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Implementation Completion Report (ICR) Review - Tehran Transport Emissions Reduction Project

1. Project Data:   
Project ID:
Project Name:
Tehran Transport Emissions Reduction Project
Urban Transport, Transportation
L/C Number:
Partners Involved:
Prepared By:
Charles Derek Poate, OEDST
Reviewed By:
Ronald S. Parker
Group Manager:
Roger Slade
Date Posted:

2. Project Objectives, Financing, Costs, and Components:

The objective of the Global Environment Facility (GEF) grant was to assess measures that would reduce greenhouse gases (GHC) emissions from urban transport operations in the city of Tehran, and improve local air quality. A GEF grant of US$ 2.1 million was approved October 5, 1993 and closed one year late December 31, 1997. Total project costs amounted to US$ 4.2 compared to US$ 4.0 estimated at appraisal.

3. Achievement of Relevant Objectives:

Initial implementation was delayed due to the Borrower being unfamiliar with Bank procedures. However, the basic objectives of the grant have been achieved. The Air Quality Control Company (AQCC), a subsidiary of the Municipality of Tehran, commissioned a comprehensive modeling study of traffic flows and air quality prepared an action plan to reduce emissions and improve air quality; and implemented through transport measures part of the action plan under its control. The project also provided a blueprint for environmentally sustainable transport policies, and institutional cooperation between AQCC and other municipal agencies was enhanced.

4. Significant Outcomes/Impacts:

The grant has strengthened the AQCC as the agency responsible for monitoring and improving air quality in Tehran. Also the comprehensive study has resulted in an action plan which was discussed at an Air Pollution Conference in Tehran in June 1997 and resulted in an operation plan.

5. Significant Shortcomings (include non-compliance with safeguard features):

The government was not prepared to introduce policy changes that would have had major impact on the reduction of GHG, namely the increase in fuel prices and stringent regulations on the amount of lead in gasoline and sulfur in diesel. In addition the Municipality was less interested the in the GEF's prime concern of reducing GHG emission but rather in other pollutants which were more of a real problem in Tehran.
6. Ratings:ICROED ReviewReason for Disagreement/Comments
    Project objectives have been achieved and AQCC strengthened.
Institutional Dev.:
    Instutional objectives were achieved but institutional impact lessened as major policy implications have not yet been accepted.
    At the municipal level the project is sustainable, but (i) the lack of full cooperation between agencies and the lack of interest by the Department of Environment (ii) the lack of acceptance of the policy and institutional implication by government; and (iii) the US embargo that hampers importation of maintenance and operation of pollution measuring equipment, do not bode well for sustainability.
Bank Performance:
Borrower Perf.:
Quality of ICR:

7. Lessons of Broad Applicablity:

A strong commitment is needed at the national level and not only at local or regional levels. The priorities of the local recipient should be recognized in project design. Environmental data collection requires a long time span. The decision to give control of the project to one, rather than three agencies was a major factor in the success of the project.

8. Audit Recommended?  Yes

          Why?  This was one of the earlier GEF grants and therefore legitimately should be audited. However, the need for and function of performance audits for small GEF grants needs to be clarified in general.

9. Comments on Quality of ICR:

The ICR is satisfactory. It addresses project issues clearly and concisely and includes a section giving the Recipient's perspective.

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