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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

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