DOCUMENT OF THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT REGIONAL EBRD and Global Environment Facility Promoting accelerated uptake of environmental technologies and promotion of best practices for improved water, chemicals and waste management in the Black Sea Basin Project Document 30 May 2019 This document has a restricted distribution and may be used by the recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without the Bank's authorisation. Black Sea Basin: Project Document Table of Contents List of figures ......................................................................................................................................... ii List of tables........................................................................................................................................... ii Abbreviations and acronyms .............................................................................................................. iii Executive summary ............................................................................................................................... v 1 Context ........................................................................................................................................... 1 1.1 Overview of the EBRD region ............................................................................................................ 1 1.2 Overview of the Black Sea Basin ....................................................................................................... 3 1.3 International Waters ........................................................................................................................... 4 1.4 Chemicals and Waste .......................................................................................................................... 6 2 Baseline .......................................................................................................................................... 8 2.1 Baseline Scenario ................................................................................................................................. 8 2.2 Consistency with National Priorities ............................................................................................... 14 2.3 Barriers .............................................................................................................................................. 15 3 Project design .............................................................................................................................. 18 3.1 Project Alternative Scenario ............................................................................................................ 18 3.2 Project Objective and Outcomes ..................................................................................................... 20 3.3 Project Components and Outputs ................................................................................................... 21 3.4 Project Financing .............................................................................................................................. 28 3.5 Incrementality and Additionality .................................................................................................... 30 3.6 Global Environmental Benefits ........................................................................................................ 30 3.7 Innovativeness, Sustainability and Potential for Scaling-up ......................................................... 31 4 Rationale for the Bank’s involvement ....................................................................................... 33 4.1 Fit with the EBRD ............................................................................................................................. 33 4.2 Risks ................................................................................................................................................... 35 4.3 Socio-economic Benefits .................................................................................................................... 36 4.4 Gender ................................................................................................................................................ 37 5 Project Management, and Monitoring and Evaluation ........................................................... 38 5.1 Project Management Structure ........................................................................................................ 38 5.2 Consultancies ..................................................................................................................................... 39 5.3 Stakeholder Engagement .................................................................................................................. 40 6 Monitoring and Reporting ......................................................................................................... 41 6.1 EBRD Monitoring ............................................................................................................................. 41 6.2 GEF Monitoring and Reporting ...................................................................................................... 41 6.3 Monitoring and Evaluation Budget ................................................................................................. 42 Annex A: Project Results Framework .............................................................................................. 43 Annex B: EBRD procedures for approval of investments .............................................................. 46 Annex C: Pipeline investments and Global Environmental Benefits Analysis - CONFIDENTIAL .............................................................................................................................................................. 48 Annex D: Gender Analysis and Gender Action Plan ....................................................................... 49 Annex E: POPs and other waste sources, and mitigation and reduction measures ...................... 58 Annex F: Water pollution, and mitigation and reduction measures .............................................. 60 Annex G: Relevant on-going projects in participating Countries .................................................. 61 Annex H: Country Profiles ................................................................................................................ 64 Annex I: Stakeholder Engagement Plan ........................................................................................... 81 i Black Sea Basin: Project Document List of figures Figure 1. Black Sea Project target countries ........................................................................................... 3 Figure 2. Black Sea Eutrophication Integrated Assessment Tool (BEAST) – water quality .................. 4 Figure 3. Main land based sources of Black Sea basin pollution (a) “hot spots”, (b) river run-off ........ 5 Figure 4. Model results of water quality from the three Black Sea regions: the North Black Sea, the Azov Sea and the South Black Sea ......................................................................................................... 6 Figure 5. Project overview .................................................................................................................... 20 Figure 6. EBRD’s Project implementation structure ............................................................................ 39 List of tables Table 1. Objectives and results of recent investments targeting nutrient and chemical pollution in the Black Sea basin region .......................................................................................................................... 10 Table 2. Summary of relevant national priorities.................................................................................. 14 Table 3. Barriers to investment in improved water, waste and chemicals technologies and management practices in target countries ............................................................................................. 16 Table 4. Summary of indicative pipeline, including description, relevance to Black Sea, funding sources and requirements, and potential GEBs ..................................................................................... 24 Table 5. Breakdown of project components and sources of financing ................................................. 29 Table 6. Summary of GEBs .................................................................................................................. 31 Table 7. EBRD country strategy objectives for the countries involved in the Project.......................... 33 Table 8. Risks, ratings and mitigations ................................................................................................. 35 Table 9. Indicative monitoring and evaluation plan.............................................................................. 42 ii Black Sea Basin: Project Document Abbreviations and acronyms APMR Annual Portfolio Monitoring Report BAT Best Available Techniques BEAST Black Sea Eutrophication Integrated Assessment Tool BOD Biological Oxygen Demand BREFs Best Available Techniques Reference Documents BSC Black Sea Commission BSIMAP Black Sea Integrated monitoring and Assessment Programme BS SAPIR Strategic Action Plan for Environmental Protection and Rehabilitation