment. Component one will have a positive environmental impact in long term as relates to policy development, capacity building activities for reducing marine pollution through NbS, and community engagement in implementing sustainable agricultural practices and restoration activities. Component 2.1 will have a positive impact as it finances restoration of forest and wetlands leading to the substantial removal of various pollutants within 2,000 ha of Dniester river basin. However this activities could pose some moderate temporary environmental risks related the nature of the activities in terms of civil works associated with revitalization of small rivers and wetlands and temporary associated pollution and waste management aspects during implementation phase . The project's areas of intervention will not interfere with the existing Ramsar sites. Component 2.2 will have a positive environmental impact as it targets the improvement of nearly 25,000 ha of landscapes through sustainable agroforestry systems (integrated tree/shrub with crops) and silvo-pastoral practices (combining trees/shrubs with grazing). These two practices are believed to be important measures to reduce nutrient runoff and enhance erosion control, as well as to lower local budget inputs for flood mitigation. Moderate A.2 Social Risk Rating Social risks are considered Moderate. The project comprises small to medium scale physical works and activities to restore 2,000 ha of degraded forest and wetland sites along the Dniester River as well as interventions at sub-project sites to improve agroforestry and silvo-pastoral practices across 25,000 ha. These interventions are expected to take place on public land and no additional land acquisition is expected to be required. However, this will be further confirmed during preparation, and any impacts of the project on restrictions to land use will be further assessed. Public Disclosure Works will be completed by contracted workers as well as community workers. The project has a dedicated component for community engagement and benefits, that will employ local communities in conservation activities such as tree planting and clean up. The modality and arrangements as volunteer or paid community workers labor are yet to be determined, and will be assessed during preparation in accordance with ESS2. The works are unlikely to involve large-scale labor force and the risks of SEA/SH are assessed as low. Workers may be exposed to health and safety risks from the works such as exposure to hazardous waste and risks of injuries. Child labor risks are prevalent in the agricultural sector in Moldova but will be managed through LMP applicable to specific operations receiving project support. Other social tensions and exclusion risks may arise from site selection processes and beneficiaries accessing project benefits (including jobs and value chain development opportunities), if the criteria are not sufficiently consulted and disseminated with a wide range of beneficiaries in rural areas that are more likely to be poor, or with women and youth, and who are considered disadvantaged. The project design includes activities to strengthen community capacity for conservation and offers opportunities for benefit sharing. B. Relevance of Standards and Policies at Concept Stage B.1 Relevance of Environmental and Social Standards ESS1 - Assessment and Management of Environmental and Social Risks and Impacts Relevant The project is expected to have positive environmental and social effects from reduced pollution in the Dniester River and Black Sea. Component 1 comprises soft interventions, whereas Component 2 entails small to medium scale physical works to restore wetlands and forests . There are no significant environmental risks associated with project Feb 07, 2025 Page 4 of 7 The World Bank Moldova: Restoring Ecosystems For Marine Pollution Prevention (P505546) activities provided proper management of civil work associated with wetland restoration and small river revitalization. Social impacts, especially for riparian communities, are expected to be positive, if activities are designed with adequate engagement, inclusion of vulnerable groups, and labor management. An Environmental and Social Management Framework (ESMF) will be prepared to assess E&S impacts, propose a menu of mitigation measures, establish screening procedures for sub-projects and guide preparation of site-specific environmental and social instruments. Environmental and Social Commitment Plan (ESCP) will be developed for the project ESS10 - Stakeholder Engagement and Information Disclosure Relevant Project-affected stakeholders include rural communities that will benefit from and contribute to social, health, environmental and economic benefits from reduced pollution in the Dniester River Basin and improvements in sustainable agriculture, various ministries, and workers engaged in physical works. The project design includes activities to strengthen community capacity for conservation and offer opportunities for stakeholder engagement and participatory planning. The project will prepare a robust stakeholder engagement plan (SEP) prior to Appraisal to support engagement with civil society organizations, communities, especially rural agricultural communities that are likely to be poor. Women and youth may be disadvantaged in terms of financial and other resources, and land ownership, and effective and inclusive engagement mechanisms will be needed with these groups. The SEP will also establish a transparent, accessible grievance mechanism, consistent with ESS10. ESS2 - Labor and Working Conditions Relevant ESS2 is relevant. Project workers comprise direct workers of the PIU and technical consultants. Works under Public Disclosure Component 2 will be provided by contracted workers as well as community workers. The project has a dedicated component for community engagement and benefits, that will employ local communities in conservation activities such as tree planting and cleanup. The modality and arrangements for the use of volunteer or paid community workers labor are yet to be determined, and will be assessed during project preparation in accordance with ESS2. The works are unlikely to involve large-scale labor force. Workers may be exposed to health and safety risks at worksites, such as exposure to construction waste, heat, and animals/insects, and injuries from incidents. Child labor is present in the agriculture sector in Moldova. Labor Management Procedures (LMP) consistent with ESS2 will be prepared prior to appraisal addressing project labor risks. ESS3 - Resource Efficiency and Pollution Prevention and Management Relevant This standard is relevant. Activities and civil works related to wetland restoration, small river revitalization, shelterbelt restoration and others that require small civil works will be undertaken with efficient use of resources. Pollution prevention and management measures will be applied throughout the project lifecycle consistent with WB ESF and GIIP, to minimize environmental footprint of the project . ESS4 - Community Health and Safety Relevant The standard is considered relevant and all activities will take in consideration the exposure of local community to small civil works for clean-up and wetland restoration. The ESMF will include procedures to screen for the risks and impacts on the health and safety of project-affected communities, including groups that might be vulnerable, and relevant mitigation measures will be included in site-specific Environmental and Social Management Plans (ESMPs) Feb 07, 2025 Page 5 of 7 The World Bank Moldova: Restoring Ecosystems For Marine Pollution Prevention (P505546) where necessary. These will include management and mitigation measures to secure community health and safety during small civil works ESS5 - Land Acquisition, Restrictions on Land Use and Involuntary Resettlement Relevant Project works under component 2 will take place on public lands and are not expected to require land acquisition. However, this will be further confirmed during preparation, and any impacts of the project on restrictions to land use or natural resources or informal land users, and potential risks associated with voluntary land donation, will be further assessed and mitigated with appropriate resettlement and/or process frameworks. ESS6 - Biodiversity Conservation and Sustainable Management of Living Natural Relevant Resources This standard is relevant. The project may include activities near or inside existing Ramsar sites situated in the lower meadows of Prut and Dniester in order to restore forest areas by planting trees or wetlands restoration. Environmental screening of sub-projects will identify likelihood and nature of impacts on natural and critical habitats. The project will not support any activities negatively affecting such habitats and/or leading to net loss of biodiversity. ESS7 - Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Not Currently Relevant Local Communities No indigenous people present in Moldova. Public Disclosure ESS8 - Cultural Heritage Not Currently Relevant No activities are considered in areas with potential cultural heritage. ESS9 - Financial Intermediaries Not Currently Relevant No financial intermediaries involved. B.2 Legal Operational Policies that Apply OP 7.50 Operations on International Waterways Yes OP 7.60 Operations in Disputed Areas No B.3 Other Salient Features Use of Borrower Framework No Borrower's framework is not intended to be used Use of Common Approach No No financing partners are proposed at this time. Feb 07, 2025 Page 6 of 7 The World Bank Moldova: Restoring Ecosystems For Marine Pollution Prevention (P505546) C. Overview of Required Environmental and Social Risk Management Activities C.1 What Borrower environmental and social analyses, instruments, plans and/or frameworks are planned or required by Appraisal? Stakeholder Engagement Plan drafted, disclosed, and consulted with stakeholders by Appraisal Environmental and Social Commitment Plan drafted, disclosed, and consulted with stakehodlers by Appraisal Environmental and Social Management Framework drafted, disclosed, and consulted with stakeholders by Appraisal Labor Management Procedures drafted and disclosed by Appraisal III. CONTACT POINT World Bank Task Team Leader: Fisseha Tessema Abissa Title: Senior Natural Resources Management Specialist Email: fabissa@worldbank.org IV. FOR MORE INFORMATION CONTACT The World Bank Public Disclosure 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 473-1000 Web: http://www.worldbank.org/projects V. APPROVAL Task Team Leader(s): Fisseha Tessema Abissa ADM Environmental Specialist: Adrian Laurentiu Mihailescu ADM Social Specialist: Aki Tsuda Feb 07, 2025 Page 7 of 7