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Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: 32240-AL PROJECT APPRAISAL DOCUMENT ON A PROPOSED ADAPTABLE PROGRAM LENDING CREDIT Public Disclosure Authorized IN THE AMOUNT OF SDR 11.7 MILLION (US$17.5 MILLION EQUIVALENT) TO ALBANIA FOR AN INTEGRATED COASTAL ZONE MANAGEMENT AND CLEAN-UP PROJECT IN SUPPORT OF THE FIRST PHASE OF THE Public Disclosure Authorized INTEGRATED COASTAL ZONE MANAGEMENT AND CLEAN-UP PROGRAM May 25, 2005 Environmentally and Socially Sustainable Development Sector South East Europe Country Management Unit Public Disclosure Authorized Europe and Central Asia Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective March 30, 2005) Currency Unit = Albanian Lek (ALL) ALL 94.75 = US$ 1.0 US$ 1.508 = SDR 1.0 US$ 1.3 = € 1.0 FISCAL YEAR January 1 – December 31 ABBREVIATIONS AND ACRONYMS APL Adjustable Program Lending MoAF Ministry of Agriculture and Food BNP Butrint National Park MoCYS Ministry of Culture, Youth and CAS Country Assistance Strategy Sports CDD Community-Driven Development MoE Ministry of Environment CVCDP Coastal Village Conservation and MoEP Ministry of Economy and Development Program Privatization CZMP Coastal Zone Management Plan MoF Ministry of Finance EIA Environmental Impact Assessment MoLGD Ministry of Local Government and EU European Union Decentralization ESSF Environmental and Social MoTT Ministry of Transport and Safeguards Framework Telecommunications GDP Gross Domestic Product MoTAT Ministry of Territorial Adjustment GEF Global Environment Facility and Tourism GIS Geographic Information System MSP Medium Sized Project GoA Government of Albania NGO Non-Governmental Organization GRP Gross Regional Product PAO Project Authorizing Official GTZ German Agency for Technical PCU Project Coordination Unit Cooperation PDO Project Development Objective ICZM Integrated Coastal Zone PHRD Policy and Human Resources Management Development ICZMCP Integrated Coastal Zone PPF Project Preparatory Facility Management and Clean-up Project PSC Project Steering Committee IDA International Development SCDP Southern Coast Development Plan Association SEA Strategic Environmental IP Implementation Progress Assessment IT Implementation Team UNECE United Nations Economic MAP Mediterranean Action Plan Commission for Europe METAP Mediterranean Technical UNEP United Nations Environment Assistance Program Program Vice President: Shigeo Katsu Country Director: Orsalia Kalantzopoulos Sector Manager: Marjory-Anne Bromhead Task Team Leader: Rita E. Cestti ALBANIA INTEGRATED COASTAL ZONE MANAGEMENT AND CLEAN-UP PROJECT (APL-1) CONTENTS Page A. STRATEGIC CONTEXT AND RATIONALE ......................................................... 1 1. Country and sector issues........................................................................................ 1 2. Rationale for Bank involvement ............................................................................. 2 3. Higher level objectives to which the project contributes........................................ 3 B. PROJECT DESCRIPTION......................................................................................... 4 1. Lending instrument ................................................................................................. 4 2. Program objective and phrases ............................................................................... 4 3. Project development objective and key indicators.................................................. 5 4. Project components................................................................................................. 6 5. Lessons learned and reflected in the project design................................................ 9 6. Alternatives considered and reasons for rejection ................................................ 10 C. IMPLEMENTATION............................................................................................... 10 1. Partnership arrangements (if applicable) .............................................................. 10 2. Institutional and implementation arrangements.................................................... 11 3. Monitoring and evaluation of outcomes/results.................................................... 12 4. Sustainability......................................................................................................... 13 5. Critical risks and possible controversial aspects................................................... 13 6. Credit conditions and covenants ........................................................................... 15 D. APPRAISAL SUMMARY....................................................................................... 16 1. Economic and financial analyses.......................................................................... 16 2. Technical............................................................................................................... 18 3. Fiduciary ............................................................................................................... 20 4. Social..................................................................................................................... 21 5. Environment.......................................................................................................... 22 6. Safeguard policies................................................................................................. 23 7. Policy Exceptions and Readiness.......................................................................... 24 ANNEXES Annex 1: Country and Program Background.................................................................... 25 Annex 2: Major Related Projects Financed by the Bank and/or other Agencies.............. 31 Annex 3: Results Framework and Monitoring.................................................................. 33 Annex 4: Detailed Project Description ............................................................................. 38 Annex 5: Project Costs...................................................................................................... 49 Annex 6: Implementation Arrangements.......................................................................... 50 Annex 7: Financial Management and Disbursement Arrangements ................................ 53 Annex 8: Procurement Arrangements............................................................................... 58 Annex 9: Economic and Financial Analysis..................................................................... 64 Annex 10: Safeguard Policy Issues................................................................................... 70 Annex 11: Project Preparation and Supervision ............................................................... 71 Annex 12: Letter of Development Policy ......................................................................... 73 Annex 13: Documents in the Project File......................................................................... 81 Annex 14: Statement of Loans and Credit........................................................................ 82 Annex 15: Country at a Glance......................................................................................... 84 MAPS IBRD 33577: Integrated Coastal Zone Management and Clean-up Project IBRD 33742: Southern Coastal Zone ALBANIA INTEGRATED COASTAL ZONE MANAGEMENT AND CLEAN-UP PROJECT (APL-1) PROJECT APPRAISAL DOCUMENT EUROPE AND CENTRAL ASIA ECSSD Date: May 25, 2005 Team Leader: Rita E. Cestti Country Director: Orsalia Kalantzopoulos Sectors: General water, sanitation and flood Sector Manager/Director: Laura Tuck protection sector (30%); solid waste management (30%); general public administration sector (15%); ports, waterways and shipping (15%); other social services (10%). Themes: Land administration and management (P); pollution management and environmental health (P); other environment and natural resources management (S); municipal governance and institution building (S); environmental policies and institutions (S) Project ID: P086807 Environmental screening category: Financial Intermediary Assessment Lending Instrument: Adaptable Program Leading Safeguard screening category: Requires framework (Credit) Project Financing Data [ ] Loan [X] Credit [X] Grant [ ] Guarantee [ ] Other: For Loans/Credits/Others: 17.50 Total Bank financing (Sum): 17.50 Proposed terms: Grace period 10 years and Loan Maturity 20 years Financing Plan (US$m) Source Local Foreign Total BORROWER/RECIPIENT 5.03 0.68 5.71 INTERNATIONAL DEVELOPMENT 6.50 11.00 17.50 ASSOCIATION GLOBAL ENVIRONMENT FACILITY 0.54 0.41 0.95 LOCAL COMMUNITIES 0.70 0.56 1.26 EC: EUROPEAN COMMISSION 2.90 2.30 5.20 AUSTRIA, GOV. OF (EXCEPT FOR FED 0.65 1.95 2.60 CHANCELLERY-DG DEV COOP) NETHERLANDS, GOV. OF THE (EXCEPT 0.78 2.33 3.11 FOR MOFA/MIN.OF DEV.COOP.) JAPAN: MINISTRY OF FINANCE - PHRD 1.10 1.13 2.23 GRANTS Total: 18.20 20.36 38.56 Borrower: Albania Responsible Agency: Ministry of Territorial Adjustment and Tourism Integrated Coastal Zone Management and Clean-Up Project Project Coordination Unit (PCU) Ms. Silva Dracini, PCU Director Address: Blvd. “Deshmoret e Kombit” Tirana, Albania Tel: 00 355 4 273738 E-mail: [email protected] Estimated disbursements (Bank FY/US$m) FY 2006 2007 2008 2009 2010 Annual 2.68 4.80 5.23