SYNTHESIS

of the IBRD-financed

MINE CLOSURE, ENVIRONMENTAL AND

SOCIO-ECONOMIC REGENERATION PROJECT

(loan 4759 RO signed on January 28, 2005)

The IBRD-financed project provides support for the implementation of the Mining Industry Strategy approved by GD 615/2004.

The project has 2 components:

1. financing of closure works for complex un-economic mines and environmental rehabilitation, and
2. support for the NAD in its efforts toward the socio-economic regeneration of regions affected by mines closures.

Implementing agencies – financing and responsibilities:

	IBRD	The Government of Romania	Total
	USD	USD	USD
MEC	60,092,000	16,120,000	76,212,000
NAD	59,908,000	13,380,000	73,288,000
Total	120,000,000	29,500,000	149,500,000

Responsibilities:

1. The MEC through the Project Management Unit (PMU-MEC) is in charge with the implementation of the mines closure and environmental regeneration component which consist of:

(a) mines closure works (20 sites);

(b) technical assistance for mines closure (supervision and technical audit);

(c) consultant services for the development of closure manuals for salt and uranium mines;

(d) consultant services for the development of the manual for environmental procedures and implementation of a an environmental management system in the mining sector;

(e) monitoring of environmental impact at Calimani open pit and Baia de Aries mine.

The institutional strengthening sub-component of the mines closure and environmental regeneration component includes operational costs and costs for ensuring adequate infrastructure and management during the project life.

2. The NAD through the Project Management Unit (PMU-SER) is in charge with the implementation of the socio-economic regeneration component and has the following main objectives:

(a) granting of incentives to companies that hire unemployed people from the mining areas;

(b) provision of grants, technical assistance and training under the social development scheme for the mining communities;

(c) granting of micro-credits;

(d) technical assistance and execution of municipal infrastructure works for the mining communities;

(e) extension of the small grants scheme initiated by the DFID (Department for International Development of the Great Britain Government);

(f) technical assistance for the implementation of the micro-credits scheme, management of workspace centers, strengthening of community capacity, monitoring, evaluation and public information;

(g) equipment for workspace centers;

(h) technical assistance and goods for the NAD, PMU-SER and the Romanian Social Development Fund.

The institutional strengthening sub-component of the socio-economic regeneration component includes operational costs and costs for ensuring adequate infrastructure and management during the project life.