PROJECT INFORMATION DOCUMENT (PID) CONCEPT STAGE Report No.: AB4077 Project Name
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1 PROJECT INFORMATION DOCUMENT (PID) CONCEPT STAGE Report No.: AB4077 Project Name Alexandria Coastal Zone Management Project (Under the Investment Fund for the Mediterranean Sea Large Marine Ecosystem) Region MIDDLE EAST AND NORTH AFRICA Sector General water, sanitation and flood protection sector (100%) Project ID P GEF Focal Area International waters Borrower(s) GOVERNMENT OF EGYPT Implementing Agency Egyptian Environmental Affairs Agency (EEAA) Environment Category [ ] A [X] B [ ] C [ ] FI [ ] TBD (to be determined) Date PID Prepared August 12, 2008 Estimated Date of November 17, 2008 Appraisal Authorization Estimated Date of Board December 16, 2008 Approval 1. Key development issues and rationale for Bank involvement The Strategic Action Plan for the Mediterranean 1 has identified several hot spots and sensitive areas on the northern coast of Egypt, which for several decades have been experiencing a continuous increase in population, development, and environmental degradation. Two of these hot spots are located in Alexandria (El-Mex Bay and Abu-Qir Bay), as shown in Figure 1. Lake Mariout is one of the major sources of conveyance of land based pollution to the El-Mex Bay. According to the Transboundary Diagnostic Analysis for the Mediterranean Sea, the pollution load reaching the Mediterranean Sea via the two hot spots in the Alexandria area are significant with more than a third of the total Biochemical Oxygen Demand and Chemical Oxygen Demand discharges in the area. The main sources of pollution are untreated domestic, agricultural and industrial wastewater. 1 The Mediterranean countries have also worked together to set priorities related to these transboundary problems and have jointly agreed on what interventions are needed to address such priorities through two Strategic Action Programs (SAPs): (a) The Strategic Action Program to Address Pollution from Land-Based Activities (SAP MED); and (b) The Strategic Action Program for the Conservation of Mediterranean Marine and Coastal Biological Diversity (SAP BIO). The two Strategic Action Programs are aimed at: (i) reducing land-based sources of marine pollution (SAP-MED) and (ii) protecting the biodiversity and living resources of the Mediterranean, as well as their habitats (SAP-BIO).
2 A Q B Figure 1. Map of Alexandria showing Lake Mariout, El-Mex Bay, and Abu-Qir Bay Key Development Issues The project addresses two main key development issues. The first relates to local public good, in that improving the water quality in Lake Mariout is expected to bring back the attractiveness and competitiveness of the area as a tourist destination, and to improve the livelihood of a large number of marginalized user groups such as the fishing communities. Improvement of the lake water will also bring about national financial benefits. The Cost of Environmental Degradation for Egypt was estimated in 2002 at 4.8% of GDP, with coastal zone degradation responsible for % of GDP 2. This report already drew the Government of Egypt s attention to the significance of the problem, and the need to address it. The second development issue relates to global public good impact, in that the Lake's water is delivered to the Mediterranean through pumping. Therefore, improving the Lake quality will improve the Mediterranean water quality. Rationale for Bank Involvement The Bank s experience in financing initiatives related to coastal zone management, and improvement of water quality associated development issues is extensive. Worldwide, the Bank has accumulated significant experience in financing initiatives related to coastal zone management. In addition, the Bank is well positioned to support the Government of Egypt s vision of environmental improvement through its widespread understanding of the country s industrial and environmental sector, and its engagement in other projects in the same sector. Linkage to Other Activities The project will compliment the ongoing Bank portfolio in Egypt. Specifically, the project will provide synergy with the ongoing Second Egypt Pollution Abatement Project (EPAP 2), which 2 Cost Assessment of Environmental Degradation, Arab Republic of Egypt, Sector Note, June 29, 2002, Report No EGT, The World Bank.
3 focuses on reducing the industrial pollution in two hot spots in Egypt: Lake Mariout and Greater Cairo. The budget of EPAP 2 is around US$165 million, US$20 million of which is contributed by the World Bank. Other co-financiers include EIB, AFD, JBIC, in addition to a grant from the Government of Finland. The project will also compliment The Alexandria Lake Mariout Integrated Management project (ALAMIM) funded under the EU SMAP III (Short and Medium term priority environmental Action Programme) which is intended to promote the integrated development of the Lake Mariout. The project is linked to other ongoing activities supported by the Government of Egypt, especially the ongoing upgrade and secondary treatment of the Eastern and Western treatment stations in Alexandria, which would directly improve the quality of Lake Mariout receiving water. In addition, the environmental rehabilitation of Lake Mariout and the development of the surrounding land is one of the three pillars of the Alexandria City Development Strategy (CDS). Relevance to the CAS The proposed project is consistent with the second Strategic Objective of the Egyptian Country Assistance Strategy (FY06-FY09). One long term goal related thereto is to improve air and water quality and reduce water loss. 2. Proposed objective(s) The overarching objective of the project is to contribute to the reduction of land-based sources of pollution entering the Mediterranean Sea through the identified hot spots in the Alexandria area, especially Lake Mariout. The results of the projects would be measured by the following outputs: A coastal zone management plan for Alexandria is in implemented. Investments are made in pollution reduction measures to Lake Mariout. The pollution load to Lake Mariout is lowered, as measured in terms of key water quality parameters (Biochemical Oxygen Demand and Total Suspended Solids). 3. Preliminary description The key components of the proposed project are as follows: Component (1): Develop the Alexandria Coastal Zone Management Plan (US$0.25 million). The output for this component is a master plan for the management of the coastal zones on and around Alexandria. Financing for this component will be for consultancy services. The consultant(s) would be required to (a) synthesize the various available relevant reports, (b) liaise with the relevant authorities and agencies to gain consensus, (c) develop a sustainable cost recovery scheme for the operation and maintenance of pollution reduction measures, and (d) hold workshops for the public consultation and plan dissemination. Component (2): Implement pollution reduction measures (US$ 7.0 million). The output of this component is the completion of one or more low-cost pollution reduction measures to reduce the pollution to Lake Mariout and, consequently, to the Mediterranean Sea. Financing for this component will go to (i) consultancy work for the preparation of the necessary feasibility studies for the few pollution reduction measures, and (ii) goods and works for the implementation of
4 those measures. Based on preliminary information, the two most likely interventions include an engineered wetland, and/or a small centralized wastewater treatment plant for a cluster of tanneries. The feasibility study will be done after the coastal zone management plan, developed in component (1), is in place. Component (3): Develop a monitoring and evaluation system (US$ 0.75). The output of this component is a monitoring and evaluation system for the project s indicators. Financing for this component will go to (i) consultancy work for developing an M&E evaluation scheme, and (ii) water monitoring equipment to assess the baseline conditions and the resulting conditions after project implementation. The determination of equipment type (e.g. stationary or portable), location, and parameters will take place during project preparation. Implementation Arrangements The Egyptian Environmental Affairs Agency (EEAA) will be the implementing agency for the project. The project complexity warrants a set of dedicated staff, with relevant experience, to manage it. However, due to the close synergy with EPAP 2, it is proposed to have the PMU for EPAP 2 upgraded and its staff increased, such that a subset of the PMU staff would manage the proposed project, while the other subset of the PMU manages EPAP 2. The supervision of both teams would be carried out by the PMU director. This will be beneficial since the EPAP 2 PMU is already very familiar with the Bank s procedures (e.g. financial management, procurement, and safeguards). 4. Safeguard policies that might apply The project will trigger the World Bank Environmental Assessment policy OP Targeted project investment activities will help in: (i) improvement of water quality in Lake Mariout, thereby reducing the pollution reaching the Mediterranean Sea; and (ii) improvement in management of protection/recovery of valuable coastal systems. The activities that will be carried out under the project will be systematically subjected to an environmental assessment. An Environmental and Social Impact Assessment Framework (ESIAF) will be developed prior to appraisal. The Alexandria Coastal Zone Management Project is bundled with the Egypt Pollution Abatement Project 2 (EPAP2) and seeking to provide synergy for EPAP2 and vice versa, in terms of ultimately reducing pollution (industrial) load to the Lake Mariout. Both projects are looking at interventions that help reduce pollution/emission input into Lake Mariout in Alexandria as one of the two hot spots considered. The "Use of Country Systems (OP 4.00)" was approved for EPAP2, with regards to OP 4.01 (environmental assessment). The applicability of UCS for the ACZM project will be evaluated. If UCS is applied, the ESIAF report will be prepared and disclosed before project appraisal. However, the Bank will not be required to review and clear the ESIAF report. Instead the Bank would delegate this role to the Egyptian Environmental Affairs Agency (EEAA), as the competent administrative authority in Egypt charged with clearance of such reports, in line with requirements of the UCS. The project also triggers OP 4.11 on Physical Cultural Resources. Appropriate measures will be included in the ESIAF report including Chance Finds Procedures Manual.
5 There is a possibility that the project will also trigger the Involuntary Resettlement policy OP 4.12 if the engineered wetlands investment is implemented. Accordingly, a Resettlement Policy Framework (RPF) will be prepared by the borrower. Both documents will be prepared and disclosed before project appraisal. 5. Tentative financing Source: ($m.) BORROWER/RECIPIENT 0 Global Environment Facility (GEF) 8 Total 8 6. Contact point Contact: Mr. Maged Mahmoud Hamed Title: Senior Environmental Specialist Tel: (202) Fax: (202) mhamed1@worldbank.org
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