Document of

The World Bank

FOR OFFICIAL USE ONLY

Report No: -MNA

Technical ANNEX 2

ON A

PROPOSED grant FROM THE

GLOBAL ENVIRONMENT FACILITY TRUST FUND

IN THE AMOUNT OF us$4.0 Million

TO THE KINGDOM OF MOROCCO

IN SUPPORT OF THE FIRST PHASE OF

The US$21.7 MILLION Africa stockpileS programme – Project 1

October 4, 2006

Africa Stockpile Programme Team

Africa Region

Middle East and North Africa Region

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

CURRENCY EQUIVALENTS

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

FISCAL YEAR

January 1 - December 31

ABBREVIATIONS AND ACRONYMS

AFR Africa Region

APL Adaptable Program Loan

ASP Africa Stockpiles Programme

ASP-P1 Africa Stockpiles Programme - Project 1

ASP-PCU Africa Stockpiles Programme - Project Coordination Unit

ASP-SC Africa Stockpiles Programme Steering Committee

CAS Country Assistance Strategy

CCAME Cross-Cutting Activities Management Entity

CESA Country Project-specific Environment and Social Assessment

CFAA Country Financial Accountability Assessment

CIDA Canadian International Development Agency

CILSS Comité Permanent Inter-Etat de Lutte contre la Sécheresse (Permanent Inter State Committee for Drought Control)

CLI Crop Life International

CPD Crop Protection Department

DANIDA Danish International Development Agency

DDT Dichloro-Diphenyl-Trichloroethane

DGF Development Grant Facility

DGIS Directorate General for International Cooperation

DPVCTRF Direction de la Protection des Végétaux, des Contrôles Techniques et de la Répression des Fraudes (Government of the Kingdom of Morocco – Department of Plant Protection, Technical Control and Fraud Repression)

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

EA Environmental Assessment

EMP Environmental Management Plan

EPA Environmental Protection Agency

EU European Union

FAAO Financial and Administrative Assistant Officer

FAO Food and Agriculture Organization

FFEM French Facility for Global Environment

FM Financial Management

FMR Financial Management Report

FMS Financial Management Specialist

GAAP Generally Accepted Accounting Principles

GEF Global Environment Facility

GEFSEC Secretariat of the Global Environment Facility

GEO Global Environmental Objective

GTZ Gesellschaft für Technische Zusammenarbeit (German Aid Agency)

ICB International Competitive Bidding

IDA International Development Agency

IOMC Inter-Organization Programme for the Sound Management of Chemicals

IPCS International Programme on Chemical Safety

IPM Integrated Pest Management

ISDS Integrated Safeguards Data Sheet

IVM Integrated Vector Management

MADRPM Ministère de l’Agriculture, du Développement Rural et des Pêches Maritimes (Ministry of Agriculture, Rural Development and Fisheries)

MATEE Ministère de l’Aménagement du Territoire, de l’Eau et de l’Environnement (Moroccan Ministry of Land Management, Water and Environment)

MDTF Multi-Donor Trust Fund

MFMTA Municipal Financial Management Technical Assistance Project

MNA Middle East and North Africa Region

MNSRE Water, Environment, Social and Rural Development Department

MOE Ministry of Environment

M&E Monitoring and Evaluation

NEPAD New Partnership for Africa’s Development

NGOs Non-Governmental Organizations

NIP National Implementation Plan

OECD Organization for Economic Cooperation and Development

OED Operations Evaluation Department

OM Operational Manual

OP Operational Program

PAD Project Appraisal Document

PAN-Africa Pesticides Action Network - Africa

PAN-UK Pesticides Action Network - United Kingdom

PDO Project Development Objective

PIC Prior Informed Consent

PMP Pest Management Plan

PMU Project Management Unit

POPs Persistent Organic Pollutants

RAP Resettlement Action Plan

SA Special Account

SBC Secretariat of the Basel Convention

SC Steering Committee

SOE Statements of Expenditure

STAP Scientific and Technical Advisory Panel

TA Technical Assistance

TF Trust Fund

TORs Terms of References

TSU Technical Support Unit

TTL Task Team Leader

UN United Nations

UNDB United Nations Development Business

UNEP United Nations Environment Programme

UNIDO United Nations Industrial Development Organization

USAID United States Agency for International Development

WHO World Health Organization

WWF World Wildlife Fund

Vice Presidents: / Daniela Gressani (MNA)
Gobind T. Nankani (AFR)
Country Director: / Theodore O. Ahlers (MNA)
Sector Director: / Inger Andersen (MNA)
Michel Wormser (AFTSD)
Sector Manager: / Vijay Jagannathan (MNA)
Task Team Leaders: / Peter Kristensen (AFTS4)/Denis Jordy (AFTS4)


AFRICA REGION

MIDDLE EAST AND NORTH AFRICA REGION

AFRICA STOCKPILES PROGRAMME – PROJECT 1

KINGDOM OF MOROCCO

Contents

Page

A. STRATEGIC CONTEXT AND RATIONALE 1

1. Country and Sector Issues 1

2. Rationale for Bank Involvement 2

3. Higher Level Objectives to Which the Project Contributes 3

B. PROJECT DESCRIPTION 4

1. Financing Instrument 4

2. Project Development Objective and Key Indicators 4

3. Project Components 6

4. Lessons Learned and Reflected in the Project Design 8

5. Alternatives Considered and Reasons for Rejection 10

C. IMPLEMENTATION 10

1. Institutional and Implementation Arrangements 10

2. Financing Partners 12

3. Monitoring and Evaluation of Outcomes/Results 12

4. Sustainability and Replicability 13

5. Critical Risks and Possible Controversial Aspects 13

6. Loan/Credit Conditions and Covenants 16

7. Conditions for Disbursement for Disposal 16

D. APPRAISAL SUMMARY 17

1. Economic and Financial Analyses 17

2. Technical 17

3. Fiduciary 18

4. Social 19

5. Environment 19

6. Safeguard Policies 20

7. Policy Exceptions and Readiness 21

ANNEXES 22

Annex 1: Africa Stockpiles Programme Background 22

Annex 2: Major Related Projects Financed by the Bank and/or Other Agencies 27

Annex 3: Results Framework and Monitoring 31

Annex 4: Detailed Project Description 37

Annex 5: Project Costs 44

Annex 6: Implementation Arrangements 45

Annex 7: Financial Management and Disbursement Arrangements 52

Annex 8: Procurement 57

Annex 9: Incremental Cost Analysis for Overall ASP-P1 66

Annex 10: Safeguard Policy Issues 77

Annex 11: Project Preparation and Supervision 80

Annex 12: Documents in the Project File 82

Annex 13: Statement of Loans and Credits 84

Annex 14: Country at a Glance 85

Maps IBRD 34040 and 33113R 87


AFRICA STOCKPILES PROGRAMME - PROJECT 1 – MOROCCO PROJECT

PROJECT APPRAISAL DOCUMENT

AFRICA REGION

MIDDLE EAST AND NORTH AFRICA

ASP TEAM

Date: October 4, 2006
Country Director: Theodore O. Ahlers (MNA),
Mark Tomlinson (CD16)
Sector Director: Inger Andersen (MNA),
Michel Wormser (AFTSD)
Sector Manager: Vijay Jagannathan (MNA),
Mary Barton-Dock (AFTS4)
Project ID: P103189
GEF Focal Area: Persistent Organic Pollutants (POPs) / Team Leaders: Peter Kristensen (AFTS4)
Denis Jordy (AFTS4)
Sector(s): Sanitation, Health, General Agriculture (100%)
Theme(s): Pollution Management, Environmental Policy
Environmental Screening Category: A
Project Financing Data:
[ ] Loan [ ] Credit [X] Grant [ ] Guarantee [ ] Other:
For Loans/Credits/Others:
Amount (US$m): 4.0
Financing Plan (US$m)
Source / Local / Foreign / Total
GEF (through the World Bank)
Recipient / 0.50
1.25 / 3.50
0.73 / 4.00
1.98
Total / 5.98
Recipient:
Kingdom of Morocco / Responsible Agency:
Ministère de l’Agriculture, du Développement Rural et des Pêches Maritimes
Direction de la Protection des Végétaux des Contrôles Techniques et de la Répression des Fraudes (DPVCTRF)
M. Abderrahmane Hilali - Directeur, DPVCTRF
Address: DPVCTRF
Rabat, Royaume du Maroc
Tel: (212) 37 23 14 Fax: (212) 37 29 75 44
Email:
Estimated Disbursements (Bank FY/US$m)
FY / 2007 / 2008 / 2009 / 2010 / Total
Annual / 1.4 / 0.8 / 1.5 / 0.3 / 4.0
Cumulative / 1.4 / 2.2 / 3.7 / 4.0
Project implementation period: 4 Years
Expected effectiveness date: February 12, 2007
Expected closing date: June 30, 2010
Does the project depart from the CAS in content or other significant respects? Ref. PAD A.3 / ○ Yes X No
Does the project require any exceptions from Bank policies?
Ref. PAD D.7
Have these been approved by Bank management?
Is approval for any policy exception sought from the Board? / ○ Yes X No
○ Yes X No
○ Yes X No
Does the project include any critical risks rated “substantial” or “high”?

Ref. PAD C.5

/ X Yes ○ No
Does the project meet the Regional criteria for readiness for implementation? Ref. PAD D.7 / X Yes ○ No
Global Environmental Objective (GEO): Ref. PAD B.2, Technical Annex 3
Reduction of the effects of Persistent Organic Pollutants (POPs) on the Global Environment.
Project development objective: Ref. PAD B.2, Technical Annex 3
ASP-P1: Selected African countries to eliminate inventoried publicly-held obsolete pesticide stockpiles and associated waste, and to implement measures to reduce and prevent future related risks.
Kingdom of Morocco: Assist the Kingdom of Morocco to eliminate inventoried publicly-held-obsolete pesticide stockpiles and associated waste, and implement measures to reduce and prevent future related risks.
Project description [one-sentence summary of each component] Ref. PAD B.3.a, Technical Annex 4
The proposed Project is part of the World Bank’s multi-country Africa Stockpiles Programme (ASP-P1), which has been approved by GEF on August 19, 2005 and by the World Bank Board on September 8, 2005.
The overall ASP-P1 includes:
(a)  country operations (ASP-P1 Component 1);
(b)  technical support to country projects (ASP-P1 Component 2);
(c)  cross-cutting activities in communication and knowledge management (ASP-P1 Component 3);
(d)  program coordination (ASP-P1 Component 4).
The Kingdom of Morocco project fits into Component 1 of the overall ASP-P1, and will support:
(a)  disposal of obsolete pesticides and associated waste;
(b)  prevention obsolete pesticides accumulation;
(c)  capacity building; and
(d)  project management and coordination.
Which safeguard policies are triggered, if any? Ref. PAD D.6, Technical Annex 10
Environmental Assessment (OP 4.1) and Pest Management (OP 4.09) apply to ASP-P1 which has been designated a Category “A” Project.
Significant, non-standard conditions, if any, for:
Ref. PAD C.7
Board presentation: None

Covenants applicable to project implementation:

Explicit release of Bank from liability for project activities in the event of accident or other event causing harm or injury.

Conditions for disbursement for disposal
(a)  Complete a Country Project-specific Environment and Social Assessment (CESA), including an Environmental Management Plan (EMP) to the satisfaction of the Bank.
Loan/credit effectiveness: None.

- 33 -

A.  STRATEGIC CONTEXT AND RATIONALE

1.  Country and Sector Issues

1.  Over the past forty years, many countries of the continent of Africa have accumulated large quantities of pesticides which have now become unfit for use or reformulation and are, therefore, obsolete. Although these chemicals are no longer effective for controlling pests, they remain potent chemical toxins and thus still need to be carefully stored and handled. The unwanted buildup of such products has occurred due to inadequate stock management, non-distribution to farmers, bans on several pesticides, un-coordinated or inappropriate supply from donor agencies, unsuitable packaging and supplier incentive programs. The amount of publicly-held-obsolete pesticides[1] currently stockpiled across the continent of Africa[2], is estimated at 50,000 tons. These stocks will continue to present a threat to the environment until they are safely removed and destroyed.

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

3.  The Africa Stockpiles Programme – Project 1 (ASP-P1) follows the programmatic approach of a horizontal Adaptable Program Loan (APL)[3]. The Global Environment Facility (GEF) endorsed the ASP-P1 on August 19, 2005. The Bank Board Approved the ASP-P1 was on September 8, 2005 for the first two Country Projects in the Programme, South Africa and Tunisia. Other “follow-on” projects (Tanzania, Mali, Morocco, and later Ethiopia) of the APL will be circulated to the GEF Secretariat for approval on a no-objection basis, and to the Board, 10 days before Regional Management final approval of each grant[4].

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

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

2.  Rationale for Bank Involvement

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

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

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

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