E802 September 2003

Republic of Moldova Public Disclosure Authorized Agricultural Pollution Control Project

Environmental Assessment and

Public Disclosure Authorized Environmental Management Plan Public Disclosure Authorized Public Disclosure Authorized ACRONYMS & ABBREVIATIONS

ACSAAgency for Consultancy and Schooling in Agriculture ACAAlliance for Co-operation in Agriculture AGeoMAgency of Geology of Moldova BSSAPStrategic Action Plan for Rehabilitation of the Black Sea CAPMUConsolidated Agricultural Projects Management Unit CQConsultant Qualification ECEuropean Community EMECEnvironmental Mitigation Eligibility Criteria EUEuropean Union GEFGlobal Environment Facility GOEGovernment Owned Enterprise GOMGovernment of Moldova IDAInternational Development Agency IOCIncremental Operational Cost LCSLeast Cost Selection LDPHLapusna Department for Public Health LPALapusna Pilot Area LTEALapusna Territorial Ecological Agency MAFIMinistry of Agriculture and Food Industry MECTDMinistry of Ecology, Construction and Territorial Development MFMinistry of Finance MHMinistry of Health NGO Non-Governmental Organisation NSNational Shopping NSCPMNational Scientific Centre of Preventive Medicine PAPPublic Awareness Programme PCCProject Co-ordination Committee PMU Project Management Unit PPUProject Preparation Unit PSCProject Steering Committee QCBSQuality-and Cost-Based Selection RECRegional Ecological Centre Moldova RISP Rural Investment and Services Project SEIState Ecological Inspectorate SFSState Forestry Service "Moldsilva" TACISTechnical Assistance for Community of Independent States

Exchange rate 19 April 2003. 14.75 Lei = US$ 1.

2 Republic of Moldova: Agricultural Pollution Control Project (APCP). Environmental Assessment (EA) and Environmental Management Plan (EMP).

Introduction.

According to the GEF Black Sea Environmental Programme's 1997 Annual Report, the Danube contributes 52% of the nitrogen (N) input (780,000 out of 1,500,000 t. N) and 67% of the phosphorous (P) input (100,000 out of 150,000 t. P.). These are the principal causes of eutrophication in the Black Sea. Because of decreased economic activity over the last 15 years in the former centrally planned economies, the total discharges of N & P have decreased by about 25%. However, as economic activities increase, discharge levels are anticipated to rise, unless steps are taken to introduce positive initiatives especially environmentally friendly land use practices. These practices should have the objective not only of preventing increased discharges with increased output, but also reducing current emission levels without sacrificing economic performance.

Each year, agriculture contributes about 900,000 t of N and 60,000 t of P to the Black Sea. Although only about 1% to 2% of this comes from Moldova, principally because it only accounts for 1.6% of the land area (3.38 million h ectares), the discharges of N and P from agricultural activities into surface water account for about 90% and 93% respectively of its discharges into the Danube: these are far higher numbers than surrounding countries. (Nutrient Balances for Danube Countries: Moldova. Project EU/AR/102A/91). Therefore, trying to reduce discharges from agricultural activities is a priority. I n addition, because of the highly fragile nature of the soils in Moldova and with about 1.5 million hectares (80%) of arable land hilly,' soil erosion is relatively significant. Much of the eroded soil stays within the country, but some is carried into the Danube and eventually into the Black Sea: this soil contains N & P. So again, reducing this source of N & P through improved agricultural practices is important.

Groundwater pollution with nitrates and microbial organisms from excreta has a major social significance from the point of view of drinking water supply for rural settlements. Excessive nitrates in the water can lead to nitrate poisoning, especially in infants. Again, because most human excreta goes directly into the ground without treatment, there is a danger that the drinking water will be polluted with harmful bacteria such as Streptococus fecalis and Fecalis coliforms. Also, low levels of sanitation and a lack of hygiene are increasing the transmission of enteric germs, leading to diseases including Acute Diarrhoeic Disease.

The proposed project is in accordance with the "Strategic Action Plan for the Protection and Rehabilitation of the Black Sea" (BSSAP) formulated with the assistance of the Global Environmental Facility (GEF). Thus, while the major environmental objective of the Agricultural Pollution Control Project (APCP) is to demonstrate methods of reducing the amount of nutrients leached into groundwater or flowing directly into the river systems and then into the Black Sea, a secondary objective is to improve the hygienic standards of rural communities. This will be undertaken through integrated land and water use management with the full co-operation of the beneficiaries. The project has been designed and will be implemented in a participatory manner so as to have the maximum environmental (and financial) impact on the area. Hence, it is expected to be overwhelmingly environmentally beneficial with no major and few minor adverse impacts, if any.

Moldova has signed a number of international conventions on environmental protection and biodiversity conservation 2 These include: * The Convention on the Conservation of European Wildlife and Natural Habitats (Bern, 1997). * The Convention on Biological Diversity (Rio de Janeiro, 1992).

Area in million ha. Total: 3.4; Agricultural land: 2.3; Arable: 1.9; Hilly arable: 1.5. 2 Moldova has ratified 15 Environmental Conventions. These are detailed in Appendix 1a.

3 * The Convention on the Protection and Use of Trans-boundary Watercourses and International Lakes (Helsinki, 1992). * The Convention on Environmental Impact Assessment in Trans-boundary Context (Espoo, 1991). * The Convention on Wetlands of International Importance especially as a Habitat of Aquatic Birds (Ramsar, 1971).

The project will work towards honouring Moldova's international commitments to reduce nutrient loads. In this respect, it will work closely with a UNDP funded project that is assisting Moldova to harmonise its legislative framework relevant to European Union (EU) directives, in particular the Nitrates Directive.

In terms of regional agreements, Moldova is a member of the International Commission for the Protection of the Danube River (Danube Commission). It is also a party to: * The Protocol on Establishing the Trans-boundary Biosphere Reserve of the Danube Delta and Scientific Reserve "Prutul de Jos", (27th July 2000 between Moldova and Romania). * The Statement on the Lower Danube Green Corridor signed by Bulgaria, Moldova, Romania, and Ukraine (5th June 2000, Bucharest, Romania). * The Convention on Co-operation for the Protection and Sustainable Use of the Danube (Sofia, 1994).

This project has greatly benefited from two sister GEF funded projects namely the Agricultural Pollution Control Project in Romania and the Agricultural Development Project in Georgia.

The Agricultural Pollution Control Project. (APCP).

The APCP will provide a mix of investment and policy related activities to mainstream environmental practices into the agricultural sector. It will be implemented in close association with the US$ 40 million IDA-funded Rural Investment and Services Project (RISP). It will harness the synergies between the two projects assisting both the farmers and the agro-industry beneficiaries of RISP to put in place or expand mitigation measures necessary to reduce nutrient discharge.

Through the proper storage and use of animal (and household) waste and by expanding environmentally friendly agricultural practices, combined with the conversion of an agricultural area back to its former wetland status, the potential to reduce N and P flowing into ground and surface waters should be significant. These initiatives include: * Correct storage and application of organic fertilisers. * Testing of soil, especially for N & P levels, but also C and pH. * Optimum application of mineral fertilisers (and lime if necessary). * Contour ploughing, terracing and minimum tillage. * Crop rotations and strip rotation to reduce pest and diseases and to provide green manure. * Introducing or expanding trees within the farming system (agro-forestry). * Using certified seeds to enhance productivity. * Buffer strips of perennials along watercourses. * Appropriate land use practices such as planting permanent crops in erosion prone areas. * Conversion of some land back to wetland. * Promote organic farming. * Assist agro-industries reduce their pollution, particularly wastewater. * Training, demonstration and replication. * Strengthening policy, enforcement and institutional capacity for nutrient pollution control.

All these activities should leaded to an increase in sustainable agricultural production, decreased erosion and improved quality of surface and ground water.

4 This is a pilot project to test the effectiveness of the proposed intervention. A critical watershed area in Lapusna Judet (County) in southeast Moldova has been chosen to demonstrate the various initiatives, for this area displays all the symptoms of primitive manure management and poor land use practices. Also, it has a population that is eager to participate in and learn from environmentally friendly and economically advantageous farming practices. In summary, it was selected because: * Representative in terms soil, climate and other geo-ecological conditions. * Nutrient pollution of surface and underground water is an evident environmental problem. * Local authorities/communities are aware of the environmental problems and are ready to solve them by all available means. * Project objectives are properly understood and supported by the local people. * Representative in terms of agro-industrial practices. * There is an accessible road network and good communications.

The Pilot Area and Existing Conditions.

Geographically, the pilot watershed area is part of the River Lapusna basin, which is one of the main tributaries of the River Prut3. The area encompasses eight communes 4 with sixteen villages in the Lapusna Judet having a total area of just less than 50,000 hectares, with about 28,000 ha in agriculture. There is a range of areas and households between the communes. For example, Negrea commune has 1,112 ha of agricultural land and 728 households (average area 1.53 ha per household) whereas Carpineni commune has 9,121 ha of agricultural land with 4,682 households (average area 1.95 ha per household). The total 2000 population is given as 43,234 in 14,737 families (average size 2.93). The village size ranges from under 200 (Rusca and Semionovca) to over 11,000 in Carpineni. Over the last decade the population has increased slightly. Table 1 gives the current land use and ownership in the project area.

Table 1. Land Use and Land Ownership in the Project Area (hectares).

Landuse Total Private Public Household Individual Collective Reserve Pasture and land fund forest Arable land 21,363 Vineyard 4,519 Orchard 2,319 Sub-total 28,201 2,384 8,063 17,431 323 agricultural Pasture 5,698 5,698 Forestl. 10,521 10,521 Water and 829 829

p o n d s______Sub-total 45,249 2,384 8,063 17,431 1,152 16,219 Other land 1,354 (urban/roads) Total 46,603 Note 1. The forest areas are used for browse and grazing. Generally, these are over-exploited. Source. Project Implementation Plan (PIP).

3River Prut is one of the main tributaries of the Danube. It has a significant importance in a trans-boundary context sharing the frontiers between the Republic of Moldova and Romania. 4 Pascani, Lapusna, Sofia, Negrea, Carpineni, Mingir, Voinescu, Tochile-Raducani.

5 Table 1 states that there are 8,063 ha as individual holdings and 2,384 ha of household land, the same Project Implementation Plan states that there are 5,800 individual farms, two agricultural associations, 3 joint-stock companies and 10 companies with limited liability. Previously, land belonged to the state and it was farmed collectively in large lots, rather than the current size, (with or without household land), of between 1.8 and 1.4 ha per individual farm. Under state ownership, the emphasis was on feed and fodder production to supply the cattle, pig and poultry farms, rather than on wheat, maize and sunflower, now grown for subsistence. Inputs were provided such as feed, fertilisers, and machinery and much of the organic fertilisers were returned to the land. Today, there is a lack of machinery especially for spreading dung in the fields; thus most animal manure is discarded by road and riverside or in unauthorised dumps. Much of the N and P in this manure finds it way into surface and groundwater, rather than being taken up by plants. Chemical fertilisers are no longer subsidised and hence sparingly used. All this has adversely affected arable productivity. Also, the number of farm animal, now individually owned, have been reduced because no longer is there sufficient food for them. But they are still in excess of the carrying capacity, resulting in underfed animals and overuse of pastures and forests for feed, fodder and browse.

Table 2 gives the current livestock distribution by farm animal type and ownership as well as an estimate of manure production and its potential availability as an organic fertiliser.

Table 2. Livestock Numbers by Type and Ownership with an estimate of annual Dung Production, N & P content and its Availability.

Cattle Horses Pigs Sheep/Goats Poultry Total Public 24 32 396 1,233 0 Private 5,223 1,238 8,873 13,297 115,000 Total 5,247 1,270 9,269 14,430 115,000 Manure/urine 47,000 11,400 14,800 10,200 2,300 [85,700] production tonnes wet (available) (23,200) (5,600) (14,800) (4,200) (2,300) [50,100] N content and 183.3 40.0 84.5 93.6 51.1 452.5 available (t) 90.4 19.7 84.5 38.5 51.1 284.2 (63%) P content and 56.4 9.1 22.2 16.3 9.2 113.2 available (t) 27.8 4.5 22.2 6.7 9.2 68.2 (60%) Note. Cattle numbers and ownership have been taken from the PIP report. Manure production estimates and N & P estimates have been taken from Table B-i1 of Nutrient Balance for Danube Countries (Moldova). Project EU/ARJ102A/91. These figures are different (and less) from the ones given in Working Paper 1 (page 41). The availability is assumed to be the days the animals spend in shelters each year, namely 365 days for pigs and poultry, 180 days for cattle and horses and 150 days for sheep and goats (Working Paper 1). No account is taken of bedding straw, estimated at 3,850 t (Working Paper 1). The mineral content of this straw is estimated to be 10 t N & 2.5 t P. Source. PIP (2002) Working Paper 1 (2002), Project EU/AR/102A/91 (Moldova Volume 1).

Table 2, indicates that an estimated 284 tonnes of N and 68 t P are potentially available to apply to cereal crops and sunflower. This will cover about 7,300 ha of arable land each year or one-third of the area at an application rate of the equivalent of 10 t wet cattle dung (39 kg. N). But as stated in Working Paper 4, only 95 tonnes of manure were applied in 2000 (page 13). Thus, most of the manure was not used and much of this was disposed of in dumps that were liable to leakage into surface and ground water.

In addition, erosion is one of the major factors that affect the soils in the pilot area mainly because of hilly landscape as well as periodic heavy (summer) rainfalls. For example, in Sofia and Pascani communes more than 60% of the agricultural land is moderately to highly degraded because of the erosion process. Delluvial soils are most predisposed to erosion; this is one of the main causes of the high rate of erosion.

6 Besides natural factors, erosion is caused by human activities. Since land privatization, arable agriculture has been practised without much concern for soil conservation. The conversion of hilly pastures, meadows and the occasional forest into annual cropland ignoring the relief also contributes to soil degradation. Practically, a 11 s lopes are intensively cultivated in s mall 1and parcels. Usually they are ploughed up and down, exacerbating soil erosion and washing away the top humus layer containing N and P. Thus, much of the 21,263 ha under arable agriculture are suffering from excessive erosion.

The Annual rainfall in the project area is moderate at around 500 mm. However, the rainfall distribution includes heavy downpours particularly in the summer leading to a serious flood risk. In 1994, a major rainstorm in the Lapusna River caused a serious flood. Many houses were destroyed and several people lost their lives. The floods were greatly exacerbated by dam failure. There are also periodic landslides.

The Existing Environmental Assessment.

This is the current position in the project area and is typical of the rest of the country. Poor agricultural practices are exacerbating erosion and a lack of chemical fertilisers is depressing productivity. Organic fertilisers, which could replace up to a third of chemical fertilisers, are not being used because of a lack of transport and spreading equipment or because of poor organisation to use existing equipment. Consequently, manure is being dumped along roads, rivers and streams etc. These concentrations of organic fertilisers leach into surface water and increase the amount of N and P in the Danube Delta, thus intensifying eutrophication rates. Also, N and P from dung percolates into groundwater and then into well water, causing potential health hazards. Existing animal numbers are greater than the carrying capacity of the land, especially as feed and fodder from outside are no longer available or affordable. The pastures and woodland resources are being over used to the detriment of the soil. In addition, because 'commercial' fuel availability has decreased, wood and residues are being used as substitutes. This is further degrading forest areas and affecting the amount of residues being returned to the soil.

Apart from arable agriculture being adversely affected, the vineyards and orchards are suffering through lack of inputs and depressed producer prices. Therefore, routine maintenance is being neglected to the detriment of the quality and quantity of the crops. In consequence, existing agro-industries have seen a decline in the quantity and quality of crops being delivered to the factories. This is affecting their profitability. They are unable to afford proper disposal of effluents from (reduced) outputs. Again much effluent is being disposed of in inappropriate ways, although there are (environmental) laws that govern such disposals. Some of this untreated or partially treated effluent finds its way into surface and ground water, adding to the pollution problem.

Agricultural areas within the country are on a downward economic and environmental spiral. But with a little outside help, coupled with the proper use of existing resources, improved arable, pasture and forestry practices, better co-operation with agro-industries and the full and enthusiastic co-operation of local people, assisted by local and central government, there is no reason why this situation cannot and should not be reversed. The principal thrust of this APC project is to demonstrate how this can be achieved.

Project Components.

The project will comprise four components.

(i) Promotion of Mitigation Measures to Reduce Nutrient Load in Surface and Ground Water. This component will be implemented at two levels. First it will work in close association with the Rural Investment Services Project's components for business development, rural support services and rural finance to ensure that agricultural services and agro-industries have access to needed advice, support

7 and finance. Second, the project will work in a pilot watershed area comprising part of the Lapusna tributary of the Prut River, where an integrated watershed management plan will be implemented.

(ii) National Level Strengthening of Policy and Regulatory Capacity. S The project will support strengthening of the national legislative, regulatory and institutional capacity of the government of Moldova in agricultural pollution control. It will co-operate with a UNDP project that is providing assistance to harmonise local and national legislation with EU's directives on environmental pollution control, including the Nitrates Directive (91/676/EEC).

(iii) Public Awareness and Replication Strategy. A broad local and nation-wide public information campaign will be undertaken to disseminate information on the benefits of the proposed project activities with the aim of achieving replicability nation-wide. At the local level, the main audience will be the direct stakeholders of the project (local and county officials, farmers, community groups, school children and NGOs). The objective of the activity will be to familiarise the population and help induce the behavioural changes necessary for the project to succeed.

(iv) Project Management Unit. A Project Management Unit will be established under the umbrella of Consolidated Agricultural Project Management Unit (CAPMU). The GEF component would provide support for hiring relevant staff to implement APCP in close association with the RISP.

Environmental Benefits.

The proposed mitigation measures to be supported from GEF funds would reduce environmental pollution and should result in the following positive effects. * Improve facilities for waste management. * Provide soil testing to determine the appropriate application rate of organic and inorganic fertilisers. * Promote the use of manure as fertiliser. This should at least maintain, if not increase the organic content of the soil, thus reducing susceptibility to erosion. * Increase the organic matter of the soil. This should help encourage good soil tilth by improving soil structure and, therefore, reduce energy requirements for cultivation. * Promote of conservation tillage, crop rotation, planting of buffer strips and other environment- friendly practices. This would contribute significantly to reduce surface runoff of pollutants and to promote sustainable production and increased bio-diversity. * Introduce or extend trees within the farming system, to assist arable and pastoral production. * Reactivate a wetland to act as a filter for excessive pollutants and to encourage wetland habitats. * Recycle inert waste materials (glass, metal, plastic mass, etc.). This should contribute to cleaning up settlements, promote civic pride and reduce energy use. * Assist agro-industries in increasing environmental compliance.

All these project interventions should significantly increase public awareness and knowledge about environmental issues, while at the same time promoting economic development.

5A summary of the Legislative and Institutional Framework in Moldova is given in Appendix lb.

8 APCP: Environmental Management Plan (EMP).

This project is classified as Environmental Category B. Therefore, an Environmental Assessment has to be undertaken and an EMP prepared and described, including consultations and disclosures. Significant issues are highlighted and their treatment documented as a result of this analysis. As stated previously, this project i s a ssociated with the IDA credit-financed Rural Investment and S ervices Project (RISP), which is classified as Environmental Category Fl (Financial Intermediary Assessment).6 The RISP will provide technical assistance to farmers and business people through local NGOs (advisory and extension agency service providers) and financial assistance to a broad range of entrepreneurs in rural areas. If individuals or potential or actual business people ask for loan under RISP, then RISP will have to undertake an Environmental Review. This may be followed by an Environmental Impact Assessment (EIA) (Appendix 1c). The RISP project will build capacity in the Consolidated Agricultural Project's Management Unit (CAPMU) to undertake environmental reviews and ensure that the mitigation measures are followed. This technical assistance will be co-financed by a grant from the GEF through the APCP, thus minimising or avoiding negative environmental impacts. Therefore the APCP will assist RISP in providing advice and assistance on environmental mitigation measures and monitoring activities.

Project Activities and their Environmental Implications.

All the project activities that may have direct environmental implications concern Component 1 Promotion of Mitigation Measures to Reduce NutrientLoad in Surface and Ground Water. Component 2 National Level Strengthening of Policy and Regulatory Capacity and Component 3 Public Awareness and Replication Strategy will be used to facilitate and expand Component 1 activities. Therefore, only the activities under Component 1 will be dealt with in detail in relation to the EMP, but Component 2 on strengthening i nstitutional c apacity a nd e nvironmental 1egislation w ill a lso b e d iscussed. M ost o f the initiatives are overwhelmingly environmentally positive, but if some of the different interventions are not undertaken in accordance with standard procedures, then there could be negative environmental consequences. These concerns will be highlighted. . Some of the RISP financed projects may have adverse environmental impacts and therefore, the APCP project could provide an incremental grant to mitigate such negative impacts. The Project Implementation Plan (PIP) describes in detail the activities under RISP (pages 18 to 23) and those under APCP (pages 24 to 32). Therefore, they will not be repeated here. Only the sections that have direct environmental implication will be discussed.

Component 1. Promotion of Mitigation Measures to Reduce Nutrient Load in Water Bodies.

RISP Initiatives. Apart from complex and potentially dangerous projects, the Law on Environmental Protection does not address the need for ELAs on most projects. The activities to be financed under the RISP will be small, demand-driven investments for farm and non-farm income generating activities. Given the small size of the activities financed under the project, the environmental impacts of individual subprojects are expected to be small. However, for specific activities, their potential environmental impacts, and local cumulative impacts can only be known during project implementation. For this reason, the project will put in place an environmental review and screening mechanism that will: * carry out an environmental review and assessment as needed in accordance with Moldovan Law and World Bank requirements; * prevent financing of projects with significant environmental impacts; and * identify mitigation measures for project with less than significant environmental impacts, to be implemented as part of the subproject activities.

6An extract from the RISP World Bank PAD (Project Appraisal Document) is given in Appendix Ic.

9 If a project dealing with agricultural and/or agro-industry in RISP Credit Application is approved and mitigation measures are proposed, then the APCP may provide grants to undertake some or all of these measures. A key component is the availability and adaptability of measures at the project site. Through demonstration and training, the APCP will provide CAPMU and local LTEA and SEI staff with the skills to propose various mitigation initiatives and together with the APCP and other concerned agencies monitor the instillation and execution of such measures. A full description of the 'Programme Guidelines for the Environmental Mitigation Grant' is given in Annex 4 to the PIP. The purpose of the grant is to provide the incremental cost of mitigation measures to businesses that would otherwise be reluctant to install processes and techniques that could adversely affect their profits, but could reduce surface and groundwater pollution, principally N, P and faecal material and decrease erosion. Up to US$ 2 million is available for such purposes to reduce negative regional, national and global environmental impacts. Together with the SEI and the local Territorial Ecological Agency, APCP staff could assist RISP and CAPMU to monitor both the installation of mitigation measures and their proper functioning.

Manure management. As part of Component 1, the project will finance and provide incentives for the installation of up to 8 improved communal manure storage facilities and equipment for manure collection and application in the eight communes. All the eight sites were screened and approved by the all the legally required agencies including the State Ecological Inspectorate (SEI) and therefore no further environmental assessment (EIA) should be needed provided the concerns stated below are addressed. The platform sites meet ecological safety requirements such as safe distances from watercourses, shelter from the prevalent wind, suitable ground conditions and accessible. The local mayors have signed documents on the availability of these sites and these are lodged in the APCP office in Chisinau. In addition, 150 household storage units will be built in the first year to approved standards. It is envisaged that these individual units will increase to 1,200 by year five (5). Villages and households wishing to participate in the investment programme will be selected against agreed criteria and cost-sharing arrangements. Community training and awareness on best practices for waste collection and manure management including composting, testing, and field application will be provided. (Details are given in Working Paper 5). Some access roads to these and existing storage facilities may be improved or built. The environmental concerns under this sub-component may include: * leakages from the manure storage facilities (if construction is not made according to specifications); * mixing of inert waste with organic waste; * improper cleaning of the individual manure storage tanks and large manure platforms; * inappropriate manure spreading in the fields; * poor siting and use of existing storage facilities; * poor design of access roads leading to increased erosion; and * methane venting.

An environmental screening has been done and mitigating measures are proposed to address these issues: these are given in below and in Appendix 2. Also, an environmental management plan has been developed to ensure that activities undertaken in this sub-component will be closely monitored with regular inspections by the Lapusna Territorial Ecological Agency (LTEA) overseen by the State Ecological Inspectorate (SEI) and the Lapusna Department for Public Health (LDPH).

Companies will bid to build the communal storage platforms according to government standards. County Council engineering staff would collaborate in the design of village-level manure stores; these will have separate bins for different types of inert material. The engineers will work closely with the LTEA/SEI and the LDPH to ensure that the construction adheres to environmental guidelines on preventing nutrient leakage to surface and groundwater. Four piezometers (two upstream and two downstream) will be installed around each of the eight manure storage platforms to monitor the quality of surface and groundwater and to test if any nutrient seepage occurs. Community training and awareness will be

10 provided on good practices for waste collection and its separation, proper cleaning of tanks and platforms, manure management including composting and testing, and its field application.

There are 29 existing platforms/dumps in the pilot watershed area where up to 45 thousand tonnes of waste are stored, but just 10 of them are still in use. These latter usually belong to former and existing agro-processing factories. The remaining platforms are sited outside villages. They are surrounded by earth banks 1.5-3 m high, in which any kind of waste is dumped including animal waste, inert material, food and processed residue, etc. Most do not adhere to any environmental protection requirements and usually have been placed close to the watercourses or forests. Because of inadequate access roads, especially in winter and the wet spring period, often, people have dumped waste around them and not in them, thus expending the storage area. These sites are hazardous pollution sources.

Through technical assistance, the APCP would help local authorities prepare remedial programmes including designing proper access roads, waste segregation, recycling and stabilisation, including composting, t o a void further leakage. The p roject w ould also s upport the r eclamation o f t he e xisting platforms, primarily by including the land in shrub and tree planting programmes.

If the proposed new or improved access roads to existing and new platforms are not properly constructed and maintained then this could lead to increased erosion and poor accessibility at certain periods of the year. This is unlikely as the access roads will be of short length (200 - 500 m) and be on flat or slightly inclined land. Never the less it is important that they have proper drainage so that they are useable all year round. It will also be good if the project would plant trees along the roadsides. The County Council engineering staff would collaborate in the design of such roads according to government standards and with the help of LTEA/SEI supervise the construction. The local authorities may be able to obtain income through selling of compost etc. This could pay for road maintenance.

Pigs and poultry will be housed all year round, unlike cattle, horses, sheep and goats that will be put to pasture for about half the year. Therefore, the animal waste from pigs and poultry will be collected and stored year round. Some of this storage will be under anaerobic conditions and in summer, when the ambient temperature is above 30 degrees Celsius conditions are favourable for methane generation with 'mesophillic' bacteria. This is a potent greenhouse gas, having a 'forcing factor' twenty times that of carbon dioxide. The LTEA should monitor these platforms for methane production. Methane is also a versatile energy source. Therefore, the APCP will examine the feasibility of collecting and using the methane. The slurry produced as a result of methane extraction in a 'biogas' digester has a higher N & P value than unprocessed manure. Also, many pathogens are eliminated in the process. It may be possible to obtain co-financing from other donors to have a pilot biogas project and to test cheap digesters made from plastic. These are being used on a commercial scale in Viet Nam. On the other hand, the digesters being tried in Georgia use 'thermophillic' bacteria at temperatures in excess of 600 C and work all year round. The use of this design is another possibility.

Environmentally-friendlyland use practices. A second thrust of Component 1 is the promotion of Environmentally-friendly Land-use Practices, especially Agricultural Practices. This sub-component will promote the adoption of environmental- friendly land-use practices that would improve agricultural production while reducing nutrient discharge into surface and ground water. Technical assistance and financial support will be provided for sustainable agricultural practices, including: (i) nutrient m anagement - t he a pplication o f a nimal w aste m aterials o n a gricultural land a reas at rates determined by the nutrient needs of crops and nutrient content of the waste; (ii) conservation tillage - crop production in which the crop residues from the previous crop remain on the soil surface to provide erosion protection; (iii) integratedcropping management - the use of crop rotations and strip cropping to prevent erosion and provide adequate supplies of animal feed and forages in integrated farming systems; (iv) introducing or expanding trees within the farming system - these trees will assist productivity by fixing nitrogen, mulching the leaves into the soil and/or providing fodder; (v) vegetated buffer areas - permanent vegetated strips would be established at field and stream riparian boundaries and in water courses that will reduce and help prevent soil loss and its associated nutrient loss loads; (vi) promotion of organicfarming - as soon as organic farming certification procedures are defined at national level, small organic farming areas would be established in villages throughout the Lapusna Judet to demonstrate and help educate farmers on appropriate procedures for the production of organic fruits and vegetables (see Working Paper 4).

The environmental concerns under this sub-component may include: * inappropriate application of manure and chemical fertilisers if not carried out according to recommended rates for specific crops and/or their application at the wrong time; * through poor training and/or understanding, the recommended environmentally-friendly agricultural practices not fully applied.

With regard to organic farming there is an agency within the Ministry of Agriculture and Food Industry dealing with organic farming as well as an independent body dealing with certification. In 2000, a National Concept Paper on organic farming was adopted by the GOM, based on EU (IFOAM) standards. The standards have been elaborated and a guide has been printed and is available to farmers. A draft law on organic products should be ready by June 2003. The soil institute has also produced a map of soils suitable for organic farming: at present, there are about 40 farms growing 'organic crops.'

Also there is a department within the MOA dealing with plant protection and there are sufficient specialists to advise farmers on such matters. Before 1990 there were 14 biological laboratories, now 4 remain and before 1990 biological control was applied to 0.3 million ha. Now this has been reduced considerably, but the expertise remains.

An environmental screening has been done and mitigating measures are proposed to address these issues: these are given in below and in Appendix 2. Also, an environmental management plan has been developed to ensure that activities undertaken in this sub-component will be closely monitored with regular inspections by MAFI, the LDPH, the LTEA/SEI and other agencies.

In order to judge the correct application rate both for organic and inorganic fertilisers, soil testing will be a standard practice of APCP. Farmers will then be advised on the correct application rate for fertilisers. Initially, the project will provide equipment to transport and spread organic fertiliser on the fields. There will be training in fertiliser application and demonstration plots will be established in the project area, with different application rates, to impress on farmers the correct and timely use of fertilisers. The soil research institute will be involved in demonstrating various environmentally-friendly agricultural practices. The soil and ground water will be tested on these plots for nutrient levels throughout the farming season. Project staff, the soil institute, LDPH and the LTEA/SEI will monitor and evaluate this sub-component. The soil research institute will be involved in demonstrating various environmentally- friendly agricultural practices. Even before the project officially starts, the institute has collaborated with local farmers at two sites to lay out plots demonstrating strip cropping (planting along the contours), with controls. Erosion rates will be measured with and without strip cropping as well as yields.

In order to minimise the poor application of environmentally-friendly farming practices, demonstration plots will be established on various initiatives and training/retraining will be given to farmers' etc. on:

12 * Waste management practices that may be applied in farming and at the household level for the minimisation of well water pollution. * The beneficial utilisation of nutrients in waste materials for increased crop productivity. * The appropriate use of crop rotations for increasing crop yield and preventing nutrient losses. * The appropriate use of conservation management practices to prevent soil erosion and nutrient losses. * Best management practices for storage and recycling of nutrients. * Importance of waste application timing to insure safe utilisation. * Preparation of nutrient management plans for land application of waste materials.

Again, the soil and ground water will be tested on the plots, with and without interventions, for erosion rates and nutrient levels throughout the farming season. Project staff, consultants and LDPH, the LTEA/SEI will monitor and evaluate these interventions. Water testing will be in accordance with the Water Quality Criteria of Moldova (MECTD, Chisinau 1998).

The project will not finance the purchase of pesticides although farmers might continue to use some pesticides for their regular farming activities during the life of the project, especially in vineyards and orchards. All farmers that use or will use pesticides on their lands will be trained in the storage, handling and use of these chemicals as well as with respect to the careful disposal of the containers. The use of appropriate clothing will be encouraged through demonstration. Farmers may also use chemicals for the control of ticks and other parasites. These farmers will be included in the training in risk preventing; and in the handling, storage and use of pesticides. The monitoring of herbicide and pesticide use will be undertaken by LDPH and the LTEA/SEI. Testing will be in accordance with Bulletin No. 9 on Pesticides (MECTD, Chisinau 1998) to ensure that only approved chemicals -class III chemicals- are being used.

Improvedforest management and increasedtree and shrub planting. Another initiative of this component is the improvement of the existing forest and woodland resources and the promotion of shrub and tree planting. This sub-component will support the rehabilitation of existing forest areas and the development of a shrub & tree-planting programme that includes: (i) planting a mixture of tree, shrub and grass belts for the protection of water bodies; (ii) providing anti-erosion forest belts; (iii) promoting the ecological reconstruction of forests; (iv) demonstrating and encouraging agro-forestry practices (as described above); and (v) promoting school nurseries and tree/shrub planting in schoolyards.

The APCP assistance would consist of providing planting material, machinery and technical assistance for planting 132 ha as shelter or protective belts. The programme will be augmented and implemented by the State Forestry Service 'Moldsilva' with significant contributions from local communities (See Working Paper 6). The environmental concerns under this sub-component may include Moldsilva not having enough funds to restore forest areas and the lack of suitable species for agro-forestry interventions. Also through poor training and/or understanding the recommended environmentally-friendly agro-forestry practices may not be fully applied. An environmental screening has been done, but these initiatives have little if any negative impacts. Indeed they should be of considerable environmental benefit. The tree planting emphasis will focus on planting indigenous or well-understood exotic species such as Robinia pseudoacacia. This sub-component should lead to increased carbon sequestration in the woody biomass and the soil beneath the trees. It is also hoped that it will lead to increased planting by the people themselves. Supervision will be under the control of Moldsilva assisted the LTEA and the SEI.

Wetland restoration.

13 An important part of Component 1 is wetland restoration and the promotion of sustainable wetland management practices. Before construction of dams and levees, the floodplain was a natural system of accumulation and evacuation for the River Prut. This hydrological regime together with diverse land and marsh vegetation was an ideal habitat for animals, mainly aquatic birds and freshwater species. After draining, the Prut marshes lost about 70% of the flora and fauna species and agricultural productivity has decline over the years due to mismanagement. The local people have agreed to the restoration of the Lapusna Wetland of about 130 ha at the intersection of the Lapusna and Prut Rivers in the Danube Delta (see Working Paper 7 and the Sociological Survey in the Wetland Pilot Area). This sub-component has the full backing and approval of the MECTD and it would strengthen the State Forestry Service and several national laboratories and enable them t o c arry out the restoration by implementing hydrologic enhancement practices, re-vegetation of wetland zones and performing associated monitoring tasks. The consensus of the professional experts is that this sub-component will help enhance the nutrient filtration capacity because of this wetland and considerably enhance the biodiversity. The environmental concerns under this sub-component may include the introduction of aggressive (exotic) species, which may eventually dominate the wetland and the people over-exploiting the resources of the newly created wetland b ecause o f p oor training and wanting t o reap short-term b enefits at the expense o f l ong-term gains. An environmental screening has been done. Moldsilva and co-operating laboratories are fully aware of the dangers of introducing exotic and/or aggressive flora and fauna and all precautions will be undertaken to prevent this. Thus, mitigating measures are proposed to address these issues: these are given in Appendix 2. Also, an environmental management plan has been developed to ensure that activities undertaken under this sub-component will be closely monitored with regular inspections by LDPH, LTEA/SEI and Moldsilva etc. (Annex 7 of the PIP). This will detail its environmental and economic impacts and when and where necessary propose mitigation measures to negate adverse effects or enhancing initiatives to accentuate the benefits.

Agro-industrialpollution. Many existing agro-industries have poor effluent control and monitoring systems. Because of non- functioning public waste treatment plants and/or dilapidated treatment systems in the factories much effluent from these industries is discharged directly into the rivers and streams or is left to percolate into the ground. Together with the RISP and the local Environmental Inspectorate, the project will try to help agro-industries comply with environmental laws regarding the disposal of effluents etc. This will be done through inspection, advice and grants/loans to comply with existing laws. The project itself will only offer technical assistance, but through its influence it may be able to persuade government agencies to repair treatment plants and lever funds so that factories can repair or install proper effluent control systems. The environmental concern is that despite this initiative, individual agro-industries may be unwilling or unable to undertake the necessary actions to comply with the law and continue to pollute the surface and groundwater in the area. An environmental assessment has been done and mitigating measures are proposed to address these issues: these are given in Appendix 2. Wile it is not in the remit of the project t o enforce the e xisting laws related to discharge from these factories, an environmental management plan has been developed recommending that activities undertaken under this sub-component should be closely monitored with regular inspections by local Environmental Inspectorate, the LDPH, the LTEA and the SEI.

Monitoring and Evaluation. Under this component a monitoring and evaluation sub-component is incorporated to monitor the soil and water quality and the environmental impacts of the project. This sub-component will strengthen the capacity of the Lapusna Territorial Ecological Agency (LTEA), the State Environmental Inspectorate (SEI) and the Lapusna Department for Public Health (LDPH). Under the auspices of the project, they will carry out a comprehensive soil and water quality monitoring programme, with the help of other bodies such as the soil institute, Moldsilva and the MOA. This will be done in order to determine the impact of the various project activities such as manure and nutrient management, the implementation of

14 environment-friendly agricultural practices and the development of riparian buffers around the Lapusna River. Nationally and internationally approved monitoring procedures will be employed that will include the use of paired watershed, and upstream-downstream hydrologic and soil and water quality monitoring designs. For example, soil monitoring will be conducted in accordance with the "Eco-soil Monitoring Guide," [Soil Institute (Chisinau 1994)]. A modelling component will extend lessons learnt from the Lapusna basin to other watersheds in the Republic of Moldova (See Working Paper 8). A summary of the M&E programme is given in the Environmental Management Plan (EMP) section.

Component 2. National Level Strengthening of Policy and Regulatory Capacity.

As mentioned previously, the MEPTD is responsible for administering the Law on Environmental Protection. But, apart from complex and potentially dangerous projects, this law does not address the need for ELAs on most projects. A comprehensive Environmental Review (Environment Sector Review, dated March 2001, in project files) was conducted by a World Bank Environmental Expert and 1ocal consultants to: * assess the adequacy of the legislative framework for environmental assessment; * identify institutions that would be responsible for the EIA; * determine technical assistance and training needs for these institutions to adequately implement the environmental assessment (EJA) requirements; and * propose procedures for environmental screening, EIA preparation and implementation, possible mitigation measures for certain sub-projects, and monitoring and evaluation of implementation of EIA requirements.

A programme has been prepared by the above experts for strengthening the policy and regulatory capacity. This will c arry out an environmental review and assessment as needed in accordance with Moldovan Law and World Bank requirements and provide the various levels of environmental management training for the various levels of MEPTD staff, especially SEI and LTEA personnel as well as targeted APCP, RISP and CAPMU people in order to undertake assessments on the EIA Guidelines compatible with the law and World Bank requirements.

The Scope and Adequacy of the EMP.

Main Features. The main feature of the EMP is to implement a comprehensive soil and water monitoring programme in the project area in order to evaluate the effects of different project activities on nutrient reduction to surface runoff and groundwater sources. Standardised soil and water quality monitoring tests have been developed by Moldova's scientific and government agencies. These tests will provide decision-makers and public officials reliable data on problems and trends of N, P and faecal quantities in: * surface water, particularly the tributaries of the Danube River; and * ground water, especially in relation to the quality of drinking water.

In addition information will be provided on the amount and type of soil particles being eroded from the project land and their mineral and humus content. Some of these efforts are hampered by the lack of adequate field, laboratory and monitoring equipment and chemicals for the operation and maintenance of soil and water quality monitoring laboratories of the Soil Institute, the MECTD (water quality laboratory and hydrological department of the Hydro-meteorology Service, central and regional laboratories of State Environmental Inspectorate) and the Institute of Forest Research and Forestry Planning and the 'Hydrometeo' service. The project will provide additional laboratory equipment, chemicals and supplies, and training to build capacity of the SEI. The project would fund a comprehensive soil and water quality monitoring plan for collecting data from fields, wells, piezometers, streams, rivers and the proposed wetland that drain nutrient loads into the Danube River and the Black Sea. These data will be analysed

15 and made available to all stakeholders in a usable form. The project will develop and evaluate a watershed scale computer simulation model to predict and quantify the effects of agricultural activities in the watershed on the reduction of nutrients moving to the Danube River. The monitoring plan will be implemented by the PMU with technical assistance and equipment provided by the SEI, the Soil Institute, the Institute of Forest Research and Forestry Planning and the 'Hydrometeo' service.

Environmental Assessment (EA). An environmental assessment of the various project activities has been made and mitigation measures proposed to address various possible environmental impacts are addressed in the EMP shown in Appendix 2. This project should have overwhelming positive effects on the environment. The EMP addresses various environmental issues (like surface and groundwater quality, erosion, soil quality, and bio-diversity), potential environmental impacts, and proposed actions to be taken during the implementation phase of the EMP. Where there are potential negative impacts such as nutrient leakages from platforms and erosion from poorly constructed access roads and existing farming practices, remedial measures are specified. The EMP has been designed to monitor the soil and water quality and erosion of project activities so that immediate mitigation measures can be taken if the potential for an environmental damage occurs. Most of the actions of the EMP will be implemented in the first year of the project. Environmental evaluation indicators have been reflected in the EMP, which meet the objectives and goals of this project.

Stakeholder Consultation. Various stakeholders of the project have been consulted frequently. These include small farmers, members of farming organisations, agro-processing factory managers, NGOs such as ACSA, and REC, the Prefect of Lapusna and her staff, Mayors and Vice Mayors of the 8 communes, officials of MECTD, MAFI, Moldsilva, Agency of Geology (AgeoM) the Meteorological Department, and international agencies like the EU and UNDP. These stakeholders were visited individually or in groups and 'village meetings' were held. The purpose of the project was explained and the individual functions elaborated, especially in relation to the ongoing soil and water quality problems in the region and its effect on the river system and the Danube Delta. The record of these visits are on the project files and in the various World Bank documents, especially the Aide-memoires of the Bank's Task Manager/Environmental Expert. Both conducted missions where they met people from many concerned agencies including ministries, departments, scientific institutes and NGOs as well as officials and farmers in Lapusna Judet.

During the brief visit to Moldova in April 2003, the Environmental Consultant met many people involved in the project and held discussions with them. These included the project staff and people from MECTD including SEI, MAFI, Moldsilva (SFS), RISP, the Soil Institute, several local consultants who wrote the working papers and NGOs such as the Agency for Consultancy and Schooling in Agriculture and the Alliance for Co-operation in Agriculture. Two visits were made to Lapusna Judet and meetings were held with the Prefect of Lapusna and her staff, a mayor and a vice-mayor of two villages, the local territorial ecological agency, a wine factory manager and farmers. Visits were made to waste dumps, proposed communal platforms, a sewerage treatment plant, farms where demonstrations are to be established and several villages. The itinerary of this trip to Moldova is given in Appendix two (2) in the final section.

All the stakeholders agreed that interventions proposed in this project would be very good for the region. All the communes have signed up for communal platforms and many farmers agreed to have individual platforms. S ome o f t he s takeholders h ave o ffered t heir fields for d emonstrations a nd m onitoring a nd Mayors in selected villages have agreed that specific wells should be sampled for water quality. The draft EMP has been discussed with MECTD, MAFI, and Moldsilva, the Prefect of Lapusna and her staff and Mayors/vice Mayors of the communes. It is proposed that this draft EMP be widely circulated to all interested parties for comments and inputs before finalisation in line with the Government Regulation on

16 Public Participation in Environmental Decision Making (January 2000). The EMP has been translated into Romanian in early May 2003. The translation has been delivered to: The Ministry of Ecology Construction and Territorial Development. The Ministry of Agriculture and Food Industry. The State Forest Service "Moldsilva." The Prefecture of Lapusna Judet. The Executive Council of Lapusna Judet. Lapusna Ecological Agency. The Soil Institute. The State Hydrometeo Service. The Ecological Movement in Moldova, an NGO.

The Prefect of Lapusna and the Council will share the document at village level group meetings to create awareness and seek further input to conform to the above regulation. This will be an on-going process.

Monitoring and Evaluation Plan. A comprehensive soil and water monitoring programme has been developed for implementation. Project activities will be intensively monitored to determine the impact of the relevant activities on soil and water quality. A summary of the proposed monitoring and evaluation programme is given below. More detailed descriptions are given in the PIP and in various project annexes and working papers. The environmental monitoring and evaluation would be handled by the PMU in close co-operation with the MECTD, the Soil Institute and other agencies specified below.

Water monitoring. The project will strengthen the capacity of the MECTD (water quality laboratory and hydrological department of the Hydro-meteorology Service, central and regional laboratories of State Environmental Inspectorate) as well as the Soil Institute to carry out water and soil quality testing and monitor environmental requirements. The project will support the incremental costs of: * selecting and maintaining a set of water and soil quality monitoring sites in the project area; * upgrading the equipment for monitoring of water and soil quality; and * additional operating expenses for monitoring activities.

Two paired watersheds, - the Balceana and Old Negrea, - have been selected for watershed monitoring. The Balceana tributary will serve as the control sub-basin, which is associated with the control segment of the Lapusna catchment (Sofia commune). The Old Negrea tributary will be used as a treated sub-basin. This sub-basin encompassing the new Negrea is designated as the one to be treated by concentrated Best Management Practices (BMP). This is detailed in Annex 6.

An intensive soil and water-quality testing programme will be established in the eight communes to monitor the changes in surface and groundwater. Included in this is a second upstream-downstream design in the Lapusna River, described in Annex 7.

Stream water quantity and quality. To quantify this, the water flow will be measured at four measuring stations (2 to 5). These data will enable the computation of pollutant mass loadings and give a relationship between the implemented best management practices and the hydrologic response of each sub-watershed. At the first monitoring station (1), inflow will be measured periodically, especially at the time of sample collection. Monitoring of surface water quality will focus on the determination of nitrogen and phosphorus constituents. In addition, parameters such as BOD5, TSS, faecal coliform bacteria and the total number of microbes will be monitored. Both chemical and bacteriological variables will be used to document the water quality status as it relates to nutrient flows under different practices.

17 Groundwater monitoring. Groundwater monitoring will be undertaken using measuring devices (piezometer) at various sites. A total of 18 piezometers will be installed on three transects, located near the measuring stations 1 to 3, to determine the trends in the subsurface water quality as it moves from the communal, residential and agricultural land towards the Lapsuna River. This is detailed in Working Paper 3. Samples collected from these piezometers will be used to determine the trend of pollutant transport via subsurface flow on the quality of base-flow entering the Lapusna River. In addition, the piezometer data will determine the beneficial impacts of improved riparian zones and the exclusion of animals from river zones, on reducing the river pollutant levels.

Drinking water. Twelve piezometers will be used to assess the impacts of nutrient and bacteriological pollution sources on the existing wells situated within residential areas. The goal of this monitoring scheme is to identify the pathways and sources of pollution to the shallow drinking water wells. At each well, two piezometers will be installed in the direction of the groundwater flow near existing shallow wells (one near the pollution source and another near the well). A well, selected in the lower part of village, will also serve as an additional sampling point (Working Paper 8). This monitoring scheme will provide localised examination of well contamination. In all, 6 existing wells will be monitored to assess the seriousness and sources of contamination to drinking water for households and villages.

Pollutionfrom platforms. Four piezometers (two upstream and two downstream) will be installed around each of the eight manure storage platforms to monitor the quality of surface and groundwater and to test if any nutrient seepage occurs.

Soil monitoring. Soil monitoring will be undertaken on seven practices as follows: nutrient management; conservation tillage; crop rotation; strip cropping; soil conservation management practices; buffer strips in vineyards; and grassed waterways. Environmentally agricultural practices will be monitored on: soil conservation tillage; conventional tillage with autumn mouldboard ploughing; vineyard conservation and conventional tillage; crop-rotation-legume modified rotation; and strip cropping on slopes.

Soil nutrient loss and soil erosion monitoring will be undertaken in five fields in Negrea commune and the quality of soil sediments, humus total and mobile N and P will be determined in the sediments. The quality of manure will be determined from samples taken from three platforms. Finally plant growth quality and quantity will be analysed from the demonstration plots. As mentioned above the monitoring will be in accordance with the Eco-soil Monitoring Guide, [Soil Institute (Chisinau 1994)].

Tree planting and management monitoring. Monitoring will consist of recording the area that has been planted with trees and shrubs and their survival rate and the area of forest that has been improved through under/inter planting, encouraging regeneration and better management. It will be difficult to measure directly the improved-micro-climate effect and the decreased river bank erosion effect, but this may come from anecdotal information. Regarding the silvo-pastoral interventions, the improved carrying capacity of pastureland can be measured against unimproved pastures. The benefits of the proposed 5 ha park may only become fully apparent after ten to fifteen years. Not included in the project at present are school nurseries or the provision of seeds, cutting and seedlings for private planting: the project should include these aspects in the plans. No provision has been made for the monitoring of the C sequestration aspects as a result of the project. If sequestration is to be considered, then a baseline survey of the areas to be planted with trees and shrubs should be undertaken. This consists of estimating the carbon in above and below grown biomass and the quantity of organic carbon in soil. After the project has been initiated, estimates are made of organic carbon in soils and biomass and specific time intervals. If the products from the wood are going to be used in place of fossil fuels or as substitutes for steel and concrete in construction, joinery a nd furniture, then t hey w ill b e r eplacing n on-renewable energy a nd c an a lso b e counted as a carbon off-set. Similarly, the agricultural soils treated with manure should have an elevated level of organic carbon. This is why testing for organic C in soils should be included alongside N & P.

18 Wetland monitoring. Trees are going to be planted in and around the floodplain area. The monitoring of trees will be the same as indicated above. In addition a 'physical parameter analysis will be undertaken by the Institute of Forest Research and Forestry Planning and the 'Hydrometeo' service will undertake water quality analysis and sediment quality analysis. Not mentioned in this monitoring programme, but inferred, is nutrient uptake and increased biodiversity. This should be undertaken by sampling the quantity and quantity of flora and fauna at periodic intervals. It is possible that this wetland may become a resting ground for birds or even a breeding ground. This is a good opportunity to involve the local population in monitoring. S chool children and farmers near the wetland c an identify various animals especially birds: these should have seasonal variations. Children could also be involved in fauna surveys.

Climate data. Daily precipitation data will be collected using three rain gauges installed near the monitoring stations. Other detailed climate data will be obtained from the existing national meteorological network, especially the two stations at Leova and Cornesti near the pilot area. In addition, there are two meteorological posts providing precipitation and air temperature information at Nisporeni town, I ocated 30 km to the north and at Hincesti town, 18 km to the e ast of the pilot region. Solar radiation data are only measured at Chisinau. All these stations should provide enough background regional information on air temperature, precipitation, winds, and other relevant climatic data and more precise precipitation data will come from the above-mentioned of 3 gauges (Working Paper 8, Figure 2).

Monitoring duration. The monitoring component must be undertaken at least over the five-year project implementation period. This will guarantee some statistical reliability of collected data. It is crucial to start the m onitoring p rogramme b oth a t the c ontrol and t he t reated areas o ne year b efore the p lanned nutrient reduction measures are implemented in the proposed treated areas. This will provide background (baseline) data both on sub-watersheds and segments of the river basin. Pre-implementation sampling will help in the interpretation of the final data at the end of the project. However, five years is a short period and the readings after five years may not be very significant. Therefore, it may be necessary to continue monitoring beyond the lifetime of the project, especially as it may take a number of years before meaningful results are available.

Sampling Frequency: Frequency of the sampling pattern is crucial in ensuring the soundness of data with respect to the climatic patterns as well as changes in the land use practices. The water flow rate (flow volume) will be measured continuously at surface water quality monitoring stations. At the water quality sampling station, the water flow data will be assessed by means of measurement of the discharge volume at the outlet of the Lapusna water reservoir dam during collection of water samples (18 measurements per year + storm events).

Groundwater table will be measured at the time when groundwater samples will be collected (12 measurements per year + storm events). Rainfall data will be determined using five manual rain gauges (one at each stream flow monitoring station). Snow depth and other meteorological data will be purchased on annual basis from the state meteorological authority (Hydro-meteorology Service).

Soil erosion data will be collected after every rainstorm of more than 15 to 20 mm intensity. Sediment samples and runoff will be measured. For nutrient and humus contents, soil samples will be collected three times per year in early spring, summer and autumn from two field-sized watersheds namely a control field (conventional tillage) and a field with environmentally friendly agricultural practices.

To determine the quality of manure, 18 samples (with two analyses per sample) from 3 platforms will be undertaken each year for five years.

19 Plant density, yield and plant tissue will be measured at each harvest. This will be done on controlled fields and field with improved practices. It is also anticipated that because of increased crop and pasture yields, the average weight of the cattle, pigs and sheep etc. (or numbers) should increase towards the end of the project. This should lead to more manure production and hence, more areas on which it can be applied. T herefore, the project should also monitor animal numbers and animal weight. The annual household surveys should record some of this information.

The sampling of tree planting and management areas will take place annually to record the area planted, the survival rate, changes (improvements) in degraded areas and changes in biodiversity.

The wetland monitoring will be undertaken annually regarding plant establishment and growth. Water quality at the inlet and outlet of the wetland should be measured at least six times per year.

While it is not the specific task of the project, water quality monitoring should be encouraged by the local environmental inspectorate at the outlets of the factory discharge points especially if they flow into streams and rives. The APCP could provide technical assistance to the LTEA.

Thus throughout the monitoring programme, environmental evaluation indicators have been reflected in the EMP, which meet the objectives and goals of this project.

International Waterways. The World Bank's OP/BP 7.50 does not apply to this project, as the project will not involve the use of water or potential water pollution on international waters (Para 2 of the O.P. 7.50). On the contrary the project is designed to decrease existing levels of pollution in the Danube River and the Black Sea: The project will be funded under the GEF Strategic Partnership for the Danube and Black Sea Basin that aims at reducing the pollution level in these international water bodies. The Partnership has been developed on the basis of the Bucharest Convention for the Protection of the Black Sea against Pollution (1992) and the Danube River Protection Convention (1994) that have been signed and ratified by riparian countries. The interventions supported under the Partnership, including agricultural nutrient pollution control, follow directly from the Strategic Action Plans (SAP) prepared and endorsed by the Black Sea and Danube Commissions, which carry out these Conventions. The Commissions and 17 riparian countries which participated at the Black Sea/Danube Stocktaking meeting on June, 29-30, 2000 in Istanbul endorsed the Partnership and the three model projects: this project is an additional one. Supported by this endorsement by the Black Sea riparian countries, the May 2001 GEF Council approved the Partnership.

Social Issues Relevant to the Project. The agricultural land in the project area is divided into farms, fields and plots. Farm residences are usually within villages. These households usually stable animals - poultry, pigs, cattle, sheep/goats and horses. The area is characterised by individual 'dry latrines,' a concentration of farm animal waste, limited knowledge for its efficient storage, management and use and the dumping of this waste and other domestic refuse near wells and watercourses. This has an actual or potential impact on human health as general pollution of groundwater with nitrites, nitrates and bacteria has steadily increased. Infants (under 6 months) and children are the most vulnerable to acute nitrite intoxication and the general population to diarrhoea diseases.

At the national level, Governmental restructuring and reduction of subsidies are influencing socio- economic conditions to a large degree, including real wage declines and unemployment. At the level of the project demonstration site, key rural development issues are the unsustainable use of resources, unemployment, lack of knowledge and lack of access to credit to support environment-friendly agricultural practices. Poor economic conditions and their implications for social welfare result in a lack

20 of interest in environmental protection on the part of stakeholders. The project will result in economic opportunities for key stakeholders that are linked to the objectives of the project.

A baseline household survey at the commune and village level has been conducted and is available, together with a special survey of people in the proposed wetland area. The results of these surveys have been used to fine-tune the project. The household survey will be undertaken annually to monitor progress of the project.

Stakeholder Participation in Project Preparation. During project preparation, key stakeholders, individual farmers, farmer organisations, NGOs and local officials have been fully consulted in the development of detailed project components. A baseline survey was undertaken to identify the relevant needs and priorities of the stakeholders and the information obtained from the participating groups has been instrumental in the project's development.

Project Involvement with NGOs and other Civil Society Organisation. Project preparatory activities have been undertaken with full involvement and participation of government counterparts, various research institutions, NGOs and relevant civil society organisations. Extensive consultative meetings were held during project preparation and the inputs of these groups have helped in the outcome of project design. The ownership of land is mainly by individual farmers, but consolidation is beginning to occur. However, there is no resettlement issue in the project area.

Institutional Arrangements for the Project to Achieve its Social Development Goals. The Project Management Unit will ensure full participation of beneficiaries in the implementation of the project. The PMU will annually monitor and evaluate project progress and measure the impact of project activities against the socio-economic baseline survey undertaken during project preparation. The PMU will undertake a systematic analysis of the impact and achievements of project activities and the results of the M&E activities will be fed back into the implementation process as improved practices.

Monitoring the Project in terms of Social Development. Monitoring will be based on the baseline survey undertaken during preparation phase of the project. Extensive data from households in the communes and villages has been collected and the Project Preparation Unit has developed performance indicators. A well-designed monitoring and evaluation system that will include social indicators is being developed by the PMU, which will annually monitor and evaluate project performance through conducting beneficiary surveys. The results of M&E activities will be fed back into the implementation process as improved practices. A mid-term review will be carried out to assess overall progress. Lessons learnt, with recommendations for any improvements, would be used in restructuring the project, if necessary.

21 Safeguard Policies.

Do any of the following the World Bank's safeguard policies apply to the project?

Policy Applicability Environmental Assessment (OP 4.01, BP 4.01, GP 4.01) Yes Natural Habitats (OP 4.04, BP 4.04, GP 4.04) No Forestry (OP 4.36, GP 4.36) No Pest Management (OP 4.09) No Cultural Property (OPN 11.03) No Indigenous Peoples (OD 4.20) No Involuntary Resettlement (OP/BP 4.12) No Safety of Dams (OP 4.37, BP 4.37) No Projects in International Waters (OP 7.50, BP 7.50, GP 7.50) No Projects in Disputed Areas (OP 7.60, BP 7.60, GP 7.60)* No

Compliance with Applicable Safeguard Policies. The Project has several activities that will result in positive impacts on the environment. The only caution would be to ensure that eight (8) large manure storage facilities at the village level are designed properly and constructed according to environmental guidelines of the SEI. The Project has put a safeguard that design of these large manure storage facilities must be prepared under the supervision of County Council engineering staff and SEI will ensure that the constructions of manure storage facilities have met environmental guidelines on stopping manure leakage to surface or groundwater sources. These facilities will not be built close to any surface water body. Also, manure storage facilities will be well covered and fenced off for to ensure safety. Another safeguard is that the project will implement an extensive soil and water monitoring programme to ensure that seepage of manure to ground water does not occur.

22 References.

MECTD 2001. Quality and Discipline in Constructions - Impact on Environment, Ministry of Ecology, Construction and Territorial Development, Chisinau, 2001.

MECTD 2000. Monitoring in Constructions. MECTD, Chisinau, 2000.

Constantinov Constantin 1987, Fighting Soil Erosion within intensive agricultural system, Chisinau, Stiinta Publishing House, Moldova.

World Bank 2003. Project Implementation Plan (PIP) for the Agricultural Pollution Control Project (with 11 Annexes), APCP Office Chisinau 2003. PIP Working Papers, APCP Office Chisinau 2003. WP1 - Basic data on pilot watershed area ( Dumitru Galupa, Valeriu Mosanu, Ruslan Melian). WP2 - Community needs assessment (Dr. Nicolae Sali). WP3 - Baseline household survey (Tudor Danii). WP4 - Testing/Demonstration programme for environment-friendly agricultural practices. (Dr. Acad. S. Andries, Dr. A. Prisacari, F. Zubatii, Dr. Robert L. Hill). WP5 - Manure Management System (Ion Raileanu, Ion Marcov, Dr. R. L. Hill, Dr. Eng. Stefan Nicolau). WP6 - Shrub and Tree Planting Programme (Dumitru Galupa). WP7 - Wetlands Management Programme (Nicolae Talpa, Ph.D. Adel Shirmohammadi). WP8 - Water and soil quality monitoring programme (Ruslan Melian, PhD. Dr. Adel Shirmohammadi). WP9 - Strengthening policy and regulatory capacity (Roman Gutu). WP 10 - Public Awareness Programme (Alecu Renita, Arcadie Capcelea). WP1 1 - Legislative and certification arrangements for promoting organic farming in Moldova (TACIS). WP12 - Project Cost Tables. WP 13 - Project Procurement Plan.

Talpa N icolae (2003). S ociological S urvey i n t he W etland P ilot A rea (Commune T ochile-Raduncani). ACPC Chisinau, Moldova.

MECTD (Dept. Environment Inspection) 1998. Pesticides: According to Bulletin No.9 MECTD, Chisinau, Moldova. The Water Standards of the State Environment Inspection, the GOST 17.1.3.04-82. Pesticides are classify into 4 classes depending on the damages it can pose on haematherms (warm blooded animals): 1. Low hazardous. 2. Reasonably hazardous. 3. Hazardous. 4. Extremely hazardous.

MECTD (Dept. Environment Inspection) 1998. Water Quality Criteria. MECTD, Chisinau, Moldova. The national standard sampling procedures will be used as prescribed in the GOST 17.1.5.05-85. "Environmental Protection. Hydrosphere. General requirements for surface and sea water, ice and atmospheric precipitation samples collection."

23 Appendix la. Information Concerning Environmental International Cooperation.

1. International co-operation at global and re2ional level based on International Environmental Conventions ratified by the Republic of Moldova.

The Republic of Moldova adhered and ratified following environmental conventions:

1. Convention on Conservation of European Wildlife and Natural Habitats (Bern, 1997), ratified by Parliament Decision No. 1546-XII from June 23, 1993; 2. Convention on Environmental Impact Assessment in Transboundary Context (Espoo, 1991), ratified by Parliament Decision No. 1546-XII from June 23, 1993; 3. Convention on the Transboundary Effects of Industrial Accidents (Helsinki, 1992), ratified by Parliament Decision No. 1546-XII from June23, 1993; 4. Convention on Protection and Use of Transboundary Water Courses and International Lakes (Helsinki, 1992), ratified by Parliament Decision No. 1546-XII from June 23, 1993; 5. Convention on Biological Diversity (Rio de Janeiro, 1992), ratified by Parliament Decision No. 457-XIII 1995; 6. United Nations Framework Convention on Climate Change (Rio de Janeirol992), ratified by Parliament Decision No. 404-XII from June 12, 1995; 7. Convention on Long Range Transboundary Air Pollution (Geneva, 1979), ratified by Parliament Decision No. 399-XIII from July 9, 1995; 8. Convention on Protection of the Ozone Layer (Vienna, 1995), Montreal Protocol concerning substances which destroy the ozone layer (Montreal, 1979), ratified by Parliament Decision No. 966-XII from July 27,1996; 9. Convention on the Control of Transboundary Movement of Hazardous Waste and Their Disposal (Basel, 1989), ratified by Parliament Decision No. 1599-XIII from March 10,1998; 10. United Nations Convention to Combat Desertification in countries affected by dryness, ratified by Parliament Decision No. 257-XIV from December 24, 1998; 11. Convention on Co-operation for the Protection and Sustainable Use of the Danube River (Sofia, 1994), ratified by Parliament Decision No. 323-XIV from March 17, 1999; 12. Convention on Access to Information, Public Participation in Decision-making and Access to Justice in Environmental Matters (Arhus, 1998), ratified by Parliament Decision No. 346-XIV from April 7, 1999; 13. Convention on Wetlands of International Importance especially as a habitat of aquatic birds (Ramsar, 1971), ratified by Parliament Decision Nr. 504-XIV from July 14, 1999; 14. Convention on the Conservation of Migratory Species of Wild Animals (CMS), Bonn, 1979; 15. Agreement on the Conservation of the Bats in Europe (EUROBATS); African-Eurasian Water Birds Agreement (AEWA), ratified by Parliament Decision No 1244-XIV from September 28, 2000; 16. Convention on International Trade in Endangered Species of wild Fauna and Flora (CITES), Washington, March 3, 1973, ratified by Parliament Decision No. 1246-XIV from September 28, 2000.

1.1. The Convention on Biological Diversity (Rio de Janeiro, June 5, 1992). ratified by Parliament Decision Nr. 457-XIII on March 16,1995.

Within this convention was developed the first National Report, Strategy and Action Plan on biological diversity conservation, which has to be approved by the Government of the Republic of Moldova. Ranges of new appropriate laws for the period of transition to market economy were approved. These laws practically regulate most aspects of utilization, protection and regeneration of biological and human resources: * protection of natural habitats; * conservation of natural patrimony of single natural objects, important zones for species reproduction, spontaneous flora and fauna; * regulation of use of biological resources; * integration of biological conservation requirements in national economy activities; Several approved laws are dedicated directly to biodiversity aspects such as, Conception of synergetic administration development, other have "horizontal" character and are related to different environment aspects. Moldova still does not have special legislative acts that could regulate all biodiversity aspects in all their complexity. The following are laws on environment and biodiversity: * Regarding the fund of natural areas protected by state (1998); * Regarding Animal Kingdom (1998);

24 * Forest code (1997); * Regarding synergetic administration development (1997); * Regarding green spaces of rural and urban localities; * Regarding environmental protection (1993); * Regarding ecological examination and environmental impact assessment (1997); * Regarding natural resources (1997); * Regarding the tax for environmental pollution (1998); * Regarding monuments protection (1993); * Regarding principles of town planing and territorial development (1996); * Regarding protection of river and basin water zones (1995).

Non-Governmental Organisations (NGO) have an important role in process of implementation of Biological Diversity Convention. The public information campaign is conducted by following methods: a range of TV programmes, ecological school lessons, introduction of environmental disciplines in all Moldovan high education institutions, publications: newspapers, bulletins etc., which reflect environment issues. Expeditions to natural reservation of Nistru and Prut rivers are organised. According to requirements of the Convention in the Republic of Moldova was created a system of natural areas protected by state, elaborated regulations concerning organisation structure and fields of activity, was adopted the classification of natural areas protected by state in correspondence with Criteria of International Union on Nature Conservation (IUNC). These serve as a base for the "Law of natural areas fund protected by state". In the last 20 years the surfaces of natural areas protected by state increased by 12 times. At present, these areas protected by state are 66,467 ha, or 2 % of the country's territory.

1.2. Convention on Control of Transboundary Movement of Hazardous Waste and Their Disposal (Basel, March 22, 1989) ratified by Parliament Decision Nr. 1599-XIII on March 10, 1998.

There were concluded materials and documents concerning the activity of respective institutions for Convention's implementation, were accomplished co-ordination and prepared drafts documents for adhesion to: * Protocol on damage compensation after possible accidents during the waste transportation and their elimination. The legislative base, which regulates the order of waste administration, was improved by modifying some clauses of following laws: * Regarding production and domestic waste; * Regarding system of toxic substances and products; * Regarding secondary material resources.

For a strategic prospective, there was started the work on elaboration of "Regulation on transboundary transportation of dangerous waste", which was supposed to be concluded by the end of year 2000. In context of international collaboration in the frame of Basel convention there are several documents for ratification: * Protocol on persistent organic pollutants on LRTAP (signed in June 1998 at Arhus); * Rotterdam convention on agreement of mandatory proceeding in international trade with certain chemical substances and pesticides.

1.3. Convention on Conservation of European Wildlife and Natural Habitats (Bern, September 19, 1997), ratified by Parliament Decision Nr. 1546-XII on June 23, 1993.

Report concerning invertebrate conservation in the Republic of Moldova was prepared. Republic of Moldova takes active part in elaboration and e stablishments of S marald Network, contributes to the elaboration and establishment of Pan-European Ecological Network. There is a plan to create the National Ecological network. At present moment the general report for 2 years of activity regarding convention implementation is under preparation.

Seminars were organised on trans-boundary co-operation regarding the role and objectives of local public authorities in natural conservation problems. The agreement was elaborated regarding establishment and mutual management of transboundary natural protected area in Danube River and the Lower Prut River between the Republic of Moldova, Romania and Ukraine.

25 1.4. The Convention on Long-range Transboundary Air Pollution (Geneva, 1979), ratified by Parliament Decision Nr. 399-XIII on July 9, 1995.

Since the moment of proclamation of its independence, in the Republic of Moldova, many laws were elaborated and applied in many normative acts concerning pollution of atmospheric air: * Law on environment protection (1993); * Law on ecological expertise and impact evaluation on environment (1996); * Law on atmospheric air protection (1997); * Law on tax for environment pollution (1998).

These normative acts established the regulatory frameworks of atmosphere conservation, air on soil level, stratospheric ozone and averting of clime changing. There were created instruments of these laws: * Instruction on organisation and the effectiveness of the state ecological expertise; * Regulation on evaluation of the impact on environment of enterprises under privatisation.

To implement the legislative and rate setting, stipulating of above-mentioned convention, in the Republic of Moldova take place general activities for air protection: * appreciation, registration and standardisation of harmful substances in atmospheric air; * determination of noxa concentration in air; * control of fulfilling the EMA normative, standard requirements, legislative and normative acts on air protection; * monitoring of air pollution; * expertise of air protection method in project documentation.

Taking into consideration the special impact of transport on air pollution, in the Republic of Moldova have been recommended several concrete measures for diminishing emission of harmful substances, especially of lead, which is contained in exhaust gases.

Principal priorities for perfection of air protection activity. In order to perfect air protection activities, the Perfected Concept of air protection will be elaborate and opened up to examination and adoption to colleagues of the MECTD, which will include: * improving legislative and systematic normative base, regulation of all activity directions (evidence, monitoring, standardisation, passport control etc.); * establishment of priority directions in national and international activity to fore atmospheric pollution; * establishment national documentation priorities, that needs a urgent ratification and determination of a principal directions of implementation; * determination of the role and place of new normative acts in ecological normative system, technical standards and critical loads on ecosystems.

Some of priority directions of pollution averting and edification of atmospheric air: * saving the energy and resources; * forbidding the using of all types of ethyl gasoline; * modernisation of energetic sources and other combustion installations, which will be changed to function with a pure ecological gasoline; * forbidding of mobile neutralisation resources and other installations to diminish the exhaust gases; * implementation of non-traditional sources for energy production; * implementation of gasoline standards with more drastic chemical index, with a lower content of lead and sulphur and obligatory including in settlement standards regarding emission of aromatic substances and benzol.

In 1998 in Aarhus, Republic of Moldova signed two protocols: * protocol regarding persistent organic pollution; * protocol regarding heavy metals.

In 1998, the Republic of Moldova was involved in negotiation for protocol elaboration on control of acidification, eutrophication and ozone at the soil level. In this protocol were included dates concerning national emissions of ammonia, sulphur, oxide of nitrogen and persistent organic components for 1990 year, limiting the substance emission for 2010 year in quality of principal obligations. Goal of this protocol is to minimise the above mentioned

26 emissions to atmospheric air, control of acidulation, eutrophication of environmental components and ozone elaboration at the soil level, protection of people health, conservation of flora and fauna.

1.5. Convention on Protection of the Ozone Layer (Vienna, 23 March 1995), Montreal Protocol concerning substances which are destroying the ozone layer (Montreal, 16 September 1979). ratified by Parliament Decision Nr. 966-XII on 27 July 1996;

It was established the National Committee for Ozone Problem through Decree of President of the Republic of Moldova "On setting-up of a National Committee for Ozone problem" (Nr.208 from 26.07.96). Through Government Decision of the Republic of Moldova "Concerning application on territory of the Republic of Moldova p rovisions o f V ienna C onvention a nd M ontreal P rotocol r egarding p rotection o f o zone 1 ayer" (Nr. 300 from 18.03.1998), were determined the principal directions of activity in our country for implementation of international documents precautions: * Organisation of evidence of production, consume import-export of regular substances that destroy the ozone layer, products which contains settlement substances through elaboration of annual statistic forms and effectuation of statistic State evidence. Evidence of import-export of these products and substances by the Customs Control Department; * Organisation and effectuation of licensed production, consume import-export of settlement production and substances, respecting the utilisation code established through Montreal Protocol; * Elaboration and presentation to Government for approbation, of the National Programme for Settlement of utilisation in economy and substitution of substances that destroy the ozone layer; * Forbidding of import-export for substances that are destroying the ozone layer and products, which contain regulate substances from countries that are not Part of Vienna Convention and Montreal Protocol.

By Government Decision "Regarding several regulating activities in Republic of Moldova", (Nr. 859 from August 13, 1998), there has been established concrete precaution for licensing several kinds of activities including production import-export and consume of SDO and PDO. According to Montreal Protocol and Vienna Convention, first of all article 5 (1), the Republic of Moldova is considered as a developing country and has to reduce the use of materials, which destroy the ozone layer. For implementation of these directives and control measures, stipulated in the Montreal Protocol and Vienna Convention (art. 5.1), the following laws were elaborated and approved: * Law regarding licenses granting for some kind of activities (Nr. 332 from March 26, 1999); * National Programme for suppression of phased substances that destroy the ozone layer in the Republic of Moldova was approved by Government Decision of the Republic of Moldova (Nr. 1064 from November 11, 1999). This programme was elaborated in correspondence with requirements of Executive Committee of Multilateral Fund of Montreal Protocol. In base of actual institution evaluation, was elaborated strategy and action plan regarding suppression of phase and removal of use of materials that destroys the ozone layer.

In third chapter of the above mentioned programme "Starting of the process of suppression of phased substances that destroy the ozone layer", are stipulated principal Strategy in field of ozone layer protection and Action Plan in the Republic of Moldova. According to above-mentioned plan, several methods of activity are planed until 2005. This plan includes legislative-normative mater, institutional mater, researches and monitoring, public training and information. Activity concerning recovering and recycling of refrigeration agents, is regulated with precaution of fourth chapter "Implementation of recovering and recycling programme of refrigeration agents". According with Article 1 of fourth chapter, it is stipulate the suppression of phasing SDO for the year of 2000.

The "Ozone" office of the Ministry of Ecology, Construction and Territorial Development, was created in accordance with the action plan mentioned above. It is responsible for undertaking a range of activities towards the implementation of the Montreal Protocol and Vienna Convention.

27 1.5.1. Project started in the Republic of Moldova to implement the Montreal Protocol.

The following projects were launched as a support for the implementation of Montreal Protocol.

1.5.1.1. Institutional structure for implementation of Montreal Protocol in the Republic of Moldova. Project objectives: * Increasing of capacity actions with a view to ensure a adequate climate in our country, for urgent suppression of SDO (substances that destroy the ozone layer); * intensification of co-ordination and monitoring activity of SDO suppression; * perfection of informational system regarding collecting, analyse and transmission of information about undertaken measures for ozone layer protection; * Intensification of Protocol Parts collaboration; * Perfection of national reporting system on SDO consume; * Implementation of management plan in the refrigeration sector.

1.5.1.2. Training of instructors for refrigeration sector Project objectives: * Training of technicians and instructors to minimise CFC utilisation according the Refrigeration Sector. Management Plan. International consultant delegated by UNEP will organise training seminars for technicians, which settle, exploit and repair refrigeration equipment. These trained people will train other technicians later.

1.5.1.3. Training in Control and monitoring of CFC Project objectives: * Monitoring perfection and import-export control of CFC and equipment that contains CFC. For this, will be organised training seminars for customhouse officers (with participation on International expert) and one regional seminar for representatives of "Ozone" office and Custom Control Department.

1.5.1.4. Implementation of recycling and recuperation programme for refrigeration agents. Project objectives: * Implementation of recycling and recuperation programme of refrigeration agents. Training of technicians regarding installation, harming, recycle recuperation methods of refrigeration agents.

1.6. The Convention on Access to Information, Public Participation in Decision-making and Access to Justice in Environmental Matters (Aarhus, 1998). ratified by Parliament Decision Nr. 346-XIV on April 7, 1999.

The Republic of Moldova is the first country to ratify this convention. The first steps for implementation of Aarhus convention have been done already: * Organise and hold seminars under the auspices of REC-Moldova concerning the Aarhus convention implementation covering access to information, public participation in decision-making and access to justice in environmental matters. Seminars regarding the Aarhus convention implementation took place in the north (Balti), centre (Chisinau) and southern part (Cahul) of Moldova with representatives of ministers and counties. REC-Moldova organised these seminars overseen by MECTD. MECTD in common with Pronatura Foundation and the National Institute of Ecology organised two conferences on theme 'public participation on problems of environmental protection' for local authorities in two commune: Carpineni and Lapusna. * The Ministry of Ecology, Construction and Territorial Development maintains permanent relations with the people through press conferences, round tables etc. Within the MECTD is the division: Public Relation, Mass Media and Ecological Education, which is responsible for Aarhus convention implementation. It includes such responsibilities as, public information, ecological education, and co-operation with NGOs. In collaboration with NGOs this division is responsible for law elaboration regarding population's ecological education.

It i s i mportant to mention N GOs c ontribution i n this field o f a ctivity. T here are about 7 0 a ctive e nvironmental NGOs, 40 of them are working in ecological education field. Their activities include TV programmes, films about the environment, ecological tourism oriented to sustainable development, training for local public authorities, expeditions having scientific goals etc.

28 1.7. The Convention on Environmental Impact Assessment in Transboundary Context (Espoo, 1991), ratified by Parliament Decision Nr. 1546-XII on June 23, 1993.

* The Republic of Moldova participated at working group activity for reporting arrangements of countries part to the Convention, for the second meeting of Environmental Ministry in Sofia on February 2001.

1.8. The United Nations Convention to Combat Desertification in countries affected by dryness, ratified by Parliament Decision Nr. 257-XIV on December 24, 1998.

* In 1997 was organised seminar for getting knowing with United Nation Convention to combat desertification in the Republic of Moldova; * text of this convention was published in Romanian (official language), was elaborated and published a booklet regarding United Nations Convention to combating desertification; * in year of 2000, Government of the Republic of Moldova adopted the National Action Plan (decision Nr. 367, April 13, 2000); * in M ay 2 000, M inistry o f E nvironment and T erritorial D evelopment approved the N ational report r egarding convention decision in Republic of Moldova, which have been presented to the Secretary of UN convention to combat desertification; * was organised seminar "Social-economic development of regions that are under desertification process"; * was published the popular-scientific monograph named: "Droughts and territory degradation in Moldova"; * maps publishing on territories with desertification problem; * publishing of illustrated booklets regard combating of degradation problems on local level; * organising a database concerning on droughts, territory degradation and water resources; * preparing the draft for the regional project "Sector monitoring (Hungary, Romania and Moldova)"; * organising meetings, seminars with farmers, collective farmers representatives from droughts regions of Republic of Moldova (Comrat, Ciadir-Lunga, Stefan-Voda, Cahul, Leova); * founding of video-films "Droughts and territory development in the Republic of Moldova."

2. International co-operation at global and reeional level based on International Environmental Conventions awaiting ratification by the Republic of Moldova.

At present time documents are under preparing for adhering to following conventions:

* CITES -convention on trade with rare species of flora and fauna (Washington 1973); * Convention on Conservation of Migratory Species of Wild Animals (Bonn 1979) and two protocols within the convention: * African-Eurasian Water Birds Agreement - AEWA, (Hague 1995); * Agreement on Conservation of European Bats Population - EUROBATS (London, 1991).

3. International co-operation with Global Environmental Organisms.

The Republic of Moldova gets technical and financial assistance for environmental projects, and international conventions from the following international organisations: United Nations Environmental Programme for (UNEP), United Nations Development Programme (UNDP), World Bank (WB).

4. European International Co-operation.

4.1. European Union Undertaken actions based on Co-operation and Partnership agreement between the Republic of Moldova & the EU.

4.2. Organisation for Environmental Co-operation and Development (OECD). Working group on national plan of activity in environment field.

Ministry of Ecology, Construction and Territorial Development took and take active part in following programmes: * Environmental Policy, / Implementation of the National Action Plan and of the National Action Plan on Environment in Central and Eastern Europe;

29 * Environmental Management in enterprises in the New Independent States; * Management and Support Activity, work group Task Force;

4.3. Organisation for Security and European Co-operation (OSEC).

4.4. European Bank for Reconstruction and Development (EBRD).

5. Bilateral Co-operation.

5.1. Collaboration within the bilateral co-operation agreements.

* Agreement of collaboration between Ministry of Ecology, Construction and Territorial Development of the Republic of Moldova and Romanian Ministry of Water, Forest and Environment in the field of environment and lasting use of natural resources; * Ministry of Ecology, Construction and Territorial Development of the Republic of Moldova and Ministry of Environmental Protection and Atomic Security of Ukraine; * Agreement between the MECTD of Moldova and the Ministry of Natural Resources and Environmental Protection of Republic Belarus regarding environmental collaboration.

5.2. Other relations of bilateral co-operation. a). Finland gave assistance to the Republic of Moldova for several years in wood management. Also, it was elaborated a Strategy of Sustainability Forest Development in the Republic of Moldova. b). The Netherlands supplied to the Republic of Moldova information and resources for agricultural programme elaboration. A s pecialist i n sustainability d evelopment c ame from Avalon Foundation to o ffer c onsultation a t 3 seminars on the same theme, organised by State Ecological Inspectorate in common with Ministry of Agriculture. This process will continue with collaboration for elaboration of agricultural sustainable programme in the future. c). Denmark offered to assist the Republic of Moldova in the implementation of Aarhus Convention, through the setting up of a information centre and a "green" library.

30 Appendix lb. Summary Review of Legislative and Institutional Framework. 1. Existing Legislation. Land Code, No 828, 25.12.91. * Two main legislative acts that regulate land relations are: the Constitution of the Republic of Moldova and the Land Code. The Land Code defines the land fund and its components, the modality of conferring and alienation of land plots, the rights and obligations of landowners. It provides for two types of property: private and public. The competence of the parliament, government and local public administration authorities in the domain of land relations are agreed upon in the Land Code. Water Code, No 1532-XII, MO 10/287,30.10.93. * This code constitutes the legal framework for preparation of legislative acts that regulates the water fund utilisation. The code contains provisions on water usage, the modality and conditions of water resources distribution, the rights and obligations of water users, reasons and procedures of cease of the rights to use water. Law on Environmental Protection, No 1515-XII, MO 10/583,30.10.93. * The law stipulates management basis for environment protection and reflects the state policy in this field, refers to the creation of ecological funds meant to finance environmental protection programme and outlines the principles of their activity. The law envisages concrete and direct actions in the field of establishing radiological and food quality monitoring and biodiversity conservation. Underground Resources Code, No 1511-XII, MO 11/325, 30.11.93. * The code regulates underground resources protection and utilisation. According to the code, underground resources constitute public property. The code stipulate that underground areas can only be leased or given in concession for different uses, as for geological, geo-mechanical or ecological researching, construction or exploiting of objectives linked to mineral extraction, noxious substance storage and waste products. Law on Protection of Riparian Zones, No 440-XIII, 27.04.95. * This law establishes the creation of protected riparian zones, their utilisation and penalties implied for infringement of protection regime. Law on Fauna Protection (Animal Kingdom), No 439-XIII, MO 62-63/668, 09.11.95. * The law regulates the relationship in the field of protection and use of wild animals, which habit in natural mode in terrestrial areas, in water ecosystems, in atmosphere. The annexes of the law specify the species, included in the Red Book of Republic of Moldova and protective actions against hunting, fishing etc. of this species. Law on Secondary Material Resources, No787-XIII, MO 31/320, 23.05.96. * The goal of the law is to ensure the rational utilisation of national resources and the objective is to regulate the relation that had been established in the process of collection, procurement, processing, storage, transportation, utilisation of production and consume wastes, as well as implementation of scientific technologies. Law on Ecological Expertise & Evaluation of Environment Impact, No 851-XIII, MO 52-53/494, 08.08.96. * The law sets down the aim and principle of ecological expertise and of impact evaluation on environment, as well as main rules of their realisation. Ecological expertise, according to the law, is obligatory for all economic activities, in spite of their destination, form of property, investment size and source of financing. Forestry Code, No 887-XIII, MO 4-5/36, 16.01.97. * The code regulates the institutional relations in the field of forestry resources, defines the forestry fund, which involves all forests, indifferent of their type of property and managing fund. The private property on forestry is permitted in case of forestry plantation in private areas. The main objectives of administration and management of forestry fund are sustainable development of woods and the maintaining of their biodiversity and regeneration and extension of forests. The norms of forestry use are stipulated in the present code. Law on Natural Resources, No 1102-XIII, MO 40/337, 19.06.97. * The objective of this law is to regulate the relations in the field of utilisation, protection and reproduction of natural resources in order to ensure ecological security and sustainable development of the country. The law envisages classification and administration of natural resources, establishes the investment policy in the area of natural resources and their state control. Law on Regime for Harmful Products and Substances, No 1326-XII, MO 67-68/557, 16.10.97. * This law establishes the legal framework in the field of fabrication, storage, utilisation and transportation of harmful products and substances, of their import and export in order to eliminate, reduce or prevent the impact of above mentioned products and substances on human health and environment.

31 Law on Wastes, No 1347-XIII, MO 16-17/101, 05.03.98. * This law regulates administration of production and consumer wastes in order of diminishing of their size, their reworking and prevention of environment pollution. The law envisages rights and duties of relevant bodies, requirements on environment security. Law on Radiation Protection and Nuclear Safety, No 1440-XIII, MO 24-25/154, 19.03.98. * The law names public administration bodies that are responsible for radioprotection and nuclear security, their responsibilities and obligations. The law stipulates the rights and duties of citizens in these matters. Law on Air Protection, No 1422-XIII, MO 44-46/312, 21.05.98. * The law stipulates the prevention principles of air pollution through the establishment of pollution and air quality normative and it also names the relevant bodies and their responsibilities. Law on Taxes on Environmental Pollution, No 1540-XIII, MO 54-55/378,18.06.98. * The objective of the law refers to relations regarding the emission of polluting substances and storage of production wastes. The law contains provisions on the modality of establishing, calculation and perception of the payment for air pollution. Law on Protected Areas, No 1538-XIII, MO 66-68/442, 16.07.98. * This law establishes the legal status of state-protected areas, principles, modality and conservation of these areas, attribution of central and local public authorities, non-governmental organisations and private persons. Law on Drinking Water, No 272-XIV, MO 39-41/167,22.04.99. * The law stipulates the necessity of elaboration of quality requirements for water state quality standard, regulates the activities on water supplying. Law on Green Areas of Urban and Rural Settlements, No 591-XIV, MO 133-134/649, 02.12.99. * This I aw r egulates r elations i n the d omain o f d evelopment a nd p rotection o f g reen a reas o f urban a nd rural settlements in order to ensure everybody's right to a healthy and pleasant environment. Law on Public Access to Information, No 982-XIV, MO 88-90/664, 28.07 2000. * The law regulates relations in the field of public access to information, namely: principles, conditions, and public access modalities to official information. The law stipulates the rights of information applicants and the obligations of information providers in the process of insurance of public access to official information. The law provides the modality of defending the right to access to information. Parliament Decision approving the National Strategy and the Action Plan on Biodiversity Conservation, Noll2-XV, MO 90-91/700, 2. 08. 2001. * The concept fixes the main directions to be followed in order to improve & conserve the country's biodiversity. Law on Biological Security has been submitted to the Parliament for approval. * The law regulates all activities pertaining to receiving, testing, using and trading genetically altered species. It aims to protect the population's health and life, the country's biological diversity, ecological balance and environment. This control shall be effectuated by a special National Commission, which will issue licenses to run corresponding activities. Any actions with genetically altered species shall only be possible upon receiving permission from the commission which must first ensure that this is not detrimental to health and environment. 2. Draft legislation. Law on Ecological Insurance. Law on Ecological Education. Law on Soil Conservation. Law on Underground Water. Law on Protection of Localities from Harmful Geological Products. Law on Regime of Genetically Modified Organisms. Law on Accession to the Convention Regarding Conservation of Migratory Wild Animals, Bonn 1979. Law on Accession of the Republic of Moldova to the Convention Regarding International Trade with Wild kinds of Flora and Fauna that are on the endangered, (CITES)-Washington, 1973. Law on Amendments to the Law on State Ecological Expertise and the Impact of Waste on Environment. Law on Amendments to the Law on Animal Kingdom. Law on Amendments to the Law on Products Wastes. Law on Amendments to the Law on Drinking Water. Law on Ratification of the Convention on European Landscape. Law on Amendments to the Land Code. Law on Access to Ecological Information.

32 3. Institutional framework. * Ministry of Ecology, Construction and Territorial Development. * State Ecological Inspectorate, with 12 Zonal Ecological Agencies. * State Forest Service of the Republic of Moldova (Moldsilva). * State Concern " Apele Moldovei." * National Institute of Ecology. * Hydro-Meteorological Service.

4. Projects and TA. EU/TACIS. Joint Environmental Programme (Feb. 2000 to Feb. 2003). Activities: Support to the CIS and Mongolia in further implementation of their National Environmental Action Programmes (NEAPs) through leveraging TACIS grant funds to facilitate projects financing in the region at the ratio 1: 15; facilitating close collaboration, initially between TACIS, the World Bank and other IFIs in identification and preparation of investment projects for the World Bank and other financing; carrying out feasibility studies on sustainable projects; transferring know-how in project development and pre-feasibility studies. New Regional Environmental Centres - New REC (Phase 3, November 2000 to December 2002) Activities: fostering civil society participation and promotion international as well as inter-regional co-operation in environmental protection issues and sustainable development; consolidating the NRECs management and operational capacities. Selected actions from the environmental programme for the Danube river basin in Moldova and Ukraine. EU/EURO-Re2ions. EURO-region "Upper Prut." Euro-region 'Upper Prut', was started in 2000 on the territory of two Romanian judets (Suceava and Botasani), two Moldovan judets (Edinet and Balti), and the Chernovtsy district of Ukraine. Problems that still need to be solved here relate to ecological security, tourism promotion, protection of interests of national minorities and provision of their cultural needs, economy, creation of multi-cultural University in Chernovtsy. Institutional structure: Council of Euro-Region and joint sector Commissions. It was also launched the initiative of creation an Eco-region in which compound must enter the Iasi district (Romania), the Vinita region (Ukraine) and the Ungheni District (Moldova). EURO-region "Lower Danube." Euro-region 'Lower Danube', was created in 1998 on the initiative of authorities of three Romanian judets (Tulcea, Braila and Galati), one judet of Moldova (Cahul), and the Odessa district of Ukraine. The field of collaboration includes ecology, economy and employment, infrastructure, education, health-care, joint efforts against the natural disasters (floods, earthquakes, etc.). The co-operation of Cahul University (Moldova) and Galati University 'Lower Danube' (Romania) has also begun and the results are good. Contact: Min. of Economy, tel: 23 38 98. UNDP. Enabling Moldova to prepare its first national communication in response to its commitments to the United Nations Framework Convention on Climate Change. Activities: To built capacity and take climate change-related issues increasingly into account in Moldova, thus facilitating the country to deal with the climate change and its adverse impacts Contact: MECTD Danube Pollution Reduction Programme. Government of Japan. Elaboration of National Strategy of soft water resource management. Contact: "Apele Moldovei." World Bank. Biodiversity Strategy Development (grant from Global Environmental Facilities). Activities: Assist Moldova in implementing Articles 6 and 8 of the Convention on Biological Diversity. Support formulation and adoption of strategies and actions for the protection and sustainable use of bio-diversity, through a participatory process - public and private sectors and local NGOs. Contact: Mr. Alexandru Teleuta, tel: 26 51 12. Preparation of a Wetlands & Biodiversity Conservation Project (grant from Global Environmental Facilities).

33 Activities: Prepare the project proposal for Wetlands and Biodiversity Conservation Project that would address existing national environmental priorities of improved water quality and habits management on the Dnister River. Contact: Biotica NGO, Mr. Piotr Gorbunkov, tel: 24 32 74. EBRD. Chisinau water services rehabilitation. Activities: Substantially improve both the quality and reliability of Chisinau's water supplies, making major reduction in leakage, rehabilitate pumping stations, pipelines, storage, metering, sludge handling and treatment. Contact: Company "Apa - Canal", tel: 22 23 49. TCP with Kingdom of Netherlands. Production of energy resources (briquettes) from biomass (Mar 1999 - Mar 2002). Contact: Farmer's Association from Corjeuti Community, Judet Edinet. Biogas production from urban residual water (Jan 2000 - Jan 2001/Jan 2002). Contact: Company "Apa - Canal", tel: 22 23 49. Biomass treatment and generation of energy from agricultural wastes (March 2000 - March 2003). Contact: Mayoralty of Corjeuti Community, Judet Edinet. Pilot Project implementation of ecological pure technologies in wine production (under preparation). Contact: Oenology Union, VITIS Hincesti, Judet Lapusna. Energy conservation and minimisation of water consume in food industry (July 2000 - March 2002). Contact: J.V. Drojdii tel: 43 49 54. Generation of thermal-energy and electricity from organic wastes (July 2000 - Dec. 2002). Contact: S.A. Avicola, Vadul-lui-Voda. NGO activity. NGOs activity is mostly focused on education and information. The Regional Environmental Centre Moldova (REC Moldova) was established in 1998 in order to assist non-governmental community of the country to solve environmental problems by raising public awareness and commitment in the field of environmental protection. Actually there is a growing community of NGOs in the country. Currently around 140 of them act in the field of environmental protection; one of the most active NGOs is Environmental Movement of Moldova, founded in 1990 on the basis of former republican society for nature protection. Another active NGO that also accumulated more than 10 years of experience is "Biotica" ecological society. Unfortunately at present the NGOs' activity has no big resonance or influence on the population. Contact: NGO "Contact" Mrs. Aleona Niculita, tel: 23 39 46.

5 Status. 5.1. Features of the Republic of Moldova. The Republic of Moldova has an area of 33,800 km2 ; it stretches for 350 km North South and 150 km East West. It is one of the most densely populated countries in the region, with 128 inhabitants/km2 . The distribution of rural and urban population stabilised at 54% and 46% respectively in 1996. Moldova is a predominantly rural country, 76% of the area is agricultural land (with 20% of it irrigated) and. 10% are forests. It is delimited by the Prut River, which it shares with Romania. On the border with Ukraine, part of its territory is on the left bank of the Nistru River (Transnistria). Moldova forms part of the Black Sea watershed. The country is relatively low-lying and hilly, with semi-arid steppe plains in the south and a dry climate with erratic precipitation and very often droughts are present. 5.2. Legislative framework. Moldova has a comprehensive corpus of environmental laws and regulations, which is being supplemented by the addition of new laws. There are four major problems concerning the legal framework: * Weak enforcement. * Ineffective penalties. * Structure/Content of the law. * Conflict between laws. The first two problems are temporary; they are v ery much related to economic and political transition, which is under way. The last one is a product of structural weakness in the style of law making and co-ordination within and between ministries and departments. 5.3. Economic and regulatory instruments. The following economic instruments are in place to integrate environmental aspects in economic decisions:

34 * Taxes on the use of natural resources (soil, water, minerals, flora, fauna); * Charges for environmental pollution and related services (discharge of polluting substances above the allowable limits and dumping waste); * Fees to compensate for damage to the environment; * Excise duties on imported cars and fuels; * Subsidies; * Incentives to promote rational use of natural resources, apply cleaner technologies, reduce waste, water etc.

There are three sources currently used to finance environmental expenditure: The State Budget; Fees accumulated in environmental funds (National Environmental Fund and Local Environmental Funds); Enterprises resources (taxes on use of natural resources).

The Ministry of Ecology, Construction and Territorial Development is the principal responsible body. The Natural Resources and Licenses Division (DEP) within the MECTD issues licenses to generate, transport, trade and recycle hazardous wastes. The Ecological Expertise Division assesses new construction projects, and the reconstruction of water facilities. Bigger projects must be assessed for their impact on the environment. The DEP issues ecological permits to manufactures. It is in charge of the water survey (surface water, groundwater and water management).

A system of environmental standards for ambient water and air quality that should be prepared by DEP, Ministry of Health and the Academy of Sciences is currently missing. The Environmental Inspectorate continues to be the institution that enforces the regulations. At the present, the ISO 14000 series is unknown to business and ISO 9000 series is currently a priority in the manufacturing industry. Public access to environmental information and public input to environmental decision-making should be increased. Efforts should be made to redraft the law on access to environmental information so that it is compatible with the provisions of the European Union legislation on this issue. There is an acute need to produce a strategic environmental plan for Moldova - the National Environmental Action Plan (1993) is unable to fulfil the role of a strategic plan because it is too focused on identifying specific priority issues. It has insufficiently strategic in its analysis, issue coverage and in the range and type of recommendations. The National Strategic Action Programme for Environmental Protection (1995) is rather theoretical and academic in its analysis and approach. Practical implementation of its recommendations is difficult. There is established a working group in the framework of the MECTA with the goal to produce a new strategic environmental plan for Moldova. 5.4. Water management. Moldova is situated in a region with insufficient humidity. From the country water resources 72.3% belongs to Nistru River, 20.6% belongs to Prut River. Nistru and Prut Rivers are polluted with oil products, organic and nitrogen substances. In many regions the water pollution is 2-3 times higher than ecological norms. From the total quantity of ground water only 25% can be used for economic purposes without pre-treatment, because of the generally high mineralisation. A major problem in the effort to manage water resources is to ensure adequate drinking water and wastewater collection and treatment. Groundwater under 60% of the country's territory does not satisfy drinking-water requirements. In urban localities 70% of the population is connected to the centralised water supply, but in rural localities mainly the traditional sources are used (wells). The drinking water in village wells is estimated to be polluted. The proportion of wells with nitrate levels above the established standards in 1999 was nearly 65%. Domestic sewage and wastewater from economic activities are a major source of surface and groundwater pollution. About 70% of the urban population are connected to municipal wastewater treatment plants, but most of the villages discharge their wastewater without treatment. The absence of detoxifying pre-treatment for wastewater discharged from galvanic shops has resulted in an excess of heavy metals in municipal wastewater treatment plants, undermining biological treatment. A group of foreign experts arrived in Moldova on 22.June.2000 to examine the present-day state of the Prut and Nistru border rivers. NATO is financing the project. 5.5. Air management. There is no nation wide air quality monitoring. The Republic of Moldova is exposed to imported air pollutants, although the country is practically a net exporter. To control trans-boundary air pollution, three to four additional stations on the border with Ukraine and Romania would be necessary. The full analysis of samples of transboundary air pollution should be performed in the laboratories of Hydrometer, together with the National Institute of Ecology

35 (this will be possible only in case Hydrometer is equipped for the purpose). Reported air pollution mainly originates from the use of commercial energy and, particularly, transport activities. Since 1990 the estimated combined emissions of classic air pollutants, such as sulphur and nitrogen dioxide, carbon monoxide and particulate matter have decreased by a factor 2 in the Republic of Moldova. Total suspended particulates (TSPs), SO 2 are measured in four cities only. All city monitoring stations were located and equipped at the time and according to the criteria of the former USSR. No station is equipped with automatic measuring devices. In general, relatively high annual concentrations of particulate matter or TSPs prevail in all monitored cities; exceeding three to four times present WHO guidelines. At current levels of nitrogen oxides and other traffic-related pollutants the urban population runs the risk of health problems. 5.6. Waste management and clean technologies. Waste management is rapidly growing into a major preoccupation in Moldova. Although Moldova does not produce any nuclear energy, nuclear safety is an issue of concern. Moldova is surrounded by eight nuclear reactors; all of them located within 150 km. of its borders. The Programme on Strengthening Radioactive and Nuclear Safety of the International Atomic Energy Agency (IAEA) includes projects concerning Moldova's situation. The radioactive fallout from the Chernobyl accident also affected the country. There are no official data on the methods of storage, handling or dilution of wastes from agricultural enterprises, but according to the Department of Statistics the waste quantities from agro-industrial sector are increasing. The same happens with industrial and hazardous wastes. There is no organised disposal site for hazardous industrial and chemical waste. Currently, only 5% of the industrial waste generated annually is sent to proper disposal sites; three-quarters is dumped informally on communal tips, mixed with municipal waste, and surface water and ground water have been polluted to unknown level. Also, there are cases of toxic waste dumps under insufficiently controlled conditions. The situation is getting worse, as the majority of industrial enterprises are in crisis and efficient standards for treatment and disposal are lacking. Another obstacle to the processing of hazardous wastes in the lack of basic equipment to determine the chemical composition of some of them. Moldova does not have a programme that is in accordance with all ecological securities norms for depositing and neutralisation of dangerous wastes. Experience with t he i ntroduction o f c leaner p roduction ( comprising t echnology a nd management a spects) i s st ill lacking. To gain experience and make progress a co-operative effort will be needed by public administrations and their partners, private enterprises, as well as foreign investors. 5.7. Soil management. There are 745 classified soil varieties in Moldova. Most of the soils are being used as arable land-even those that are naturally not very suitable for agriculture. Soil erosion is a problem in Moldova. In addition to soil erosion, landslides along slopes also produce noticeable damage. Extrapolation of soil erosion losses corresponds to an estimated annual loss of US 45-55 million. Fertiliser use was high before the transition, but recently the fertiliser use is a very low level (only 11% of the recommended fertilisers are used). Soil and groundwater contaminations with pesticides are facilitated by poor storage facilities for pesticides and lack of enforcement of rules for their transport. Also significant is the 90% decline in the number of trees grown for soil and water conservation and protection, there has been illegally cutting for firewood. 5.8. Biodiversity management. There are two basic ecosystem types: steppes and forests. The vegetation of the steppes is practically destroyed. Forests cover 9.6% of the territory; 86% of these are planted. Natural formations represent only 4% of the total cover. Moldova is far less forested than other European countries. The recession and high cost of imported fuel have led to the illegal cutting of trees for fuel wood. It is estimated that 65% of fuel wood needs are met in this way. The increase in the prices of energy for households is likely to increase illegal cutting. Another threat to forest areas is grazing, because animal feed prices have risen. Newly planted areas are particularly vulnerable to grazing animals, which destroy young plants and tear out seedlings. In 1996 Moldova worked out a strategy for the conservation of biological and landscape diversity. The Action Plan contains short-, medium- and long-term actions, as well as the respective responsible organisations and time frames. The goals to be achieved are: minimisation or elimination of negative impacts on biodiversity, sustaining the recovery capacity of biological and landscape diversity, public participation in the conservation of biological diversity.

36 Appendix lc. Environmental Assessment for the World Bank Rural Investment and Services Project (RISP).

Environmental Category: Fl (Financial Intermediary Assessment).

5.1. Summarize the steps undertaken for environmental assessment and EMP preparation (including consultation and disclosure) and the significant issues and their treatment emerging from this analysis.

The project falls into the World Bank's Fl category, as it will mainly provide funds to lending institutions that on- lend the funds to qualified applicants to implement a wide variety of rural development activities. As required for Fl category projects, a comprehensive Environmental Review (Environment Sector Review, dated March 2001, in project files) was conducted by international and local consultants to: * assess the adequacy of the legislative framework for environmental assessment; * identify institutions that would be responsible for the EIA under RISP; * determine TA and training needs for these institutions to adequately implement the environmental assessment (EIA) requirements; and * propose procedures for environmental screening, EIA preparation and implementation, possible mitigation measures for certain sub-projects, and monitoring and evaluation of implementation of EIA requirements.

The activities to be financed under the RISP will be small, demand-driven investments in farm and non-farm income generating activities. Given the small size of the activities financed under the project, the environmental impacts of individual subprojects are expected to be small. However, the specific activities, their potential environmental impacts, and local cumulative impacts can only be known during project implementation. For this reason, the project will put in place an environmental review and screening mechanism that will: * carry out an environmental review and assessment as needed in accordance with Moldovan Law and World Bank requirements; * prevent financing of projects with significant environmental impacts, and * identify mitigation measures for project with less than significant environmental impacts, to be implemented as part of the subproject activities.

To guide PFIs and CAPMU in this process, an environment section was developed as part of the Rural Credit Guidelines for PFIs under RISP, providing mechanisms for environmental screening of proposals, preparing an EIA and supervising its implementation.

The Project will build capacity in the CAPMU to undertake the environmental reviews and ensure that the mitigation measures are followed. This technical assistance will be co-financed by a grant from the Global Environment Facility (through the Agricultural Pollution Control Project, APCP). As a result, potential environmental impacts will be avoided or minimized by applying a set of good practices directed to farmers through the advisory Components of the RISP, such as providing guidance to clients on environmental and agricultural sustainability m atters when advising on agricultural production activities. In addition, the A PCP and the Lower Dniester River Biodiversity Project (a second GEF-financed project) will support environmentally sustainable agriculture technologies, organic farming, and provide farmer education on environmentally sound practices. These projects will provide incentives to farmers and extension services to enhance agricultural productivity in an environmentally friendly manner.

5.2. What are the main features of the EMP and are they adequate?

For projects requiring an EIA, the EIA will identify whether an EMP is needed.

5.3. For Category A and B projects, time-line and status of EA: Date of receipt of final draft: N/A

Environmental Review prepared in March 2001.

37 5.4. How have stakeholders been consulted at the stage of (a) environmental screening and (b) draft EA report on the environmental impacts and proposed environment management plan? Describe mechanisms of consultation that were used and which groups were consulted?

Extensive consultations with stakeholders groups have taken place in various parts of the country including stakeholders from the M inistry o f E nvironment, N GOs a nd farmer o rganizations. A workshop was held with a number of NGO representatives and government specialists to identify major issues and problems, including environmental issues facing rural people and how these problems would be best addressed. Results from the workshop were supplemented with a background description of agricultural and rural conditions, and current activities in Moldova. These two initiatives provided a base upon which a number of assumptions in terms of probable agricultural and rural activities to be supported through the project would be made. Also, the Environmental Review was carried out on the basis of discussions with the Ministry of Environment.

5.5. What mechanisms have been established to monitor & evaluate the project's impact on the environment? Do the indicators reflect the objectives and results of the EMP?

The CAPMU and the lending institutions will environmentally screen each proposed activity, based on the Guidelines and Environmental Checklist. Where screening indicates that an EIA is required, the lending agency will direct the proponent to conduct and submit to RISP management an acceptable EIA prior to funding approval. The CAPMU will have the responsibility for verifying the need for an EIA and advising the project proponent on EIA preparation, and monitoring sub-projects implementation, including ensuring that the sub-projects meet the environmental requirements of the country and are consistent with the Bank's guidelines. The CAPMU will include an officer responsible for environmental management, based on EIA Guidelines. This individual, and relevant staff of the PFIs, would be given appropriate training as described in the Guidelines, again supported by APCP.

The following is a preliminary procedure for environmental screening and EIA preparation, review and approval: * application for line of credit is submitted to the lending institution; * lending institution based on an Environmental Check List, determines whether or not the activity will require an EIA; * if EIA is needed, application is forwarded to CAPMU management for confirmation; * responsible officer reviews application and verifies need for an EIA; * if EIA is required loan applicant is informed; * if the applicant wishes to proceed he carries out an EIA (guidelines to be provided) and submits EIA to CAPMU through lending institution; * CAPMU reviews EIA and suggests revisions and eventually approves or rejects project on the basis of the EIA; * if approved, CAPMU will monitor the activity to ensure that it is in full compliance with the management plan.

Monitoring. Frequent monitoring by the Bank and CAPMU will be required to ensure that mitigation is carried out and to also determine whether or not additional impacts, not identified in this environmental review, have not been overlooked. Monitoring will be carried out on a systematic basis by the project management team or its designate (e.g. a local environmental consultant). A detailed monitoring procedure will be developed and the individual(s) responsible would receive training in monitoring techniques. The World Bank should also include an environmental specialist on the occasional supervisory mission to ensure that environmental monitoring is being conducted effectively and that monitoring results are being acted upon.

Training. The MEPTD is responsible for administering the Law on Environmental Protection. However, apart from complex and potentially dangerous projects, this law does not address the need for ELAs on most projects. Thus, RISP management staff and lending agencies' staff will require various levels of environmental management training, to be provided under the Project based on the EIA Guidelines.

38 Appendix 2. APCP Environmental Management Plan.

Table 1. Environmental Management Plan for Moldova ACPC Project: Environmental Impacts.

Issues Anticipated/Potential Effects on Environment Actions or Mitigation Measures Environmental Impacts Surface i) Surface water quality will i) Increased quality and i) Develop and implement improved water improve with the reduction in availability of Danube River manure management and quality nitrogen and phosphorus from water and Black Sea coastal environmentally sound agricultural cattle, pigs, sheep/goats and poultry waters will result in increased management practices in Lapusna manure disposal sites. Agricultural use of beaches by public and County of the Lapusna River basin. areas treated with organic and increased harvest of better ii) Undertake a rigorous surface water inorganic fertilisers, as better quality fish. quality monitoring programme for nutrient management practices will ii) Increased utility of water Lapusna River and other surface water be implemented by the project. for downstream users and bodies that drain into Danube River to ii) Water draining into Lapusna, fisheries if any. establish a baseline database of the Prut and Danube Rivers improves. quality of surface waters, lakes, iii) Overall effects on the quality of wetlands and the Danube River as Danube river will be positive. affected by better agricultural and Probability of occurrence: High manure management practices. Ground- i) Reduction in nutrient leaching to i) Increased quality and i) Implement environmentally sound water groundwater quality will occur with availability of groundwater for agricultural and manure management the introduction of better manure human and animal practices in the project area. storage and handling, and nutrient consumption. ii) Implement wellhead protection management practices. ii) Groundwater is the main programmes for rural drinking wells. ii) Quality of drinking water source of drinking water for iii) Establish extensive groundwater supplies will improve with the rural population and decreased monitoring programme in the highly reduction of nitrate and bacteria in levels of nitrate and bacteria in intensive agricultural and animal groundwater as a result of water will reduce water borne production areas to determine the effect collecting manure from individual diseases in Lapusna region of better nutrient management practices. farmer's homesteads and storing in such as nitrate poisoning and iii) Monitor groundwater quality in communal platforms. acute diarrhoea. piezometers and wells in areas with improved agriculture and animal waste Probability of occurrence: High management systems Soil With the introduction of better Better productive lands with Undertake soil monitoring of selected Quality farming systems, soil quality will increased organic matter and areas to establish the effect of better improve, erosion decreased carbon sequestration, reduce farming systems on soil erosion and soil Probability of occurrence: High humus and soil loss. and water quality. Wetland With the re-establishment of a Decrease of N & P, and faecal Undertake monitoring of water quality establish- wetland in the lower reaches of the matter flowing into the and flora and fauna. ment Lapusna and Prut rivers will act as Danube basin. a filter for chemical and faecal More sustainable use of material. Increase in the flora/fauna habitat. Probability of occurrence: High Bio- Increased biodiversity will occur Increased biodiversity and Observe impact on new plant and diversity because of better manure migratory bird population. animal populations, and soil worm and management systems, introduction microbial activity. Measure effects on of conservation tillage systems, soil organic matter and carbon contents, forest areas, buffer strips etc. and possibly water quality. Probability of occurrence: High

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