over-view of world bank cea pilots

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OVER-VIEW OF WORLD BANK CEA PILOTS Belarus Karnataka Tajikistan Serbia and Montenegro Iran Pakistan Andhra Pradesh Rwanda Ghana Ethiopia Egypt Morocco Tunisia Colombia Dominican Republic Bhutan Bangladesh Uttar Pradesh Region Country Status Task Team Leader AFR Ethiopia Ongoing Magda Lovei AFR Ghana Planned Aziz Bouzaher AFR Rwanda Planned Remi Kimi ECA Belarus Planned ~ ECA Tajikistan Planned Nirmala Saraswat ECA Serbia and Montenegro Completed Arcadie Capcelea LAC Colombia Planned Kulsum Ahmed LAC Dominican Republic Ongoing Theresa Bradley MNA Egypt Ongoing Sherif Arif MNA Tunisia Ongoing Sherif Arif MNA Iran Planned ~ SAR Bangladesh Planned Paul Martin SAR Bhutan Planned Fred Swartzendruber SAR India, Uttar Pradesh Ongoing Carter Brandon, Smita Misra SAR India, Andhra Pradesh Ongoing Kseniya Lvovsky, Sameer Akbar SAR India, Karnataka Ongoing Carter Brandon SAR Pakistan Planned Magda Lovei

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Page 1: OVER-VIEW OF WORLD BANK CEA PILOTS

OVER-VIEW OF WORLD BANK CEA PILOTS

Belarus

Karnataka

TajikistanSerbia and Montenegro

Iran Pakistan

Andhra Pradesh

Rwanda

GhanaEthiopia

Egypt Morocco

Tunisia

Colombia

Dominican Republic Bhutan

Bangladesh Uttar Pradesh

Region Country Status Task Team Leader

AFR Ethiopia Ongoing Magda Lovei AFR Ghana Planned Aziz Bouzaher AFR Rwanda Planned Remi Kimi ECA Belarus Planned ~ ECA Tajikistan Planned Nirmala Saraswat

ECA Serbia and Montenegro Completed Arcadie Capcelea

LAC Colombia Planned Kulsum Ahmed

LAC Dominican Republic Ongoing Theresa Bradley MNA Egypt Ongoing Sherif Arif MNA Tunisia Ongoing Sherif Arif MNA Iran Planned ~ SAR Bangladesh Planned Paul Martin SAR Bhutan Planned Fred Swartzendruber

SAR India, Uttar Pradesh Ongoing Carter Brandon, Smita Misra

SAR India, Andhra Pradesh Ongoing Kseniya Lvovsky, Sameer Akbar

SAR India, Karnataka Ongoing Carter Brandon

SAR Pakistan Planned Magda Lovei

Page 2: OVER-VIEW OF WORLD BANK CEA PILOTS

O/CP).

THE DOMINICAN REPUBLIC Background:

The Dominican Republic (DR) is a small country with a highly centralized government that has limited capacity andresources to provide effective environmental management. Significant environmental legal and institutional reformshave taken place in the country, including the establishment of the new Ministry of the Environment, some of themsupported by the 1999-2002 National Environmental Policy Reform LIL. More broadly, economic developmentpolicy has changed significantly, with macroeconomic and trade reforms driving high rates of economic growth in afew key sectors (tourism, EPZs, telecom), and most recently with public sector reforms toward decentralization(management by sub-national level authorities, such as municipalities) and deconcentration (management by centralauthorities at sub-national level units, such as watersheds) just underway. These changes are having importantimpacts on the state of the environment and on the role for environmental protection within the objectives of povertyalleviation and sustained economic growth. Thus, it is an important time for the Bank to take stock of these changesand to build on the current state of knowledge of the environment to provide a strong strategic framework for ourdialogue with the Government on setting and supporting priorities for improving environmental management in thecountry. The DR is in a very active process of improving its management of the environment and developing itsstrategy. A great deal of basic information is already available including the Environmental Issues Paper conducted in1993, a recent diagnosis study, the legal and institutional review and the NEAP undertaken by the LIL. The DR CEAwill build on many of these activities.

Objective: The objective of the CEA is to develop a strategic framework to identify and address environmental priorities in theDR. It will inform the up-coming CAS and the development of the lending program that aims to improveenvironmental management in support of the MDGs, poverty alleviation, sustained economic growth, and protectionof the global commons. Further, the CEA will help guide and forge a consensus between the Bank and the DR(government, private sector and civil society) on key environmental priorities and on a programmatic approach toimproving environmental management.

Contents:

Given the timeframe for the development of the forthcoming environment loan, the Bank will conduct a “rapid” CEAof the DR that is highly participatory. The CEA will have two parts consisting of an overview of environmentalissues and strategic options, and more in-depth analysis and recommendations for one or two identified key priorityissues. The CEA will serve as a vehicle to help flesh-out and build broad based consensus on specific components andactivities that will aim to strengthen institutional capacity for environmental management.

Status: Ongoing Implementation Partners: The study is being managed by the World Bank and (potentially) the Food and Agriculture Organization,and is being executed jointly with the Government of DR. It will be financed from resources of the WorldBank (some from the Mainstreaming Fund for the Environment), and potentially, the FAO cooperativeprogram with the World Bank (FA Task Team Leader: Theresa Bradley (LCSEN)

[email protected]

CEA Pilots At-A-Glance

Page 3: OVER-VIEW OF WORLD BANK CEA PILOTS

k.

Ethiopia Background: In the past decade, Ethiopia has made significant progress in establishing the foundations for addressingenvironmental problems. The preparation and implementation of the Conservation Strategy of Ethiopia(CSE), the establishment of the Environmental Protection Authority (EPA) in 1995 and the approval of theEnvironmental Policy in 1997 are amongst its numerous accomplishments. However, as internationalexperience has shown, sustainable development requires that environmental considerations be mainstreamedinto macro-economic and sector policies and programs and in the government’s poverty reduction strategy,namely the Sustainable Development and Poverty Reduction Program (SDPRP). The PRSP process provides an overall framework for donor assistance, which is gradually returning tonormal levels after the end of the border conflict. In addition to the EU, a number of development agenciesincluding those in UK, Netherlands, Norway and the World Bank intend to provide budget support in linewith PRSP priorities. In light of this support for country led development programs, a strategic analysis ofthe country’s environmental issues and its policy and institutional capacity is imperative. Objective: The objective of the Ethiopia CEA is to help mainstream environmental considerations into theimplementation of the PRSP and to guide development assistance and capacity building. The CEA willinform the preparation of the first Poverty Reduction Support Credit (PRSC) in Ethiopia.

Contents: The Ethiopia CEA will review poverty-environment linkages in Ethiopia. In addition, it will assess thecountry’s institutional capacity for sustainable natural resources and environmental management in supportof the SDPRP, identify key constraints for achieving good environmental performance, and identify areas forcapacity building. It will do so by (i) examining current institutional framework and incentives for crosssectoral coordination, (ii) assess implications of ongoing civil service reforms, especially thedecentralization of public service delivery (iii) evaluate the effectiveness of the EIA system, and (iv) identifyareas of capacity building particularly by linking it to the GOE’s National Capacity Building Program andthe SDPRP implementation monitoring framewor

Status: Ongoing Implementation Partners: The study is being managed by the World Bank and DFID, and is being executed jointly with theEnvironmental Authority of Ethiopia and in coordination with the UNDPs lead development partner’stechnical group on environment. It will be financed from resources of the World Bank, DFID, and a WorldBank-managed Trust Fund from the Government of Norway. Task Team Leader: Magda Lovei (ENV)

[email protected]

CEA Pilots At-A-Glance

Page 4: OVER-VIEW OF WORLD BANK CEA PILOTS

INDIA- Andhra Pradesh State Background: Economic development and population growth in Andhra Pradesh (AP) have created significant environmentalpressures. Watersheds are heavily polluted “hot spots”; urban air pollution is on the rise, especially in Hyderabad,Visakhapatnam; and Vijayawada, urban environmental services do not cope with an increase in population,particularly in slums, ground water sources used for drinking in rural areas are often contaminated with bacteria,nitrates, and in some areas, fluoride; water availability, including groundwater depletion, is of growing concern; forestcover is diminishing in many locations, and areas of degraded land are increasing. Damages to human health fromenvironmental causes, including the lack of safe drinking water and basic sanitation, high levels of indoor and outdoorair pollution, and exposure to chemicals from agricultural and industrial activities, calculated as foregone income dueto illness and premature death, approaches 4 percent of state GSDP. The Government of Andhra Pradesh (GoAP) in collaboration with McKinsey and Company, Inc., has prepared a long-term development strategy, published as Andhra Pradesh: Vision 2020. The document considers a healthyenvironment a necessary element of the long-term vision for the State. It sets ambitious targets of increasing the areaunder forest cover from 23 percent to 33 percent, and of universal access to clean drinking water and basic sanitation,as a key public health investment. Through its support of Vision 2020, the Government recognizes the criticalimportance of developing a sound institutional and policy framework to achieving the vision of a “clean and green”Andhra Pradesh (AP). Among others, Vision 2020 recommends to internalize environmental considerations indevelopment planning, improve standards setting, strengthen compliance through complementing command-and-control regulations by market-based incentives, and increase the role of stakeholders in decision making andenforcement. The GoAP has requested assistance from the World Bank in the development of an operational strategyto implement the proposed approaches to environmental management in the context of its overall development goal ofrapid economic growth. Objective: The objective of the AP State-level Environment Analysis is to (i) improve the understanding of the mainenvironmental problems, their underlying causes, and future trends in the context of growth patterns foreseen byVision 2020; (ii) identify policies, investments, and institutional measures necessary to achieve the environmental anddevelopmental goals set in Vision 2020; (iii) help AP strengthen the capacity of local institutions to address priorityenvironmental issues, and (iv) engage a range of stakeholders in the process of environmental management, andcompliance monitoring and enforcement. Content: The program of work is proposed to include four components: These include preparation of an update of the State ofthe Environment (SOE) report and strategic environmental analysis focusing on in-depth assessment of environmentalpriorities and mitigation strategies in selected sectors/areas, identified through the SOE update process. In addition, thestudy will provide input into the design of institutional and policy reforms in environmental management. Theobjectives, process, findings and conclusions of the work will be communicated and disseminated to a wider audience,inviting feedback and facilitating popular consensus and support. Status: Ongoing

Implementation Partners: Government of Andhra Pradesh, World Bank, Department for International Development (DFID) collaborative project supported via World Bank non-lending TA. Task Team Leader: Kseniya Lvovsky (SASES) [email protected])

CEA Pilots At-A-Glance

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INDIA- Karnataka State Background: The Government of Karnataka (GoK) is seriously concerned with the management of its environmentalproblems-- reflected in its Chief Minister’s budget speech in March, 2002. As such, it has requested andagreed on a technical assistance program with the World Bank. As part of the “Karnataka EnvironmentProgram,” –the umbrella term for the program, the GoK is committed to preparing a State of theEnvironment Report and Action Plan in FY ‘02-’03. The technical assistance program also includes followon work in more detailed areas of environment policy and management. Objective: The overall objective of the ongoing study is to (i) identify and prioritize environmental issues and better understand potential constraints imposed by

the environment for realization of development goals; (ii) recommend policies, investments and institutional improvements to avert future environmental

damages to health, livelihoods and ecosystems at least cost, and (iii) strengthen the capacity of local institutions to set environmental priorities, foresee future changes and

develop and implement necessary policy and mitigation measures. Content: The study will include a number of tasks including taking stock of current environmental situation,identifying underlying causes of environmental degradation and estimating damages to human health andglobal commons resulting from environmental degradation. The study will summarize the policy frameworkfor environmental management, existing responsibilities of public and private institutions and NGOs, andassess environmental implications for the proposed plan projections for the 10th plan period bysectors/geographical areas. Environment problems and projections relating to specific sectors such asindustry and mining, urban development and agriculture will also be analyzed. The study will conclude witha series of recommended measures that will permit a flexible and efficient response to current and futureenvironmental concerns. Status: Ongoing

Implementation Partners: This State of the Environment Report and Action Plan is being prepared by the GoK, which is the keyimplementing agency. The World Bank is supporting the preparation of the report through staff dialogue andconsultations. The Karnataka Department of Environment with support from World Bank financedconsultants will organize three workshops to discuss the findings, report on progress and obtain feedbackfrom a range of stakeholders. Task Team Leader: Carter Brandon (LCSES) Smita Misra (SASES) [email protected] [email protected]

CEA Pilots At-A-Glance

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ssary.

INDIA- Uttar Pradesh Background: Roughly half of the World Bank’s India program is a state-focused strategy characterized by a targetedprogram of structural adjustment operations, in parallel with a multi-sectoral program of sector-lendingoperations. The immediate environment related concerns in the structural adjustment loans have been theimpacts of privatization and the energy sector on the environment, as well environmental concerns in thegovernance agenda of the reform loans. The first two have been addressed through a cross-support andsafeguards approach. The third has been addressed through policy dialogue leading to a “framework”approach, with a strong institutional development component. For Uttar Pradesh, addressing environmentalissues is extremely urgent and sharpening the strategic focus of environment- related work in line withhealth and livelihood of the 170 million inhabitants of the state is nece Objective: In the context of the UP State multi-sectoral program for poverty reduction, the Government of UP and theWorld Bank are undertaking an ‘Environmental Management Framework’ (EMF). The UP EMF will helpthe government monitor the environmental impact of the State's economic growth path over coming years,identify the highest priority environmental issues in the State, promote appropriate policies and managementstrategies for consideration by the State government, and support capacity-building efforts to help it achievethese objectives. Contents:

The UP EMF will consist of four components: (i) State of the Environment Report and Action Plan- whichwill review the current status of environmental degradation in the State along with policies, regulations,instruments and institutions for addressing environmental issues; (ii) Industrial Pollution InformationManagement and Disclosure Program- which will build capacity and improve effectiveness of the coreenvironmental agency of the State, the UP State Pollution Control Board (UP SPCB) to monitor industrialpollution and compliance levels; (iii) Assessment of Environmental Expenditure- which involves analysis ofexpenditures on environment related programs, across sectors and over time, by the core environmentalagencies to better understand the magnitude, allocation, and trends of environment-related expenditures as abasis for considering whether such allocations are commensurate with the economic cost of environmentaldegradation, and whether they correspond to the State's environmental priorities; (iv) Transaction Guidelinesfor Environmental Due Diligence in Privatization- which is being prepared to help address the potentiallysignificant environmental liabilities of public enterprises (PE's) being privatized or closed.

Status: Ongoing Implementation Partners: Government of Uttar Pradesh, World Bank, Government of UK’s Department for International Development(DFID), and Organization for Economic Cooperation and Development (OECD)

Task Team Leader: Carter Brandon (LCSES) Smita Misra (SASES) [email protected] [email protected]

CEA Pilots At-A-Glance

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SERBIA AND MONTENEGRO (formerly known as the Federal Republic of Yugoslavia) Background: As Serbia and Montenegro (SAM) embarks on a new course of economic development, it is important tounderstand what (if any) dangers this implies for the environment, especially over the longer term, and howappropriate safeguards can be built into the program. Ongoing economic reform provides both opportunitiesto address environmental issues – both legacy and emerging – and these interventions need to be identified.A review of the environment sector, a pilot CEA, was prepared for SAM to enable the Bank to guide theGovernment on environmental priorities and suggest strategies for tackling them. Environmentalmanagement in SAM will need to balance concerns related to urban/ industrial pollution, with those ofnatural resources management – biodiversity, forests, soils, freshwater and the marine environment –implying a need for analytical underpinning of the relative priorities among sectors. Objective: The objective of the environmental review prepared for the governments SAM is to update the Bank’sunderstanding of the sector following civil unrest and the division of the country into two semi autonomousrepublics, with a view towards guiding the Bank’s environment strategy for the future. The EnvironmentSector Review will also help develop and strengthen the dialogue between the governments of SAM and theBank on environmental issues, and contribute to the preparation of the PRSP, CAS and the preparation of acomprehensive National Environmental Action Plan (NEAP).

Content:

The environmental review will focus on (i) review of the existing situation in the environmental sector and identify priority areas for policy changes or investments and consider the role of the Government, the private sector and donors in implementing this agenda; (b) assess macroeconomic-environmental linkages and measures affecting long-term sustainability and financial viability within the priority areas; and (c) prepare a strategy for the Bank’s future involvement in the sector.

Status: Completed Implementation Partners: The study is being managed by the World Bank and is being executed jointly with the Government of SAM.It will be financed from resources of the World Bank (Mainstreaming Fund for the Environment), and theGlobal Public Goods Incentive Fund. Task Team Leader: Arcadie Capcelea (ECSSD) [email protected]

CEA Pilots At-A-Glance

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Pakistan Background: The Government of Pakistan has prepared an Interim Poverty Reduction Strategy Paper (I-PRSP) and is nowengaged in preparing its final PRSP. For the first time poverty reduction and human development are amongthe main goals of the reform program of macro-economic adjustment and improved governance. However,links between poverty reduction and sound environmental management remain to be highlighted. At present,the Bank is also supporting the implementation of the I-PRSP through a series of IDA adjustment creditsboth at the national and provincial levels. In order to ensure that the efforts to support poverty reduction,broad reforms and environmental management are mutually reinforcing, the need to undertake a strategiccountry environment analysis was identified by the World Bank Board of Directors. The Pakistan countryenvironment analysis responds to this request. The study builds on the mid-course evaluation of progressunder the highly ambitious ten-year National Conservation Strategy (NCS) framework, the EnvironmentalProtection and Resource Conservation Project (EPRCP) and other Bank projects and programs in Pakistan. Objective: The overall objective of the ongoing study is to (i) identify the key environmental challenges ofdevelopment, poverty reduction and broad reform programs; (ii) review the environmental implications ofpolices and reforms in key sectors; (iii) provide a diagnostic analysis of the environmental regulatory andinstitutional framework including a review of the environmental due diligence process in Pakistan, and (iv)identify gaps and propose actions for enhancing the policy and institutional framework for environmentalmanagement, including the enhanced use of strategic environmental assessments as a process/planning tool.

Contents:

The study reviews links between environment and people’s livelihood, health and vulnerability, theenvironmental factors of economic growth and global aspects. It summarizes the environmental implicationsof key polices and Pakistan’s reform agenda, describes lessons from building an environmental policy andinstitutional framework and the results of an analysis of the environmental assessment system. The reportconcludes with highlighting key findings and recommendations for priority actions. Status: Ongoing Implementation Partners: The study is being prepared by the World Bank in collaboration with the Ministry of Environment, LocalGovernment and Rural Development, Government of Pakistan. It is an outcome of multi-year process ofstocktaking, research, and dialogue with a range of stakeholders including Government officials in severalsectors at the central and provincial levels, development agencies and members of the civil society. Task Team Leader: Magda Lovei (ENV) Aziz Bouzaher (AFTES) [email protected] [email protected]

CEA Pilots At-A-Glance

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Tunisia Background: Despite a limited resource base, since the mid-1980s, Tunisia’s macro-economic performance has beenimpressive. This has been accompanied by substantial environmental improvements with direct impact onpeople’s health, quality of life and the quality of economic growth. For example, 97% of the people in urbanareas and 82% of the population in rural areas have access to water supply. However, despite itsachievements, Tunisia faces numerous environmental challenges. Its natural resource base continues to facesevere pressures in the context of a mainly top-down system of environmental governance, noticeable lackof environmental information and difficulties in setting priorities in the face of conflicting pressures fromdifferent sectors. As part of the implementation of the Bank environment strategy in the MENA region, theGovernment of Tunisia has requested the World Bank’s support for the preparation of a country environmentanalysis (CEA), focused on an evaluation of institutional capacity and performance. Objective: The Tunisia CEA has two main objectives: (i) facilitate mainstreaming of environmental issues into relevant sector activities for improving

development and poverty alleviation and (ii) to improve the capacity strengthening process of environmental mainstreaming. Contents: The major components of the Tunisia CEA include the analysis of key environmental management issuesbased on taking stock of forecasted trends and risks, assessing causes of environmental degradation, andassessing impact on health and quality of life. Further, a comprehensive assessment of Tunisia’s environmental management capacity will be undertaken.This will involve assessment of prioritization, planning and decision making processes, mechanisms ofallocation of resources, monitoring and enforcement system including environment assessment system, andthe role of the private sector in providing environmental services. Finally, a set of strategic directions andpriority actions for environmental mainstreaming will be determined. This will include identification ofindicators of performance, identification of appropriate mainstreaming tools and priority actions for Banksupport to meet Tunisia’s MDG#7 target. Status: Ongoing Implementation Partners: The study is being conducted through collaboration between the World Bank and the Observatoire Tunisiende l’ Environnement et du Developpement durable (OTEDD, a department of ANPE. A steering committeecomposed of representatives of line ministries has been established to oversee the progress and result of thestudy. OTEDD has also requested assistance from three national consultants for the preparation of the CEA. Task Team Leader: Sherif Arif (MNSRE) Aziz Bouzaher (AFTES) [email protected] [email protected]

CEA Pilots At-A-Glance