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INTEGRATED SAFEGUARDS DATA SHEET RESTRUCTURING STAGE Note: This ISDS will be considered effective only upon approval of the project restructuring Report No.: ISDSR15941 Date ISDS Prepared/Updated: 16-Nov-2015 o Date ISDS Approved/Disclosed: 18-Feb-2014 I. BASIC INFORMATION 1. Basic Project Data Country: Maldives Project ID: P108078 Project Name: Maldives Environmental Management Project (P108078) Task Team Darshani De Silva Leader(s): Estimated 10-Mar-2008 Estimated 10-Jun-2008 Appraisal Date: Board Date: Managing Unit: GEN06 Lending Specific Investment Loan Instrument: Sector: Solid waste management (50%), Central government administration (50%) Theme: Environmental policies and institutions (33%), Pollution management and environmental health (3 3%), Biodiversity (17%), Climate chan ge (17%) Is this project processed under OP 8.50 (Emergency Recovery) or OP 8.00 (Rapid Response to Crises and No Emergencies)? Financing (in USD Million) Total Project Cost: 13.88 Total Bank Financing: 13.15 Financing Gap: 0.00 Financing Source Amount BORROWER/RECIPIENT 0.73 International Development Association (IDA) 13.15 Total 13.88 Environmental A - Full Assessment Category: Is this a No Repeater project? 2. Current Project Development Objectives The main aim of the Project is to provide the Republic of Maldives with the capacity to effectively manage environmental risks and threats to fragile coral reefs as well as marine habitats resulting from tourism development, increased solid waste disposal, fisheries and global climate change. Page 1 of 14 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized

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INTEGRATED SAFEGUARDS DATA SHEETRESTRUCTURING STAGE

Note: This ISDS will be considered effective only upon approval of the project restructuring

Report No.: ISDSR15941

Date ISDS Prepared/Updated: 16-Nov-2015o

Date ISDS Approved/Disclosed: 18-Feb-2014

I. BASIC INFORMATION

1. Basic Project Data

Country: Maldives Project ID: P108078

Project Name: Maldives Environmental Management Project (P108078)Task Team Darshani De SilvaLeader(s):

Estimated 10-Mar-2008 Estimated 10-Jun-2008Appraisal Date: Board Date:

Managing Unit: GEN06 Lending Specific Investment LoanInstrument:

Sector: Solid waste management (50%), Central government administration (50%)

Theme: Environmental policies and institutions (33%), Pollution management andenvironmental health (3 3%), Biodiversity (17%), Climate chan ge (17%)

Is this project processed under OP 8.50 (EmergencyRecovery) or OP 8.00 (Rapid Response to Crises and NoEmergencies)?

Financing (in USD Million)

Total Project Cost: 13.88 Total Bank Financing: 13.15

Financing Gap: 0.00

Financing Source Amount

BORROWER/RECIPIENT 0.73

International Development Association (IDA) 13.15

Total 13.88

Environmental A - Full AssessmentCategory:

Is this a NoRepeaterproject?

2. Current Project Development Objectives

The main aim of the Project is to provide the Republic of Maldives with the capacity to effectivelymanage environmental risks and threats to fragile coral reefs as well as marine habitats resultingfrom tourism development, increased solid waste disposal, fisheries and global climate change.

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Accordingly, this Project has two development objectives. The first Project Development Objectiveis that a solid waste management system is established and that inhabitants on targeted islands usesolid waste management facilities, reducing the risks of contamination associated with accumulatedwastes and sea dumping. The second Project Development Objective is to build human and technical

U capacity for environmental management so that the environmental dimension is integrated in theplanning process using information and expertise developed in the Project.

3. Project Description

a The project seeks to provide the Republic of Maldives with the capacity to effectively manageenvironmental risks and threats to fragile coral reefs as well as marine habitats resulting from tourismdevelopment, increased solid waste disposal, fisheries and global climate change. Accordingly, thisproject has two development objectives. The first Project Development Objective (PDO) is that asolid waste management system is established and that inhabitants on targeted islands use solid wastemanagement facilities, reducing the risks of contamination associated with accumulated wastes andsea dumping. The second PDO is to build human and technical capacity for environmentalmanagement so that the environmental dimension is integrated in the planning process usinginformation and expertise developed in the Project. The PDOs are not revised as part of therestructuring.

The project has four components: (1) a regional solid waste management program for the NorthCentral Region; (2) capacity building for environmental management; (3) technical assistance forstrengthened environmental management and monitoring; and (4) project management andcommunications.

Component 1: Regional Solid Waste Management Program

Solid waste is the most visible environmental threat to the tourism and fishery industries. In a recentsurvey, solid waste was identified as the most important environmental issue by 24% of respondents.The management of solid waste is especially challenging in Maldives, even more so than other smallisland states. With a population spread across numerous islands, there is little scope for harnessingeconomies of scale. Thus, the costs of service delivery are high. Because of restricted landendowments, the space available for waste disposal is limited, calling for the waste stream to beminimized through such means as recycling and composting. The country's fragile marine

ecosystem requires that special attention be given to the choice of technology and system design tomitigate adverse impacts, particularly those that could damage the country's primary asset - itsrelatively unspoiled marine environment. This combination of risks and challenges is unique toMaldives and demands specifically tailored solutions to develop a sustainable solid wastemanagement (SWM) system with stringent criteria applied for site selection, engineering, technologychoice and management.

Taking account of the dispersed geography and fragile ecology, the program would operate atmultiple levels. First, the construction of Island Waste Management Centers (IWMCs) will providefacilities for island communities to reduce the volume of waste requiring final disposal by sorting,recycling, and composting. The residual waste will be temporarily stored in a safe andenvironmentally responsible manner at the IWMC. Second, a Regional Waste Management Facility(RWMF) will be built on an uninhabited island or one with compatible land use (e.g. an industrialisland) that will serve as the destination for residual waste from the IWMCs and participating resorts.Community consultations, communication and involvement are key components of thissubcomponent and are essential to the successful operation of IWMCs. Third, all these will be

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supported by allied services such as community programs, waste transfer and transportation facilities,technical assistance and financial systems, all of which will be subject to government regulation andguided by stringent environmental criteria. The facilities will be designed and built to the highestappropriate standards to reduce the risk of contamination from solid wastes. Special attention will be

Opaid to medical wastes that will require special handling and management.

The project will support a regional solid waste management (RSWM) program in the North CentralRegion, which is currently under-served by waste management facilities. It is the most significantcomponent, i.e., amounting to over 50% of total project costs. The "catchment" or group of atollsand islands to be served was defined during project implementation on the basis of a comprehensivefeasibility study. The factors that influenced the choice of catchment depended on multipleintersecting criteria: economies of scale, population distribution, geography, environmental factorsand the location of (current and planned) resort developments. Community consultations andassessments of community needs and communication were carried out. Once the catchment wasdefined, a detailed assessment of current and future needs, technology choices for waste managementand a thorough environmental and social impact assessment were conducted. Alternate sites andtechnologies were weighed vis-a-vis cost and sustainability. Recognizing the significance of thecountry's natural capital and reputation as an unspoiled tourist destination, environmental factorswere given high priority over economic considerations in determining both the location and design ofthe system.

Component 2: Capacity Building for Environmental Management

The environmental agencies and regulators in Maldives have a broad mandate, but their capacity tomanage growing environmental pressures does not match the needs of a fragile environment onwhich the economy depends. At appraisal stage, the environment section of the Ministry ofEnvironment, Energy and Water (MEEW) - reconstituted into the current Ministry of Environmentand Water (MEE) - had professional staff of about 35, of whom only 5 had post-secondary degreesor the equivalent. The Environmental Protection Agency (EPA) had 32 staff of which 5 hadundergraduate degrees and only 1 had a post-graduate degree. The Marine Research Center (MRC),with 55 staff, only had 5 with tertiary qualifications of which 4 have pursued post-graduate studies.The agencies were both understaffed and under-skilled.

o The project was designed to partly fill - at least - the staffing gaps and capacity needs as they relateto the project itself. It was apparent that it would be nearly impossible to build a large, permanentcadre of environmental specialists with a reach extending over the entire archipelago and across allsectors. Priority was therefore given to developing a core of competent generalists and specialists inMEE, other relevant ministries and agencies (Planning, Fisheries, Tourism, and Construction) and inthe private sector (particularly NGOs and the tourism sector) to guide the environmental assessmentand decision-making process. The emphasis was on training existing government staff and others forwhom there was a reasonable expectation that their skills could be utilized in the near or mediumterm.

Project support is aimed at human resource development programs integrated with action programsalready prioritized by the government. Training is oriented primarily around these objectives andlinked as much as possible with action programs both in the public and private sectors. Trainingconsists of a combination of: (i) in-country formal training; (ii) informal in-service training withspecialist trainers brought to help develop human resources; and (iii) specialization with graduate orpost-graduate courses abroad financed through a stream of funding for overseas training and

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education; and (iv) internship programs in environmental management and coastal/marine resourcesmanagement. A certification program was designed and is under implementation. The existence of acadre of experts will be verified by the number of people attaining certification.

OComponent 3: Technical Assistance for Strengthened Environmental Management and Monitoring

Sparse information and the absence of baseline data remain one of the key impediments to improvedenvironmental management in Maldives. The evidence on the magnitude and causes of these

problems encourages the adoption of policies to arrest or reverse degradation of the key naturalassets. This component aims to expand the knowledge base regarding critical natural resources onwhich the ecosystem and economy depend. Recognizing that there are insufficient resources in theproject envelope to fill all the information gaps, this component selectively targets issues andinformation gaps where assistance is most urgently needed and promotes activities designed tostimulate discussions and policy deliberations that would lead to greater community awareness andbetter decision making.

Among the many environmental problems that affect Maldives, communities identify coastal erosionas a significant threat to their assets and existence. Some estimates suggest that over 80% ofinhabited islands are threatened with erosion and this problem is expected to intensify with climatechange. Yet there is little information on the magnitude of the problem, or understanding of thecomplex processes of accretion and erosion and their links to wave dynamics, terrestrial ecosystems(mangroves) and coral reef health. A major focus of this component is on addressing the issue ofbuilding climate resilience by improved management and stewardship of the country's coastalresources (marine and terrestrial).

A second major concern highlighted by communities on some islands is the productivity of the tunafishery, which is the second largest export industry and the primary source of livelihoods on manyislands. Tuna harvests depend on, among other things, the availability of adequate bait which issourced from the coral reefs. Anecdotal reports from the industry suggest that (deep sea) tuna stocksare probably not in observable decline, but the bait fish catch (per unit "effort") has been decreasingrapidly in several atolls. There is evidence that coral reef health and recovery are linked to fishdiversity. The component involves studies on the status of the bait fishery, the interactions betweencoral recovery (health) and fish stocks and the development of a bait fishery management plan.

The project supports monitoring by professional scientists that in some instances would entailsupport by the communities as an effective way of creating awareness and also collecting basic datain a systematic fashion from a large number of sites.

Component 4: Project Management and Communications

The Project Management Unit (PMU) - with the number and qualifications described in theOperations Manual (OM) - is managing the project in accordance with the guidelines set forth in theOM. The PMU has the following functions: overall project management, component management,liaison with other agencies and programs, financial management, procurement, monitoring andevaluation and project communications. The project's communication sub-component includes acommunication campaign aimed at developing environmental awareness, action, and advocacy.

Project restructuring for no cost extension to the Additional Financing.

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The project was provided with additional financing which became effective on July 7, 2015 to fundcost overruns outside of the Government's control in order to pave the way for the achievement of thePDO related to the waste management program. This additional IDA grant is financing: (i) theremaining civil works and operational support for the IWMCs; (ii) the remaining activities to

OU complete the RWMF infrastructure; (iii) the construction of the foundation pad for the incinerator;

(iv) the purchase of essential equipment for the RWMF and IWMCs; (v) the provision of operational

support, including international TA to the Fenaka Corporation - the designated entity for themanagement and operation of the RSWM system; (vi) the acquisition of a second waste transfervessel; and (vii) minor RSWM related costs. To allow for the completion of activities related to theintegrated regional solid waste management (RSWM) system, the Government recently requested anextension to the closing date from December 31, 2015 to June 30, 2016.

4. Project location and salient physical characteristics relevant to the safeguardanalysis (if known)

Maldives is an island nation in the Indian Ocean formed by a double chain of twenty-six atollsoriented north-south off India's Lakshadweep Islands. The country's atolls encompass a territoryspread over roughly 90,000 square kilometers, making it one of the world's most geographicallydispersed countries. Its population of 328,536 (2012) inhabits 200 of its 1,192 islands. The averageground level is 1.5 meters above sea level.

The atolls are composed of live coral reefs and sand bars, situated atop a submarine ridge 960kilometers long that rises abruptly from the depths of the Indian Ocean. The reefs are composed ofcoral debris and living coral. This acts as a natural barrier against the sea, forming lagoons. Otherislands set at a distance and parallel to the reef have their own protective fringe of reef.

The islands are made of 15 cm thick layer of humus forms the top layer of soil. Below the humuslayer are 60 cm of sandstone, followed by sand and then fresh water. Due to high levels of salt in thesoil near the beach, vegetation is limited to a few plants such as shrubs, flowering plants, and smallhedges. In the interior of the islands, more vegetation such as mangrove and banyan grow. Coconutpalms, the national tree, are able to grow almost everywhere on the islands and are integral to thelifestyle of the population. The ground water of almost all inhabitant islands is polluted and thecurrent supply of potable water is from rainwater harvesting and/or desalination of sea water.

The temperature ranges between 24 'C and 33 'C throughout the year. Although the humidity isrelatively high, the constant cool sea breezes keep the air moving and the heat mitigated. Theweather is affected by the large landmass of South Asia to the north. The presence of this landmasscauses differential heating of land and water. These factors set off a rush of moisture-rich air fromthe Indian Ocean over South Asia, resulting in the southwest monsoon. Two seasons dominate theweather: the dry season associated with the winter northeastern monsoon and the rainy season whichbrings strong winds and storms. The shift from the moist southwest monsoon to the dry northeastmonsoon occurs during April and May. During this period, the northeast winds contribute to theformation of the northeast monsoon which reaches Maldives in the beginning of June and lasts untilthe end of August. However, the weather patterns do not always conform to the monsoon patterns ofSouth Asia. The annual rainfall averages 254 cm in the north and 381 cm in the south.

The project's RSWM component is focused on the Northern Central Region. The RWMF is locatedon the eastern end of the uninhabited island of Vandhoo identified for economic activities which islocated in Raa Atoll (Maalhosmadulu). The island has a total area of 0.38km2. A land area of0.15km2 is set aside to build the RWMF and necessary supporting infrastructure. One half of that

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area (or 0.0764km2) required for the site must be cleared of vegetation. Based on the findings of theESIA, the majority of biodiversity in Vandhoo are nationally common and not protected. They arenot threatened globally. Some parts of the island even provide refuge to breeding hawksbill turtles.

5. Environmental and Social Safeguards SpecialistsQ

Mokshana Nerandika Wijeyeratne (GENDR)

Susrutha Pradeep Goonesekera (GSURR)

6. Safeguard Policies Triggered? Explanation (Optional)Environmental Yes This policy remains triggered to ensure that the impactsAssessment OP/BP 4.01 related to the regional solid waste management program

are mitigated through the agreed actions under the ESMFand other site-specific environmental and socialinstruments.

Natural Habitats OP/BP Yes This policy remains triggered because all of the country's4.04 islands are surrounded by coral reefs which are significant

natural habitats. Also, with this policy, negative impactson the island vegetation especially at the RWMF arereduced. The site-specific environmental instruments(IEEs, EIAs and EMPs) include adequate measures toreduce the impacts to the coral reefs, island vegetationand associated fauna and flora.

Forests OP/BP 4.36 No There are no areas classified as forests in Maldives. Anypotential impacts on island vegetation are covered throughOP/BP 4.04.

Pest Management OP 4.09 No It is possible that some activities may create mosquitobreeding sites due to unmanaged waste.The risk is mitigated by the establishment of the RSWM

system with island based and regional disposal facilities.Under the recently concluded solid waste managementpilot project administered by the Bank and funded underthe Maldives Climate Change Trust Fund, it wasconfirmed that Maldives does not face the problems ofother types of pests (e. g. rodents) at waste sites. Thus, thepolicy is not triggered. However, as part of the monitoringof the site during operations, possible movement of pestswill be also monitored and recorded for potentialinvasions.

Physical Cultural No There are no PCRs at the project sites. Hence the policy isResources OP/BP 4.11 not triggered.

Indigenous Peoples OP/ No There are no indigenous peoples in Maldives.BP 4.10

Involuntary Resettlement No IWMCs are built for the purpose of waste managementOP/BP 4.12 only and they are always located away from human

habitation. Because the state provides housing for all, thecountry does not have squatter issues. The RWMF was

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established in an uninhabited island. In addition, theproject activities have not caused and will not give rise toany impacts to island community assets. Hence, thispolicy is not applicable.

Safety of Dams OP/BP No The country does not have dams and the project does not4.37 support water retention structures so this policy does not

apply.

Projects on International No The project activities are implemented on land. TheWaterways OP/BP 7.50 construction of the landing site for the RWMF does not

have any impact on international waters.Therefore, this policy is not applicable.

Projects in Disputed No The policy is not applicable because there are no disputedAreas OP/BP 7.60 areas in Maldives.

II. Key Safeguard Policy Issues and Their Management

A. Summary of Key Safeguard Issues

1. Describe any safeguard issues and impacts associated with the Restructured project.Identify and describe any potential large scale, significant and/or irreversible impacts:

Project restructuring would not result in any changes to the environmental assessment category orthe original polices trigged, as the restructuring will only entail no-cost extension to the projectimplementation period from December 31, 2015 to June 30, 2016.

The project was classified as safeguards category "A". As envisaged at appraisal in 2008, thecurrent project status confirms that the RSWM component involves community-based wasterecycling and resource recovery facilities at the IWMCs, composting of the organic fraction of thewaste and establishment of a RWMF for the disposal of residual municipal solid and medicalwaste.

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Island waste management centers (IWMCs): The construction and operation of IWMCs, if notwell designed and operated, could result in significant adverse environmental impacts. SomeIWMCs are existing facilities which require expansion/renovation and improvement in handlingthe waste coming to the site. Based on the lessons learned from existing IWMCs, communityparticipation was identified to be essential for the effective operation and long-term sustainabilityof the IWMCs. Community consultations and their involvement in the selection of recycling andresource recovery activities at the IWMCs were undertaken. Consequently, the specific activitiesto be undertaken at the IWMCs were decided by the relevant communities. Initial environmentalexaminations (IEEs) and environmental impact assessments (EIAs) were conducted for theIWMCs and environmental and social management plans (ESMPs) were prepared forimplementation. The assessments identified that, in many islands, there is no organized solidwaste collection system in place. Hence, some inahbitants tend to throw their waste to theforeshore or coastal areas. There is no proper treatment of waste done in the IWMCs and openburning of waste takes place due to absence of proper disposal methods. When the IWMCsbecome congested, some islands try to transfer the waste to Thilafushi (the waste and industrialisland close to Male) bury the waste in the island to provide space for new incoming waste to thesites or allow spillage into the lagoon, reef or sea.

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The IEEs and EIAs of project-supported IWMCs indicate that the process proposed (compostingof the organic waste, recycling and recovery of the residue to be moved) for upgrading andoperating the IWMCs will not generate significant and/or irreversible adverse environmentalimpacts. Community-level waste recycling and resource recovery as well as composting of the

Oorganic portion of the waste will avoid/minimize the highly unsanitary open burning and ad hocdumping of wastes on the shorelines of the inhabited islands which are environmentally damagingand especially destructive to coral reefs. Growing quantities of plastics and lubricants in the wastestream often end up contaminating the sensitive reefs. As an IWMC becomes operational,recyclable material is planned to be separated and stored in the IWMC for transport to the RWMFfor subsequent sale and medical waste will be stored securely for transport and disposal at theRWMF. The largest component in the waste stream is the organicportion which will becomposted at the household level or at the IWMC. A model organic waste composting facilitysupported under the Ari Atoll Solid Waste Management Project supported by the World Bankwhich is currently operational and it is used for training IWMC staff and island communities. Theresidue to be sent to the RWMF will be non-recyclable and non- degradable waste which will betransported to the RWMF on a periodic basis to preclude any significant waste accumulation in theIWMCsand spillage into the ocean.

Regional Waste Management Facility: The site selection and the identification of the technologyfor the RWMF were carried out through a vigorous and consultative process by using the bestpracticable environmental option (BPEO) methodology to reduce the environmental and socialimpacts of the RWMF to the extent possible within the country context while ensuring technicaland economical soundness. Specifically, the island was selected based on the following criteria:* Island is on a known navigable inter/intra Atoll maritime transport route;* Island is near/ accessible to a population centre (Urban Area);* Island has a defined land mass and a large internal lagoon area;* Island has no obvious significant residential settlement (approved or unapproved);* Island where other land use is compatible with solid waste management activities (agriculturalislands may be considered at this time);* Island is not designated for a future land use which may be incompatible with solid wastemanagement activities (islands on a reef system des ignated for a future resort, or an islanddesignated for future population relocation should not be considered but islands that are designatedfor industrial activity may be consider);* Island is not protected, or designated as an environmentally significant/sensitive site (terrestrial);and* Island should not be part of or adjacent to a protected Reef system or designated as anenvironmentally significant/ sensitive site (marine).

Based on the BPEO process, Vandhoo island was identified as the most suitable site for theproposed RWMF. An environmental and social impact assessment (ESIA) for Vandhoo, includingthe RWMF site was conducted in accordance with OP/BP 4.01 to identify and mitigate potentialadverse environmental impacts. The ESIA identified potential impacts and specified themitigation and enhancement measures to be put in place during the construction of the RWMF andits operationalization.

Vandhoo is an uninhabited island identified for economic activities by the Government ofMaldives. This island has been intermittently used by the communities in the nearby islands forrecreation and agriculture activities. This was supported by the evidence collected by ESIA whereit was observed that significant continuous disturbance to the to the coral reef around the past boat

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access sited used by people, remnants of fire wood cooking, and disturbed nature of the land withagricultural perennial plants and sparse secondary growth undergrowth.

The assessment indicated that the island flora was typical for Maldivian poor soil and secondaryO

and dis-climax vegetation. Beach and rocky coast vegetation found to be lacking significance inspecies variety and common in Maldives. Tropical climate forest plant species are absent. Out ofthe 19 plants species on the island six were found to be invasive, only one identified as native andthe rest with no national or global information. The designated area to be opened for the RWMF(approximately 1/3 of the island land mass) consists of an unkempt coconut grove in disuse withsparse ground vegetation. The ground vegetation consists of Ocrosia oppositifolia with no recordof its status both locally, nationally or globally. Additionally, there is also a small (less than 0.5mhigh) immature mangrove plants of the species Bruguira cylindrica outside the land area identifiedfor the RWMF which was proposed to be demarcated and protected together with the existingvegetation of about 0.75km2 of land around the facility recognizing the ecosystem service that itcan produce through protection. Fauna associated with terrestrial vegetation was found to becommon to Maldives and not globally threatened.

Some parts of the beach were found to be nesting sites for hawksbill turtles (Eretmochelysimbricata) which are common to Maldives but are considered globally to be critically endangered.While the RWMF will not directly impact the turtle nesting sites (as there are possibilities ofindirect impacts), the ESIA identified the need to introduce necessary measures to reduce thedisturbances and protect such sites. Based on the data collected on the likely sites used by theturtles for nesting, it was proposed that those beach areas will be demarcated and put underprotection with the agreement of the Ministry of Fisheries and Agriculture who has the mandate toprotect turtles in the Maldives. A comprehensive turtle management plan has been prepared as partof the environmental and social management plan of the ESIA.

The coral reef biodiversity was found to be common to Maldives with no site endemics andglobally significant species. The proposed landing site which is the same site used by islandcommunities to access the island was found to be highly disturbed with low level of regenerationdue to continuous disturbances in the past. The permanent loss of more than 3000 m2 (0.3 ha) ofcoral reef on the north side of the island due to the necessary dredging for an access channel whichgoes over the already disturbed site for waste-carrying boats to enter the Vandhoo lagoon werefound to be unavoidable. Compensation is proposed as a mitigation measure where at least onethird of the reefs surrounding the entire island are set aside as a protected area or no-take fisheryzone to compensate for the dredged reef. The protected area also will help re-establish some of thepredatory fishes eliminated from Vandhoo and many of the other islands due to ongoing fishingactivities.

The only cultural/archaeological site on Vandhoo is a decomposed grave site, which was foundjust outside the proposed RWMF site. According to the local communities and the NationalArchives, the site is not considered to have any important cultural or archaeological significance.However, it was proposed that the grave site is protected by clearing the overgrowth and markingthe site.

Air pollution from waste incineration activities could increase ambient levels of greenhouse gasesand heavy metals unless the chimney and the equipment used to remove these pollutants areproperly designed. However, the net effect due to the waste management option selected,including the operations of the regional facility, when compared to current practices in the

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inhabited and resort islands will be much lower. For the proposed incineration systems, wastequantities and qualities, emissions are found to be within the acceptable World HealthOrganization (WHO) and IFC-World Bank standards for all the compounds involved in this study(N02, S02, TSP, PM10 and dioxins/furans), if the smokestack is kept at a height of 22.5 m with a

Ogood pollutant removal equipment included in the incinerator design. The ESIA proposed theinclusion of the latter to the design. By doing so, the impact on the closest inhabited island will belower than the WHO standards for all parameters and for dioxins/furans i.e., below the thresholdsestablished by international guidelines.

Current status and safeguard performance.

While construction of the RWMF facility and the IWMCs has been largely completed as ofNovember 1, 2015, the time available to operationalize the facilities and the RWMS will requiremore time than that was anticipated due to challenges with procuring international expertise tofacilitate the operationalization process of the RWMF. Since the Maldives has no prior experiencein operation such a system, ideally the operational support of the service provider in order to testthe system and transfer knowledge and experience will require a period of at least six months. Nonew activities are anticipated during the project extensions period, except completion of allactivities and ensuring full operationalization of RSWM system in North Central Region.

Project was downgraded during the last implementation review and support mission in August2015 from satisfactory to moderately satisfactory as there was likelihood that the project will notbe able to fully operationalize the RWMF and some of the IWMCs by December 31, 2015 and fordelayed in operationalizing few of the IWMCs where construction have completed by mid 2015.However, the project was performing satisfactorily in construction-stage activities in RFMF as perthe ESIA and IWMCs as per the ESMPs at the time of the last review and those IWMCs that wasnot operating have commenced operations satisfactorily as of now.

2. Describe any potential indirect and/or long term impacts due to anticipated future activitiesin the project area:

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Since the project would result in an effective solid waste management system for the atolls in theNorth Central Region, the long-term impacts of this intervention would be environmentallybeneficial. The Government awarded leases for several new resorts in that region and theimproved RSWM system would reduce sea dumping of waste and contamination of reefecosystems, the main tourist attraction of the country. Reef monitoring and other environmentalmonitoring programs supported under this project are guiding the land use planning process tohelp ensure better management of the environment and natural resources in Maldives. Aspreviously mentioned, the site selection and identification of the technology for the RWMF werecarried out through the BPEO method to reduce environmental and social impacts of the RWMFto the extent possible under the country context.

3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverseimpacts.

The following alternatives were considered under the BPEO exercise. The results of the BPEOled to the selection of eight different options:

Processing at RWMF:* Al: Collection and transportation of waste from islands and land filling with gas managementsystem* A2: Collection and transportation of waste from islands, composting of organic waste and land

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filling of compost rejects* A3: Collection and transportation of waste from islands, incineration of waste and disposal ofrejects in landfill/land reclamationProcessing at island level

O* A4: Composting of organic waste at the island, transportation of rejects to RWMF for landfill* A5: Composting of organic waste at the island, incineration of balance waste with waste to

energy (WTE) and land filling of rejects at RWMF* A6: Composting of organic waste at the island level, incineration of remaining waste with WTE,and land reclamation from rejects at RWMF* A7: Composting of organic waste at the island level, simple incineration of remaining waste andland filling of rejects at RWMF* A8: Composting of organic waste at the island level, simple incineration of remaining waste andland reclamation with rejects at RWMF

A7 was identified as the best option.

The final choice for the incineration technology to be employed has not yet been selected, andseveral different alternatives are being discussed. The assessment of the air emission impactssuggests that a system with a good air pollution control system should be included in theincinerator design. The system should include electrostatic precipitators (ESP) and multiplescrubbers, spray-dryer and baghouse or similar combinations. In combination with a 22.5 m highstack, this should result in emissions found to be acceptable for all the compounds involved in thisstudy (N02, S02, TSP, PM1O and dioxins/furans).

The choice of Vandhoo was made after a long screening process. Given its central location vis-d-vis other islands in that particular region and its proximity to an island dedicated for shipbuildingyards, Vandhoo was recommended as the best option. The ESIA also found that Vandhoo to bethe most suitable for RWMF construction. The island is large enough to accommodate both wastemanagement and boat construction while two thirds of the island (with somewhat nutrient-richsoils, for vegetation and wildlife) is left untouched. Boat building is a specialty of Raa Atoll (wellknown for its carpenters) and the construction of fiberglass vessels is presently carried out innearby islands. The islanders of Innamaadhoo, In'guraidhoo and Rasmaadhoo expressed theirinterest to use Vandhoo for boat building and preliminary slipway initiatives were undertaken

a (slipway was given on a concession basis to a private contractor). The island of Alifushi is too farto the north to benefit from boat building.

4. Describe measures taken by the borrower to address safeguard policy issues. Provide anassessment of borrower capacity to plan and implement the measures described.

The location of the RWMF, catchment area, participating islands and technology for the RWMFwere not determined during project preparation because of the need for thorough investigation,detailed assessments and studies. The environmental assessment could not be carried out duringproject preparation. Therefore, an Environmental and Social Assessment Framework wasprepared by the Government in lieu of a project-specific EA. It served as a template forundertaking project specific EAs once the works were identified. The framework is: (i)comprehensive; (ii) highly detailed; and (iii) contains precise time-bound action plans to assurecompliance. Following the identification of the technology and the selection of the IWMCs andRWMF, IEEs, EIAs, a social impact assessment for IWMCs and the ESIA for the RWMF wereundertaken to identify safeguard impacts and mitigation measures.

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Maldives has a reasonably sound track record of implementing the Environmental ImpactAssessment process. The technical capacity of the Environmental Protection Agency (EPA) isreasonably good. However, a decision was reached that, during project implementation phase,specifically when the IWMCs are operational and the RWMF is completed, a qualified consultant

Owill be recruited to help EPA undertake the regular monitoring of the system. In addition, EPAassumed the responsibility for monitoring the implementation of the clearance conditions of theenvironmental assessments associated with the project.

All safeguard instruments are currently being satisfactorily implemented.

5. Identify the key stakeholders and describe the mechanisms for consultation and disclosureon safeguard policies, with an emphasis on potentially affected people.

The main stakeholders for the regional solid waste management program are the islandcommunities in the North Central Atolls of Raa, Baa, Noonu and Lahviyani. The primary socialissues to be dealt are related to the strong need for community participation and ownership in theproject. Public participation in waste management issues is critical, especially in the lesspopulated islands where participation by the local population in the separation, collection,management and disposition of wastes is essential. Previous experience in Maldives indicates thatparticipation is crucial to the success of waste management in outlying islands with smallpopulations. This would depend not only on effective communication but also on getting theincentives right, which is a focus of this project. In addition, the resorts are key stakeholdersbecause they would benefit from improved solid waste management. Other stakeholders are theisland officials, atoll administrations and the Ministry of Environment and Energy (MEE).

The project is being implemented with a strong participatory approach. As part of the SocialImpact Assessment, extensive consultations were undertaken with communities of the 46 islandsin the North Central Region. Subsequently, as part of the BPEO, a number of consultations wereheld to identify the suitable technology and site for the RWMF. The ESIA entailed consultationswith stakeholders in islands close to Vandhoo and other stakeholders. The RWMF operator,Atolls Office, MEE and EPA are making reasonable efforts to consult relevant stakeholders in theimplementation of the RWMF activities during the construction and operational phases. Theconsultations have been carried out appropriately with consideration for cultural, gender based and

Oother differences among stakeholders.

The public consultation process is continuing, particularly in relation to developing island wastemanagement plans, identifying user fees for the waste management service at the island level andsiting and management of the IWMCs.

B. Disclosure Requirements

Environmental Assessment/Audit/Management Plan/Other

Date of receipt by the Bank 16-Dec-2008

Date of submission to InfoShop 20-Mar-2008

For category A projects, date of distributing the Executive 25-Feb-2008Summary of the EA to the Executive Directors

"In country" Disclosure

Maldives 17-Mar-2008

Comments: The ESIA prepared for the RWMF during the project implementation was disclosedon January 19, 2014

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If the project triggers the Pest Management and/or Physical Cultural Resources policies, therespective issues are to be addressed and disclosed as part of the Environmental Assessment/Audit/or EMP.

If in-country disclosure of any of the above documents is not expected, please explain why:

C. Compliance Monitoring Indicators at the Corporate Level

OP/BP/GP 4.01 - Environment Assessment

Does the project require a stand-alone EA (including EMP) Yes [ X] No [ ] NA [ ]report?

If yes, then did the Regional Environment Unit or Practice Yes [ X] No [ ] NA [ ]Manager (PM) review and approve the EA report?

Are the cost and the accountabilities for the EMP incorporated Yes [ X] No [ ] NA [ ]in the credit/loan?

OP/BP 4.04 - Natural Habitats

Would the project result in any significant conversion or Yes [ ] No [X] NA [ ]degradation of critical natural habitats?

If the project would result in significant conversion or Yes [ X] No [ ] NA [ ]degradation of other (non-critical) natural habitats, does theproject include mitigation measures acceptable to the Bank?

The World Bank Policy on Disclosure of Information

Have relevant safeguard policies documents been sent to the Yes [ X] No [ ] NA [ ]World Bank's Infoshop?

Have relevant documents been disclosed in-country in a public Yes [ X] No [ ] NA [ ]place in a form and language that are understandable andaccessible to project-affected groups and local NGOs?

All Safeguard Policies

Have satisfactory calendar, budget and clear institutional Yes [ X] No [ ] NA [ ]responsibilities been prepared for the implementation ofmeasures related to safeguard policies?

Have costs related to safeguard policy measures been included Yes [ X] No [ ] NA [ ]in the project cost?

Does the Monitoring and Evaluation system of the project Yes [ X] No [ ] NA [ ]include the monitoring of safeguard impacts and measuresrelated to safeguard policies?

Have satisfactory implementation arrangements been agreed Yes [X] No [ ] NA [ ]with the borrower and the same been adequately reflected inthe project legal documents?

III. APPROVALS

Task Team Leader(s): Name: Darshani De Silva

Approved By

Safeguards Advisor: Name: Zia Al Jalaly (SA) Date: 17-Nov-2015

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Practice Manager/ Name: Abdelaziz Lagnaoui (PMGR) Date: 17-Nov-2015Manager:

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