INTEGRATED SAFEGUARDS DATASHEET APPRAISAL STAGE

I. Basic Information Date prepared/updated: 04/25/2005 Report No.: AC1384 Public Disclosure Authorized 1. Project Statistics Country: Project ID: P083702 Project Name: ENERGY SECT REF Task Team Leader: Dejan R. Ostojic Estimated Appraisal Date: March 31, 2005 Estimated Board Date: June 16, 2005 Managing Unit: ECSIE Lending Instrument: Specific Investment Loan Sector: Power (100%) Theme: Regional integration (P);Regulation and competition policy (P) IBRD Amount (US$m.): 100.00 IDA Amount (US$m.): 0.00 GEF Amount (US$m.): 0.00 Public Disclosure Authorized PCF Amount (US$m.): 0.00 Other financing amounts by source: BORROWER 0.00 BORROWING AGENCY 620.00 Financing Gap 150.00 770.00 Environmental Category: B - Partial Assessment Simplified Processing Simple [] Repeater [] Is this project processed under OP 8.50 (Emergency Recovery) Yes [ ] No [X]

2. Project Objectives Public Disclosure Authorized The main objective of the Hydropower Rehabilitation Project is to improve operational stability and reliability of power supply by increasing regulating capacity, efficiency and safety of hydroelectric plants, and, therefore, facilitate unimpeded operation and opening up of the electricity market. Additional objective is to support the Ministry of Fuel and Energy (MFE) and the National Energy Regulatory Commission (NERC) in updating and implementing the Energy Sector Reform and Development Program, including implementing Wholesale Electricity Market (WEM) concept.

Key performance indicators that will be used to assess fulfillment of the Hydropower Rehabilitation Project in terms of results and outcomes by the end of the project and in comparison to parameters in the year 2004, are: - Increased production of hydroelectric energy by 360 GWh; - Increased (winter firm) hydropower capacity by 250 MW;

Public Disclosure Authorized - Reduced O&M costs in rehabilitated hydropower plants by 20%; and - Reduced emissions from thermal power plants, including emission reduction of 1,300,000 tonns of CO2 equivalent, due to the increased production of hydroelectric energy. The Hydropower Rehabilitation Project is the first specific investment project within the Energy Sector Reform and Development Program (Energy Program) proposed by the Government of Ukraine. The overall program objective is to improve the security, reliability and quality of energy supply, and, therefore, facilitate unimpeded operation of the energy market, both domestically and internationally. Also, the proposed Energy Program would support Ukraine?s aspirations with regard to legal, institutional, regulatory and technical harmonization and increasing energy trade with the EU Internal Energy Market.

If successful, the Energy Program would support sustainable economic growth through the consolidation of energy sector reforms, improved security, reliability and quality of energy supply and growing energy trade in the domestic and international energy markets.

Reform and sustainable development of the energy sector is one of the highest priorities in restoring Ukraine? macroeconomic fundamentals, improving the investment climate and integrating the county into the global economy.

Addressing emerging fiscal imbalances and inflationary pressures in Ukraine requires hardening budget constraints, including strengthening financial discipline in the energy sector and timely payment of energy bills and taxes to the budget. The Energy Program would help bring energy companies to financial solvency and eliminate further accumulation of tax and other payment obligations to the budget. It will also help reduce quasi-fiscal deficit in the energy sector through gradual elimination of price distortions, reduction of technical and commercial losses, and increase in cash collections.

Advancing energy sector reform and ensuring sustainable provision of reliable, affordable and environmentally acceptable energy services is crucial for improving the investment climate in Ukraine, which has a high concentration of production and exports in energy intensive industries. From this point of view, key aspects of the proposed Energy Program are: (i) resolution of large debts accumulated in the energy sector; (ii) reduction and ultimate elimination of subsidies in the sector both explicit (for coal) and implicit (for gas and electricity); (iii) improvement of financial solvency and corporate governance of state-owned energy enterprises; (iv) strengthening the independence of NERC; (v) improvement of security, reliability and quality of the energy supply; and (vi) capacity building in MFE and NERC.

Ukraine?s location on the main corridor for energy trade between Russia and the EU and the country?s large energy resources and infrastructure make energy sector reform and sustainable development essential for integrating Ukraine into the global economy, including its membership in WTO. The proposed Energy Program would support Ukraine?s aspirations with regard to legal and technical harmonization and increasing integration of its energy market with the EU Internal Energy Market. Strengthening energy interconnections and opening access to the EU electricity market will improve energy security and the reliability of energy supply in the whole region and result in significant economic benefits for all market participants. Furthermore, the proposed Energy Program would help Ukraine benefit from its large surplus of GHG emission reductions under the Kyoto Protocol. This would also help other countries (i.e. developed countries) meet their obligations under the Protocol and jointly mitigate the impacts of the growing energy demand on the global climate.

3. Project Description Eligible program components. Recent sector notes prepared by the Bank concluded that significant investments in aging energy infrastructure are required for a well-functioning energy market. The following priority investments and technical assistance would be eligible for financing under the proposed Energy Program in order to help the Ukraine energy market to better meet increasing demand in a secure, reliable and environmentally friendly manner, while converging toward legal, regulatory and technical standards of the EU Internal Energy Market.

- Investments to increase operational capacity and flexibility of hydropower plants which play key role in providing load following, frequency control and other ancillary services in the Ukraine power grid, and, therefore, are critical for opening up the electricity market and meeting technical requirements of the EU power grid (UCTE); - Investments to upgrade the capabilities of transmission system operator, UkrEnergo, so that it can implement policy decisions to assure security and reliability of power supply, including: (a) removing critical bottlenecks in transmission networks and sub-stations; (b) improving operational stability of power grid; (c) upgrading load dispatch and system control capabilities; and (d) upgrading infrastructure and systems for electricity market administration; - Investment to retrofit critical energy facilities and networks to help improve their environmental compliance and reduce losses; - Investments in metering and/or telecommunications programs designed to improve billing and collections and/or coordination and communications capabilities of distribution utilities so that they can more effectively participate in the energy market; and - A wide range of technical assistance, for institutional development and program/ project preparation and implementation, to support implementation of the WEM (as detailed in Annex 4); and to fund engineering/ environmental services for the preparation and implementation of investment projects (including but not limited to projects financed by the Bank under the Energy Program) necessary for a functioning energy market.

Hydropower Rehabilitation Project comprises five components:

Component A: Rehabilitation of hydroelectric plants. This component includes refurbishment of 46 hydroelectric units and associated plant equipment at nine hydroelectric plants. It also includes modernization of nine hydropower plants and refurbishment of high voltage equipment in nine switchyards connected to these plants.

Component B: Dam Safety. This component includes rehabilitation and upgrade of the existing, as well as installation of new dam safety monitoring systems and rehabilitation of drainage facilities and spillway gates on seven dams on the river and one dam on the Dnister river.

Component C: UHE Institutional Development. This component includes establishment of a corporate-wide Management Information System (MIS) in UHE. This component also includes provision of technical assistance to UHE in improving financial management, enhancing dam safety, optimal scheduling of the multi-purpose cascade of hydropower plants, capacity building in procurement and project management and training for the UHE staff in dam safety.

Component D: MFE Institutional Development. This component includes provision to the MFE of advisory services and consultant assistance in developing and implementing: (i) an action plan for legal and technical harmonization of the Borrower?s energy market with the European Union Internal Energy Market; and (ii) a program of priority investments and technical assistance in the energy sector.

Component E: Implementation of the WEM Concept. This component includes provision of technical assistance to NERC in implementing the WEM concept, as required for (i) clarifying market design and main principles of market operation; (ii) drafting of main codes and rules; and (iii) specifying the supporting tools such as software, telecommunication systems and metering.

4. Project Location and salient physical characteristics relevant to the safeguard analysis The existing cascade of hydropower plants, dams and reservoirs on the Dnipro river in Ukraine, is one of the largest hydropower systems in the world. The first hydropower plant in the system (Dnipro HPP1) was built near the city of Zaporizhya in 1934 and the last project (Dnipro HPP2) was completed in 1980. Other hydropower projects are Hydropower Plant (HPP) and pumped storage plant (Kyiv), Kaniv HPP (Kaniv), Kremenchug HPP (Svetlovods), Dniprodzerzhinsk HPP (Dniprodzerzhinsk) and Kahovka HPP (Nova Kahovka). The total of six dams and eight hydropower plants are located along a 1000 km stretch of the Dnipro river from Kyiv to Nova Kahovka.

The Dnipro river is the third largest river of Europe, with a catchment area of about 505,000 km2. More than 30 million people use the Dnipro river water. For Ukraine, the Dnipro river is often considered as its life line, where more than 50 large cities, over 10,000 industrial enterprises, over 2,000 rural, more than 1,000 public utilities, and over 50,000 irrigation systems are provided with Dnipro water. The reservoirs of Dnipro Cascade system are for multi purpose and the water resources are used for: (i) supply of urban, rural and industrial water; (ii) hydroelectric generation; (iii) irrigation; (iv) fisheries; (v) navigation/ water transportation; and (vi) recreation.

The existing Dniester HPP is located on the Dnister river in the south western part of Ukraine, at a distance of about 15 km upstream from the point where the river forms the border line between Moldova and Ukraine (or a distance of about 678 km from the Dnister mouth). The multi-purpose use of the reservoir includes water supply, irrigation, navigation, hydropower generation, and control.

5. Environmental and Social Specialists on the Team Mr Bernard Baratz (EASEG) Mr Permanand Gupta (ECSIE) Mr Norval Stanley Peabody (ECSSD)

6. Safeguard Policies Triggered 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 Cultural Property (OPN 11.03) X Indigenous Peoples (OD 4.20) 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

II. Key Safeguard Policy Issues and Their Management A. Summary of Key Safeguard Issues 1. Describe any safeguard issues and impacts associated with the proposed project. Identify and describe any potential large scale, significant and/or irreversible impacts: Rehabilitation of hydropower plants triggers OP/BP/GP 4.01 on Environmental Assessment The Hydropower Rehabilitation Project is in full compliance with all environmental requirements of the Government of the Ukraine and the World Bank. In accordance with the World Bank Environmental Assessment safeguard policy and procedures (OP/BP/GP 4.01) the project has been assigned Category B and an Environmental Management Plan (EMP) is required.

UHE (the project implementation agency) provided an English language version of the EMP acceptable to the World Bank on March 9, 2005 and disclosed versions of the EMP at each of the nine subproject sites from March 4 to 9, 2005. The World Bank provided the English language version to the Infoshop on March 9, 2005. Prior to disclosure, public consultations were held at each of the nine subproject sites. The EMP and supporting documentation for the public consultations are included in the project file. Project approval by the Ukrainian environmental authorities (State Ecological Expertise) is also presented in the EMP.

UHE? capacity for implementing the requirements of the EMP was reviewed by the Bank and found to be highly adequate, having benefited from the experience gained in the first hydropower project. All environmental issues for both the project implementation and operation phases are minor, of limited duration and extent and readily managed.

Chief environmental issues are associated with project implementation, and these include: noise and engine exhausts from construction machinery, fumes from welding and painting, oily wastewaters from roofing and waterproofing operations and disposal of scrap metal and building material (concrete, bricks, etc.) wastes. At four locations, disposal of old batteries and battery acid is an issue. Other than waste mineral oils, there are no significant hazardous wastes, such as heavy metals, polychlorinated biphenyls (PCBs), or asbestos.

Minor environmental issues are associated with normal plant operation and routine maintenance operations. These include noise (turbines and compressors), paint fumes and metal dust in the machine shop, oil leaks, and oily wastewater from runoff at the oil storage site.

Rehabilitation of hydropower plants triggers OP 4.37 on Safety of Dams The project team performed an overall assessment of dam safety and found it very encouraging that UHE attaches great importance on the safety of Dnipro Cascade system of dams (Dnipro river) as well as on Dnister dam (Dnister river). The UHE has already taken several steps in this respect as required in accordance with the Bank Guidelines for Safety of Dams (OMS 3.80, 1977 and the revised OP/BP 4,37, 1996), specially in respect of: - The dam safety monitoring. - Annual dam safety inspections. - Emergency Preparedness Plan (including the Emergency Action Plan through the Emergency Ministry and other relevant organizations). - Operation and Maintenance. - Dam Safety Legislation (Draft).

The overall Dnipro cascade system of dams/reservoirs appear to have been successfully monitored, operated and maintained by the UHE for periods varying from over 30 to 60 years without any major safety hazard so far. A team of 4 staff members is understood to be maintained for each of the six (6) dams/reservoirs of the Dnipro Cascade system and for Dnister dam (Dnister river), for dam safety inspections, instrumentation observations and dam safety monitoring.

Due to the very long operating periods for these dams/structures, and the recent detailed dam safety inspections by the UHE and UHP professionals, some immediate dam safety strengthening measures have been identified comprising of civil works including (drainage channels, dam embankments, and concrete works), and rehabilitation or replacement of the hydro-mechanical gates for some dams/spillways which need to be undertaken soonest possible, i.e. within the scope of the proposed hydropower rehabilitation project. - Geological: Only one dam (Dniproges) of the Dnipro Cascade system is founded on geologically good rock foundation. All other five dams are founded on geologically pervious (sandy) foundations, and the dam embankments built of sandy soils. Thus, the continuous dam safety monitoring for these dams on pervious (sandy) foundations becomes most important for safety of the Dnipro Cascade system.

- Hydrological: The hydrology of the Dnipro is characterized by pronounced seasonal regime, with the highest during the spring, strongly influenced by the snowmelt. The Hydrological Forecasting Department of the HydroMet Center in Kyiv is responsible for preparation of hydrological forecasts in the Dnipro Basin. The hydrological data (by HydroMet) is understood to be based on nearly 200 hydrological gauging stations located within Dnipro Basin (more than 80 of these stations located in Belarus and Russia), and some 210 stations for snowmelt depth (including 118 in the territory of Ukraine). Some hydrological instrumentation is required to be upgraded and replaced for the HydroMet, for reliable measurements, assessments, and accurate flood forecasting. Most of the dams/structures of the Dnipro Cascade system have been provided for 10,000 year design floods (covering present international standards). However, the two structures ( Kyiv and Kaniv), which are the first structures on the Cascade system, are apparently designed for 1000 year flood, which could not be considered adequate from the presently adopted norms in dam/spillway designs.

- Sedimentation: No sedimentation surveys for any of the reservoirs are understood to have been done so far, with apparently no knowledge of the behavior of the sediment deposits and/or the sediment delta movement in the reservoirs, for future planned actions, which is important specially for Kyiv reservoir (which is the first structure of the Dnipro Cascade system), and the sediment deposits are understood to have been further complicated due to the Chernobyl NPP accident in 1986 and the resulting radiated sediments.

Instrumentation, mainly comprising of embankment piezometers, foundation piezometers, observation pipes, settlement devices, survey points, inclinometers, and the seepage discharge measurement devices are provided on almost all the dam structures of the cascade system to monitor the dams behavior. Some of the instrumentation is understood to have been damaged and is inoperative.

The previous Bank project (Hydropower Rehabilitation and System Control Project, Loan 3865) provided the first successful step towards dam safety monitoring of the Dnipro Cascade system, with provision and installation of the needed instrumentation/equipment and the computer aided monitoring system for Kyiv dam and HPP (the uppermost structure of the entire system), as a model, incorporating installation of: - new drill holes and piezometers; - water flow transducers; - jointmeters; - inclinometers; - data concentrators; - concrete shelter boxes, and concrete towers; - cables/trenches, and - computer hardware and software.

A site inspection by the project team, along with the UHE and UHP professionals, for the installed dam safety monitoring instrumentation/equipment and its computer aided operation, for Kyiv dam and HPP (as a model), indicated that provision and installation of computer aided dam safety monitoring system for Kyiv dam and HPP, has been very successful safety monitoring system, providing immediate monitoring control of the collection and interpretation of all the dam safety monitoring data (including the piezometer readings, the safe phreatic lines in the dam embankments, the drainage channel water levels, the drainage discharges and variations with reservoir levels, the concrete joint openings, the concrete block defections and inclinations, the water temperatures, and other relevant data, and an automatic alarm system for critical data observations), at the Monitoring Center at Kyiv HPP, and that the same need to be duplicated and provided to other needed dams of the system, for an overall monitoring control of the whole system.

While the computer aided dam safety monitoring instrumentation provides an extremely useful tool for the overall reliable surveillance of the dams safety, specially for long dams, it is necessary to continue physical dam safety inspections, since every foot length of dam could not be covered by instrumentation or for interpretation of the readings from adjacent areas for reliable results.

Based on the experience gained on the dam safety monitoring system for Kyiv dam, the UHE has also installed similar dam safety systems at: (i) Kremenchug dam and HPP (completed in September 2004); and (ii) Kakhovka dam and HPP (scheduled for completion in December 2005).

The overall dam safety strengthening measures as presently needed for the Dnipro Cascade system and the Dnister dam and HPP (Dnister river), as per detailed proposals by the UHE and UHP (and reviewed by the project team), could be identified as: - Computer aided dam safety monitoring system for Dnipropetrovsk, Dniprodzerzhinsk, Kaniv and Dnister dams and HPP. - The needed strengthening civil works for Kyiv, Kaniv, Dnipropetrovsk, and Dniprodzerzhinsk dams, incorporating rehabilitation of: > drainage facilities; > design profiles (rehabilitation of subsidence); > slope protections; > concrete spillways and other reinforced concrete works. - Protection against high phreatic lines (high piezometric levels) in the dam embankments at Kaniv, Kremenchug, Dniprodzherzhinsk and Kakhovka. The design proposals for above civil works should be completed by December 31, 2005. - Rehabilitation and/or replacement of the needed hydro-mechanical gates for Dnipropetrovsk and Dniprodzerzhinsk dams/spillways. Provision for these identified dam strengthening measures has been made as a part of the Dam Safety Component under the Project. Possible additional measures related to rehabilitation and/or replacement of any of the spillway gates for Kremenchug and Kakhovka dams will be evaluated by UHE by December 31, 2005.

With the modernization and automation of the dam safety monitoring and telecontrol of the dam surveillance for the overall Dnipro Cascade system of dams/reservoirs, it is essential that a Dam Safety Center (DSC) should be established, for immediate analysis and interpretation of all the relevant data, specially the questionable (or alarming) data. During negotiations, agreement will be sought that UHE establishes and maintains an adequately staffed DSC under scope of work acceptable to the Bank by December 31, 2005. The scope of work would include, inter alia, to (A) inspect and evaluate the safety status of the existing dams, its appurtenances, and its performance history; (B) review and evaluate UHE’s operation and maintenance procedures; (C) provide a written report of findings and recommendations for any remedial work or safety-related measures necessary to upgrade the existing dam to an acceptable standard of safety; and (D) provide an immediate analysis and interpretation of all relevant data, specially the questionable or alarming one, gathered from the operation of the dams under the project. Furthermore, at the negotiations, it would be agreed that UHE ensures that (i) a detailed plan for construction supervision, an instrumentation plan, an operation and maintenance plan, and an emergency preparedness plan would be prepared and implemented; (ii) all work under the dam safety component is designed and supervised by competent professionals; and (iii) DSC performs periodic dam safety inspections.

The proposed project will also include the needed technical assistance related to the dam safety component: 1. Study for the Safe Design floods for Kyiv and Kaniv reservoirs (presently designed for only 1000 year flood), with safe and economical options including necessity or otherwise of (emergency spillway, increased reservoir capacity, optimized reservoir regulations, and/or installations of additional hydrological instrumentation/equipment for accurate flood forecasting). 2. Upgrading/replacement of hydrological instrumentation for the HydroMet, for more reliable measurements, assessments, and flood forecasting. 3. Study, Assessment and Analysis of the Reservoir Sedimentation for Kyiv dam (sediment volume, sediment profile, and sediment characteristics) specially in view of the fact that Kyiv reservoir is the first reservoir on the Dnipro Cascade system of dams, and the reservoir sedimentation has been further complicated due to the Chernobyl NPP accident in 1986, and the resulting radiated sediments. 4. Training of Professionals in dam safety management. 5. Eight local professionals, in 2 groups of 4 engineers each, for 3 month training, will be identified at an early stage of the project, for specialized training in the fields of: - Computer aided monitoring system design. - Monitoring, maintenance, and operation of system. - Dam safety inspections and safety monitoring. These trained professionals will later assist in implementation and monitoring of the Project Dam Safety Component.

UHE will prepare criteria for selection of candidates for training acceptable to the Bank by December 31, 2005. The criteria will meet various requirements as proposed by the UHE, including: - the relevant basic qualifications; - working professionals at the dams and HPP, and the Design Institute; - an arrangement with the professionals to stay with the UHE/Design Institute for a minimum of 3 years after training.

Rehabilitation of hydropower plants triggers OP 7.50 on Projects in International Waterways. An exemption from the notification requirement under OP 7.50 has been obtained from the Bank, because the Hydropower Rehabilitation Project does not involve works and activities that would exceed the original scheme, change its nature, or alter and expand its scope and extent to make it appear a new or different scheme. Consequently, it falls within the exception set forth in paragraph 7 (a) of OP7.50 as: (a) it will not adversely affect the quality or quantity of water flows to the other riparians; and (b) it will not be adversely affected by other riparians? water use.

Rehabilitation of hydropower plants does not trigger Social Safeguards. Rehabilitation of the hydropower units will take place entirely within existing sites, thus no land acquisition will be required and no resettlement will occur as the result of the project. No indigenous peoples will be affected by the project. Thus it does not trigger either OP 4.12 Involuntary Resettlement pr OD 4.20 Indigenous Peoples. Likewise, it does not trigger OP:N 11.03, Cultural Property for the same reasons. The project will not involve land acquisition or resettlement or cultural assets, thus neither OP 4.12 nor OPN 11.03.

2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area: Not Applicable.

3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts. Not Applicable.

4. Describe measures taken by the borrower to address safeguard policy issues. Provide an assessment of borrower capacity to plan and implement the measures described. An EMP satisfactory to the Bank has been prepared and the Borrower has agreed to implement it. In addition, the project team environmental specialist reviewed the capacity of UHE to implement the EMP and found this to be more than adequate.

5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. The key stakeholders are government officials (Ministry of Fuel and Energy, National Energy Regulatory Commission ? NERC, Ministry of Economy and European Integration, Ministry of Finance), local NGOs and UkrHydroEnergo. The Environment Management Plan and related information in Ukrainian language was disseminated and disclosed at the following public places: Kyiv HPP, Kyiv PSPP: - State Ecological Regional Inspection, Vyshgorod Town Executive Committee, room 23, on March 5, 2005. Kaniv HPP: - Kaniv Town Executive Committee, managerial department on March 5, 2005. Kremenchuk HPP: - Svitlovodsk City Executive Committee, deputy mayor?s room on March 4, 2005. Dniprodzerzhynsk HPP: - Dniprodzerzhynsk Environmental Protection Department of the City Council on March 4, 2005. Dnipro HPP: - Zaporizhzhya State Regional Administration: Industry, Energy and Transport central administrative board on March 4, 2005. Kakhovka HPP: - Nova Kakhovka Town Executive Committee, industry department, room 308, on March 4, 2005. Dnister HPP: - Novodnistrovsk Town Executive Committee, mayor’s reception on March 9, 2005

B. Disclosure Requirements Date Environmental Assessment/Audit/Management Plan/Other: Date of receipt by the Bank 03/09/2005 Date of "in-country" disclosure 03/05/2005 Date of submission to InfoShop 03/09/2005 For category A projects, date of distributing the Executive

Summary of the EA to the Executive Directors Safety of Dams: Date of receipt by the Bank N/A Date of "in-country" disclosure N/A Date of submission to InfoShop N/A * If the project triggers the Pest Management, Cultural Property and/or the Safety of Dams policies, the respective issues are to be addressed and disclosed as part of the Environmental Assessment/Audit/or EMP. If in-country disclosure of any of the above documents is not expected, please explain why: C. Compliance Monitoring Indicators at the Corporate Level (to be filled in when the ISDS is finalized by the project decision meeting)

OP/BP/GP 4.01 - Environment Assessment Does the project require a stand-alone EA (including EMP) report? Yes If yes, then did the Regional Environment Unit review and approve the EA Yes report? Are the cost and the accountabilities for the EMP incorporated in the Yes credit/loan? OP/BP 4.37 - Safety of Dams Have dam safety plans been prepared? Yes Have the TORs as well as composition for the independent Panel of Experts No (POE) been reviewed and approved by the Bank? Has an Emergency Preparedness Plan (EPP) been prepared and arrangements Yes been made for public awareness and training? OP 7.50 - Projects on International Waterways Have the other riparians been notified of the project? No If the project falls under one of the exceptions to the notification Yes requirement, has this been cleared with the Legal Department, and the memo to the RVP prepared and sent? What are the reasons for the exception? Please explain: Yes Has the RVP approved such an exception? Yes BP 17.50 - Public Disclosure Have relevant safeguard policies documents been sent to the World Bank’s Yes Infoshop? Have relevant documents been disclosed in-country in a public place in a Yes form and language that are understandable and accessible to project-affected groups and local NGOs? All Safeguard Policies Have satisfactory calendar, budget and clear institutional responsibilities Yes been prepared for the implementation of measures related to safeguard policies? Have costs related to safeguard policy measures been included in the project Yes cost? Does the Monitoring and Evaluation system of the project include the Yes monitoring of safeguard impacts and measures related to safeguard policies? Have satisfactory implementation arrangements been agreed with the Yes borrower and the same been adequately reflected in the project legal documents? D. Approvals

Signed and submitted by: Name Date Task Team Leader: Mr Dejan R. Ostojic 04/11/2005 Environmental Specialist: Mr Bernard Baratz 03/30/2005 Social Development Specialist Additional Environmental and/or Mr Norval Stanley Peabody 04/11/2005 Social Development Specialist(s): Approved by: Regional Safeguards Coordinator: Mr Ronald N. Hoffer 04/08/2005 Comments: Sector Manager: Mr Peter D. Thomson 04/11/2005 Comments: