Morocco - Environmental Management

 ICRR 10861 Report Number : ICRR10861 ICR Review Operations Evaluation Department 1. Project Data: Date Posted : 08/01/2000 PROJ ID : P005504 Appraisal Actual Project Name : Environmental Project Costs 10.3 3.3 Management US$M ) (US$M) Country : Morocco Loan/ US$M ) 6.0 Loan /Credit (US$M) 2.0 Sector (s): Environmental Institutions Cofinancing US$M ) (US$M) L/C Number : L3647 Board Approval 94 FY ) (FY) Partners involved : Closing Date 12/31/1998 12/31/1999 Prepared by : Reviewed by : Group Manager : Group : 2. Project Objectives and Components a. Objectives The objective of the project was to assist the Government in strengthening its institutional and regulatory framework for managing environmental protection . b. Components The project had four components : (i) an institutional and legal component to strengthen the technical and administrative capacity of the Secretariat of State for the Environment (SSE), the Ministries of Agriculture and Public Works, and to reinforce the legal and regulatory framework; (ii) studies on economic and financial instruments for environmental management; (iii) establishment of an Environmental Information System (EIS); and (iv) a program of environmental education and dissemination outside the formal education system . c. Comments on Project Cost, Financing and Dates The closing date of the project was extended to June 30, 2000, eighteen months later than planned at appraisal, to accomodate delays in project effectiveness and implementation . Of the original loan amount of $6.0 million, $4.0 million were cancelled in four steps : (i) by the cancellation of a component to strengthen environmental management in the Wilaya of Fez ($1.0 million); (ii) the cancellation of the environmental education and dissemination component for all of which funding was found elsewhere ), and phase 2 of the economic and financial instruments studies ($1.5 million); (iii) the cancellation of purchase of equipment for EIS (funding found elsewhere) ($0.5 million); and (iv) the cancellation of the undisbursed balance of the project after the closing date . 3. Achievement of Relevant Objectives: The objective of the project was only achieved to a very modest extent : (i) in regard to the institutional framework, studies and training to strengthen the technical and administrative capacity of the SSE and the two ministries were completed, but SSE remains ineffective in influencing government decisions in environmental matters . The EIS has been designed and its operators trained, but it is not yet operational due to lack of equipment. Also, the environmental education and dissemination component was cancelled when grant funding was found elsewhere . (ii) in regard to the regulatory framework, drafts were prepared for five pieces of environmental legislation, but they remain at an early stage in the approval process . Financial and fiscal instruments have been proposed, but not implemented. 4. Significant Outcomes/Impacts: (i) the project contributed to elevate the environmental agenda of the government and initiated communication between environmental units of many ministries; (ii) the project succeeded in making environmental impact assessments a practice for major projects in the public and private sectors. 5. Significant Shortcomings (including non-compliance with safeguard policies): (i) SSE remains a new and inexperienced agency, with little ability to coordinate and influence environmentally relevant decisions of well-established ministries (such as Agriculture, Public Works, Finance and Interior ). (ii) five major pieces of environmental legislation have been drafted, and while they are at at the early stages of the approval process, have reasonable chances of being approved in a few years' time; 6. Ratings : ICR OED Review Reason for Disagreement /Comments Outcome : Unsatisfactory Moderately OED's rating is consistent with the ICR's, Unsatisfactory which does not have the "moderately unsatisfactory" on its scale. Institutional Dev .: Modest Modest Sustainability : Likely Likely Bank Performance : Unsatisfactory Unsatisfactory Borrower Perf .: Unsatisfactory Unsatisfactory Quality of ICR : Satisfactory NOTE: NOTE ICR rating values flagged with ' * ' don't comply with OP/BP 13.55, but are listed for completeness. 7. Lessons of Broad Applicability: The scope of project activities exceeded the capacity of a new and inexperienced government agency (SSE). A less complex institutional arrangement with a less ambitious set of project activities might have had a greater chance of being fully implemented. The implementation of the project was hampered by the Borrower's expectation that it could obtain grant funding from other donors for several components, which were cancelled in several steps late during project implementation, when funding was found. To mitigate the associated uncertainty and waste of administrative resources, the Bank needs to strengthen its efforts to achieve Borrower ownership of projects at the preparation stage, and improved donor coordination, for instance through the CDF . 8. Assessment Recommended? Yes No 9. Comments on Quality of ICR: The ICR provides a candid and concise evaluation of the experience with the project, with a sound assessment of the outcome, sustainability, institutional development impact, Bank and borrower performance .