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World Bank Document E1119 -. ~~^ -- Public Disclosure Authorized -41~~~~- Public Disclosure Authorized Public Disclosure Authorized Preparation of Natural Resources Development Project (NRDP), Albania Grant number TF 053121 Environmental Assessment FINAL 28 Febriuary 2005 Public Disclosure Authorized RM i I CONTENTS LIST OFACRONYMS EXECUTIVE SUMMARY 1 INTRODUCTION 1 1.1 OBJECTIVES 1 1.2 STAKEHOLDER CONSULTATION PROCESS 2 1.3 ENVIRONMENTAL MANAGEMENT FRAMEWORK 2 1.4 LAYOUT OF THIS REPORT 4 2 PROJECTDESCRIPTION 5 2.1 BACKGROUND 5 2.2 PROJECTDEVELOPMENT OBJECTIVE 5 2.3 PROJECTAREA AND SCOPE 5 2.4 PROJECTIMPLEMENTATION ARRANGEMENTS 8 2.5 PROPOSEDBUDGET 9 3 SAFEGUARD SCREENING PROCEDURES 10 3.1 WORLD BANK SAFEGUARD POLICIES 10 3.2 ALBANIAN ENVIRONMENTAL LAW 10 3.3 ALBANIAN ENVIRONMENTAL POLICY AND INTERNATIONAL COMMITMENTS 15 3.4 INSTITUTIONAL CONSIDERATIONS 17 4 KEY BASELINE INFORMATION 21 4.1 COUNTRY PROFILE 21 4.2 WATER RESOURCES 22 4.3 FOREST RESOURCES 23 4.4 LAND DEGRADATION 26 4.5 BIODIVERSITY 27 5 POTENTIAL IMPACTS AND MITIGATION MEASURES 32 5.1 BACKGROUND GUIDANCE 32 5.2 IMPACT ASSESSMENT 32 5.3 ENVIRONMENTAL MITIGATION MEASURES FOR EMF 39 6 ANALYSIS OF ALTERNATIVES 43 6.1 'WITHOUTPROJECT'ALTERNATIVE 43 6.2 DIRECTINTERVENTIONS BYFORESTRY SERVICE 43 6.3 STRENGTHENING OF PROTECTEDAREAS MANAGEMENT 44 7 ENVIRONMENTAL MANAGEMENT FRAMEWORK 45 7.1 EMFACTIVITIES 45 7.2 EMF REPORTING AND RESPONSIBILITIES 49 7.3 ENVIRONMENTAL SCREENING AND REPORTING 50 7.4 CAPACITY BUILDING AND TRAINING 53 7.5 ESTIMATED INCREMENTAL COSTS FOR EMF 54 ANNEXA LIST OF STAKEHOLDERS CONSULTED ANNEX B LIST OF REFERENCES ANNEX C BACKGROUND INFORMATION ON RELEVANT EU DIRECTIVES ANNEX D LIST OFALBANIAN ENVIRONMENTAL NGOs ANNEX E MAIN WATERSHEDS IN ALBANIA ANNEX F SCOPING OF POTENTIAL ENVIRONMENTAL IMPACTS OF THE NRDP LIST OF ACRONYMS AND ABBREVIATIONS AFP Albania Forestry Project CAS Country Assistance Strategy CZM Coastal Zone Management DFS District Forestry Service DGFP General Directorate of Forests and Pastures EA Environmental Assessment EIA Environmental Impact Assessment EMF Environmental Management Framework EU European Union FPDS Forest and Pasture Strategy FPUA Forest and Pasture User Associations GDP Gross Domestic Product GEF Global Environment Facility GoA Government of Albania LEAP Local Environmental Action Plan MAF Ministry of Agriculture and Food M&E Monitoring and Evaluation MC Micro-Catchment NEAP National Environmental Action Plan NGO Non-Governmental Organisation NRDP Natural Resources Development Project PMT Project Management Team PIOC Project Implementation Oversight Committee PIM Project Implementation Manual PTC Project Technical Committee REC Regional Environment Center RC Regional Coordinator REA Regional Environment Agency RM Regional Manager RWST Regional Watershed Support Team SA Social Assessment Sida Swedish International Development Cooperation Agency SNV Netherlands Development Organization UNDP United Nations Development Program USDA United States Department of Agriculture WFP World Food Program WRM Water Resources Management i i i i i i I i EXECUTIVE SUMMARY The Govemment of Albania (GoA) has requested financial assistance (US$20m) from the World Bank and other donors for the preparation and implementation of the Natural Resources Development Project (NRDP). The proposed project will be financed through a US$7 million IDA credit, a US$5 million Global Environment Facility (GEF) grant, and a SEK40 million grant from the Swedish International Development Cooperation Agency (Sida). The following is a summary of the Environmental Assessment (EA) of the NRDP, carried out as part of project preparation. The primary task of the EA was to develop an Environmental Management Framework (EMF) that establishes methodologies for identification and mitigation of environmental impacts during project implementation. PROJECTDESCRIPTION The project development objective is to establish or maintain sustainable, community-based natural resource management in about 218 communes in upland and mountainous erosion-prone lands. This will lead to enhanced productivity and incomes derived from sustainable resource management, reduced soil degradation, improved water management, conservation of biodiversity, and strengthened public sector management of these resources. Project objectives will be achieved through implementing two main components. The first component will strengthen the community-based approach to forest and pasture management developed for 138 communes under the Albania Forestry Project (AFP), as well as scale up coverage to include about 80 additional communes. The second component will pilot integrated management of natural resources in three of Albania's seven watersheds, focusing on five regions located the northern areas of the country'. The component will introduce a multi-sectoral approach to planning and management of natural resources at the level of micro- catchments (MCs). STAKEHOLDER CONSULTATION PROCESS The consultation process has included both formal and informal consultation with a wide range of key informants and government and civil society stakeholders at the national, regional and local level; the latter including three districts of upland Albania (Tropoje, Hasi and Kukes districts in north-east Albania). Environmental and natural resources management issues were discussed at all of these meetings, usually within the context of overall project development, but in several cases specifically. (1) 1 The three watersheds include Drini, Nlati, and Shkumbini, while the five regions include Dibra, Korce, Kukes, Lezha, Elbasan and Korce. ENVIRONMENTALRESOURCES NIANAGENIENT GOVERNMENTOF ALBANIA In broad terms, given the underlying objective of the project to address land degradation as one of the key priorities for the environment in Albania, those consulted viewed the project in very positive terms from an environmental perspective. Few, if any, negative opinions were addressed in relation to environmental issues surrounding the project. However, some specific concerns were raised about arrangements for environmental monitoring, largely focusing on the need to draw upon, nurture and support the existing system of environmental controls and monitoring that exists at the regional level, rather than bypass it, and to involve to local NGOs in the process of building awareness and sensitisation to environmental issues within participating communities, and in monitoring and evaluating the success of the project. These issues were subsequently addressed within the EMF. ENVIRONMENTAL MANAGEMENT FRAMEWORK (EMF) The successful implementation of the NRDP will clearly have a major positive impact on environmental and natural resources in upland areas of Albania, and, importantly, on downstream resources in the watersheds in which the project operates. Environmental benefits are an integral part of the NRDP, owing to its objective to reverse land and watershed degradation through a mixture of direct physical interventions and support to policy and institutional strengthening and reform. However, this does not preclude the risks of localised negative environmental impacts of community-level interventions, or cumulative impacts of these interventions. Table I summarises the key localised environmental issues that have been identified by the EA, along with the various environmental protection activities that are to be mainstreamed within the NRDP. It includes project stakeholder roles and responsibilities in relation to these activities, and their relative timing in relation to the overall project activities. EMF Reporting and Responsibilities Table I assigns a range of roles and responsibilities in relation to implementation and monitoring of the various environmental protection activities envisaged under the NRDP. These responsibilities have been assigned taking into account the overall implementation arrangements for the project, and are designed to take place within the EMF reporting and responsibility framework shown in Figure 1, and described in the following sections. Environmental Screening at the Plan Level The Regional Manager, supported by their Regional Coordinator/RWST (for Component B) or DFS (for Component A), will assist communities to develop their management plans in a way to avoid or minimise adverse environmental impacts. ENVIRONNIENTALRESOURCES NIANAGENIENT GOVERNNIENTOF ALBANIA 11 Table I Environmental Managemtent FrameworkActivities Activity/Key Issue Mainstreaming or mitigation measures Responsibility for action Timing A. On-farm interventions on rain-fed and irrigated land Enhance overall benefits of activities to reduce * Promotion and implementation of basic good Regional Watershed Support Team As part of individual MC planning process land and watershed degradation in upland areas practices in soil and water conservation (RWST), with support from Regional of Albania. wherever possible within the micro-catchment Coordinator (RC) (MC) plans. Support for fertiliser application to establish . Provision of effective extension services to RWST with support from RC As part of individual MC planning process newly planted crops may lead to inappropriate demonstrate best practices in fertiliser application methods and increased nutrient application. runoff. * Promotion of Integrated Pest Management RWST with support from RC As part of individual MC planning process (IPM) approaches where appropriate, including biological controls, cultural practices, and use of resistant crop varieties. * Periodic consultation with water supply Audit
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