Moldova GEF Environmental Infrastructure Project Pre-appraisal Debriefing February 1, 2007

Outline of Presentation Project objectives The five feasibilities of the project Technical Economic Financial Institutional Socio-political Dissemination and replication Next Steps

Project Objectives Treat the wastewater from Soroca Reduce the nutrient load that now damages the Nistru and the Black Sea Demonstrate low cost wastewater treatment and disseminate and replicate the experience elsewhere

The Five Feasibilities (1) Technical feasibility exists because: State of the art treatment technology –”constructed wetlands” or “Green Meadows” has been selected Negligible energy consumption Easy to operate and maintain

The Five Feasibilities (2) Economic feasibility exists because: Project is the least-cost alternative Investment costs of US$ 3.0 million, or 60% of next best alternative Operations and maintenance costs US$ 40,000, or 10% of next best alternative Population willing to pay for O&M costs

The Five Feasibilities (3) Financial feasibility exists because: Project implementation is fully funded from GEF US$ 4.5 million, IDA/PWSSP US$ 1.0 million and Government of Moldova budget US$ 1.4 million (pending GEF ratification and Government commitment) Operations and maintenance costs, equivalent to US$ 0.10 per cubic meter of wastewater. are affordable to population (pending grant agreement conditionality and compliance)

The Five Feasibilities (4) Institutional feasibility exists because: Project implementation can be efficiently managed by the PWSSP PIU attached to ACTD and Soroca apa canal Operations and maintenance are easy and managable by Soroca apa canal

The Five Feasibilities (5) Socio-political feasibility exists because: Government will comply with international treaty with Ukraine to reduce pollution of Nistru river Soroca population attaches priority to treating its wastewater

Dissemination and replication There are 100 existing wastewater treatment plant in Moldova but only four meet effluent standards The “Green Meadows” technology is affordable, robust to operate, and easily replicable Conference center at “Green Meadows” plant for international workshops

Next Steps Finalization of pre-appraisal with possible upgrade to appraisal pending Government confirmation of counterpart financing Negotiations possible in early March 2007 Board presentation in May 2007 Project implementation to begin in second half of 2007 Project operations to start in early 2010