1

Government of Romania

National Agency for Fiscal Administration

ENVIRONMENTAL MANAGEMENT PLAN

AND

ENVIRONMENTAL GUIDELINES

FOR

REVENUE ADMINISTRATION REFORM PROJECT

April 12, 2006

PROPOSE APPROVAL

VICE-PRESIDENT

DANIEL CHITOIU

APROVED

PRESIDENT

SEBASTIAN BODU

ENVIRONMENTAL MANAGEMENT PLAN AND ENVIRONMENTAL

GUIDELINES

FOR

REVENUE ADMINISTRATION REFORM PROJECT

I.BACKGROUND

1.1.Project scope

The proposed project’s scope is to reform all NAFA major business processes for the collection of taxes and social contributions. The World Bank has been working closely with NAFA in defining the scope and activities of the project. NAFA has advanced substantially the tasks focused on defining the substantive activities to be undertaken under the project that form the foundation for all work to be executed, and include investments in technical assistance, training, information technology, and other goods, as well as civil works. One of the most important next steps is for NAFA to adopt a plan for the development of its organizational structure and management systems, with special attention to: (i) introducing principles of strategic management; (ii) improving headquarters management of field operations to ensure authority, coordination, and that the policies for evaluation and decision-making at all levels emanate from NAFA's headquarters; (iii) improving the structural focus on revenue collection, seeking improvements in the management of large and medium taxpayers and contributors through the use of a national Large Taxpayers Unit and regional Medium Taxpayer Units; and (iv) improving efficiency through the consolidation of NAFA’s revenue collection network, considering the suitability to operate under a three-tier strategy, as currently, or if a future two-tier organization were desirable, recommending the indicators that should be used to signal to management the timing and pace for structural consolidation.

1.2.Investment Component – Component 6

A main physical investment component of the proposed project is Component 6 building of the NAFA Headquarter in Bucharest, of a new building for data processing system, and the refurbishment of (2) existing buildings in Bucharest and (1) in Brasov.

Scope of works. Constructions and refurbishments will involve a new building for the central Headquarter in Bucharest and the range of refurbishment or interventions mentioned above for the existing buildings in Bucharest and Brasov. For both categories, new buildings and the refurbishing buildings, it is necessary to have feasibility studies, with alternatives (the new buildings are necessary alternative locations to be analyzed). The physical investments will follow the Romania environmental regulations, to which the World Bank specific safeguard operational procedures will be considered, such the Environmental Management Plan-EMP, in the requested format. In these cases it is necessary to obtain a construction certificate, for which an Environmental Approval is requested. In view of obtaining the Environmental Approval there are necessary complete processes to perform Environmental Impact Assessment (EIA), which are carried out based on the Romanian/EU regulations, considering the timing for public hearings and public debate as well. The EIA process for the central NAFA Bucharest Headquarter will start with the selection of the location, considering the City Hall regulations and the existing residential, architectural and/or protected zones. Refurbishing will involve altering some interior spaces and plan layouts, and adapting existing spaces for new functions. This will include moving interior partitions and providing new finishes. The building exterior will need upgrade for better weather protection and greatly increased energy efficiency (windows and doors will be replaced, as will heat systems.) Technical infrastructure will be largely upgraded in all cases, including electrical and mechanical systems, communications, and security and public safety systems. Where additions are being made to existing buildings, there will be cases where parts of the existing structure will be demolished to accommodate the new designs. Restoration of existing details will be undertaken where environmentally and architecturally appropriate.

Prioritized List. A methodology for prioritizing the objects for investments will be developed by the NAFA, along with a “short list” comprising the final options for the new and refurbishing buildings, with the assessed total investment value (estimated cost of design and works). The estimated costs for the proposed investments range from $ 45 millions (without VAT) to $ 50 millions (without VAT). The list represents major capital investments. These investments contained the investments in refurbishing and in repairs works as well.

Ongoing Government investment program. The Government of Romania is undertaking a program for NAFA consisting in 758,000 RON (about $ 277,000. A program budgeted at about $ 277,000 over the next years is too low to enable the Government from addressing many additional needs which represent serious constraints on the progress of fiscal reform. When matched with the Government’s program, the Bank project will allow NAFA to move more quickly on a range of needs.

Feasibility, EIA, Planning and Design standards. The project will establish feasibility studies with the selection of alternatives, based on EIAs conducted according with the Romania/EU procedures and the WB’ Operational Procedure for EMP, in view of ensuring that new investment and the refurbished buildings meet fundamental principles of functional appropriateness, efficiency and effectiveness of buildings and environmental and to serve as a guide for controlling costs. The national EIA and public hearing regulatory system request for alternatives analysis, measures for environmental media, and clearer indicators for an environmentally friendly space for NAFA staff, taxpayers and contributors. All these aspects will be considered by the central and local authorities, the architects and the designers. Complementary, the EMP format has to be considered in elaborating the EIAs for each individual case of civil construction.

1.3Environmental Category

The project is classified under the Environmental Category B in accordance with World Bank operational policies and requires the preparation of EIAs and an Environmental Management Plan (EMP) for each of the new investments and for the refurbishment.

The immediate aspect to be addressed is the selection of the NAFA Headquarters in Bucharest for which the City Hall spatial developments plans have to be considered. The impact of the proposed investment activities on the environment would assessed according with the enforced regulations (MO 860 from 2002), and considering the subsequent regulations in the way to be promoted based on the new Governmental Emergency Ordinance (GEO) No.195 from December 2005. There are expected some small changes in the regulatory system for environment, but not affecting the EIA procedure to be followed. The impact can be considered limited or significant only during the EIA process conducted under the supervision of the Regional Environmental Protection Agencies (REPAs) – the Bucharest one, and the Brasov, where one of the refurbishments will take place ones.

The environmental impacts can be assessed only case by case for the new buildings and for the selected buildings to be refurbished, considering their specific locations and local conditions. The potential synergic and additional character of the pollution will be assessed during the EIA processes.

In view of being in compliance with the Romanian regulations and the WB’s environmental safeguard operational procedures; NAFA considers two categories of aspects under the scope of the present project. The first refers to the special department for environment NAFA will establish, the environmental policy and the guiding Environmental Management System (EMS) necessary to be adopted in view of improving the management. The second aspect is referring to the concrete civil construction and refurbishing work, for which EIAs and EMPs need to be developed further based on the Romanian regulations and the specific WB’ Operational Procedures (e.g.: EMP).

Considering the civil constructions as the main type of work, there are some general aspects which are considered in this planning phase, and assessed as causing potentially sensitive or even adverse environmental impacts. Those presented bellow are considered with the project main scope as described so far, but are not restrictive:

  • The selection of the location for the new central NAFA Headquarter (in view of avoiding the residential, architectonic and protected aspect); enduring a good connection to the public transportation (bus, underway, etc.) and appropriate roads for the NAFA central Headquarters staff and for visitors;
  • The establishment of n environmental department to coordinating the environmental related processes and procedures to obtain the approval and endorsements linked with the process to obtain the Environmental Approval, and further the Environmental Permit as described bellow in section 1.5.;
  • The assessment of the concrete environmental aspects connected with each sites where EIA and EMP will be developed:

- Heating system (potential source for air pollution);

- Fresh and waste water (appropriate pipes for discharges and a good connection with the environmental infrastructure);

- Dust and noise during construction activities;

- Appropriate waste management system (in the building phase and in the NAFA operational stage), including contracts with the sanitary operator in the area, as requested by the regulations;

- Avoiding any unsafe handling of hazardous building materials (e.g. asbestos), if any are encountered;

- Avoiding unsafe practices during operation of the building, as requested by the health and safety regulations enforced in Romania.

  • The environmental department will consider the need to design and implement appropriate Environmental Management System (EMS) to respond to the need for a better management; this will consider an environmental policy of the new Headquarter which will be then transmitted to the NAFA braches; significant common environmental aspects, programs and monitoring systems will be determinate as well; the verification and supervision of the EMS will be design to respond to the need for a continue improvement of the system;
  • The health and safety measures and procedures are mandatory for the civil construction phase, as for any operation of an organization; these measures have to be addressed during the project development, starting with the panning phase.

The potential risks for environment is anticipated in advance of project implementation and addressed by national regulations and direct mitigation activities in the design, planning and construction supervision process as well as during the operation of the facilities.

1.4.Current Environmental Regulatory Framework in Romania

This section briefly describes existing environmental regulations and standards relevant to the project and makes reference to institutions at the local and national levels responsible for issuing approvals, permits, licenses, and enforcing compliance of environmental regulations and standards. Additional details on the environmental regulatory framework can be found in Attachment II (as presented respect the initial sample or civil works, but if it is necessary has to be slightly refine).

Governmental Emergency Ordinance (GEO) No. 195 from December 2005, other organic and major laws on various domains, International Conventions and treaties signed and ratified by Romania, different governmental decisions or ministerial orders, National Environmental Strategy and National Environmental Action Plan (NEAP) define the legal framework of environmental protection and related activities. The central authorities for environment are the Ministry of Environment and Water Management (MEWM) and the National Agency for Environmental Protection (NEPA) and its territorial branches and affiliates, such: Regional Environmental Protection Agencies-REPA, Local Environmental Protection Agency-LEPA. GEO No. 195 approaches the EU standards, sets general principles, including those referring to: polluter-pays, integrated monitoring, sustainable development, NGOs and public participation, international cooperation, rehabilitation of degraded areas and adopts the general ways for the enforcement of these principles, such as: harmonization of environmental polices and development programs, correlation between special and environmental development, compulsory use of the environmental permitting procedure for certain economic and social activities with significant environmental impacts, use of economic incentives.

Public or private organizations proposing new investment projects have to apply for environmental approval (mandatory before starting the design phase). The responsible environmental agency (REPA/LEPA) asks for the elaboration of an EIA, based on a frame stipulated in the enforced Ministerial Order (MO) No. 860/2002 concerning the approval of the Procedure for the EIA and issuing of the Environmental Approval (published in the Official Journal No. 52 from January 2003, modified by the MO No. 210/2004, published in the Official Journal No. 309 from April 2004. The EIAs can be accomplished by accredited experts and accompanied by public debates (two announcements and one debate). The public consultation is developed based on the Governmental Decision (GD) No. 1115/2002 concerning the access of the public to the environmental information, published in the Official Journal No. 781 from October 2002 Potential impacts, mitigation measures and the necessary monitoring system should be outlined in this process. After project design phase, and before the starting up of the operation, an environmental permit is required by the regulations. This might be issued after REPA/LEPA staff verified the compliance with environmental agreement provisions. Without these certificates, the proposed activity is not allowed to proceed. Awarding of both environmental approval and permit are preceded by obtaining of other approvals and endorsements (for telecommunication utilities, for natural gas network, for electric power, from the Fire Commandment, etc.), the Water Permit and the health and safety are the most important. The management agency of each activity is obliged to set up their internal or self-monitoring system. Indicators to be monitored are established according to the provisions included within environmental approval and permit. Data has to be registered and made available for REPA/LEPA staff. External Monitoring performed by an accredited entity is oriented mainly to the recognized important environmental aspects and polluters, as indicated in the EMP. It is important to mention that the EMP format is mandatory for any project financed by the World Bank.

Environmental Impact Assessment (EIA). The accomplishment of a full EIA, based on which the Environmental Approval can be issued is based on the GD No. 918/2002 concerning the establishment of the frame procedure to assess the EIA and to aprove the list of public and private projects under this procedure, published in the Official Journal No. 686 from 2002, and modified by the GD No. 1705/2004, published in the Official Journal No. 970 from October 2004. All projects listed in Annex I are always subject to EIA and those listed in Annex II will be subject to EIA if so determined by a case-by-case examination, made by the responsible REPA/LEPA. In adopting a decision for performing EIAs, the REPA/LEPA is guided by the criteria listed in the Annex III of the mentioned regulations.

II.ENVIRONMENTAL MANAGEMENT PLAN

2.1 Introduction

The Environmental Management Plan (EMP) has been prepared in order to integrate environmental concerns into the design and implementation of the proposed project. The EMP would support:

  • inclusion of EMP follow-up procedures in the operational processes of the NAFA;
  • highlighting the EMP follow-up responsibility in the job description of the NAFA Environmental Department or Environmental Management Team;
  • training of designated staff from the Environmental Department or Environmental Management Team participating in the project as well as from NAFA staff with responsibilities in implementing and controlling the EMP;
  • Site-specific environmental screening concerning all components supported activities for the activities and work to be developed in this program;
  • monitoring and evaluation of mitigation measures identified in the site-specific reviews; and
  • Elaboration of Environmental Guidelines for Environmental Management System in the planning and design of the activities to be developed under this project, considering the need for a Manual and Operating Procedures.

2.2.Establishment of Environmental Expertise within the Project Implementation Structure

An accredited Lead Auditor would be identified by the NAFA that would be responsible for coordination and supervision of the environmental plans, risk mitigation measures undertaken in the project. The Lead Auditor will work in close coordination with project coordination staff and technical staff: a) to coordinate environmental training for staff, designers and local contractors; b) to disseminate existing environmental management guidelines and develop guidelines in relation to issues not covered by the existing regulations, in line with Romanian/EU standards for implementation, monitoring and evaluation of mitigation measures, and with the WB Operational Procedures for environmental safeguard; c) to conduct periodic site visits to verify the compliance with applicable standards, plans and monitoring indicators, as listed in the EIA and EMP for each of the relevant component.

2.3. Site Specific Environmental Screening and Review

As a part of the EMP, all project supported activities for construction/rehabilitation would be subjected to a site-specific environmental screening and review process, according to the requirements of the GEO No. 195/2005, and GD No. 860/2002 modified by the MO No. 210/2004. In view of obtaining the construction approval, and during the EIA process, mitigation measures for site-specific environmental impacts will be propose. Meeting the WB environmental safeguard policy, the followings need to be review:

a)current environmental problems in situ (soil erosion, water supply contamination, etc.);

b)potential environmental impacts, if any, due to the project (disposal waste from construction, waste handling and disposal, construction noise and dust, etc);

c)any cultural assets that might be found in the place of construction;

d)the landscape and the biodiversity in the area of the construction;

e)potential foot and vehicle traffic disruption and associated public safety risks.

2.4 Supervision