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For Official Use Only Document of The World Bank FOR OFFICIAL USE ONLY Report No: PAD860 Public Disclosure Authorized INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT PROJECT APPRAISAL DOCUMENT ON A PROPOSED LOAN IN THE AMOUNT OF US$55 MILLION Public Disclosure Authorized TO THE LEBANESE REPUBLIC FOR THE LAKE QARAOUN POLLUTION PREVENTION PROJECT June 22, 2016 Public Disclosure Authorized Environment and Natural Resources Global Practice Middle East and North Africa Region Public Disclosure Authorized This document has a restricted distribution and may be used by recipients only in the performance of their official duties.Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective as of May 30, 2016) Currency Unit = Lebanese Pound US$1 = LBP 1,507 FISCAL YEAR January 1 - December 31 ABBREVIATIONS AND ACRONYMS BDL Banque du Liban – Lebanese Central Bank BOD Biochemical Oxygen Demand BWE Beqaa Water Establishment CBA Cost-benefit Analysis CDR Council for Development and Reconstruction COD Chemical Oxygen Demand COM Council of Ministers CQS Selection Based on the Consultants’ Qualifications DA Designated Account DU Dunum DALY Disability-adjusted Life Year EIA Environmental Impact Assessment EMP Environmental Management Plan ERRP Emergency Reconstruction and Rehabilitation Project ESMF Environmental and Social Management Framework EU European Union FAO Food and Agriculture Organization of the United Nations FBS Selection under a Fixed Budget FFS Farmer Field Schools FM Financial Management FO Financial Officer GAP Good Agricultural Practices GDP Gross Domestic Product GoL Government of Lebanon IBRD International Bank for Reconstruction and Development IC Individual Consultant ICB International Competitive Bidding IFR Interim Financial Report IPM Integrated Pest Management IPSAS International Public Sector Accounting Standards IRR Internal Rate of Return LBP Lebanese Pound LCS Least-cost Selection LRA Litani River Authority MoA Ministry of Agriculture MoE Ministry of Environment MoEW Ministry of Energy and Water ii MoF Ministry of Finance NCB National Competitive Bidding NGO Nongovernmental Organization O&M Operations and Maintenance PDO Project Development Objective PFS Project Financial Statement PMU Project Management Unit PV Present Value QCBS Quality- and Cost-based Selection RFP Request for proposal SOE Statement of Expenditure SSS Single Source Selection TOR Terms of Reference USAID United States Agency for International Development WA Withdrawal Application WQI Water Quality Index WWTP Wastewater Treatment Plant Regional Vice President: Hafez Ghanem Country Director: Ferid Belhaj Senior Global Practice Director: Paula Caballero Practice Manager: Benoit Blarel Task Team Leader: Maria Sarraf iii LEBANESE REPUBLIC Lake Qaraoun Pollution Prevention Project TABLE OF CONTENTS Page I. STRATEGIC CONTEXT ............................................................................................................... 1 II. PROJECT DEVELOPMENT OBJECTIVES ................................................................................... 7 III. PROJECT DESCRIPTION ................................................................................................................ 7 IV. IMPLEMENTATION........................................................................................................................ 14 V. KEY RISKS AND MITIGATION MEASURES ............................................................................. 16 VI. APPRAISAL SUMMARY ................................................................................................................. 17 Annex 1: Results Framework and Monitoring …………………………………………………… ……23 .......................................................................................................... 25 ..................................................................................................... 33 Annex 4: Financial Sustainability of the BWE 41 .......................................................................................................................... 46 ....................................................................................................... 53 iv PAD DATA SHEET Lebanon Lake Qaraoun Pollution Prevention Project (P147854) PROJECT APPRAISAL DOCUMENT MIDDLE EAST AND NORTH AFRICA GENDR Report No.: PAD860 Basic Information Project ID EA Category Team Leader(s) P147854 B - Partial Assessment Maria Sarraf Lending Instrument Fragile and/or Capacity Constraints [ ] Investment Project Financing Financial Intermediaries [ ] Series of Projects [ ] Project Implementation Start Project Implementation End Date Date 14-Jul 2016 30-Dec-2022 Expected Effectiveness Date Expected Closing Date 01-Jun-2017 30-Jun-2023 Joint IFC No Practice Senior Global Country Director Regional Vice President Manager/Manager Practice Director Benoit Paul Blarel Paula Caballero Ferid Belhaj Hafez M. H. Ghanem . Borrower: Government of Lebanon Responsible Agency: Council for Development and Reconstruction Contact: Ms. Wafaa Charafeddin Title: Director of Funding Division Telephone No.: (961-1) 981-380 Email: [email protected] . Project Financing Data(in USD Million) [ X ] Loan [ ] IDA [ ] Guarantee Grant [ ] Credit [ ] Grant [ ] Other Total Project Cost: 60.00 Total Bank Financing: 55.00 v Financing Gap: 0.00 . Financing Source Amount Borrower 5.00 International Bank for Reconstruction and 55.00 Development Total 60.00 . Expected Disbursements (in USD Million) Fiscal 2018 2019 2020 2021 2022 2023 0000 0000 0000 0000 Year Annual 5.00 5.00 10.00 10.00 10.00 15 0.00 0.00 0.00 0.00 Cumulati 5.00 10.00 20.00 30.00 40.00 55 0.00 0.00 0.00 0.00 ve . Institutional Data Practice Area (Lead) Environment & Natural Resources Contributing Practice Areas Cross Cutting Areas [X] Climate Change [X] Fragile, Conflict & Violence [ ] Gender [ ] Jobs [ ] Public Private Partnership Sectors / Climate Change Sector (Maximum 5 and total % must equal 100) Major Sector Sector % Adaptation Mitigation Co- Co-benefits benefits % % Agriculture, fishing, and forestry Agricultural extension 10 and research Water, sanitation and flood General water, 90 50 protection sanitation and flood protection sector Total 100 vi O I certify that there is no Adaptation and Mitigation Climate Change Co-benefits information applicable to this project. Themes Theme (Maximum 5 and total % must equal 100) Major theme Theme % Environment and natural resources Water resource management 100 management Total 100 . Proposed Development Objective(s) The development objectives of the project are to reduce the quantity of untreated municipal sewage discharged into the Litani River and to improve pollution management around Qaraoun Lake. Components Component Name Cost (USD Millions) Component 1. Improvement of municipal sewage 50.50 collection Component 2. Promotion of good agricultural practices 1.50 (including integrated pest management) Component 3. Solid Waste, Water Quality Monitoring, 3.00 Capacity Building, and Project Management . Systematic Operations Risk- Rating Tool (SORT) Risk Category Rating 1. Political and Governance High 2. Macroeconomic Moderate 3. Sector Strategies and Policies Moderate 4. Technical Design of Project or Program Substantial 5. Institutional Capacity for Implementation and Sustainability Substantial 6. Fiduciary Moderate 7. Environment and Social Moderate 8. Stakeholders Moderate OVERALL Substantial . Compliance vii Policy Does the project depart from the CAS in content or in other significant Yes [ ] No [X] respects? . Does the project require any waivers of Bank policies? Yes [ ] No [X] Have these been approved by Bank management? Yes [ ] No [ ] Is approval for any policy waiver sought from the Board? Yes [ ] No [X] Does the project meet the Regional criteria for readiness for Yes [ X ] No [ ] implementation? . Safeguard Policies Triggered by the Project Yes No Environmental Assessment OP/BP 4.01 X Natural Habitats OP/BP 4.04 X Forests OP/BP 4.36 X Pest Management OP 4.09 X Physical Cultural Resources OP/BP 4.11 X Indigenous Peoples OP/BP 4.10 X Involuntary Resettlement OP/BP 4.12 X Safety of Dams OP/BP 4.37 X Projects on International Waterways OP/BP 7.50 X Projects in Disputed Areas OP/BP 7.60 X . Legal Covenants Name Recurre Due Date Frequency nt Schedule 2. Sect I.A of the Project Agreement 1 month after Effectiveness Description of Covenant The Project Implementing Entity shall establish, by no later than one (1) month after the Effective Date, a Project Management Unit, and thereafter maintain it throughout the implementation of the Project, with funcions, staffing and resources satisfactory to the Bank. Conditions Source Of Fund Name Type IBRD Article V 5.01 of Loan Agreement Effectivness Description of Condition The Additional Condition of Effectiveness consists of the following, namely, that the Subsidiary viii Agreement has been executed on behalf of the Borrower and the Project Implementing Entity. Team Composition Bank Staff Name Role Title Unit Maria Sarraf Team Leader (ADM Lead Environment Specialist GENDR Responsible) Sepehr Fotovat Ahmadi Procurement Sr. Procurement Specialist GGODR Suiko Yoshijima Team Member and Env Environmental Specialist GENDR Safeguard Amal Talbi Team Member Sr. Water & Sanitation Spec. GWADR Lelia Croitoru Sr. Environmental Consultant GEEDR Specialist Mohammed Benouahi Lead Wastewater Consultant GWADR Specialist Chaogang Wang Social Safeguards Sr. Social Development GSURR Specialist Garry Charlier Team Member Sr. Rural Development
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