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 Global Practice | IBRD/IDA | Investment Project Financing | FY 2008 | Seq No: 21 | ARCHIVED on 29-Apr-2019 | ISR36595 | 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 Overall Risk Rating Moderate Moderate Implementation Status and Key Decisions 4/29/2019 Page 1 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report Romania Integrated Nutrient Pollution Control Project (P093775) A good progress was registered since the last visit in November 2018, with most of the activities in the agreed Project’s Action Plan, including the additional staffing of the PMU, achieved. The INPCP-PMU has advanced the preparation and implementation of activities under the Component 1, that supports most of the investments, and also most of project’s funds (about €35 million out of total €48 million). A first batch of 9 investments (manure storage platforms and one composting station) in 8 communes was already launched for being contracted by mid-June 2019, and the works completion is planned for the end of 2019. However, without additional budget allocation through budget rectification, these activities will not be paid in full. A second batch of 4 investments (communal platforms) in 4 communes, was launched in March 2019, and by end July 2019 the works contracts will be signed. The works completion for these investments is also estimated for the end of 2019, but with the same condition as mentioned above for the final payments. In addition, the acquisition of the related equipment for these 12 new communal platforms was contracted and will be delivered to the final beneficiaries during this year. Other 22 new investments (communal platforms) are in the final stage of detailed design preparation, and the PMU will launch the works procurement process in August, with the estimated works contracts signature by end December 2019. This will make possible the starting of the physical implementation for all 22 investments in early March 2020, when the construction season starts. Similarly, the purchasing of equipment related to these 22 new investments will be contracted by end 2019 and delivered to the final beneficiaries during 2020. The remaining 52 investments from the approved final list will complete the preparation (feasibility study, detailed design, approvals and permits) by the first half of next year, and their physical implementation will be split in about three batches during 2020 and 2021.The PMU managed also the launching and 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. The loan’s disbursement rate continued to pick up compared with the last year and has reached almost 14%. The forecasted cumulative disbursement ratio to be reached by end FY19 (June 30, 2019) is expected to be 17.7 %, and about 23 % by the end of CY 2019, respectively. The Bank remains concerned with the lower than envisaged budget allocation for 2019 which is not commensurate with the pipeline of new investments for local communities, basically shifting most of the Project’s implementation (62-65 %) to the last two construction seasons 2020 and 2021. This means that almost triple budget allocation (RON 65-70 million/€ 13.5-14.5 million) will be required for the following two years and significant increased efforts and work volume for the PMU’s staff to achieve the Project’s objectives by the closing date. 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 -- Moderate Substantial Environment and Social -- Low Low Stakeholders -- Moderate Moderate Other -- -- -- Overall -- Moderate Moderate Results 4/29/2019 Page 2 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report Romania Integrated Nutrient Pollution Control Project (P093775) PDO Indicators by Objectives / Outcomes The development objective of the project is to support the Government of Romania towards meeting EU IN00689325 ►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% 70% Date 16-Feb-2007 15-Nov-2018 01-Apr-2019 31-Mar-2022 The water quality in the targeted NVZs is monitored by ANAR through 122 monitoring wells. In 2017, only 121 piezometers could be monitored. The monitoring data provided by ANAR relieve that in 2017, a number of 71 of the monitored wells show nitrates (NO3) concentrations at least 10% lower as compared Comments: with the baseline values measured in 2009. The monitoring data for the year 2018 will be provided by ANAR in the second quarter of 2019. IN00689336 ►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% 75% Date 26-Feb-2009 15-Nov-2018 01-Apr-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 Comments: least one of the practices recommended by the Code of Good Agricultural Practice, as preventive and remedial measures to reduce nutrient discharges. IN00689337 ►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 acknowledged - Good capacity of the governmental TBD from gap analysis institutions in the Improvements Value -- report assessment, acknowledged monitoring and reporting regarding the implementation of the EU Nitrates Directive Date 01-Feb-2008 15-Nov-2018 01-Apr-2019 31-Mar-2022 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 Comments: basis. The last meeting was held on February 28, 2019. IN00689338 ►Favorable EU assessment of Romania's progress towards meeting EU Nitrates Directive (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Progress Progress Value n.a. -- acknowledged acknowledged through 4/29/2019 Page 3 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report Romania Integrated Nutrient Pollution Control Project (P093775) EU comments on reports. Date 01-Feb-2008 15-Nov-2018 01-Apr-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 Comments: the reporting file until one addressed the mismatches. The Commission's Report to the 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. IN00689339 ►Nutrient load reduction (Nitrogen(N)) achieved under the project (Tones/year, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 446.51 459.92 600.00 Date 01-Feb-2008 15-Nov-2018 01-Apr-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 Comments: Nitrogen (N). In addition to Nitrogen (N), the Project resulted in 237.62 t Phosphorous (P2O5) and 412.76 t Potassium (K2O) reduction. Intermediate Results Indicators by Components Institutional Strengthening and Capacity Building IN00689341 ►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 EU reporting Ad-hoc implementation WGs are functioning Value -- and to coordinate of working groups effectively. actions of other agencies Date 16-Feb-2007 15-Nov-2018 01-Apr-2019 31-Mar-2022 IN00689345 ►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 15-Nov-2018 01-Apr-2019 31-Mar-2022 No new investment to increase the number of monitoring wells for groundwater quality was implemented during the period. This indicator is expressed as the number of monitoring sites per 1000 Km2 of Comments: monitored area. IN00689348 4/29/2019 Page 4 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report Romania Integrated Nutrient Pollution Control Project (P093775) ►Number of technical staff (ANAR, EPA, Health Directorates) trained (cumulative) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 689.00 700.00 Date 26-Feb-2009 15-Nov-2018 01-Apr-2019 31-Mar-2022 30 ANAR technical staff trained on pesticides analysis using Gas-Chromatographs. Comments: IN00689349 ►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 0.00 6,000.00 Date 04-Nov-2015 15-Nov-2018 01-Apr-2019 31-Mar-2022 This indicator will show first results after the updating (mid-2019) of the code of Good Agricultural Practices, and when the Knowledge Training Networks (KTN) that will provide training to the farmers will Comments: be established and become functional (second part of 2019). IN00689350 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 0.00 3,000.00 Date 04-Nov-2015 15-Nov-2018 01-Apr-2019 31-Mar-2022 IN00689351 ►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 50.00 3.25 30.00 Date 04-Nov-2015 15-Nov-2018 01-Apr-2019 31-Mar-2022 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 Comments: with Nitrate Directive, Norms SMR1, out of the 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 year 2018, will be made in May- June, 2019. IN00689352 ►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 15-Nov-2018 01-Apr-2019 31-Mar-2022 Actual values represent the same estimation based on the previous completed and functioning investments (86 platforms for manure management). No new platform completed and operational during Comments: the period. IN00689353 4/29/2019 Page 5 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report Romania Integrated Nutrient Pollution Control Project (P093775) ►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 -- 115.00 200.00 Date 26-Feb-2009 15-Nov-2018 01-Apr-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 Comments: b) 12 NVZ communes implementing manure management, pastures rehabilitation and tree planting c) 19 NVZ communes implementing manure management and tree planting d) 34 NVZ communes implementing tree planting. IN00689354 ►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 15-Nov-2018 01-Apr-2019 31-Mar-2022 This indicator was updated in January 2018, based on the communes’ reports; next update will be in 2019. Comments: To be determined when the new platforms will be finalized. Investments in Local Communities for Reducing Nutrient Pollution IN00689340 ►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 Value -- 60.5% 60% baseline survey) Date 26-Feb-2009 15-Nov-2018 01-Apr-2019 31-May-2022 Updated from the Additional Financing Baseline Survey conducted between April-July 2018. The survey showed that 60.5% of the surveyed farms’ cultivated area in the Project localities is under relevant nutrient Comments: reduction measures. IN00689344 ►Number of communal platforms completed (cumulative) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 86.00 150.00 Date 26-Feb-2009 15-Nov-2018 01-Apr-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 Comments: management are under preparation. The first lot of 12 new platforms will start implementation in 2019. IN00689347 ►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 4/29/2019 Page 6 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report Romania Integrated Nutrient Pollution Control Project (P093775) Value 0.00 -- 50.5% 60% Date 16-Feb-2007 15-Nov-2018 01-Apr-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 Comments: and more households to opt for building toilets and bathrooms, and thus there is an upward trend as regards the number of connections. Project management IN00689343 ►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 15-Nov-2018 01-Apr-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 Comments: representativeness of +/-3.5% for a confidence level of 95% at the region level sub-samples (three 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. Public Awareness and Information Support IN00689342 ►Number of meetings/public consultations/workshops organized towards meeting project objectives (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 150.00 155.00 100.00 Date 04-Nov-2015 15-Nov-2018 01-Apr-2019 31-Mar-2022 All 96 selected communes for financing the proposed investments for nutrients pollution reduction (under the project's Component 1) have organized public consultation regarding the necessity and opportunity to Comments: implement and co-finance local investments . IN00689346 ►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 15-Nov-2018 01-Apr-2019 31-Mar-2022 During year 2018, a number of 67 appeals were received during the Concept Notes evaluation, under the Comments: project's Component 1. All 67 appeals were addressed and the responses were published on the Project’s website within the indicated period of 30 days. 4/29/2019 Page 7 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report Romania Integrated Nutrient Pollution Control Project (P093775) 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 7.28 45.57 14% 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 Cumulative Disbursements 4/29/2019 Page 8 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report Romania Integrated Nutrient Pollution Control Project (P093775) 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 Related Project(s) P099528-GEF Romania Integrated Nutrient Pollution Control Project ,P155594-Integrated Nutrient Pollution Control Project - Additional Financing 4/29/2019 Page 9 of 9