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17131 GE Public Disclosure Authorized Document of The World Bank Report No: 17131 GE Public Disclosure Authorized PROJECT APPRAISAL DOCUMENT ONA PROPOSED CREDIT IN THE AMOUNT OF SDR 3.2 MILLION AND A Public Disclosure Authorized GRANT FROM THE GLOBAL ENVIRONMENT FACILITY IN THE AMOUNT OF US $1.3 MILLION EQUIVALENT TO GEORGIA Public Disclosure Authorized FOR AN INTEGRATED COASTAL MANAGEMENT PROJECT November 24, 1998 Environmentally and Socially Sustainable Development Sector Unit Public Disclosure Authorized Europe and Central Asia Region CURRENCY EQUIVALENTS US$1.00= 1.4Georgian Lari US$1.00= 0.71 Special DrawingRights (SDR) (October 31, 1998) ABBREVIATIONS AND ACRONYMS AIOC AzerbaijanInternational Oil Consortium BSEP Black Sea EnvironmentalProgram BS-SAP StrategicAction Plan for the Rebabiiitationand Protectionof the Black Sea CAS CountryAssistance Strategy CEQMIS Coastal EnvironmentalQuality Monitoringand InformationSystem CQ SelectionBased on Consultants'Qualifications DPA Departmentof Protected Areas,Nature Reservesand HuntingManagement (Department of ProtectedAreas) EA EnvironmentalAssessment ESW Economicand Sector Work EU TACIS EuropeanUnion Technical Assistancefor the Commonwealthof IndependentStates GEF GlobalEnvironment Facility GICMP Georgia IntegratedCoastal ManagementProject GIS GeographicInformation System GoG Governmentof Georgia GPC GeorgiaPipeline Company GPN GeneralProcurement Notice IBRID InternationalBank for Reconstructionand Development ICB InternationalCompetitive Bidding !CZM integratedCoastal Zone Management IDA InternationalDevelopment Association IMF InternationalMonetary Fund [MO InternationalMaritime Organization IPIECA IntemnationalPetroleum Industry EnvironmentalConservation Association IS InternationalShopping KNP KolkhetiNational Park KNR KobuletiNature Reserve LCC Local,ConsultativeCommission LCS LeastCost Selection MEFRI Marine Ecology and Fisheries ResearchInstitute MIRP Georgia Municipal InfrastructureRehabilitation Project MTS ManagementInformation System MoE Ministryof Environment and Natural ResourcesProtection (Ministry of Environment) MoUC Ministryof Urbanization and Constuction NBF Not-BankFinanced NCB National CompetitiveBidding NEA" National EnvironmentalAction Plan NGO Non-GovernmentalOrganization NS National Shopping PAG ProjectAdvisory Group PCD ProjectConcept Document PIP ProjectImplementation Plan PIU ProjectImplementation Unit QBS Quality-8asedSelection QCBS Quality and Cost-BasedSelection Ramsar Convention Conventionon the Protection of Wetlands of InternationalImportance SCC StateConsultative Commission for ICZM SDR SpecialDrawing Rights SFB SelectionUnder a Fixed Budget SOE Statementof Expenditures SPN SpecialProcurement Notice TF Trust Fund TOR Terms of Reterence UNDP UnitedNations DevelopmentProgram WHO WorldHealth Organization WWF WorldWildlife Fund Vice President: Johannes F. Linn, ECA CountryDirector: Judy rM O'Connor,ZCC03 SectorDirector Kevin Cleaver,ECSSD SectorLeader: Mehele De Nevers, ECSSD ProgramTeam Leader. Kann J. Shepardsons,ECSSD Georgia IntegratedCoastal Management Project CONTENTS A. ProjectDevelopment Objective .................................................... 2 1. Project developmentobjective and key perfortnanceindicators ...................... 2 B. StrategicContext .................................................... 3 1. Sector-relatedCAS goal supportedby the project...................................... 3 2. Main sector issues and Governmentstrategy ............................................ 4 3. Sector issuesto be addressedby the project and strategic choices................... 5 C. Project Description Summary .................................................... 5 1. Project components................................................ 6 2. Key policy and institutionalreformns supported by the project....................... 9 3. Benefitsand target population................................... , 9 4. Institutionaland implementationarrangements .................................. 10 D. Project Rationale..................................... 12 1. Project alternativesconsidered and reasons for rejection............................ 12 2. Major related projects financedby the Bank and GEF and/or other developmentagencies ................................................... 13 3. Lessons learnedand reflected in proposedproject design........................... 13 4. Indicationsof borrower commitmentand ownership................................. 14 5. Valueadded of Bank support in this project.......................................... 14 E. SummaryProject Analyses ................................................... 14 1. Economicanalysis ................................................... 14 2. Financialanalysis ................................................... 15 3. Technicalanalysis ................................................... 15 4. Institutionalanalysis ................................................... 16 5. Social analysis................................................... 16 6. Environmentalassessment ................................................... 17 7. Participatoryapproach ................................................... 17 F. Sustainabilityand Risks................................................... 19 1. Sustainability................................................... 19 2. Critical risks................................................... 19 3. Possiblecontroversial aspects ................................................... 20 G. Main Loan Conditions................................................... 21 1. AgreementsReached Prior to Negotiations........................................ 21 2. AgreementsReached at Negotiations............................................. 21 3. NegotiationsConditions ............................................. 21 4. EffectivenessConditions ........................ 21 5. DisbursementConditi ........................ 21 H. Readiness for Implementation........................ 22 1. Compliance with Bank Policies .. ...................... 22 Annexes Annex 1 Project Design Summary Annex 2 Project Description Annex 3 EstimatedProject Costs Annex 4 Cost-BenefitAnalysis Summary Annex 5 FinancialSummary Annex 6 Procurementand DisbursementArrangements Annex 7 Project ProcessingBudget and Schedule Annex 8 Documentsin the Project File Annex 9 Statusof Bank Group Operationsin Georgia Annex 10 Countryat a Glance Annt 11 GEF IncrementalCost Analysis Annex 12 Presidentof Georgia Decree Tables Annex 6, TableAl Project Costs by ProcurementArrangements Annex 6, Table A2 ConsultantSelection Arrangements Annex 6, Table B Thresholdsfor ProcurementMethods and Prior Review Annex 6, Table C ProcurementPlan Annex 6, TableDl EstimatedDisbursements IDA Credit Annex 6, Table D2 EstimatedDisbursements GEF Grant Annex 6, TableEl Allocationof IDA Credit Proceeds Annex 6, Table E2 Allocationof GEF GrantProceeds Annex 11, TableF IncrementalCost Matrix Maps Map I Georgiaand the Black Sea Map 2 Black Sea Coast and WetlandsArea, Project Sites Georgia Integrated Coastal ManagementProject Project AppraisalDocument Europe and CentralAsia RegionalOffice ECCO3 Date: November24,1998 ProgramTeam Lead&r:Karin J. Shepardson Country Director: Judy M. O'Connor Sector Director:Kevin M. Cleaver Project ID: Sector: Environment ProgramObjective Category: Environmentally Sustainable GE-50911 Development GEF SupplementID: GE-60009 Focal Area: Biodiversity Lending Instrument: IDA Credit and GEF Programof TargetedIntervention: [] Yes [X] No Grant Project FinancingData [ Loan [X] Credit [] Guarantee [XI Grant For Loans/Credits/Others: Amount IDA: SDR 3.2 million (US$m 4.4 equivalent) Proposed GEF: SDR 1.0 million (US$m 1.3 equiv .;ent) terms: [X ] Multicurrency [] Single Currency,specify SDR Grace period 10 [ StandardVariable [ Fixed [ LIBOR-based (years): Years to 35 maturity: Commitment 0.5% On undisbursedcredit balance (begins60 days after signing unless waiver) fee: Service charge: 0.75% Financingplan (US$m): Source Local Foreign Total Governmentof Georgia 0.9 0.0 0.9 IDA 1.8 2.6 4.4 Global EnvironmentFacility (GEF) 1.3 0.0 1.3 Governmentof the Netherlands (Grant) 0.0 1.0 1.0 Total 4.0 3.6 7.6 Borrower: Governmentof Georgia Guarantor:N/A Responsibleagency: Ministryof Environment Estimateddisbursements (Bank 1999 2000 2001 2002 2003 2004 FY/US$M): (CombinedIDA/GEF) 0.5 0.8 2.0 1.3 0.8 0.3 Annual Cumulative 0.5 1.3 3.3 4.6 5.4 5.7 Project implementationperiod: 5.5 years Expectedeffectiveness date: Jan. 15, 1999 Expected closing date: Dec. 30, 2004 A: Project Development Objective 1. Project developmentobjective and key performance indicators(see Annex 1): Project developmentobjective: The project aims to strengtheninstitutions in Georgia to manage the coastal resources of the Black Sea by developing, testing and evaluating methods to effectively integrate environmental planning and management into economic development activities along the Black Sea coast. Globaldevelopment objective: The projectalso aims to assist Georgia in meeting its international commitments under the Black Sea EnvironmentalProgram (BSEP) and to implement priority actions outlined in the Georgia Biodiversity Strategy/ActionPlan. These priorities include conservationof biodiversity at sites of internationalsignificance on Georgia's Black Sea coast, such as the Kolkheti and Kobuleti wetland Ramsar sites; restoration of degraded habitats and resourceswithin the Black Sea Large Marine Ecosystem;and participation in regional efforts to manage and sustainpublic goods of a transnationalcharacter. In line with these objectives,
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