Conformed Copy - TF027392 - Improving Environmental Management Capacity - IDF Grant

Page 1 November 10, 2000 H. E. Rustam Azimov Deputy Prime Minister Minister of Macroeconomics and Statistics Tashkent REPUBLIC OF UZBEKISTAN Dear Mr. Azimov: Re: Uzbekistan -- Grant for Improving Environmental Management Capacity IDF Grant No. 27392 I am writing on behalf of the International Bank for Reconstruction and Development (the Bank) to indicate the Bank's agreement to make to Republic of Uzbekistan (the Recipient) a grant in an amount not exceeding three hundred ninety thousand United States Dollars (US$390,000) (the Grant). The Grant is made in response to the Recipient's request for financial assistance and for the purposes and on the terms and conditions set forth in the Annex to this Letter-Agreement. The Recipient represents, by confirming its agreement below, that it is authorized to contract and withdraw the Grant for the said purposes and on the said terms and conditions. Please confirm your agreement with the foregoing, on behalf of the Recipient, by signing, dating, and returning to us the enclosed copy of this Letter-Agreement. Upon receipt by the Bank of the copy of this Letter-Agreement countersigned by you, this Letter-Agreement will become effective as of the date of the countersignature. Very truly yours, INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT By /s/ Kiyoshi KoderaCountry Director Central Asia Country Unit Europe and Central Asia Region AGREED: REPUBLIC OF UZBEKISTAN By /s/ Rustam Azimov Deputy Prime Minister Date: December 14, 2000 Page 2 ANNEX Purposes, Terms, and Conditions of the Grant 1. Purposes and Activities 1.1. The purpose of the Grant is to (a) improve institutional systems and capacity for enforcement of environmental policies, regulations, and standards at national and oblast levels of government; and (b) increase the environmental awareness of the general population in order to promote more effective public participation in environmental management decision-making in the territory of the Recipient. The activities (the Activities) for which the Grant is given are as follows: A. Pollution Control Regulatory Compliance Review and Upgrading 1. Preparation of three case studies of polluting enterprises (one private and two state owned) in two or three different oblasts, including the carrying out of a comprehensive assessment of pollution control regulatory compliance with the involvement of the enterprises, and all relevant government agencies . 2. Carrying out of a stakeholder workshop to disseminate the results, lessons, and recommendations from these case studies in order to reach a consensus on priority measures for improving regulatory compliance. 3. Development and adoption of measures by national and oblast levels of government through legislative, procedural, methodological, administrative, as well as resource allocation and other improvements to the existing regulatory system. B. Environmental Impact Assessment (EIS) and State Ecological Expertise (SEE) Regulatory Compliance Review and Upgrading 1. Provision of technical advisory services through independent facilitators (foreign and local) to carry out four case studies of EIA/SEE approvals of major polluting enterprises in three or four different oblasts. 2. Carrying out of a stakeholder workshop to disseminate the findings, lessons, and recommendations of these case studies. 3. Preparation and adoption of revised and improved policies, laws, regulations, procedures, methodologies, guidelines, training programs, and additional budgets for a more effective and efficient EIA/SEE regulatory system. C. Fund for Environmental Protection (FEP) Restructuring and Upgrading 1. Provision of technical advisory services to review the operation of the pollution charge system and local environmental fund management in three oblasts (Tashkent, Navoi, and Kashkardarya). 2. Carrying out of stakeholders workshop to discuss and disseminate the findings, lessons, and recommendations of these reviews, and identify shortcomings in the system and develop a consensus on the urgently needed reforms and restructuring to improve its operational effectiveness. 3. Preparation and implementation of reforms agreed to at the workshop, including improved policies, laws, regulations, and procedures resulting in greater revenue collections, more effective management of the funds, and increased funding allocations to pollution abatement investments. D. EIA/SEE Resource and Training Center Upgrading 1. Provision of technical advisory services, equipment and logistical assistance to strengthen the capacity of the Training Centre in order to greatly improve the quality of EIA preparation and review, and assist in training a cadre of EIA experts in the public and private sector. 2. Carrying out of stakeholder workshop to determine priority measures for upgrading the Center to meet the specific needs of the country. 3. Implementation of the recommendations of the workshop and initial training of local EIA/SEE experts. Page 3 E. Public Environmental Awareness & Empowerment for Environmental Action 1. Organisation of focus group discussions with residents in three representative oblasts to determine: (a) how they view their surrounding environmental conditions and how these conditions may be affecting their health or productivity, (b) their knowledge about environmental laws and existing opportunities for public consultation in environmental decision making, and (c) their environmental information needs and willingness to participate in environmental decision making. 2. Organisation of stakeholder workshops to discuss and disseminate the results, lessons, and recommendations of the case studies. 3. Commissioning of organisations to prepare necessary materials and arrange for public dissemination. 2. Implementation 2.1. The Recipient ,through the State Committee for Environmental Protection (SCEP) shall: (a) carry out the Activities with due diligence and efficiency; (b) promptly provide the funds, facilities, services and other resources required for that purpose; (c) furnish all information covering the Activities and the use of the proceeds of the Grant as the Bank shall reasonably request; (d) from time to time exchange views with the Bank's representatives on the progress and results of the Activities; and (e) take all necessary measures required to enable the Bank