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5.5. Rejection of sub-project

If the sub-project is rejected on environmental grounds after an unsatisfactory site visit, an improved environmental proposal may be submitted by the proponent, and re-appraised as above. Re-appraisal should be restricted to one improved proposal, and the proponent should not expect to make multiple applications on the basis of continuous marginal improvements to the scheme. Re-appraisal should be at the discretion of the PFI. More detailed information is given in Annex 4.

5.6. Environmental Monitoring

If the credit/grant application is accepted for funding, environmental monitoring will be required for Category B projects in compliance with the environmental management plan (EMP) agreed in the screening procedure. The extent of project monitoring will be dependent on the nature, scale and potential impact of the sub-project. Monitoring may require the services of environmental specialists or a company with laboratory and analytical facilities (for complex environmental problems) or inspection by the local government environmental officer. Environmental monitoring is the responsibility of the PMU.

5.7. Reporting by the VCDS, PFIs and the PMU

Credit line PFI’s and VCDS are required to submit quarterly reports to the PMU on the sub-projects financed using WB funds in accordance with uniform reporting formats as prescribed by the Project and agreed by the World Bank. That reports would have a section on environment.

The PMU will address in physical progress report section of the regular quarterly Financial Management Reports (FMRs) that are to be provided to the Bank.
The PMU will address environmental aspects of the financed sub-projects and the related documents (i.e., environmental management plans and mitigation measures) in its routine reporting to the World Bank and during the periodic supervision missions. In addition, there will be annual reporting of the PMU to the World Bank and the Government, specifically focusing on the safeguards issues and reviewing and assessing cumulative impacts occurred during the year.

ANNEX 1. ENVİRONMENTAL CATEGORİES ACCORDING TO WORLD BANK OP 4.01

Category A: A Category A project is likely to have significant adverse environmental impacts that are sensitive, diverse, or unprecedented. These impacts may affect an area broader than the sites or facilities subject to physical works, can cause serious and irrevocable impact upon the environment or human health. The EIA for a Category A project examines the project's potential negative and positive environmental impacts, compares them with those of feasible alternatives (including the "without project" scenario), and recommends any measures needed to prevent, minimize, mitigate, or compensate for adverse impacts and improve environmental performance for a Category A project, the borrower is responsible for preparing a report, normally an Environmental Impact Assessment.

Category B: A Category B project has potential adverse environmental impacts on human populations or environmentally important areas - including wetlands, forests, grasslands, and other natural habitats - which are less adverse than that of Category A projects. These impacts are site-specific; few if any of them are irreversible; and in most cases mitigatory measures can be designed more readily than for Category A projects. The scope of EIA for a Category B project may vary from project to project, but it is narrower than that of Category A assessment. Like Category A, a Category B environmental assessment examines the projects potential negative and positive environmental impacts and recommends any measures needed to prevent, minimize, mitigate, or compensate for adverse impacts and improve environmental performance.

Category C: A Category C project is likely to have minimal or no adverse environmental impacts. Beyond screening, no further EIA action is required. Category-C includes activities, the scope, location and content of which will not bring about serious impact on the environment.

It is important that the project management unit and the lending institution be able to identify activities for which funding is being requested and which may fall into either of the World Bank’s Category A or Category B. For the most recent information on environmental categories see Website www.worldbank.org/environment and http://web.worldbank.org/WBSITE/EXTERNAL/PROJECTS/EXTPOLICIES/EXTOPMANUAL/0,,contentMDK:20064724~menuPK:64701637~pagePK:64709096~piPK:64709108~theSitePK:502184~isCURL:Y,00.html

Sub-projects classified as Category A, B or C may include¹:

Category A Projects (projects/components which may have diverse and significant impacts – normally require EA)	Category B Projects (projects/components which may have diverse and significant impacts – more limited environmental analysis appropriate)	Category C Projects (projects/components which may have likely to have minimal or no adverse environmental impacts beyond screening, no further EIA action is required
dams and reservoirs forestry depletion projects industrial plants (large scale)* and industrial estates, including major expansion, rehabilitation, or modification irrigation, drainage and flood control (large scale)** aquaculture land clearance and leveling reclamation and new land development resettlement river basin development manufacture, transportation and use of pesticides or other hazardous and/or toxic materials production, transportation and sale of fuel new construction or major upgrades of highways or rural roads	Agriculture (medium scale) Agriculture, horticulture, vineyards and orchards (medium scale intensive operations >50 ha)*** Animal husbandry (medium scale) (100-500 heads of cattle (cows) or 5 small farm cattle (sheep) per head of cattle(cow)) Construction and operation of potable and irrigation water supply Re-cultivation of land (greater than 100 hectares); Setting up of mariculture and aquaculture farms on rivers or lakes larger than 0.5 ha (no exotic species) Utilization of agricultural land (30 to 50 hectares) for non-agricultural purposes Utilization of agricultural land (30 to 50 hectares) for non-agricultural and commercial purposes (Farm buildings for stock and machinery, Storage facilities (fuel, chemicals, grain and other produce), markets and etc.) Utilization of virgin soils and unbroken expanses for intensive agriculture Food processing industries (medium scale) Canning industry (annually processing 3000 to 5000 tons of raw materials). Complex poultry and cattle breeding farms (100-500 head) Dairy goods, milk and milk products factories Fiber industry Fruit and pickle processing, jams, syrups. Juices and beverages (medium scale > 3000 tons/year of raw materials) Grain products factory Non-alcoholic wine and spirit bottling enterprise. Hide processing Slaughter-houses, meat packing and animal remains processing plants (medium scale – 5000 -10000 tons/year) Sugar production Yeast production Establishment of semi-finished food factories ( 1000-5000 tons/year)	Agriculture (small scale) Agriculture, horticulture, vineyards and orchards (small scale <50 ha) Animal husbandry (small scale – less than 100 head ) Construction of a grain drying, cleaning, storage and silo towers Construction of buildings to store agriculture goods and agricultural products Construction of glass-houses or polytunnels Construction of warehouses for chemical pesticides and mineral fertilizers Production of flax Utilization of agricultural land (20 to 30 hectares) for non-agricultural purposes Food processing industries (small scale) - Canning industry (processing <3000 tons/year of raw materials). Collection of medicinal herbs Construction of a roasting enterprise (coffee beans, sunflower etc) Construction of agricultural products process buildings, facilities and enterprises Establishment of egg product enterprise (capacity exceeding 40 tons/year) Establishment of semi-finished food factories (200-1000 tons/year) Production of non-alcoholic beverages Setting up slaughter-houses (small scale) and butcheries

Notes:

* Large-scale here is defined as enterprises with annual sales of US$ 3 million or more equivalent.

** Large-scale here means an irrigated area of 50 hectares or above.

*** There is no specific requirements for EA of agricultural, horticultural or orchard and vineyard activities under the local Law, so the ADCP-3 will specify >50ha and less than 100 ha category B and <50ha as Category C.