environmental management framework...bosna-s consulting ul. nova br. 26, 71000 sarajevo bosnia and...

Bosnia and Herzegovina

Ministry of Foreign Trade and Economic Relations

Republika Srpska Ministry of Agriculture, Forestry and Water Management

Federal Ministry of Agriculture, Water Management

and Forestry

AGRICULTURE AND RURAL DEVELOPMENT PROJECT

ENVIRONMENTAL MANAGEMENT FRAMEWORK

May 7, 2007

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BiH Agriculture and Rural Development Project – Environmental Management Framwork

May 2007 2

GENERAL INFORMATION Prepared by Bosna-S Consulting

Ul. Nova br. 26, 71000 Sarajevo Bosnia and Herzegovina Phone: +387 33 278 040 / 205 756 Fax: +387 33 200 074 E-mail: [email protected] Web: www.bosna-s.ba Report Preparation Team Esma Kreso, MA, B.Sc. Env. Eng. Verner Huseljic, B.Sc. Chem. Eng. Fethi Silajdzic, B.Sc. Mech. Eng.


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TABLE OF CONTENTS ABBREVIATIONS ...................................................................................................................4 EXECUTIVE SUMMARY .......................................................................................................5 1 PREFACE...............................................................................................................................7 2 PROJECT DESCRIPTION.....................................................................................................7 3 REVIEW OF BiH ENVIRONMENTAL ASSESSMENT AND OTHER RELEVANT LEGISLATION .......................................................................................................................11

3.1 Administrative Framework ............................................................................................11 3.2 Environmental Impact Assessment Legislation.............................................................11

Federation of Bosnia and Herzegovina (FBiH) ...............................................................11 Republika Srpska (RS).....................................................................................................12

3.3 Other Relevant Legislation ............................................................................................12 4 REVIEW OF APPLICABLE WORLD BANK REQUIREMENTS....................................20 5 BRIEF REVIEW OF RELEVANT EU DIRECTIVES........................................................23 6 PROCEDURES FOR ENVIRONMENTAL SCREENING OF RURAL DEVELOPMENT SUB-PROJECTS .....................................................................................................................24 7 ENVIRONMENTAL MANAGEMENT PLAN...................................................................35 8 REVIEW OF INSTITUTIONAL RESPONSIBILITY AND REQUIRED CAPACITY BUILDING ..............................................................................................................................40 9 PUBLIC CONSULTATIONS AND DISCLOSURE...........................................................44 10 APPENDICES ....................................................................................................................46

APPENDIX 1: PUBLIC CONSULTATIONS – LISTS OF ATTENDEES .......................47 APPENDIX 2: GENERAL OVERVIEW OF AGRICULTURAL INPUTS AND RELATED ENVIRONMENTAL IMPACTS .....................................................................48 APPENDIX 3: GOOD FARMING PRACTICES ...............................................................50 APPENDIX 4: ENVIRONMENTAL CLAUSES FOR CIVIL WORKS CONTRACTS...54 APPENDIX 5 - GUIDANCE ON THE BIOSAFETY LEVELS FOR LABORATORIES 56 APPENDIX 6 - INTERNATIONAL BEST PRACTICE IN SAFETY OF RESEARCH LABORATORIES ...............................................................................................................58 APPENDIX 7: ENVIRONMENTAL MANAGEMENT PLAN (FORMAT) ....................64


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ABBREVIATIONS BAM - Bosnian Mark, also known as Konvertibilna Marka (KM -Convertible Mark) BD - Brcko District BiH - Bosnia and Herzegovina EA - Environmental Assessment EMF - Environmental Management Framework EMP - Environmental Management Plan E(I)A - Environmental (Impact) Assessment EuropGAP - Good Agriculture Practice FBiH - Federation of Bosnia and Herzegovina HAACP - Hazard Analysis and Critical Control Points IPM - Integrated Pest Management MoFTER - Ministry of Foreign Trade and Economic Relations of BiH MAFWM - Ministry of Agriculture, Forestry and Water Management RS MAWMF - Ministry of Agriculture, Water Management and Forestry FBiH MoE - Ministry/Ministries of Environment (at various power levels) OP - Operational Policy (World Bank) PCU - Project Coordination Unit RS - Republika Srpska WB - The World Bank WTO - World Trade Organization


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EXECUTIVE SUMMARY The Government of Bosnia and Herzegovina (BiH) has requested support from the World Bank towards the financing of an Agriculture and Rural Development Project (the Project), which will assist BiH to strengthen the capacity of its State-level and Entity-level institutions to deliver more efficient and effective agricultural services and support programs as well as to make a substantial contribution to an acceleration of BiH’s eligibility to access support provided under the European Union Instrument for Pre-Accession Assistance for Rural Development. The responsibility for Project implementation is under the State Ministry of Foreign Trade and Economic Relations (MoFTER), the Federation Ministry of Agriculture, Water Management and Forestry (FBiH MoAWMF), and the Republika Srprska Ministry of Agriculture, Forestry and Water Management (RS MoAFWM). The proposed Project will include the following components: Component A: Agricultural Information and Institutional Capacity Building Component B: Enhanced Agriculture and Rural Development Support Program Component C: Project Coordination, Administration and Monitoring Under Component A, the Project will support the Entity-level Ministries of Agriculture as well as the various State-level agencies serving both Entities to fulfill their respective mandates as planning and policy making institutions. A key objective is the harmonization of the various activities and functions at the level of both Entities to facilitate the consolidation of State-level systems as and when such opportunity arises. This Component will provide assistance through the following four sub-components: (i) improving agriculture and rural sector information systems; (ii) strengthening state veterinary, food safety and phyto-sanitary services; (iii) strengthening agriculture inspectorate capacity; and (iv) strengthening agricultural extension services. Activities under this component expected to have environmental implications include the rehabilitation/refurbishing of laboratory facilities and disposal of laboratory waste. Another Project activity which could have some environmental impacts is strengthening of agricultural extension services, if the strengthened extension services promote pesticides use. Under Component B, the Project will provide assistance to address the constraints of the current agriculture support programs in the two Entities through the following sub-components: (i) strengthening rural development program planning and coordination; (ii) strengthening the payment systems for providing financial incentives for agriculture and rural development; and (iii) increasing rural development grants for target rural development measures by providing incremental funds (totaling about €3.1 million for each Entity). Rural development measures and rural development grants will be guided by the National Agriculture and Rural Development Strategy presently being developed with technical assistance from the EU. This in turn will guide the Federation and RS Agriculture and Rural Development Plans, which will set the provision for the allocation of financial support to agriculture and rural development. Beneficiaries for the rural development grants include farmers, agro-business and cooperatives registered in each Entity's farm register or client register, establishment of which will be supported under the Project. Beneficiaries will be selected in accordance with procedures and rules set forth in each Entity Rural Development Operational Manual. The Rural Development Operational Manuals will be prepared during first year of Project implementation and will be submitted for the Bank's approval before their implementation. Activities under this component expected to have environmental


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implications include the incremental funds for rural development grants. Although the rural development measures to be supported by the Bank have not been identified yet, but they are expected to consist of measures supporting on-farm level improvements to occur within the boundaries of the farms. In order to address the environmental aspects of the Project, an Environmental Management Framework (EMF) has been prepared. The EMF identifies mitigation measures to address environmental impacts of Component A and proposes recommendations for identifying and addressing potential environmental impacts that could result from possible investments to be supported by the Rural Development grants. The EMF also identifies institutional responsibilities for implementation of the EMF and presents public disclosure activities undertaken so far.


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1 PREFACE This document presents the Environmental Management Framework (EMF) for the proposed Bosnia and Herzegovina Agriculture and Rural Development Project (the Project). The EMF will be used as a tool for ensuring the Project’s activities comply with the provisions of the Bosnia and Herzegovina legislation on environmental impact assessment, as well as with the requirements of applicable Operational Policies on Environmental Assessment and Pest Management of the World Bank as sponsor; and will not have significant negative impacts on local population, country’s natural resources and environment as a whole.

2 PROJECT DESCRIPTION The Project Development Objective is to assist BiH to strengthen the capacity of its State-level and Entity-level institutions to deliver more efficient and effective agricultural services and support programs as well as to make a substantial contribution to an acceleration of BiH’s eligibility to access support under the European Union Instrument for Pre-Accession Assistance for Rural Development (IPARD). Key outcome indicators will include:

• Sixty-percent of disease and pest inspections implemented on the basis of expected risks.

• Pluralistic, stakeholder driven and outcome based contracted extension services operational at the level of each Entity and benefiting twenty-percent of commercial farmers.

• One hundred-percent of rural development structural payments made through harmonized, EU IPARD compliant institutions and systems at the level of each Entity.

Key output indicators will include:

• Veterinary Office of BiH implementing effective animal identification system encompassing seventy-percent of cattle, swine and small ruminants.

• Classical Swine Fever (CSF) test and slaughter program established and incidence of brucellosis reduced by thirty-percent.

• Administration of BiH for the Protection of Plant Health implementing plant health monitoring and risk assessment systems.

• Entity-level Inspection Directorates are effectively are implementing BiH’s plant health, animal health and food safety laws and regulations

• Entity-level Agricultural Information Units established and assembling FADN information from 300 farms.

• Entity-level Department for Extension with a multi-stakeholder governing body established and has approved CY2010 Entity extension work plan and budget.

• At least 100 of contracted extension/advisory service providers accredited with specific competencies implementing at least 50 outcome-based extension contracts.


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• Entity-level farm and entitlement registries and Paying Systems established and accredited by the World Bank to disburse Project funds.

• EU IPARD compliant rural development plans established and overseen by effective Monitoring Committees.

• Fifty percent of agriculture and rural development funding used for structural payments through a World Bank accredited paying system in each Entity.

• Hundred percent Project funds disbursed according to plan, timely and accurate completion of all annual operating, training and procurements plans.

• Beneficiary surveys indicate fifty percent awareness of Project and overall satisfaction with Project activities.

The Project would support the following components: Component A: Agricultural Information and Institutional Capacity Building (Total Cost: €12.83 million)

This component will support the Entity-level Ministries of Agriculture as well as the various State-level agencies serving both Entities to fulfill their respective mandates as planning and policy making institutions. A key objective is the harmonization of the various activities and functions at the level of both Entities to facilitate the consolidation of State-level systems as and when such opportunity arises. This Component will provide assistance through the following four sub-components:

(i) Sub-component A.1. Improving agriculture and rural sector information systems, by

providing long term national consultants at the Entity-level and information technology hardware and software at State, Entity and municipal level to support an EU Instrument for Pre-Accession Assistance (IPA) financed program for the development of the BiH’s agriculture information structure, based on standardized and EU harmonized methods, to support sectoral policy and decision making processes. This component will include the establishment of a secure Wide Area Network for agriculture and rural development payment information transfer.

(ii) Sub-component A.2. Strengthening state veterinary, food safety and phytosanitary services, by further developing the Veterinary Office of BiH (VO), the Administration of BiH for the Protection of Plant Health (APPH) and the Food Safety Agency of BiH (FSA), with a view to harmonize and enforce uniform and EU compatible veterinary, phytosanitary and food safety regulations, standards and controls and animal identification, movement control and traceability systems. Project inputs will include technical assistance and staff capacity building, database development, critical risk analysis and disease epidemiology studies, development of targeted laboratory services including Genetic Modified Organisms (GMO) testing, and inspection service, infrastructure, IT, sampling equipment and transportation resources. Project support in these areas will be complemented by technical assistance (TA) financed by the EU and focused primarily on institutional capacity building, risk management, laboratory service restructuring and regulatory reform.

(iii) Sub-component A.3. Strengthening inspectorate capacity, by strengthening the Entity-level inspectorate capacity for EU compliant food safety, plant health and animal health inspection. Under the oversight of MoFTER, its agencies and the FSA, SPS inspectors would be trained to apply BiH’s new food safety, plant health and animal health laws and regulations and to adopt web-based information and reporting systems. Government-owned buildings would be upgraded to provide up to 6 Regional Inspection Centers in each Entity to accommodate core inspection capacities, with each Center having its own


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intranet and vehicle pool together with IT service managers. In the FBiH, similar support would be provided to Canton Inspectorates.

(iv) Sub-component A.4. Strengthening agricultural extension services, through the development of pluralistic, participatory, market-driven and results-oriented extension programs at the Entity-level; the establishment of Extension Departments for policy and budgetary control and contracting of existing agencies or institutions to develop extension strategies and manage extension delivery; and the provision of incremental funding for the extension service delivery, including contracted services. Project inputs will include national and international TA and staff capacity building, office and IT equipment, vehicles and co-financing for extension service delivery and its monitoring.

Component B: Enhanced Agriculture and Rural Development Support Program (Total Cost: €12.94 million)

The 2006 budgets of the two Entities included about €13.4 million for the Federation of Bosnia and Herzegovina (FBiH) and €18.6 million for the Republika Srpska (RS) for agricultural support programs, and these figures are set to increase in the next few years. At present, most of the assistance concerns market support measures linked to specific agricultural products, with milk and tobacco payments absorbing a large share of total subsidies. The impacts of the agriculture support programs are undermined by weak systems for the targeting and administrating of incentives and grants. This Component will provide assistance to address these constraints through the following three sub-components: (i) Sub-component B.1. Strengthening rural development program planning and

coordination, by supporting the establishment of a Rural Development Coordination Unit within the Sector for Agriculture and Rural Development under MoFTER for playing an effective role in liaising with the EU on agriculture and rural development policies and programs in BiH and in decision-making coordination. Project inputs will include payment system infrastructure including minor civil works, office and computing systems, IT equipment and supporting software, secure communications systems, equipment, furniture, vehicles, and staff capacity building.

(ii) Sub-component B.2. Strengthening the systems for providing rural development payments, by building a harmonized, efficient, transparent, and by Project-end, EU IPARD compliant rural development support program and Entity-level farm and entitlement registries and paying systems including State-level data coordination and reporting systems and a secure communications system. This sub-component will provide needed investments and technical assistance for: (a) strengthening the Entity-level Ministry Departments responsible for rural development grant administration; (b) progressively developing and introducing an EU IPARD compliant administration and fiduciary system for agriculture and rural development payments; and (c) support the preparation of an operational manual for rural development grants program.

(iii) Sub-component B.3. Increasing investment grants for target objectives and areas, by providing incremental funds (totaling about €3.1 million for each Entity) to be disbursed by Entity-level Ministries as grants for specific objectives, including encouraging innovation, community/collective action and income diversification. Investment priorities and counterpart contributions will be guided by the national agriculture and rural development framework presently being developed with technical assistance from the EU.


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Component C: Project Coordination, Administration and Monitoring (Total Cost: €1.04 million)

This component will build capacity within the Entity-level Ministries of Agriculture and within the SARD under MoFTER to coordinate, administrate, monitor and evaluate the Project. It will support the establishment of the Project Coordination Units (PCUs) within MoFTER, FBiH MoAWMF and RS MoAFWM. Project support will include: salaries and fees of PCU staff and specialized expertise, office equipment, furniture, vehicle, fiduciary training, financial and environmental audits, and incremental operational costs. POTENTIAL ENVIRONMENTAL IMPACTS Activities under Component A expected to have environmental implications include the rehabilitation/refurbishing of laboratory facilities, the purchase of vehicles and the disposal of laboratory waste1. Also, if agricultural extension services promote use of pesticides use, they can have negative impacts on the environment. Activities under Component B expected to have environmental implications include the incremental funds for rural development grants. Although the rural development measures to be supported by the Bank have not been identified yet, but they are expected to consist of measures supporting on-farm level improvements to occur within the boundaries of the farms. The rural development grants are expected to finance investments that qualify for environmental categories B and C, which are not expected to result in changes in land use2 as they are expected to be made within the boundaries of existing farms. Activities under Component C expected to have environmental implications include the purchase of vehicles. The expected long term environmental impacts of the Project are expected to be positive in terms of improved food safety, plant and animal health; increased number of rural families benefiting from farm diversification investments supported by the Project; and increased number of rural families benefiting from rural infrastructure and investments resulting from shifting away from market support to structural support for agriculture and rural development.

1 Since no specific legal/regulatory framework for disposal of laboratory waste management is available, general provisions of the Law on Waste Management of FBiH and RS will be respected while best international practices will in addition be applied to the extent possible. 2 The rural development grants are expected to finance investments that qualify for environmental categories B and C, but they will not require any land acquisitions or involuntary resettlement as they will be made within the boundaries of existing farms, nor will they change the rural nature of the production processes on the land


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3 REVIEW OF BiH ENVIRONMENTAL ASSESSMENT AND OTHER RELEVANT LEGISLATION 3.1 Administrative Framework The existing institutional structure of Bosnia and Herzegovina (BiH) does not include state-level institutions dealing primarily with environmental issues, which are thus in the jurisdiction of the Entity Governments, i.e., Ministries responsible for environmental protection. These are the Ministry of Environment and Tourism3 of the Federation of Bosnia and Herzegovina (FBiH), and Ministry of Physical Planning, Urbanism, Construction Works and Ecology of Republika Srpska (RS). The lower level of environmental management in FBiH is with the cantonal ministries. International agreements and conventions on environmental protection are in the jurisdiction of the state Council of Ministers, i.e. the Ministry of Foreign Trade and Economic Relations of BiH. 3.2 Environmental Impact Assessment Legislation

Federation of Bosnia and Herzegovina (FBiH) Environmental Impact Assessment procedure in the FBiH is regulated by the Federal Law on Environmental Protection (Official Gazette of FBiH, No. 33/03) and its Regulation on facilities subject to obligatory EIA, and facilities which may be constructed and operated only with a valid environmental permit (Official Gazette of FBiH, No.19/04). The latter provides a list of industrial plants and facilities, which undergo individual evaluation concerning the EIA requirement. If such individual evaluation shows that no EIA is required, the Ministry issues an environmental permit based on the documents already submitted. When evaluating the EIA requirement, the Ministry takes into account individual project characteristics (industrial plant/facility size, waste generation, pollution, etc.), project location and environment sensitivity, as well as characteristics of potential impacts (impact extent, probability, etc.). According to this regulation, start up of intense agricultural activities on land previously not used for agriculture, with a surface exceeding 30 hectares in size, requires an EIA, while for intense agricultural activities on surfaces between 15 and 30 ha in size, the Federal Ministry determines on a case-by-case basis whether or not an EIA is required. Both cases are followed by mandatory environmental permitting by the Federal Ministry. The regulation further specifies mandatory environmental permitting for activities involving the storage or use of ammonium nitrate fertilizers in quantities exceeding 1,250 tons, toxic (toxicity group 2) substances in quantities exceeding 50 tons, or very toxic substances (toxicity group 1) in quantities exceeding 5 tons. The EIA/permitting procedure includes some or all of the following steps: (i) preliminary environmental impact assessment (PEIA); (ii) EIA study with contents and extent based on the findings of the PEIA; and (iii) environmental permitting. The process includes public consultations.

3 Successor of the Ministry of Physical Planning and Environment of the FBiH


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With relevant environmental legislation at the canton level, for plants and facilities with parameters below the thresholds defined by the federal Regulation on facilities subject to obligatory EIA, and facilities which may be constructed and operated only with a valid environmental permit (Official Gazette of FBiH, No.19/04), unless deemed exempted, the Environmental Permit is issued by the cantonal Ministry of Environment in charge. In all other aspects, the environmental legislation of the cantons is equivalent to the FBiH legislation.

Republika Srpska (RS) Like the FBiH Law, the Law on Environmental Protection of RS (Official Gazette of RS, No. 53/02), amended in 2005 (Official Gazette of RS, No. 109/05), regulates the preservation, protection, restoration, and improvement of ecological quality and capacity of environment, and the quality of life; the measures and conditions for management, preservation and reasonable use of natural resources; the legal and administrative framework for the issues of preservation, protection, and improvement of environment; the financing of environmental activities, including those in sole responsibility of the authorities. According to this law, the components of environment (soil, water, air and ecosystems) must be protected individually, as well as within the protection programs for other components, taking into account their interdependence. This Law, as well as its implementing Regulation on facilities which may be constructed and put in operation only with a valid Environmental Permit (Official Gazette of RS, No. 07/06), introduces obligatory environmental permitting for all facilities potentially endangering the environment. Like in FBiH, this also applies to agricultural activities with storage of ammonium nitrate fertilizers in quantities exceeding 1250 tons, toxic substances in quantities exceeding 50 tons or very toxic substances in quantities exceeding 5 tons on a single location. This Law further specifies the contents of the request (application) for a permit, as well as the mode of public participation in the procedure, and the involvement of other entity or a neighboring state in the case of possible trans-boundary impacts. The key provisions of this Law, including those on EIA, are equivalent to the provisions of the FBiH Law. Regulation on Projects subject to EIA and Criteria for Establishing the EIA Requirement and Its Extent (Official Gazette of RS, No. 07/06) lists industrial plants, facilities and projects with substantial negative environmental impacts subject to mandatory EIA, with thresholds related to agricultural activities equivalent to those of the FBiH legislation. 3.3 Other Relevant Legislation The following additional legislation should be referred to in relation to various aspects of the Project implementation: Law on Agricultural Land of FBiH (Official Gazette of FBiH, No. 2/98) This Law defines the notion, management, protection and setting up of agricultural land, and delegates the responsibilities over these activities to cantons and municipalities. It also


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contains provisions regarding the creation of agricultural land by construction of irrigation systems (Articles 48 to 52). Article 21 of this Law prohibits discharges of hazardous and harmful material onto agricultural land in quantities that can affect the productivity of agricultural land or the quality of agricultural products, as well as inappropriate usage of mineral and organic fertilizers and pesticides. However, this requirement is general and unquantified. Law on Agricultural Land of RS (Official Gazette of RS,14/04, 22/04 and 49/04) This Law regulates the protection, use, improvement and management of agricultural land, trade and rent, agricultural activities and issues related to common pasture land. It prohibits releases and disposal of any harmful and hazardous matter on agricultural land and in irrigation canals, in amounts that can harm or change the production capacity of the agricultural land and the quality of water used for irrigation. Improper use of mineral and organic fertilizers or plant protection chemicals is also prohibited, i.e., practices that would lead to an “intolerable” increase in concentrations of hazardous materials in plants, agricultural cultures, land, groundwater and surface water. Like in the case of the FBiH Law, this is not further specified. Law on Plant Protection Products (Official Gazette of BiH, No.49/04) This Law introduces general stipulations on imports, distribution and use of plant protection products. However, further secondary legislation specifying the provisions in detail will be required. Law on Plant Protection (Official Gazette of RS, No. 13/97) This law sets unspecified requirements for plant protection, including protection from diseases, pest, and weed. It also regulates the health control for plants in domestic and international trade as well as trade with pesticides and provision of financial resources for implementation of measures defined by the law. According to this law, the Ministry defines the allowed level of contamination in seed and seedlings to be placed on the domestic market. Law on Mineral Fertilizers (Official Gazette of BiH, No. 46/04) This Law addresses the issues of distribution of mineral fertilizers and permitting, quality testing, labeling, record keeping and the related inspections. However, it also requires additional, specific secondary legislation to become enforceable. Law on Approval and Protection of Agricultural and Forest Plant Types (Official Gazette of FBIH, No. 31/00) This law specifies the approval and protection of new and imported types (cultivars) of agricultural and forest plants. Law on Seeds and Agricultural Planting Material (Official Gazette of FBIH, No. 55/01) This law specifies the production, trade and imports of agricultural seeds and planting material, and other issues essential to securing a systematic and unified approach in this respect in the FBiH.


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Law on Seeds and Seedlings (Official Gazette of RS, No. 13/97) This law regulates the production, processing, use, trade with agricultural seeds, seedlings and forest plants, and obligatory control in their production. Law on Tree Seeds and Seedlings in Forestry and Horticulture (Official Gazette of FBIH, No. 73/05) This law regulates the registration and control of bush and tree seeds and seedlings imports. The objective of this law is to secure satisfactory quality of the reproduction/planting material aimed at enhancing cost effectiveness of the forestry and horticultural production, as well as improving environmental protection, biological safety and consumer protection. Law on Organic Food Production (Official Gazette of RS, No. 75/04) This law specifies the organic food production principles, as well as labeling of organic food. Thus for instance, it prohibits the use of synthetic agrichemicals in organic food growing, and emphasizes environmental protection. It further addresses the cleaning agents, disinfectants, cattle feeding and veterinary treatment of cattle in the cattle breeding activities. Regulation on Maximum Permitted Quantity of Harmful and Hazardous Substances in the Soil and Methods of Monitoring (Official Gazette of FBiH, No.11/99) This regulation defines the harmful and hazardous substances in soil, including those related to applications of sludge from wastewater treatment, and the threshold concentrations for various soil types. Furthermore, it provides general methods of sampling and monitoring organic and mineral waste and pesticide concentrations. Law on Measures for Improvement of Cattle Breeding (Official Gazette of FBIH, No. 23/98) This law defines the conditions for production and trade in the Cattle Breeding sector as well as the measures needed for overall improvement of the sector. According to its provisions, the cantonal authorities prescribe specific measures to be applied in relation to the set up and maintenance of stalls, disposal sites and discharges, as well as provision of hygienically safe water. Law on Cattle Breeding (Official Gazette of RS, No. 34/06) This law regulates the production in the cattle breeding sector, including cattle foodstuff quality, cattle reproduction, research, trade and hygienic requirements, and inspections. However, it lacks specific details. Law on Veterinary Activities in Bosnia and Herzegovina (Official Gazette of BiH, No. 34/02) This state level Law precisely defines all activities and responsibilities of different institutions with respect to animal keeping and veterinary issues. Protection of animal health from contagious and other diseases, and ensuring measures that would protect the population from zoonoses, alimentary infections and intoxications by preventing and controlling diseases and obstructing transfer of such diseases onto humans, are among the goals of veterinary


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practice as set forth within the Law. The Law has a special chapter entitled “Environmental Protection”, listing a number of environmentally friendly concepts that need to be implemented during regular activities, that include protection of surface water, groundwater, safe storage of wastes, and limiting the potential infections. Article 43 states the responsibilities for management of wastes and animal carcasses, which include required treatment of the carcasses, reporting, responsibility of the veterinary authority to safely transport the carcasses to the dissection and disposal area, determination of the cause of death by a veterinarian, and allows burial of carcasses in graveyards that meet specific conditions. The Law also sets forth the compensation for animals killed to prevent infection. Law on Veterinary Activities (Official Gazette of FBIH, No. 46/00) This law regulates the issues of animal health protection and includes some provisions on disposal of carcasses, as well as measures aimed at preventing diseases from spreading. It also addresses the veterinary environmental protection, inspections and monitoring, and places a ban on manufacture, use and trade with foodstuff and animal products containing pesticides, pathogens or antibiotics in excess of the tolerance level yet to be specified by the Federal Minister. Similar Law is in force in RS. Law on Medicaments Used in Veterinary Medicine (Official Gazette of FBIH, No. 15/98) This law regulates the production, imports, trade and check-up of medicaments used in veterinary practices. Regulation on Safe Removal of Animal Carcasses and Animal Wastes, with Conditions that have to be met for Safe Collection, Removal, Analysis and Transport of Animal Wastes and Carcasses (Official Gazette SFRJ, 53/89) This Regulation was adopted in 1989 at the level of former Yugoslavia and is still in force. It addresses the characteristics and properties of vehicles used in transport, areas for analysis, and final disposal of animal carcasses and wastes of animals that have died or were killed, and are not suitable for human consumption. All of the animal carcasses that have died or were killed following a pathogenic infection need to be incinerated, buried in a pit or buried at a designated animal cemetery. Incineration needs to be conducted in a plant and at a temperature that ensure complete combustion of animal carcasses and wastes. Burial in a pit can be done with at least 1 meter of soil placed above the buried carcasses, and at least 1 meter above the water table. The area where animals are buried needs to be clearly marked and indicated, and can be reused after 50 years have passed after burial (10 years for non-pathogenic cases). Vegetation growing on the pit cannot be used, but needs to be cut and burnt on location. Animal cemetery, and an animal grave can be filled up to 1 meter below the lid, which will be sealed shut. The grave is to be clearly marked and not used for 50 years. The pit/grave can then be used only after necessary rehabilitation and obligatory disinfection. Animal wastes and carcasses can also be buried on location of death, if the owner of the animal and land is ordered to do so by the veterinary authority. The pit needs to be at least 20 meters from a water source, and at least 1 meter above the water table. Prior to the placement of carcasses in the pit, they need to be covered in petroleum, lime, substances containing chloride, or other substances that have a strong smell (in order to de-characterize the waste).


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The Regulation also addresses equipment used, areas to be used and transport vehicles to be used for the transfer of animals. The vehicles need to be completely closed off and impermeable, made of materials that are easy to clean, wash and disinfect, have a loading system, suitable equipment and disinfection material, and to be clearly marked. Law on Forests of FBiH (Official Gazette of FBiH 20/02) The Law on Forests contains general provisions on forest management, protection and establishment of forest borders. It also forms a base for sustainable forest use, regeneration, land access to / traffic within forested areas, and raising of forest saplings. Article 10 of this Law, prohibits to let cattle graze within a forest if this may in any way harm or degrade the existing biodiversity. While the federal Law on Forests focuses on the issues of forest protection, the cantonal laws regulate the forest management and exploitation. Law on Protection of Nature of FBiH and RS (Official Gazette of FBiH 33/03 and Official Gazette of RS 50/02) The Law on Protection of Nature is a framework Law with provisions on protection of landscapes, flora, fauna, and natural habitats. One of the major provisions is that all anthropogenic and developmental activities must strive to have the lowest possible environmental impact. The Law also sets forth the guidelines for establishing protected areas and landscapes in nature according to different categories. The Law on Protection of Nature states that it is prohibited to introduce species originating from outside of BiH or species that have been extinct. An additional by-law, expected to be developed, may allow for exceptions to this ban if it is established that the specie to be introduced will not endanger the existing flora and fauna. Extinct specie introduction is only possible with prior approval from the Federal Ministry of Water Works, Agriculture and Forestry. Law on Water Protection (Official Gazette of FBiH 33/03 and Official Gazette of RS 53/02) The Law on Water Protection is based on general provisions on water use, water management and flood protection. Amongst the general provisions, and requirements set forth for different types of water use, a chapter is dedicated to releases into the water bodies. In Article 23 the Law deals with agricultural chemicals and fertilizer use. It is prohibited to use fertilizers and agricultural chemicals in coastal areas (including rivers and lakes) and in a strip 10 m broad from the inner edges of a waterway. Federal Ministers of Environment and Agriculture will develop a regulation on agricultural production that would lead to a decrease in contamination of waters by nitrates and agricultural chemicals. The Federal Minister will also establish a list of sensitive areas where bans on fertilizer and chemicals use need to be placed and where water quality monitoring is required. The sensitive areas include areas that have a tendency for eutrophication, water sources that already have a relatively high nitrate value, or water that requires additional treatment before satisfactory water quality can be achieved. Regulation on Hazardous Substances which must not be discharged into watercourses (Official Gazette of SFRJ, No. 3,7/66) This regulation specifies the maximum content of hazardous substances, including some obsolete pesticides such as DDT, in water aimed at maintaining the required quality of water for different purposes. Water intended for use in food production represents one of the water categories defined by the legislation.


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Decree on Maximum Allowed Radio-nuclides and Hazardous Substances Concentration in National, International and Coastal Waterways of Yugoslavia (Official Gazette of RBiH and SFRJ, No. 8/78) This former Yugoslav decree (decision) of 1978 is still in power and specifies the maximum allowed concentration of radio-nuclides and hazardous substances, in international and coastal sea waters. Thus for instance, it sets the limit of 0.04 mg/l for the concentration of DDT in water courses of classes I and II, whereas the limit for its concentration in water courses of classes III and IV is 0.1 mg/l. Regulation on the Establishment of Sanitary Protection Zones and Protection Measures for Drinking Water Sources (Official Gazette of FBiH, No. 51/02) This regulation stipulates that sanitary protection zones must be established for water sources, based on prior research of specific features of each individual location. Three protection zones are to be established around water sources:

o 1st Protection Zone, subject to most stringent protection regime. This zone has a radius of at least 50 m from the water source and must be fenced to prevent admission other than by employees of the water (source) management company.

o 2nd Protection Zone, subject to “limited”, i.e. moderate protection regime. The radius of this zone is to be established at the point from which groundwater requires 180 days to reach the water source. Open storage and use of pesticides is not permitted in this zone.

o 3rd Protection Zone, subject to “mild”, i.e. lesser protection regime. The radius of this zone is to be established at the nearest hydrological divide (watershed boundary) determined during exploitation of the water source. Open storage and use of pesticides is neither permitted in this zone.

Regulation on Protection Measures, Establishment and Maintenance of Sanitary Protection Zones for Water Sources, Areas around Water Sources, Water Management Structures and Water Used for Human Consumption (Official Gazette of RS, No. 7/03) This regulation sets forth implementation of protective measures in areas of water sources designated for human use or water supply, which need to be protected from intentional or accidental pollution and other negative impacts affecting the water quality. According to this regulation, the following sanitary protection zones are to be established around water sources:

o 1st Protection Zone (immediate protection zone). The boundary of this zone is to be established at a radius from which groundwater requires 7 days to reach the water source, but not closer than 50 m from the water source. This zone must be fenced.

o 2nd Protection Zone (narrow protection zone). The boundary of this zone is to be

established at a radius from which groundwater requires 90 days to reach the water source, but not closer than 250 m from the boundary of 1st Protection Zone, i.e. 300 m from the water source. Neither open storage/application of synthetic fertilizers and pesticides, nor any agricultural activities are allowed within this zone.


May 2007 18

o 3rd Protection Zone (wider protection zone). The boundary of this zone is to be established at a radius from which groundwater requires 180 days to reach the water source, but not closer than 200 m from the boundary of 2nd Protection Zone, i.e. 500 m from the water source. Neither open storage/application of synthetic fertilizers and pesticides, nor any agricultural activities are allowed within this zone.

Decree on Classification of Waters and Waterways (Official Gazette of RS, No. 42/01) This decree establishes the criteria for classification of waterways, including surface water, groundwater, and other waterways. It specifies classes according to quality based on ecological parameters and different types of aquatic systems, as well as water use to meet current and planned needs. This Decree addresses all types of surface water (rivers, lakes, artificial and modified waterways), groundwater and mineral and thermal water. The classification system was introduced to facilitate efficient protection of waterways. Regulation on Hygienic Properties of Potable Water (Official Gazette of RS, No. 40/03) This regulation prescribes the hygienic properties of water rendering it suitable for drinking and human consumption. Law on Waste Management of FBiH and RS (Official Gazette of FBiH 33/03 and Official Gazette of RS 53/02) The Law on Waste Management is a framework document and provides general provisions for the overall concept of waste management, while specific issues are dealt with within the bylaws that have been developed or are currently in the adoption procedure. The Law on Waste Management, in relation to this Project, sets general requirements on the management of hazardous wastes and utilization of animal wastes in agriculture. The Waste Catalogue, which is a bylaw, i.e. implementing regulation of the federal framework Law, provides a list of wastes, also designating specific hazardous wastes, in accordance with the corresponding EU directive. Waste from agricultural production, gardening, production of water cultures, food preparation and processing, hunting and fishing is specified as one of the sub-categories within the waste catalogue. This category includes waste animal tissue, waste agricultural plants, waste plastics, other animal wastes, forestry wastes and waste non-hazardous chemicals. Of the listed waste types within this category, only the wastes resulting from hazardous agrichemicals are rendered hazardous. Another bylaw expected to be introduced is the federal Regulation on animal wastes and other non-hazardous wastes which can be used in agriculture. This bylaw allows for animal wastes and agricultural wastes, including manure and sewage sludge to be used in agriculture, as long as the wastes are not hazardous, toxic or from animals that have died from disease. This bylaw also addresses waste chemicals used in agriculture, including chemical packaging, unused chemicals or expired chemicals, classifying them as hazardous wastes requiring special treatment, according to the provisions of the Law on Waste Management, Article 36. It should be noted that for the time being no specific legal/regulatory framework for disposal of laboratory waste management is available.


May 2007 19

Law on Air Quality Protection (Official Gazette FBiH 33/03 and Official Gazette RS 53/02) Bylaw entitled Regulation on Guidelines for Operating Conditions for Waste Incineration Plants has been issued under the Law on Air Quality Protection. This Regulation provides provisions on operating conditions, air emissions, and wastewater management that is generated upon incineration of wastes, both domestic and hazardous.

Law on Sanitary Inspection (Official Gazette of RS, No.14/94) This law establishes the inspection of the implementation of the legislation and prescribed measures related to sanitary, hygienic and anti-epidemic protection of population. Sanitary inspection applies to all structures, activities, products and individuals which can endanger or negatively impact human health.


May 2007 20

4 REVIEW OF APPLICABLE WORLD BANK REQUIREMENTS Environmental Assessment Safeguard Policy (OP 4.01) The World Bank requires environmental assessment (EA) of projects proposed for Bank financing to help ensure that they are environmentally sound and sustainable, and thus improve decision making (OP 4.01, January 1999). EA is a process whose breadth, depth, and type of analysis depend on the nature, scale, and potential environmental impact of the proposed project. EA evaluates a project's potential environmental risks and impacts in its area of influence; examines project alternatives; identifies ways of improving project selection, siting, planning, design, and implementation by preventing, minimizing, mitigating, or compensating for adverse environmental impacts and enhancing positive impacts; and includes the process of mitigating and managing adverse environmental impacts throughout project implementation. The World Bank favors preventive measures over mitigation or compensatory measures, whenever feasible.

EA takes into account the natural environment (air, water, and land); human health and safety; social aspects (involuntary resettlement, indigenous peoples, and cultural property); and transboundary and global environmental aspects. It also considers the variations in project and country conditions; the findings of country environmental studies; national environmental action plans; the country's overall policy framework, national legislation, and institutional capabilities related to the environment and social aspects; and obligations of the country, pertaining to project activities, under relevant international environmental treaties and agreements. The Bank does not finance project activities that would contravene such country obligations, as identified during the EA.

The Bank undertakes environmental screening of each proposed project to determine the appropriate extent and type of EA. The Bank classifies the proposed project into one of four categories, depending on the type, location, sensitivity, and scale of the project and the nature and magnitude of its potential environmental impacts.

• Category A: A proposed project is classified as Category A if it is likely to have

significant adverse environmental impacts that are sensitive, diverse, or unprecedented. These impacts may affect an area broader than the sites or facilities subject to physical works. EA for a Category A project examines the project's potential negative and positive environmental impacts, compares them with those of feasible alternatives (including the "without project" situation), and recommends any measures needed to prevent, minimize, mitigate, or compensate for adverse impacts and improve environmental performance. For a Category A project, the borrower is responsible for preparing a report, normally an EIA (or a suitably comprehensive regional or sectoral EA).

• Category B: A proposed project is classified as Category B if its potential adverse environmental impacts on human populations or environmentally important areas - including wetlands, forests, grasslands, and other natural habitats - are less adverse than those of Category A projects. These impacts are site-specific; few if any of them are irreversible; and in most cases mitigation measures can be designed more readily than for Category A projects. The scope of EA for a Category B project may vary from project to project, but it is narrower than that of Category A EA. Like Category


May 2007 21

A EA, it examines the project's potential negative and positive environmental impacts and recommends any measures needed to prevent, minimize, mitigate, or compensate for adverse impacts and improve environmental performance. The findings and results of Category B EA are described in the project documentation (Project Appraisal Document and Project Information Document).

• Category C: A proposed project is classified as Category C if it is likely to have minimal or no adverse environmental impacts. Beyond screening, no further EA action is required for a Category C project.

• Category FI: A proposed project is classified as Category FI if it involves investment of Bank funds through a financial intermediary, in subprojects that may result in adverse environmental impacts.

In addition to this, the World Bank's exclusion list forbids financing of certain activities and projects. Several items on the exclusion list are directly related to environmental protection. The exclusion list is given below.

- Production or activities involving harmful or exploitative forms of forced labor/harmful child labor

- Production or trade in any product or activity deemed illegal under host country laws or regulations or international conventions and agreements

- Production or trade in weapons and ammunition - Production or trade in alcoholic beverages (excluding beer and wine) - Production or trade in tobacco - Gambling, casinos and equivalent enterprises - Trade in wildlife or wildlife products regulated under CITES - Production or trade in radioactive materials - Production or trade in or use of unbonded asbestos fibers - Commercial logging operations or the purchase of logging equipment for use in

primary tropical moist forest (prohibited by the Forestry policy) - Production or trade in products containing PCBs - Production or trade in pharmaceuticals subject to international phase outs or bans - Production or trade in pesticides/herbicides subject to international phase outs or bans - Production or trade in ozone depleting substances subject to international phase out - Drift net fishing in the marine environment using nets in excess of 2.5 km in length

Pest Management Safeguard Policy (OP 4.09) The purposes of OP 4.09 are: (i) to ensure good practices are applied in World Bank financed projects, (ii) avoid excessive use of pesticides, and (iii) promote environmentally sound and sustainable pest management. Its objectives include: (i) minimize the environmental and health hazards related to pesticide usage, (ii) ensure that pest management activities follow an Integrated Pest Management (IPM) approach, and (iii) develop national capacity to implement IPM-based crop protection and pesticide regulation. The overall pest management approach is based on the capacity of the country’s regulatory framework and institutions to promote and support safe, effective and environmentally sound pest management.


May 2007 22

OP 4.09 is triggered when: (i) the project involves procurement of pesticides or pesticide application equipment, (ii) the project is expected to introduce new pest management practices or expand or alter existing pest management practices, and/or (iii) the project may lead to substantially increased pesticide use and subsequent environmental and health risks. While the Agriculture and Rural Development Project will not support any of the above, use of pesticide may increase as a result of the agriculture extension services activities and the rural development program.


May 2007 23

5 BRIEF REVIEW OF RELEVANT EU DIRECTIVES Having in mind Bosnia and Herzegovina’s aspirations to join the European Union, the national legislation is being adjusted in order to transpose the provisions of EU environmental directives. In view of this Project, the provisions of the following directives therefore need to be adhered to the extent possible: Council Directive 96/61/EC on Integrated Pollution Prevention and Control (IPPC Directive) This purpose of this directive is to achieve integrated prevention and control of pollution arising from various activities. It lays down measures to prevent or reduce emissions in the air, water and land. The corresponding BiH legislation already reflects the environmental permitting requirements set by this directive. Council Directive 79/117/EEC prohibiting the placing on the market and use of plant protection products containing certain active substances and Council Directive 91/414/EEC concerning the placing of plant protection products on the market. The 79/117/EEC directive calls for a phase out of several mercury compounds based pesticides, as well as the persistant organic pollutant (POP) pesticides4 listed in Table 1 below.

Table 1: Pesticides to be phased out from the market as per EU Directives

Pesticide Some Other Commercial/Trade Names (source: UNIDO)

Aldrin Aldrec, Aldrex, Aldrex 30, Aldrite, Aldrosol, Altox, Compound 118, Drinox, Octalene, Seedrin

Chlordane

Aspon, Belt, Chlroiandin, Chorkil, Corodan, Cortilan neu, Dowchlor, HCS 3260, Kypchlor, M140, Niran, Octachlor, Octaterr, Ortho Klor, Synklor, Tat chlor 4, Topichlor, Toxichlor, Veliscol 1068

Dieldrin Alvit, Dieldrite, Dieldrix, Illoxol, Panoram D31, Quintox

DDT

Bovidermol, Chlorophenothan, Chlorophenothane, Chlorophenotoxum, Citox, Clofenotane, Dedelo, Deoval, Detox, Detoxan, Dibovan, Dicophane, Didigam, Didimac, Dodat, Dykol, Estonate, Genitox, Gesafid, Gesapon, Gesarex, Gesarol, Guesapon, Gyron, Havero Extra, Ivotan, Ixodex, Kopspl, Mutoxin, Neocid, Parachlorocidum, Pentachlorin, Pentech, PPzeidan, Rudseam, Santobane, Zeidane, Zerdane

Endrin Compound 269, Endrex, Hexadrin, Isodrin Epoxide, Mendrin, Nendrin Heptachlor -

Hexachlorobenzene (HCB) Amaticin, Anticarie, Bunt cure, Bunt no more, Co op hexa, Granox, No bunt, Sanocide, Smut go, Sniecotox

4 These POP pesticides, along with Mirex and Tocaphene, belong to internationally so called “dirty dozen” POPs


May 2007 24

Council Directive 91/676/EEC concerning the protection of waters against pollution caused by nitrates from agricultural sources The “Nitrate Directive”, as commonly referred to, is aimed at minimizing pollution of watercourses due to fertilizer nitrate. It thus specifies that manure application be limited to a quantity equivalent to maximum 210 kg nitrogen per hectare per year during first four years, afterwards quantity equivalent to maximum 170 kg nitrogen per hectare. Council Directive 92/46/EEC laying down the health rules for the production and placing on the market of raw milk, heat treated milk and milk-based products This directive specifies the health rules for the production and placing on the market of raw milk, heat-treated drinking milk, milk for the manufacture of milk-based products and milk-based products intended for human consumption. Among other, it addresses animal health requirements; hygiene of the holding; hygiene in milking; hygiene of premises, equipment and tools; staff hygiene; production hygiene; and some essential infrastructure requirements.

6 PROCEDURES FOR ENVIRONMENTAL SCREENING OF RURAL DEVELOPMENT SUB-PROJECTS

The Project under Component B will finance primarily rural development measures aiming at on-farm improvements within the boundaries of existing farms, which are not expected to result in changes in land use5. The Rural Development Grants Program Manual to be modeled after the IPARD manuals, which will be developed during the first year of Project implementation, will include generic and specific eligibility criteria that will make reference to requirements of applicable BiH legislation on environmental assessment and permitting as well as requirements of the World Bank safeguards operational policies. Other eligibility criteria may include waste management permit, water management permit, construction and urbanism permit, among other. Table 2 below lists the requirements for compliance with BiH’s environmental regulations. It lists the screening criteria, environmental documentation, and review and approval process. Notwithstanding the procedures listed in Table 2, for those activities where the BiH’s regulation calls for an environmental permit only, they will also be subject to the submission of an Environmental Management Plan (EMP). The EMP is an expanded version of the what is strictly required by the BiH’s regulation. A sample format of what should be included in the EMP is presented in Appendix 7. The procedures described in this EMF are expected to apply to the majority of rural development activities to be supported by the Rural Development Grants, which are expected to be Environmental Categories B and C (according to the World Bank classification). Procedures for any environmental category A’s rural development activity would have to be developed in close consultation with the World Bank.

5 The Project under Component B will finance primarily rural development measures aiming at on-farm improvements within the boundaries of existing farms, which will not require any land acquisitions or involuntarily resettlement, or change the rural nature of the production processes on the land.


May 2007 25

It should be noted that for existing facilities6, the activities listed in Table 2 are subject to mandatory development and submission of a Plan of Activities with measures and terms for gradual reduction of emissions to the Ministry of Environment in charge, prior to submitting application for environmental permit7. Activities of the types shown in Table 2, yet of smaller scale (capacities, area size, etc. below the thresholds indicated in the table) are not subject to environmental permitting. However, Table 2 should be considered a preliminary screening tool. To avoid misinterpretation, final decision should be based on additional consideration of the legislation listed in Section 3, as well as consultations with the Ministry of Environment in charge. For any other related activities not listed in Table 2, those in charge in the formulation of the Rural Development Grant Manual will have to refer to the legislation on EA mentioned in Section 3.

6Facilities or activites for which an urbanism permit or construction permit has been granted prior to enforcement of the Law on Environmental Protection in 2003 in FBiH and 2002 in RS. 7For plan contents and deadlines please refer to Regulation on conditions for submission of environmental permit applications for plants and facilities permitted prior to enforcement of the Law on Environmental Protection. FBiH (Official Gazette 68/05), Regulation on deadlines for submission of environmental permit applications for plants and facilities permitted prior to enforcement of the Law on Environmental Protection. FBiH (Official Gazette 68/05), corresponding RS legislation, Brcko District legislation and cantonal legislation, where adopted (e.g. Canton Sarajevo, Zenica-Doboj Canton).


May 2007 26

Table 2: Screening criteria for possible investments to be supported by the Project under the rural development grants according to BiH EA legislation requirements

Federation of Bosnia and Herzegovina

Republika Srpska

Activity type Mandatory EA

procedure (FBiH)

EA requirement subject to ministerial

judgement (FBiH)

Environmental permit required (FBiH)

Env. permit required (Canton

level within FBiH)

Mandatory EA procedure (RS)


judgement (RS)

Env. permit required (RS)

Comments

Facilities for disposal or treatment of animal

waste √ √ √ √

Restructuring of agricultural farms on area exceeding 30 ha

√ √ √ √

Restructuring of agricultural farms on area 15-30 ha in size

√ √ √ √

Restructuring of agricultural farms on

area 3-15 ha

√

Subject to direct permitting procedure (check legislation of canton concerned for any deviations)

Use of previously uncultivated agricultural

land for intense agriculture on area

exceeding 30 ha in size

√ √ √

√

Use of previously uncultivated agricultural land for intense agricul-

ture on area 15-30 ha

√ √ √ √

Use of previously uncultivated agricultural land for intense agricul-

ture on area 3-15 ha

√



May 2007 27


Republika Srpska


procedure (FBiH)


judgement (FBiH)



level within FBiH)



judgement (RS)


Comments

Facilities for animal

breeding with capacity less than

20,000 broilers

√

√ √

Facilities for animal breeding with capacity

less than: 8,000 hens

or 400 pigs

or 100 sows

or 100 cattle/large animals

Exempt from EA or permitting

requirements vs. domestic legislation. However, at least an

EMP is to be developed to meet

the WB requirements.

Vegetables processing with output 20 - 100

t/day √


Milk processing with

input 5-25 t/day

√


Storage of toxic or very

toxic substances 10-50 t or 1-5 t

respectively

√

Subject to direct permitting procedure (check legislation of canton concerned

for any deviations). In RS exempt from permitting, but at least an EMP is to

be developed to meet the WB requirements


May 2007 28


Republika Srpska


procedure (FBiH)


judgement (FBiH)



level within FBiH)



judgement (RS)


Comments

Fish farming on area 3-15 ha in size √

Subject to direct permitting procedure (check legislation of canton concerned

for any deviations). In RS exempt from permitting, but at least an EMP is to

be developed to meet the WB requirements


May 2007 29

The scope and extent of EA entailed in the BiH environmental permitting system generally satisfies the World Bank EA requirements and can be considered sufficient to meet the latter. Therefore activities for which environmental permit has been issued are in principle automatically acceptable to the World Bank. However, since domestic legislation for the time being does not impose formal restrictions on the types of pesticides to be used in agriculture, applicable restrictions of the EU directive 79/117/EEC prohibiting the placing on the market and use of plant protection products containing certain active substances8, mentioned in Section 5 of this document, and the official lists of plant protection products approved in some in this respect more advanced neighboring countries9 should be used as a reference when additionally checking acceptability of pesticides planned to be used within the proposed agricultural activities. In the case of activities not granted environmental permit or not subject to such permitting in BiH, it is necessary to check applicability of the World Bank requirements, specified by the WB Operational Policy (OP) 4.01 on Environmental Assessment. This should be done by entity level PCUs in consultation with the Bank staff. As described in Section 4, the Bank classifies projects in categories depending on the type, location, sensitivity, and scale of the project and the nature and magnitude of its potential environmental impacts:

- A project is classified Category A if it is likely to have significant adverse environmental impacts that are sensitive, diverse, or unprecedented. These impacts may affect an area broader than the sites or facilities subject to physical works. Environmental Impact Assessment procedure of an extent specified by the World Bank is mandatory for such projects. An EA report must contain the following sections: Executive Summary, Review of Policy/Legal/Administrative Framework, Project Description, Baseline Data, Description of Environmental Impacts, Description of Considered Project Alternatives, Environmental Management Plan, Record of Public Consultations.

- A proposed project is classified Category B if the potential environmental impacts are less adverse than those in the case of Category A projects. The impacts are site specific and few, if any are irreversible. The extent of Environmental Assessment for Category B projects can vary from project to project, but in any case it is smaller than in the case of Category A projects. Environmental Management Plan (EMP) represents the essential part of EA documents for B Category projects.

- Category C projects, i.e. projects not expected to result in significant environmental impacts or projects whose potential impacts are minimal, do not require an Environmental Assessment.

8 For the time being manufacturing of pesticides does not take place in BiH, therefore this essentially applies to

imports of pesticides from other countries. 9 Official lists applicable in Croatia and Slovenia represent a good reference and can be downloaded from the

Internet sites of the respective ministries of agriculture

It should be noted that for certain activities which are not subject to environmental permitting as summarized in the screening matrix, an environmental assessment may still be deemed required according to WB OP 4.01.


May 2007 30

When formulating the Rural Development Manual, the following guidelines should be taken into account to ensure activities supported by the rural development grants are acceptable from environmental point of view. During the application process, the following information and documents need to be gathered from each applicant and reviewed:

a. All permits, clearances or agreements that the applicant has obtained prior to submitting its application should include land ownership or tenure documentation and water management or urbanism/construction permits, veterinary clearances, water management or other related documents. The officer in charge of reviewing the application should inquire whether the applicant has an environmental permit for the planned activity. If this is the case, then the activity meets all of the local environmental criteria and is acceptable from environmental point of view. In the event that the applicant does not hold an environmental permit despite being obliged according to Table 2, such a permit must be first obtained from the competent authority to become eligible for financial support. In addition to checking if the activity (not necessarily the application for financing) will require additional use of pesticide/fertilizer, no further environmental screening is necessary for activities permitted by the BiH environmental authorities. Otherwise the following additional information should be gathered and evaluated:

b. Information on location of the operation or activity, which will help in identifying the characteristics of the surrounding environment. This should include information on any nearby drinking water sources. Open storage or application of pesticides or fertilizers within water source protection zones is not acceptable. If boundaries of water source protection zones are not officially established, such activities should not be conducted within a radius of at least 500 m from water source. Use of fertilizers or pesticides within a 10 m range from coasts or river banks is also not acceptable. In case the setting is urban, then attention needs to be paid to neighborhoods and the urban lifestyle, whereas if the activity will be carried out in a rural area, then the natural environment is more at stake. Location is an important issue concerning air-borne releases or noise, vibration, etc. Additionally, this step provides information on the density or frequency of similar operations in a specific area. The environment in this area may be able to stand the impacts of one or two similar activities, but if the given area has numerous branches of similar activities, the cumulative impact on the environment will be significant, and will exceed the environment’s receiving capacity.

c. Brief information on operations which the activity or process comprises. This enables the decision-maker to become familiar with the activity, and in some cases, while eliminating additional questions, common sense might direct some of the questions or answers.

d. Information on products and by-products of the activity in order to identify the potential threats and risks to the environment or to the health and safety of the population based on the product or by-product components.

e. Information on key potential environmental impacts, i.e. the impacts that could occur within the development or operation of the activity proposed. In many cases applicants may apply mitigation measures in order to minimize the possible impact on the environment. Some of the mitigation measures may include: reforestation of deforested areas, proper waste management techniques, proper handling of hazardous


May 2007 31

wastes and their safe disposal, developing management plans for each of the significant environmental issues, use of low emission processes, etc. Applicants should be asked to provide information on baseline conditions for the given activities, which will be used for later monitoring of accepted and supported activities. Such information may include baseline soil nutrient analysis results, data on ground or surface water quality, or else based on judgment of each individual case by application evaluation team.

f. Additional information on possible particular effects on the human health, safety and social issues.

g. If possible, information on previous complaints concerning applicant’s past or ongoing activities. This is essential in cases where an applicant desires to expand or upgrade an existing activity.

The purpose of the data collection process is:

• to have a clear understanding of the ways sub-projects supported under the Rural Development Program can impact the environment and their locality, and

• to understand and provide information on how the pollution prevention and mitigation measures can be used as an effective tool that would raise the environmental performance of a project activity.

The checklists presented in Tables 3 and 4 should be used for collection of data and information during the screening of small scale activities exempt from BiH environmental permitting. One checklist was prepared for the sectors of trade, services and small-scale production and the other for agriculture (including growing of medicinal herbs, animal husbandry). The checklists contain questions based on identified potential negative impacts on the environment in each of the defined sectors. The answers should be given either as a “YES” or “NO”, while each of the answers has an assigned positive or negative value, depending on the potential impact. In the checklists, there is space allocated for additional comments, and a list of possible mitigation measures. In the case that some significant impacts can not be adequately mitigated, there is substantiated ground for rejection of the related activity. The bottom part of the checklist is reserved for evaluation and summing of positive and negative values as well as the analysis of mitigation measures proposed. This enables decision making regarding the activity’s environmental impacts, not only based on direct answers received from the applicant but also based on logical conclusions related to specific features of the activity.


May 2007 32

Table 3: Checklist for Agricultural Activities10

Environmental Issues Yes / No (Please circle) Value

(Pls. circle) Specific Features

(Please state) Mitigation measures /Alleviating circumstances

(Please circle) 1. AIR Will the emission of pollutants into the atmosphere be contained within the household emissions threshold?

Yes No

+ -

a) Vent for air and fumes b) Ventilation c) Filters for absorbing odors c) Other (please state)

2. WATER

Will the emission of pollutants into the water be contained within the household emissions threshold?

Yes No

+ -

a) Lagoon or a septic tank b) Separate wastewater collection system c) Controlled use of pesticides and artificial fertilizers

according to best EU practices d) Other (please state)

3. WASTE

3.1 Will the waste generation be contained within the household waste generation threshold?

Yes No

+ -

a) Manure will be used as fertilizer b) Manure and other organic wastes will be sold c) Collection and transport to landfill/disposal site d) Other (please state)

3.2 Can the waste generated within the activity be classified as hazardous?

Yes No

- +

a) Storage and disposal according to regulations b) Transport according to regulations c) Contract with a specialized disposal firm d) Other (please state)

4. NATURE (living world)

Will this activity endanger the natural environment, protected areas, endemic plant and animal species or fungi placed under protection?

Yes No

- +

a) Land is being used in accordance with category b) There are no nearby protected areas c) No use of endemic or protected species d) Other (please state)

5. NATURE (non-living environment)

Will this activity include changes in the predicted land-use and will it include works that might endanger the soil/land (logging, planting new species...)

Yes No

- +

a) Minimal land-use changes – within the same category

b) Land-use change authorization c) Planned activities will not endanger soil/land d) Other (please state)

6. RURAL LANDSCAPE

Will the activity contribute to changes in rural landscape?

Yes No

- +

a) Activity is appropriate for rural environment b) Change in the type of machinery or material used c) This activity is traditionally conducted in this

environment d) Other (please state)

7. SOCIAL ASPECTS

Will the neighboring residents or commercial subjects object to the subject activity being carried out?

Yes No

- +

a) Neighbor statement of agreement b) Statement of agreement of commercial subjects c) Statement of agreement of local (community)

authority d) Other (please state)

8. TOTAL Accepted or proposed mitigation measures (please

circle):

1 a b c d 2 a b c d 3.1 a b c d 3.2 a b c d 4 a b c d 5 a b c d 6 a b c d

Total value of positive and negative values and evaluation of mitigation measures

Positive values: Total: Negative values: Total:

Items for which specific conditions have been accepted: Yes: _______________ No: _______________

7 a b c d

OPINION: 1. YES - ACTIVITY ENVIRONMENTALLY ACCEPTABLE (Please circle) 2. NO - ACTIVITY ENVIRONMENTALLY NOT ACCEPTABLE

10 Applying to animal husbandry, growing of medicinal herbs, and other activities.


May 2007 33

Table 4: Checklist for Trade/Services and Small-Scale Production

Environmental Issues Yes / No (Please circle) Value

(Pls. circle) Specific Features

(Please state) Mitigation measures / Alleviating Circumstances

(Please circle) 1. AIR

Will the emission of pollutants into the atmosphere be contained within the household emissions threshold?

Yes No

+ -

a) Chimney within the building b) Additional/separate chimney/stack c) Ventilation and/or odor absorbent filters d) Other (please state)

2. WATER

Will the emission of pollutants into the water be contained within the household emissions threshold?

Yes No

+ -

a) Wastewater collection within the building b) Septic tank c) Pre-treatment and release into wastewater collection

system d) Other (please state)

3. WASTE

3.1 Will the waste generation be contained within the household waste generation threshold?

Yes No

+ -

a) Transport to municipal landfill/disposal site c) Selective collection for recycling arrangements d) Other (please state)

3.2 Can the waste generated within the activity be classified as hazardous?

Yes No

- +

a) Adequate storage and disposal b) Transport according to regulations c) Contract with a specialized disposal firm d) Other (please state)

4. NOISE AND VIBRATIONS11

Is the level of noise and vibrations within the acceptable limits and shall, therefore, not affect the neighboring residents or commercial subjects?

Yes No

+ -

a) Insulation materials (building) b) Insulation of the appliance / machinery that generates

noise c) Anti-vibration lining d) Other (please state)

5. POISONS / TOXICS Will the location be used (fully or partially) to store, sell, manufacture or process poisons, pesticides, or other hazardous matter (flammable materials, explosives, corrosives...)?

Yes No

- +

a) Packaging according to best int. standards b) Storage according to best int. standards c) Transport according to regulations (ADR, RID) d) Other (please state)

6. NATURAL AND URBAN LANDSCAPE

Will the activity contribute to changes in the natural or urban landscape?

Yes No

- +

a) Green buffer zone b) Provided access for users c) Provided access and parking for transport vehicles d) Other (please state)

7. SOCIAL ASPECTS

Are the neighboring residents or commercial subjects expected to object to the activity being carried out?

Yes No

- +

a) Neighbor’s statement of agreement b) Statement of agreement of commercial subjects c) Statement of agreement of local (community) authority d) Other (please state)

8. TOTAL Accepted or proposed mitigation measures (please

circle): 1 a b c d 2 a b c d 3.1 a b c d 3.2 a b c d 4 a b c d 5 a b c d 6 a b c d

Sum of positive and negative values and evaluation of mitigation measures

Positive values: Total: Negative values: Total:

Items for which specific conditions have been accepted: Yes: _______________ No: _______________

7 a b c d OPINION: 1. YES - ACTIVITY ENVIRONMENTALLY ACCEPTABLE (Please circle) 2. NO - ACTIVITY ENVIRONMENTALLY NOT ACCEPTABLE

11 The following threshold values are proposed based on existing national and local legislation: Noise is not to exceed 40 dB from 6 am until 10 pm or 30 dB from 10 pm until 6 am in facilities and locations which it directly affects.


May 2007 34

The interviewer (representative of the Competent Authority – Ministries of Agriculture) fills out the form, entering additional brief facts and circumstances in the column labeled “Specific Features” in order to support the responses given. Considering the fact that there are no legally defined thresholds for household emissions referred to in the check lists, the following provisional thresholds are proposed to be

environmental management framework...bosna-s consulting ul. nova br. 26, 71000 sarajevo bosnia and...

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