Report No.39787-LBRepublicofLebanon Assessment ofEnvironm Economic Report No. 39787-LB Republic of Lebanon Economic Assessment of Environmental Public Disclosure Authorized Degradation Due to July 2006 Hostilities Sector Note October 11, 2007 Sustainable Development Department Middle East and North Africa Region Public Disclosure Authorized Public Disclosure Authorized ental Degradation Due to the July 2006Hostilities DuetotheJuly ental Degradation Document of the World Bank Public Disclosure Authorized Currency Equivalents (Exchange rate effective May 15, 2007) Currency Unit = Lebanese Pound (LP) US$1.00 = 1,512 LP Fiscal Year July 1 – June 30 Vice-President: Daniela Gressani Country Director: Joseph P. Saba Sector Director: Inger Andersen Sector Manager: Luis Constantino Task Team Leader: Maria Sarraf ii ACKNOWLEDGEMENTS This report was prepared by a team consisting of Ms. Maria Sarraf (Task Team Leader, MNSSD), Ms. Lelia Croitoru (Environmental Economist, Consultant MNSSD), Mr. Mutasem El Fadel (Sr Environment, Consultant), Mr. Karim El-Jisr (Environment Consultant, ECODIT), Mr. Erkki Ikaheimo (Coastal Zone Specialist, Consultant), Mr. Erich Gundlach (Oil Spill Specialist, Consultant), and Ms. Samia Al-Duaij (Operations Officer, MNSSD). The team would like thank H.E. Mr. Yaccoub Sarraf (Minister of the Environment); Dr. Berj Hatjian (Director General, Ministry of Environment) as well as the whole team of the ministry of environment in Lebanon especially: Mmes/Messrs. Grace Rachid (Environmental Specialist); Ramzi Fanous (Statistician); Nabil Assaf (Forestry Officer); Hassan Bitar (Project manager ABQUAR); Samar Khalil (Project Manager); Ghada Mitri (Development Officer); Manal Mousallem (UNDP/MOE Early Recovery Coordinator); Adel Yacoub (Acting Head of the Department of Protection of Natural Resources); and Lina Yamout (Acting Chief of Service, Protection of Urban Environment); The report benefited from input from a range of experts from Lebanon, the team would like to thank in particular: Mmes/Messrs.: Rami Abu Salman (IUCN-Mediterranean); Pierre Achkar (Syndicate of Hotel Owners); Paul Ariss (Syndicate of Restaurant Owners); Jean Bayrouthi (Syndicate of Maritime Establishments); Nabil Chemaly (Lebanon Water Policy Program); Nohal El Homsi (WHO); Farah El Jam (AUB); Carla Huijer (AUB); David James (FAO); Ghassan Jaradi (Palm Islands Nature Reserve); Gaby Khalaf (National Center for Marine Sciences); Hala Kilani (IUCN-WESCANA); Dany Lichaa El- Khoury (SETS); Rania Maroun (SETS); Darine Mawla (AUB); Lara Muallem (AUB); Manal Nader (University of Balamand); Amal Othmani (AUB); Alissar Rady (WHO); Marwan Rizkallah (AUB); Darine Salamoun (AUB); Mohamed el Sarji (Syndicate of Professional Divers); Mary Semaan (AUB) and Issam Sidawi (Palm Islands Nature Reserve). The team would also like to acknowledge the constructive comments provided by the staff of the Ministry of Finance and the Presidency of the Council of Ministers for providing constructive comments. The authors would also like to thank Messrs. Sherif Arif (Regional Environment and Safeguard Advisor); Jan Bojo (Lead Environmental Economist, ENV); Hocine Chalal (Senior Environment Specialist); Sateh Chafic El-Arnaout (Senior Municipal Development Specialist); Sergio Margulis (Lead Environmental Economist, AFTSD) and Joseph Saba (Country Director, MNCO2) for providing constructive comments. Financial support for the preparation of this study was partially provided by the Finish Trust Fund through a grant to the METAP program (Mediterranean Environmental Technical Assistance Program). This volume is a product of the staff of the International Bank for Reconstruction and Development/ The World Bank. The findings, interpretations, and conclusions expressed in this paper do not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. iii TABLE OF CONTENTS Executive Summary .............................................................................................................................................................................................1 Chapter 1. Introduction .........................................................................................................................................................................5 1.1 Background.................................................................................................................................................. 5 1.2 Objective and Scope.................................................................................................................................... 5 1.3 Methodology................................................................................................................................................ 7 1.4 The preparation process............................................................................................................................... 8 Chapter 2. Oil Spill.................................................................................................................................................................................9 2.1 Oil spill: background and impacts............................................................................................................... 9 2.2 Methodological issues and assumptions.................................................................................................... 19 2.3 Hotels and furnished apartments ............................................................................................................... 22 2.4 Beach Resorts, Chalets and Public Beaches.............................................................................................. 23 2.5 Marinas Sports Activities.......................................................................................................................... 25 2.6 Palm Islands Nature Reserve..................................................................................................................... 28 2.7 Byblos World Heritage Site....................................................................................................................... 31 2.8 Restaurants................................................................................................................................................. 32 2.9 Fishing ....................................................................................................................................................... 33 2.10 Oil Fuel Burnt and Spilled in Jiyeh ........................................................................................................... 35 2.11 Oil spill clean-up operations...................................................................................................................... 36 2.12 Summary of damage and clean-up costs ................................................................................................... 39 2.13 Recommendations to improve the ecosystem management in the future ................................................. 39 Chapter 3. Demolition, Military and Medical Waste...............................................................................................................42 3.1 Introduction ............................................................................................................................................... 42 3.2 Construction and Demolition Waste ......................................................................................................... 42 3.3 Military Waste (Unexploded Ordnances).................................................................................................. 50 3.4 Medical Waste........................................................................................................................................... 53 3.5 Concluding Remarks................................................................................................................................. 54 Chapter 4. Water Degradation..........................................................................................................................................................55 4.1 Impacts on water resources........................................................................................................................ 55 4.2 The value of damage to water resources ................................................................................................... 56 Chapter 5. Quarries...............................................................................................................................................................................60 5.1 Background................................................................................................................................................ 60 5.2 Methodology.............................................................................................................................................. 60 5.3 Aggregate and Sand Needed for Reconstruction ...................................................................................... 60 5.4 Distribution of Quarrying Activities by mohafazah.................................................................................