Bolivia - Environmental Technical Assistance Project (ETAP)

MICROFICHE COPY Report No, :P- 5841-BO Type: (PR) Title: ENVIRONMENTAL TECHNICP,L ASSI5Slt o- Author: VASILIADES, I. Ext.:319 Z3 Room:15 005 Dept.:LA3DR P (A~~~~~~~~~~~~~~~~~~~~~~~~~~~~r sr g O' f I 0 II I A v $'  CURRANCY AND L Currency Unit - Boliviano (Bs) Exchange Rate Effective June 1992 US$1.00 = Bs 3.8992 US$0.2665 = Bs 1.00 WEIGHTS AND MEASURES Metric System GOVERNMENT OF BOLIVIA ECAL YEAR January 1 - December 31 GLOSSARY OF ABBREVIATIONS ASEO - Asociacion Ecologica del Oriente CDC - Centro de Datos para la Conservacion aEC - Intedisciplinary Center for Community Studies DNAPVS - National Directorate for Protected Areas EAP - Environmental Action Plan ECC - Environmental Congressional Commissions ETA - Environmental Impact Assessment FAN - Friends of Naure Foundation FONAMA - Fondo Nacional Para El Medio Ambiente (National Emnronmental Fund) GET - Global Environment Trust Fund GOB - Government of Bolivia LIDEMA - Liga para la Deensa del Medio Ambiente MACA - Ministry of Agriculture SDC - Swiss Development Cooperation SEMTA - Servicios Multiples de Tecnologias Apropiadas SENMA - Secretaria Nacional del Medio Ambiente (National Envionment Secreariat) SNAP - National System of Protected Areas TFAP - Tropical Forestry Action Plan UNDP - United Nations Development Program  FOR OMCIL USE ONLY BOL V' RONMBTE TECCA ASSISANCE ER0M (EA Credit and ProWect ,aEY Borxws: Republic of Bolivia National Environentl Secretaia (SENMA), National Environmeal Fund (FONAMA), line ministe and NGOs Amount: SDR 3.3 mIlion (US$4.8 miion equivalent) ZeTms: Standard IIDA term Elnaing Plan Government US$0.5 million VDA US$4.8 mfllion NGOs and Beneficiary )mmunlties US$0.2 milion TOTAL US$5.5 million Economi Rate gf Reuz N.A. Staff A gurais n Report: N.A. IBRD 24Q1I This document has a restricted distribution and may be used by recipien, Jinty in the performance of their official duties. Its contents may not otherwise be disclosed witho' Worl I Bank authorization.  m=AiND - IONx or 233 F3BSDUU Fo Tim DUV3ZiOPIN_Soca On a 1a39153 CR392 20 233 RIPUBLIC Or ROLM&I 1. I submit for your approval the following eordum and recomedation on a proposed development credit to the Republic of Bolivia for SDR 3.3 million (US$4.8 million equivalent) on standard IDA terms with a maturity of 40 years to help finance an environmental technical assistance project. Backoround and RIv 3nvIronMntal Issues 2. Bolivia has maintained masroeeonoml stabllity since 1985, and the growth rate of CDP has recently accelerated (reaching 4 1% in 1991) such that per capita income is growing. Wlth the support of the Bank, the IM and several bllateral donors, the Government continues to pursue a comprehensive rogram of structural reforms. The progres achieved to date and the agenda for on-going reforms is fully documented in the recent Pollcy Framework Paper and the Updating UconomLc Memorandum.TM 3. Having stabilLzed its economy, Bolivia must now focus on stimulating Linreased growth and poverty reduction. Incom growth will depend in part on suitable use of and invewtments in Bolivia's abundant supply of natural resources (hydrocarbons, mlnerals, extensive forests -th eighth largest tropical forst in the world- and sizeable stretches of land suitable for crop and livestock production) particularly in the Nastern Lowlands. The overall development of its resources however, has not been managed in accordance with sound practices or in the context of clear policy guidelines for sustainable development and conservation. 4. DeforestatLon, soil orosion, water pollution and loss of natural habitat aro the key environmental problems. DeforestatiL estimates range from 80,000 to 140,000 hectares annually. 8il *rosd on, a consequence of deforestation, geologlcal formations (in the Andes), drought, and overuse of land, affects 30-40% of the total territory of the country. Water .ollution caused by household waste water and industrial waste dlicharger especially from mines, poses serious health hazards to a wlde cross-section of the BolivLan population. Bollvla is also losing its unique flora and fauna resources, mainly as a conseqence of deforestation, contraband trade, and migration to the Lowlands. Indiscriminate land clearing, road construction, poor utilization of land, water and forest resource threaten the sustainability of agriculture, forestry and biodiversity. Key constraints to improved environmental management includes (i) lnadequate policy, legal and I/ 8ee BOLrMIV Policy Framework Paper, 1992-95, SecM92-1144, August 19, 1992, and BOLIVIA: Updating UconomLc Xemorandum, Report No. 11133-BO, October 8, 1992.  I regulatory frameworks (Ui) weak institutional structures, along with the absnce of clear'_ dsf ned responsibilities for environmental protection and management and (III) perhaps most importantly, a severe shortage of technical capacity. Institutional and Leaal Framework 5. Inht