WORLD BANK SUPPORTS HAZARD RISK MITIGATION AND

WORLD BANK SUPPORTS HAZARD RISK MITIGATION AND
EMERGENCY PREPAREDENESS PROJECT IN ROMANIA

Contacts: In Washington: Merrell Tuck-Primdahl (202) 473-9516
mtuckprimdahl@worldbank.org
In Romania: Cristina Zirimis (4021) 2010328
czirimis@worldbank.org

WASHINGTON, May 20, 2004 — The World Bank’s Board of Executive Directors today approved a US$150 million IBRD loan and a US$7 million Global Environment Facility (GEF) grant to Romania to support the country’s readiness to combat natural disasters. The Hazard Risk Mitigation and Emergency Preparedness project will help the Government of Romania reduce vulnerability to natural disasters and accidental, catastrophic mining spills of pollutants. Four areas of focus will include: (i) strengthening the institutional and technical capacity for disaster management and emergency response through upgrading communication and information systems; (ii) implementing specific risk reduction investments for floods, landslides and earthquakes; (iii) improving the safety of select water-retention dams; and (iv) improving on a pilot basis the management and safety of dam tailings and waste dump facilities.

Romania is severely exposed to a range of natural disasters, particularly earthquakes and floods, which cause economic and human losses. Since 1908, 14 earthquakes of magnitude seven or greater and 8 major floods were recorded, affecting more than 2 million people, and resulting in massive economic losses.

“This multi-sector project is regarded as a flagship operation for pro-active hazard risk management in the Europe and Central Asia region. It is the first time a Government has requested from the World Bank such comprehensive risk mitigation assistance prior to a catastrophic event,” said Project Task Manager Christoph Pusch.

“This project will confer safety as well as environmental benefits, including cleaning the environment at select ‘hot spots’ in the upper Tisza Basin. Preventative action in the near term will benefit local communities by making their environment safer,” said Rita Cestti, who is in charge of the environment component of the project.

The project supports the following components:

ž Strengthening of emergency management and risk financing capacity – this will enhance the capacity of the Romanian authorities to better prepare for, respond to and recover from natural or man-made disasters;
ž Earthquake risk reduction – this will assist the Government in reducing the seismic vulnerability of priority technical and social infrastructure through the retrofitting of key structures and institutional strengthening;
ž Flood and landslide risk reduction – this will reduce flood risk and vulnerability in critical areas in Romania, improve safety of large and small dams, and map and model the risk of landslides to reduce losses and provide for better land use planning tools;
ž Risk reduction of mining accidents in Tisza basin - this will reduce the risk of water and soil contamination and loss of human and aquatic life from catastrophic mining spills. This component will demonstrate and provide for replication for the reduction of catastrophic accidental spills of transboundary pollution loads from mine operations flowing into the Danube and Black Sea basins. In addition, the project will assist in the implementation of mitigation and hazard prevention activities.

The environmental impact of the project will be positive, by reducing Romania’s vulnerability to floods and earthquakes, and by addressing both acute and chronic environmental degradation from mining activities, which all cause substantial damage to the natural and man-made environment. In addition, the fourth component will include measures that should result in a significant reduction of pollution risk to both the Danube river and the Black Sea, which are international waters of worldwide significance.

The total cost of the project is US$203.66 million, including the US$150 million Bank loan, US$7 million from the Global Environment Facility, and US$46.66 million from the Romanian Government. The loan has a maturity of 17 years, including a five-year grace period.

Since 1991, the Bank’s commitments to Romania total over US$3 billion for 30 operations.

For more information on the World Bank’s work in Romania, visit
http://www.worldbank.org.ro/

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The Global Environment Facility (GEF) is a mechanism for providing new and additional grant and concessional funding to meet the agreed incremental costs of measures to achieve agreed global environmental benefits in four focal areas: climate change; biological diversity; international waters; and ozone layer depletion. GEF also supports the work of the global agreements to combat desertification and eliminate persistent organic pollutants.

The World Bank Group is one of GEF’s implementing agencies and supports countries in preparing GEF co-financed projects and supervises their implementation. It plays the primary role in ensuring the development and management of investment projects. The Bank draws upon its investment experience in eligible countries to promote investment opportunities and to mobilize private sector, bilateral, multilateral, and other government and non-government sector resources that are consistent with GEF objectives and national sustainable development strategies. Since 1991, the World Bank Group has committed $1.52 billion in GEF resources and $2.25 billion in Bank group co-financing for GEF projects in 80 countries. In addition to GEF and Bank resources, it has mobilized additional co-financing of $5.48 billion from other donors.

For more information on the World Bank’s GEF program, visit
http://www.worldbank.org/gef

For more information on GEF, visit http://www.gefweb.org

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