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TOTAL REGIONAL Vik MASTER PLANS - 48 6 515 744 I5463 ---- I I TOTAL URBAN Vik MASTER PLANS - 40

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TOTAL REGIONAL Vik MASTER PLANS - 48 6 515 744 I5463 ---- I I TOTAL URBAN Vik MASTER PLANS - 40 Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: 42 122-BG PROJECT APPRAISAL DOCUMENT ON A Public Disclosure Authorized PROPOSED LOAN IN THE AMOUNT OF EURO 8 1.OO MILLION (US$ 1 18.70 MILLION EQUIVALENT) TO THE REPUBLIC OF BULGARIA FOR A MUNICIPAL INFRASTRUCTURE DEVELOPMENT PROJECT Public Disclosure Authorized November 2,2009 Sustainable Development Department Central Europe and the Baltic Countries Europe and Central Asia Region 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 Public Disclosure Authorized Bank authorization. CURRENCY EQUIVALENTS Exchange Rate Effective (September 30,2009) Currency Unit = BGN - Bulgarian Lev 1 Euro (e) = BGN 1.96 FISCAL YEAR January 1 - December 31 ABBREVIATIONS AND ACRONYMS CFAA Country Financial Management Assessment CoM Council of Ministers CPAR Country Procurement Assessment Report CPS Country Partnership Strategy DA Designated Account DO Development Objective EC European Commission EC-DG European Commission - Director General Region EDD Environment Due Diligence EIA Environmental Impact Assessment EMF Environmental Management Framework EMP Environment Management Plan ERDF European Regional Development Fund ERR Economic Rate of Return EU European Union FMIS Financial Management Information System ha hectares IBRD International Bank for Reconstruction and Development IDA International Development Association IFA International Fiduciary Assessment IF1 International Financial Institutions IFR Interim Financial Reports ISPA Instrument for Structural Policies for Pre-Accession Km Kilometers 11s litershecond LA Loan Agreement LAPF Land Acquisition Policy Framework LEGEN Environmentally and Socially Sustainable Development and International Law Unit MDE Maximum Design Earthquake MIDP Municipal Infrastructure Development Project MoEW Ministry of Environment and Water MoF Ministry of Finance MoH Ministry of Health MoU Memorandum ofUnderstanding MRDPW Ministry of Regional Development and Public Works NCB National Competitive Bidding O&M Operations and Maintenance OBE Operating Basis Earthquake OPCQC Operational Policy Committee Quality Assurance and Compliance Unit PA Protected Area PFM Public Financial Management PHARE Poland Hungary Assistance for the Reconstruction ofthe Economy PHRD Population and Human Resource Development PIU Project ImplementationUnit PMF Portable Maximum Flood PPIAF Public Private Infrastructure Advisory Facility ROP EU Regional Operating Program SDD Social Due Diligence SEWRC State Energy and Water Regulatory Commission FOR OFFICIAL USE ONLY SOE Statement of Expenditures SOP EU Sector Operational Program SSA Sanitary and Security Area TSA Treasury Single Account UFW Unaccounted for Water VAT Value Added Tax ViK Vodosnabdiavane i Kanalizacia (water and wastewater utility) WCRMP Water Companies Restructuringand Modernization Project Vice President: Philippe Le Houerou, ECAVP Acting Country Director: Theodore 0.Ahlers, ECCUS Country Manager Florian Fichtl, ECCBG Sector Manager: Wael Zakout, ECSSD Task Team Leader: Gabriel Ionita, ECSSD This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not be otherwise disclosed without World Bank authorization. BULGARIA MUNICIPAL INFRASTRUCTURE DEVELOPMENT CONTENTS Page I. STRATEGIC CONTEXT AND RATIONALE .................................................................. 1 A . Country and sector issues .................................................................................................... 1 B. Rationale for Bank involvement .......................................................................................... 2 C . Higher level objectives to which the project contributes .................................................... 2 I1. PROJECT DESCRIPTION.................................................................................................. 2 A . Lending instrument.. ............................................................................................................ 2 B. Program objective and phases ............................................................................................. 3 C . Project development objective and key indicators .............................................................. 3 D. Project components., ........................................................................................................... -3 E. Lessons learned and reflected in project design .................................................................. 4 F. Alternatives considered and reasons for rejection............................................................... 4 I11. IMPLEMENTATION ....................................................................................................... 5 A . Partnership arrangements (if applicable) ............................................................................. 5 B. Institutional and implementation arrangements .................................................................. 5 C . Monitoring and evaluation ofoutcomeshesults .................................................................. 6 D. Sustainability ....................................................................................................................... 6 E. Critical risks and possible controversial aspects ................................................................. 6 .. F. Loan conditions and covenants ............................................................................................ 8 IV. APPRAISAL SUMMARY ................................................................................................ 9 A . Economic and financial analysis ......................................................................................... 9 B. Technical ........................................................................................................................... 10 C . Fiduciary ............................................................................................................................ 11 D. Social ................................................................................................................................. 12 E. Environment ...................................................................................................................... 15 F. Safeguard policies .............................................................................................................. 17 G . Policy exceptions and readiness ........................................................................................ 19 Annex 1: Country and Sector Background............................................................................... 20 Annex 2: Major Related Projects Financed by the Bank and/or other Agencies ..................24 Annex 3: Results Framework and Monitoring......................................................................... 25 Annex 4: Detailed Project Description ...................................................................................... 28 Annex 4.1: List of Regional and Urban Water and Wastewater Utilities covered by the Master Plans................................................................................................................................. 35 Annex 5: Project Costs ................................................................................................................ 38 Annex 6: Implementation Arrangements.................................................................................. 39 Annex 7: Financial Management and Disbursement Arrangements ..................................... 40 Annex 8: Procurement Arrangements....................................................................................... 47 Annex 9: Economic and Financial Analysis .............................................................................. 56 Annex 10: Safeguard Policy Issues ............................................................................................. 58 Annex 11: Project Preparation and Supervision ...................................................................... 68 Annex 12: Documents in the Project File .................................................................................. 69 Annex 13: Statement of Loans and Credits............................................................................... 70 Annex 14: Country at a Glance .................................................................................................. 71 Annex 15: Maps ........................................................................................................................... 73 BULGARIA MUNICIPAL INFRASTRUCTURE DEVELOPMENT PROJECT APPRAISAL DOCUMENT EUROPE AND CENTRAL ASIA ECSSD Date: November 2,2009 Team Leader: Gabriel Ionita Acting Country Director: Theodore 0.Ahlers Sectors: General water, sanitation and flood Sector Director: Peter D. Thomson protection sector (1 00%) Sector Manager: Wael Zakout Themes: Other urban development (P) Project ID: PO99895 Environmental screening category: Full Assessment _.. Lendinn" Instrument: SDecific1 Investment Loan [XI Loan [ ] Credit [ ] Grant [ 3 Guarantee [ ] Other: For Loans/Credits/Others: IBRD Total Bank financing (US$m.): 118.70 (equivalent). The loan will be denominated in Euros for an amount of €8 1 million. Development Total: 108.30 40.00 148.30 Borrower:
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