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Document of International Development Association Public Disclosure Authorized FOR OFFICIAL USE ONLY Report No: 4341 8-MV PROJECT APPRAISAL DOCUMENT ON A PROPOSED CREDIT Public Disclosure Authorized IN THE AMOUNT OF SDR 8 MILLION (US$13.15 MILLION EQUIVALENT) TO THE REPUBLIC OF MALDIVES IN SUPPORT OF THE ENVIRONMENTAL MANAGEMENT PROJECT May 5,2008 Public Disclosure Authorized Sustainable Development Department Social, Environment and Water Resources Management Unit South Asia Region This document has a restricted distribution and may be used by recipients only in the Public Disclosure Authorized performance of their official duties. Its contents may not otherwise be disclosed without IDA authorization CURRENCY EQUIVALENTS Exchange Rate Effective: March 3 1,2008 Currency Unit = Maldive Rufiyaa (MVR) MVR12.80 = US$1 US$ 1 = SDR 1.6466 FISCAL YEAR January 1 - December 31 ABBREVIATIONS AND ACRONYMS ADB Asian Development Bank MOFT Ministry of Finance and Treasury BP Bank Procedure MOU Memorandum of Understanding BPEO Best Practical Environment Option MPND Ministry of Planning and National Development CFAA Country Financial Accountability Assessment MRC Marine Research Centre EA Environmental Assessment MVR Maldivian Rufiyaa EHS Environmental Health and Safety Guidelines NCB National Competitive Bidding EMP Environmental Management Plan NDP National Development Plan EPPA EnvironmentalProtection and Preservation Act NDR Northern Development Region ERC EnvironmentalResearch Centre, MEEW NIMBY “Not-in-my-backyard” FM Financial Management NOAA National Oceanic and Atmospheric Administration ESIA Environmental and Social Impact Assessment NPV Net Present Value FM Financial Management O&M Operation and Maintenance GEF Global EnvironmentalFacility OECD Organization for Economic Cooperation and Development GIS Geographical Information System OM Operations Manual GoM Government of Maldives OP Operational Policy HIV Human immunodeficiencyvirus PAD Project Appraisal Document HR Human Resource(s) PDO Project Development Objective ICB International Competitive Bidding PMU Project Management Unit IDA International Development Association PRA Participatory Rural Appraisal IFC International Finance Corporation RDMO Regional Development Management Office IFR Interim Financial Reports RDP Regional Development Plan IUCN International Union for the Conservation ofNature ROM Republic of Maldives IWM Island Waste Management RSEA Regional Strategic Environmental Assessment IWMC Island Waste Management Center RWMF Regional Waste Management Facility IWMP Island Waste Management Plan SBD Standard Bidding Document M&E Monitoring & Evaluation SDR Southern Development Region MCHE Maldives College of Higher Education SWM Solid Waste Management ME Ministry of Education TES Tender Evaluation Section MEEW Ministry of Environment, Energy and Water TEV Total Economic Value MHE Ministry of Higher Education TOR Terms of Reference MMA Maldives Monetary Authority UNDP United Nations Development Programme MOAD Ministry of Atolls Development UNEP United Nations Environmental Programme MOFAMR Ministry of Fisheries, Agriculture and Marine Resources Vice President: Prahl Pate1 Country Director: Alastair J. McKechnie Sector Manager: Karin Kemper Task Team Leader: Richard Damania FOR OFFICIAL USE ONLY MALDIVES- ENVIRONMENTAL MANAGEMENT PROJECT PROJECT APPRAISAL DOCUMENT SOUTH ASIA REGION ENVIRONMENT AND WATER RESOURCES MANAGEMENT UNIT Date: May 5,2008 Team Leader: Richard Damania Country Director: Alastair J. McKechnie Sectors: Environment Sector ManagerDirector: Karin Kemper Themes: Solid Waste Management; Marine Resources Management; Public Sector Management Project ID: P108078 Environmental screening category: A: Full Assessment Lending Instrument: Specific Investment Credit [ ] Loan [XI Credit [ 3 Grant [ ] Guarantee [ ] Other: For Loans/Credits/Others: Total IDA financing (US$m.): 13.15 International Development Association 7.89 5.27 13.15 Total: 8.44 5.45 13.88 Borrowers: Ministry ofFinance and Treasury Ameenee Magu Block 379 MalC, 20379 Republic ofMaldives General Tel: + 960 3349223 Fax: + 960 3324432 / 3338034 E-mail: erms@,finance.aov.mv Responsible Agencies: Ministry ofEnvironment, Energy, and Water (MEEW) FEN Building Ameenee Magu Male, Republic ofMaldives Tel: +960 3324861 Fax: +960 3322286 Email: env@,environment. gov .mv This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not be otherwise disclosed without World Bank authorization. Does the project depart from the CAS in content or other significant respects? Re$ [ ]Yes [XINO PAD A.3 Does the project require any exceptions from IDA policies? Re$ PAD D. 7 [ ]Yes [XINO Have these been approved by management? n.a. Is approval for any policy exception sought fi-om the Board? n.a. Does the project include any critical risks rated “substantial” or “high”? [XIYes []No Re$ PAD C.5 Does the project meet the Regional criteria for readiness for implementation? Re$ [XIYes [ ]No PAD D. 7 Project development objective Re$ PAD B.2, Technical Annex 3 The first Project Development Objective is that a solid waste management system is established and that inhabitants on targeted islands use solid waste management facilities, reducing the risks ofcontamination associated with accumulated wastes and sea dumping. The second Project Development Objective is to build human and technical capacity for environmental management so that the environmental dimension is integrated in the planning process using information and expertise developed in the Project. Project description Ref: PAD B.3.a, Technical Annex 4 The Project has been organized into four components: Component I: Regional Solid Waste Management Program Component 2: Capacity Building for Environmental Management Component 3: Technical Assistance for Strengthened Environmental Management and Monitoring and a Pilot Regional Strategic Environmental Assessment Component 4: Project Management and Communications Which safeguard policies are triggered, if any? Re$ PAD 0.6, Technical Annex 10 The Project has received an Environmental Category A rating and triggers the following safeguards: OP 4.0 1 (Environmental Assessment); OP 4.04 (Natural Habitats). Significant, non-standard conditions, if any: none. Board presentation: June 10,2008 Credit effectiveness conditions: None Covenants applicable to project implementation: A disbursement condition would apply. The disbursement condition requires that: No withdrawal shall be made under sub components 1.3 (Construction of Island Waste Management Centers (JWMC)), 1.4 (Waste Transfer System) and 1.5 (Construction of Regional Waste Management Facility (RWMF)) until the completion of (i)an Environmental and Social Impact Assessment for the RWMF and (ii)a framework for the operation and financial management of IWMCs and RWMFs, all ofwhich are satisfactory to IDA. MALDIVES Maldives Environmental Management Project CONTENTS Page I. STRATEGIC CONTEXT AND RATIONALE ................................................................. 7 A . Country and sector issues ................................................................................................... 7 B. Rationale for Bank involvement ......................................................................................... 9 C . Higher level objectives to which the project contributes .................................................. 10 I1. PROJECT DESCRIPTION ........................................................................................... 11 A . Lending instrument ........................................................................................................... 11 B. Project development objective and key indicators ........................................................... 11 C . Project components ........................................................................................................... 12 D. Lessons learned and reflected in the project design ......................................................... 19 E. Alternatives considered and reasons for rejection ............................................................ 22 I11. IMPLEMENTATION .................................................................................................... 23 A . Partnership arrangements (if applicable) .......................................................................... 23 B. Institutional and implementation arrangements ................................................................ 23 C . Monitoring and Evaluation ofOutcomesmesults ............................................................. 23 D. Sustainability .................................................................................................................... 25 E. Critical Risks and Possible Controversial Aspects ........................................................... 25 F. Loadcredit conditions and covenants ............................................................................... 29 IV. APPRAISAL SUMMARY ............................................................................................. 29 A . Economic and financial analyses ...................................................................................... 29 B. Technical........................................................................................................................... 31 C . Fiduciary ..........................................................................................................................
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