Public Disclosure Copy The World Bank Implementation Status & Results Report Romania Integrated Nutrient Pollution Control Project (P093775) Romania Integrated Nutrient Pollution Control Project (P093775) EUROPE AND CENTRAL ASIA | Romania | Environment, Natural Resources & the Blue Economy Global Practice | IBRD/IDA | Investment Project Financing | FY 2008 | Seq No: 22 | ARCHIVED on 02-Dec-2019 | ISR39127 | Implementing Agencies: Ministry of Public Finance, Integrated Nutrient Pollution Control Project Management Unit Key Dates Key Project Dates Bank Approval Date: 30-Oct-2007 Effectiveness Date: 08-Dec-2008 Planned Mid Term Review Date: 29-Mar-2011 Actual Mid-Term Review Date: 31-Mar-2011 Original Closing Date: 31-Dec-2013 Revised Closing Date: 31-Mar-2022 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) To support the Government of Romania to meet the EU Nitrates Directive requirements by (a) reducing nutrient discharges to water bodies, (b) promoting behavioral change at the commune level, and (c) strengthening institutional and regulatory capacity. Has the Project Development Objective been changed since Board Approval of the Project Objective? Yes Board Approved Revised Project Development Objective (If project is formally restructured)HRPDODELs The development objective of the project is to support the Government of Romania towards meeting EU Nitrate Directive requirements at a national scale. Components Table Name Investments in Local Communities for Reducing Nutrient Pollution:(Cost $93.90 M) Institutional Strengthening and Capacity Building:(Cost $14.00 M) Public Awareness and Information Support:(Cost $7.52 M) Project management:(Cost $10.57 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO ►Moderately Satisfactory ►Moderately Satisfactory Overall Implementation Progress (IP) ►Satisfactory ►Satisfactory 12/2/2019 Page 1 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report Romania Integrated Nutrient Pollution Control Project (P093775) Overall Risk Rating ►Moderate ►Moderate Implementation Status and Key Decisions While most activities in the last Action Plan were achieved and the overall project implementation performance has been satisfactory during this period, only about 19% of the loan amount have been disbursed to date, with about two years and half before project closing. However, more than 44% of the loan is committed which is a good indication for expecting a significant increase of disbursement rate in the next 12 – 18 months, provided that project’s necessary budget allocations are ensured. The forecasted cumulative disbursement ratio to be reached by end CY19 (December 31, 2019) is expected to be 23 %, and about 31 % by the end of FY 2020, respectively. The MWF INPCP-PMU has finalized the preparation and implementation of activities under the Component 1, that supports most of the investments, and also most of project’s funds (about €36 million out of total €48 million). A total of 84 investments for local communities were finally selected and approved by the Ministry's Technical & Economical Commission and already 17 investments (communal manure storage and management platforms) in 17 communes have been contracted for execution. The PMU managed to totally commit and launch the implementation of other important activities under Components 2 and 3 in the context of an extended interest of Local Authorities for Project’s direct support for reducing the nutrient pollution. Setting up and developing Knowledge Transfer Networks (KTNs) under Component 2 proved significant progress during the period: the help desk facility is fully functional, 10 guidelines for training different types of farmers prepared, approved and printed, almost 170 Farmers Discussion Groups have been organized and about 3400 farmers already trained. The revision of Code for Good Agricultural Practices for water protection against pollution with nitrates from agricultural sources was drafted and approved by the Inter-ministerial Nitrates Committee and disclosed for public consultation until end-November 2019. The revised Code is fully compliant with the provisions of the EU Nitrates Directives and includes several new aspects compared with the previous edition, among the most important is the duration of the interdiction period for applying the fertilizers (included manure) is adapted to the climatic variations of mountain, hilly and plain regions of Romania and will provide differentiate specifications for each of these three agro-eco regions. The project was restructured to trigger a new safeguards policy – OP 4.04 Natural Habitats: Following the previous safeguards analysis and considering the environmental conditions and specific measures included in the permits issued by the local environmental protection authorities for each new investment (platforms for animal waste management), it was concluded that 9 out of 84 new investments have the proposed location in protected areas (Natura 2000 sites) established in Romania. As concluded by the environmental assessment carried out, the project is categorized as environmental Category B, and triggers now three safeguards policies: OP 4.01 – Environmental Assessment, OP 4.04 – Natural Habitats and OP 7.50 – Projects on International Waterways. Notwithstanding the significant achievements so far, budget availability has emerged as the most critical issue facing the project, and it is crucial to ensure for this project the necessary budget allocations as planned for the next years – mainly 2020 and 2021, when the construction works for the 84 investments should be completed. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- ►Substantial ►Substantial Macroeconomic -- ►Moderate ►Moderate Sector Strategies and Policies -- ►Moderate ►Moderate Technical Design of Project or Program -- ►Moderate ►Moderate Institutional Capacity for Implementation and Sustainability -- ►Moderate ►Moderate Fiduciary -- ►Substantial ►Substantial Environment and Social -- ►Low ►Low Stakeholders -- ►Moderate ►Moderate Other -- -- -- Overall -- ►Moderate ►Moderate 12/2/2019 Page 2 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report Romania Integrated Nutrient Pollution Control Project (P093775) Results PDO Indicators by Objectives / Outcomes The development objective of the project is to support the Government of Romania towards meeting EU IN00761292 ►Downward trend of nitrates concentration in waters: at least 70% of targeted project areas show 10% reduction in nitrates discharge to water bodies (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 58.7% 58.7% 70% Date 16-Feb-2007 01-Apr-2019 31-Oct-2019 31-Mar-2022 The water quality in the targeted NVZs is monitored by ANAR through 124 monitoring wells. In 2018, only 121 piezometers could be monitored. A number of four piezometers were clogged or completely destroyed. The monitoring data provided by ANAR relieve that there were no changes, as compared with 2017, as regards the number of the monitored Comments: wells that show nitrates (NO3) concentrations at least 10% lower as compared with the baseline values measured in 2009. The monitoring data for the year 2018 was provided by ANAR in the second quarter of 2019. IN00761293 ►Percentage of population in the project area adopting preventative and remedial measures to reduce nutrient discharges (index measures various rural waste management and good agricultural practices) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 3% 68.3% 68.3% 75% Date 26-Feb-2009 01-Apr-2019 31-Oct-2019 31-Mar-2022 This indicator was estimated by the Baseline Survey carried out in the period May – July 2018 as an index measuring various waste management and good agricultural practices. This survey, conducted on about 3750 households across 100 communes, showed that 68.3% of population, in the project area, apply at least one of the practices recommended by the Comments: Code of Good Agricultural Practice, as preventive and remedial measures to reduce nutrient discharges. An update of this indicator will be done in 2020, through the Mid-Term Survey. IN00761294 ►Improved inter-governmental coordination and capacity to assess, monitor and report on progress with implementation of the EU Nitrates Directive (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Improvements Improvements acknowledged acknowledged - Good - Good capacity of the capacity of the governmental institutions in governmental institutions TBD from gap analysis Improvements Value the assessment, monitoring in the assessment, report acknowledged and reporting regarding the monitoring and reporting implementation of the EU regarding the Nitrates Directive implementation of the EU Nitrates Directive Date 01-Feb-2008 01-Apr-2019 31-Oct-2019 31-Mar-2022 12/2/2019 Page 3 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report Romania Integrated Nutrient Pollution Control Project (P093775) The Inter-ministerial Committee (IC) for the Implementation of the Action Plan for the protection of waters against pollution caused by nitrates from agricultural sources is fully functional and meets on regular basis. The last meeting was Comments: held on September 16, 2019. IN00761295 ►Favorable EU assessment of Romania's progress towards meeting EU Nitrates Directive (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Progress acknowledged Value n.a. Progress acknowledged Progress acknowledged through EU comments on reports. Date 01-Feb-2008 01-Apr-2019 31-Oct-2019 31-Mar-2022 The report for the period 2012-2015 was submitted to the European Commission on July 8, 2016. In 2017, some notifications coming from EC generally targeted the electronic reporting (excel, xml) for water-related issues, concerning certain mismatches of monitoring section codes and inconsistent geographical coordinates between the sheets, which were not detected by the validation tool. Normally, the Commission should have developed a reporting tool to pinpoint these issues and not allow the closure of the reporting file until one addressed the mismatches. The Commission's Report to the Comments: Council and the European Parliament on the implementation of the Council Directive 91/676/EEC concerning the protection of waters against pollution caused by nitrates from agricultural sources based on Member State reports was disclosed in June 2018. Except the 8 days submission delay, the Report does not mention problems for Romania - no infringement case, nor EU Pilot investigation were opened for Romania. IN00761331 ►Nutrient load reduction (Nitrogen(N)) achieved under the project (Tones/year, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 459.92 459.92 600.00 Date 01-Feb-2008 01-Apr-2019 31-Oct-2019 31-Mar-2022 This indicator is updated on a yearly basis, and the last update was in January 2018. The nutrient load reduction estimated based on the data reported by the communes for the year 2018 was 459.92 t Nitrogen (N). In addition to Nitrogen (N), the Comments: Project resulted in 237.62 t Phosphorous (P2O5) and 412.76 t Potassium (K2O) reduction. The next update will be done in January 2020. Intermediate Results Indicators by Components Institutional Strengthening and Capacity Building IN00761333 ►Working groups at Water Basin and County levels functioning effectively and all staff working on the Nitrates Directive fully operational. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target WGs effective to support Ad-hoc implementation of WGs are functioning WGs are functioning EU reporting and to Value working groups effectively. effectively. coordinate actions of other agencies 12/2/2019 Page 4 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report Romania Integrated Nutrient Pollution Control Project (P093775) Date 16-Feb-2007 01-Apr-2019 31-Oct-2019 31-Mar-2022 IN00761337 ►Increased number of groundwater quality monitoring sites and sample analysis for the Nitrate Directive (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 7.50 7.50 7.50 8.00 Date 04-Nov-2015 01-Apr-2019 31-Oct-2019 31-Mar-2022 No new investment to increase the number of monitoring wells for groundwater quality was implemented during the Comments: period. This indicator is expressed as the number of monitoring sites per 1000 Km2 of monitored area. IN00761340 ►Number of technical staff (ANAR, EPA, Health Directorates) trained (cumulative) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 689.00 689.00 700.00 Date 26-Feb-2009 01-Apr-2019 31-Oct-2019 31-Mar-2022 The last training session was done in Q1, 2019 when 30 ANAR technical staff were trained on pesticides analysis using Comments: Gas-Chromatographs. IN00761341 ►Number of farmers trained by knowledge and training providers on Code of Good Agricultural Practices (male/female disaggregated) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 3,400.00 6,000.00 Date 04-Nov-2015 01-Apr-2019 31-Oct-2019 31-Mar-2022 This indicator shows first results of the Knowledge Training Networks (KTN) that were established and become Comments: functional in the second part of 2019. IN00761342 ►Number of female farmers trained by knowledge and training providers on Code of Good Agricultural Practices (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 774.00 3,000.00 Date 04-Nov-2015 01-Apr-2019 31-Oct-2019 31-Mar-2022 IN00761343 ►Reduction in number of farmers penalized by APIA for non-compliance with Nitrate Directive (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 50.00 3.25 3.25 30.00 Date 04-Nov-2015 01-Apr-2019 31-Oct-2019 31-Mar-2022 Comments: This is a new indicator. The baseline was established as the percentage of farmers penalized for non compliance with Nitrate Directive – Norms SMR4. However, starting with 2015, the Nitrate Directive is regulated by the Norms SMR1. The evolution of the percentage of farmers penalized for noncompliance with Nitrate Directive, Norms SMR1, out of the 12/2/2019 Page 5 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report Romania Integrated Nutrient Pollution Control Project (P093775) total number of farmers checked, was 11.61% for 2015, 9.69% for 2016 and 3.25% for 2017. A new update of the indicator, for the year 2018, will be carried-out by the end 2019. IN00761344 ►Land users adopting sustainable land mgt. practices as a result of the project (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 25,800.00 25,800.00 30,000.00 Date 01-Feb-2008 01-Apr-2019 31-Oct-2019 31-Mar-2022 Actual values represent the same estimation based on the previous completed and functioning investments (86 platforms for Comments: manure management). No new platform completed and operational during the period. IN00761345 ►Number of project communes implementing at least one of the following nutrient reduction measures: communal platforms, pasture rehabilitation, tree planting (cumulative) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 115.00 115.00 200.00 Date 26-Feb-2009 01-Apr-2019 31-Oct-2019 31-May-2022 Presently there are 115 communes implementing the different practices and measures for nutrients reduction. a) 50 NVZ communes implementing only manure management practices b) 12 NVZ communes implementing manure management, pastures rehabilitation and tree planting Comments: c) 19 NVZ communes implementing manure management and tree planting d) 34 NVZ communes implementing tree planting. IN00761346 ►Land area where sustainable land mgt. practices were adopted as a result of proj (Hectare(Ha), Corporate) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 21,316.00 21,316.00 38,000.00 Date 01-Feb-2008 01-Apr-2019 31-Oct-2019 31-Mar-2022 This indicator was updated in January 2018, based on the communes’ reports. Will be recalculated when the new platforms Comments: will be finalized. Investments in Local Communities for Reducing Nutrient Pollution IN00761332 ►Percentage of cropped area in the project communes under relevant nutrient reduction measures. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 9% (updated from baseline Value 60.5% 60.5% 60% survey) Date 26-Feb-2009 01-Apr-2019 31-Oct-2019 31-May-2022 Updated from the Additional Financing Baseline Survey conducted between April-July 2018. The survey showed that Comments: 60.5% of the surveyed farms’ cultivated area in the Project localities is under relevant nutrient reduction measures. An update of this indicator will be done in 2020, through the Mid-Term Survey. 12/2/2019 Page 6 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report Romania Integrated Nutrient Pollution Control Project (P093775) IN00761336 ►Number of communal platforms completed (cumulative) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 86.00 86.00 150.00 Date 26-Feb-2009 01-Apr-2019 31-Oct-2019 31-Mar-2022 There are 86 platforms for animal waste management and storage already completed in 81 communes under the original loan. New investments in platforms and composting stations for animal waste management are under preparation. 8 Comments: platforms, out of the first lot of 12 investments are currently in the construction phase. IN00761339 ►Percentage of households with access and connection to sewage system (in targeted villages receiving sewage investments) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 50.5% 63.98% 60% Date 16-Feb-2007 01-Apr-2019 31-Oct-2019 31-Mar-2022 Estimated as the average of the connection percentages for each of the completed sewage systems, as reported by beneficiaries. Availability of the sewerage network in front of the properties allows for more and more households to opt for Comments: building toilets and bathrooms, and thus there is an upward trend as regards the number of connections. Project management IN00761335 ►Number of surveys conducted that collect feedback and report back the results to the communities (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1.00 1.00 3.00 Date 04-Nov-2015 01-Apr-2019 31-Oct-2019 31-Mar-2022 The first out of three surveys planned during the Project life (Baseline Survey), was conducted between April-July 2018, to collect the initial data on Project area. A number of 3753 households were interviewed in total as follows: (i) 3002 households in 100 communes – main sample (30 households interviewed in each) selected out of the total number of communes that submitted Concept Notes under the First Call for proposals and taking into account that the overall sample be representative for the national rural area, within a maximum margin error of +/- 2% at a 95% level of confidence and simultaneously have a representativeness of +/-3.5% for a confidence level of 95% at the region level sub-samples (three Comments: major regions considered, Moldova, Muntenia and Transilvania) should be met, and (ii) 751 households in 30 communes – control sample (25 households interviewed in each) selected as control group based on the criteria such as the distance from the communes included in the main sample, the size of the communes in terms of inhabitants and the geographic particularities with the ultimate goal of obtaining similarity with the communes targeted by the Project. The next survey is planned for 2020. Public Awareness and Information Support IN00761334 12/2/2019 Page 7 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report Romania Integrated Nutrient Pollution Control Project (P093775) ►Number of meetings/public consultations/workshops organized towards meeting project objectives (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 155.00 155.00 100.00 Date 04-Nov-2015 01-Apr-2019 31-Oct-2019 31-Mar-2022 Five regional public consultations were held between April and October, in Buzau, Cluj, Tg. Mures, Slatina and Pitesti towns. Comments: The previous correct value is 150 public consultations (instead of 155 which was wrongly included in the previous ISR). IN00761338 ►Percentage of questions, comments or complaints relevant to the project that are received and addressed within indicated 30 days (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 100.00 100.00 100.00 Date 04-Nov-2015 01-Apr-2019 31-Oct-2019 31-Mar-2022 During 2019, a complaint was received from one person involved in the construction works regarding the quality of construction works for the sewerage investment Targsoru Vechi, Prahova county. The PMU checked the reality of the Comments: raised issue and a response with the check findings was given to the complainant within the indicated period of 30 days. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P093775 IBRD-48730 Closed USD 68.10 65.84 2.26 60.30 0.00 100% P093775 IBRD-85970 Effective USD 52.39 52.39 0.00 10.46 42.47 20% P099528 TF-58040 Closed USD 5.50 5.47 0.03 5.47 0.00 100% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P093775 IBRD-48730 Closed 30-Oct-2007 28-Dec-2007 08-Dec-2008 31-Dec-2013 31-May-2017 P093775 IBRD-85970 Effective 28-Mar-2016 14-Apr-2016 13-Apr-2017 31-Mar-2022 31-Mar-2022 P099528 TF-58040 Closed 28-Dec-2007 28-Dec-2007 08-Dec-2008 31-Dec-2013 31-May-2017 12/2/2019 Page 8 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report Romania Integrated Nutrient Pollution Control Project (P093775) Cumulative Disbursements Restructuring History Level Approved on 13-Jul-2012 ,Level 2 Approved on 05-Aug-2013 ,Level 2 Approved on 08-Sep-2015 ,Level 2 Approved on 03-Nov-2016 ,Level 2 Approved on 15- Oct-2019 Related Project(s) P099528-GEF Romania Integrated Nutrient Pollution Control Project ,P155594-Integrated Nutrient Pollution Control Project - Additional Financing 12/2/2019 Page 9 of 9