Additional Financing 2017 - 2022: Investments in Local Communities to Reduce Nutrient Pollution (35 MIL. EURO)

(1). Investments in manure management.

The Component 1 provides support for effective investments and management practices to reduce nutrient pollution from agricultural, livestock and human sources. The financial support is provided to the ATUs based on selection criteria. Depending on the part of the loan – the Original Loan or the Additional Financing – the selection criteria and process differs. The menu of investments is also different from OL to AF as the AF comprises more types of actions that can be financed. The specific details regarding the implementation of Component 1 under the OL and AF are presented below.

(D.I.1) Developing local community storage, composting and handling systems, packing/ pelleting stations and biogas facilities, all to promote better management of livestock waste. This domain of intervention finances sub-projects to promote better management of livestock waste or to acquire equipment to operate the storage and/or composting facilities as follows:

1. Developing manure storage systems including the necessary handling equipment by communities with significant livestock population level.
2. Developing composting, packing/pelleting stations
3. Developing biogas facilities.

Financing is provided for the construction of facilities/stations as follow: site organization, works for environmental protection and land initial state restoration, SIC and Social House of Builders taxes, required utilities, civil works, installations, handling and operating equipment, technological tests and analyses, the personnel training for operating, consultancy services for site supervision and project management, technical support during preparation of Concept Note and Full Proposal. The Beneficiaries will ensure the studies related to the construction (feasibility, land, EIA), the documentation and taxes required for obtaining the construction and operating permits, the TD, TDCA, TDSO and execution details, the technical quality checking of the TD and technical assistance of the designer during the construction and defects liability phases. These costs may be modified according to the applicable legislation.

(D.I.2.) Upgrading the existing manure storage and/or composting facilities. This domain of intervention finances sub-projects for upgrading the existing manure storage and/or composting facilities, through:

1. Sets of equipment that support the functioning of existing manure storage facilities and composting stations for beneficiaries that already have their own storage/composting facilities;
2. Intervention works for existing facilities, including, as the case may be, the corresponding set of equipment

In the first case, financing is provided for 95% from value of equipment that support the functioning of manure storage facilities and composting stations for beneficiaries that already have their own storage/composting facilities; the Beneficiaries will ensure 5% from value of equipment that support the functioning of manure storage facilities and composting stations; the cash participation consists of direct payment to the contractor (supply contracts concluded by MWF). In the second case, the Project will ensure specific handling and operating equipment, technical support during preparation of Concept Note and Full Proposal and consultancy services for site supervision and project management. Depending on the existing facilities, the Project expenses may include specific civil works, installation, utilities, technological tests and analyses, personnel training for operating the investment, SIC and Social House of Builders taxes, site organization, SIC and Social House of Builders taxes; the Beneficiaries will ensure the documentation for approval of works related to the upgrading of the existing facilities and providing sets of handling and operating equipment that support the functioning of manure storage facilities or composting stations. Depending on the existing facilities, the Beneficiaries expenses may also include EIA, land studies, documentation required for permits, the TD, TDCA, TDSO and execution details, the technical quality checking of the TD, technical expertise, taxes and documentation for operating permits, technical assistance of the designer during the construction and defects liability phases.

(2.) Investment to mitigate pollution by wastewater.

(D.I. 3) Sewage and wastewater treatment activities. This domain of intervention finances sub-projects to for introduction, rehabilitation or extension of small-scale sewage collection and treatment systems, serving a number of 1,000 – 5,000 equivalent inhabitants, in communities that already implemented all measures[1] to mitigate pollution with nutrients originating from agriculture, but where this is still imminent due to the households having no waterproof septic tanks from which leachate leaks directly into groundwater. Financing is provided for extension/construction activities of sewage collection and wastewater treatment, as follow: site organization, works for environmental protection and land initial state restoration, SIC and Social House of Builders taxes, required utilities, civil works, installations, handling and operating equipment, technological tests and analyses, the personnel training for operating, consultancy services for site supervision and project management, technical support during preparation of Concept Note and Full Proposal. The Beneficiaries will ensure the studies related to the construction (feasibility, land, EIA), the documentation and taxes required for obtaining the construction and operating permits, the TD, DTAC, TDSO and execution details, the technical quality checking of the TD and technical assistance of the designer during the construction and defects liability phases..

(3.) Improving water bodies protection against nutrients and soil runoff.

(D.I.4) Planting of forest shelter belts. This domain of intervention finances sub-projects for the afforestation of community land, tree planting as riparian buffers, planting vegetative buffer strips in communities where water bodies and land require protection from nutrient discharges. Financing is provided for acquiring and transport of saplings, planting works, evaluation studies regarding the success of plantation, maintenance of the plantation until the closing of solid state (and until the closing date of the Project), consultancy services and technical support during the implementation and during the maintenance period, technical support during preparation of Concept Note and Full Proposal; the Beneficiaries will ensure the studies related to the construction (feasibility, land, EIA), the documentation and taxes for obtaining the necessary permits (including of the land use regime changing), the TD, and technical assistance of the designer during the planting works and maintenance of the plantation from the closing date of the project and until the closing of solid state .

[1] As defined in Guide for Applicants (Annex 5 of POM).