58
HRVATSKE VODE Coastal Cities Water Pollution Control Project (PO65416) OPERATION MANUAL Safeguard policies Volume III Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized

OPERATION MANUAL Safeguard policies · SAFEGUARD POLICIES . HRVATSKE VODE . OPERATION MANUAL - Program . HRVATSKE VODE Sektor zaštite voda i mora od one čišćenja i zagađenja

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Page 1: OPERATION MANUAL Safeguard policies · SAFEGUARD POLICIES . HRVATSKE VODE . OPERATION MANUAL - Program . HRVATSKE VODE Sektor zaštite voda i mora od one čišćenja i zagađenja

HRVATSKE VODE Coastal Cities Water Pollution Control Project (PO65416)

OPERATION MANUAL

Safeguard policies

Volume

III Pub

lic D

iscl

osur

e A

utho

rized

Pub

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osur

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utho

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Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

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Administrator
E975 V. 6
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S A F E G U A R D P O L I C I E S

HRVATSKE VODE

OPERATION MANUAL - Program

HRVATSKE VODE Sektor zaštite voda i mora od onečišćenja i zagađenja

10000 ZAGREB Ulica grada Vukovara 220

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S A F E G U A R D P O L I C I E S

Table of Contents Chapter 1 Environmental Assessment ...............................................................................................3

1 Introduction ............................................................................................................................................ 3 2 Legal and administrative framework ...................................................................................................... 3

2.1 Environment protection strategy ........................................................................................................ 3 2.2 Operational and institutional implementation of EIA .......................................................................... 4 2.3 Comparison of Croatian legislative framework and World Bank's policies......................................... 7 2.4 Proposed amendments of the Croatian EIA system for compatibility with World Bank

OP 4.01............................................................................................................................................ 12 3 Description........................................................................................................................................... 13 4 Basic Data ........................................................................................................................................... 14 5 Environmental impacts......................................................................................................................... 14 6 Alternatives to Program ....................................................................................................................... 15 7 Mitigation measures............................................................................................................................. 15

7.1 Sea water quality control.................................................................................................................. 15 7.2 Sludge disposal control.................................................................................................................... 16 7.3 Odour control ................................................................................................................................... 16 7.4 Noise control .................................................................................................................................... 16 7.5 Requirements for industrial wastewater ........................................................................................... 16 7.6 Hazardous substances control......................................................................................................... 17 7.7 Requirements for wastewater reuse ................................................................................................ 17

8 Monitoring ............................................................................................................................................ 17 9 Procedures .......................................................................................................................................... 18

9.1 EIA Procedure for communities under 10.000 EP ........................................................................... 18 9.2 EIA Procedure for cities with over 10.000 EP .................................................................................. 18

10 Annexes............................................................................................................................................... 20 10.1 Annex: Contents of the EIA for communities under 10.000 EP........................................................ 20 10.2 Annex: Contents of the EIA for cities with over 10.000 EP .............................................................. 21 10.3 Annex: Assessing Sensitivity of Area............................................................................................... 23 10.4 Annex: Environmental Management Plan of the wastewater collection, treatment and

disposal project................................................................................................................................ 26 10.5 Annex: Rulebook on the Boundary Values of Parameters of Hazardous and Other

Substances in Wastewater, NG No. 40/99....................................................................................... 27 10.6 Annex: The Decree on the Classification of waters, NG No. 77/98.................................................. 29 10.7 Annex: Rulebook on Agricultural Soil Protection against Hazardous Substances (NG

15/92)............................................................................................................................................... 31 10.8 Annex: ecree on Recommended and Boundary Air Quality Values (NG 101/96).......................... 32 D10.9 Annex: Standards for industrial wastewater disposal (NG No. 40/99, 6/01) .................................... 33 10.10 Annex: Monitoring Plan.................................................................................................................... 35

Chapter 2 Social Assessment............................................................................................................36 Chapter 3 Land Acquisition - Resettlement .....................................................................................37

1 Introduction .......................................................................................................................................... 37 2 General Principle ................................................................................................................................. 37 3 Actions ................................................................................................................................................. 38 4 Reporting ............................................................................................................................................. 40 5 Annex A: The Expropriation Act ........................................................................................................... 41

5.1 Expropriation procedure................................................................................................................... 41 5.2 Costs and compensations................................................................................................................ 43

Chapter 4 Cultural Assets ..................................................................................................................44 1 Introduction .......................................................................................................................................... 44 2 Activities............................................................................................................................................... 44

2.1 When the alignment of system elements is determined, or proposed:............................................. 44 2.2 During Construction ......................................................................................................................... 45

Chapter 5 International waters ..........................................................................................................46 1 Introduction .......................................................................................................................................... 46 2 Annexes............................................................................................................................................... 46

2.1 Letter – draft text.............................................................................................................................. 46 2.2 Project report – draft attachment to letter......................................................................................... 47

3 Attachments......................................................................................................................................... 52 3.1 WB BP 7.50 (June 2001) ................................................................................................................. 52 3.2 WB OP 7.5 (June 2001)................................................................................................................... 55

1

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S A F E G U A R D P O L I C I E S

P R E F A C E

The International Bank for Reconstruction and Development (IBRD) is granting a loan to the Republic of Croatia for the improvement of the wastewater collection and treatment projects for

the settlements along the Adriatic coast and islands, i.e. as a financial support for the development of the program named Coastal Cities Water Pollution Control Project. This Program for the rehabilitation / modernization / reconstruction / improvement and construction of wastewater collection and treatment systems rely on the principle that individual communities, as well as relevant government institutions have to participate in program development.

This Operation Manual is the umbrella document which covers the program as a whole and should provide different information and sets of rules necessary for successful and transparent implementation of the Program.

The Operation manual consist of three volumes:

Volume I Program Volume II Operating Manual Volume III Safeguard policies

Volume I is a part of the Manual that discusses different issues related to the process of Program definition, such as: program background, program objectives, program scope, program description, determination of program geographical boundaries, identification of institutions involved – institutional framework, etc.

Volume II is a part of the Manual consisting of a number of sets of:

rules, regulations and standards (design criteria, accounting standards, environmental standards etc) general procedures (licensing procedures, land acquisition procedures, etc) and implementation procedures (project approving procedure, procurement, contracting etc).

In general this Volume gives the description of the procedure that each single project should pass through to be eligible for the financing.

This Volume III - Is a part of the Manual that gives the overall estimate of program impacts on the environment and discusses other environmental aspects of the program in general.

The Operation Manual should be the basic document that will be presented to the Bank and that will be approved by the Bank in the course of a project approval procedure. The Manual is prepared by Hrvatske vode who are responsible for the Program development in this early phase of project preparation in cooperation with a number of consultants involved in data collection and assessment, design preparation etc.

The Team wants to express it's gratitude to the World Bank staff involved in project preparation for all the information and suggestions they provided as well as for their great help during the compilation of this document.

2

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S A F E G U A R D P O L I C I E S

Chapter 1 Environmental

Assessment

1 Introduction

Implementation of the Project will be the joint responsibility of the participating communities and municipal companies (MC), the public sector represented by the Project

Implementation Unit (PIU) in the Hrvatske vode and HBOR.

2 Legal and administrative framework

Program will be implemented within the Croatian legal and administrative framework in environment protection sector, but taking into account the relevant safeguard policies

and rules of the World bank.

The Program in general deals with several overlapping aspects that should be addressed:

sea quality protection,

waste water collection and treatment facilities, and

quality of the wastewater collection and treatment services provided by the municipal companies.

The implementation of the Program should prove as acceptable and contributing to all of them.

The national strategy in environment protection sector is set within the NEAP, which generally streams the activities mostly deals with environment quality protection without consulting other relevant, complementary regulations. In those terms the implementation plan is not elaborated in detail, especially part which discuss available possible sources of financing and does not give any instructions

2.1 Environment protection strategy

Legal provisions1

Croatia’s 1974 constitution specified environment as a constitutional category. The 1990 constitution includes an obligation to protect the environment and nature and ensures the rights of citizens to a healthy environment. The constitutional provisions were supplemented in 1992, by the Declaration on Environmental Protection and, in 1994, by the Law on

1 WB Chapter

3

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S A F E G U A R D P O L I C I E S

Environmental Protection – an “umbrella” law, which sets objectives and principles and defines environmental liability and inspection systems. Also, this Law was amended in 1999. The Law on Nature Protection is currently under revision, for harmonization with the European Union directives.

The first legal requirement for environmental impact assessment (EIA) in Croatia was established in the 1980 Law on Physical Planning and Spatial Arrangement. Detailed regulations on the preparation of EIAs were issued in 1984. Articles 25-32 of the Law on Environmental Protection deal with different elements of EIA. A Decree on EIA was passed in April 1997. Its intent was to improve the EIA procedures, particularly as regards public participation, the quality of EIAs, the introduction of EIA review commissions, and provisions to integrate EIA into physical planning at an early stage. The Decree on EIA was replaced by a Rule Book on EIA, which was issued by the Ministry of Environmental Protection and Physical Planning in June 2000.

EIA reports cover a broad range of environmental effects and serve as pollution control submissions for air emissions as well. Discharges to water are dealt with separately by the water authorities. EIAs consider a project’s possible adverse impacts on soil, water, sea, air, forests, and terrain, as well as physical and cultural values.

Administrative framework2

The statutory authorities for EIA are the Ministry of Environment and Physical Planning (with national authority), and County Administrations (county offices with local environmental responsibilities, and the city of Zagreb). According to the 1997 Decree, a preliminary EIA was required if the location of the project had not been identified or had not been defined in sufficient detail. The preliminary study evaluated the acceptability of the proposed site. The final study provided all the necessary information for evaluation by EIA review commissions established under the 1997 Decree on EIA. However, according to the new Rule Book (2000), the preliminary EIA is no longer required. Now, there is only one EIA procedure.

Permanent commissions are formed for projects which tend to repeat (roads, airports, golf courses). The membership of other commissions is set for each project, according to its characteristics and the environment in which it will be located. A commission consists of at least five members proposed by government bodies, local government representatives, and relevant technical experts. The authors of the EIA study and the project proponent participate in the commission’s work, but with no rights to participate in decision-making. The conclusion of the commission is presented to Ministry of Environment and Physical Planning, which grants or withholds approval of the project.

Guidelines and procedures3

The general EIA procedures and rules are stipulated in the Rule Book for EIAs.

2.2 Operational and institutional implementation of EIA

Coordination among responsible institutions

The Croatia Law on Environment (Article 26-27) stipulates that the State Directorate for the Protection on Nature (replaced in 2000 by the Ministry for Environmental Protection and Physical Planning) is responsible for coordination of responsible institutions in regards to the EIA process.

2 WB Chapter 3 WB Chapter

4

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S A F E G U A R D P O L I C I E S

Strategic environmental assessments4

The EIA is used in reviewing some physical plans (i.e., through the preliminary study for developments not specified in physical planning documentation). Croatia is planning to introduce strategic environmental assessment (for plans, programs, and policies) into physical planning and other sectors this year. Strategic environmental assessments of physical plans are already carried out in Croatia under Article 34 of the Law on Environmental Protection, which requires that the Ministry of Environment and Physical Planning consent to such plans prior to their being approved. There are no detailed provisions for strategic assessments, however, and they are rarely carried out in the same depth as EIAs. Nonetheless, Article 33 requires environmental factors to be taken into account in drawing up physical plans. Provisions regarding the SEA have just (May 2002) been built into the draft amendments to the Law on Environmental Protection.

Screening: methods and categories5

During the METAP study, difficulties were reported in the use of EIA for reconstruction or modification of existing activities. Screening requirements of the Decree on EIA for modifications to existing activities are fairly ambitious. Also, the need for an EIA commission to evaluate all EIAs makes it difficult to streamline the process for relatively minor modifications. The problem is in part caused by a need to cover certain aspects of pollution control within EIA.

Scoping6

According to article 5 of the EIA Rule Book, the scoping procedure is required as part of the minimum requirements for the EIA. It is up to the proponent to recognize all impacts of the proposed project. During the review process, the EIA Commission has the right to ask for additional scoping.

Basic requirements for EIAs7

At the core of the Decree on EIA is an obligation to assess the environmental impact of the “spatial interventions” listed in an annex. The physical intervention list, which is an integral part of the decree, includes electric power plants and facilities for the storage and transport of crude oil and gas.

The law decree stipulates that EIAs include a description of the project and the site; purpose of the project; description of the vicinity; and evaluation of environmental risks, alternative solutions, proposals to protect the environment, and mitigation measures. The study is assessed by an EIA review commission appointed by the government. The number and professional profile of the commission’s members are usually determined according to the nature of the project and the characteristics of the affected environment.

If the proposed project is publicly accepted, the commission formally draws a conclusion no later than 30 days after the public hearing and within four months after the commission’s first session. The conclusion and all the documentation are forwarded to the Ministry of Environment and Physical Planning, which, in turn, decides within 30 days whether or not to approve the planned project. Only in exceptional cases does the ministry reject the commission’s conclusions. The decision to grant or refuse permission for a project cannot

4 WB Chapter 5 WB Chapter 6 WB Chapter 7 WB Chapter

5

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S A F E G U A R D P O L I C I E S

be appealed, but it is possible to initiate administrative litigation. If an EIA is not required according to the Rule Book, the county where the project is to be carried out can nevertheless require an EIA if this EIA is required under the county physical plan. On average, each year about 80 EIAs are conducted on the national level and 30 on the county level.

Specific aspects of the EIA system that require further attention, according to the METAP review include:

Quality of EIA reports

Scoping

Baseline data

EIA of projects for reconstruction or modification of existing activities

Health impacts, pollution control, and environmental audit

Composition of EIA commissions

Strategic environmental assessment

Public participation8

Two official bodies are involved in informing the public of EIA studies: the Coordinating Body (a local self-government entity in charge of environmental protection) and the Enforcing Body. An EIA study that is accepted by the EIA review commission is forwarded to the Coordinating Body, which has to submit it to a public hearing lasting 14-21 days. The documentation to be presented at the public hearing encompasses the entire EIA study documentation as well as relevant summaries. The public is entitled to put forward opinions, proposals, and suggestions in writing or orally. The EIA Review Commission is obliged to explain why opinions, proposals, or suggestion made by the public were not taken into consideration. There is then a detailed procedure for public participation.

Monitoring, enforcement, and compliance9

Article 5 of the EIA Rule Book stipulates that proponents must propose an Environmental Management Plan which describes all measures for mitigation and a monitoring program.

8 WB Chapter 9 WB Chapter

6

Page 9: OPERATION MANUAL Safeguard policies · SAFEGUARD POLICIES . HRVATSKE VODE . OPERATION MANUAL - Program . HRVATSKE VODE Sektor zaštite voda i mora od one čišćenja i zagađenja

SA

FE

GU

AR

D P

OL

IC

IE

S

2.3

Com

paris

on o

f Cro

atia

n le

gisl

ativ

e fr

amew

ork

and

Wor

ld B

ank'

s po

licie

s

Legi

slat

ion

& P

roce

dure

s

The

MET

AP s

tudy

mad

e se

vera

l re

com

men

datio

ns f

or s

treng

then

ing

the

EIA

syst

em:

impr

ovin

g pu

blic

par

ticip

atio

n, s

cree

ning

, en

viro

nmen

tal

man

agem

ent

plan

s, i

mpl

emen

tatio

n m

onito

ring,

the

con

tent

of

EIA

repo

rts,

pollu

tion

cont

rol,

trans

boun

dary

and

glo

bal

impa

cts,

and

the

de

velo

pmen

t of f

urth

er g

uide

lines

. Man

y of

the

feat

ures

of t

he C

roat

ian

EIA

syst

em a

re g

ener

ally

com

patib

le w

ith th

e co

rresp

ondi

ng fe

atur

es o

f W

orld

Ban

k pr

oced

ures

(O

P 4.

01),

and

are

also

con

sist

ent w

ith E

urop

ean

Uni

on D

irect

ive

(97/

11/E

C).

How

ever

, the

re a

re d

iffer

ence

s in

cer

tain

fe

atur

es, w

hich

wou

ld n

eed

to b

e ad

dres

sed

(sum

mar

ized

in fo

llow

ing

tabl

e).

C

roat

ian

EIA

Sys

tem

W

B P

roce

dure

C

hang

es f

or

Com

pati

bilit

y w

ith

WB

1

Enab

ling

legi

slat

ion

for

EIA

Law

on

Envi

ronm

enta

l Pro

tect

ion

(LEP

) (82

/94)

, (12

8/99

) O

P 4.

01, 1

999,

Ann

exes

A, B

, and

C (m

anda

tory

)

EA i

s th

e pr

oces

s w

hose

bre

adth

, de

pth,

and

typ

e of

ana

lysi

s de

pend

on

the

natu

re, s

cale

, and

pot

entia

l env

ironm

enta

l im

pact

(O

P 4.

01, p

ara.

2) t

hat r

esul

ts in

an

EA re

port.

EA

id

entif

ies

way

s of

im

prov

ing

a pr

ojec

t by

pr

even

ting,

m

inim

izin

g,

miti

gatin

g,

or

com

pens

atin

g fo

r ad

vers

e en

viro

nmen

tal i

mpa

cts

and

enha

ncin

g po

sitiv

e im

pact

s.

The

borro

wer

is re

spon

sibl

e fo

r car

ryin

g ou

t the

EA.

2 D

etai

led

legi

slat

ion

for E

IA

Rul

e Bo

ok o

n EI

A (2

000)

BP

/GP

4.01

(adv

isor

y an

d gu

idan

ce)

3

Form

al

prov

isio

ns

for

stra

tegi

c en

viro

nmen

tal

asse

ssm

ent (

SEA)

none

N

one.

A ra

nge

of in

stru

men

ts, i

nclu

ding

sec

tora

l and

regi

onal

EA,

can

be

use

d to

sat

isfy

the

WB’

s EA

requ

irem

ent (

OP

4.01

, par

a. 7

; Ann

ex

A, p

aras

. 6 a

nd 8

; Ann

ex B

, par

a. 2

(f) a

nd fn

. 3).

4 Lo

cal

gove

rnm

ent

EIA

legi

slat

ion

or p

roce

dure

s Za

greb

and

cou

nty

gove

rnm

ents

em

pow

ered

to

requ

ire E

IA,

but

mos

t EIA

s ar

e ha

ndle

d na

tiona

lly.

EA ta

kes

into

acc

ount

the

coun

try’s

ove

rall

polic

y fra

mew

ork,

nat

iona

l le

gisl

atio

n, i

nstit

utio

nal

capa

bilit

ies

and

oblig

atio

ns u

nder

rel

evan

t in

tern

atio

nal

envi

ronm

enta

l tre

atie

s an

d ag

reem

ents

. Th

e W

B do

es

not

finan

ce p

roje

ct a

ctiv

ities

tha

t w

ould

con

trave

ne s

uch

coun

try

oblig

atio

ns, a

s id

entif

ied

durin

g EA

. (O

P 4.

01, p

ara.

3).

5 Se

ctor

al

auth

ority

EI

A le

gisl

atio

n or

pro

cedu

res

N

one

-

6 G

ener

al

& sp

ecifi

c gu

idel

ines

Va

rious

The

1991

EA

Sour

cebo

ok (3

vol

s.) a

nd E

A So

urce

book

Upd

ates

(N

os. 1

-26)

. Th

e 19

99 P

ollu

tion

Prev

entio

n an

d Ab

atem

ent

Han

dboo

k (O

P 4.

01, p

ara.

6).

Som

e ad

ditio

nal

guid

elin

es

may

be

nece

ssar

y.

7

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SA

FE

GU

AR

D P

OL

IC

IE

S

Adm

inis

trat

ion

7 M

ain

adm

inis

trativ

e bo

dy

for E

IA

Min

istry

of

En

viro

nmen

tal

Prot

ectio

n an

d Ph

ysic

al P

lann

ing

(MEP

PP)

The

WB

regi

on c

oord

inat

es W

B re

view

of E

A in

con

sulta

tion

with

its

Reg

iona

l En

viro

nmen

t Se

ctor

Uni

t (R

ESU

) an

d, a

s ne

cess

ary,

with

su

ppor

t of t

he E

nviro

nmen

t Dep

artm

ent (

ENV)

(BP

4.01

, par

a. 1

).

8 C

ompe

tent

au

thor

ity

for

envi

ronm

enta

l ac

cept

abilit

y

MEP

PP,

base

d on

con

clus

ion

of

EIA

Com

mis

sion

D

irect

or, R

ESU

; cha

ir, E

nviro

nmen

t Sec

tor

Boar

d; a

nd u

ltim

atel

y th

e Bo

ard

of E

xecu

tive

Dire

ctor

s.

9 R

evie

w b

ody

for E

IA

EIA

Com

mis

sion

, inc

ludi

ng o

ther

ag

enci

es w

ith e

nviro

nmen

tal

resp

onsi

bilit

ies.

RES

U

10

Sect

oral

aut

horit

y re

spon

sibi

litie

s N

one

The

task

team

, with

RES

U c

oncu

rrenc

e, a

ssig

ns th

e pr

opos

ed p

roje

ct

to o

ne o

f fou

r cat

egor

ies:

A, B

, C, o

r F1

(BP

4.01

, par

a. 2

).

11

Loca

l gov

ernm

ent

resp

onsi

bilit

ies

Loca

l gov

ernm

ent e

mpo

wer

ed to

en

act o

wn

legi

slat

ion,

but

sys

tem

is

prim

arily

cen

traliz

ed.

NA

12

Oth

er b

odie

s re

spon

sibl

e fo

r pla

nnin

g ap

prov

al

Nat

iona

l and

loca

l phy

sica

l pl

anni

ng a

utho

ritie

s.

The

regi

onal

vic

e pr

esid

ent;

chai

r, EN

V; a

nd th

e Le

gal D

epar

tmen

t (L

EG) (

e.g.

, BP

4.01

, par

a. 5

and

as

defin

ed in

rele

vant

OPs

).

13

Met

hod

of c

oord

inat

ion

with

oth

er p

lann

ing

appr

oval

bod

ies

Loca

l pla

nnin

g bo

dy is

par

t of E

IA

Com

mis

sion

Inte

rnal

ly: w

ith th

e EN

V, th

e LE

G, e

tc.

Exte

rnal

ly: t

he W

B ad

vise

s th

e bo

rrow

er o

n th

e W

B’s

EA

requ

irem

ent,

revi

ews

the

EA re

port

(OP

4.01

, par

a. 5

); re

view

is

in w

ritin

g on

cer

tain

asp

ects

of t

he E

A pr

oces

s, re

quire

men

ts,

and

docu

men

tatio

n (P

B 4.

01, p

aras

. 6-1

2).

For r

isky

pro

ject

s: th

e qu

ality

ass

uran

ce a

nd c

ontro

l tea

m

(QAC

T) o

f the

env

ironm

ent “

anch

or” o

f the

WB

It w

ould

be

adva

ntag

eous

to

spec

ify c

onsu

ltatio

n w

ith

othe

r gov

ernm

ent b

odie

s.

14

Met

hod

of c

oord

inat

ion

with

pol

lutio

n co

ntro

l ap

prov

al &

regu

latio

n

Air p

ollu

tion

is c

over

ed b

y EI

A;

wat

er p

ollu

tion

by th

e w

ater

au

thor

ities

. Coo

rdin

atio

n is

th

roug

h th

e EI

A C

omm

issi

on.

Use

of P

ollu

tion

Prev

entio

n an

d Ab

atem

ent H

andb

ook

avai

labl

e as

gui

danc

e Th

e EA

may

reco

mm

end

alte

rnat

ive

emis

sion

leve

ls a

nd

appr

oach

es to

pol

lutio

n pr

even

tion

and

abat

emen

t of t

he p

roje

ct

(OP

4.01

, par

a. 6

).

For p

ollu

tant

s or

pro

cess

es

for w

hich

nat

iona

l sta

ndar

ds

have

not

yet

bee

n de

velo

ped,

mak

e us

e of

the

WB

Pollu

tion

Prev

entio

n an

d Ab

atem

ent H

andb

ook.

Sta

ges

of S

cree

ning

15

Sc

reen

ing

cate

gorie

s Si

ngle

cat

egor

y.

Cat

egor

ies

A, B

., C

, and

F1)

OP

4.01

, par

as. 8

-13)

. C

larif

y w

hat t

ypes

of

smal

l/med

ium

-siz

ed p

roje

cts

are

subj

ect t

o si

mpl

er fo

rms

of a

sses

smen

t. 16

Sc

reen

ing

met

hod

Man

dato

ry li

st, w

ith th

resh

olds

W

B sc

reen

s an

d cl

assi

fies

proj

ects

dep

endi

ng o

n th

eir t

ype,

loca

tion,

se

nsiti

vity

, and

sca

le a

nd th

e na

ture

and

mag

nitu

de o

f pot

entia

l im

pact

s (O

P 4.

01, p

ara.

8),

usin

g illu

stra

tive

scre

enin

g lis

ts (G

P 4.

01,

Anne

x B)

.

8

Page 11: OPERATION MANUAL Safeguard policies · SAFEGUARD POLICIES . HRVATSKE VODE . OPERATION MANUAL - Program . HRVATSKE VODE Sektor zaštite voda i mora od one čišćenja i zagađenja

SA

FE

GU

AR

D P

OL

IC

IE

S

Sco

ping

17

Sc

opin

g m

etho

d Ar

t. 5,

pot

entia

l for

sco

ping

de

fined

by

the

Rul

e Bo

ok o

n EI

A

EA ta

kes

into

acc

ount

the

natu

re, s

cale

, and

pot

entia

l im

pact

s on

th

e na

tura

l env

ironm

ent,

hum

an h

ealth

and

saf

ety,

soc

ial,

and

trans

boun

dary

and

glo

bal e

nviro

nmen

tal a

spec

ts o

f act

iviti

es.

Nat

ural

and

soc

ial a

spec

ts a

re c

onsi

dere

d in

an

inte

grat

ed w

ay.

Req

uire

men

ts m

anda

ted

unde

r oth

er W

B po

licie

s ar

e ta

ken

into

ac

coun

t: e.

g., O

P 4.

04 (J

une

2001

), O

P 4.

07 (F

ebru

ary

2000

), O

P 4.

09 (D

ecem

ber 1

998)

, OP

4.11

(Aug

ust 1

999)

, OP

4.12

(D

ecem

ber 2

001)

, OD

4.2

0 (D

ecem

ber 1

991)

, OP

4.20

(Oct

ober

19

99),

OP

4.36

(Mar

ch 1

993)

, OP

4.37

(Oct

ober

200

1), O

P 7.

50

(Jun

e 20

01),

Op

7.60

(Jun

e 20

01),

OP

8.50

(Aug

ust 1

995)

, OD

9.

01 (M

ay 1

992)

, OD

14.

70 (A

ugus

t 198

9).

The

WB

disc

usse

s th

e sc

ope

of th

e EA

with

the

borro

wer

, in

clud

ing

durin

g a

field

vis

it by

an

envi

ronm

enta

l spe

cial

ist,

and

help

s to

dra

ft te

rms

of re

fere

nce

for t

he E

A, e

nsur

ing

publ

ic

parti

cipa

tion

and

inte

rage

ncy

coor

dina

tion.

R

ESU

revi

ews

term

s of

refe

renc

e (B

P 4.

01, p

aras

. 6-7

).

Con

tent

of

Stu

dy

18

Con

tent

of E

IA re

port

Proj

ect d

escr

iptio

n an

d pu

rpos

e R

elat

ions

hip

to p

hysi

cal

plan

s Ba

selin

e da

ta

Ove

rvie

w o

f im

pact

s C

ompa

rison

of a

ltern

ativ

es

Miti

gatio

n m

easu

res

Mon

itorin

g pr

ogra

m

Non

-tech

nica

l sum

mar

y

Prov

ided

in O

P 4.

01, A

nnex

B, g

iven

to th

e bo

rrow

er u

nder

WB’

s ex

plan

ator

y co

ver l

ette

r. In

clud

es:

Exec

utiv

e su

mm

ary

Polic

y, le

gal a

nd a

dmin

istra

tive

fram

ewor

k Pr

ojec

t des

crip

tion

Base

line

data

Pr

edic

tion

and

asse

ssm

ent o

f env

ironm

enta

l im

pact

s an

d m

itiga

tion

Anal

ysis

of a

ltern

ativ

es

Envi

ronm

enta

l man

agem

ent p

lan

List

of E

IA re

port

prep

ares

R

ecor

d of

con

sulta

tions

R

efer

ence

s an

d su

ppor

ting

data

O

n th

e fo

rmat

of t

he E

A re

port,

see

GP

4.01

, par

as. 5

-7.

Rev

ise

cont

ent t

o in

clud

e al

l W

B co

mpo

nent

s.

19

Req

uire

men

t for

non

-te

chni

cal s

umm

ary

Req

uire

d Ex

ecut

ive

sum

mar

y in

a fo

rm a

nd la

ngua

ge th

at a

re u

nder

stan

dabl

e an

d ac

cess

ible

to th

e gr

oups

bei

ng c

onsu

lted

(OP

4.01

, par

a. 1

6).

20

Req

uire

men

t for

co

nsid

erin

g al

tern

ativ

es

Mus

t be

stud

ied

and

com

pare

d Th

is is

a p

olic

y re

quire

men

t, si

nce

an E

A is

to e

valu

ate

a pr

ojec

t’s

pote

ntia

l env

ironm

enta

l ris

ks a

nd im

pact

s in

its

area

of i

nflu

ence

, to

exam

ine

proj

ect a

ltern

ativ

es, e

tc. (

OP

4.01

, par

a. 2

).

21

Req

uire

men

t for

en

viro

nmen

tal

Mon

itorin

g pr

ogra

m w

here

ap

plic

able

Spec

ifica

lly re

quire

d in

OP

4.01

(par

a. 7

) and

exp

lain

ed in

Ann

ex

C.

Add

requ

irem

ent f

or fu

ll lE

MP,

with

det

ails

as

WB

9

Page 12: OPERATION MANUAL Safeguard policies · SAFEGUARD POLICIES . HRVATSKE VODE . OPERATION MANUAL - Program . HRVATSKE VODE Sektor zaštite voda i mora od one čišćenja i zagađenja

SA

FE

GU

AR

D P

OL

IC

IE

S

man

agem

ent p

lans

(EM

P)

O

P 4.

01 s

treng

then

s an

d cl

arifi

es th

e ro

le o

f the

EM

P by

sp

ecifi

cally

list

ing

EMP

as a

com

pone

nt o

f the

cat

egor

y A

proj

ect

EA re

port

and

citin

g EM

P pr

ovis

ions

rela

ted

to th

e im

plem

enta

tion

of th

e EA

. 22

R

equi

rem

ent f

or

trans

boun

dary

impa

cts

prov

ided

for b

y th

e R

ule

Book

on

EIA,

whi

le E

spoo

Con

vent

ion

requ

irem

ents

are

pro

vide

d fo

r in

the

LEP

C

ompl

ianc

e w

ith a

ll in

tern

atio

nal t

reat

ies

is s

peci

fied.

Th

e W

B do

es n

ot fi

nanc

e pr

ojec

t act

iviti

es th

at c

ontra

vene

co

untry

obl

igat

ions

und

er re

leva

nt in

tern

atio

nal e

nviro

nmen

tal

treat

ies

and

agre

emen

ts.

Add

requ

irem

ent f

or

trans

boun

dary

impa

ct, a

s W

B

23

Req

uire

men

t fo

r gl

obal

im

pact

s pr

ovid

ed b

y th

e R

ule

Book

on

EIA

R

equi

red.

Im

pact

s in

clud

e cl

imat

e ch

ange

, oz

one

depl

etio

n, p

ollu

tion

of

inte

rnat

iona

l wat

ers,

and

adv

erse

impa

cts

on b

iodi

vers

ity.

Add

requ

irem

ent

for

glob

al

impa

cts,

as

WB

Rev

iew

, pub

lic p

arti

cipa

tion

, & d

ecis

ion-

mak

ing

24

Met

hod

for

revi

ew

of

cont

ent &

sub

stan

ce o

f EA

repo

rts s

ubm

itted

Rev

iew

by

EIA

Com

mis

sion

Com

paris

on w

ith te

rms

of re

fere

nce

(BP)

C

onsi

sten

cy w

ith te

rms

of re

fere

nce

as s

peci

fied

in th

e gu

ide

for

prep

arat

ion

and

revi

ew o

f EA

repo

rts

Fiel

d vi

sit b

y an

env

ironm

enta

l spe

cial

ist

25

Req

uire

men

t fo

r pu

blic

pa

rtici

patio

n Pu

blic

hea

ring

Fo

r ca

tego

ry A

& B

pro

ject

s, t

he b

orro

wer

con

sults

pro

ject

-af

fect

ed g

roup

s an

d lo

cal N

GO

s.

Fo

r ca

tego

ry A

pro

ject

s, c

onsu

ltatio

n oc

curs

tw

ice:

(1)

sho

rtly

afte

r sc

reen

ing

and

befo

re E

A te

rms

of r

efer

ence

are

fin

aliz

ed

(sco

ping

) and

(2) o

nce

a dr

aft E

A re

port

is p

repa

red.

26

Arra

ngem

ents

for

acc

ess

to E

IA re

ports

Av

aila

ble

for p

ublic

hea

ring

1 Fo

r cat

egor

y A

proj

ects

: prio

r to

proj

ect a

ppra

isal

2 EA

ava

ilabl

e at

the

WB’

s In

fosh

op

For c

ateg

ory

B pr

ojec

ts fi

nanc

ed b

y ID

A: p

rior t

o ap

prai

sal

3

4

For

cate

gory

B p

roje

cts

finan

ced

by I

BRD

for

whi

ch a

sep

arat

e EA

repo

rt is

requ

ired

(no

time

perio

d gi

ven

for t

he s

ubm

issi

on o

f EA

repo

rt)

EA r

epor

t is

ava

ilabl

e in

a s

uita

ble

publ

ic l

ocat

ion

in t

he

borro

win

g co

untry

EA

repo

rt is

ava

ilabl

e at

the

WB

Info

shop

whe

n re

ceiv

ed

Gua

rant

ee o

pera

tions

: C

ateg

ory

A or

B r

epor

t m

ust

be s

ubm

itted

bef

ore

end

of

appr

aisa

l

5

For

IBR

D g

uara

ntee

: A

repo

rt at

WB

Info

shop

60

days

be

fore

mee

ting

of t

he I

BRD

Boa

rd;

for

B re

port,

30

days

be

fore

Fo

r ID

A gu

aran

tee:

sam

e as

loan

s Bo

rrow

er’s

per

mis

sion

to r

elea

se th

e EA

rep

ort i

s re

quire

d. S

ee

also

, BP

17.5

0: D

iscl

osur

e of

Ope

ratio

nal I

nfor

mat

ion.

10

Page 13: OPERATION MANUAL Safeguard policies · SAFEGUARD POLICIES . HRVATSKE VODE . OPERATION MANUAL - Program . HRVATSKE VODE Sektor zaštite voda i mora od one čišćenja i zagađenja

SA

FE

GU

AR

D P

OL

IC

IE

S

27

Dec

isio

n-m

akin

g au

thor

ity

EIA

Com

mis

sion

m

akes

co

nclu

sion

on

en

viro

nmen

tal

acce

ptab

ility,

fo

r ap

prov

al

by

MEP

PP

RES

U r

evie

ws

the

EA a

nd c

lear

s de

partu

re o

f W

B ap

prai

sal

mis

sion

or r

equi

res

addi

tiona

l wor

k.

Inte

grat

ed w

ith a

ppra

isal

of p

roje

ct d

esig

n an

d ec

onom

ic a

naly

sis

(BP)

28

Prov

isio

ns fo

r app

eal

Non

e in

the

Rul

e Bo

ok o

n EI

A Se

e BP

17.

55: I

nspe

ctio

n Pa

nel

Mon

itor

ing

29

Mon

itorin

g,

enfo

rcem

ent,

& co

mpl

ianc

e

WB

mon

itors

com

plia

nce

with

the

prov

isio

ns o

f a lo

an a

gree

men

t.

30

Req

uire

men

ts

for

follo

w-

up &

mon

itorin

g N

one

in t

he R

ule

Book

on

EIA,

bu

t MEP

PP u

nder

take

s se

para

te

insp

ectio

ns.

Rep

orts

sub

mitt

ed to

WB

by b

orro

wer

, sup

ervi

sion

vis

its b

y W

B (B

P 4.

01, p

ara.

20)

C

larif

y re

spon

sibi

litie

s fo

r fo

llow

-up

mon

itorin

g

Cap

acit

y 31

Ex

perti

se fo

r con

duct

ing

EIA

(by

sect

or, i

f pos

sibl

e)

No

prov

isio

n in

the

Rul

e Bo

ok o

n EI

A, b

ut a

lice

nsin

g sy

stem

is

oper

ated

.

Borro

wer

sho

uld

reta

in in

depe

nden

t EA

expe

rts, e

stab

lish

an

inde

pend

ent i

nter

natio

nal p

anel

for m

ajor

issu

es fo

r cat

egor

y A

proj

ects

and

for t

he D

am S

afet

y Pa

nel (

see

OP

4.01

, par

a.4,

fn.7

and

O

P/BP

4.3

7).

Inte

rnat

iona

l pan

el fo

r m

ajor

issu

es.

Stre

ngth

en re

view

sy

stem

for i

ndep

ende

nt

revi

ew.

32

Rat

ifica

tion

of in

tern

atio

nal

treat

ies

rela

ted

to E

IA

(Esp

oo &

Aar

hus

Con

vent

ions

)

Espo

o C

onve

ntio

n ra

tifie

d 7

Augu

st 1

996

Aarh

us C

onve

ntio

n si

gned

25

Jun

e 19

98

WB

is n

eith

er a

sig

nato

ry n

or a

par

ty.

Expl

anat

ory

note

s:

Wor

ld B

ank

OP

(ope

ratin

g pr

oced

ure)

, BP

(Ban

k pr

oced

ure)

, GP

(goo

d pr

actic

e), O

D (o

pera

tiona

l dire

ctiv

e).

The

envi

ronm

enta

l “an

chor

” of

the

wor

ld B

ank

is a

n or

gani

zatio

nal c

onsu

ltativ

e en

tity

that

ass

embl

es c

hief

s of

env

ironm

enta

l uni

ts f

rom

all

regi

ons

and

othe

rs to

dis

cuss

ope

ratio

nal a

nd p

olic

y m

atte

rs o

f com

mon

inte

rest

.

IDA=

Inte

rnat

iona

l Dev

elop

men

t Ass

ocia

tion;

IBR

D=I

nter

natio

nal B

ank

for R

econ

stru

ctio

n an

d D

evel

opm

ent.

11

Page 14: OPERATION MANUAL Safeguard policies · SAFEGUARD POLICIES . HRVATSKE VODE . OPERATION MANUAL - Program . HRVATSKE VODE Sektor zaštite voda i mora od one čišćenja i zagađenja

S A F E G U A R D P O L I C I E S

2.4 Proposed amendments of the Croatian EIA system for compatibility with World Bank OP 4.01 The METAP study made several recommendations for strengthening the EIA system: improving public participation, screening, environmental management plans, implementation monitoring, the content of EIA reports, pollution control, transboundary and global impacts, and the development of further guidelines. Many of the features of the Croatian EIA system are generally compatible with the corresponding features of World Bank procedures (OP 4.01), and are also consistent with European Union Directive (97/11/EC). However, there are differences in certain features, which would need to be addressed. These are summarized in Table 1, while Table 2 compares all features of EIA in Croatia with the World Bank procedures.

Requirement Suggested action

1 Public participation Clarify requirements for participation in scoping.

2 Screening Clarify what types of small/medium sized projects are subject to simpler forms of assessment than full EIAs.

3 Environmental management plans

Add requirement for a full environmental management plan, in accordance with World Bank OP 4.01.

4 Implementation monitoring

Clarify responsibilities for follow-up monitoring.

5 Content of EIA report Revise required content to include all components specified in OP 4.01.

6 Pollution control For pollutants or processes for which national standards have not yet been developed, make use of the World Bank’s Pollution Prevention and Abatement Handbook 1999.

7 Guidelines Provide addition guidelines to give developers and consultants fuller guidance on potential impacts and appropriate impact prediction techniques.

8 Transboundary and global impacts

Specify in regulations or enforceable procedures that the study of transboundary and global impacts is required, as in OP 4.01.

In the realisation of this Program, the following principles are proposed for the preparation of the Environmental Impact Assessment Studies:

EIAs are prepared for each coastal zone in a county as one integral Study for a Construction Program.

The Construction Program Study includes all public sewerage systems of under 10.000 EP and is prepared in accordance with UNEP Regional Seas Reports and Studies No. 122, UNEP 1990 (see Annex 1).

For public sewerage systems of over 10.000 EP, special integral Studies are prepared in accordance with the Rool Book on Environmental Impact Assessment (see Annex 2).

For public sewerage systems of under 10.000 EP from which wastewaters are discharged into “particularly protected zones” or into “sensitive areas”, integral Studies are prepared, as well as for systems of over 10.000 EP (see Annex 3).

For public sewerage systems of under 10 000 EP that are prepared as per Article 2, an Environmental Management Plan is prepared for each community in addition to the Study (see Annex 4).

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3 Description The project will be implemented in the coastal zone with high touristic potential, important to the development of the national economy of Croatia. Construction of the municipal infrastructure – sewerage would, to a large extent, protect the natural resources of crucial importance for the development and increasing of the tourist potential.

The project will be of a regional character, balancing the needs and the possibilities, priorities and potentials, also promoting the development of minor but, from the touristic perspective, very important communities.

For the purpose of the Project preparation, 1030 communities were analyzed in 7 Counties on the Adriatic coast (arr. 40% of the total number of communities), with 1,150 mil. inhabitants (arr. 75% of the population in the said Counties).

In the major part, the projects include construction, remodeling or extension of complete systems, and only in the minor part construction of individual facilities in the framework of already existing wastewater collection, treatment and disposal systems.

The Adriatic coast in one of the most important “resources” of the Republic of Croatia. With the exception of few isolated spots, the environment is still capable of mitigating the negative impact of economic activities. However, the more frequent repetition of “natural” incidents, like flourishing of the sea, indicates that the system is becoming more sensitive, easy to be pushed out balance and probably very close to the limit of its receiving capacity.

On the other hand, the development of the region relies upon the fact that the Adriatic coast is and will be a healthy environment for living and recreation and assumes intensification of economic activities, particularly tourism, shipbuilding and fishing. The investment in the expansion of touristic capacities will surely be followed with the development of transportation, agriculture and trading, as well as with the growth of real estate investments.

The basic objectives of the program are:

first to preserve and to protect the existing environment before permanent damage to the quality of the environment occurs,

second to provide the basis for safe and environmentally acceptable economic development, and

third to improve the existing quality of the environment.

In order to achieve these goals, this Program will give technical and financial support to all activities directed towards the improvement of efficiency of water quality protection and water pollution control sector, such as:

construction of wastewater collection and treatment facilities,

regulatory and institutional strengthening,

development of monitoring,

promoting active public involvement,

mobilizing joint technical, professional and financial resources on a local and national level.

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4 Basic Data The Republic of Croatia is located in Southeastern Europe in the Balkan Peninsula. Formerly a constituent republic of the Socialist Federal Republic of Yugoslavia, Croatia declared its independence on 15 June 1991. A war ensued and lasted until 1996. With the election in January 2000 of a new government, discussions with the European Union on accession have been initiated. The country has an area of about 56,538 square kilometers. Its largest cities include Zagreb, the capital and main industrial center with a population of 726,770; Split (189,000) and Rijeka (167,000), two major seaports; and Osijek (104,000), an industrial center. The total population is about 4,700,000.

Croatia’s economy went into a steep and rapid decline with the outbreak of war in 1991. Between 1991 and 1994 the gross domestic product declined by more than one third, reflecting the collapse of the tourist industry, a major source of foreign exchange earnings, and damage to the industrial and agricultural sectors. Croatia began a slow economic recovery in late 1993. The republic joined the International Monetary Fund in January 1994 and the World Bank in April 1994 and by the end of 1994 had privatized almost half of the country’s businesses.

The coastline of Croatia is 2,000 kilometers long on the Adriatic Sea. It has over 1,000 islands. About 37% of the land is covered by forests. The geology is primarily karst, and karst ecosystems support a globally significant biodiversity. Given this diversification of landscape and economic development, it is not surprising that Croatia exhibits many forms of environmental degradation – from pollution of air, water, and soil, to inadequate management of natural resources and biodiversity. The country also contributes to resolving of regional and global problems such as ozone depletion and climate change. However, compared with the environmental problems of other countries of Central and Eastern Europe, few of Croatia’s problems could be categorized as severe or pervasive; rather, they tend to be moderate in severity, limited in extent, and potentially manageable.

The main environmental problems are those that relate to water and air pollution and soil erosion. Many atmospheric pollutants exceed international accepted standards in some “hotspots,” such as the industrial towns of Zagreb, Rijeka, and Split. Forest fires were the main cause of soil erosion in many parts of the country for several years. The level of erosion is particularly severe in central and coastal Istria as well as in the delta and coastline of the Neretva River. With assistance from the World Bank, Croatia has prepared a National Environmental Action Plan that was adopted by the Parliament in January 2002.

5 Environmental impacts During the preparation of EIAs, all positive and negative impacts caused by the construction of public sewerage systems are to be considered.

Direct and indirect impacts are to be analised during the preparation, construction, operation and possible decommissioning (of individual structures or the integral system), including potential ecological incidents.

Impacts on the recipient waters (coastal sea) have to be described, taking also into account the purpose of usage, particularly of those parts of the sea reserved for sports, bathing and general recreation, as well as for the farming of sea organisms.

Furthermore, impacts on the environment from individual components of the systems should be described (plants, pumping stations and similar), that may cause odors, increased noise levels, development of insects and other detrimental impacts.

Also to be taken into account is the fact that, due to the negative impact on the terrain, areas in the vicinity of wastewater treatment plants become less appropriate for housing, touristic

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and other usage. Depending upon the Physical Plan of individual communities (land usage), in some cases it will be necessary to also consider the devaluation of land in the immediate vicinity of the plant.

In cases of the reuse of treated wastewaters and/or sludge in agriculture, forestry and other activities, the benefits of such disposal of wastewater/sludge should be determined, but also possible adverse impacts on the soil, plants, animals and humans (farmers, transitees and consumers of agricultural produce).

Particular attention is to be paid to possible impacts of the final disposal of sludge and other waste from wastewater treatment plants. If the disposal of waste, including sludge, is being proposed on dumps, it should be determined whether sanitary landfills are located or are being constructed at a feasible distance from the source.

Wherever possible, positive and negative impacts shall be expressed with quantitatively.

6 Alternatives to Program In the preparation of this Program, two or more alternatives are to be analyzed for each public sewerage system.

In each case, the “construct nothing” alternative is to be considered in order to determine the environmental impact for a variant without the construction of a public sewerage system.

Furthermore, additional alternatives are to be analyzed with regard to the location of the system, particularly the plant and the wastewater outfall, the selected technological process, construction method, construction phasing, as well as costs of construction, operation and maintenance.

Within the EIA, proposed variants shall be valued according to the following criteria:

environmental impact, ecological acceptability of the proposed solution,

construction, operation and maintenance costs,

adequacy of the system in relation to local circumstances, institutional and socio-economic.

7 Mitigation measures All available and cost-effective measures that can prevent or decrease to an acceptable level the negative impacts of the subject Program have to be considered.

Environmental protection and preservation measures need to be anticipated during the preparation, construction, operation and maintenance, as well as in the case of decommissioning, of the public sewerage system. This is to include measures for the prevention and reduction of consequences of possible environmental incidents.

7.1 Sea water quality control Protection and preservation of the coastal sea water quality against pollution by wastewaters may be achieved by the selection of location and method of wastewater discharge, as well as by the selection of the appropriate wastewater treatment degree.

Depending upon the size of the developed area and the location and method of discharge, wastewater treatment degree is determined by the Rule Book on the Boundary Values of Parameters of Hazardous and other Substances in Wastewaters (NG 40/99) and the Rule

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Book on Modification and Amendments to the Rule Book on the Boundary Values of Parameters of Hazardous and other Substances in Wastewaters (NG 6/01) (see Annex 5).

The selection of the location and method of discharge of treated wastewaters should ensure the sea water quality for bathing at a distance of 200m from the lowest tide line on the coast. Sea quality for bathing is governed by the Decree on Water Quality Standards on Sea Beaches (NG 33/96).

Category III sea water quality is allowed in the immediate vicinity of the treated wastewater outfall (300 m radius). Parameters and boundary values of individual sea water parameters are determined by the Decree on Classification of Waters (NG 77/98) (see Annex 6).

7.2 Sludge disposal control Sludge from wastewater treatment plants, as well as other waste from grills, sieves, sand and grease traps, may be dumped at sanitary landfills. Sanitary landfills have to be constructed in accordance with the Rule Book on Waste Disposal Conditions (NG 123/97).

According to the Rule Book on Types of Waste (NG 27/46), appropriate treatment is called for prior to the disposal of waste at sanitary landfills.

Sludge may be reused in agriculture, forestry and similar in the form of compost or stabilised sludge, with limitations according to the Rule Book on Agricultural Soil Protection against Hazardous Substances (NG 15/92) (see Annex 7).

7.3 Odour control The development of unpleasant odours in the vicinity of pumping stations and other components of wastewater treatment plants is limited by the Decree on Recommended and Boundary Air Quality Values (NG 101/96) (Annex 8). The Decree specifies the monitoring period for which the recommended and/or boundary values are set.

7.4 Noise control Increased noise levels in the vicinity of pumping stations and other components of wastewater treatment plants are limited by the Rule Book on Highest Allowed Noise Levels in Areas where Humans Work and Dwell (NG 37/90) (Annex 9).

7.5 Requirements for industrial wastewater Industrial wastewater entering collecting systems and urban wastewater treatment plants shall be subject to such pre-treatment as is required in order to:

protect the health of staff working in collecting systems and treatment plants,

ensure that collecting systems, wastewater treatment plant and associated equipment are not damaged,

ensure that the operation of the wastewater treatment plant and the treatment of sludge are not impeded,

ensure that discharges from the treatment plants do not adversely affect the environment,

ensure that sludge can be disposed of safely in an environmentally acceptable manner.

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In the Rule Book on Boundary Values of Parameters of Hazardous and other Substances in Wastewaters (NG 40/99), as well as in the Rule Book on Modifications and Amendments to the Rule Book on Boundary Values of Parameters of Hazardous and other Substances in Wastewaters (NG 06/01), boundary values of parameters and the allowed concentrations of hazardous and other substances in technological wastewaters that are discharged in public sewerage systems are given (Annex 10).

7.6 Hazardous substances control In the Republic of Croatia the control of hazardous substances in waters is enforced based on the Rule Book on Hazardous Substances in Waters (NG 78/98).

Substances that pose a threat to the water environment are qualified by following criteria: toxicity, decomposability and bioaccumulation.

Protective measures are aimed at preventing increased concentrations of waste substances in waters or the coastal sea that exceed the allowed values, depending upon the planned usage of the coastal sea.

7.7 Requirements for wastewater reuse The Republic of Croatia has not enacted standards that would govern the reuse of treated wastewater in agriculture, forestry and other branches of the economy. In the case that within the framework of this Project the reuse of treated wastewaters is envisaged, environmental control measures specified in the Environmental Guidelines for Municipal Wastewater Reuse in the Mediterranean Region, prepared under the Mediterranean Action Plan/UNEP in cooperation with Food and Agriculture Organization of the United Nations, would be implemented (Priority Actions Programme, Regional Activity Centre, Split, April 1991).

8 Monitoring The construction and operation of public sewerage systems directly or indirectly affects the existing conditions in the environment. In principle, Public sewerage systems should contribute to the upgrading and preservation of the environment. However, certain changes in the habitat and living communities are possible, particularly in cases of substandard maintenance or incidents.

In order to continuously monitor the environmental impacts (positive and/or negative) and the efficiency of system’s operation, potential health hazards for labor operating and maintaining the system, each public sewerage system should have prepared and implemented a monitoring programme.

The monitoring programme should cover possible influences on structures of the public sewerage system, particularly the plant and the outfall, as well as on wastewater recipients. The composition and concentration of wastewater that flows into the system (plant), as well as the of treated water flowing out of the plant, should also be monitored.

Furthermore, at the plant and at larger pumping stations, the concentration of odourous substances, noise level, the composition and concentration of waste (sludge) taken from the plant should also be monitored. In the recipient of the treated water, physical and chemical parameters in the discharge zone, along the perimeter of the “fed” zone and within the area reserved for sports, recreation and/or other purposes should be tested.

Biological research of the flora and fauna in the vicinity of the plant, especially in the wastewater recipient, is essential part of the monitoring programme.

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The monitoring programme should be prepared in the way that is useful for the supervision over the efficiency of wastewater and waste (sludge) treatment and for the assessment of adequacy of prescribed environmental protection measures. Since monitoring requires certain financial means, the monitoring programme should be prepared in dependence of the size of the public sewerage system and the natural characteristics of the environment.

The monitoring programme should be prepared so that it addresses the following questions: What, Where, How, When, Why are the monitoring parameters proposed for the preparatory phase, construction, operation and possible decommissioning. Also, costs should be estimated and relevant institutions identified (see Annex 11).

Monitoring results shall be used during the public sewerage system management, for the control of adherence to prescribed protection measures and legal documents, as well as for periodic informing of the public regarding conditions of the environment.

9 Procedures

9.1 EIA Procedure for communities under 10.000 EP The following procedure shall be applied in the preparation of EIA for communities under 10.000 EP.

The investor shall request that an institution legally registered for expert services in environmental protection prepare a full-scope Study. The full-scope Study (contents as per Annex 1), with a request to execute an environmental impact assessment, shall be submitted to the relevant national institution responsible for environmental protection in the County where the project is planned.

Environmental impact assessment shall be carried out by a Commission assigned by the County President. The Commission assesses the consistency and professional soundness of the Study, may request additional explanations, and rules on whether the Study may be shown to the public. Public participation consists of having the Study exposed to the public for a period of 14 to 21 days. Public evaluation is carried out by local self-management units in which the project is located. The Environmental Management Plan of the wastewater collection, treatment and disposal project (see Annex 4) is shown to the public.

Upon the expiry of the above period, The Commission evaluates the feasibility of the project and gives a proposal on whether to accept or reject the project. The Commission submits this proposal and full documentation to the national administration institution relevant for environmental protection, which then assesses the impacts on the environment and issues a decree by which the planned project is acceptable or not for the environment.

The decree has a validity of 5 years from its issuance.

9.2 EIA Procedure for cities with over 10.000 EP The following procedure shall be applied in the preparation of EIA for communities with over 10.000 EP.

Prior to commencing work on the EIA, the investor shall inform the Ministry for Environmental Protection and Physical Planning and submit an “Information” elaborate with the following contents:

General information •

1. Main data on the investor

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2. List of expert team that has prepared the “Information”

Data on the project and its location •

1. Reason for undertaking the project

2. Description of project

3. Data on physical planning documents

4. Variant solutions of the project

5. Description of the zero state of the environment for considered variants

6. Cost estimate

Public participation

1. Description of investor’s relationship with the public prior to Study preparation

2. Presentation of the planned cooperation of Investor with the public during construction and operation of project

Based on the Information, the Ministry shall prepare the Contents of Section D in the EIA (Annex 2).

After this, the Investor undertakes the preparation of the EIA. The Environmental Impact Assessment Study may only be prepared by institutions registered for expert services in environmental protection.

The Investor submits a request to the Ministry for undertaking an assessment of environmental impacts of the proposed project. The full-scope Study is enclosed with the request. The Study is considered by the Commission for environmental impact assessment assigned by the Minister. The Commission assesses the consistency and professional soundness of the Study, may request additional explanations, and rules on whether the Study may be shown to the public.

Public participation consists of having the Study exposed to the public for a period of 7 to 21 days and a public debate. This public evaluation is carried out by local self-management units in which the project is located. The Investor has to prepare a Summary of the Study for the public, in the form that is understandable to the wider public (see Annex 2).

Answers and comments on public feedback are compiled by the author of the Study and submitted to the Commission. At a session following the public discussion, the Commission formulates a proposal of acceptance or rejection of the project.

The Commission submits the proposal and full documentation to the Ministry. The Ministry issues a decree on acceptance with the following contents:

- project’s acceptability assessment,

- environmental protection measures during preparation, construction, operation and decommissioning, including prevention and alleviation measures for incidents,

- monitoring programme for environmental conditions during preparation, construction, operation and decommissioning,

- mandatory reporting on the results of the monitoring and measures undertaken.

In the case that the proposed project is not acceptable for the environment, the decree rejection shall include:

- project’s acceptability assessment.

The decree has a validity of 5 years from its issuance.

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10 Annexes

10.1 Annex: Contents of the EIA for communities under 10.000 EP

A General Information 1 Main data on Investor and organizational structure for undertaking environmental protection

measures 2 Certification - Approval to carry out specialized works of environmental protection and

preparation of Environmental Impact Assessment Studies 3 List of Expert Team

B Summary of Study

C Data on Project and Location 1 Purpose of project 2 Legal background and international conventions 3 Description of project 4 Data on physical planning documents 5 Alternative solutions (conceptual) 6 Description of surroundings and projects zone of impact 7 Construction, operation and maintenance cost estimate

D Impact of Project 1 Possible impacts of project during construction, operation, decommissioning and in cases of

ecological incidents 2 Interactions of project with existing and planned projects 3 Risk assessment

E Project Acceptability Assessment 1 Selection of most favorable variant 2 Cost/benefit analysis for selected variant 3 Concordance of project with international commitments

F Environmental Protection Measures during Construction, Operation, Decommissioning and Incidents 1 Proposed environmental protection measures 2 Monitoring programme of environmental conditions

G Conclusion of Study 1 Explanation of most acceptable variant and its environmental impact assessment 2 Protective measures and monitoring programme

H Sources of Data

Note: It is recommended to use in the preparation of EIA existing data from oceanographic researches, as well as Guidelines for Submarine Outfall Structures for Mediterranean Small and Medium-sized Coastal Communities, UNEP (OCA)/MED WG. 89. Inf G., Athens, 1995.

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10.2 Annex: Contents of the EIA for cities with over 10.000 EP

A General Information 1 Main data on Investor and organisational structure for undertaking environmental protection

measures 2 Main data on Employer for Study preparation 3 Main data on consultant preparing Study 4 Certification - Approval to carry out specialised works of environmental protection and

preparation of Environmental Impact Assessment Studies 5 List of Expert Team: Head of Study, coordinators and consultants in individual fields

B Summary of Study

C Data on Project and Location 1 Purpose of project 2 Description of project 3 Data on physical planning documents 4 Alternative solutions (conceptual) 5 Description of zero state of environment for considered variants 6 Construction, operation and maintenance cost estimate

D Impact of Project 1 Recognition and review of possible impacts of project (variants) during preparation,

construction, operation, decommissioning/removal and ecological incidents 2 Project’s zone of impact 3 Interactions of project with existing and planned projects 4 Risk assessment, analysis and quantification

E Project Acceptability Assessment 1 Evaluation of variant solutions 2 Selection of most favorable variant 3 Cost/benefit analysis for selected variant 4 Concordance of project with international commitments

F Environmental Protection Measures and Monitoring Programme of Environmental Condition10 1 Legal background and international conventions (comments) 2 Proposed environmental protection measures 3 Monitoring programme of environmental conditions 4 Cost estimate of environmental protection measures and monitoring programme

G Public Participation 1 Description of relationships of investor and the public prior to Study preparation 2 Presentation of planned cooperation of investor with the public during construction and

operation of project

H Conclusion of Study11 1 Impact of project 2 Project acceptability assessment 3 Environmental protection measures 4 Monitoring programme

I Sources of Data12

10 during Preparation, Construction, Operation, Decommissioning and/or Removal of Project, including Prevention and Alleviation Measures after Incidents 11 refers to preparation, construction and operation, decommissioning and/or removal of project

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Contents of Summary of Study for public debate

A General Information

B Data on Project and Location

C Impact of Project

D Project Acceptability Assessment

E Environmental Protection Measures and Monitoring Programme of Environmental Condition

F Conclusion of Study13

G Sources of Data

12 Documents on physical planning and environmental protection, other planning documents, rulebooks, statistical surveys, professional and scientific papers et al. 13 refers to preparation, construction and operation, decommissioning and/or removal of project

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10.3 Annex: Assessing Sensitivity of Area In order to manage the quality of waters, among the sub-law regulations in Croatia, the Rule Book on Boundary Values of Parameters of Hazardous and other Substances in Wastewaters (NG 40/99, 6/01).

The Rule Book specifies the allowed concentrations of waste substances in discharged waters and/or the percentage of decrease in individual wastewater parameters.

The allowed values depend upon the “size of the developed area” and the “sensitivity” of the recipient. Sensitivity of the water area does not qualify the “ecological state” of a particular area of surface waters, but only expresses the properties due to which the “state of surface waters” might degrade as a consequence of discharge of waste.

The National Water Protection Plan (NN 8/99) determines three levels of water sensitivity: “very sensitive areas”, “sensitive areas” and “less sensitive areas”, as well as a special level of “particularly protected areas”. The Croatian regulations do not stipulate a procedure nor criteria for the determination of sensitivity of surface waters.

The Rule Book on Boundary Values has been prepared in accordance with the Directives of the European Community’s Council on Communal Wastewater Treatment (91/271/EEC).

Criteria for the determination of sensitive and less sensitive areas are given in the “Directions of the European Community’s Council concerning urban wastewater treatment”. This rulebook, as opposed to the Croatian, define only two levels of sensitivity: “sensitive areas” and “less sensitive areas”. In accordance with the directions of the European Community’s Council concerning urban wastewater treatment (91/271/EEC), parameters for each individual sensitive area may be proposed.

“Very sensitive areas” are: parts of water systems in which any change in the state of the habitat would cause unfavorable impact on living communities, therefore particular protective measures are required, such as for parts of nature protected by the law, and water intended for the farming of shells that are consumed raw.

According to the National Water Protection Plan, no wastewater discharge is allowed into these areas regardless of the degree of wastewater treatment

“Sensitive areas” consist of:

(a) fresh water lakes, other water systems, estuaries and parts of coastal sea, that have poor exchange of sea/water and where, due to this, accumulation of substances may occur, or that have eutrophicated or might eutrophicate in the near future, unless protective measures are undertaken;

(b) surface sweet waters used for drinking water and which might contain higher concentrations of nitrates than the allowed for water supply of the population;

(c) other water ecosystems where treatment is necessary in order to protect the environment against detrimental impact of wastewaters.

In these areas, the quantities of phosphorus and nitrogen need to be reduced, unless the environmental impact assessment does not prove that nutrients will not impact the eutrophication of water systems. Nutrient reduction particularly refers to outfalls from larger developed areas.

“Less sensitive areas” are: surface waters, especial parts of the coastal sea, for which it can be confirmed, based on morphological, hydrological and other specific conditions of currents, that wastewater discharge would not cause detrimental environmental impacts.

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These are, for instance, more open parts of coastal sea with good exchange of sea water mass, as well as watercourses without retentions. Neither eutrophication processes nor decreases in dissolved oxygen due to decomposition of organic matter are expected in these parts of water.

However, when identifying less sensitive areas, the impact of treated water discharge into peripheral zones should also be considered, in order to prevent detrimental impacts on this environment.

“Particularly protected areas” are areas in which particular water protection measures are undertaken due to catchment of drinking water or particularly valuable zones.

In the coastal sea, these are the areas that are not protected by the law but, due to morphological, oceanographical and aesthetic properties, require protection and/or represent valuable areas for the farming of living organisms.

Parts of water systems that are classified according to the criteria as “particularly protected areas” are not listed as “sensitive areas”. Some of the “particularly protected areas” are also classified as “very sensitive areas”, like:

- Limski Channel

- Malostonski Channel

For planning outfalls for treated waters, particularly important are sensitive areas. Therefore, a proposed classification of sensitive areas follows:

1 Water area of watersheds in Istria and Primorje Mirna River estuary (Mirna Port) 2 km upstream from Mirna River mouth up to the line from

Val Shallows to Zup Peninsula, Črvar Port from Bosuja Peninsula to Čivran Shallows and Zub Peninsula, Medulin Bay from Kamenjak to the south coast of Fenera Island and Levanić Shallows and

further to Marlera Peninsula, Budava Port from Culj Peninsula to Seka Peninsula, Raša Bay from Sočaja Peninsula to Ubac Peninsula, Prklog Bay from St. Martin Peninsula to Prklog Peninsula, Plomin Port from Veli Kosi Peninsula to Mašnjak Peninsula, Bakar Bay from shallows along the north coast to Oštro Peninsula, Omišalj Bay on Krk Island from Tenka Peninsula to Kijač Peninsula, Soline Bay on Krk Island from Solinji Peninsula to Glavati Peninsula, Puntarska Bay on Krk Island from the south coast of Prnila Area to Pod Stražicu Peninsula, Cres Port on Cres Island from Kovačina Peninsula to Križice Peninsula, Osor Bay on Cres Island from Škojić Peninsula to Tanki Peninsula, Lošinj Channel from Osor Passage to the line between St. Jacob’s Port to Ridulja Bay, Mali Lošinj Port on Lošinj Island and Artatun Bay from Beli Peninsula to Zabodarski

Lighthouse and Murtar Lighthouse, Supater and Kampor Bays on Rab Island from Maman shallows to Gornja Peninsula and

from Mamaha to the northwest on the opposite coast, Barbat Channel (Rab Island - Dolin Island) from Frkanj Peninsula on Rab Island to Donji

Peninsula on Dolin Island ot the north and from Školjići Rocks to Glavina Shallows to the south,

Stara Novalja Bay from Deda Peninsula to Krištofor Peninsula up to the opposite coast to the south.

2 Water area of Dalmatian watersheds Paški Bay on Pag Island from Krištofor Peninsula to the opposite coast to the south, Karin Sea, including Karin Narrows, Novigrad Sea, including Novsko Narrows and the lower flow of Zrmanja River upstream to

Obrovac, Part of Velebitski Channel from entrance to Novsko Narrows to the line between Stara Kula

Peninsula to the opposite coast over Štanga Shallows,

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Ljubočki Bay, Dinjiško Bay, Stara Povljana Bay and Ninski Bay from Ljubočki Narrows to the north from Tanka Nožica Lighthouseto the opposite coast westward, to Privlački Shallows to the south from Artić Lighthouse to Stinice Peninsula, and to the west the part of Nova Povljana Channel from Bobovik Peninsula on Vir Island to the northwestern opposite coast on Pag Island,

Široka Bay on Ist Island and Zapuntel Passage between Ist and Molat Islands, to the south from Benuš Peninsula to the Coast on Molat eastward, and to the north from Jabučki Peninsula on Issst to the opposite coast on Molat to the southeast,

Brgulje Bay on Molat Island from Bonaster Lighthouse to Tun Lighthouse, Panter Bay and Soliščica Port on Dugi Island from Bračić Rock to Borje Peninsula, Sutomiščica Bay on Ugljan Island from St. Gregory Peninsula to the opposite coast in the

direction of Zapor, Pašman Channel to the northwest from Krmčina Peninsula to the opposite coast on Pašman

Island to the west and to the southeast from Gnalić Peninsula to the opposite coast to the northwest, including Crvena Luka,

Pirovački Bay and Murter Channel to the northwest from northern peninsula on Arta Isle to the opposite coast to the north east, to the southwest from the south coast of Arta Isle to V. Vrh Peninsula on Murter Island, to the southwest from Rat on Murter Island to Obinuš M. Peninsula on the opposite coast,

Krka River estuary upstream from Prokljansko Lake up to St. Ante Channel from Jadrija Peninsula to the opposite coast,

Šibenski Channel, including Morinje Bay, to the north from St. Luce Peninsula on Prvić Island to the opposite coast to the northwest, to the west from Marin Peninsula on Zlarin Island, via Gulijala Rock to the south peninsula of Prvić Island, to the south from Rat on Zlarin Island via the south coast of Mumanja Island to Oštrica Peninsula,

Grebaštica Port from Bilo Peninsula to the opposite coast to the north, Peleš Port from Zečevo Peninsula to the opposite coast to the north, Rogoznica Bay from Gradina Peninsula to Konj Peninsula, Trogir Bay, Saldun Bay and Marinski Bay from Jelinak Peninsula to Okrug Peninsula to the

south up to Trogir Passage to the east, Kaštelanski Bay up to Trogir Passage to the west up to the line from Marjan Peninsula to

Čiovo Peninsula, Nečujam Bay on Šolta Island from Rat up to the opposite coast to the west, Milna Bay on Brač Island from Bijaka Peninsula up to the opposite coast to the west, Pučišća Bay on Brač Island from St. Nikola Peninsula up to the opposite coast to the east, Povlja Bay on Brač Island from Crni Peninsula to Tičji Peninsula, Sumartin Port on Brač Island from Sumartin Peninsula up to the opposite coast to the west, Starogradski bay on Hvar Island from Kabal Peninsula to the opposite coast to the

southwest, Vrbovska Port on Hvar Island from Glavica to the opposite coast to the south, Vis Port on Vis from Čevska Villa to the opposite coast to the northwest, Vela Luka Bay on Korčula Island from Dugi Rat Peninsula to Vranine Peninsula, Brna Bay on Korčula Island from V. Zaglav Peninsula to the opposite coast to the north, Shellfish Bay, Dominča Channel, Prvi Žal Bay on Korčula Island from Luka Peninsula to Križ

Peninsula, and the western coast of Badija Island on the north side, to the east from southestern coast of Badija Island, along the east coast of Planjak Island and Vrnik Island, and from south peninsula of Vrnik to Tatinja Peninsula in Lumbarda,

Velji Lago and Mali Lago Ports on Lastovo Island from Baške Stijene Peninsula to the opposite coast to the north, on the western side, to the north from Žvanj Peninsula to Maslovnjak Isle and further to the opposite coast to the southwest,

Lovište Port on Pelješac Peninsula from Piščata Peninsula to Ključ Peninsula, Stonski Channel on Pelješac Peninsula from Veja Peninsula to Pologrina Peninsula, Sobra Bay on Mljet Island from Pusti Peninsula to Badanj Peninsula, Šipan Bay on Šipan Island from Pod Gospom Peninsula to the opposite coast to the

northeast, Slano Port from Donij Port to Brnakovo Peninsula, Zaton Port from Bat Peninsula to Tri Brata Peninsula, Cavtat Port from Sustjepan to Rat, G. Molunat Port from Vratlo to V. Školj Isle and from the east coast of V. Školj to the opposite

coast to the northeast.

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10.4 Annex: Environmental Management Plan of the wastewater collection, treatment and disposal project14

Mitigation Plan

Cost Institutional Responsibility

Phas

e

Issue Mitigating Measure

Install Operate Install Operate

Comments

(e.g. secondary impacts)

Con

stru

ctio

n

Ope

ratio

n

Dec

omm

issi

onin

g •

14 Draft Format (DF)

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10.5 Annex: Rulebook on the Boundary Values of Parameters of Hazardous and Other Substances in Wastewater, NG No. 40/99. When assessing the efficiency of wastewater treatment, only those parameters covered by the Rule Book on the Boundary Values of Parameters of Hazardous and Other Substances in Wastewaters (NG No. 40/99 - same as in the Council Directive Concerning Urban Wastewater Treatment - 91/271/EEC) are compared with values in the Decree on Water Classification, within the 300 m radius zone. The efficiency of the degree of treatment and the submarine outfall is controlled in accordance with the Decree on Standards of Sea Quality on Beaches (NG No. 33/96) along the line 200 m away from the coast.

The wastewater treatment degree is determined in accordance with the Rule Book on the Boundary Values of Parameters of Hazardous and Other Substances in Wastewaters (NG No. 40/99). The wastewater treatment degree depends upon the size of the developed region and the sensitivity of the recipient.

The Rule Book on Modifications and Amendments to the Regulations on the Boundary Values (NG No. 6/2001) specifically determines the wastewater treatment degrees prior to discharge into sea, which are:

when discharging into the sea via submarine outfall into less sensitive areas Size of plant Treatment degree under 10.000 EP appropriate 10.000 – 50.000 EP first (I) over 50 000 EP first (I) + second (II)

when discharging into the sea via submarine outfall into sensitive areas Size of plant Treatment degree under 10.000 EP first (I) 10.000 – 50.000 EP first (I) + second (II) over 50.000 EP first (I) + second (II) + third (III)

Treatment degrees are defined in the National Water Protection Plan and in accordance with the Council Directive are as follows:

"preliminary treatment degree" is the activity and procedure by which coarse dispersed and floating waste is removed from wastewaters,

"first treatment degree" implies the implementation of physical and/or chemical wastewater treatment processes by which 50% of suspended matter is removed from wastewaters, and the BOD-5 value is reduces by at least 20% relative to the influent value,

"second treatment degree " implies the implementation of biological and/or other treatment processes by which the concentration of suspended matter and BOD-5 in the influent wastewaters is decreased by 70 to 90%, and the concentration of COD by at least 75%,

"third treatment degree" implies the implementation of physico-chemical, biological and other processes, by which the concentration of nutrients in the influent wastewaters is decreased by at least 80%, and other specific parameters of waste matter are reduced to boundaries that cannot be achieved by implementing the second treatment degree,

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"appropriate treatment degree" implies the implementation of any treatment process or discharge method by which the legally allowed values for specific parameters are achieved in the effluent and in the natural recipient,

"submarine outfall" is a hydrotechnical structure for discharging treated wastewaters into the sea at a distance from the coastal line (lowest tide) normally not less than 500 m and at the depth of over 20 m from the surface of the water in the recipient.

According with the Rule Book on Modifications and Amendments of the Regulations on Boundary Values, boundary values for particular parameters are also set as follows:

Treatment degree Parameter Boundary Value

Minimum reduction of

influent loading (%)

First (I) Total suspended matter 150 mg/l 50 Total suspended matter 35 mg/l

(over 10.000 EP) 60 mg/l

(under 10.000 EP)

90

70

Biochemical oxygen consumption BOD-5 (20oC)

25 mg O2/l (over 10.000 EP)

40 mg O2/l (under 10.000 EP)

70-90

Second (II)

Chemical oxygen consumption (COD-Cr)

125 mg O2/l (over 10.000 EP)

150 mg O2/l (under 10.000 EP)

75

Total phosphorus 2 mg P/l (10.000-100.000 EP)

1 mg P/l (over 100.000 EP)

80

Third (III)

Total organic oxygen N+NH3-N+NO2-N+NO3-N

15 mg N/l (10.000-100.000 EP)

10 mg N/l (over 100.000 EP)

70-80

The implementation of the above regulations, and the interpretation of the regulations in accordance with the conditions for specific projects, is governed by the “water legislation conditions” prior to design preparation, and by the "water legislation approval" upon the completion of the design or prior to starting the construction and, finally, by the “water legislation permit” upon the completion of the facility prior to starting the operation. All the above legislation is prepared by "Hrvatske Vode" (Croatian Waters).

Regarding the possibility to select the treatment degree when passing from 10.000 EP towards 50.000 EP. there is only the stipulation on phased construction. Namely, according to the National Water Protection Plan, when a plant-outfall is being constructed to which during Phase I 70% of the planned capacity expressed in EP is not connected, then it is allowed to implement a lower treatment degree. Since the Master Plans in Croatia in principle always count with a significant increase in the number of users of the sewerage system (population, tourists, industry), during Phase I, i.e. presently the number of users is almost always less than 70% of the planned capacity.

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10.6 Annex: The Decree on the Classification of waters, NG No. 77/98 The Decree on the Classification of Waters (National Gazette No. 77/98) refers to all surface waters (watercourses, natural lakes, accumulations and others), groundwater and the sea in relation to the protection against contamination from the land and islands.

This Decree does not refer to those parts of the sea that are not affected by contamination from the land and islands.

The quality of water is being assessed by the classification of waters and waters are categorized based on the allowed values of individual groups of parameters that characterize the sources and causes of water contamination.

These groups of parameters are:

A.

B.

C.

D.

E.

F.

G.

H.

physical-chemical

oxygen regime

nutrients

microbiological

biological

metals

organic compounds

radioactivity.

In accordance with conditions of water usage, five categories of water relate to the following criteria:

Category I Groundwater and surface waters that in their natural state or upon disinfection may be used for drinking or in the food industry, as well as surface waters that may be used for cultivating quality species of fish.

Category II Waters that in their natural state may be used for bathing and recreation, for water sports, for cultivating other species of fish or which upon appropriate treatment may be used for drinking or other industrial purposes.

Category III Waters that may be used in industries that do not have special water quality requirements, as well as in agriculture. These waters are being treated in order to be used for diverse purposes.

Category IV Waters that may be used exclusively upon treatment in regions with serious water shortage.

Category V Waters that are almost useless for any purpose, since they do not meet usage criteria as per this Decree.

The first three categories imply "good ecological water conditions", where self-purification processes are possible.

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By this Decree, based on water quality tests, the present water state is classified into categories depending upon the general ecological functions as well as water usage conditions.

By water classification, the category or planned water category is determined, by which watercourses, their parts and other waters and sea zones affected by contamination from the land, are categorized according to criteria for individual water categories. Water classification is carried out within the framework of water protection plans (national, county).

In the case of the coastal sea, it is clear that the classification is carried out only for parts of the sea affected by contamination from the land. The Decree on the classification of the remaining parts of the sea, as well as the categorization itself, should have been prepared by the Ministry for the Protection of Nature and the Environment together with the Ministry of Marine Economy, Transportation and Communications, in co-operation with the National Department for Waters, by 31 December 1999.

However, this Decree is yet to be enacted. In practice, this deficiency is resolved in the way that the zone of the sea within a 300 m radius above the diffuser is categorized as Category III. Beyond this radius into Category II. It should be pointed out that the boundary values of all groups of parameters (A-H) do not have to the same for continental waters and the sea.

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10.7 Annex: Rulebook on Agricultural Soil Protection against Hazardous Substances (NG 15/92)

Sludge and compost from sludge may be utilized on agricultural soil subject to the condition that the hazardous substances content is below the allowed boundary quantities that may be:

Cadmium (Cd) 10 mg/kg od dry matter

Mercury (Hg) 10 mg/kg od dry matter

Lead (Pb) 500 mg/kg od dry matter

Molybdenum (Mo) 20 mg/kg od dry matter

Arsenic (As) 20 mg/kg od dry matter

Cobalt (Co) 100 mg/kg od dry matter

Nickel (Ni) 100 mg/kg od dry matter

Copper (Cu) 500 mg/kg od dry matter

Chromium (Cr) 500 mg/kg od dry matter

Zinc (Zn) 2000 mg/kg od dry matter

2, 3, 7, 8 - TCDD 0,002 mg/kg od dry matter

3, 4, 3’, 4’ - TCAB 0,01 mg/kg od dry matter

PCB, PCP, HCH (total without lindane), triazine herbicides (total) HCB, heptachlorine, hydrine, aldrine and dieldrine

0,05 mg/kg od dry matter

lindane 0,1 mg/kg od dry matter

total isomeres DDT+DDD+DDE 0,5 mg/kg od dry matter

The usage of sludge and compost from sludge is not allowed: - in vineyards and orchards, - on agricultural areas used for growing berries and medicinal herbs, - on lighter sandy soil with pH values under 5, - in natural reserves and other protected areas, - in coastal and water protection areas, - on soils of karst fields, shallow and skeletal karst soil, - on water saturated soil, covered with snow and frozen agricultural land.

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10.8 Annex: Decree on Recommended and Boundary Air Quality Values (NG 101/96)

For public sewerage systems, the boundary and recommended values for parameters are given for the monitoring period of one year:

- ammonia recommended 30 µg/m3 boundary 70 µg/m3

- sulfuric hydrogen recommended 30 µg/m3 boundary 2 µg/m3

- Mercaptans recommended 30 µg/m3 boundary 1 µg/m3

The specified values do not refer to the areas in which humans professionally carry out activities and in carrying out these activities are exposed to hazardous substances in the air.

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10.9 Annex: Standards for industrial wastewater disposal (NG No. 40/99, 6/01) PARAMETERS AND SUBSTANCES DISCCHARGE INTO PUBLIC SEWERAGE

SYSTEMS

1. pH 5,0-9,5 2. Temperature °C 45 2a. ∆t °C, not more than : - 3. Color 4. Odor detected 5. Large substances without 6. Settleable substances ml/lh 20 7. Total suspended substances mg/l should not impact sewerage system nor

treatment plant 8. BOD5 mgO2/l 250 9. CODCr mgO2/l 700 10. Total organic carbon (TOC) mgC/l - 11. Toxicity (on fish or ??, GF 3 11a. Biological decomposition (DOC) or COD % at least 70 12. Aluminum mg/l 4,0 13. Arsenic mg/l 0,5 14. Copper mg/l 0,5 15. Barium mg/l 5,0 16. Boron mg/l 4,0 17. Zinc mg/l 2,0 18. Cobalt mg/l 2,0 19. Tin mg/l 2,0 20. Chrome total mg/l 2,0 21. Chrome6+ mg/l 0,2 22. Manganese mg/l 4,0 23. Nickel mg/l 2,0 24. Lead mg/l 2,0 25. Selenium mg/l 0,1 26. Silver mg/l 0,5 27. Iron mg/l 10,0 28. Vanadium mg/l 0,1 29. Total phenols mg/l 10,0 30. Fluorides mg/l 12,0 31. Sulfites mg/l 10,0 32. Sulfides mg/l 1,0 33. Sulfates mg/l 400 34. Chlorides mg/l 1000 35. Total Phosphorus mgP/l 10,0 36. Active chlorine Cl2 mg/l 0,3 37. Orthophosphates mgP/l - 38. Ammonium ion mgN/l - 39. Nitrites mgN/l 10,0 40. Nitrates mgN/l - 41. Total nitrogen mgN/l - 42. Mineral oils mg/l 30,00 43. Total oil and grease mg/l 100 44. Aldehydes mg/l 2,0 45. Total ar. hydrocarbons mg/l 0,2

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PARAMETERS AND SUBSTANCES DISCCHARGE INTO PUBLIC SEWERAGE SYSTEMS

46. Total nitrated hydrocarbons mg/l 0,1 47. Total halogen. hydrocarbons mg/l 1,0 48. Total organic-phosphoric pesticides mg/l 0,1 49. Total organic-chlorine pesticides mg/l 0,05 50. Total active substances area mg/l 20,0 51. Detergents, anionic mg/l 10,0 52. Detergents, non-ionic mg/l 10,0 53. Detergents, cationic mg/l 5,0 54. Total Beta radioactivity mBq/l 2000

In the case that industrial wastewaters are discharged directly into a natural recipient, the subject Rule Book stipulates more strict boundary values for parameters of waste.

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10.10 Annex: Monitoring Plan

What Where How When Why Cost Institutional Responsibility

Phas

e

para

met

er is

to b

e m

onito

red?

is th

e pa

ram

eter

to b

e m

onito

red?

is th

e pa

ram

eter

to b

e m

onito

red/

type

of

mon

itorin

g eq

uipm

ent?

is th

e pa

ram

eter

to b

e m

onito

red-

ency

of

mea

sure

men

t or

cont

inuo

s?

is t

he p

aram

eter

to

be

mon

itore

d (o

ptio

nal)?

Install

Operate

Install

Operate

Base

line

Con

stru

ct

Ope

rate

Dec

omm

issi

on

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Chapter 2 Social

Assessment15

The objectives of the Coastal Cities Pollution Control Project is the improvement of the wastewater collection and treatment status in general through investments into the institutional improvements as well as into the construction of the public wastewater collection and treatment facilities. For these reasons it can be expected that some aspects of project implementation include certain social risks, which can influence the project implementation efficiency.

In order to anticipate possible social risks and to prevent their negative impact the Coastal Cities Pollution Control Project – Institutional, Financial and Social Analysis has been carried out. The assessment consist of two components:

Institutional and financial analysis

Site specific social assessments.

The results of the study, performed by the consultant Target Ltd. in the period September to December 2003 are given in the separate volumes – research Reports, submitted to Hrvatske vode and IBRD at December 8, 2003.

The proposed methodologies are given as separate chapters in each volume and as a separate volume: Coastal Cities Pollution Control Project – Institutional, Financial and Social Analysis – Methodological Suggestions.

For more detailed information, please refer to document: "Coastal Cities Pollution Control Project – Institutional, Financial and Social Analysis", TARGET Ltd, Zagreb, Croatia, November 2003.

15 Chapter 2 Social Assessment is elaborated in the "Coastal Cities Pollution Control Project – Institutional, Financial and Social Analysis" by the consultant TARGET Ltd.

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Chapter 3 Land

Acquisition - Resettlement

1 Introduction Specific sites for investment under the Croatia Coastal Cities Pollution Control Project are not known in advance. Rather, they will be determined during implementation, based on requests from municipalities, subject to financial, environmental and social assessment. It is expected that in each case the installation of wastewater and sewage conveyance and treatment facilities will entail land acquisition. The land will be acquired for rights-of way for the collector network, including sewer lines, connecting points, manholes and tunnels and, in some cases, larger tracts for pumping stations, treatment facilities and conveyance and outfall pints. It is possible, but highly unlikely, that private residence and structures will be affected, either temporarily or permanently, causing relocation of residents. The land acquisition and resettlement caused by the project will be carried out following well-established procedures specified in Croatian laws and Statutes relating to purchase and expropriation, which comply with World Bank Operational Policy (OP) 4.12 and Bank Procedures (BP) 4.12. These procedures are specified in the Program Operational Manual, which also provides detailed instructions regarding documentation and impact assessment.

For each investment, application documentation will include a Land Acquisition Plan for the specific site, which describes steps taken prior to the application and outlines specific steps to be taken during preparation and implementation to assure compliance with Obligations Act, the Expropriation Act (published in the Croatian Official Gazette, Narodne Novine, 9/94, 35/94, 112/00, 114/01) , General Administrative Procedure Act and OP/BP 4.12.

2 General Principle All possible steps must be taken to avoid or minimize land acquisition and relocation. This can be done by keeping the alignment on public property (Republic, county or municipal or any of their agencies or companies), remaining within existing rights of way, avoiding structures if possible, and following plot boundaries to avoid traversing plots.

References to the “MWSC” in the following text apply to the local Municipal Water and Sewerage Company that manages or will manage the assets in which there will be an investment through the project or an entity contracted to act on behalf of the MWSC. References to the “SPSC” apply to HV Special Purpose Subsidiary Company as implementing entity for the Project

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3 Actions When a provisional alignment of system elements has been selected or proposed, that affects the private property.

1. The MWSC will post a public announcement in the most accessible newspaper or a bulletin board that citizens regularly consult.

2. The MWSC will organize and hold a public hearing to discuss the selected option, procedures and schedule for continuing work, and to answer questions about related issues of interest to citizens.

3. The MWSC will prepare minutes of the hearing, with a complete record of issues raised, the responses offered and agreed follow-up steps SPSC.

4. The MWSC will inform individual landholders about the plan to expropriate land, indicating the plot, the amount of land to be taken, the procedures to be followed for carrying out the process, including an estimated timetable and details about the appeal rights of landowners, in easy to understand language.

If the acquisition only affects land, surface assets (standing crops, productive trees, etc) on private property and non-inhabited structures on private property:

1. The MWSC will assess the value of land and other assets of each parcel to be affected.

2. The MWSC makes a land acquisition/resettlement plan, which lists each parcel to be affected, the amount of the parcel to be expropriated and the amount of compensation to be offered to the landowner.

3. The MWSC contacts each owner and make an offer to purchase the land and assets, subject to negotiation.

4. If the owner of the lands to be completely expropriated does not have the economic interest in using the unexpropriated portion of the lands, as defined under the court and administrative practice in Croatia, he has the right to request the MWSC to expropriate the remainder of the parcel, at the same compensation rate as the designated parcel.

5. If negotiations are successful, the MWSC and the landowner sign a contract, the MWSC then pays the landowner and processes documentation to transfer ownership to the MWSC. Once the title has been transferred and registered, civil works can proceed.

6. If negotiations are not successful, the landowner can appeal to the Government Office for the Rights of Property – local branches (GORPs) to challenge either the price being offered or the amount of land to be expropriated.

7. The GORPs will commission an independent assessment of the value of the land and assets, and render a Decision.

8. If the landowner accepts the Decision, the decision sets the terms for a contract between the MWSC and the landowner; the two parties sign the contract; the MWSC pays the owner; and the MWSC processes documentation to transfer ownership to the MWSC. Once the owner has been paid and the land is transferred and registered, civil works can proceed.

9. If the landowner does not accept the Decision, the landowner has 15 days after the Decision in which to file an appeal to the Ministry of Justice.

10. The Ministry of Justice renders a Decision, which is final. The Decision becomes the basis for a contract between the MWSC and the landowner; both parties sign the contract; the

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landowner is paid the amount stipulated in the Decision; and the MWSC processes documentation to transfer ownership to the MWSC. Once the title has been transferred and registered, civil works can proceed.

If the expropriation also includes - requires the demolition of inhabited buildings:

1. If the expropriation requires the demolition of inhabited buildings, or the remaining land around an inhabited building is too small to enable existing inhabitants to carry on their daily lives conveniently, the MWSC must give the landowner a choice either to:

2. Receive compensation for the inhabited building and remaining land at fair market value; or

3. Receive another inhabitation , acceptable to the landowner, in exchange for the building to be vacated, as well as receive compensation for the land and other assets, excluding the value of the building.

If the landowner chooses to be compensated for the inhabited building and vacate the building, the MWSC and landowner negotiate a fair and acceptable price for the building, the land and other assets to be lost.

4. If negotiations are successful, the MWSC and the landowner sign a contract, the MWSC then pays the landowner and processes documentation to transfer ownership to the MWSC. Once the title has been transferred and registered, civil works can proceed.

5. The MWSC pays the moving costs for the landowner to vacate the building and settle elsewhere or offers the landowner a reasonable sum that will cover the costs of moving, which the landowner arranges.

6. If negotiations are not successful, the landowner can appeal to the GORPs to challenge either the price being offered or the amount of land to be expropriated.

7. The GORP will commission an independent assessment of the value of the land and assets, and render a Decision.

8. If the landowner accepts the Decision, the decision sets the terms for a contract between the MWSC and the landowner; the two parties sign the contract; the MWSC pays the owner; and the MWSC processes documentation to transfer ownership to the MWSC. Once the owner has been paid and the land is transferred and registered, civil works can proceed.

9. If the landowner does not accept the Decision, the landowner has 15 days after the Decision in which to file an appeal to the Ministry of Justice.

10. The Ministry of Justice renders a Decision, which is final. The Decision becomes the basis for a contract between the MWSC and the landowner; both parties sign the contract; the landowner is paid the amount stipulated in the Decision; and the MWSC processes documentation to transfer ownership to the MWSC.

11. The MWSC and inhabitants agree on a mutually acceptable deadline to vacate the premises. The MWSC pays the moving costs for the landowner to vacate the building and settle elsewhere or offers the landowner a reasonable sum that will cover the costs of moving, which the landowner arranges.

12. Once the title has been transferred and registered, the inhabitants have been given adequate time arrange a move and the inhabitants have moved satisfactorily, the building can be demolished and civil works can proceed.

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If the landowner chooses to receive alternative housing in exchange for the building to be vacated, the MWSC works with the landowner to locate and purchase an acceptable replacement.

1. The MWSC and landowner agree on the size of the housing to be made available, as well as a reasonable cost range, per square meter, including the commissions of real estate agents, if applicable. The two parties also agree on the process through which the housing will be located and purchased, and the relative roles of each in the process.

2. Once housing has been secured that is acceptable to the landowner and within the agreed parameters, the MWSC will purchase the inhabitation and transfer ownership to the new owner.

3. The MWSC compensate the landowner for the land to be expropriated, as well as surface assets that will be lost.

4. The MWSC and inhabitants agree on a mutually acceptable deadline to vacate the premises. The MWSC pays the moving costs for the landowner to vacate the building and settle elsewhere or offers the landowner a reasonable sum that will cover the costs of moving, which the landowner arranges.

5. Once the title has been transferred and registered, the inhabitants have been given adequate time arrange a move and the inhabitants have moved satisfactorily, the building can be demolished and civil works can proceed.

If the owner of the land to be expropriated cannot be identified or ownership is being disputed by one or more parties:

1. The MWSC submits documentation to the GORPs regarding the basis for uncertainty of ownership, as well as the assessed valuation of the land and other assets.

2. The GORPs renders a Decision to confirm the expropriation and establish a compensation level.

3. The MWSC places the agreed compensation in an interest-bearing escrow account to be released when the owner is located or the dispute is resolved.

4. The MWSC processes documentation to transfer ownership to the MWSC and registers the title and transfer. Once payment has been made to the escrow account and ownership is transferred, civil works can proceed.

4 Reporting When the parcels to be expropriated are identified and values are assessed (step 6), the MWSC submits a land acquisition/resettlement plan to the SPSC, which includes the following:

an estimate of the amount of land that will be acquired, the number of owners, if available,

breakdown of: (i) freely acquired lands (ii) lands subject to Complete Expropriation and (iii) lands subject to Incomplete Expropriation,

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breakdown showing the percentage of each affected parcel that will be subject to Complete Expropriation (to the extent available), and

any substantial assets to be affected, such as homes or structures; and designation of people and entities responsible for implementing the land acquisition program and lines of authority.

The MWSC reports semi – annually on the status of land acquisition, providing updated information in an additional column regarding the final price paid to the landowners.

The MWSC reports semi – annually on the status of resettlement/displacement, indicating the choices made by affected households and progress in completing the acquisition, substitution, if relevant, and resettlement.

5 Annex A: The Expropriation Act If not regulated by a separate law, real property may be expropriated when necessary for construction of facilities or carrying out the works in the interest of the Republic of Croatia and when it is deemed that real property to be proposed for expropriation will provide higher benefit when used for other purposes than the benefits resulting from the use of the said real property in the present way. Real property may be expropriated because of construction works or building of economic infrastructure facilities (traffic, telecommunication, water management, energy), health, educational or cultural facilities, industrial, energy, traffic and telecommunications facilities, facilities to be used by Croatian judiciary system, the military and the police, as well as for exploration and exploitation of minerals and other natural resources.

The expropriation procedure must be carried out within two years from the date the interest of the Republic of Croatia has been established.

It shall be carried out after settlement negotiations have proved unsuccessful.

5.1 Expropriation procedure The expropriation proposal may be submitted by the expropriation beneficiary (condemner) only after the interest of the Republic of Croatia, as regards the construction of facilities or carrying out the works, has been established by virtue of the provisions of this or another act.

Prior to submitting the expropriation proposal, the expropriation beneficiary shall be obligated to provide, through a competent body, the evidence of the state and the value of the real property for which expropriation is being sought (findings and opinion of experts etc).

The proposal for expropriation of real property must include the designation of: 1. the expropriation beneficiary, 2. the real property proposed for expropriation, 3. the owner and possessor of real property for which expropriation is sought, including his address or seat, 4. the facility or works that are the reason for the expropriation proposal.

The expropriation proposal must be submitted together with:

1. the proof that the beneficiary of the expropriation has tried to resolve the question of acquiring the ownership rights through a negotiated settlement with the owner of a given real property (written offer, public announcement etc),

2. an extract from the land-register books or other public registers in which the ownership of real property is entered and which keep the data on the real property for which expropriation is sought, or cadastral and other data if such books do not exist or the situation on the books does not reflect the actual possession,

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3. an extract from the possession document, 4. the proof of established interest of the Republic in building facilities or carrying out

the works on that particular real property, 5. the evidence of the state and the value of real property for which expropriation is

sought (findings and opinion of experts, etc.), 6. the proof that the expropriation beneficiary has secured and deposited in a bank

funds approximately necessary for compensation for the expropriated real property and the costs of the procedure, or the proof of having secured another appropriate real property,

7. the physical planning terms or the expropriation plan for building facilities or for carrying out the works for which expropriation is sought.

Pursuant to the expropriation proposal, an entry shall be made ex officio in land-register or other public register, denoting the expropriation procedure; the competent body shall notify the owner of the real property in writing.

In the first instance, the Government Office responsible for the Rights of Property (GORPs) or the office of the City of Zagreb responsible for Rights of Property (hereinafter referred to as the Government Office or GORPs) shall have the jurisdiction; in the second instance, the Ministry responsible for Justice, Administration and Local Self-Government shall decide.

The expropriation order shall be issued by the government office within whose territorial jurisdiction real property proposed for expropriation falls. Prior to issuing the expropriation order, the Government Office must inform the owner of real property about his right to file a request for the expropriation of the remaining portion of real property.

The order which upholds the expropriation proposal shall comprise, inter alia:

1. the designation of the act by virtue of which the interest of the Republic of Croatia has been established,

2. the designation of the expropriation beneficiary, 3. the description of real property to be expropriated, accompanied by land-register

data or cadastral data if real property has not been entered into the land-register or other public register or it does not exist,

4. the designation of the owner and the possessor of the expropriated real property and his address or seat,

5. the description of facility or works which are the reason for expropriation, 6. the obligation of the real property owner to transfer it into possession as well as the

deadline for transfer into possession, 7. the obligation of the expropriation beneficiary regarding the compensation for

expropriated real property: a detailed description of an appropriate real property or the cash amount that reflects the market value with the deadline for transfer into possession or payment, which may be no more than 15 days after the expropriation order has become final, or announcement of settlement if one has been reached,

8. the obligation of the expropriation beneficiary to pay legal penalty interest, accrued from the date of the issuance of the expropriation order in the first instance to the date of payment.

An appeal may be filed against the order of the Government Office within 15 days. The appeal shall be adjudicated by the Ministry of Justice, Administration and Local Self-Government.

An appeal may be filed against the second-instance order with the local County Court (within 30 days from the receipt of the second-instance order). The appeal shall be adjudicated by a Panel of the County Court in open hearings. The decision of the Panel cannot be appealed or revised.

The expropriation beneficiary shall assume the right of possession of the expropriated property on the day the expropriation order has become final, provided he has by then compensated the previous owner.

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5.2 Costs and compensations The costs of the expropriation procedure shall be borne by the expropriation beneficiary, except for the costs incurred during the appeal of the real property owner that has not been upheld.

Upon request of the previous owner of the expropriated real property, the final expropriation order shall be revoked if, within two years from the day on which the order has become final or from the day the possession was assumed, the expropriation beneficiary does not begin building the facility or carrying out the works for which real property was expropriated.

The compensation for the expropriated real property shall, as a rule, be paid in the form of another appropriate real property whose value is comparable to the market value of the expropriated real property in the same County or city, ensuring that the owner of the expropriated real property can exercise the same usage rights as for the expropriated real property. If the owner of the expropriated real property refuses to accept another appropriate real property as compensation, or if the expropriation beneficiary cannot offer such property, the compensation, in the amount of the market value of real property, shall be paid in cash.

If real property is burdened by servitude, the compensation shall be adjusted to reflect the lower market value of real property due to servitude.

If real property is under lease, the compensation shall be equal to the rent that can be realized in the market.

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Chapter 4 Cultural Assets

1 Introduction Specific sites for investment under the Croatia Coastal Cities Pollution Control Project are not known in advance and will be determined during implementation, based on requests from municipalities, subject to financial, environmental and social assessment. It is expected that in some rare cases the installation of wastewater and sewage conveyance and treatment facilities may have an impact on cultural assets. In those cases potential direct or indirect impact to cultural heritage as a part of the standard screening procedure should be assess.

2 Activities

2.1 When the alignment of system elements is determined, or proposed:

Action:

The SPSC (Special Purpose Subsidiary Company of HV, the implementing agency) and the MWSC (Municipal Water and Sewerage Company) submit drawings of proposed alignment to the nearest branch office of the Cultural Heritage Protection Institute (the Institute) and Art Conservation Department of the Ministry of Culture (the Ministry) to determine whether or not the alignment will affect a recognized cultural asset or passes through or over an unexplored archaeological site. The Institute and the Ministry will determine whether any assets are already entered in the Registry of Cultural Goods of the Republic of Croatia or should be entered in the Registry. The MWSC will inform the SPSC of the outcome of the submission and subsequent steps.

Follow-Up:

A If the alignment will negatively affect a an asset that is included in the Registry of Cultural Goods of the Republic of Croatia and/or critical elements of its environment, the MWSC and SPSC will revise the alignment to bypass the asset.

B If the Institute and/or Ministry determines that there are no assets that would be affected by the proposed alignment there is no obvious impact on cultural assets, the MWSC and SPSC will proceed with final drawings for the alignment.

C If the Institute and/or the Ministry anticipates that the alignment may uncover assets that would be of historic or cultural interest, the MWSC will mark potential sites on drawings and the SPSC will insert wording in contracts for works to advise the contractor to be aware of these sites.

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2.2 During Construction If artifacts or historical structures appear as chance finds during construction, or laying of pipes, etc.

Action:

1. The contractor will stop work immediately and inform the SPSC.

2. The MWSC will contact the nearest Institute branch office and the Ministry branch office to advise specialists of the finding. Specialists in the Institute will determine whether or not the find is important and, if so, if the site should be protected or should be excavated. The SPSC will inform the Bank of the decision and subsequent actions taken to comply with it.

Follow-Up:

A If the Institute and/or the Ministry determines that the chance find is important and must be protected and entered in the Registry of Cultural Goods of the Republic of Croatia, the MWSC and SPSC will change the alignment to bypass the site.

B If the Institute and/or the Ministry determines that the chance find is potentially important, but can be excavated and moved to another site, the SPSC will authorize work to continue after the asset is excavated and moved.

C If the Institute and/or the Ministry determines that the chance find is potentially important, and can be excavated and moved to another site, but the SPSC determines that the time required for excavation is too long and/or the outcome of excavation is too uncertain, the SPSC and MWSC will revise the alignment to bypass the site.

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Chapter 5 International

waters

1 Introduction The Project relates to the Adriatic Sea, which is an international waterway. As such the Project is subject to the Operational Policy, which seeks to ensure that the Project also complies with any applicable agreements or arrangements involving the riparian states.

In accordance with the Croatian regulations the procedure is as follows:

PIU or Agency responsible for project preparation and implementation prepares the Project Report to be attached to the letter and sends it to the State Water Directorate;

The State Water Directorate confirms the international status of Project proposal and it's general compliance with the existing international obligations of Republic of Croatia in the "water sector" and submits the proposal to Ministry of International Affairs.

Ministry of International Affairs will officially notify the relevant countries.

The draft versions of the letter as well as the draft proposal of the project description to be considered by State Water Directorate are given in Annex.

2 Annexes

2.1 Letter – draft text Re: Republic of Croatia –Coastal Cities Pollution Control Project

Dear Mr. Minister,

The Adriatic coast is one of the most important "resources" of Republic of Croatia, which generates considerable portion of national income. In order to preserve the good quality of this valuable resource Hrvatske vode – national agency for water management prepared the long – term Program for municipal infrastructure development of the coastal region. With respect to the complexity and wide scope of the Program, the Ministry of Public Works, Reconstruction and Construction and Hrvatske vode, with the support of the State Water Directorate have proposed to the Government of Croatia to accept Coastal Cities Pollution Control Project (1st phase of the implementation of the Program) as a national priority project.

The International Bank for Reconstruction and Development has proposed to the Republic of Croatia a loan for financing of improvement of systems for collection, transport and treatment of municipal wastewater in the communities along the Adriatic Coast and on the islands, i.e. financial support to implementation of the program titled Coastal Cities Pollution Control Project. This Project, which includes construction / modernization / reconstruction and improvement of sewerage and waste water treatment, is planned to be implemented on

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the principle of active participation of local authorities, in co-operation with corresponding government agencies.

The main objective of the Project is to decrease the environmental impact of municipal wastewater discharges on the global significant coastal ecosystems and the quality of Croatian's Adriatic waters, and coastal sea. The Project would contribute to increase global environmental benefits by: (i) reducing sewage pollution loads generated by urban settlement areas of approximately 50 coastal cities and (ii) improving of the monitoring system of Adriatic sea. The Project Implementation Unit (PIU), would have overall technical responsibility and specific financial responsibilities for Project implementation.

The Project relates to the Adriatic Sea, which is an international waterway and for the purposes of the World Bank’s Operational Policy on Projects on International Waterways (OP 7.50) (the Operational Policy), enclosed at attachment 1 to this letter. As such the Project is subject to the Operational Policy, which seeks to ensure that the Project also complies with any applicable agreements or arrangements involving the riparian states.

A careful assessment of the project scope and impact leads to the conclusion that the Project (i) would only positively affect the quality or quantity of water discharged into the Adriatic Sea; and (ii) would only be positively affected by the other riparians’ water use. In that respect, the project is in compliance with the Barcelona Convention16 (in particular, Articles 4.2, para (a), and 11 of the Convention).

Although we do not anticipate that the Project will have any negative impact on the quality or quantity of water of the Adriatic Sea, we hereby notify your Government, as a riparian of the above waterway, of relevant details for the proposed Project, pursuant to paragraph 4 of aforesaid. Operational Policy. We enclose as Attachment 2 to this letter, a description of the Project, including the description of its objectives and components, and the activities to be carried out during Project implementation.

Given the urgent nature of the proposed activities and their importance to the intended project beneficiaries, the Government of Croatia would like to finalize Project preparation as quickly as possible. We would, therefore, appreciate receiving any comments you have no later than January 15, 2004.

Sincerely,

___________________ Signiture

2.2 Project report – draft attachment to letter GENERAL INFORMATION AND PROGRAM OBJECTIVES

The Adriatic coast is one of the most important "resources" of Republic of Croatia, which generates considerable portion of national income. Except for a few isolated spots, the environment is still capable to mitigate the negative impact of economic activities. However, the results of monitoring indicate that system is becoming more sensitive and probably close to the edge of its receiving capacity. On the other hand, the development of the region rely upon the fact that the Adriatic coast is and will be healthy environment for living and

16 Convention for the Protection Of the Mediterranean Sea Against Pollution, signed 16 February 1976, and revised in Barcelona, Spain, of 10 June 1995 as the Convention for the Protection of the Marine Environment and the Coastal Region of the Mditerranean.

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relaxation and assumes intensification of economical activities especially tourism, shipyards and fishery. The investment in expansion of touristic capacities will surely be followed with development of transportation, agriculture and trading, as well as with intensifying of real estate investments. Therefore and with respect to the complexity and wide scope of Program, the Ministry of Public Works, Reconstruction and Construction and Hrvatske vode, with the support of the State Water Directorate and Ministry of Environmental Protection and Physical Planning have proposed to the Government of Croatia to accept Coastal Cities Pollution Control Project as a project of the national priority level.

The general objective of the Program are:

to preserve and to protect the existing environment before the permanent damage to the quality of environment can be done, to provide the basis for safe and environmentally acceptable economy development, and to improve the existing quality of the environment.

In order to achieve these goals this Program will give technical and financial support to all activities streamed into improvement of efficiency of water quality protection and water pollution control sector such as:

construction of the wastewater collection and treatment facilities, regulatory and institutional strengthening development of monitoring promoting active public involvement mobilizing joint technical, professional and financial resources on a local and national level.

In general, the Program is of a long-term nature, and first phase activities that will be supported by the World Bank. Project should be used as beginning of the long-term commitment to continuous, well planed, self supported, socially and economically acceptable investment into environment protection.

PROGRAM SCOPE

The Program activities are systematized in 4 general groups:

Investments in waste water collection and treatment facilities; Investments in improvement of efficiency of municipal services; Investment in monitoring of Program implementation and efficiency and Investments in improvement of regulatory and institutional framework of the sector.

GEOGRPAPHIC BOUNDARIES

For the purpose of this Program's realization «costal area» is defined as region (till the boundaries of the corresponding municipality), where waste waters are drainage, i.e. disposed directly into the sea. Exceptions are several areas, which are considered as extremely nature value regions (national parks) or they have indirect influence on the particular sensitive area.

PROGRAM IMPLEMENTATION

The Program, as a whole, is a part of regular activities carried by Hrvatske vode as regards water resources planning and management (responsibilities of Hrvatske vode). Therefore, organizing, implementation and monitoring of the progress, as well as adjustment of the Program to current and future objectives and plans of water quality management shall be the responsibility of Hrvatske vode.

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PROJECT

Out of the total of 177 identified systems, at the moment Project comprising 47 sub-projects has been proposed for implementation.

Technical Aspects of the Proposed Project

Construction of Sewerage and Wastewater Treatment Systems

Technical indices of the expected effects of selected sub-projects are shown in the following table.

Total project under

implementation

selected sub-

projects

not considered

number of systems 177 9 47 121 inh 1.133.891 435.258 308.981 389.652 number of inhabitants / ES that are

planned to be included into system ES 3.244.600 773.000 1.224.800 1.246.800 inh 443.011 229.096 69.913 144.002 existing number of inhabitants connected

to the system (temporary status of the system – partial solution)

ES 1.546.050 286.500 427.000 832.550

inh 238.315 152.173 86.142 0 increase of connection rate after the finalization of the proposed construction ES 864.350 382.500 481.850 0

inh 681.326 381.269 156.055 144.002 total number of connected after the finalization of the proposed construction ES 2.410.400 669.000 908.850 832.550

inh 54% 66% 123% 0% increase compared to existing status (temporary - partial solutions) ES 56% 134% 113% 0%

inh 21% 35% 28% 0% increase compared to number of inhabitants / ES that are planned to be included into system

ES 27% 49% 39% 0%

It may be noticed that by construction of the proposed sub-projects more results will be achieved in the sense of treatment and discharging of treated wastewater than in connecting of population to sewerage systems.

Monitoring

With regard to the need for comprehensive development of sea monitoring, as well as for establishing of efficient internal and external control of Program implementation, the following activities are proposed for this phase of Program implementation:

preparing of the complete Analysis of Sea Monitoring carrying out all necessary works and equipment procurement for establishing of external monitoring, and realization of one half of the planned activities in procurement of equipment and works essential for implementation of internal monitoring (one half of the scope).

The rest of the planned activities would be carried out during the next phase of Program implementation.

Financial aspect of the project

Investment costs

Costs of construction of sewerage and wastewater treatment systems

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The total costs of construction of the proposed projects are estimated to HRK 1,622,000,000. As construction is proposed for systems with a higher level of elaboration of technical documentation, the construction cost estimates are more realistic than for othr projects under the Program. The total amount of estimated costs is given in the table in the Annex, while detailed explanation of costs for each sub-project is given in the Catalogue of projects.

Costs of monitoring

In relation to the planned amounts given in section 3.2 the costs of introducing of monitoring in this phase of Program implementation would be about EUR 9 million, out of which EUR 3,5 million would be spent for procurement of equipment and reconstruction of the regional laboratory premises, and about EUR 2 million for preparation of the Analysis of Sea Monitoring.

Sources of Financing

In accordance with the preliminary agreements, the participants in financing of the projects would be:

The Government of the Republic of Croatia – budget funds Hrvatske vode – water pollution charge Local administration units with municipal companies – budget funds and surcharge for sewerage and waste water treatment on the water tariff.

With regard to the importance and scope of the Program, it is expected that the funds for covering of the costs of introduction of monitoring will be provided through international grants, and through direct borrowing by the institutions in charge of these activities (Ministry of Environment and Physical Planning, and Hrvatske vode).

Criteria for determining of financing ratios

Each project will be financed from loan proceeds up to 50 % of the costs (which is the maximum participation of the loan in financing, according to the World Bank conditions). On the basis of the estimated liability under the loan, the amount – part of the water tariff ensuring loan repayment was calculated. The amount collected on this basis during the construction period is invested in construction, and the rest of the construction costs is covered from the budget. The share of the National Budget is limited to 10 % on projects larger than 20,000 inhabitants, as well as on systems where the costs are considerably higher than on other locations, provided these are not particularly protected areas (national parks, closed and sensitive aquatories, and sea of Category I quality). The maximum tariff increase that can be allocated to the population is limited to 4 HRK/m3 of water consumed. In case of particularly protected areas (national parks, closed and sensitive aquatories, sea of Category I quality), if application of the above criteria shows that, in order to service the debt, it is necessary to increase the water tariff by more than 4 HRK/m3, it is proposed that the municipal company accept the tariff increase of 4 HRK/m3, and the remaining part of liabilities under the loan would be subsidized by Hrvatske vode (on the solidarity principle, and with the assistance of Budget funds). In accordance with the above criteria, the participation of each source of financing in the Project was calculated. During the construction period, the financing ratios are:

mill. HRKCONSTRUCTION COSTS loan 811,334Local governments 315,777Hrvatske vode 141,830Republic of Croatia 353,727Total construction costs 1.622,668

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mill. HRKMONITORING COSTS – to be applied for (donations) amount to be allocated to Ministry of environment and physical planning 37,500amount to be allocated to Hrvatske vode 30,000Total estimated monitoring costs 67,000 TOTAL DURING CONSTRUCTION 1.689,668

IMPLEMENTATION

The decision on final acceptance of each individual sub-project shall be confirmed by an Agreement signed by the main participants in financing:

The Government of the Republic of Croatia – Ministry of Finance, Ministry of Public Works, Reconstruction and Construction, Hrvatske vode Units of local administration covered by the system to be financed.

The Project will be implemented by Hrvatske vode which is responsible for and in charge of organization and monitoring of the project implementation, and the principal partner in negotiations and reporting to the Government of the Republic of Croatia and to the World Bank and/or other development banks and donors. Hrvatske vode shall act as the coordinator in project implementation through its sub-teams responsible for project management and monitoring in:

the area of Istria and the Croatian Littoral, and in the area of Dalmatia,

which is in full accordance with the existing organizational structure of water management in Croatia.

In relation to the status of development of the municipal sector, direct implementation of project construction would be performed in the framework of municipal companies which have sufficient business, professional and organizational capacity to manage the investment. In the areas that do not meet the above conditions, Hrvatske vode shall, in co-operation with units of local administration (or without them) organize an agency which will take direct responsibility for implementation of the Project and, after commissioning and obtaining of the approval to use, continue to manage the facility. If required, Hrvatske vode – Project Implementation Unit may during project implementation also employ other firms for a part of professional services.

Direct control over Program implementation would be exercised by the Government of the Republic of Croatia, through the Ministry of Public Works, Reconstruction and Construction, the Ministry of Environment and Physical Planning, by the State Water Directorate and by representatives of local administration.

The responsibility for the monitoring program (external) should be with the Ministry of Environment and Physical Planning, while internal monitoring would be performed as a separate, detailed part of regular monitoring carried out by Hrvatske vode in the framework of its responsibilities, with direct supervision by the State Water Directorate.

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3 Attachments

3.1 WB BP 7.50 (June 2001) BP 7.50

June 2001

These procedures were prepared for use by World Bank staff and are not necessarily a complete treatment of the subject.

Projects on International Waterways 1. A potential international water rights issue is assessed as early as possible during project identification1 and described in all project documents starting with the Project Information Document (PID). The task team (TT) prepares the project concept package, including the PID, in collaboration with the Legal Vice Presidency (LEG) to convey all relevant information on international aspects of the project. When the TT sends the project concept package to the Regional vice president (RVP), it sends a copy to the Vice President and General Counsel (LEGVP). Throughout the project cycle the Region, in consultation with LEG, keeps the managing director (MD) concerned abreast of the international aspects of the project and related events.

Notification

2. As early as possible during identification, the Bank2 advises the state proposing the project on an international waterway (beneficiary state) that, if it has not already done so, it should formally notify the other riparians of the proposed project giving available details (see para. 3). If the prospective borrower indicates to the Bank that it does not wish to give notification, normally the Bank itself does so. If the beneficiary state also objects to the Bank's doing so, the Bank discontinues processing of the project. The Region informs the executive directors concerned of these developments and of any further steps taken. 3. The notification contains, to the extent available, sufficient technical specifications, information, and other data (Project Details) to enable the other riparians to determine as accurately as possible whether the proposed project has potential for causing appreciable harm through water deprivation or pollution or otherwise. Bank staff should be satisfied that the Project Details are adequate for making such a determination. If adequate Project Details are not available at the time of notification, they are made available to the other riparians as soon as possible after the notification. If, in exceptional circumstances, the Region proposes to go ahead with project appraisal before Project Details are available, the country director (CD), via a memorandum prepared in consultation with LEG and copied to the LEGVP, notifies the RVP of all relevant facts on international aspects and seeks approval to proceed. In making this decision, the RVP seeks the advice of the MD concerned. 4. The other riparians are allowed a reasonable period, normally not exceeding six months from the dispatch of the Project Details, to respond to the beneficiary state or Bank.

Responses/Objections

5. After giving notice, if the beneficiary state or Bank receives a positive response from the other riparians (in the form of consent, no objection, support to the project, or confirmation that the project will not harm their interests), or if the other riparians have not responded within the stipulated time, the CD, in consultation with LEG and other departments concerned, addresses a memorandum to the RVP. The memorandum reports all relevant facts, including staff assessment of whether the project would (a) cause appreciable harm to the interests of the other riparians, or (b) be appreciably harmed by the other riparians' possible water use. The memorandum seeks approval for further action. In making this decision, the RVP seeks the advice of the MD concerned. 6. If the other riparians object to the proposed project, the CD, in collaboration with LEG and other departments

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concerned, sends a memorandum on the objections to the RVP and copies it to the LEGVP. The memorandum addresses

(a) the nature of the riparian issues; (b) the Bank staff's assessment of the objections raised, including the reasons for them and any available supporting data; (c) the staff's assessment of whether the proposed project will cause appreciable harm to the interests of the other riparians, or be appreciably harmed by the other riparians' possible water use; (d) the question of whether the circumstances of the case require that the Bank, before taking any further action, urge the parties to resolve the issues through amicable means such as consultations, negotiations, and good offices (which will normally be resorted to when the other riparians' objections are substantiated); and (e) the question of whether the objections are of such a nature that it is advisable to obtain an additional opinion from independent experts in accordance with paras. 8-12.

7. The RVP seeks the advice of the MD concerned and the LEGVP, and decides whether and how to proceed. On the basis of these consultations, the RVP may recommend to the MD concerned that the Operations Committee consider the matter. The CD then acts upon either the Operations Committee's instructions, which are issued by the chairman, or the RVP's instructions, and reports the outcome in a memorandum prepared in collaboration with LEG and other departments concerned. The memorandum, sent to the RVP and copied to the LEGVP, includes recommendations for processing the project further.

Seeking the Opinion of Independent Experts

8. If independent expert opinion is needed before further processing of the project (see OP 7.50, para. 6), the RVP requests the Vice President, Environmentally and Socially Sustainable Development (ESDVP) to initiate the process. The Office of the ESDVP maintains a record of such requests. 9. The ESDVP, in consultation with the RVP and LEG, selects one or more independent experts from a roster maintained by ESDVP (see para. 12). The experts selected may not be nationals of any of the riparians of the waterways in question, and also may not have any other conflicts of interest in the matter. The experts are engaged and their terms of reference prepared jointly by the offices of the ESDVP and the RVP. The latter finances the costs associated with engaging the experts. The experts are provided with the background information and assistance needed to complete their work efficiently. 10. The experts' terms of reference require that they examine the Project Details. If they deem it necessary to verify the Project Details or take any related action, the Bank makes its best efforts to assist. The experts meet on an ad hoc basis until they submit their report to the ESDVP and the RVP. The ESDVP or RVP may ask them to explain or clarify any aspect of their report. 11. The experts have no decision-making role in the project's processing. Their technical opinion is submitted for the Bank's purposes only, and does not in any way determine the rights and obligations of the riparians. Their conclusions are reviewed by the RVP and ESDVP, in consultation with the LEGVP. 12. The ESDVP maintains, in consultation with the RVPs and LEG, the roster of highly qualified independent experts, which consists of 10 names and is updated at the beginning of each fiscal year.

Maps

13. Documentation for a project on an international waterway includes a map that clearly indicates the waterway and the location of the project's components. This requirement applies to the PAD, the Project Information Document (PID), and any internal memoranda that deal with the riparian issues associated with the project. Maps are provided for projects on international waterways even when notification to riparians is not required by the provisions of OP 7.50. Maps are prepared and cleared in accordance with Administrative Manual Statement 7.10, Cartographic Services , and its annexes.

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14. However, the inclusion of maps in the cited documents, except internal memoranda, is subject to any general instruction or decision of the Regional vice president, taken in consultation with the Vice President and General Counsel, to omit maps of the beneficiary state in their entirety or in part. ______________________________________________________________ 1. See BP 10.00, Investment Lending: Identification to Board Presentation. 2. "Bank" includes IDA; "loans" include credits; and "projects" includes all projects financed under Bank loans or IDA credits, but does not include adjustment programs supported under Bank loans and IDA credits; and "borrower" refers to the member country in whose territory the project is carried out, whether or not the country is the borrower or the guarantor. Note: OP and BP 7.50 replace OP and BP 7.50, dated October 1994. Questions may be addressed to the Chief Counsel, Environmentally and Socially Sustainable Development and International Law.

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These policies were prepared for use by World Bank staff and are not necessarily a complete treatment of the subject.

OP 7.50June 2001

Projects on International Waterways Applicability of Policy

This policy applies to the following types of international waterways:

(a) any river, canal, lake, or similar body of water that forms a boundary between, or any river or body of surface water that flows through, two or more states, whether Bank1 members or not; (b) any tributary or other body of surface water that is a component of any waterway described in (a) above; and

(c) any bay, gulf, strait, or channel bounded by two or more states or, if within one state, recognized as a necessary channel of communication between the open sea and other states—and any river flowing into such waters.

2. This policy applies to the following types of projects: (a) hydroelectric, irrigation, flood control, navigation, drainage, water and sewerage, industrial, and similar projects that involve the use or potential pollution of international waterways as described in para. 1 above; and (b) detailed design and engineering studies of projects under para. 2(a) above, including those to be carried out by the Bank as executing agency or in any other capacity.

Agreements/Arrangements 3. Projects on international waterways may affect relations between the Bank and its borrowers and between states (whether members of the Bank or not). The Bank recognizes that the cooperation and goodwill of riparians is essential for the efficient use and protection of the waterway. Therefore, it attaches great importance to riparians' making appropriate agreements or arrangements for these purposes for the entire waterway or any part thereof. The Bank stands ready to assist riparians in achieving this end. In cases where differences remain unresolved between the state proposing the project (beneficiary state) and the other riparians, prior to financing the project the Bank normally urges the beneficiary state to offer to negotiate in good faith with the other riparians to reach appropriate agreements or arrangements.

Notification

4. The Bank ensures that the international aspects of a project on an international waterway are dealt with at the earliest possible opportunity. If such a project is proposed, the Bank requires the beneficiary state, if it has not already done so, formally to notify the other riparians of the pro-posed project and its Project Details (see BP 7.50, para. 3). If the prospective borrower indicates to the Bank that it does not wish to give notification, normally the Bank itself does so. If the borrower also objects to the Bank's doing so, the Bank discontinues processing of the project. The executive directors concerned are informed of these developments and any further steps taken. 5. The Bank ascertains whether the riparians have entered into agreements or arrangements or have established any institutional framework for the international waterway concerned. In the latter case, the Bank ascertains the scope of the institution's activities and functions and the status of its involvement in the proposed project, bearing in mind the possible need for notifying the institution. 6. Following notification, if the other riparians raise objections to the proposed project, the Bank in appropriate cases may appoint one or more independent experts to examine the issues in accordance with BP 7.50, paras. 8-12. Should the Bank decide to proceed with the project despite the objections of the other riparians, the Bank informs them of its decision.

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Exceptions to Notification Requirement

7. The following exceptions are allowed to the Bank's requirement that the other riparian states be notified of the proposed project:

(a) For any ongoing schemes, projects involving additions or alterations that require rehabilitation, construction, or other changes that in the judgment of the Bank

(i) will not adversely change the quality or quantity of water flows to the other riparians; and (ii) will not be adversely affected by the other riparians' possible water use.

This exception applies only to minor additions or alterations to the ongoing scheme; it does not cover works and activities that would exceed the original scheme, change its nature, or so alter or expand its scope and extent as to make it appear a new or different scheme. In case of doubt regarding the extent to which a project meets the criteria of this exception, the executive directors representing the riparians concerned are informed and given at least two months to reply. Even if projects meet the criteria of this exception, the Bank tries to secure compliance with the requirements of any agreement or arrangement between the riparians.

(b) Water resource surveys and feasibility studies on or involving international waterways. However, the state proposing such activities includes in the terms of reference for the activities an examination of any potential riparian issues. (c) Any project that relates to a tributary of an international waterway where the tributary runs exclusively in one state and the state is the lowest downstream riparian, unless there is concern that the project could cause appreciable harm to other states.

Presentation of Loans to the Executive Directors 8. The Project Appraisal Document (PAD) for a project on an international waterway deals with the international aspects of the project, and states that Bank staff have considered these aspects and are satisfied that

(a) the issues involved are covered by an appropriate agreement or arrangement between the beneficiary state and the other riparians; or (b) the other riparians have given a positive response to the beneficiary state or Bank, in the form of consent, no objection, support to the project, or confirmation that the project will not harm their interests; or (c) in all other cases, in the assessment of Bank staff, the project will not cause appreciable harm to the other riparians, and will not be appreciably harmed by the other riparians' possible water use. The PAD also contains in an annex the salient features of any objection and, where applicable, the report and conclusions of the independent experts.

________________________________________________________________ 1. "Bank" includes IDA; "loans" include credits; and "project" includes all projects financed under Bank loans or IDA credits, but does not include adjustment programs supported under Bank loans and credits; and "borrower" refers to the member country in whose territory the project is carried out, whether or not the country is the borrower or the guarantor. Note: OP and BP 7.50 replace OP and BP 7.50, dated October 1994. Questions may be addressed to the Chief Counsel, Environmentally and Socially Sustainable Development and International Law.

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