Argentina - Indigenous Protected Areas Project (LIL)

Report No. PID7376 Project Name Argentina-Indigenous Development and(@) Biodiversity Protection Project (Learning and Innovation Loan) Region Latin America and the Caribbean Sector Environmental and Socially Sustainable Development Project ID ARPE57473 Borrower(s) Ministry of Economy, Public Works and Services Implementing Agency Secretary of Social Development (SDS): National Institute of Indigenous Affairs (INAI) Environment Category C Date PID Prepared October 25, 1999 Project Appraisal February 10, 2000 Board Date n/a 1. Country and Sector Background Argentina: The Republic of Argentina has made very significant advances towards economic development and poverty alleviation. In recent years it has officially recognized its cultural diversity and that indigenous peoples are a key part of its social fabrics. The National Institute of Indigenous Affairs allocated resources for activities such as capacity building, in part with a grant from the World Bank's Institutional Development Fund, and the adjudication of lands to some indigenous communities. However, indigenous peoples are still among Argentina's poorest citizens, partly as a consequence of traditional patterns of social exclusion. At the same time, indigenous peoples have important social and cultural assets, and occupy territories of important environmental value to the country. To address the particular problems of indigenous peoples, the Government of Argentina wants to design and implement a combined poverty reduction and sustainable natural resources management operation involving the direct participation of indigenous communities. Sector Strategic Context: The project addresses the CAS objectives of targeted poverty reduction via community-based development investments and participatory protection and management of natural resources. It is formulated as a Learning and Innovation Loan (LIL) to pilot new measures for achieving these objectives and to incorporate the lessons learned into a replicable methodology. It is also complemented with grant funds from the Global Environment Facility (GEF) to design and implement a component focused on biodiversity conservation. 2. Objective of the Project  The project's main objective is to improve the quality of life of indigenous communities, strengthening their social organization and cultures as well as assisting them to reduce poverty and to become partners with other stakeholders in the co-management of environmentally sensitive areas in which they live. It will develop "models" from experience in three pilot cases, the Mapuche territory Pulmari (Neuquen Province), the Diaguita-Calchaqui territory Amaicha del Valle/Quilmes (Tucuman Province) and the Kolla territory Finca Santiago (Salta Province). The project will be considered successful when: (1) the pilot indigenous communities have consolidated their social organizations and cultures; (2) they have improved their capability to manage natural resources in their territories, regularly planning and setting their own development priorities, and gaining access to regular support from existing state, NGO and private sector programs; (3) they have developed sustainable development alternatives, based on natural-resource management; and (4) they are protecting their biological resources. It would also be considered a success when authorities and other groups agree that economic, fiscal, social and environmental issues are being efficiently managed and are prepared to extend the model and apply it to other regions. 3. Project Description The Indigenous Development and Biodiversity Protection Project will be carried out in three pilot areas where indigenous occupants have legal collective title or are in the process of consolidating their traditional tenure rights. Specifically, the project will finance: (a) a Social and Cultural Strengthening Component, designed both to support traditional community-based social organizations and capacity building, and to promote economic activities closely related to their traditional knowledge and culture such as handcrafts and culture related tourism; (b) a Sustainable Use of Natural Resources Component, designed to improve incomes derived from the sustainable use of forests, soils, water and other natural resources, including support for priority land regularization, agriculture, soil conservation, and water management activities; (c) a Biodiversity Protection Component, designed specifically to establish and manage special protected areas were different species of fauna and/or flora need to be conserved, with particular attention to sites considered as biodiversity hotspots and/or endangered species; and (d) an Institutional Component, designed to create the conditions for an effective implementation of the project, including administrative and financial matters and an proven system for monitoring and evaluation. 4. Financing The Learning and Innovation Loan (LIL) amount is US$ 5 million. It will be complemented by a GEF grant of US$1 million. The borrower will provide as counterpart of about US$ 1.5 million. 5. Implementation The borrower will implement the project through the Secretary of Social Development (SDS) and its National Institute for Indigenous Affairs (INAI). INAI will create mechanisms whereby the allocation of resources among priorities and the contracting, supervision and evaluation of the provision - 2-  of goods, services and works financed under the project below a threshold of US$ 50,000 will be responsibility of local indigenous organizations. To build capacity, a Technical Group, established under the project, will ensure quality and adherence to Bank procurement and consultant services policies as well as social and environmental policies. Above that threshold, INAI, with support from the Technical Administrative and Financial Unit (UCAF) of SDS, will review and approve all activities in accordance with those same policies. Three local project units will be established and they will be staffed with indigenous and non-indigenous technicians. Participatory decision mechanisms will be set up for decisions that require consensus and for the design of the co-management strategy. 6. Sustainability The key premise of the project approach is that land tenure security coupled with development investments and natural resources management techniques that are identified, designed and implemented by local community-based organizations (assisted by technical experts) will ensure sustainability. This is so because the project builds in a participatory fashion upon existing social capital, current productive practices, local knowledge and viable institutions, rather than attempting to force their introduction from elsewhere. The sustainability of the methodology developed to accomplish this will be key element of an end-of-project evaluation regarding its potential for extension to other regions. 7. Environmental Aspects General diagnostic-level environmental analyses are being conducted as part of project preparation, which will identify major environmental constraints and opportunities in each of the three pilot areas. Further environmental analysis will be conducted in each area, which will provide the basis for elaboration of a natural resources management framework as well as the establishment of environmental management plans for mitigation of impacts of development investments identified. INAI will establish needed environmental expertise in the Technical Group in each territory to assist and build capacity. 8. Social Impacts Social assessment and participation processes are being implemented as part of project preparation in order to identify the key stakeholders, including relevant organizations within the indigenous communities, as well as to identify priority social issues and possible social impacts. One of the most innovative elements of the project approach is the direct participation of community-based organizations in the identification, design and implementation of social and cultural activities, sustainable development investments and resources management decisions. As part of the project team, six indigenous representatives (two per each pilot area) are actively involved in project design. They are responsible for (a) gathering information; (b) consultation with their respective communities and traditional authorities: (c) assuring that project design respond to the communities' expectations and, (d) developing a participatory social assessment. The social assessment and participation process will continue during project implementation, to provide guidance criteria for the selection of subprojects and ensure their subsequent implementation, monitoring and -3 -  evaluation. 9. Contact Points for Further Information The InfoShop 1818 H Street, NW Washington, DC 20433 Telephone: (202) 458-5454 Fax: (202) 522-1500 Task Manager Jorge Uquillas and Sandra Cesilini 1818 H Street, NW Washington, DC 20433 Tel: (202) 473-9776 Note: This is information on an evolving project. Certain components may not be necessarily included in the final project. Processed by the InfoShop week ending December 17, 1999. - 4 -