Document ofThe World Bank

FOR OFFICIAL USE ONLY

Report No: -MNA

TECHNICAL ANNEX 2

ON A

PROPOSED GRANT FROM THE

GLOBAL ENVIRONMENT FACILITY TRUST FUND

IN THE AMOUNT OF US$4.0 MILLION

TO THE KINGDOM OF MOROCCO

IN SUPPORT OF THE FIRST PHASE OF

THE US$21.7 MILLION AFRICA STOCKPILES PROGRAMME – PROJECT 1

October 4, 2006

Africa Stockpile Programme TeamAfrica RegionMiddle East and North Africa Region

This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.

CURRENCY EQUIVALENTSMoroccan Dirhams 8.89 = US$1.00 (April 28, 2006)

FISCAL YEARJanuary 1 - December 31

ABBREVIATIONS AND ACRONYMS

AFR Africa RegionAPL Adaptable Program LoanASP Africa Stockpiles ProgrammeASP-P1 Africa Stockpiles Programme - Project 1ASP-PCU Africa Stockpiles Programme - Project Coordination UnitASP-SC Africa Stockpiles Programme Steering CommitteeCAS Country Assistance StrategyCCAME Cross-Cutting Activities Management EntityCESA Country Project-specific Environment and Social AssessmentCFAA Country Financial Accountability AssessmentCIDA Canadian International Development AgencyCILSS Comité Permanent Inter-Etat de Lutte contre la Sécheresse (Permanent

Inter State Committee for Drought Control)CLI Crop Life InternationalCPD Crop Protection DepartmentDANIDA Danish International Development AgencyDDT Dichloro-Diphenyl-TrichloroethaneDGF Development Grant FacilityDGIS Directorate General for International CooperationDPVCTRF Direction de la Protection des Végétaux, des Contrôles Techniques et de

la Répression des Fraudes (Government of the Kingdom of Morocco – Department of Plant Protection, Technical Control and Fraud Repression)

DSPR Direction de la Surveillance et de la Prévention des Risques (Government of the Kingdom of Morocco – Department of Risk Prevention and Monitoring)

EA Environmental AssessmentEMP Environmental Management PlanEPA Environmental Protection AgencyEU European UnionFAAO Financial and Administrative Assistant OfficerFAO Food and Agriculture OrganizationFFEM French Facility for Global EnvironmentFM Financial ManagementFMR Financial Management ReportFMS Financial Management SpecialistGAAP Generally Accepted Accounting Principles GEF Global Environment Facility

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GEFSEC Secretariat of the Global Environment FacilityGEO Global Environmental ObjectiveGTZ Gesellschaft für Technische Zusammenarbeit (German Aid Agency)ICB International Competitive BiddingIDA International Development AgencyIOMC Inter-Organization Programme for the Sound Management of ChemicalsIPCS International Programme on Chemical SafetyIPM Integrated Pest ManagementISDS Integrated Safeguards Data SheetIVM Integrated Vector ManagementMADRPM Ministère de l’Agriculture, du Développement Rural et des Pêches

Maritimes (Ministry of Agriculture, Rural Development and Fisheries)MATEE Ministère de l’Aménagement du Territoire, de l’Eau et de

l’Environnement (Moroccan Ministry of Land Management, Water and Environment)

MDTF Multi-Donor Trust FundMFMTA Municipal Financial Management Technical Assistance ProjectMNA Middle East and North Africa RegionMNSRE Water, Environment, Social and Rural Development Department MOE Ministry of EnvironmentM&E Monitoring and EvaluationNEPAD New Partnership for Africa’s DevelopmentNGOs Non-Governmental OrganizationsNIP National Implementation PlanOECD Organization for Economic Cooperation and DevelopmentOED Operations Evaluation DepartmentOM Operational ManualOP Operational ProgramPAD Project Appraisal DocumentPAN-Africa Pesticides Action Network - AfricaPAN-UK Pesticides Action Network - United KingdomPDO Project Development ObjectivePIC Prior Informed Consent PMP Pest Management PlanPMU Project Management UnitPOPs Persistent Organic PollutantsRAP Resettlement Action PlanSA Special AccountSBC Secretariat of the Basel ConventionSC Steering CommitteeSOE Statements of ExpenditureSTAP Scientific and Technical Advisory PanelTA Technical AssistanceTF Trust FundTORs Terms of ReferencesTSU Technical Support Unit

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TTL Task Team LeaderUN United NationsUNDB United Nations Development BusinessUNEP United Nations Environment ProgrammeUNIDO United Nations Industrial Development OrganizationUSAID United States Agency for International DevelopmentWHO World Health OrganizationWWF World Wildlife Fund

Vice Presidents: Daniela Gressani (MNA)Gobind T. Nankani (AFR)

Country Director: Theodore O. Ahlers (MNA)Sector Director: Inger Andersen (MNA)

Michel Wormser (AFTSD)Sector Manager: Vijay Jagannathan (MNA)

Task Team Leaders: Peter Kristensen (AFTS4)/Denis Jordy (AFTS4)

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AFRICA REGIONMIDDLE EAST AND NORTH AFRICA REGION

AFRICA STOCKPILES PROGRAMME – PROJECT 1KINGDOM OF MOROCCO

CONTENTS

Page

A. STRATEGIC CONTEXT AND RATIONALE......................................................................11. Country and Sector Issues...................................................................................................12. Rationale for Bank Involvement..........................................................................................23. Higher Level Objectives to Which the Project Contributes................................................3

B. PROJECT DESCRIPTION.....................................................................................................41. Financing Instrument...........................................................................................................42. Project Development Objective and Key Indicators...........................................................43. Project Components.............................................................................................................64. Lessons Learned and Reflected in the Project Design.........................................................85. Alternatives Considered and Reasons for Rejection.........................................................10

C. IMPLEMENTATION............................................................................................................101. Institutional and Implementation Arrangements...............................................................102. Financing Partners.............................................................................................................123. Monitoring and Evaluation of Outcomes/Results..............................................................124. Sustainability and Replicability.........................................................................................135. Critical Risks and Possible Controversial Aspects............................................................136. Loan/Credit Conditions and Covenants.............................................................................167. Conditions for Disbursement for Disposal........................................................................16

D. APPRAISAL SUMMARY....................................................................................................171. Economic and Financial Analyses.....................................................................................172. Technical............................................................................................................................173. Fiduciary............................................................................................................................184. Social.................................................................................................................................195. Environment......................................................................................................................196. Safeguard Policies.............................................................................................................207. Policy Exceptions and Readiness......................................................................................21

ANNEXES.....................................................................................................................................22Annex 1: Africa Stockpiles Programme Background..................................................................22Annex 2: Major Related Projects Financed by the Bank and/or Other Agencies........................27Annex 3: Results Framework and Monitoring.............................................................................31Annex 4: Detailed Project Description.........................................................................................37Annex 5: Project Costs.................................................................................................................44Annex 6: Implementation Arrangements......................................................................................45Annex 7: Financial Management and Disbursement Arrangements............................................52Annex 8: Procurement..................................................................................................................57

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Annex 9: Incremental Cost Analysis for Overall ASP-P1............................................................66Annex 10: Safeguard Policy Issues..............................................................................................77Annex 11: Project Preparation and Supervision...........................................................................80Annex 12: Documents in the Project File.....................................................................................82Annex 13: Statement of Loans and Credits...................................................................................84Annex 14: Country at a Glance.....................................................................................................85Maps IBRD 34040 and 33113R....................................................................................................87

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AFRICA STOCKPILES PROGRAMME - PROJECT 1 – MOROCCO PROJECT

PROJECT APPRAISAL DOCUMENT

AFRICA REGIONMIDDLE EAST AND NORTH AFRICA

ASP TEAM

Date: October 4, 2006Country Director: Theodore O. Ahlers (MNA), Mark Tomlinson (CD16)Sector Director: Inger Andersen (MNA), Michel Wormser (AFTSD)Sector Manager: Vijay Jagannathan (MNA), Mary Barton-Dock (AFTS4)Project ID: P103189GEF Focal Area: Persistent Organic Pollutants

(POPs)

Team Leaders: Peter Kristensen (AFTS4) Denis Jordy (AFTS4)Sector(s): Sanitation, Health, General Agriculture

(100%)Theme(s): Pollution Management, Environmental

PolicyEnvironmental Screening Category: A

Project Financing Data:[ ] Loan [ ] Credit [X] Grant [ ] Guarantee [ ] Other:For Loans/Credits/Others:Amount (US$m): 4.0

Financing Plan (US$m)Source Local Foreign Total

GEF (through the World Bank)Recipient

0.501.25

3.500.73

4.001.98

Total 5.98

Recipient:Kingdom of Morocco

Responsible Agency:Ministère de l’Agriculture, du Développement Rural et des Pêches MaritimesDirection de la Protection des Végétaux des Contrôles Techniques et de la Répression des Fraudes (DPVCTRF)M. Abderrahmane Hilali - Directeur, DPVCTRFAddress: DPVCTRF Rabat, Royaume du MarocTel: (212) 37 23 14 Fax: (212) 37 29 75 44 Email: Ahilali@MENARA.MA

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Estimated Disbursements (Bank FY/US$m)FY 2007 2008 2009 2010 Total

Annual 1.4 0.8 1.5 0.3 4.0Cumulative 1.4 2.2 3.7 4.0

Project implementation period: 4 YearsExpected effectiveness date: February 12, 2007 Expected closing date: June 30, 2010Does the project depart from the CAS in content or other significant respects? Ref. PAD A.3

○ Yes X No

Does the project require any exceptions from Bank policies? Ref. PAD D.7Have these been approved by Bank management?Is approval for any policy exception sought from the Board?

○ Yes X No○ Yes X No○ Yes X No

Does the project include any critical risks rated “substantial” or “high”?

Ref. PAD C.5

X Yes ○ No

Does the project meet the Regional criteria for readiness for implementation? Ref. PAD D.7

X Yes ○ No

Global Environmental Objective (GEO): Ref. PAD B.2, Technical Annex 3

Reduction of the effects of Persistent Organic Pollutants (POPs) on the Global Environment.Project development objective: Ref. PAD B.2, Technical Annex 3

ASP-P1: Selected African countries to eliminate inventoried publicly-held obsolete pesticide stockpiles and associated waste, and to implement measures to reduce and prevent future related risks.

Kingdom of Morocco: Assist the Kingdom of Morocco to eliminate inventoried publicly-held-obsolete pesticide stockpiles and associated waste, and implement measures to reduce and prevent future related risks.

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Project description [one-sentence summary of each component] Ref. PAD B.3.a, Technical Annex 4

The proposed Project is part of the World Bank’s multi-country Africa Stockpiles Programme (ASP-P1), which has been approved by GEF on August 19, 2005 and by the World Bank Board on September 8, 2005.

The overall ASP-P1 includes:(a) country operations (ASP-P1 Component 1); (b) technical support to country projects (ASP-P1 Component 2);(c) cross-cutting activities in communication and knowledge management (ASP-P1

Component 3);(d) program coordination (ASP-P1 Component 4).

The Kingdom of Morocco project fits into Component 1 of the overall ASP-P1, and will support:

(a) disposal of obsolete pesticides and associated waste;(b) prevention obsolete pesticides accumulation;(c) capacity building; and(d) project management and coordination.

Which safeguard policies are triggered, if any? Ref. PAD D.6, Technical Annex 10

Environmental Assessment (OP 4.1) and Pest Management (OP 4.09) apply to ASP-P1 which has been designated a Category “A” Project.

Significant, non-standard conditions, if any, for:Ref. PAD C.7Board presentation: None

Covenants applicable to project implementation: Explicit release of Bank from liability for project activities in the event of accident or other event causing harm or injury.

Conditions for disbursement for disposal (a) Complete a Country Project-specific Environment and Social Assessment (CESA),

including an Environmental Management Plan (EMP) to the satisfaction of the Bank.

Loan/credit effectiveness: None.

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A. STRATEGIC CONTEXT AND RATIONALE

1. Country and Sector Issues

1. Over the past forty years, many countries of the continent of Africa have accumulated large quantities of pesticides which have now become unfit for use or reformulation and are, therefore, obsolete. Although these chemicals are no longer effective for controlling pests, they remain potent chemical toxins and thus still need to be carefully stored and handled. The unwanted buildup of such products has occurred due to inadequate stock management, non-distribution to farmers, bans on several pesticides, un-coordinated or inappropriate supply from donor agencies, unsuitable packaging and supplier incentive programs. The amount of publicly-held-obsolete pesticides1 currently stockpiled across the continent of Africa2, is estimated at 50,000 tons. These stocks will continue to present a threat to the environment until they are safely removed and destroyed.

2. Most of the countries in Africa including the Kingdom of Morocco lack adequate technical, institutional and financial capacity to develop the policy and regulatory conditions necessary to properly manage the cleanup of contaminated wastes/sites, together with the destruction of obsolete stocks of pesticides. They also lack the capacity and means to implement sound prevention practices.

3. The Africa Stockpiles Programme – Project 1 (ASP-P1) follows the programmatic approach of a horizontal Adaptable Program Loan (APL)3. The Global Environment Facility (GEF) endorsed the ASP-P1 on August 19, 2005. The Bank Board Approved the ASP-P1 was on September 8, 2005 for the first two Country Projects in the Programme, South Africa and Tunisia. Other “follow-on” projects (Tanzania, Mali, Morocco, and later Ethiopia) of the APL will be circulated to the GEF Secretariat for approval on a no-objection basis, and to the Board, 10 days before Regional Management final approval of each grant4.

4. The Kingdom of Morocco has been selected to benefit from the support of the ASP-P1 because it meets the following agreed readiness criteria: (a) ratification of the Stockholm and Basel Convention; (b) the Kingdom of Morocco is a priority country in terms of readiness to address the danger of obsolete pesticides; (c) the Kingdom of Morocco has established a Project Management Unit and completed an Operational Manual to implement the project; and (d) project financing has been secured from the GEF.

1 “Obsolete Pesticides” means products: (a) whose usage is prohibited or severely restricted for environmental or health reasons; by applicable provisions of the Basel Convention, the Stockholm Convention and the Rotterdam Convention, (the Conventions) and/or national law consistent with the Conventions (please see Footnote 9 for full titles of the Conventions); or (b) that have deteriorated as a result of improper or prolonged storage and can neither be used in accordance with label specifications nor easily reformulated for use; or (c) that cannot be used for their intended purpose, and cannot be easily modified to accomplish such purpose or some other purpose. 2 “Africa”, for the purpose of this document, is defined as the continent of Africa.3 ASP-P1 follows the model of the Multi-country HIV/AIDS Program for the Africa Region (MAP) and the Multi-country Statistical Capacity Building Program.4 In accordance with the usual APL procedures, approval of the remaining Country Projects would be provided at the Regional Vice President level in the absence of a request by at least three Executive Directors to have normal Board presentation.

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5. The ASP-P1 will support the Government of the Kingdom of Morocco’s commitments to meeting the objectives of the Stockholm convention for eliminating persistent organic pollutants. The Project directly contributes to enhancing social and environmental sustainability and will contribute to safeguarding natural resources, including land and water conservation and reduce risks to human health. The Government of the Kingdom of Morocco has already initiated preparatory activities under the National Implementation Plan (NIP) being conducted by United Nations Development Programme (UNDP). The preliminary inventory, conducted in preparation for the ASP-P1, identified 700 tons of obsolete stocks at approximately 225 sites. These stockpiles have accumulated largely for combating locust infestations, but have become obsolete since they were not used.

2. Rationale for Bank Involvement

6. The Bank, as GEF Implementing Agent, will support the ASP-P1 according to its comparative advantage. The rationale for Bank involvement, described in greater detail in Annex 2 is threefold:

(a) The Bank as a GEF Implementing Agency has the responsibility to implement activities that will contribute to the achievement of GEF operational programs. By implementing ASP-P1, together with the FAO, the Bank will support the first, large scale, GEF-funded activity that aims to achieve the objectives of the GEF Operational Program 14 (GEF OP14) for Reducing and Eliminating Releases of POPs, and support the role of GEF as the interim financing mechanism for the Stockholm Convention on POPs.

(b) The Bank has a significant global experience in managing trust funds that mobilize the resources of several donors for a shared purpose. Such an experience is key to managing the Multi-Donor Trust Fund (MDTF) for ASP-P1 – in combination with funding from the GEF, Development Grant Facility (DGF), other trust funds, and bilateral donations.

(c) The Bank has a substantial and unique expertise in managing complex, multi-country and regional programs. It has also developed considerable experience in facilitating the dialogue between Governments, NGOs and the private sector. In Africa, this experience derives from implementing such complex operations as the River Blindness Program, the Multi-Country HIV/AIDS Program, the Nile Basin Initiative, and the Greater Great Lakes Regional Strategy for Demobilization and Reintegration.

7. Bank support to ASP-P1 is fully consistent with the implementation of the Bank’s Environment Strategy, the key pillars of that strategy being to improve people’s quality of life, quality of economic growth and quality of regional and global commons. One of the key objectives in “improving people’s quality of life” is protecting environmental health, which is reflected in ASP-P1’s approach.3. Higher Level Objectives to Which the Project Contributes

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8. ASP-P1 will contribute to national and global level objectives described in more detail in Annex 1. At the national level, ASP-P1 will contribute to the Kingdom of Morocco national development strategy (especially in agriculture and rural development) in the areas of public health, poverty alleviation, environmental protection and strengthening of the agricultural sector. ASP-P1 will directly contribute to the GEO: Reduction of effects of POPs on the global environment. Specifically, ASP-P1 will address:

(a) improving the quality of life in the poor communities, by reducing environmental health risks;

(b) improving environmental protection; and

(c) enhancing the capacity of the agricultural sector to better manage crop pests.

9. ASP-P1 will also consolidate various approaches to obsolete pesticide cleanup, generate practical lessons from working in countries under different governance models and produce practical tools that will facilitate its replication in other countries and regions.

10. At the global level, ASP-P1 will contribute to the international efforts to eliminate persistent organic pollutants, improve management of toxic chemicals and promote alternatives to pesticide usage that include IPM and Integrated Vector Management (IVM). ASP-P1 activities related to obsolete pesticide disposal will be a direct implementation of the Stockholm Convention on POPs and the associated GEF Operational Program aiming to reduce the impact of POPs on the global food chain, pollution of transboundary waters, land and biodiversity. It will also contribute to the achievement of the objectives of other international agreements such as the Basel, Bamako, Rotterdam and Biological Diversity Conventions.5

11. The ASP-P1 capacity building for pesticide management and disposal will enhance the overall capacity of Morocco for managing other toxic chemicals and hazardous waste in general. Significantly, ASP-P1 will promote the global trend toward Integrated Pest Management (IPM) and utilization of alternative pest control technologies. It will also contribute to the needed awareness of the detrimental impacts that POPs and obsolete chemicals can have on the environment in developing countries and the global environment, and generate a body of globally shared knowledge on effective and economically viable approaches to pesticide management and disposal.

B. PROJECT DESCRIPTION

1. Financing Instrument

5 The full titles of the Conventions to which ASP-P1 objectives contribute are as follows: Stockholm Convention on Persistent Organic Pollutants (2001); Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal (1989); Bamako Convention on the Ban of the Import into Africa and the Control of Transboundary Movement and Management of Hazardous Wastes within Africa (1991); Rotterdam Convention on the Prior Informed Consent Procedures for Certain Hazardous Chemicals and Pesticides in International Trade (1998); and Convention on Biological Diversity (1992).

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12. There is an immediate and urgent need to implement a program to dispose of obsolete pesticide stockpiles and associated waste from Africa and to prevent their re-occurrence. As the PAD for ASP-P1 describes, the ASP will be implemented through a series of individual projects within a 10-15 year programmatic approach, beginning with a four year project, called ASP-P1. This PAD describes the ASP-P1 Morocco Project.

13. The primary ASP-P1 financing instrument is a GEF grant of US$25.0 million which will be splited between two principal implementing agencies: Bank (US$21.74 million) and FAO (US$3.26 million) towards a total Project cost of US$60 million to seven countries over a period of four years. In addition, funds are being mobilized through a MDTF, other trust funds, and bilateral support

14. The ASP follows the programmatic approach of a horizontal Adaptable Program Loan (APL)6. ASP-P1 considers seven countries. South Africa and Tunisia projects have been approved by the Board in September 2005.

2. Project Development Objective and Key Indicators

15. The Development Objective of the ASP-P1 Morocco Project supports the overall ASP-P1 objective which is to eliminate inventoried publicly-held-obsolete pesticide stockpiles and associated waste, and implement measures to reduce and prevent future related risks.

16. The ASP-P1 Morocco Project will implement various cleanup and site remediation measures to mitigate the impact of publicly-held obsolete pesticides stocks threatening communities, ecosystems, and the global environment. In parallel, ASP-P1 Morocco Project will strengthen the elements of a regulatory regime, management practices, and public awareness to prevent a recurrence of pesticide accumulation in the future.

17. The principal outputs of ASP-P1 Morocco Project will be twofold:

(a) Through its cleanup activities, ASP-P1 Morocco Project will eliminate, as far as is practicable, the risks from obsolete pesticides to communities, natural resources and ecological systems in ASP-P1 countries. At the same time, it will reduce the risks to the global environment from POPs and other persistent toxic pollutants.

(b) Through its prevention activities, ASP-P1 Morocco Project will reduce future risks from obsolete pesticides by putting in place the key elements of an effective pesticide management system, encouraging reduced reliance on pesticides through the promotion of IPM and IVM policies.

18. The ASP-P1 success in meeting its Development Objective, will be based on four indicators as summarized below (Annex 3 provides further details). The evaluation of ASP-P1 Morocco Project will be based mainly on the three first indicators of ASP-P1, Risk Reduction Improved Pesticide Management and Pesticide Disposal:

6 ASP follows the model of the Multi-country HIV/AIDS Program for the Africa Region (MAP) and the Multi-country Statistical Capacity Building Program.

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(a) Risk Reduction - based on quantitative risk assessment methodologies related to both health risks and environmental degradation, the Project will measure the percentage of publicly-held stocks removed and quality of ASP-P1 cleanup activities aiming to reduce pesticide stockpiles (Component 1).

(b) Improved Pesticide Management - based on qualitative and quantitative parameters, the Project will measure the adequacy of the Government’s strategies, including regulations, laws and institutional policies in bringing the management of pesticides and their associated wastes up to international standards (Component 1).

(c) Pesticide Disposal - based on quantitative parameters, the Project will track the amount of publicly-held obsolete pesticide stockpiles that ASP-P1 will safeguard or destroy (e.g., repackaging into safe containers, incineration, and disposal of contaminated containers) (Component 1).

(d) Service Delivery to ASP Countries - The Project will measure the quality, quantity and efficiency of support services, such as technical assistance, knowledge management, communications, and implementation support, that the international ASP-P1 technical assistance providers [initially FAO, World Wildlife Fund (WWF), Pesticide Action Network - Africa (PAN-Africa), and Pesticide Action Network- United Kingdom (PAN-UK)] deliver to the ASP-P1 countries (Components 2, 3 and 4).

19. The ASP-P1 Morocco Project indicators are as follows:

(a) Inventory database of Publicly-Held Obsolete Pesticides stocks in place and being used by the PMU and stakeholders;

(b) Completion of a CESA and implementation of the measures contained therein;

(c) Inventoried Publicly-Held Obsolete Pesticides stocks disposed of, as a result of the completion of the Disposal Services contract(s) in accordance with national and international laws and regulations;

(d) Legal and regulatory framework for pesticide management upgraded, including measures to strengthen compliance with the Conventions;

(e) The training program under Part D of the Project is implemented and the knowledge acquired is being used by PMU and stakeholders; and

(f) The PMU is functional and its operation is satisfactory to the Bank.

3. Project Components

20. ASP-P1 has four components: (a) country operations; (b) technical support; (c) cross-cutting activities; and (d) project coordination. Each of these and especially the details of the ASP-P1 Morocco Project, which is included under the Component “Country Operations”, are

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described in detail in Annex 4. The indicative costs and financing for ASP-P1 are laid out in the following table. The costs for ASP-P1 Morocco Project are detailed in Annex 5.

ASP-P1 COMPONENT Total Cost(US$m)

% ofTotal

Bank (DGF)

Financing(US$m)

% Bank Financing

GEF Financing to the Bank

(US$m)

% GEF Financing to

the Bank

Country Operations7 51.37 85.62 0.24 9 21.74 100

Technical Support 4.31 7.18 0.41 15 0 0

Cross-Cutting Activities 2.45 4.08 1.32 49 0 0

Project Coordination 1.87 3.12 0.73 27 0 0

Total Project Costs 60.0 100 2.70 100 21.74 100

GEF Financing to ASP-P1 = US$25.0m: World Bank (US$21.74 million) FAO (US$3.26 million).

21. The ASP-P1components and its overall design are based on recognition that the existing level of information on the extent, geographic distribution and characteristics of the obsolete pesticide stockpiles is insufficient for implementing pesticide disposal and site remediation measures. The design, therefore, reflects the need to carry out in all Project countries, detailed pesticide inventories, selection of disposal technologies and preparation of country-specific environmental and social assessments. Only following the adequate completion of these activities will the respective cleanup and disposal programs take place.

ASP-P1 Component 1: Country Operations

22. This is the principal component of the ASP-P1, encompassing a full range of disposal, cleanup and prevention activities to achieve the Project objectives in the participating countries. It will include four sub-components: (a) cleanup and disposal; (b) prevention of pesticide accumulation; (c) capacity building; and (d) ASP-P1 management and monitoring. The ASP-P1 Morocco Project includes the following components:

Component A: Disposal of Obsolete Pesticides (Total: US2.51 million; GEF US$2.65 million)

23. Country Cleanup and Disposal activities will be based on a comprehensive and detailed inventory of pesticide stockpiles and related contamination, determining the level of risk to adjacent and wider communities or critical natural resources (such as water supplies). The cleanup will include the repackaging of obsolete pesticides, transport and destruction of pesticides based on chemical analysis, needs assessment and technical capacity

Component B: Prevention of Obsolete Pesticides Accumulation (Total US$0.78 million; GEF US$0.55 million)

7 African Development Bank (AfDB) will contribute US$10.0 million, which will be allocated to Country Operations.

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24. Prevention Activities encompass strengthening of pesticide management through improvement of pesticide registration, licensing, enforcement of import controls, stock management, waste management, and formulation of effective procurement strategies, as well as promotion of alternatives to chemical pesticides through improvement of pest control strategies with particular attention to IPM for agriculture and IVM for health care. Prevention activities will also include the development of awareness raising programs to inform the population of potential environmental and health impact due to exposure to pesticides and the training of pesticide distributors, users and farmers to encourage safe pesticide handling and alternative pest control. The country’s Stockholm Convention National Implementation Plan Coordinator will help ensure that ASP learns from and complies with the country’s program to reduce or eliminate POPs in an environmentally safe manner.

Component C: Capacity Building (Total US$0.27 million; GEF US$0.27 million)

25. Capacity building activities in the ASP-P1 Morocco Project will include the implementation of a training program and awareness raising campaigns. Environmental monitoring will also be supported through the provision of equipment and staff training for effective pesticide and other chemical management practices.

Component D: Project Management and Monitoring and Evaluation (Total US$1.84 million; US$0.35 million)

26. Country Project Management, Monitoring and Evaluation (M&E) activities will include establishment of a Project Management Unit (PMU) in Morocco. It will be the PMU’s responsibility to implement the country level activities, solicit external technical support, monitor and evaluate Project activities and coordinate their implementation with the GEF-funded National Implementation Plans (NIPs) for the Stockholm Convention and similar initiatives. Country level management will also include establishment of a Steering Committee (SC) representing key stakeholders, such as NGOs and the private sector, and overseeing the work of the respective PMUs.

ASP-P1 Component 2: Technical Support

27. This component will deliver to country Projects the highly technical and specialized expertise required for implementation, supervision and monitoring of country level activities outlined under Component 1 including: technical advice requested by the countries for the design and delivery of training; production of technical guidelines for cleanup and prevention operations; assistance in managing technical aspects of procurement and supervision of specialized contractors; advice on linking countries with other specialized agencies and organizations; enhancement of health and safety; assessment of laboratory capacities; and oversight of M&E. The Kingdom of Morocco has access to TA from the TSU and the CCAME. The technical support will include advice on alternative disposal options, targeted to specific country and site conditions. FAO will be responsible for hosting a Technical Support Unit (TSU) to coordinate delivery of technical services envisaged under this component and tap into expertise of other ASP partners, e.g., United Nations Environment Programme (UNEP), World Health Organization (WHO), Basel Convention Regional Centers, NGOs, and the private sector.

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ASP-P1 Component 3: Cross-Cutting Activities

28. This component will deliver knowledge management, awareness-raising, strategic studies and outreach services across the entire ASP-P1 to capture synergies and cost savings through a coordinated multi-country, multi-partner approach. The key sub-components will include outreach to promote ratification of conventions relevant to project objectives, building NGOs capacity, knowledge management and communication, e.g., hosting the ASP website. The strategic studies component will include an evaluation of alternative technologies for the disposal of obsolete pesticides. In addition, these studies will serve to improve the understanding of environmental health risks associated with the specific pesticides, and contribute to the prioritization and decision-making process within each country. WWF and PAN-UK will host the Cross-Cutting Activities Management Entity (CCAME) responsible for delivery of support services under this component.

ASP-P1 Component 4: Project Coordination

29. This component will coordinate the implementation and monitoring of the ASP-P1 among the various partners. In addition to the overall coordination, key activities include: developing and ensuring implementation of a fund-raising strategy, acting as Secretariat to the Africa Stockpiles Programme Steering Committee (ASP-SC), maintaining awareness at the policy level about the Project, reporting to donors, preparing the bi-annual work plan and progress reports and financial reports, coordinating independent Project monitoring and coordinating the design of follow-on projects. Initially, the Bank will host the ASP Project Coordination Unit (ASP-PCU). During the implementation phase of ASP-P1 the PCU will be transferred to an appropriate African organization. NEPAD has been identified as a possible candidate.

4. Lessons Learned and Reflected in the Project Design

30. The Project design take into account lessons learned from a considerable body of experience from (i) World Bank-supported obsolete pesticide stockpiles and waste cleanup interventions8; (ii) more than twelve years of interventions against risks related to obsolete pesticides in Africa on the part of FAO, PAN-UK, the private sector and other ASP partners. The project reflects lessons learned from programs under chemical conventions similar to the Stockholm Convention, the Bank’s experience with regional programs and the Bank’s Operations Evaluation Department (OED) lessons on global partnerships.

31. Legal responsibility and custody of obsolete stocks: The project assumes that obsolete stocks are legally Government-owned until the disposal is completed. The Grant Agreement for the project is financed states that the Bank will have no responsibility for ownership, custody or care of the stocks at any moment during the inventory or disposal processes. Throughout the cleanup chain of events, third parties (in particular the disposal contractor) may have temporary

8 The Bank has considerable experience in clean up of waste sites, such as sludge, mine tailing and uranium clean up (e.g., Kyrgyzstan, Lithuania). However, the Bank has limited experience in the cleanup of dispersed pesticide waste.

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custody. The ASP will require such third parties to carry adequate insurance to accommodate possible mishap.

32. Country level ownership of the Project: The experience emphasizes, among others, the importance of strong country ownership, effective pesticide management, the reliance on technical expertise in waste management in the private sector, and involvement/commitment of pesticide companies, environmental and public health NGOs and other civil society participants. ASP has received a strong support from Governmental institutions and NGOs, which have actively participated in project preparation and workshops. ASP-P1 builds upon the existing initiatives which have taken place over the last 10 years in Africa to dispose of obsolete pesticides. In order to scale up disposal and prevention activities, several African countries requested and supported the development of a partnership to more rapidly address this issue ASP-P1’s design emphasizes country ownership not only through traditional co-financing requirements and public participation, but also through consolidating the crucial political and institutional support mobilized in the process of ratification of the Stockholm Convention.

33. Prevention: Recognizing that effective pesticide management and judicious use of pesticides are essential to preventing risks associated with pesticide stockpiling, ASP-P1’s design integrates substantial prevention and capacity building interventions at early stages of the country operations.

34. Multi Donor Trust Fund (MDTF): The recommendations resulting from the OED analysis indicate that the provision of sufficient grant resources is important to ensure program flexibility, and that donor funds achieve greatest efficacy when pooled. ASP-P1 has therefore established a MDTF, which potential donors are encouraged to contribute to.

35. Awareness: ASP-P1 also includes awareness-raising among the full range of stakeholders in order to provide an effective pesticide management and prevention at country level.

36. Monitoring and Evaluation: M&E functions are built into ASP-P1 both at the country and program levels, and cover not only the core cleanup and pesticide management activities but also all technical support, cross-cutting and coordination services (see Annex 6 for more details).

37. Large-scale Regional Project: A flexible approach to the implementation of the ASP-P1 was found to be essential. This is required in order to enable additional partners to join the ASP partnership as they become available, provided that they subscribe to the partnership principles of the ASP. Secondly, rather than trying to negotiate grant agreements with all countries prior to Bank Board approval, it was decided to conclude negotiations with countries demonstrating high readiness for implementation. The remaining countries will then be supported to meet conditions for negotiations post Bank Board approval following the programmatic approach of a Horizontal APL.

5. Alternatives Considered and Reasons for Rejection

38. Several alternatives were considered for the design of ASP-P1:

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(a) Support individual initiatives by donors in parallel - This alternative would yield some short-term point-source gains for the clean-up operations, but it would not provide any of the economies of scale, synergies and visibility that a regional program can offer. Furthermore, this model does not provide adequate sustainability of any positive outcomes, since it lacks an integrated approach for the prevention of future pesticide accumulation.

(b) Create a regional pesticide management agency - to centralize the clean-up and prevention operations for the entire continent. However, this alternative was rejected because ultimately it would not be cost-effective and does not reflect the need for country ownership. Furthermore, both clients and donors are reluctant to create new regional bureaucracies.

(c) Launch a 10-15 year adaptable program loan - that could expand as additional funding becomes available and build on the lessons from previous phases. This alternative was initially considered as a basis for implementing the entire ASP operation, but it was considered preferable to start immediately with a limited set of fully-funded countries in order to build up experience, tangible results and momentum, establish a working model and then scale up this experience in subsequent ASP activities.

C. IMPLEMENTATION

1. Institutional and Implementation Arrangements

39. ASP-P1 institutional and implementation arrangements rely on close cooperation among ASP partners, a participative approach involving all stakeholders, their comparative expertise in Africa and their historic involvement in developing ASP. Each institutional entity will take responsibility for a key element of program implementation. While it would be possible to house all elements under one agency, the program would lose the synergies and comparative advantages of each specialized agency.

40. ASP-Steering Committee (ASP-SC) will review ASP progress once a year. It will be a forum to provide feedback and recommendations on the overall direction of the Program. The ASP-SC will be supported by the ASP-PCU. The ASP-SC will include representatives from all the participating countries and the ASP core partners, including: NGOs, UN specialized entities, regional organizations, and donor representatives and will be open for future partners to join.

41. PMUs will be the principal implementers of ASP-P1 through the individual country projects under Component 1. In Morocco, the PMU will be hosted by the Department of Plant Protection, Technical Control and Fraud Repression (Direction de la Protection des Végétaux, des Contrôles Technique et de la Répression des Fraudes - DPVCTRF) under the Ministry of Agriculture, Rural Development and Fisheries (Ministère de l’Agriculture, du Développement Rural et des Pêches Maritimes - MADRPM). The PMU will be guided by a Steering Committee (SC).

42. TSU will be a provider and coordinator of technical expertise required for preparation and implementation of country cleanup and prevention activities. It will be responsible for results of

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Component 2 and be hosted by FAO. It will coordinate technical services of other partners, e.g., UNEP, WHO and the Basel Convention Regional Centers.

43. CCAME will manage provision of knowledge management, communications, awareness-raising and outreach activities across ASP. It will be responsible for the results of Component 3 and hosted by WWF and PAN-UK.

44. ASP-PCU will serve as the overall coordinator of ASP-P1 implementation and provide a Secretariat function for the ASP Steering Committee (ASP-SC). It is anticipated that following the successful completion of ASP-P1, or earlier, the ASP-PCU will be transferred to an African organization. NEPAD has been identified as a potential host. The ASP-PCU will be responsible for results of Component 4.

45. ASP Unit: The Bank will manage the relevant trust funds and supervise the implementation of activities funded through grant agreements for the seven countries, WWF, PAN-UK, and the ASP-PCU. The Bank will monitor the achievement of the Project Development Objective (PDO) and ensure compliance with all fiduciary requirements as per grant agreements. The Bank will also supervise the DGF agreement with FAO. The Bank will not oversee the GEF grant agreement with FAO, as FAO has direct access to GEF resources as a GEF Executing Agency with expanded opportunities under OP14 on POPs. In order to perform these functions the Bank will establish a small ASP Unit comprising of a full time ASP Coordinator supported by Task Team Leaders (TTLs) in each of the seven countries responsible for routine day-to-day supervision of the relevant grant agreements.

46. All ASP-P1 Partners will follow a common set of policies and procedures pertaining to fiduciary management, evaluation, safeguards and communications. These policies and procedures are established in the implementation arrangements for each component and for each country operation. Annex 6 contains details about the institutional arrangements and ASP governance in general.

47. Conflict of Interest: Two partners have received grants for both project preparation and for project implementation, namely FAO and WWF. This approach has received policy clearance from the Bank’s Legal Department. The Bank team is satisfied that the work performed in project preparation by these entities was in fact performed in an objective manner, and that the tasks proposed for these entities during project implementation are necessary and reasonable and that they are suitable partners to perform those activities.

2. Financing Partners

48. The financing partnership behind ASP-P1 and the formal and informal institutional partnership behind the ASP are a prominent aspect of Project implementation. The financing partners will use different funding arrangements.

49. The ASP-P1 Morocco Project will be funded as follows:

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(a) GEF, ASP-P1’s largest contributor with US$4.0 million of funding will channel funding through the Bank;

(b) The Government of the Kingdom of Morocco has allocated US$1.98 million as co-financing to the ASP-P1 Morocco Project;

(c) The Bank (Development Grant Facility) - will provide funding to support civil society-related activities via the PAN-UK, WWF, NEPAD and FAO;

(d) GEF will channel funding through FAO for technical support to the Government of the Kingdom of Morocco;

50. GEF and country contributions costs for the ASP-P1 Morocco Project are detailed in Annex 5 in this PAD.

3. Monitoring and Evaluation of Outcomes/Results

51. Monitoring of Project activities and evaluation of their results in ASP-P1 will serve a dual function. First, it will facilitate tracking of progress toward the Project objectives. Second, it will facilitate learning and generation of knowledge necessary for the preparation of follow-on projects and the further implementation of ASP-P1. Independent monitoring of disposal activities will be undertaken at the country level. Evaluation of the global units TSU, CCAME and ASP-PCU will be conducted by an Independent Monitor.

52. Overall ASP-P1 monitoring indicators are described in section B2 and Annex 3. They reflect the Project focus on risk reduction from publicly-held obsolete pesticide stocks and contaminated sites. Data will come from two main sources: firstly, it will derive from individual country-level operations using standardized Project-wide methodologies for data collection and quality assurance. Inventories will provide the baseline data and set the detailed program of disposal operations for each of the countries. M&E for disposal operations is straight forward as progress of project implementation will be quantified through these pesticide inventories. The responsibility for data collection for Component 1 will rest with PMU with assistance from the TSU. Secondly, for Components 2, 3 and 4, data will come from standardized monitoring and reporting by the units providing support services - TSU, CCAME and ASP-PCU, respectively. Overall data synthesis will be consolidated by the ASP-PCU and reported to the ASP-SC for dissemination and review. The Bank will monitor the implementation of the Grant Agreements through routine supervision missions and review of M&E data.

4. Sustainability and Replicability

53. A key factor to Project sustainability is the prevention of a re-emergence of obsolete pesticide stockpiles at the conclusion of Project implementation. The inventory and clean-up of the existing stockpiles will do little to reduce the obsolete pesticide risks in the long term unless the ASP supports elements of effective pesticide management. The design of ASP-P1, therefore, integrates substantial activities on pesticide management and the prevention of their re-accumulation. These activities focus on four areas:

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(a) the general regulatory and policy reform (pesticide registration, import controls, licensing, standards, regulations, procurement strategies and stock management, inter-sectoral cooperation, enforcement and others);

(b) the promotion of alternative pest control strategies, such as IPM and IVM through training, awareness raising and research;

(c) an increase in general public awareness of environmental health risks, and public disclosure of pesticide issues and training of pesticide distributors, users, agricultural extension staff and others, as well as an increase in the capacity of Governments to safely and effectively manage pesticides and other chemicals; and

(d) promoting the development and involvement of local NGOs in pesticide safety, health risks and other environmental issues.

54. The combination of adequate institutional and regulatory capabilities, increased public awareness and understanding, and active and informed NGOs is meant to ensure the long term sustainability of the ASP reforms.

55. Replicability: The ASP-P1 has been designed to include replication and the preparation of follow-on projects. The next proposed project called ASP-P2 will be designed during implementation of ASP-P1.

5. Critical Risks and Possible Controversial Aspects

56. While the clean-up and disposal of obsolete pesticides is routinely undertaken safely, this project will be conducting removal operations in locations that are often dispersed, remote and present unique logistical challenges. Project implementation has been designed to operate through a partnership, which builds on the comparative advantages and experience of several key agencies, but successfully managing the partnership adds a further degree of complexity to the Project. The ASP-P1 is therefore rated “substantial risk”. The table below summarizes the specific risks and describes the appropriate mitigation measures which have been adopted to minimize their impact:

Risks Risk Mitigation MeasuresRisk Rating

with Mitigation

To Project Development/GEO S

The seven countries participating in ASP-P1 fail to substantially reduce the threat posed by obsolete pesticides due to pesticides remaining on site or inadequate clean-up and disposal operations.

Identify and quantify all publicly-held obsolete pesticides in each country at start-up.

Incorporate international standards and safeguards into the implementation of all the clean-up and removal operations.

Include substantial capacity building

M

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Risks Risk Mitigation MeasuresRisk Rating

with Mitigation

activities and technical support. Provide flexibility in project implementation

to accommodate changing circumstances. If one or more of the country projects are not

fulfilling the program objectives, ASP-P1 may accelerate the implementation of ASP-P2 countries.

To Intermediate Outcomes or Component Outcomes S

Component 1: Country clean-up and disposal operations fail to meet the full extent of country requirements for various reasons, including:

Failure to meet adequate safeguard requirements.

Inventory is inaccurate. Lack of Government

implementation capacity and/or support.

Lack of public support or opposition by NGOs.

Inadequate resources due to the scale of the pesticide problem.

The ASP partnership breaks down.

Providing substantial support on safeguard issues.

Continuous technical support to the country projects from the TSU and international experts to ensure accuracy of the inventory.

Building Government implementation capacity and providing mechanisms for close collaboration.

Engaging NGO’s directly in project implementation, especially in the monitoring of clean-up and removal activities.

Develop an effective public-disclosure strategy.

Undertaking detailed pesticide inventories to identify the scale of the pesticides problem and continuously seeking additional support and funding.

Ensuring good coordination, collaboration and information exchange. Annual project performance reviews will be conducted to ensure the project remains on track and that issues are resolved promptly and jointly.

S

Component 2: TSU becomes overwhelmed by the demand for technical support services.

The TSU has been designed based on the currently anticipated demand for services, but the structure and resources will be reviewed annually.

M

Component 3: CCAME is unable to assure NGO community of the soundness of project implementation, especially disposal.

The CCAME will fully engage NGOs through appropriate communications. Also, the component activities have been divided between WWF, PAN-UK and PAN-Africa to ensure adequate coverage at all levels.

S

Component 4: Project coordination becomes ineffective due to inadequate cooperation

The project coordination function has been developed in close collaboration with the partners and is designed to foster and maintain a

M

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Risks Risk Mitigation MeasuresRisk Rating

with Mitigation

among the ASP partners. healthy and active ASP partnership.

To the Overall Success of the Project S

Governments may reduce the priority of the obsolete pesticides problem and may continue to import and use cheap and toxic pesticides, (especially in emergencies, such as locust outbreaks).

Project implementation will be carried out through PMUs with financial and in-kind contributions from each Government, which will ensure Government buy-in throughout the program. Parallel efforts to strengthen policies, regulations and enforcement combined with training in IPM techniques will also improve the success of the prevention campaigns. Furthermore, close dialogue with donors and cooperation with the pesticide industry will lead to greater transparency and responsibility.

S

Donors may not devote sufficient resources to resolving the problem, which continues to worsen.

The ASP-P1 is already fully-funded. The ASP is a 10-15 year program, so successful implementation of the initial ASP-P1 project will encourage that GEF and other donors will continue to finance the subsequent operations and other donors are expected to join the partnership (several have already indicated their interest in participating).

M

There is reputational risk for the World Bank, GEF and the ASP donors/partners, especially in the case of accident or the possibility of under-delivery due to project complexity and/or cost overruns.

In case of accident Bank donors may reduce support for the ASP.

Ensuring that the environmental and social safeguards are rigorously enforced.

Ensuring that emergency action plans are in place for each country.

Carefully managing the shared relationships between Governments, public agencies and the private sector will reduce the risk of accidents and ensure that any issues arising are resolved collectively.

S

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Risks Risk Mitigation MeasuresRisk Rating

with Mitigation

Public opposition to the project’s disposal options may delay progress and result in pesticides continuing to be stockpiled.

M&E functions will identify specific risks as they arise. High visibility and disclosure of ASP activities will be maintained through the coordinated involvement of all the partners and stakeholders to ensure that methodologies are satisfactorily explained and that the overall project benefits remain clear and are adequately disseminated.

M

Environmental risks - ASP-P1 has a Safeguard ‘Category A’ rating due to the toxic nature of the obsolete pesticides being removed.

The environmental risks are principally related to the clean-up, transport and disposal operations in each country. However, the project design draws on a wealth of experience from existing projects in the region (e.g., Ethiopia) to define the methodologies to be used and the steps to be taken to ensure that impacts are properly mitigated and will fully incorporate the latest and strictest standards in dealing with and transporting toxic and hazardous wastes.

S

Overall Risk Rating S

H = High S = Substantial M = Moderate

6. Loan/Credit Conditions and Covenants

57. The GEF Grant Agreements will also contain a statement that the Bank and the Recipient agree that at no point during the Project will the Bank be responsible for the execution of the Project activities, nor will the Bank have any legal custody or responsibility for the pesticide stocks inventories which are to be disposed of during the course of the Project. This would ordinarily go without saying, but this extra precaution is perceived as desirable in light of the small risk of a disposal contractor negligently disposing of stocks and that negligence causing harm to persons or property or damage to the environment.

7. Conditions for Disbursement for Disposal

58. Complete a Country Project-specific Environment and Social Assessment (CESA), including an Environmental Management Plan (EMP) to the satisfaction of the Bank.

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D. APPRAISAL SUMMARY

1. Economic and Financial Analyses

59. ASP-P1 will essentially perform a public good in reducing the risk of contaminating the environment and therefore does not lend itself well to typical economic or financial analysis. In theory, the Project could be examined using cost-benefit analysis. However, the lack of reliable baseline data and the controversial aspects related to the valuation of human life make such an analysis impractical. It is expected that the benefits from reducing damage to the environment and to human health from pesticides will far exceed the costs associated with implementing ASP-P1. The Project will strive for maximum cost-effectiveness in all of its interventions and it will use risk reduction as the criterion to prioritize among them if necessary.

60. For GEF purposes, the preparation of the Project has included an incremental cost analysis for ASP-P1. This analysis (see Annex 9) provides a baseline and the incremental cost of achieving global benefits to address the issue of obsolete pesticides in the seven targeted African countries.

2. Technical

61. The project has prepared a Generic OM which spells out the technical, procurement, Financial Management (FM), M&E, and Safeguard requirements of ASP as well as the institutional arrangements. The Kingdom of Morocco prepared its own country OM using the Generic OM as a template. In order to design and implement the most appropriate disposal strategies at the country level, the detailed technical options will be prepared during Project implementation once updated pesticide stockpile inventories have been completed. In principle, the technical design will be guided by a preference for cost-effective practices and compliance with international health, safety, and emission standards. The technologies selected for disposing of the stockpiles and wastes will be required to meet both the Stockholm Convention Best Available Techniques/Best Environmental Practice (BAT/BEP) guidelines, and the appropriate Basel Convention and Stockholm Convention Technical Guidelines for Environmentally Sound Management.

62. To identify standards, the Project will refer to and follow the recommendations and minimum standards described in the International Code of Conduct on the Distribution and Use of Pesticides (FAO, 2003), in the Stockholm Convention on persistent organic pollutants (dioxins and furans) and those related to the Basel Convention for Control of Transboundary Movement of Hazardous Waste, the International Maritime Dangerous Goods Code, and the Rotterdam Convention for Prior Informed Consent. The ASP-P1 will conduct a rigorous analysis of all available disposal technology schemes according to international standards for the industry, including additional criteria such as cost, safety, emissions, risks, etc. In practice, and at least in the early stage of the project, this is expected to result in ASP-P1’s obsolete pesticide stocks and associated wastes being safeguarded and shipped overseas to be incinerated at high temperature in order to meet the above-mentioned requirements. Alternative disposal technologies will be identified for possible use at a later stage (see Annex 1, Section 2 for more details).

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3. Fiduciary

Financial Management

63. A financial management assessment was conducted for the Kingdom of Morocco in the executing agencies and was found satisfactory to the Bank. The Project risk from a FM perspective is considered as “moderate”. The main risks identified consist: (a) at country level, in the delays in commitments and payments and the additional processing time to reimburse the project expenditures pre-financed by the budget, that may have a possible impact on disbursement; and (b) at project level, in the insufficient human resource capacity and the potential delays in reporting and monitoring project transactions from the two executing agencies. The measures to mitigate these risks are described in Annex 7 and mainly consist of (a) the definition of reporting procedures between the two executing agencies, the Ministry of Finance and PMU and (b) staffing arrangement in the PMU with clear TORs and training session. The summary of the FM assessment is integrated in the Kingdom of Morocco Appraisal Report, while the detailed FM assessment is located in the Project File.

64. To ensure acceptable accounting, financial reporting and audit standards, the Kingdom of Morocco will maintain separate accounts for project funds and carry out annual audits in compliance with internationally acceptable annual standards. FM and disbursement arrangements for the project (including financial reporting and FMR format) are described in the Morocco OM and will be further detailed by the FM consultant during its mission to the PMU. It specifies the financial reporting format so that the ASP-PCU can consolidate all financial reports from country projects and global components. The following areas will be uniform for consistency and consolidation purposes of the ASP: (i) chart-of-accounts will be the same for all countries; (ii) the project financial year will be the calendar year (January-December) for all; (iii) the FM Report (FMR) reporting period will be uniform; and (iv) audit arrangements will be similar for all countries. Annexes 7 and 8 discuss the specifics of the FM and procurement arrangements.

Procurement Arrangements

65. The primary responsibility for overseeing the implementation of procurement procedures will rest with the staff of the PMU. The Procurement Capacity Assessments of the implementing agencies were carried out. A Procurement Plan for the first 18 months has been developed by the Kingdom of Morocco and is attached in Annex 8. In order to further strengthen procurement, the following actions were proposed:

(a) a Project Launch Workshop is planned as part of the Project implementation and capacity building initiatives, including procurement;

(b) an experienced consultant will be recruited at the PMU to coordinate, supervise and assist implementing agencies in terms of procurement;

(c) an OM with procurement implementation guidelines, specific to the country, will be prepared and adopted;

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(d) monitoring of the procurement activities by the Bank through its country office procurement staff; and

(e) periodic ex-post review by the Bank of contracts and purchases.

4. Social

66. ASP-P1 will deliver considerable social benefits by reducing risks to people from existing pesticide stockpiles and implementing measures to prevent recurrence of pesticide stock accumulation in the future. Due to the correlation between health and environmental risks and poverty, the delivery of benefits will likely be progressive, affecting the population at large and the poor in particular. Given the low level of awareness of the general population with regard to the consequences of exposure to contaminated sites and goods, their active participation and collaboration with the Project to carry out its objectives might be slow. However, the highly participatory modus operandi, started at an early stage of Project preparation and expected to continue during Project implementation, is expected to help mitigate this problem. Other supportive measures have been planned to sensitize the general population to this issue. They include awareness campaigns and training for pesticide distributors and users to help raise the level of awareness and encourage safe pesticide handling and alternative pest control.

5. Environment

67. ASP-P1 is essentially an extensive cleanup and contamination-prevention operation which will bring substantial environmental health benefits, both locally and globally, by removing obsolete pesticide stockpiles and (in exceptional cases) remediating contaminated sites. ASP-P1 does, however, carry some short-term high environmental risks, specifically as related to the removal and transportation of obsolete pesticides and contaminated materials. These risks are discussed in greater detail in Annex 10 as part of a thorough consideration of the safeguards issues. During project implementation, a Morocco Project-specific Environment and Social Assessment (CESA) including the EMP will be prepared by independent consultants as specified in the OM. Detailed inventories, site specific information including detailed digital photos and precise location coordinates (GPS) of obsolete stocks and contaminated sites will need to be taken for CESA preparation. The CESA will be completed once the obsolete pesticide stockpile inventories and site characterizations in the Kingdom of Morocco have been completed. Disposal and cleanup activities will begin after successful completion of the CESA.

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6. Safeguard Policies

Safeguard Policies Triggered by the Project Yes NoEnvironmental Assessment (OP/BP/GP 4.01) [x] [ ]Natural Habitats (OP/BP 4.04) [ ] [x]Pest Management (OP 4.09) [x] [ ]Cultural Property (OPN 11.03, being revised as OP 4.11) [ ] [x]Involuntary Resettlement (OP/BP 4.12) [ ] [x]Indigenous Peoples (OD 4.20, being revised as OP 4.10) [ ] [x]Forests (OP/BP 4.36) [ ] [x]Safety of Dams (OP/BP 4.37) [ ] [x]Projects in Disputed Areas (OP/BP/GP 7.60)9 [ ] [x]Projects on International Waterways (OP/BP/GP 7.50) [ ] [x]

68. The environment category A rating of the ASP-P1 triggers Operational Policies (OP) 4.01 on EA and 4.09 on Pest Management. The key safeguard issues are associated with potential environmental and social impacts from dealing with highly toxic chemicals and remediation of contaminated sites.

69. The ASP environmental and social impacts were assessed in a Framework Environmental Assessment and their mitigation measures were outlined in an Environmental and Social Management Framework. The Environmental and Social Assessment Synthesis Report was prepared based on these documents and will serve as guidance for the preparation of the respective CESA. The Environmental and Social Assessment Synthesis Report was disclosed prior to appraisal in the Kingdom of Morocco in March 2004 and in the InfoShop on March 17, 2004. The Project Integrated Safeguards Data Sheet (ISDS) was disclosed on October 26, 2005. The Environmental and Social Assessment Summary Report was disclosed to the Board on October 28, 2004. A binding covenant in the Project legal document will be made, stating that the Kingdom of Morocco will prepare a CESA early in Project implementation. Annex 10 discusses more specifically how ASP-P1 will ensure compliance with the safeguard policies.

70. Involuntary Resettlement (OP/BP 4.12) is not triggered at this stage. Given the multi-country nature of the ASP-P1 Project (seven countries), it is not feasible to prepare an umbrella framework for Project countries, due to their dissimilar legislation and policies related to land acquisition and displacement. Similarly, it is not practical and realistic to prepare a separate framework for each country, especially when there is no confirmed evidence that existing pesticide sites/storages will result in involuntary displacement or total or partial loss of livelihood.

71. Natural Habitats (OP/BP 4.04): During project implementation, if a stock of obsolete pesticides, pesticide wastes or a contaminated site happen to be located in the proximity of a critical natural habitat(s), then such a situation would trigger OP 4.04 and would require that the EA process (OP 4.01) would identify such habitats within a proposed project’s area of influence

9 By supporting the proposed project, the Bank does not intend to prejudice the final determination of the parties' claims on the disputed areas.

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and will take the necessary measures to avoid or minimize damage to natural habitats to the extent feasible.

7. Policy Exceptions and Readiness

72. Policy Exception: ASP-P1 requires no Bank policy exceptions.

Readiness Criteria:

ISSUES STATUS

Fiduciary The Kingdom of Morocco indicates high levels of compliance with FM requirements. A Procurement plan has been prepared.

Project Staffing PMU staff identified

Disclosure RequirementsThe Environmental and Social Assessment Synthesis Report disclosed in the Kingdom of Morocco and in the Bank InfoShop as of March 17, 2004.

Monitoring and Evaluation M&E indicators have been prepared and incorporated into the project design and implementation arrangements.

Co-Financing Agreements Signed Co-financing arrangements confirmed and the funding secured.

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ANNEXES

ANNEX 1: AFRICA STOCKPILES PROGRAMME BACKGROUND

Background

1. ASP-P1 will be the first in a series of projects to comprise the ASP. The envisaged 10-15 year program has been conceived and designed through a partnership composed of seven African countries (Ethiopia, Mali, Morocco, Nigeria, South Africa, Tanzania and Tunisia), NGOs (e.g., WWF, PAN-UK and PAN-Africa), FAO, UNEP, WHO, and other international organizations including the AfDB, the African Union, the NEPAD Secretariat, the Secretariat of the Basel Convention, the Bank, and the private sector.

2. ASP has been designed to address the issue of an estimated 50,000 tons of obsolete pesticides that are leaking into the environment, contaminating soil, water, air and food sources. These hazardous chemicals are an environmental health threat to the continent and often to poor communities who lack safe water supplies and who suffer from unsafe working conditions. Obsolete pesticide stockpiles exist in virtually all of the 53 countries of Africa. ASP focuses on a specific sub-set of obsolete pesticides to be removed. Many of these pesticides include Persistent Organic Pollutants (POPs)10. The stockpiles include varying proportions of POPs, ranging from small to substantial percentages. Once mixed, however, the entire stockpiles must be considered POPs-contaminated, posing correspondingly high levels of threat and requiring appropriately careful management and disposal. Stockpiles of obsolete pesticides are often in a severely deteriorated condition, poorly stored and located close to habitation or water supplies, and thus represent a serious risk to human health, ground and surface water, land use, and the environment. They pose the most serious long term danger to human health and the environment because of their mobility, toxicity, bio-accumulation potential, and persistence. Obsolete pesticides are generally a mixture of different pesticides, some of which are POPs, and fall under the Stockholm Convention on POPs to which all seven participating ASP-P1 countries are parties.

3. The impact is often greatest on the poor. Abandoned pesticide stockpiles and dumps are often located in poorer communities where people scavenge for “recyclables” with no awareness of the dangers involved. Estimates of annual pesticide poisonings range in the millions and although reliable data is scarce, this has undoubtedly led to thousands of deaths, diseases, birth defects and disabilities in Africa alone.

4. The continuing accretion of obsolete pesticide stockpiles and lack of remediation combine to make the problems acute. Nevertheless, obsolete chemicals have generally not been considered a pressing development issue. The problem has not typically been identified in Country Assistance Strategies (CASs), and none of the National Environmental Action Plans

10 POPs are chemical substances that persist in the environment, bioaccumulate through the food chain, and pose a risk of causing adverse effects to human health and the environment. POPs based pesticides include: Aldrin, Dieldrin, Endrin, Chlordane, Heptachlor, DDT, Mirex, Hexachlorobenzene and Toxaphene.

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prepared in Africa during the 1990s dealt with the problem. Several development agencies or donors such as the Food and Agriculture Organization (FAO), Gesellschaft für Technische Zusammenarbeit (GTZ), Danish International Development Agency (DANIDA), United States Agency for International Development (USAID), Canadian International Development Agency (CIDA), Belgium, Finland, Japan, and the Netherlands have been active in starting the cleanup and disposal of obsolete pesticides, but the costs are very high and resources have been extremely limited. Understandably, both recipient countries and donor agencies are often reluctant to divert funds allocated to poverty alleviation, food security or other areas of intervention for this concern. A strategic programmatic approach for the African continent, combining activities and efforts from the international community, as well as the provision of additional funds dedicated specifically to pesticide/hazardous waste management and safe disposal, is therefore urgently needed.

5. Efforts have been made in recent years to improve control over pesticides. Many African countries have ratified international agreements, developed regulations, moved away from centralized purchasing systems, imposed controls for illegal dumping of hazardous wastes, imposed tighter border controls and developed Integrated Pest Management (IPM) programs to reduce reliance on pesticides. However, the recent outbreaks of locusts in West Africa indicate the extent to which many countries still require vast amounts of pesticides at short notice and lack the capacity to adequately dispose of unused pesticides after such operations. In addition, in response to the increasing demand by countries importing agriculture products that pesticides should be well-managed, African countries need to increase efforts to prevent misuse and overuse of pesticides.

6. In 1994, FAO established a program on prevention and disposal of obsolete pesticides. This program provides guidance and help to developing countries to design and implement projects and to produce inventories of obsolete pesticides stocks. The experience gained and information collected by FAO and CropLife International (CLI - the global federation of the plant science industry) have been of critical importance in setting up the Africa Stockpiles Programme (ASP) - which combines experience and resources from many agencies and donors in the common goal of ridding the continent of obsolete pesticides. The partnership comprises Non-Governmental Organizations (NGOs), United Nations (UN) specialized entities and other international organizations and the private sector. In order to remove all the estimated obsolete pesticide stockpiles on the continent of Africa (50,000 tons), the ASP is expected to require funding of US$200-250 million11 over a period of 10-15 years. (Please refer to Annex 1 for a detailed description of the long-term goals of the ASP continent-wide partnership and a full listing of the ASP partnership members).

7. The Bank was invited to join the ASP partnership in 2001 because of its experience in managing complex regional projects and in order to lead the program coordination, spearhead the fundraising efforts and develop the specific country-level projects. Since then, the Bank has played a key role in building a strong and cohesive partnership, inviting additional donors and partners to add their resources and skills, securing US$60 million in funding (with nearly half of this amount coming from the Global Environment Facility (GEF), and developing the first

11 This figure is based on current estimates of obsolete pesticides on the continent; however actual costs could rise significantly if addition stocks are discovered during country level inventories.

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Project operations (ASP-P1). ASP-P1 will focus on disposal and prevention activities in seven high-priority African countries: Ethiopia, Mali, Morocco, Nigeria, South Africa, Tanzania, and Tunisia. These countries were selected because they both have significant stockpile problems and have indicated a readiness to address them. All seven countries have ratified the Stockholm Convention on POPs12 and the Basel Convention on Transboundary Shipment of Hazardous Waste. Current estimates indicate that there are about 5,000 tons of obsolete pesticides distributed through more than 1,400 sites in the seven countries. During implementation of ASP-P1 it is expected that follow-on projects in eight additional countries would be prepared from among the following priority countries: Benin, Botswana, Cameroon, Côte d’Ivoire, Egypt, Ghana, Liberia, Lesotho, Mozambique, Namibia, Niger, Rwanda, Senegal, Sierra Leone, Sudan and Swaziland (see Annex 4).

8. Many African countries lack adequate technical, institutional and financial capacity to deal with these pesticides. This requires the implementation of regulations, enforcement and resources to manage the cleanup of contaminated wastes/sites and the destruction of obsolete pesticide stocks in an environmentally sound manner. They also suffer from weak import controls, inadequate storage and stock management and a lack of training and education on appropriate pesticide use, all of which contribute to the widespread misuse of pesticides. Lastly, there is also a lack of public awareness of the environmental health risks posed by POPs.

9. The criteria for selecting countries to participate in ASP-P1 include: (i) ratification of the Stockholm Convention, which is a condition for accessing GEF financing; (ii) ratification of the Basel Convention for shipment of waste and, preferably, the ratification of the Rotterdam Convention; (iii) readiness to implement acceptable removal and prevention measures; and (iv) the availability of adequate financing.

Main Sector Issues to be addressed by ASP

10. Obsolete Pesticide Disposal and Management: ASP will support the identification, removal, transportation and safe disposal of obsolete pesticides and associated materials. There are currently no suitable facilities in Africa for the environmentally sound destruction of pesticides that meet the requirements of the Basel Convention and the Stockholm Convention. Hence, ASP will necessarily facilitate the disposal of the waste at dedicated facilities outside Africa. The Project will also assess alternative destruction technologies which may be applied throughout the African continent in the future.

11. Technical Options: Several technology options are available for the disposal of hazardous wastes, such as obsolete pesticides. However, the number of technology options which are tried and tested and considered safe at all levels, including environmentally and economically, are relatively few. The ASP has therefore committed to choosing the disposal contractors for its first project through a call for qualified firms based on the highest international standards for disposal of hazardous wastes. These standards will encompass a varied set of factors ensuring, inter alia, experience in the developing country context; meeting international

12 The Stockholm Convention is a global treaty to protect human health and the environment from POPs. In implementing the Convention, governments will take measures to eliminate or reduce the release of POPs into the environment.

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emissions and other environmental standards; and a proven track record in safe handling and transport of hazardous waste in compliance with international conventions. The cost-effectiveness of the offers will also be considered provided that they are within the parameters established by the standards for disposal. A list of qualified firms will then be established and tenders will be offered among this pre-qualified group. By utilizing this "standards" approach, the ASP allows for the broadest range of disposal options to be considered (e.g., plasma arc, high temperature incineration, etc.) rather than pre-judging the available market, while ensuring that environmental safeguards are fully met. In addition, the ASP will fund a study (managed by the CCAME) in the first phase of the program to analyze the range of disposal options available to ensure the broadest selection of acceptable technologies are taken into account in subsequent phases of the program.

12. Contaminated Soils: The high risks for human health (e.g., cancers and birth defects) and the environment (e.g., contamination of water tables and streams) resulting from soils contaminated with pesticides, are well identified in some countries, e.g., in Mali. ASP-P1 will not commit to extensive remediation of pesticide-contaminated soils, other than in exceptionally high-risk situations due to the high costs and large quantities involved. However, the final decision in all cases would be site-specific and would depend in part on a clear understanding of site-specific risk assessments, the technological options available (e.g., containment or in-situ treatment), their feasibility and relative costs.

Prevention of accumulation of new stockpiles of obsolete pesticides

13. Pesticide Regulations: Improved pesticide regulations to ensure effective use and to facilitate international trade in agricultural produce are essential. Many African countries have regulations in place, but these are often either inadequate or not enforced. Furthermore, regulations may be in place for agricultural purposes but not for public health (e.g., mosquito control campaigns and pesticides for domestic use). ASP will help countries to review and improve their regulatory systems, including ensuring their compliance with international conventions.

14. Pesticide Procurement, Production and Imports: Inadequate procurement strategies on the part of Governments, national agencies, donor agencies, development organizations, the private sector and other organizations are the principal cause of stockpiles of obsolete pesticides, often resulting in oversupply, stocking of unsuitable products, late delivery of products, and supply in inappropriate containers. ASP will utilize stakeholder committees to identify ways of eliminating supply-driven pesticide procurement. In addition, the active involvement of donors and the pesticide industry in the ASP partnership will also help to prevent oversupply.

15. Pesticide Supply, Distribution and Use: Inadequate management of various components of the pesticide life cycle has contributed to the creation of obsolete stocks. There is a need to improve management of pesticides from the point of supply to the point of use and beyond, in terms of empty container and unused pesticide disposal. The ASP will provide Governments with comprehensive guidance on strategies for the appropriate management of pesticide distribution, including information on international laws and best practice.

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16. Pest Management in Crop Production: Heavy reliance on external inputs for crop production is a contributing factor to the creation of obsolete pesticide stocks. ASP will collaborate and coordinate its activities with the numerous agencies (e.g., FAO IPM Facility, Consultative Group on International Agricultural Research (CGIAR), International Centre of Insect Physiology and Ecology) promoting the development and implementation of IPM strategies that reduce reliance on external inputs such as pesticides.

17. Control of Migratory Pests: A major source of pesticide accumulation has been through emergency donations for the control of locust invasions and the inappropriate management of such stocks. ASP will help bring together donors and specialized international agencies (e.g., FAO Locust Program) in order to address this problem. It will also coordinate activities with the current Africa Emergency Locust Project. Coordination between the two projects will initially be most prevalent in Mali (the only country currently participating in both projects). The Africa Emergency Locust Project will also contribute to the regional knowledge as well as to a key cross-cutting study under CCAME envisioned for ASP-P1.

18. Pest Management in Animal Health: In the second part of the 20th century, livestock owners in East and South Africa relied on “dipping” to control tick-borne diseases. This practice is slowly being replaced by non-dipping technologies, but numerous contaminated sites are found throughout rural Africa. Cleanup of these sites is not part of ASP-P1.

19. Pest Management in Public Health, Structural and Industrial Uses: Pesticides are also used in public health (e.g., DDT for malaria vector control), for the protection of buildings, roads, power lines and other structures, and in industry for the protection of materials from pest attack. ASP will involve bodies responsible for the regulation, supply and use of pesticides as stakeholders in national forums addressing obsolete pesticides.

20. Stakeholder Involvement: ASP aims to ensure that stakeholders are appropriately included in all relevant processes related to ASP supported activities. To that end, one of the criteria which countries must meet in order to engage with the ASP is demonstrable stakeholder involvement and the creation of stakeholder forums for the guidance of ASP country projects.

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Annex 2: Major Related Projects Financed by the Bank and/or Other Agencies

Bank Operations

1. The following table summarizes related Bank Projects.

BANK PROJECTS TARGETED SECTOR ISSUES PERFORMANCE RATINGS

Mali : Agricultural Services and Producer Organizations Project P035630 – ongoing

Building capacity for pesticide management including obsolete pesticide inventories and cleanup for US$617,000.

Implementation Progress: Satisfactory

Development Objective: Satisfactory

Honduras:Urgent Tracking and Disposal of Hazardous MaterialsFunded with US$730,000 through the Dutch Trust Fund (TF021813)April 1999 – August 2000Closed

Groundwater and breast milk testing in contaminated areas. Inventory and removal of 104 tons of obsolete pesticides and other toxic waste, including POPs, following Hurricane Mitch. Also awareness raising, capacity building and public information campaigns.

Not rated

Burkina Faso, Chad, Mali, Mauritania, Niger, Senegal, The Gambia:Africa Emergency Locust Project P092473 – on-going

Reducing the hardships imposed on people and the environment from current and future locust invasions. The project includes emergency locust management; emergency agriculture investments; and establishing early warning and response systems in 7 countries for a total project cost of US$73.0 million.

Satisfactory

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Related Operations

2. The following table summarizes the related cleanup and prevention projects implemented by agencies other than the Bank.

AGENCY CLEANUP OR DISPOSAL ACTIVITIES

PREVENTION OR CAPACITY BUILDING AND AWARENESS

ACTIVITIESFAO Manage Ethiopia Pesticide Disposal Project

Initiate/coordinate national inventories of obsolete pesticide stockpiles. Initiate/formulate disposal projects for FAO member countries. Supervise/monitor/follow up disposal and prevention operations in Ethiopia.

Removal and disposal of obsolete pesticides from Iraq, Iran, Lebanon, Seychelles, Yemen, and Zambia. Engage donors in action to resolve obsolete pesticide problems.

Awareness raising workshops on obsolete pesticides in affected countries and regions. Guidelines on prevention and management of obsolete pesticides.Guidance and support for prevention programs and strategies in FAO member countries.

Global IPM Facility; International Code of Conduct on the Distribution and Use of Pesticides; Pesticides Management Programme; Joint Secretariat of the Rotterdam Convention on Prior Informed Consent (PIC); advice and support on pesticide regulation; regional programs on pesticides registration, e.g., Comité Permanent Inter Etat de Lutte contre la Sécheresse (CILSS), Inter-Organization Programme for the Sound Management of Chemicals (IOMC) member and co chair of IOMC working group on obsolete pesticides.

WHO

None.

Awareness raising through the WHO/ International Programme on Chemical Safety (IPCS). Epidemiology of pesticides Poisoning Project on health impact of pesticides and the IPCS INTOX Project.

UNEP Chemicals Inventories Russian Federation.Financial support for FAO work in Latin America.

Stockholm Convention Secretariat.Awareness raising. IOMC participation. Partnership in Secretariat of Rotterdam Convention.

UNEP / WHO (GEF funded, Council approved 2005)

None.

“Demonstrating Cost-effective and Sustainability of Environmentally Sound and Locally Appropriate Alternatives to DDT for Malaria Control on Africa” - Regional (Ethiopia, Eritrea, Madagascar, Namibia, South Africa)

UNEP / FAO (GEF funded, Council approved 2005)

None. “Reducing Dependence on POPs and other Agro-Chemicals in the Senegal and Niger River Basins through Integrated Production, Pest and Pollution

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AGENCY CLEANUP OR DISPOSAL ACTIVITIES

PREVENTION OR CAPACITY BUILDING AND AWARENESS

ACTIVITIESManagement” – Regional (Benin, Guinea, Mali, Mauritania, Niger, Senegal)

UNIDO – Ethiopia, Nigeria Tanzania, UNEP – Morocco, South Africa and Tunisia

None. Support of NIP National Coordinators to strengthen links with NIP process.

African Countries(South Africa, Botswana and others)

603 tons (Namibia, South Africa, Swaziland). Ethiopia – significant involvement and contribution “in kind” in disposal project management.

Improved pesticides regulation, IPM programs, reform of pesticide supply systems, engagement with international forums, e.g., Conventions, Sub-regional initiatives, e.g., CILSS pesticide registration program.

DANIDA Mozambique disposal facility investigated. None.

Danish Cooperation for Environment and Development

None.Southern African Development Coordination inventory.

Finnish Department for International Development Corporation

Nicaragua 1998 – carried out by Ekokem (Finnish disposal company). None.

GTZ Over 850 tons pesticide in Madagascar, Mauritania, Mozambique, Niger, and Zambia.

None.

Netherlands Funded FAO obsolete pesticides program since 1994. Funded national disposal programs in Cape Verde, Ethiopia, Mauritania, Senegal, Seychelles, Tanzania - Zanzibar, Yemen, and Zambia.Funded detailed inventory in Tanzania.

Support to the Global IPM Facility.

USAID / US Environmental Protection Agency

Contributed to disposal in Ethiopia, Niger, and Senegal.

Awareness raising and training for inventory taking.

CLI Financial support for destruction of stocks proven to be supplied by CLI member companies.

Technical Assistance (TA).

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AGENCY CLEANUP OR DISPOSAL ACTIVITIES

PREVENTION OR CAPACITY BUILDING AND AWARENESS

ACTIVITIESUNIDO

None.

Demonstration Project on non-combustion POPs destruction technology (Nigeria); Knowledge Sharing workshop on POPs for African NGOs (Arusha-Tanzania).

SecretariatBaselConvention

TA for the undertaking of the national inventory of obsolete pesticides in Mauritius.

Guidance on transboundary movement of obsolete pesticides. Technical guidelines on environmentally sound management of POPs (drafting stage). Awareness raising, policy making and training workshops.

PAN-UK Independent monitoring of Ethiopian Obsolete Pesticides Project.Engagement of Organization for Economic Cooperation and Development (OECD) Pesticides Forum on obsolete pesticides issues. Capacity building for NGOs in developing countries. Contribution to awareness raising in developing countries and among donors.

Promotion of safe alternatives to pesticide use. Guidance/awareness raising on health and environmental impact of pesticides.Training of local NGOs in monitoring, disposal and prevention. Lobbying for Implementation of Conventions (e.g., on POPs and Rotterdam Convention).

PAN-Africa Publications and awareness raisingPAN-UK, Safe Environment Group and PAN-Africa liaise to develop regional, networked NGO capacity in addition to specific in-country capacity-building programs.Conferences and meetings on stockpiles in West African region.

Guidance/awareness raising across Africa on health/environmental impact of pesticides. Lobbying for implementation of Conventions (e.g., Stockholm Convention on POPs and Rotterdam Convention).

WWF Engagement with Governments and NGOs on the implementation of the Stockholm Convention; Global Toxics Program.

Awareness-raising on issue of toxins and TA.

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Annex 3: Results Framework and Monitoring

Results Framework for the overall ASP-P1

PDO/GEO Outcome Indicators Use of Outcome InformationGEOReduce the quantity of POPs materials in Africa that could potentially leak and damage ecosystems locally and globally.

PDOElimination of publicly-held obsolete pesticide stockpiles and associated waste and reduction of future related risks.

Reduce risks to health and ecosystems from accidental leaks of POPs by helping selected African countries eliminate inventories of stockpiles of publicly-held pesticides and their associated waste and to help them avoid accumulating such stockpiles in the future.

Inventoried publicly-held obsolete pesticide stockpiles in 6 ASP-P1 countries eliminated13

(Goal = 100% removed).

Quantity of new publicly-held obsolete pesticide stockpiles(Goal = 0 stockpiles).

No further accumulation of publicly-held obsolete pesticide stocks.(Goal = 0 additional stockpiles).

Outcome information will be utilized for the design of the subsequent phases of the Africa Stockpiles Programme (ASP-P2, etc.) until all obsolete pesticide stocks have been removed from Africa.

Outcome information will also be very useful for developing similar multi-partner, multi-country projects in other regions.

13 Initial estimates have been provided by FAO and the countries which will be finalized as the first step of each country project within the first twelve months of implementation.

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Intermediate ResultsOne per Component

Results Indicatorsfor Each Component Use of Results Monitoring

Component 1:

Obsolete pesticide stocks identified accurately and disposed and prevention measures put in place.

An inventory database in place in 7 ASP countries, accepted by the ASP partnership and being used and updated by Government staff.

In case of accident, emergency plans successfully implemented.

Disposal contract completed in 6 ASP countries in line with national and international regulations.

Quantity of accumulation of new obsolete pesticide stockpiles minimized(Goal = 0 additional stockpiles).

Government adopts International Code of Conduct on Pesticide Distribution and Use14.

Will define specific ASP-P1 disposal activities and will be used for future management of stocks.

14 The International Code of Conduct covers issues such as the labeling, tracking and licensing of pesticides.

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Intermediate ResultsOne per Component

Results Indicatorsfor Each Component Use of Results Monitoring

Component 2:

Effective TA provided for implementation of project at the country level.

TSU fully funded and staffed by end of year 1.

Client satisfaction as determined by survey.

Preparation activities for ASP-P2 countries complete – national programs identified, selection conditions met, country counterparts in place and funding secured.

Annually: Feedback on the efficacy of TSU services.

Year 2- 4: Inform scope of future TSU support.

Component 3:

Capacity building for countries and cross-cutting for involvement of NGOs implemented effectively.

Strategic studies delivered, e.g., alternative disposal technologies and locust control issues assessed and adopted if ASP standards met.

NGO participation in project activities in all ASP-P1 countries participating in at least two of the following: awareness raising, monitoring, capacity building and communication.

Communication strategy implemented.

Contribute to design of future project components and activities.

Annually: Feedback on the efficacy of the CCAME services.

Component 4:

Effective coordination of all program components.

Monitoring reports delivered with sufficient data on time to GEF, donors and the Bank.

ASP-PCU moving to African organization within ASP-P1.

Annually: Feedback on the efficacy of the ASP-PCU services.

Mid-term: Inform preparation of follow-on projects and scope of future ASP-PCU support.

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Indicators Specific for the Morocco Country Project:

1. To track progress towards the desired outcomes of the ASP-P1 component (Country Operation), specific indicators have been developed for the Morocco Country Project as follows:

(a) Inventory database of Publicly Held Obsolete Pesticides stocks in place and being used by the PMU and stakeholders;

(b) Completion of a CESA and implementation of the measures contained therein;

(c) Inventoried Publicly Held Obsolete Pesticides stocks disposed of, as a result of the completion of the Disposal Services contract(s) in accordance with national and international laws and regulations;

(d) Legal and regulatory framework for pesticide management upgraded, including measures to strengthen compliance with the Conventions;

(e) The training program under Part D of the Project is implemented and the knowledge so acquired is being used by PMU and stakeholders; and

(f) The PMU is functional and its operation is satisfactory to the Bank.

2. The Technical Support Unit hosted by the FAO (ASP-P1 Component 2) is currently developing, under Word Bank supervision, a result framework for all country operations. The framework will include the key outcome indicators, annual targets, baseline situation, source of data, frequency of data collection, the strategic use of the data and entity responsible for collecting and reporting the data. The result framework will be finalized during the Moroccan project launch and included in the Project Operational manual.

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Arrangements for Results Monitoring for the overall ASP-P1

Outcome IndicatorsBaseLine (%)

Target Values Data Collection and ReportingYear

1Year

2Year

3Year

4Frequencyof Reports

Data Collection Instruments

Data Collection Responsibility

100% of inventoried publicly-held obsolete stocks in 6 ASP-P1 countries eliminated15. X16 0 40 90 100 Annually

Tracked using a risk analysis score developed by ASP

In-country: PMUASP-P1: TSU will consolidate for the ASP-P1

Results Indicatorsfor Each Component

Component 1:Inventory database in 7 countries in place and being used by Government staff.

0 75 100 100 100 Every 6 months

Bank Supervision missions TSU and ASP-PCU

CESA in 7 countries disclosed and activities implemented. 0 60 100 100 100 Every 6

monthsBank Supervision missions TSU and Bank

Quantity of new obsolete pesticide stockpiles, as per updated inventory X17 X X X 0 Annually Bank Supervision

missionsPMU, TSU and Bank

Disposal contract completed and in line with national and international regulation.

0 0 0 40 100 Annually

Database will be established in each country as a register of obsolete stocks

In-country: PMUASP-P1: TSU for consolidation ASP-wide

Government adoption of International Code of Conduct on Pesticide Distribution and Use.

0 0 20 50 100 Annually Annual reporting In-country: PMU

15 In Nigeria, regarding cleanup and disposal activities, only basic containment of obsolete pesticide stockpiles will be undertaken.16 This baseline is estimated at 5,000 tons. This figure will be confirmed through the inventory which will be completed within the first six months of each country project. These results are to be adopted by the government and ownership of privately-held stocks transferred to the government. 17 Baseline data and target value for the indicator will be provided as soon as the inventory is completed.

35

Outcome IndicatorsBaseLine (%)

Target Values Data Collection and ReportingYear

1Year

2Year

3Year

4Frequencyof Reports

Data Collection Instruments

Data Collection Responsibility

Component 2:TSU fully funded and staffed. 0 100 100 100 100 Annually TSU Annual reports and

work plansTSU responsible for reporting

Level of client satisfaction as determined by survey. 0 70 80 85 85 Annually Client survey and

progress reports ASP-PCU

Preparation activities for ASP-P2 countries complete. 0 0 0 40 100 Annual after

mid-termTSU reporting and work plan review TSU and ASP-PCU

Component 3:Final strategic studies delivered, e.g., alternative disposal technologies and locust control issues.

0 25 50 50 100

Annually CCAME (WWF) reporting and work program

WWF

NGO participation in Project activities in at least two of the following; awareness raising, monitoring, capacity building and communication.

0 40 40 60 100

Initially every 6 months then annually

CCAME (PAN-UK) reporting and work program and supervision missions

PAN-UK and PAN-Africa

Communication strategy implemented.0 40 60 80 100

Annually CCAME (WWF) reporting and work program

WWF

Component 4: Reports delivered with sufficient data on time to GEF, donors and the World Bank.

0 70 80 85 85

Annually Client survey, progress reports ASP-PCU

ASP-PCU moving to African organization within ASP-P1. 0 0 40 80 100

Mid-term and final

Readiness survey on capacity assessment ASP-PCU

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Annex 4: Detailed Project Description

Background

1. Overall, ASP-P1 consists of four components: (1) country operations; (2) technical support; (3) cross-cutting activities; and (4) project coordination. The Morocco Project fits into Component 1 of the overall ASP-P1.

ASP-P1 Component 1: Morocco Country Operations (Total: US$1.98 for the overall ASP-P1; GEF: US$4.0 million).

2. This is the principal component of ASP-P1 encompassing a full range of cleanup and prevention activities. This Component will receive the majority of support services provided by the remaining three components. The Morocco project is comprised of four sub-components:

a. Cleanup and Disposal Activities;

b. Prevention of obsolete pesticides Accumulation;

c. Capacity Building; and

d. Country Project Management and M&E.

Component A: Cleanup and Disposal (Total US$2.51 million; GEF: US$2.26 million)

3. The component include (a) detailed inventory of obsolete pesticides; (b ) an obsolete a pesticide risk assessment, the preparation of an environmental and social assessment (CESA) including and Environmental Management Plan (EMP), and (c) the environmentally sound disposal of all existing stocks of obsolete pesticides including contaminated containers. The Morocco PMU will be trained and given technical support to carry out the inventory and CESA, including an EMP immediately after the Project launch. The inventory will include a prioritization of storage and contaminated sites based on the level of risk they pose to populations and the environment. The inventory will also feed new data into the design of the cleanup and remediation operations in the Kingdom of Morocco

Component B: Prevention of obsolete pesticides Accumulation (Total US$0.78 million; GEF: US$0.55 million):

4. Activities in this component aim at preventing the recurrence of the accumulation of obsolete pesticide stocks. Efforts toward changing the behavior of the many related actors will primarily focus on capacity building, regulations and controls, pesticide management practices and awareness raising. Activities include:

(a) strengthen existing regulatory system for pesticide control;

(b) promote ongoing IPM efforts, particularly with small scale farmers;

(c) develop a communication campaign to raise awareness about pesticide impact and opportunities created by IPM; and

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(d) strengthen the capacity of the warehouses. This includes, limit reduce risks associated with storing pesticides (e.g. limited access, cement floors, better aeration, better lighting, clear warning signs, access to water, all necessary protective equipment, fire extinguishers).

Component C: Capacity Building (Total US$0.27 million; GEF: US$0.27 million):

5. Activities will include training and awareness campaigns for effective pesticide and other chemical management practices.

(a) training and awareness campaigns for environmental monitoring,;

(b) reinforcement of legal control of the pesticides and the homologation system of the pesticides; and

(c) development and implementation of a training program in pesticide storage management and Integrated Pest Management (IPM).

Component D: Project Management and M&E (Total US$1.84 million; GEF: US$0.35 million):

6. The problem of obsolete pesticide prevention is a multi-institutional effort, and as such, the PMU’s principal role is to ensure that relevant activities in the sector are well-coordinated, complement each other and develop strategic benefits. The PMU will rely on continuous M&E efforts to ensure that appropriate actions are taken within the various stakeholder agencies. The PMU will be responsible to implement the project activities, solicit external technical support, monitor and evaluate Project activities. The PMU will also coordinate fund raising efforts in order to continue expanding the prevention activities of the Project.

7. A SC will be established, representing key stakeholders, such as NGOs and the private sector, and overseeing the work of the PMU.

8. The Components of the ASP-P1, which will contribute to the implementation of the Morocco Project are listed below: B

ASP-P1 Component 2: Technical Support (Total: US$4.31 million for the overall ASP-P1; GEF: US$3.26 million)

9. The objective of this component is to provide technical and monitoring support to the country operations under Component 1. Component 2 has four sub-components:

(e) provide technical assistance to countries in the development of the Country OMs and the completion of preparatory activities related to training and capacity building (GEF: US$0.06 million, Co-financing: US$0.38 million);

(f) provide technical assistance to the six countries to implement disposal operations (GEF: US$0.93 million; Co-financing: US$0.10 million);

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(g) provide technical assistance to seven countries to build their capacity to prevent re-occurrence of the obsolete pesticide problem (GEF: US$0.93 million; Co-financing: US$0.54 million); and

(h) provide overall country M&E of country performance against agreed technical standards (GEF: US$1.3 million; Co-financing: US$0.03 million).

10. The TSU, which is hosted by FAO, will coordinate the technical input to country projects, and assure the technical quality of Country Projects and consolidate M&E data. The TSU will operate under the supervision of FAO in compliance with the rules and procedures of FAO.

11. The TSU will liaise directly with the country PMUs and closely with the Bank as per agreed work plans to ensure that the technical assistance needs of countries are met in a timely and efficient manner. The TSU will report on its progress and work plan to the ASP-PCU which in turn will consolidate activity reports for transmission to ASP donors and the ASP-SC. Because the Bank is responsible for the supervision of all GEF ASP country grants, the TSU and the Bank will work closely together to support countries.

12. Since the original project design, GEF has offered direct access to FAO for funding their POPs-related activities. Accordingly, FAO has now direct access confirmed for the TSU component of ASP and has presented its own Project Brief to GEFSEC in a joint submission with the Bank.

13. FAO will build the capacity of countries to safely and effectively undertake disposal activities by providing training and quality assurance. The training plans will be adapted to the specific needs of each country and training activities will include: preparation of training material and conduction of training on:

Sub-component 1: Preparation of Country Operational Manuals

14. This sub-component will support the seven countries to prepare Country OMs required for negotiations and to implement the project.

Sub-component 2: Preparation for Disposal of Obsolete Pesticides

15. This sub-component will coordinate delivery of a range of services to support the preparation of country operations to dispose of obsolete pesticides and will include the following activities:

(a) support the design of strategies for the effective and safe disposal of obsolete pesticide stocks and associated waste, health and safety plans;

(b) support the development of obsolete pesticide inventories by providing training, material, information and technical support for field activities;

(c) support the development of the CESAs including the EMPs;

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(d) contract preparation – the TSU will support countries in preparing technical specifications and carrying out technical evaluations for project managers, consultants and contractors for obsolete pesticide prevention and disposal activities. The Bank’s fiduciary responsibilities will not be infringed in this regard; and

(e) advise on alternative disposal options, targeted to specific country or site conditions.

Sub-component 3: Prevention of Accumulation

16. The prevention sub-component will coordinate delivery of a range of services that are required to support country prevention activities. It will include the following activities:

(a) support legislative and regulatory reforms to enhance pesticide management;

(b) support the identification of weaknesses in the enforcement of legislation and enhance enforcement measures;

(c) support the design of enhanced pest management strategies to improve efficiencies and to reduce reliance on pesticides in various sectors; and

(d) support the design and implementation of appropriate container management strategies.

Sub-component 4: Monitoring and Evaluation of Country Implementation

17. The activities under this sub-component include:

(a) support country project launch workshops and supervision support with the Bank at least twice per annum;

(b) support countries to implement the detailed M&E System and Enquiry System;

(c) support annual workshops for the PMUs on lessons learned; and

(d) support TSU Management, including overall coordination with other ASP units, administration of TSU activities, including procurement, reporting and financial administration.

ASP-P1 Component 3: Cross-Cutting Activities Management Entity (CCAME) (Total: US$2.44 million for the overall ASP-P1)

18. The objective of this component is to support ASP-P1 knowledge management, build the capacity of local NGOs in pesticide-related matters and to identify alternative disposal technology and practices. This component will be implemented by WWF and PAN-UK. It comprises three sub-components:

(a) communications and knowledge management;

(b) NGO capacity building; and

(c) strategic studies.

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19. The original plan to include a Competitive Grants component is not currently funded, but may be prepared and included in ASP-P2 programming as additional funds become available.

Sub-component 1: Communications and Knowledge Management (WWF)

20. The sub-component will coordinate a number of cross-cutting activities, required for the success of the ASP. The activities include:

(a) Communications: The communication strategy will be further defined during project implementation. It will include the design and distribution of ASP folders/documents, managing the ASP website and a media outreach service (e.g., field visits for journalists, information dissemination campaigns). The Bank will also provide media outreach and communications support to WWF due to its global reach.

(b) Knowledge management: A knowledge and information management system will be designed and implemented to store and retrieve key documents and information.

(c) Treaty ratification and coordination with chemical convention activities (in addition to POPs destruction options): Countries which have not yet signed or ratified the Stockholm Convention will be supported to do so. This is required by the GEF as a condition for country participation in ASP. Countries will also be supported financially to ratify the Rotterdam, Basel, and Bamako Conventions. This activity will also support coordination with related chemical convention issues including: NIP, inventory coordination, PIC information exchange and trans-boundary movement of waste issues.

(d) Private sector funding: WWF will solicit private sector financial support for ASP in cooperation with the Bank and FAO.

Sub-component 2: NGO Capacity Building (PAN-UK)

21. PAN-UK will lead these efforts in close coordination with PAN-Africa and WWF. The activities will include:

(a) NGO capacity building: NGO capacity to address pesticide management issues will be built through sharing lessons learnt at workshops, networking and coordination of NGO activities;

(b) preparing and disseminating operational guidelines for NGO involvement and training in ASP; and

(c) designing and implementing awareness raising activities and outreach program targeted at key stakeholders.

Sub-component 3: Strategic Studies (WWF)

22. The sub-component will include preparation of strategic studies in close collaboration with regional partners on topics common to the entire project, such as environmentally

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sustainable locust control and the safe maintenance of emergency pesticide stocks for the control of locust outbreaks, malaria, dengue fever and other pest-vector diseases. Activities will include:

(a) identifying alternative disposal technologies for obsolete pesticides and remediation of contaminated soils and water resources; and

(b) identifying environmentally sound locust control strategies and the safe maintenance of emergency pesticide stocks for the control of locust outbreaks, malaria, dengue fever and other vector-born diseases.

ASP-P1 Component 4: Project Coordination (Total US$2.44 million for the overall ASP-P1)

23. The objective of this component is to ensure overall coordination of the ASP-P1 including the other three components and their activities. The ASP-PCU will initially be hosted by the Bank. It is anticipated that following the successful completion of ASP-P1, or earlier, the ASP-PCU will be transferred to an African organization. NEPAD has been identified as a potential host. The Bank is channeling DGF funding to DBSA for capacity building activities of NEPAD. The three components of the ASP-PCU include the following:

Sub-component 1: Governance and Coordination

24. The ASP-PCU will be responsible for supporting the overall governance arrangements of the ASP including the ASP-SC. In addition, the ASP-PCU will coordinate the efforts of the partners to design subsequent ASP projects. The main activities under this sub-component will include:

(a) providing secretarial support for the ASP-SC;(b) coordinating preparation for ASP-P2;(c) ensuring effective management of ASP financial resources and maintaining an audit

regime in cooperation with the Bank; and(d) promoting ASP and liaising with donors and recipient countries.

Sub-component 2: Project Monitoring and Evaluation

25. The ASP-PCU will establish and implement the overall ASP M&E system in order to ensure that the Project is successfully implemented to achieve the PDO and those resources are being used efficiently and effectively. It will do this through consolidating individual FMRs and monitoring Project progress against the project Results Framework and each component against its overall Project Results Framework and Workplan. It will provide bi-annually consolidated ASP progress reports and work plans with recommendations to the ASP-SC and to donors and partners for information.

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Sub-component 3: ASP-PCU Management

26. Funds from the MDTF will financially support the ASP-PCU in order for it to perform its central coordination functions. NEPAD will be provided with a capacity development grant from the DGF so that it will be prepared to take on increasing responsibility throughout the life of ASP-P1. The ASP-PCU will produce a bi-annual work plan and project progress report supported by a project FMR for the ASP-SC, and all other partners. The report will be based on the inputs provided from the various partners.

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Annex 5: Project Costs

Item Amount (US$)GEF Gov Total

COMPONENT A: Clean Up and Disposal 2,265,000 250,000 2,515,000

Inventory (14 teams of 4 people) 165,000 250,000 415,000Collection and Disposal of pesticides 2,100,000 2,100,000

COMPONENT B: Prevention of obsolete pesticides Accumulation

550,000 230,000 780,000

Environmental and Social Assessment (including EMP)

150,000 50,000 200,000

Training 200,000 200,000Communication activities + production of audio-visual aids

100,000 100,000 200,000

Awareness on Integrated Pest Management 60,000 50,000 110,000Awareness on Integrated Vector Management 40,000 30,000 70,000

COMPNENT C: Capacity Building270,000 0 270,000

Agriculture 140,000 140,000Environment 50,000 50,000Regulatory framework enhancement 25,000 25,000Strengthening homologation system 25,000 25,000NGO support 30,000 30,000

COMPONENT D: PMU Coordination 345,000 1,500,000 1,845,000

Consultants 85,000 85,000Transportation (vehicles, gas and maintenance) 140,000 600,000 740,000Office and computer equipment 20,000 500,000 520,000Office supplies 20,000 100,000 120,000Workshops and seminars 50,000 300,000 350,000Travel expenses / per diem 30,000 30,000

Total3,430,000 1,980,000 5,410,000

Contingencies 570,000 570,000

Total Grant Agreement 4,000,000 1,980,000 5,980,000

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Annex 6: Implementation Arrangements

Background

1. ASP-P1 institutional and implementation arrangements rely on close cooperation between the ASP partners. Overall coordination of the ASP will be the responsibility of the ASP-PCU. The Country PMUs are responsible for implementation of Component 1. The TSU (hosted by FAO), and CCAME (hosted by WWF/PAN-UK) will support the countries in implementation through providing, inter alia, technical assistance, support for prevention activities and information dissemination. Overall coordination and oversight will be provided by the ASP-PCU, to be established initially in the World Bank and then moving to an African organization. (NEPAD is receiving DGF funds to build its capacity as a possible candidate). The ASP Unit at the World Bank provides continuous management of project activities and supervision of funds.

2. These arrangements are based on the comparative advantage of each partner and responds to the need to: ensure country implementation capacity and ownership; technical support for country project implementation; sound communication and NGO support; coordinated and effective implementation between the partners; and effective supervision and management of donor funds.

Implementation and Institutional Arrangements for the Morocco Country Operation

3. In order to implement the Morocco Country Project, Morocco will establish a PMU, which will be supported by a Steering Committee (SC).

Project Management Unit (PMU)

4. In the Kingdom of Morocco, the PMU will be established in the Direction de la Protection des Végétaux, des Contrôles Techniques et de la Répression des Fraudes (DPVCTRF) of the Ministère de l’Agriculture, du Développement Rural et des Pêches Maritimes (MADRPM). Activities will be closely coordinated with the Directorare for Risk Prevention and Monitoring (Direction de la Surveillance et de la Prévention des Risques - DSPR of the Ministry of Land Management, Water and Environment (Ministère de l’Aménagement du Territoire, de l'Eau et de l'Environnement).

5. The PMU will be staffed through work program agreements with Government staff who will assign a proportion of their time to the PMU’s work. The PMU will include the following positions; (i) a Project coordinator; ii) an Environmental specialist; (iii) a Pesticides specialist; iv) a communication and sensibilization specialist; (v) a M&E specialist; and (vi) a Prevention specialist and (vii) a finance, procurement and administration specialist. Some of these posts may be supported by individual consultants where a need for them is identified. Technical support will also be provided by the TSU according to an agreed work plan.

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6. The PMU will be responsible for supporting and coordinating all technical aspects of Project implementation, described under the Country Operations Component (Annex 4); and Project management, including:

(a) coordinating project implementation within Government and programming of external inputs, including from the TSU; submitting to the Bank for review and clearance all reports related to the project;

(b) ensuring sound FM and proper documentation of receipt and expenditure of funds, as well as the provision of external annual audit reports to the Bank;

(c) preparing the annual, bi-annual work plans and progress reports, mid-term review report and quarterly FMRs. The SC and TSU will receive copies of the work plans, the progress reports and the mid term review. The ASP-PCU and the Bank will receive these reports together with the Quarterly FMRs;

(d) updating and implementing the 18 month procurement plan, and submitting it to the Bank for approval;

(e) project M&E, including updating of the management information system;

(f) ensuring preparation, approval and implementation of the CESA including an EMP, before disposal operations commence;

(g) updating the Country OM, and ensuring implementation of the Project according to the procedures contained in the Country OM; and

(h) ensuring that the Project is implemented in accordance with agreed occupational health and safety procedures.

National Steering Committee (NSC)

7. The SC will be chaired by the Minister of Agriculture, Rural Development and Fisheries, or his representative. The DPVCTRF will serve as the Secretariat. The SC will include representatives from the departments of Agriculture (DPVCTRF), Land Management, Water and Environment (DSPR), Public Health (Direction de l’Epidemiologie et de la lutte contre les maladies), Finance and Privatization, Interieur (DGCL, Protection Civile), Industry and Trade, GEF Focal Point, NGO’s Representatives, Pesticide industry representatives, and any other relevant person who the Chairmen of the SC can invite.

8. The NSC will meet every six months. The main functions of the SC will include:

(a) approving the annual and bi-annual work plans and progress reports prepared by the PMU;

(b) monitoring Project finances;

(c) supporting and coordinating Government efforts to implement the Project; and

(d) monitoring and advising on Project implementation, including against the indicators contained in the Grant Agreement, and the EMP.

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9. The SC will report to the relevant Minister by, among other things, providing him or her with copies of the minutes of the SC meetings.

Implementation and Institutional Arrangements for Overall ASP-P1

The ASP-Steering Committee (ASP-SC)

10. This will be an advisory structure to the ASP partners including the Bank and FAO. It will comprise of a membership of 10-15 persons representing: ASP core partners, including the seven ASP-P1 countries, NGOs, NEPAD Secretariat, AfDB, donors, key UN agencies and Convention Secretariats. The ASP-PCU will act as a secretariat to the ASP-SC. The ASP-SC will decide on its rules of procedures at its first meeting. The ASP-SC will meet once a year and will be responsible for:

(a) reviewing and advising on overall project implementation progress and work plans, including review of the overall annual ASP-P1 work plan and progress report and related financial status report prepared by the ASP-PCU;

(b) reviewing and advising on fund-raising progress; and

(c) advising on any other critical key issues important to successful implementation of the Project.

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ASP Governance and Project Implementation Arrangements

ASP-Project Coordination Unit (ASP-PCU)

11. The ASP-PCU will be responsible for coordinating the implementation of the ASP between the partners and ensuring good governance. It will not be responsible for performing Bank supervision, nor will it fulfil the Bank’s fiduciary responsibilities. The Bank will initially host the ASP-PCU before transferring it to an African Organization like NEDAP. The ASP-PCU will include a coordinator, a finance specialist, and an administrative assistant/information analyst. Selection of ASP-PCU staff will be on a competitive basis. The ASP-PCU will be assisted by a variety of consultants (e.g., independent M&E, logistical support staff, and facilitators for workshops).

12. The ASP-PCU will be responsible for the results of Component 4, Project Coordination. More specifically, the ASP-PCU will be responsible for:

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(a) coordinating project implementation between the partners. It will do this by providing bi-annual ASP-P1 work plans and progress reports to the ASP-SC and the project partners;

(b) preparing consolidated FMRs for submission to the Bank;

(c) convening the ASP-SC;

(d) coordinating the design and preparation of the ASP-P2;

(e) coordinating a fund raising strategy between the partners;

(f) coordinating the independent M&E of the ASP-P1; and

(g) ensuring effective communication between the partners.

Technical Support Unit (TSU)

13. FAO will host the TSU and be responsible for providing high level technical support to countries as detailed in Annex 4. The FAO will provide the necessary internal controls to manage the TSU. The TSU will prepare its bi-annual work plans in cooperation with the seven countries as well as with the ASP-PCU and the Bank.

14. The TSU will submit bi-annual progress reports using the standard FAO format and containing (i) actual implementation of activities compared to the work plan; (ii) identification of problems and constraints; (iii) recommendations for corrective measures; and (iv) detailed work plan for the following reporting period. The TSU will also submit FMRs to the ASP-PCU in order to monitor project expenditures and budget forecasts.

15. The TSU will be coordinated by a senior specialist who will be responsible for budget management, operational activities, and staff management. An additional senior specialist will be posted in South Africa and will coordinate technical inputs to ASP-P1 countries. Other specialists will be recruited to coordinate M&E at the country level and prevention activities. The TSU will be supported by administrative assistants. In addition, the TSU will hire consultants as needed for specific tasks such as training and updating of manuals and guidelines.

16. The TSU coordinator will liaise with the ASP-PCU on programmatic issues and will maintain direct contact with ASP partners, donors and countries in order to ensure all technical issues are adequately addressed and technical inputs are coordinated. Within ASP-P1 the TSU will liaise directly with the PMUs ensuring that the needs of the countries for technical support are met in a timely and efficient manner.

Cross-Cutting Activities Management Entity (CCAME)

17. The CCAME will provide a support service, covering matters such as knowledge management, awareness-raising and strategic studies for the Project, as described in Annex 4. WWF and PAN-UK will execute this project function for ASP-P1, and will work closely with countries to support communication and knowledge management activities.

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18. WWF staff will include a director, senior program officers, senior administrative assistant and a senior program officer who will be located in the WWF Africa regional office (all are part-time positions). WWF will mobilize their existing in-house capacity, e.g., WWF communications staff and staff from regional offices, and hire consultants for specific studies. PAN-UK will closely coordinate implementation of capacity building and communications activities with PAN-Africa. CCAME will submit bi-annual reports to the ASP-PCU.

ASP Unit

19. The Bank will establish an ASP Unit, supported by staff in MNA and Africa Regions, based on the current Project preparation team. The rationale for this is that the Project will comprise of six GEF Grant Agreements and four other trust fund agreements. This will entail support to different entities including the current seven countries with follow-up ASP-P2 support envisaged for another eight countries. In addition, the Project involves two Bank regions: MNA and Africa. The proposed ASP Unit will serve the following functions:

(a) coordinating Bank project supervision and compliance with fiduciary requirements and legal covenants, supporting project launch workshops, a mid-term review and production of the Implementation Completion Report;

(b) reporting to donors, establishing new trust funds and negotiating grant agreements;

(c) supporting the development of the ASP-PCU; and

(d) supporting the development of ASP-P2.

20. In order to support the above, a dedicated three person unit is required. This will comprise of a Coordinator, an operations officer and an Administrative and Client Support staff member. The ASP Unit will be supported by 60% of the time of a staff member from the Africa Region. The ASP Unit will also be supported part-time by identified FM staff from MNA and Africa Region Departments. While the GEF Grant Agreements are being negotiated, the same Bank preparatory team will, where possible, be used for negotiating all agreements. For countries in the Africa Region, the negotiations packages will be cleared by the Africa Director Regional Integration and for MNA by the Country Director. As each country operation moves into project implementation phase, the procurement, disbursement, FM, safeguards and country-specific TTL functions will be provided by the relevant country team staff, backed up by the ASP Unit. Project supervision will be initiated with workshops at Project launch, and followed up with six monthly project supervision missions. A mid-term review will be held and a project closure report produced. The ASP Unit will be based in Washington and will report to the Sector Manager, AFTS4.

Monitoring and Evaluation

21. ASP’s objective is to continually improve its standards of operation and to minimize the potential for adverse impacts on human health and the environment. In addition, ASP-P1 aims to reduce the implementation costs of future country projects through the utilization of capacity developed during ASP-P1. Budgets for the Monitoring and Evaluation (M&E) functions have been allocated at the overall Program level and at the operational component levels in each

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country. The M&E responsibilities are fully described in the Generic OM and will be detailed for the individual countries with information about the budget allocation in the individual Country OMs. ASP M&E functions will take place at both the Program level and the Country level:

22. ASP Program Level: The TSU is responsible for the consolidation and management of all ASP-P1 M&E technical data. A TSU M&E Officer will work in close collaboration with the PMUs to ensure the M&E process is as simple and streamlined as technically possible. The TSU will complete two M&E missions annually. M&E reports will use standardized formats. Once complete, the reports will be passed to the M&E focal point within the PMU for review, consolidation and evaluation, including comparative evaluation within ASP-P1 countries. Budget for the TSU M&E officer, supervision missions, the development of an M&E system and training for Country PMUs are included in the FAO budget for the TSU. The TSU will publish technical M&E data on the Web and develop reports for the ASP-PCU. The ASP-PCU will also provide guidance to ASP-P1 countries on the M&E process for ASP’s financial aspects, including budget utilization, and actual costs versus budgeted costs. In addition, the ASP-PCU will be responsible for the final review of financial data and the consolidation of technical and financial reports to be forwarded to ASP-SC.

23. Independent Project Monitoring: The ASP-PCU will hire the international Independent Project Monitor in coordination with ASP Unit. US$200,000 has been allocated for this task as part of the ASP-PCU budget. In addition, the use of international and national NGO monitors will provide an important independent assessment of the project to improve timeliness and performance efficiencies. The TORs include review and evaluation strategies for enhancing national capacity. In particular, a yearly evaluation of the progress and management of the ASP will be prepared by the evaluator in advance of each meeting of the ASP-SC, and submitted to the ASP to facilitate its work. The evaluation will include an assessment of the quality of coordination of the various entities involved in managing ASP activities - the TSU, PCU, and CCAME, and the effectiveness of the programme in providing timely financial and technical assistance to the participating countries.

24. M&E in the ASP Unit: The ASP coordinator and staff involved in the day-to-day supervision and supervision missions continually monitor, evaluate, and record observations as part of program management for project implementation. Adequate GEF BB budget has been allocated to accomplish this task.

25. M&E at the Country-Level: At the country level, the PMUs will identify a country focal point for M&E activities and develop detailed M&E arrangements with budget allocations as part of their Country OM. Furthermore, the CCAME will be conducting continuous training workshops for local NGOs to build up their capacity in conducting monitoring operations at the local level. All M&E data collected at the country level will be submitted to the TSU and ASP-PCU for consolidation. This will allow the TSU to identify common problems and develop lessons learned for ASP-wide dissemination and use.

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Annex 7: Financial Management and Disbursement Arrangements

Background

1. A Financial Management (FM) assessment was conducted for the Government of the Kingdom of Morocco and was found satisfactory to the Bank. The Project risk from a FM perspective is considered as moderate. The summary of the main risks identified and the measures to mitigate these risks is as following:

(a) At the country level: Risk to Project funds arising from outside environment is considered as moderate. The delays in commitment and payment noted in the Country Financial Accountability Assessment (CFAA) may have a possible impact on disbursement. The prefinancing system on the budget funds used in the Kingdom of Morocco may imply an additional delay between payments and disbursement. Clear reporting procedures must be defined to optimize the monitoring of disbursement.

(b) At the project level: There may be potential delays in reporting and monitoring project transactions. Clear reporting procedures must be defined between the two implementing agencies, the Ministry of Finance and PMU. The continuing adequacy of the FM system must be monitored during supervision missions and FMRs reviews.

Insufficient human resource capacity may be a possible risk if the PMU is not staffed with qualified agents. At the PMU level an FM staff member must be appointed to support the executing agencies. This staff must have skills in accounting, project management and IT (Excel) and will be responsible for financial project monitoring, maintaining financial reporting and preparing all consolidated FMRs. To conduct these tasks, this staff will be trained to disbursement and reporting procedures specific to Bank financed project. This FM staff will rely on the existing procurement and accounting services of each executing agency, which have the primarily responsibility of these two functions.

Flow of Funds

2. Bank accounts and disbursement procedures: The Kingdom of Morocco will access the funds of the GEF after signing appropriate grant agreement in line with the Bank-Donor signed bilateral administration agreement.

3. The Proceeds of the Grant would be disbursed in accordance with the traditional Disbursement procedures of the Bank and will be used to finance project activities through the disbursement procedures currently in use: i.e. Withdrawal Applications for direct payment, for Special Commitments and/or reimbursement accompanied by appropriate supporting documentation or using Statements of Expenditures (SOEs) in accordance with the procedures described in the Disbursement Letter and the Bank's "Disbursement Manual". The Budget Directorate within Ministry of Finance will be responsible for (a) submitting to the Bank the appropriate supporting documentation for reimbursement of eligible expenditures incurred directly to the State Budget or for replenishment of the Special Account, or (b) submitting

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Withdrawal Applications for direct payment to the Bank accompanied by the necessary supporting documentation. The Kingdom of Morocco has sufficient experience with Bank financed operations and disbursement policies and procedures, no major difficulties are expected in the flow of funds.

4. Special Account (SA): To facilitate disbursement of eligible expenditures the Borrower will open and maintain a Special Account in Moroccan Dirhams with the Trésorerie Générale du Royaume to cover Grant's share of eligible Project expenditures. The Authorized allocation of the SA would be the equivalent of an estimated four (4) months' of eligible expenditures financed by the Grant. The Recipient will be responsible for submitting monthly replenishment Withdrawal Applications with appropriate supporting documentation for expenditures incurred and will retain and make the documents available for review by the Bank supervision mission and project auditors. The supporting documentation will include reconciled bank statements and other documents as may be required.

5. Use of Statement of Expenditures (SOEs): All applications to withdraw proceeds from the Grant will be fully documented, except for: (i) expenditures of Contracts for (a) Goods costing less than US$500,000 equivalent per Contract; (b) services of individual consultants costing less than US$50,000 equivalent per contract; (c) services of consulting firms under contracts costing less than US$100,000 equivalent per contract; (d) training and workshops; and (e) Operating Costs. Documentation supporting expenditures claimed against SOEs will be retained by the Recipient and will be available for review when requested by Bank supervision missions and Project Auditors. All disbursements will be subject to the conditions of the Grant Agreement and the procedures defined in the Disbursement Letter.

6. Staffing Arrangements: An FM staff must be appointed in the PMU with clearly defined TORs. This staff will (a) assist the existing staff in the executing agencies including in updating the FM manual; (b) be responsible for financial project monitoring and coordination including financial reporting; and (c) preparing all consolidated FMRs. To conduct these tasks, this staff must have skills in accounting, project management and IT (Excel) and will also be trained to disbursement and reporting procedures specific to Bank financed project. This FM staff will rely on the existing procurement and accounting services of each executing agency, which have the primarily responsibility of these two functions.

7. Accounting Policies and Procedures: The official accounting system maintained by the executing agency is based on a cash basis following outline of budget components given in decree no. 330-66 of April 21, 1967 which includes basic rules for Government accounting. All project funds will be maintained through this public accounting system. For the project needs, a cash basis of accounting is required by every PMU and the calendar year is January 1 through December 31. For the Kingdom of Morocco, a specific project reporting will be maintained by the PMU FM staff using a manual information system and based on the specific project chart of account that will be drawn up using the cost tables of all participating countries. For that, the PMU staff will rely on the executing agencies procurement and accounting services and will coordinate with the Ministry of Finance. Reporting procedures for the project (including financial reporting and FMR format) are described in the Morocco OM and will be further detailed by the FM consultant during his mission in the PMU.

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8. Information System: The project accounting records will be maintained using a conventional Excel spreadsheet. The accounting period for the Kingdom of Morocco will follow the period beginning January and ending December of each year. As the SA will be held in Moroccan dirhams, accounts will be maintained in this currency.

9. Reporting and Monitoring: The unit in charge of FM within the PMU will coordinate the project activities and will be responsible for consolidating financial reporting for both executing agencies and submitting consolidated bi-annual FMRs and annual project financial statements to the Bank. At the end of each semester, the following reports should be prepared and submitted to the Bank and ASP-PCU for consolidation no later than 45 days after the end of each calendar semester:

(a) financial reports consisting of the sources and use of funds and cash balances of the project and SA statement duly reconciled when applicable ;

(b) physical progress reports; and

(c) procurement reports.

10. A consolidated FMR will be provided by the ASP-PCU to the Bank within 60 days after the end of each calendar semester. In addition to the bi-annual reports mentioned above, project financial statements should be prepared at the end of each financial year (December 31), incorporating these financial reports and a statement of the cash position for project funds from all sources, when applicable, a statement reconciling the balances of the various bank accounts to the bank balances and notes to the financial statements. The format of these FMRs has been discussed during appraisal based on the “Government of Atlantis” Sample from the Guideline to Borrowers and adapted to the Moroccan context.

11. Audit: Internal audit functions may be carried out by the “Inspection générale” in the Ministry of Finance.

12. Audited Project Financial Statements will be submitted to the Bank within six months after year end December 31.

13. In addition to expressing an opinion on the Project Financial Statements in accordance with International Standards on Auditing, the auditors will be required to comment on whether counterpart funds have been provided regularly and used in accordance with the Grant Agreements.

14. In addition to the audit report, the auditors will be expected to prepare management letters giving observations and comments, and providing recommendations for improvements in accounting records, systems, controls and compliance with financial covenants in the Grant Agreements.

15. Supervision Plan: Supervision activities will include: review of financial projections or forecast for the Project, the procurement plan, the format and content of auditing arrangements,

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measures of physical progress, the criteria for following up variances between planned and actual costs and physical progress. At minimum, two supervision missions a year are required.

Disbursement Arrangements

16. Disbursement: The Budget Directorate within the Ministry of Finance will manage all the disbursements. Disbursements under the ASP-P1 will be made largely through transaction based disbursement using withdrawal applications supported by Statements of Expenditures. Each executing agency will be responsible for issuing and sending SOE to the PMU which will send them to the Budget Directorate. For replenishment of the SA, the Budget Directorate will issue and send a withdrawal application to the Bank. The Budget Directorate will send withdrawal applications to the Bank for direct payments to suppliers and consultants. Supporting documents will be maintained by each executing agency in the accounting services and made available to the Bank’s visiting missions and auditors as required.

17. Allocation of Grant Proceeds to Countries: The GEF Grants will be disbursed over a period of four years, or such period as may be agreed with the Bank.

18. Special Account: In order to ensure timely provision of funds to finance eligible expenditures under the grants, a special account will be opened in Moroccan Dirhams at the Trésorerie Générale du Royaume (TGR). The initial deposits into these accounts will be as indicated in the respective Grant Agreement with the five Governments. In the Kingdom of Morocco, there is no project account opened for counterpart funds.

19. Disbursement Procedures: Disbursement and withdrawal procedures are detailed in the Bank Disbursement Handbook. All disbursements will be governed by the conditions in the Grant Agreements and the procedures in the Disbursement Letter sent to the Budget Directorate within the Ministry of Finance. These will include the remedies available to the Bank in cases of ineligible expenditures made from the SA, the SA remaining inactive, or when the reporting requirements are not complied with.

20. Disbursement Categories: The category “Disposal Services” was agreed upon between the Africa and MNA Region. The procurement process under “Disposal Services’’ would commence with a pre-qualification exercise similar to the one used for civil works, i.e., it would be an open application process and all applicants who can meet the pre-qualification criteria would be pre-qualified and subsequently invited to bid. Since the Bank has no off-the-shelf standard bidding documents for these “Disposal Services’’, it would be necessary to develop them based on other available documents, including the sample document “Procurement of Non-Consultant Services”.

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21. The table below sets forth the Categories of items to be financed out of the proceeds of the Grant, the allocation for each Category and the financing percentage set at 100 percent:

CategoryAmount of the

GEF Trust Fund Grant Allocated

(Expressed in US$)

% of Expenditures

to be Financed

(1) Goods 280,000 100%

(2) Consultant Services, audit, training and workshops

860,000 100%

(3) Disposal Services 2,100,000 100%

(4) Operating Costs 300,000 100%

(5) Unallocated 460,000

TOTAL 4,000,000

22. Operating Costs” means incremental operating costs on account of Project coordination, implementation, and monitoring activities carried out by the PMU including office supplies, office rent, utilities, printing, advertising, per diems, bank charges, maintenance and operation of Project motor vehicles, but excluding the salaries of the Recipient’s civil service.

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Annex 8: Procurement

General

1. Procurement for ASP-P1 will be carried out in accordance with the World Bank’s “Guidelines: Procurement under IBRD Loans and International Development Agency (IDA) Credits” dated May 2004; and “Guidelines: Selection and Employment of Consultants by World Bank Borrowers” dated May 2004; and the provisions stipulated in each Grant Agreement. For each contract to be financed by the grant, the different procurement methods or consultant selection methods, estimated costs, prior review requirements, and time frame will be agreed between the Recipient and the Bank and recorded in the Procurement Plan. The Procurement Plan will be updated at least bi-annually, or as required, to reflect the actual project implementation needs and improvements in institutional capacity. Where applicable, the Bank's Standard Bidding Documents for goods and works and Standard Requests for Proposals for Consultants, as well as all standard evaluation forms, will be used throughout project implementation. Other bidding documents which do not follow Bank standards, including national bidding documents, may also be acceptable, provided they are reviewed by the Bank, prior to their first use.

2. Advertising: A General Procurement Notice will be published in the dgMarket online, and UN Development Business (UNDB) online. Extracts of this GNP will also be published in a national newspaper. In addition, Specific Procurement Notices (SPN), to be published in dgMarket online and UNDB online for International Competitive Bidding (ICB) for goods is required. Expressions of Interest (EOI) for consulting services with an estimated value in excess of US$200,000 will also be advertised in the same manner. All ICB and National Competitive Bidding (NCB) procurement of goods and all Requests for EOI will be advertised locally too. Contract awards will also be published in UNDB and dgMarket, in accordance with the Bank’s Procurement Guidelines (para 2.60) and Consultants Guidelines (para 2.28).

3. Summary of Institutional Responsibility: The Project will be managed by a Project Management Unit (PMU). Although the PMU will have a global supervision and consolidation role, procurement will be carried out by the two implementing agencies: DPVCTRF and DSPR. Except for consultant services for capacity building activities at the Ministry of Land Management, Water and Environment and some minor equipment procurement, all other procurement activities will be carried out by DPVCTRF.

4. Procurement of Goods: Goods procured under this project will include office equipment, computers, vehicles, field instruments (GPS, digital cameras, etc.), packaging, protective clothing, and specialty drum cleaning equipment. Contracts for goods estimated to cost less than US$500,000 may be procured using NCB. Contracts for goods estimated to cost less than US$50,000 may be procured using shopping. For ICB, the Bank’s SBDs - Procurement of Goods will be used. For NCB, national or other bidding documents may be used, provided they have been reviewed by the Bank and found acceptable, before their first use. To the extent possible, goods will be grouped into contract packages estimated to cost the equivalent of US$500,000.

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5. Direct Contracting for Goods: Goods and works which are specialized or of a proprietary nature costing less than US$10,000 may, with the Bank’s prior agreement, be procured in accordance with the provisions of paragraph 3.6 of the Guidelines.

6. Procurement of Disposal Services: Non-consulting services under this Project include disposal of obsolete and buried pesticides and disposal of containers. It may also include safeguarding of obsolete pesticides (repackaging) as well as their transport. Pre-qualification of service providers will be mandatory under the grant agreements, since these services are very specialized and require close familiarity with applicable international standards. A special pre-qualification document, modeled after the Bank’s pre-qualification document for works, will be developed and used. This pre-qualification document will reflect the standards for disposal of obsolete and buried pesticides and will be approved by the Bank. Only providers who can demonstrate that they have the requisite capabilities and historical record to comply with these standards will be pre-qualified and invited to bid. Providers may be single firms or joint ventures of several firms. The FAO-TSU will provide technical support for the pre-qualification, bidding and execution of these specialized services. A special bidding document for disposal services modeled after the Bank’s trial edition of such document will be developed, used and furnished to the pre-qualified providers.

7. Selection of Consultants: Consulting services under this project include:

(a) Country Environmental and Social Assessment;

(b) Elaboration of a national strategy for pesticide stocks management;

(c) Carry-out of training and/or awareness workshops on pesticide inventory, management and disposal, promotion of alternative methods to use of pesticides, prevention and safeguard measures, etc;

(d) Study about the legal controls of pesticides and reinforcement of pesticide homologation systems; and

(e) Capacity building services at the Ministry of Land Management, Water and Environment.

8. The selection of consultants for contracts estimated to cost more than US$100,000 will follow the Quality and Cost Based Selection method (QCBS). The selection of consulting firms for contracts estimated to cost less than US$100,000 may follow the Consultants Qualifications Method (CQS). Services for assignments in which (i) teams of personnel are not required; (ii) no additional outside (home office) professional support is required; and (iii) the experience of qualifications of the individual are the paramount requirement may be procured under contracts awarded to individual consultants, in accordance with the Section V of the Consultant Guidelines. All Single-Source Selections (SSS) will have to satisfy the requirements of paragraphs 3.9-3.13 of the Guidelines. The appropriate selection method for each consulting contract will be recorded in the Procurement Plan according to the aforementioned thresholds.

9. The short list of consultants for services estimated to cost less than US$100,000 may comprise entirely national consultants.

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10. Summary Assessment of Agencies Capacities to implement procurement:

(a) DPVCTRF, through the Procurement Desk (Bureau des Marchés) of its Administrative and Financial Service, will be responsible for procurement of services, goods, and all other consulting services for all components except those mentioned under (b) hereafter. As of today, DPVCTRF has a limited number of staff able to manage procurement aspects. The staff has a good knowledge of national procurement but has no recent experience on Bank financed projects. The capacity of DPVCTRF represents an average procurement risk.

(b) DSPR of the Ministère de l’Aménagement du Territoire, de l’Eau et de l’Environnement (Moroccan Ministry of Land Management, Water and Environment (MATEE) will be responsible for procurement of consulting services for the capacity building of the Ministry’s staff and of procurement of some goods. The number of transactions at this level is expected to be low. Procurement at this level will be carried out by the Procurement Service (Service des Marchés) of the Administrative and Financial Division of the Ministry. The staff is in charge of the procurement of the whole Ministry and has a satisfactory capacity. Nevertheless, they have no recent experience on Bank financed projects. Given the number of transactions to be carried by this agency, the procurement risk is considered to be low.

(c) The national legislation on procurement of goods and works, with some exceptions, is generally in line with the Bank’s guidelines. This is not the case for the selection and employment of consultants which will be carried out according to Bank Guidelines.

11. National Competitive Bidding (NCB) Provisions: Goods estimated to cost less than US$500,000 per contract may be procured under contracts awarded on the basis of National Competitive Bidding in accordance with procedures acceptable to the Bank. Said procedures shall ensure, inter alia, that:

(a) The bidding documents shall clearly explain the method of bidding by lot (if applicable), the bid evaluation procedures, contract award criteria and bidder qualification criteria;

(b) Technical, administrative and financial envelopes are publicly and simultaneously opened with the price read aloud and recorded;

(c) Bids shall be evaluated on price and any other criteria disclosed in the bid documents and quantified in monetary terms;

(d) Contracts are awarded to the qualified bidder following the criteria referred to in the preceding sub-paragraph (i), with the lowest evaluated responsive bid;

(e) The requirement for bidders to have a local representative, established in the territory of the Guarantor, shall not apply; and

(f) The evaluation method for procurement of goods should be on a lot basis, rather than on an article basis.

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12. The overall procurement risk is average. In order to mitigate the risk, it has been agreed to recruit a consultant at the PMU level who will be in charge of the supervision, coordination and assistance towards implementing agencies in terms of procurement. As part of the PMU, the Consultant will also act as the focal point of communication with the Bank.

13. Training of ASP Implementing Agencies: In view of the procurement capacity shortfalls of most ASP implementing agencies, the Bank will conduct extensive project launch workshops, in line with the ASP OM. In addition, on-the-job procurement training and workshops will be part of every supervision mission, until capacities have reached a satisfactory level. Training will be provided either through the Bank’s own resources or through established training providers. Furthermore, the ASP generic OM was designed specifically to help in building capacity on a continual basis.

14. Procurement Plan: An 18 month procurement plan has been prepared and is attached.

15. Publication of Results and Debriefing: Publication of contract awards would be required for all ICB, LIB, NCB, Direct Contracting and the Selection of Consultants for contracts exceeding a value of US$200,000. In addition, where pre-qualification has taken place, the list of pre-qualified bidders will be published. With regard to ICB, and LIB, and large-value consulting contracts, ASP beneficiaries would be required to assure publication of contract awards as soon as the Bank has issued its ‘no objection’ notice to the recommended award. With regard to Direct Contracting and NCB, publication of contract awards could be in aggregate form on a quarterly basis. All consultants competing for an assignment involving the submission of separate technical and financial proposals, irrespective of its estimated contract value, would be informed of the result of the technical evaluation (number of points that each firm received), before opening of the financial proposals and, if they have secured the minimum qualifying mark stated in the Request for Proposals, they would be invited to attend the opening of the financial proposals. The implementing agencies of ASP beneficiaries would be required to offer debriefings to unsuccessful bidders and consultants.

16. Fraud, Coercision and Corruption: All procuring entities as well as bidders, suppliers and contractors shall observe the highest standard of the ethics during the procurement and execution of contracts financed under the project in accordance with paragraphs 1.15 & 1.16 of the procurement guidelines and paragraphs 1.25 & 1.26 of the consultants guidelines

17. Frequency of procurement supervision: In addition to the review of ongoing procurement activities to be carried out during every Bank supervision mission of the Project, the capacity assessment of implementing agencies has indicated the need to visit the field units once every twelve months, in order to carry out a procurement review of procurement transactions on an ex-post basis, using a randomly selected sample of previously awarded contracts. At the same time, improvements in procurement capacity will be evaluated and the updated Procurement Plans will be reviewed. To the extent possible, these reviews would be conducted concurrently.

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Procurement plan for non consulting goods and services (May 2006 - October 2007)

Africa Stockpiles Programme - Morocco ProjectImplementing Agencies : Department of Plant Protection, Technical Control and Fraud Repression (DPVCTRF) and DSPRDate of Publication of General Notice:

Procurement Method threshold:

  Method of procurement

Threshold/ceiling per contract

value Comments1 I.C.B (Disposal

Services) Not applicable  2 I.C.B (Goods) > 500,.000 US $

 3 N.C.B (Goods) < 500.000 US $  

5Direct

contracting < 10.000 US$

No objection required

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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17Ref. No.

Description Amount (dollar us)

Method of procur.

Review by the Bank

(post/prior)

Completion of technical

specifications

Date of Submission

of BD for NO

No objection to the BD

Launching of BD

Bid opening Submission of evaluation

report for NO

NO objection to the

evaluation report

Signing of contract

Starting of contract

Completion Implementing Agency/PMU

(A1-A2)

A- Coordination & Mgmt

A1 Equipment & Vehiclesa) Purchase of vehicles planned 40,000 S post 16-Dec-06 na na 15-Jan-07 25-Jan-07 na na 01-Feb-07 11-Feb-07 13-Mar-07 DPVCTRF

actualb) Purchase of IT Equipment planned 22,500 S post 06-Aug-06 na na 05-Sep-06 15-Sep-06 na na 18-Sep-06 20-Sep-06 15-Oct-06 DPVCTRF

actual

Office supplies planned 4,500 S post

actual

c) IT supplies planned 5,000 S post 06-Aug-06 na na 05-Sep-06 15-Sep-06 na na 18-Sep-06 20-Sep-06 15-Oct-06 DSPR

actuald) IT supplies planned 5,000 S post 06-Aug-06 na na 05-Sep-06 15-Sep-06 na na 18-Sep-06 20-Sep-06 15-Oct-06 DPVCTRF

planned

Office supplies planned 5,000 S post 06-Aug-06 na na 05-Sep-06 15-Sep-06 na na 18-Sep-06 20-Sep-06 15-Oct-06 DPVCTRF

actual

Office supplies planned 1,250 S post 06-Aug-06 na na 05-Sep-06 15-Sep-06 na na 18-Sep-06 20-Sep-06 15-Oct-06 DSPR

actual

IT equipment planned 1250 S post 06-Aug-06 na na 05-Sep-06 15-Sep-06 na na 18-Sep-06 20-Sep-06 15-Oct-06 DSPRactual

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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17Ref. No.

Description Amount (dollar us)

Method of procur.

Review by the Bank

(post/prior)

Completion of technical

specifications

Date of Submission

of BD for NO

No objection to the BD

Launching of BD

Bid opening Submission of evaluation

report for NO

NO objection to the

evaluation report

Signing of contract

Starting of contract

Completion Implementing Agency/PMU

(A1-A2)

B1 Inventairea) Protection material planned 63,600 NCB prior 29-Jun-06 29-Jul-06 05-Aug-06 15-Aug-06 05-Sep-06 20-Sep-06 27-Sep-06 12-Oct-06 27-Oct-06 26-Nov-06 DPVCTRF

actualb) GPS and camera planned 13,300 S post 06-Sep-06 na na 27-Sep-06 07-Oct-06 na na 17-Oct-06 27-Oct-06 26-Nov-06 DPVCTRF

actualc) Sampling &

decontamination material

planned 6,500 S post 06-Sep-06 na na 27-Sep-06 07-Oct-06 na na 17-Oct-06 27-Oct-06 26-Nov-06 DPVCTRF

actuald) Analysis of pesticides planned 12,000 DC prior 02-Jan-07 na na na na 17-Jan-07 27-Jan-07 11-Feb-07 21-Feb-07 21-Jul-07 DPVCTRF

actual

S: ShoppingNCB National competitive

BiddingICB Int'l Competitive Biddingna Not Applicable

n.o. No Objection

Inventory - collection & Disposal

B

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III. Selection of Consultants (May 2006 - October 2007) 

Africa Stockpiles Programme - Morocco ProjectImplementing Agencies: Department of Plant Protection, Technical Control and Fraud Repression (DPVCTRF) & DSPRDate of Publication of the General Notice:

1.                  Threshold for Selection of Consultants: Method of selection ThresholdQuality & Cost Based Selection (QCBS) naNational Quality & Cost Based Selection (NQCBS) 100 000 US$Short list may include national consultantsSelection based on the Consultant's Qualifications (SCQ) 100 000 US$Selection under a Fixed Budget (FBS) naLeast Cost Selection (LCS) naSingle Source Selection (SSS) naIndividual Consultants (IC) na

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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21Ref. No.

Description Amount  Method of Selection

 Review by the Bank

(post/prior)

Terms of reference

Submission of request to

proposal for NO

NO to the Request for

Proposal

Issuance of Request for

Proposal

Opening of technical Bidding

documents

Submission of technical

evaluation report for NO

No objection to the

technical evaluation

report

Opening of financial bidding

documents

 Negotiations

Submission of draft contract

for n.o.

no objection to the draft

contract

Signature of Contract

Starting date  Implementation schedule

Implementing agency /PMU

(A1-A2)

Comments

A Coordination & MgmtFM and Procurement Consultants

planned 36,000 IC prior 6-Jul-06 na na na na 5-Aug-06 12-Aug-06 na

22-Aug-06 na na 01-Sep-06 07-Sep-06 31-Dec-07 UGP

1 Yr fixed contract renewable

actualB Inventory

Inventory database Consultant

planned 2,400 Individual Consultant

post 05-Feb-07 na na na na na na na 07-Mar-07 na na 22-Mar-07 01-Apr-07 30-Jun-07 UGP ToRs submitted to the Bank's for n.o.

actualB2 Collection

C Capacity buildingTraining in impacts of pesticides on the environment

planned 3,750 IC prior 15-Oct-06 na na na

na

14-Nov-06 21-Nov-06 na 01-Dec-06 na na 16-Dec-06 05-Jan-07 31-Mar-07

actualTraining in IT and communications

prévu 10,000 CQS post 01-May-07 na na 15-Jun-07 15-Jul-07 na na na 30-Jul-07 na na 31-Aug-07 15-Sep-07

actualD Prevention and awareness

raisingEnvironmental and social impact assessment (including EMP and Emergency Plan)

planned 150,000 QCBS prior 29-Jul-06 28-Aug-06 04-Sep-06 09-Sep-06 24-Oct-06 23-Nov-06 30-Nov-06 15-Dec-06 30-Dec-06 04-Jan-07 11-Jan-07 26-Jan-07 15-Feb-07 14-Aug-07 UGP

actualCommunication and sensitization materials

planned 23,000 CQS post 02-Apr-07 na na 02-May-07 01-Jun-07 na na na 08-Jun-07 na na 15-Jun-07 30-Jun-07 28-Sep-07 UGP

actualTraining and and capacity building Consultant for legal control of the pesticides

planned

9000 IC prior 21-Jul-07 na na na na na na na 20-Aug-07 25-Aug-07 01-Sep-07 11-Sep-07 01-Oct-07 31-Oct-07actual

Training and capacity building Consultant for pesticides homologation system

planned

12000 IC prior 20-Sep-07 na na na na na na na 20-Oct-07 25-Oct-07 01-Nov-07 11-Nov-07 01-Dec-07 31-Dec-07actual

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Annex 9: Incremental Cost Analysis for Overall ASP-P1

National Development Objectives of Participating Countries

1. The seven countries participating in ASP-P1 have, to varying degrees, adopted environment and development programs aimed at eradicating poverty, safeguarding human health, conserving the environment and building capacity of Government and civil society to address these issues. In addition, ASP-P1 will support a further eight countries, to prepare for a second follow-on project called ASP-P2.

2. By addressing the problem of obsolete pesticides, countries will protect some of their most vulnerable inhabitants from potential chemical poisoning of water supplies, crops, animals and ecosystems. In addition the capacity of Government and civil society to prevent recurrence of these problems will be built.

3. While many African Governments and agencies have begun to implement projects and programs to address the problem of obsolete pesticides, additional financial and technical resources are required from the international community to allow these efforts to be fully successful.

ASP-P1 Global Environmental Objectives

4. ASP-P1 will directly contribute to the GEO: Reduction of effects of POPs on the global environment. Specifically, ASP-P1 will address:

(a) improving the quality of life in the poor communities, by reducing environmental health risks;

(b) improving environmental protection; and

(c) enhancing the capacity of the agricultural sector to better manage crop pests.

5. In ASP-P1, the GEF will support seven African countries (Tunisia, Morocco, South Africa, Ethiopia, Tanzania, Mali and Nigeria) to eradicate publicly-held stocks of obsolete pesticides and prevent their re-occurrence. An additional eight ASP-P2 countries (to be selected), will also be supported to prepare follow-on projects.

6. The problem of obsolete pesticide stockpiles and associated waste is not just a national problem. Scientific studies show that POPs are a global threat because they are persistent; they easily migrate through water and other means across national boundaries and even continents, and accumulate in living organisms far away from the original points of contamination.

7. In supporting ASP-P1, the international community will not only be supporting participating countries to eradicate a national threat to human health and the environment but an escalating global threat as well.

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8. Baseline Scenario: The lack of comprehensive management strategies over the past 40 years, combined with the following factors have contributed to the current situation:

(a) product bans: banned pesticides that remain unused over time;

(b) inadequate storage and stock management: pesticides have a limited shelf life which is shortened if they are not stored properly;

(c) unsuitable products or packaging: poor product specifications, unavailability of required application equipment and lack of labels in foreign languages;

(d) donation or purchase in excess of need: excess products often deteriorate during storage;

(e) lack of co-ordination among donor agencies: duplicated, unsolicited or inappropriate donations;

(f) commercial/entrepreneurial interest: over-assessment of need, inappropriate product supply and corruption; and

(g) Government policy: central procurement of pesticides and heavy subsidies for special programs like locust control, lack of record keeping and poor monitoring of the pesticide sector.

9. Obsolete pesticide stores can be found in numerous locations, and as a result of accumulation at various steps in pesticide distribution and use. Pesticides are often imported into Africa, although some may be manufactured on the continent. Following their manufacture and/or import into Africa, the pesticides are transported to wholesale storage and distribution sites. The pesticides are then sold and distributed to major users, retail stores and individual users. Major users, such as Government agencies, major industries, or industrial farms, may then either store or apply the pesticides. Smaller retail stores will re-sell pesticides in smaller quantities to individual users, or store them for sale at a later date. Individual users may immediately apply the pesticides, or store them for later use. The potential exists at each of these sites (wholesale distributor site, major user, retail store and individual user) for pesticide obsolescence to occur.

10. Pesticides that are not sold prior to their expiration date become obsolete, and may be found within wholesale sites and in smaller stores. Pesticides that were purchased either by major users or by individual users and were not used may also become obsolete. While individual users may own and store obsolete pesticides which may pose grave health risks. These sources are outside the scope of the Project and the environmental and social assessment.

11. Although the condition of pesticide stores vary from country to country, the overall condition of current stores (as confirmed by site visits in several countries) present serious human health and environmental risks. Although some countries have begun inventory, cleanup and disposal activities, many African pesticide stores have yet to be inventoried, let alone stabilized and subjected to remediation.

12. Storage sites may lack proper ventilation and pose serious health risks due to their proximity to houses and workplaces, their location on flood plains or near areas with high water

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tables. The risks posed by such stores include the risk of fire, and of contamination of local drinking water from infiltration through contaminated soils.

13. One of the greatest challenges facing ASP-P1 and project planners is the uncertainty surrounding the quantity and location of obsolete pesticide stores currently in Africa. Although several countries have completed initial and/or detailed inventories, many others have yet to gain a clear idea of the quantities, nature, locations and conditions of pesticide stores within their boundaries.

14. In many cases, pesticide containers have deteriorated and pesticides have escaped into the surrounding environment. One recent country report stated that “containers have deteriorated, corroded and started leaking, while bags have perished, spilling their contents on floors or directly on the soil.” Another report stated that “the stores themselves are often in poor condition and do not comply with FAO guidelines on pesticide storage.”

15. Much of the difficulty in estimating the total quantity of obsolete pesticides (and the associated heavily contaminated soils and packaging) can be attributed to decades of varying degrees of record keeping and documentation of pesticide imports and stockpiling, as well as little to no detailed inventory assessment. Efforts to gain a detailed understanding of the nature and distribution of obsolete pesticide stores may be hampered by a number of factors, including: damaged, worn containers and leaked pesticides; missing or worn off labels; existence or location of small storage sites not recorded; remote location of some storage sites; and, no inventories at storage sites.

16. An additional difficulty in estimating the quantity of obsolete pesticides in Africa is the potential for fluctuations in the amount of obsolete pesticides within individual storage sites as useable pesticides pass their expiration dates and become obsolete. Where no inventories have yet been undertaken there is an urgent need to begin detailed inventories to help verify the status of the stock and the need for clean up and disposal. Such data is essential to program and project planners to ensure that the sites that pose the greatest environmental and human health risks are stabilized and cleaned up.

17. Despite the above difficulties, the following baseline scenario has been assembled for the countries involved in ASP-P1.

ASP-P1 Component 1: Country Operations

18. This component is concerned with disposal of obsolete pesticides, prevention, capacity development and project management.

19. Between 1992 and 1998 the following disposal operations were successfully completed. Approximately 3,240 tons of obsolete pesticides were removed during this period (see table below).

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Disposal operations in known African countries: 1991-1998

Successfully Completed Pesticide Disposal Operations in Africa 1991-1998

Year Country Product(s) Quantity (tons)

Agency Involved in Disposal

1991 Niger Dieldrin 60 USAID/GTZ/Shell 1991 Kenya Various 100 ICI, Twiga Chemicals1993 Uganda Dieldrin 50 FAO/UNCDF1993 Madagascar Dieldrin 70 GTZ

1993 Malawi Aerosol waste, contaminated soil 70 Shell

1994 Mozambique DDT/monocrotophos 160 GTZ

1994 South Africa Various 1,000 Government and Private Sector

1995 Tanzania Various products 280Directorate General for International Cooperation (DGIS)

1996 Tanzania DNOC 57 GTZ1997 Zambia Various products 360 FAO/DGIS/GTZ1997 Seychelles Various products 12 FAO/DGIS1997 Mauritania Dieldrin 200 GTZ/Shell

1997/98 Cote d'Ivoire Various, sludge, contaminated soil 821 Shell

Total 3,240

20. Between 1990 and 2004 approximately 4,340 tons of obsolete pesticides were disposed of with an estimated cost of US$15 million.

21. Regarding disposal operations, under the baseline scenario, all of Africa would probably spend no more than US$1 million to US$3 million on disposal operations per annum. This amounts to US$4 million to US$12 million over ASP-P1’s four-year project period. The amount of obsolete pesticide stocks which could be disposed of across Africa at the historical disposal cost of US$3,400 per tons is 300-900 tons per annum or 1,200 to 3,600 tons over a four-year period.

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Approximate Disposal Figures for Africa per Annum

Obsolete Pesticides Disposal (Approximate Quantities & Costs)Year Tons US$1991 160 560,0001992 0 01993 190 665,0001994 160 560,0001995 280 980,0001996 57 199,5001997 572 2,002,0001998 821 2,873,5001999 0 02000 900 3,150,0002001 0 02002 1,200 4,200,000Total 4,340 15,190,000

22. Under the baseline scenario it is not entirely possible to estimate or know what resources would be devoted to the six GEF-supported countries (Ethiopia, Mali, Morocco, South Africa, Tanzania and Tunisia) in ASP-P1 over the four year period for the safe disposal of obsolete pesticides. If, for demonstration purposes, 30 percent of the baseline resources for Africa were allocated to these countries, this would result in approximately US$1.3 million to US$4 million being devoted to the disposal of approximately 400 to 1,200 tons of obsolete pesticide over the four year project period (see table below). Since these six countries contain an estimated 4,850 tons of obsolete pesticide stocks, the threat to the local and global environment would remain.

Estimated Tons of Obsolete Pesticides in ASP-P1 Countries18

18 This information has already been publicly disclosed as part of the Environment and Social Assessment Synthesis Report (please refer to page 31).

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Country Tons of Pesticide Number of Sites Comment

Ethiopia 1,100 To be confirmed by inventory

Extensive clean up operation currently underway

Mali 400 76 Extensive soil and water contamination

Morocco 700 Approximately 225 None

Nigeria 500 To be confirmed by inventory

Project will not address disposal

South Africa 250 To be confirmedExtensive clean up already undertaken and tentative inventory exists

Tanzania 1,200 To be confirmed by inventory None

Tunisia 1,200 128 pooled into 17 sites None

Total

5,350 - estimated 4,850 tons to be disposed of by ASP-P1 (Nigeria excluded)

Inventories to confirm quantity, number of sites and types of pesticide

23. In summary, baseline resources of US$4 million are assumed for the project duration for the ASP-P1 countries.

ASP-P1 Component 2: Technical Support

24. Technical support and related project monitoring is currently provided on an ad hoc basis to countries through FAO, UNEP, WHO, Basel Convention Regional Centers and NGOs. Under the baseline scenario, this is not expected to amount to more than US$400,000 for the four-year period.

ASP-P1 Component 3: Cross-Cutting Activities

25. This component is concerned with overall communication on ASP issues, NGO capacity building activities, country adoption of the various chemical conventions, and the assessment of new technologies for the disposal of obsolete pesticides. The baseline scenario for the cross-cutting activity support is somewhat hypothetical as no such unit would exist without ASP-P1. It is however assumed that some of these activities would conceivably take place without ASP at a funding level of US$0.2 million over the four-year period.

ASP-P1 Component 4: Project Coordination

26. This component is concerned with the overall coordination of effort to implement multi-country and multi-donor pesticide disposal and prevention activities. Under the baseline

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scenario no coordination mechanism would exist as this is a completely ASP-funded initiative. Nevertheless some form of ad hoc coordination and communication would probably take place between various entities involved in obsolete pesticide disposal and prevention operations. Therefore, a baseline budget of US$0.2 million is assumed for the four years.

GEF Alternative

27. The objective of the GEF alternative is to achieve a quantum leap in efforts to eliminate obsolete pesticides in Africa and prevent their recurrence. This includes eliminating the most dangerous and difficult to dispose of pesticides, which represent a significant threat to human health, biodiversity and international waters.

28. With 50,000 tons of obsolete pesticides in Africa and a baseline disposal rate of no more than 1,200 tons per annum, it will take over 41 years to dispose of all stocks, assuming no further growth. The proposed GEF alternative aims to tackle the problem within a 15-year period. It will achieve this by taking a continent-wide approach, applying lessons learned from past efforts, and building on existing initiatives. The ASP will be able to apply the volume and quality of resources necessary to provide a comprehensive solution to cleaning up and disposing of obsolete pesticides and dealing with the problem of contaminated soils. Specific outputs of the program will be country-based clean up and disposal operations, and in-country and region-wide pesticide management programs to prevent a recurrence of the problem. The GEF alternative therefore aims to support a comprehensive solution and will leverage significant co-financing to achieve this.

29. The GEF alternative is US$64.81 million. The GEF will provide US$25 million comprising of US$21.7 million channeled through the Bank and US$3.26 million provided directly to FAO. Additional co-financing has been leveraged including: US$7.06 million from the Bank MDTF to support Mali (contaminated soils), the ASP-PCU, preparation for ASP-P2 countries and support to the CCAME/ WWF activities; US$2.7 million from the DGF for the PCU, TSU CCAME and preparation of ASP-P2 countries; Government contributions of US$3.95 million; US$4.07 million provided by Belgium to Ethiopia; US$2.29 million provided by Canada via CIDA to Nigeria; USS$1.13 million provided by Japan to Ethiopia; US$1.62 million provided by FFEM to Mali and to Tunisia; US$1.02 million provided by Finland to Ethiopia; and US$0.08 million co-financing provided by FAO to the TSU. US$10.00 million will be provided by the AfDB to a TF for allocation to Country Operations.

Component 1: Country Operations (7 countries) GEF alternative: US$55.37 million (GEF funding US$21.74 million)

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30. GEF will provide incremental funding to ASP-P1 in six countries to address the issue of obsolete pesticides. Nigeria will fund its own participation in this component. The GEF will support another eight ASP-P2 countries to prepare projects. Under the GEF alternative, incremental funding will be provided to support in-country to:

(a) eliminate inventoried publicly-held obsolete pesticide stocks, soils and contaminated containers amounting to approximately 4,850 tons (GEF: US$16.24 million; Co- financing: US$7.47 million). Country inventories will identify the exact tons and if need be, the grant agreements will be amended to prioritize the removal of the obsolete pesticides above other activities;

(b) prevent accumulation of obsolete pesticides (GEF: US$2.37 million; Co-financing: US$3.12 million);

(c) provide capacity-building to Governments to strengthen pesticide management and regulation (GEF: US$1 million; Co-financing: US$0.55 million);

(d) to support country project management (GEF: US$2.13 million; Co-financing: US$3.04 million); and

(e) support to eight ASP-P2 countries to prepare projects and to prevent obsolete pesticides from re-occurring (Co-financing: US$3.01 million).

Component 2: Technical Support Unit (FAO-TSU) GEF alternative: US$4.70 million (GEF funding US$3.26 million) 31. Incremental funding will be made available to assist the TSU to:

(a) provide technical assistance to countries in the development of the Country OMs and the completion of preparatory activities related to training and capacity building (GEF: US$0.06 million; Co-financing: US$0.38 million);

(b) provide technical assistance to the six countries to implement disposal operations (GEF: US$0.93 million; Co-financing: US$0.10 million);

(c) provide technical assistance to seven countries to build their capacity to prevent re-occurrence of the obsolete pesticide problem (GEF: US$0.93 million; Co-financing: US$0.54 million); and

(d) provide overall country M&E of country performance against agreed technical standards (GEF: US$1.3 million; Co-financing: US$0.03 million).

Component 3: Cross-Cutting Activities (WWF) GEF alternative: US$2.65 million (GEF funding US$2.40 million)

32. Incremental funding will be made available to support three sub-components to:

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(a) provide overall knowledge management and communication about the project (GEF: US$0 million; Co-financing: US$0.94 million);

(b) support to NGO involvement (GEF: US$0 million; Co-financing: US$1.08 million);

(c) determine the best new technology choices for the disposal of obsolete pesticides for the second project, ASP-P2 (GEF: US$0 million; Co-financing: US$0.43 million).

Component 4: Project Coordination (Bank) GEF alternative: US$1.87 million (GEF funding US$0 million)

33. Incremental funding will be made available to support coordination among the seven ASP-P1 countries, the eight ASP-P2 countries, CCAME, TSU, the various governance structures and funders and donors, including the Bank. Incremental Co-financing will be used to:

(a) coordinate the provision of the overall ASP bi-annual work plan and progress report through inputs received from the various countries and global components;

(b) support the governance structures including the ASP-SC, which will review these reports and provide recommendations; and

(c) report on the findings of the independently commissioned M&E consultants.

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Cost Summaries

All costs in US$ million

Baseline scenario

GEF Alternative

Increment Increment Increment

Component GEF Others Total

1. Country Operations

4.00 55.37 21.74 19.54 51.37

2. Technical Support

0.40 4.71 3.26 1.05 4.31

3. Cross-Cutting Activities

0.20 2.65 0 2.45 2.45

4. Project Coordination

0.21 2.07 0 1.87 1.88

Total 4.81 64.80 25.0 34.91 60.0

Incremental Cost Matrix

Component Cost Category

Cost(US$

million) Domestic Benefit Global Benefit

Component 1:

Country Operations

Baseline Total: 4.00

Sporadic country disposal operations remove up to 1,200 tons of obsolete pesticides against approximated 4,800 tons in six countries

Sporadic disposal and prevention operations provide minimal protection to the global environment

GEF Alternative Total: 55.37

Obsolete pesticides are disposed of and prevention measures introduced to safeguard local inhabitants and the surrounding environment

Disposal operations remove a potential trans-boundary threat to global ecosystems and prevention measures prevent recurrence of the problem

Increment Total: 51.37

Component 2:

Technical Support

Baseline Total: 0.40

Technical support to country disposal and prevention operations meet a small percentage of country demands

Technical support provides very limited protection to the global environment

GEF Alternative Total: 4.71

Technical support enables countries to fully implement disposal and prevention measures

Technical support enables countries to implement disposal and prevention measures to safeguard the global environment

Increment Total: 4.31

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Component Cost Category

Cost(US$

million) Domestic Benefit Global Benefit

Component 3:

Cross-Cutting Activities

Baseline Total: 0.20

Countries and NGO’s receive sporadic information about disposal and prevention activities and new related technologies

Due to low levels of cross-cutting support, knowledge and best practice is inadequately disseminated thereby having a limited positive impact on the global environment

GEF Alternative Total: 2.65

Countries are readily able to access information on disposal and prevention activities and NGO’s are able to enhance civil society knowledge

Best practice information and knowledge is disseminated to countries and civil society thereby reducing the pesticide risk to the global environment

Increment Total: 2.45

Component 4:

Project Coordination

Baseline Total: 0.20

Some ad hoc coordination disposal activities between countries and donors may take place

Some coordinated support to sporadic disposal and prevention operations takes place with marginal benefit for the global environment

GEF Alternative Total: 2.07

Strong coordination takes place between countries and supporting agencies thereby enabling countries to implement best practice national disposal and prevention measures

A coordinated response takes place in seven African countries to remove a global pollution threat

Increment Total: 1.87

TotalBaseline 4.80

GEF Alternative

64.81

Incremental Cost GEF Non-GEF Total

Full Project 25.00 35.0 60.0

Preparation 0.70 0.2 0.9

Grand Total 25.70 35.2 60.9

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Annex 10: Safeguard Policy Issues

Background

1. ASP-P1 triggers two safeguards policies: OP 4.01 on EAs because it has the potential to significantly impact the environment adversely; and OP 4.09 on Pest Management because it deals with obsolete pesticides and pesticide management. Compliance with the above two safeguards policies will be ensured as follows:

OP4.01 / BP401 on Environmental Assessment

2. ASP-P1’s potential adverse environmental impacts are principally related to pesticide storage, transportation, disposal and site remediation activities in country operations. Due to their significance, the project is classified as Category A and requires preparation of a CESA, including an EMP. Given the framework nature of ASP (under which the detailed technical design and location of the project country level activities take detailed shape only after completion of pesticide inventories during the Project implementation), the preparation of the CESA, including the EMP, takes place in two stages.

3. The Project environmental and social impacts were assessed in a Framework Environmental Assessment (FEA) and their mitigation measures were outlined in an Environmental and Social Management Framework (ESMF). The Environmental and Social Assessment Synthesis Report was prepared based on these documents and will serve as guidance for the preparation of the respective CESA including EMP. The Environmental and Social Assessment Synthesis Report was disclosed prior to appraisal in all Project countries by the individual PMUs or their host agencies and in the InfoShop by March 17, 2004. The Project Integrated Safeguards Data Sheet was disclosed on October 26, 2005. The Environmental and Social Assessment Summary Report was disclosed to the Board on October 28, 2004.

4. The Environmental and Social Assessment Synthesis Report provides guidance, screening procedures and information to those responsible for the detailed design, planning and implementation of the individual country operations. The guidance reflects the applicability and relevance of key international standards and agreements, as well as the Bank’s safeguard policies, including preparation of detailed EMPs (as part of the CESAs).

5. A CESA including the EMP will be prepared during project implementation for the Kingdom of Morocco. It spells out the mechanisms that will allow the Bank to properly exercise its fiduciary responsibilities regarding the implementation of its safeguards policies, e.g., the need for a Bank-issued “No Objection” on the screening and priority ranking process, and on TORs for of individual cleanup operations. TORs for the preparation of the CESA are provided in the generic OM. Morocco has to specify in its Country OM how it will implement the CESAs.

6. The Environmental and Social Assessment Synthesis Report presents a framework of mitigation measures. Special attention was given to the following issues:

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(a) disclosure of information in order to maximize the efficiency and the synergy of public and private efforts in dealing with pollution and safety hazards;

(b) emergency preparation and response plans, especially, during hauling and transport of hazardous products;

(c) the scope of the prevention activities in relation to pest management;

(d) the handling of contaminated areas in the vicinity of dwellings or other property, in particular, compensation issues in cases where cleanup would be impractical;

(e) the handling of contaminated wells and other water sources; and

(f) the need to take into consideration the entire "chain of custody" during sampling, transportation and disposal operations, irrespective of their geographical location.

7. The second stage will be the preparation of the CESA. During project implementation, the PMU will ensure that all individual cleanup operations are subject to the CESA and that their specific adverse environmental impacts are adequately addressed through preparation and implementation of corresponding EMP. The EMP will reflect the applicable national or international standards, provisions of the Rotterdam, Basel and Stockholm Conventions and other relevant Codes of Practice and guidelines, requiring that contractors demonstrate experience and competence in removal and cleanup of hazardous materials and set requirements for quality control and technical supervision by the TSU. This will include requiring that the packaging, labeling, and transport of stocks and wastes comply with the internationally accepted standards and procedures found in the UN “Orange Book”. In addition, the technologies selected for disposing of the stockpiles and wastes will be required to meet both the Stockholm Convention Best Available Techniques/Best Environmental Practice (BAT/BEP) guidelines and the appropriate Basel Convention and Stockholm Convention Technical Guidelines for Environmentally Sound Management.

8. The CESA including the EMP will be disclosed in Morocco and in the InfoShop according to the Bank’s Policy on Disclosure of Information. Their preparation will involve adequate public participation in following the requirements of OP 4.01. The Bank and TSU will monitor their implementation following the procedures outlined in the OM.

9. Training on the preparation and implementation of CESA and risk assessments will be provided through the TSU and the Bank at start of project implementation, as described in the Morocco OM.

OP 4.09 on Pest Management

10. OP 4.09 requires preparation of a Pest Management Plan (PMP). The entire Project is dedicated to improve pesticide and pest management issues including prevention, cleanup and measures toward strengthening pesticide management, prevention of pesticide stockpiling and promotion of IPM. These activities are described in detail in this PAD and other project documents. The Project will promote awareness and improved regulations and better handling of pesticides and will also promote the adoption by countries of IPM policies. In addition to the

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EMP (prepared as part of the CESA) the Project documents will meet all PMP requirements. Hence, a stand alone PMP will not be prepared.

Additional Safeguard Considerations

11. Involuntary Resettlement: Although current information indicates that pesticides are usually stored away from people, the project may identify situations when proximity of pesticide stores to people would raise concerns for their health and safety during cleanup and disposal. Similarly, a need may arise during implementation to condemn certain sites or structures (e.g., warehouses, district back offices that might have been used for storage) as being too contaminated to merit cleanup.

12. Normally, such a situation would trigger OP/BP 4.12 and would require the preparation of a Resettlement Policy Framework. However, given the multi-country nature of ASP-P1, and the number of cleanup sites within each country, it is not feasible to prepare an umbrella framework for project countries given their dissimilar legislation and policies related to land acquisition and resettlement. Similarly, it is neither practical nor realistic to prepare a separate framework for each country, especially when there is no confirmed evidence that existing pesticide sites/storages will result in land acquisition or resettlement. Because of this particular situation, it has been decided not to trigger OP/BP 4.12 at this stage. Rather, a binding covenant in the Project legal document will be made, stating that each country will prepare a CESA prior to implementation of disposal activities. Each CESA will provide precise information and data on whether there are structures or sites or anything else that needs to be condemned or treated, resulting in involuntary resettlement, and acquisition, or total and partial loss of livelihood. In such a case, a Resettlement Action Plan (RAP) or several RAPs for affected sites will be prepared in compliance with OP/BP 4.12 by the Government(s) concerned and cleared by the Bank. Each RAP will provide that, among other things, should any person be temporarily or permanently relocated as a result of project activities, compensation will be provided in accordance with the provisions of OP 4.12 and BP 4.12.

13. Natural Habitats: Although current information indicates that pesticides are usually stored away from any critical or other natural habitat, the Project may identify situations when proximity of pesticide stores to protected areas, important aquatic resources, or any terrestrial, freshwater, coastal, and marine ecosystems would raise concerns for their environmental health over time. During project implementation, if a stock of obsolete pesticides, pesticide wastes or a contaminated site happen to be located in the proximity of a critical natural habitat(s), then such a situation would trigger OP 4.04 and would require that the EA process (OP 4.01) would identify such habitats within a proposed project’s area of influence and will take the necessary measures to avoid or minimize damage to natural habitats to the extent feasible. If significant conversion or degradation of a non-critical natural habitat is needed to achieve a project’s key objectives, the project will include an evaluation of the alternatives to show there are no feasible alternatives as well as mitigation measures acceptable to the Bank.

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Annex 11: Project Preparation and Supervision

Project Schedule Planned Actual

PCN Review July 17, 2002

Initial PID to InfoShop August 1, 2002

Integrated Safeguards Data Sheet (ISDS) July 24, 2003

Appraisal Mission Departure19 April 2004 March 28, 2004

Negotiations20 May 2006 May 15, 2006

Board Approval October 31, 2006

Planned Date of Effectiveness February 12, 2006

Planned Date of Mid-Term Review November 30, 2008

Planned Closing Date June 30, 2010

Prepared By:

14. ASP-P1 has been conceived and designed by a group of NGOs (WWF, PAN-UK and PAN-Africa), FAO, UNEP, and other international organizations, including the Bank and the private sector, in close collaboration with the ASP countries in Africa.

Preparation Assistance:

15. GEF, as the interim financing mechanism for the Stockholm Convention, has contributed preparation funding together with other financial or in-kind resources from other partner institutions - Canada and FAO Cooperative Program.

19 Appraisal missions were undertaken in the seven countries participating in ASP-P1, the first of which departed March 28, 2004 and the seventh mission ended May 1, 2004.20 Negotiations took place with South Africa (July 6-8, 2005) and Tunisia (July 13-15, 2005).

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The Morocco ASP Project-P1 Team includes the following staff and consultants:

NAME DEPARTMENT SPECIALTY

Peter Kristensen AFTS4 Senior Environmental Specialist (Task Team Leader, TTL)

Denis Jordy AFTS4 Senior Agricultural Specialist (Co-TTL)

Steven Maber MNSRE Senior Operations Officer Christopher Warner AFTS1 Senior Environmental SpecialistHadi Abushakra LEGMS Chief Legal CounselAllan Christine MNSRE Operations Analyst (Portfolio Manager)Sherif Arif MNSRE Reg. Environmental and Safeguards

AdvisorMeryem Benchemsi MNSMA Financial Management SpecialistDominique Bichara LEGMS Sr. CounselStefanie Brackmann MNSRE Environmental SpecialistZakia Chummun MNSRE Language Program AssistantCharles Di Leva LEGEN Chief CounselSteve Gorman ENVGC Lead Environmental SpecialistMuthoni Kaniaru LEGAF CounselLucie Tran AFTS4 Operations OfficerFrederick Kranz MNACS Senior Procurement SpecialistAbdelaziz Lagnaoui ESDQC Senior Pest Management SpecialistDahlia Lotayef MNSRE Senior GEF Operations Coordinator, MNAAngeline Mani MNSRE Language Program AssistantMohamed Medouar MNSRE Senior Rural Development SpecialistLaila Moudden MNCMA Program AssistantAlaleh Motamedi MNSPR Procurement SpecialistKnut Opsal MNSRE Senior Social Development SpecialistEllen Tynan ENVMP POPs/Environmental SpecialistMarie-Jeanne Ndiaye AFTS4 Language Program Assistant

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Annex 12: Documents in the Project File

Bank Assessment ASP-P1 Project Coordination Unit: Terms of Reference, Budget and Work Plan, February

2005 Framework Operations Manual Draft Financial Management Report Country Pre-Appraisal Reports Concept Paper for a Knowledge Management System for ASP Procurement Assessments for Ethiopia, Mali, Morocco, Nigeria, South Africa, Tanzania,

Tunisia, DBSA, WWF Procurement Plans for Ethiopia, Mali, Morocco, Nigeria, South Africa, Tanzania, Tunisia,

WWF Financial Management Assessments for Ethiopia, Mali, Morocco, Nigeria, South Africa,

Tanzania, Tunisia, WWF, PAN-UK, DBSA Appraisal Aide Memoires for ASP-PCU, Ethiopia, Mali, Morocco, Nigeria, South Africa,

Tanzania, Tunisia, and WWF Environmental and Social Assessment Synthesis Report, March 17, 2004 Environmental Assessment - Executive Summary, October 2004 Africa Stockpiles Programme (ASP) Generic Operational Manual, May 2005 COSTAB Tables for ASP-P1, June 2005

OTHERS Basel Convention, 2002: Technical Guidelines for Environmentally Sound Management of

Persistent Organic Pollutant Wastes. Secretariat of the Basel Convention, United Nations Office at Geneva

Democratic Republic of Ethiopia, Africa Stockpiles Programme, Obsolete Pesticides Project, Second Phase Country Report, February 2003

Food and Agriculture Organization (FAO) and WHO, 2001: Manual on Development and Use of FAO and WHO Specifications for Pesticides. First Edition. Prepared by the FAO/WHO

Food and Agriculture Organization (FAO), 2001: FAO Pesticides Disposal Series No 1. Prevention and disposal of obsolete and unwanted pesticide stocks in Africa and the Near East. First Consultation Meeting

Food and Agriculture Organization (FAO), 2001: FAO Pesticides Disposal Series No 2. Prevention of accumulation of obsolete pesticide stocks

Food and Agriculture Organization (FAO), 2001: FAO Pesticides Disposal Series No 3. Pesticide storage and stock control manual

Food and Agriculture Organization (FAO), 2001: FAO Pesticides Disposal Series No 4. Disposal of bulk quantities of obsolete pesticides in developing countries

Food and Agriculture Organization (FAO), 2001: FAO Pesticides Disposal Series No 5. Prevention and disposal of obsolete and unwanted pesticide stocks in Africa and the Near East. Second Consultation Meeting

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Food and Agriculture Organization (FAO), 2001: FAO Pesticides Disposal Series No 6. Prevention and disposal of obsolete and unwanted pesticide stocks in Africa and the Near East. Third Consultation Meeting

Food and Agriculture Organization (FAO), 2001: FAO Pesticides Disposal Series No 7. Guidelines for the management of small quantities of unwanted and obsolete pesticides

Food and Agriculture Organization (FAO), 2001: FAO Pesticides Disposal Series No 8. Assessing soil contamination: a reference manual

Food and Agriculture Organization (FAO), 2001: FAO Pesticides Disposal Series No 9. Baseline study on the problem of obsolete pesticide stocks

Food and Agriculture Organization (FAO), 2005: Technical Support Unit to the Africa Stockpiles Programme (Draft)

Helps, K, 2001: Ethiopia - Obsolete Pesticide Project. Project Health and Safety Manual Helps, K, 2002: Technical Issues – Liabilities and Risks for the ASP Kristensen, P. 2003: Concept Paper for a Knowledge Management System for the ASP Kristensen, P. and Rader, C., 2001: Strategic Management Approach. Conservation

International. PACT Publications Maroc Rapport – Programme Africain sur les Stocks de Pesticides Périmés, Janvier 2003 OECD, 1997: Report of the OECD Workshop On Pesticide Risk Indicators. Copenhagen, 21-

23 April 1997 Ottke, C., Kristensen, P. and Maddox, D.: Monitoring for Impact. World Resources Institute,

United Nations Environmental Program, Conservation International Terra Choice and Jacques Whitford: The Africa Stockpiles Programme (ASP) - Framework

Environmental Assessment (FEA) and Environmental and Social Management Framework (ESMF), January 29, 2004

Terra Choice and Jacques Whitford: The Africa Stockpiles Programme (ASP) - Framework Environmental Assessment (FEA) and Environmental and Social Management Framework (ESMF) – Executive Summary Report, January 29, 2004

Tunisie Rapport: Le Programme Africain pour l’Elimination de Pesticides Obsolètes (PASP, Mars 2003

United Republic of Tanzania, Obsolete Stockpile Programme, Obsolete Waste Disposal Project Country Report, February, 2003

World Bank, 2002: Toxics and Poverty: The Impact of Toxic Substances on the Poor in Developing Countries; Lyn Goldman and Nga Tran

World Bank, 2003: Proceeding from ASP Partners’ Meeting and Country Workshop, September 9 to 19, 2003

WWF Using Communications and NGO Awareness Raising to Build Capacity in Africa Through the Africa Stockpiles Programme, March 2005.

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Annex 13: Statement of Loans and Credits

MOROCCOActive Projects           Difference Between  

Expected and Actual

Original Amount in US$ Millions Disbursements a/

Project ID Project Name FY IBRD IDA GRANT Cancel. Undisb. Orig. Frm

Rev'd

P075808 MA-Adult Literacy (Alpha Maroc) 2003 4.1 1.804875 2.652771 3.2457358P043412 MA-Basic Education Reform Sup Program 2005 80 58.96412 0.9211904P088243 MA-FINANCIAL SECTOR DPL 2006 200 68.52271 1.3934368P005525 MA-HEALTH MANAGEMENT 1999 66 26.4186 19.57748 40.519043 -0.78963P083746 MA-HOUSING SECTOR DPL 2005 150 55.90961 4.3644659

P056978MA-IRRIGATION BASED COMMUNITY DEV. 2001 32.57 25.63218 20.545288

P048314 MA-PROTECTED AREAS MANAGEMENT 2000 10.5 6.603475 6.6034739P082754 MA-RURAL ROADS 2004 36.86 34.9272 4.3359445 3.769322P069124 MA-Rainfed Agriculture Development 2003 26.8 28.3482 3.9411478P086877 MA-Rural Water Supply and Sanitation 2006 60 59.78858P073531 MA-Social Development Agency 2002 5 4.120225 1.2252178 0.475218Overall Result 661.33 10.5 28.22348 365.0465 87.094944 3.454913

MOROCCOSTATEMENT OF IFC'S

Held and Disbursed Portfolio as of 12/31/2005(In US Dollars Millions)

Held Disbursed

FY Approval Company Loan Equity Quasi Partic Loan Equity Quasi Partic

2000 Maghreb Inv. Mgt 0 0.02 0 0 0 0.02 0 02000 Maghreb Invest P 0 3.4 0 0 0 3.15 0 02001 Medi Telecom 52.44 0 22.13 289.83 52.44 0 22.13 289.83

Total Portfolio: 52.44 3.42 22.13 289.83 52.44 3.17 22.13 289.83

Approvals Pending Commitment

Loan Equity Quasi Partic2005 BMCE 0 30 0 02002 SGRI 0 0.9 0 02004 Meditel Restruct 0 0 0 0

Total Pending Commitment: 0 30.9 0 0

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Annex 14: Country at a Glance

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Maps IBRD 34040 and 33113R

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wb153406/tt/file_convert/5f0789537e708231d41d7866/document.doc

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