Algeria - Oil Pollution Management

 ICRR 10791 Report Number : ICRR10791 ICR Review Operations Evaluation Department 1. Project Data: Date Posted : 10/18/2000 PROJ ID : P004871 Appraisal Actual Project Name : Oil Pollution Management Project Costs 7.4 12.0 US$M ) (US$M) Country : Algeria Loan/ US$M ) 0 Loan /Credit (US$M) 0 Sector (s): Pollution Control / Waste Cofinancing 6.9 6.9 Management US$M ) (US$M) L/C Number : Board Approval 94 FY ) (FY) Partners involved : GEF Closing Date 12/31/1999 06/30/2000 Prepared by : Reviewed by : Group Manager : Group : 2. Project Objectives and Components a. Objectives The primary objectives of the project were to assist Algeria to reduce the quantity of petroleum hydrocarbons entering the international waters of the Mediterranean and to comply with MARPOL 73/78 Convention requirements. b. Components The project included the following : (i) upgrading and improvement of the operational efficiency of the deballasting station of the port of Arzew to receive and handle ballast and bilge waters; (ii) the development and implementation of a National Contingency Plan for oil spills, provision of oil spill response and cleanup equipment and dispersant, construction or rehabilitation of sheds to store this equipment, and oils spill response training; (iii) the establishment of an environmental management framework and monitoring capability, and provision of laboratory equipment to monitor oil content of the sea water, (iv) preparation and implementation of a regional framework (including Tunisia and Morocco) and common approach for the activities listed above . c. Comments on Project Cost, Financing and Dates The actual project cost was 90% higher than estimated, mainly due to the Government's willingness to expand its investment in pollution prevention and control beyond the levels planned at appraisal . The closing date was extended by six months to accommodate delays due to the security situation in Algeria . 3. Achievement of Relevant Objectives: The project achieved its objectives of strengthening Algeria's physical and institutional capacity to reduce the discharge of pollution and comply with MARPOL requirements, and establishing a regional framework for cooperation in these areas . 4. Significant Outcomes/Impacts: (i) the deballasting station at the port of Arzew has been upgraded and the recovered oily materials are being sent to a refinery for recycling or sold to private users; (ii) the National Contingency Plan for oils spills has been enacted, and the oil spill response system has been upgraded with the construction of sheds and warehouses for storing equipment, the purchase of oil spill response and cleanup equipment, and training in the use of this equipment; (iii) the environmental authority's awareness of the threat of oil pollution was increased, as well as its ability to monitor it, through the purchase of equipment for selected laboratories and the preparation of baseline data and intermittent updates on sea water quality; (iv) regional cooperation was strengthened with the preparation of a draft Regional Contingency plan, and the signature of a cooperative agreement among the ports on Algeria, Morocco and Tunisia for handling oil spills . Joint training was carried out on contingency planning, prevention and dealing with oil spills . 5. Significant Shortcomings (including non-compliance with safeguard policies): The port authority has not yet implemented a cost recovery mechanism for the deballasting station, which is important for reaching financial sustainability . 6. Ratings : ICR OED Review Reason for Disagreement /Comments Outcome : Satisfactory Satisfactory Institutional Dev .: Modest Modest Sustainability : Likely Likely While cost recovery has not been achieved, the activities established by the project are likely to continue to be funded due to the authorities' commitment to comply with MARPOL. Bank Performance : Satisfactory Satisfactory Borrower Perf .: Satisfactory Satisfactory Quality of ICR : NOTE ICR rating values flagged with ' * ' don't comply with OP/BP 13.55, but are listed for completeness. NOTE: 7. Lessons of Broad Applicability: Port and coastal environmental management is inherently complex due to overlapping jurisdictions of different departments and ministries, port authorities and private interests . The adoption of a common regional framework for this project helped the governments appreciate its environmental benefits, reduce procurement costs, and share their experiences in addressing key institutional coordination and implementation issues . 8. Assessment Recommended? Yes No Why? To verify the impact of the project on reducing petroleum pollution in international marine waters, which has not been documented in the ICR, and evaluate the efficacy of different legal and regulatory environments . 9. Comments on Quality of ICR: The ICR is satisfactory, but its quality could have been improved through : (i) a better structured presentation of the objectives in relation to the components that supported them, and the extent to which they were achieved; (ii) the presentation and discussion of key indicators and other evidence on outcomes and impacts of the project, such as the quality of sea water (including international waters (in line with GEF objectives), the operational efficiency of the deballasting station, and the status of cost recovery for the activities established under the project; and (iii) an indication of the status of the Government's compliance with assurances given at negotiations .