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1 Public Disclosure Authorized Public Disclosure Copy MIDDLE EAST AND NORTH AFRICA Egypt, Arab Republic of Environment & Natural Resources Global Practice Global Environment Project Investment Project Financing FY 2014 Seq No: 8 ARCHIVED on 25-Mar-2018 ISR31548 Implementing Agencies: Egypt Environmental Affairs Agency (EEAA), Ministry of International Cooperation Public Disclosure Authorized Key Dates Key Project Dates Bank Approval Date:13-Jun-2014 Planned Mid Term Review Date:18-Oct-2017 Original Closing Date:30-Nov-2018 Global Development Objectives Effectiveness Date:08-Sep-2014 Actual Mid-Term Review Date:21-Jan-2018 Revised Closing Date:30-Nov-2018 Public Disclosure Authorized Global Environmental Objective (from Project Appraisal Document) The project development objective is to improve the management and disposal of targeted stockpiles of obsolete pesticides, including Persistent Organic Pollutants (POPs) and Polychlorinated Biphenyl (PCBs), in an environmentally sound manner. Has the Global Environmental Objective been changed since Board Approval of the Project Objective? No Components Public Disclosure Authorized Name Component 1: Destruction of High Risk Stocks of Obsolete Pesticide:(Cost $3.83 M) Component 2: Decontamination of PCB-Containing Transformer Oils:(Cost $4.27 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions The mid-term review mission was conducted from Jan. 21 to 24, The project has encountered substantial delays towards achievement of the Page 1 of 10

2 Public Disclosure Copy PDO and its indicators, mainly because slow progress have been made on the Component 2 for decontamination of PCB contaminated transformer oils. It was agreed that the project closing date will be extended to allow completion of the project activities and indicators, therefore, achieving the PDO. Page 2 of 10

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5 Public Disclosure Copy Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- Moderate Moderate Macroeconomic -- Low Low Sector Strategies and Policies -- Low Low Technical Design of Project or Program -- Substantial Substantial Institutional Capacity for Implementation and Sustainability -- High High Fiduciary -- Substantial Substantial Environment and Social -- Substantial Substantial Stakeholders -- Substantial Substantial Other Overall -- Substantial Substantial Results Global Environmental Objective Indicators Page 5 of 10

6 PHINDGEOTBL PHINDGEOTBL PHINDGEOTBL Public Disclosure Copy POPs&pops waste destroyed,disposed or contained in environmentally sound manner(metric ton, Custom) Value , The first batch of 237 tons of obsolete pesticides (Lindane, a POP chemical) at Al-Adabeya Port and 4 tons (DDT and Dicofol) at El Saf and Bahteem storage sites has been successfully exported by an international firm for destruction in France. The contract for the second batch of high-risk obsolete pesticides (350 tons, mainly Ametryn) at the El Saf site is to be signed in April 2018, once the Environmental and Social Management Plan is cleared by the Bank team and included in the contract. The procurement for the third batch (about tons) from 30 other sites will be initiated in May 2018, once high-risk obsolete pesticides are confirmed. Identification of PCB waste have been delayed, therefore, no PCB waste has been treated. Direct project beneficiaries(number, Custom) Value , , The most obsolete POPs pesticides were stored at the Adabeya port, which is located at ATAKA district at Suez Governorate which is an Industrial/Residential area of 8827 km2 with total population of 27,340 inhabitant including 40% women. Therefore, roughly 27,340 people are the project beneficiaries from the removal of those POPs pesticides. Female beneficiaries(percentage, Custom Supplement) Value Page 6 of 10

7 PHINDIRITBL PHINDIRITBL Public Disclosure Copy Overall Intermediate Results Indicators PCB contaminated oils decontaminated (Metric ton, Custom) Value , The project component 2 has encountered substantial delays because of the following reasons: (i) required re-tender of the Personal Protection Equipment due to sharp devaluation of the Egyptian Pound, and (ii) delays of the inventory of the transformers in the transmission and distribution network to determine the amount and concentration of PCB contamination which are executed by staff of MOEE. At the time of the MTR mission, 1,091 of the prioritized 22,000 transformers were sampled and screened to date with 452 tons of contaminated PCB oil identified, for which its PCB concentration is to be verified in the laboratory of the Ministry of Electricity and Renewable Energy. It was agreed that MOEE will try its best to update the PCB inventory by identifying up to 1000 tons of PCB contaminated transformer oils by end of June 2018 and the largest transformers in the transmission sector by April 2018 (inventory of the electricity production companies has been completed). This will allow a feasibility study (FS) to be carried out to determine the final option for decontamination. Tracking system for management of PCBs operational (Yes/No, Custom) Value N N Y Y By the MTR mission, PCB contamination are confirmed by fast tool kits only, no lab testing under the project has been done yet. The PMU has been keeping all transformer samples and MOEE will do lab testing after the testing equipment (GC) is purchased. The PMU only labels PCB contaminated transformers. But, all sampled transformers are being labeled by bar-code label and by red painting. As of Jan 31, 2018, labels were provided by MOEE and being distributed to each company to label PCB s transformers. The PMU provided and trained MOEE for a simple tracking system consisting of a data base in a form of excel sheet, bar-code printer, barcode reader, plastic labels (5 by 2.5 cm each), and red color painter. For each sampled transformer, three labels with the same bar-code are used. One label stuck on the transformer, the second stuck on the data sheet, and the third on the sample itself. The barcode of the data sheet is read by the bar-code reader in the office and connected directly to the excel sheet directly to fill in the transformer field data. After the sample is analyzed, the bar-code of the data sheet is read again to register the results in the data base. On the other hand, the Page 7 of 10

8 PHINDIRITBL PHINDIRITBL Public Disclosure Copy transformer is marked with red-paint in case the bar-code is lost. Finally, when the analysis shows that a transformer is contaminated by PCB s, a red plastic sticker is glued on the transformer and also "PCB" is painted in red on the transformer. Tracking system for management of obsolete pesticides operational (Yes/No, Custom) Value N N N Y The tracking system for Obsolete Pesticides (OPs) has not been established yet. The PMU plans to include a proposal for establishing such a system in the national strategy for OP management and it is preparing a TOR for development of the strategy. Obsolete pesticides including POPs pesticides disposed of in an environmentally sound manner (Metric ton, Custom) Value , The first batch of 237 tons of obsolete pesticides (Lindane, a POP chemical) at Al-Adabeya Port and 4 tons (DDT and Dicofol) at El Saf and Bahteem storage sites has been successfully exported by an international firm for destruction in France. The works to safely and professionally remove the waste which has been stored in the Port for 18+ years received substantial positive media attention from newspapers and TV. And a feature story and a result video have been produced. Page 8 of 10

9 PHINDIRITBL PHINDIRITBL Public Disclosure Copy Obsolete pesticides at El-Staff removed and disposed of (Yes/No, Custom) Value N N N Y The contract for the second batch of high-risk obsolete pesticides (350 tons, mainly Ametryn) at the El Saf site is to be signed in April 2018, once the Environmental and Social Management Plan is cleared by the Bank team and included in the contract. Obsolete pesticides at Al-Adabeya removed and disposed of (Yes/No, Custom) Value N N N Y There are also tons of high-risk OP (non-pops) at Al-Adabeya port, which will be removed/disposed of in the third batch. Overall Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P TF Effective USD % Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date Page 9 of 10

10 Public Disclosure Copy P TF Effective 26-Aug Aug Sep Nov Nov-2018 Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. Page 10 of 10