Uganda - Protected Areas Management and Sustainable Use Project

Report No. PID10669 Project Name Uganda-Protected Areas Management and ... @ Sustainable Use Project Region Africa Sector Other Environment Project ID UGPE65437 Supplemental Project P075932 Borrower(s) The Republic Of Uganda Implementing Agency Ministry Of Tourism, Trade And Industry Address: Plot 6/8 Farmers House, Parliament Avenue, P.O. Box 7103, Kampala, Uganda Contact Person: Dr. S.P. Kagoda, Permanent Secretary Tel: 256-41-348286 Fax: 256-41-230916 Project Coordination Unit Address: Plot 6/8, 5th Floor Farmers House, P.O. Box 21957, Kampala, Uganda Contact Person: Mr. David Abura-Ogwang, Project Coordinator Tel: 256-41-254827/8 Fax: 256-41-342011 Email:pamsu@pamsu.org Environment Category C Date PID Prepared November 26, 2001 Projected Appraisal Date November 26, 2001 Projected Board Date February 26, 2002 1. Country and Sector Background Government Strategy to Address the Wildlife and Tourism Sector Issues and ConstraintsRehabilitation and management of the wildlife and conservation areas, revitalization of the tourism industry, and empowerment of local governments and communities to manage and benefit from the sustainable use of natural resources, are high priorities for the Government of Uganda as demonstrated by a number of actions and policy and institutional reforms it has taken over the past few years. The GOU has established a number of parastatal and mixed public/private sector entities responsible for different facets of the conservation and tourism sectors, many of which were previously the direct responsibility of Government departments. These include the Uganda Wildlife Authority (UWA), the Uganda Wildlife Education Centre (UWEC), the Uganda Tourist Board (UTB), and the recently established Uganda Museums and Monuments Agency (UMMA).A major objective of transferring these traditionally government functions to  semi-autonomous entities was to enhance their sustainability through generation and retention of revenues, mainly from tourism related activities. This is consistent with a growing trend around the world to reduce the dependence of such bodies on increasingly stretched national budgets. They are also intended to provide a synergetic linkage between the public and private sectors, to facilitate the development and growth of the tourism industry. Thus they represent an important model of public/private cooperation for private sector development, also an important element of the Uganda CAS. 2. Objectives BackgroundTourism and Wildlife Sector in UgandaDue to its location in a zone of overlap between the dry East African savannah and the West African rain forest, Uganda possesses a rich natural endowment of forests, mountains, and waterways, as well as some of the richest assemblages of biological diversity in Africa. Its wide geographical and altitudinal rage, spanning from 600 meters to 5100 meters, has resulted in a unique diversity of ecosystems and species. These include extensive wetlands and swamp areas, grass and woodland savannahs, tropical high forests, and Afro-alpine forest areas. For its size, Uganda is one of the most species-rich countries in Africa. For example, Uganda has more than 11. of the world's bird species and more than 7t of total world mammals.This biological diversity is protected through an system of protected areas, currently undergoing a process of rationalization. After revision the area of national parks, wildlife reserves and animal sanctuaries will amount to 22,000 km2. The protected areas are managed by the Uganda Wildlife Authority, parastatal formed in 1996 by merging Uganda National Parks and the Game Department. Initially, the new UWA suffered from an unstable management regime, and has only since early 1999 been able to focus on building its organizational and management capacity.Before Uganda's period of civil unrest starting in the early 1970s, Uganda was, based on its wildlife, the premier tourism destination in East Africa. It's national parks and cultural heritage still have the potential for forming the basis of a competitive tourism product. Currently Uganda is the only country where tourists can view mountain gorillas. Also competitive internationally are two or three of its savannah parks, the Ruwenzori Mountains, and opportunities for chimpanzee viewing. The country has placed considerable emphasis on developing its tourism product. However, development targets have consistently failed in recent years to meet expectations for a range of internal and external reasons: continuing insecurity in a number of parts of the country in which prime tourism destinations are located; low capacity in the private sector to develop tourism products and provide related services; problems with the concessioning process for lodges and activities in National Parks; and the low volumes leading to diseconomies of scale-current international arrivals of leisure tourists are estimated to be approximately 5,000 per annum. The focus of the proposed PAMSU project is on the rehabilitation and sustainable managementof the natural resources The "Conservation and Sustainable Tourism" (CAST) programme is the GOU's umbrella programme to support conservation of the country's wildlife and cultural heritage and assets and to implement the Integrated Tourism Master Plan (ITMP). ITMP is based on Protected Areas (PAs) as the primary attraction, with a secondary emphasis on cultural assets. It emphasizes that growth in the sector must follow a modest pace corresponding to the rate of recovery of the underlying natural assets and the rehabilitation and expansion of the -2 -  supporting Infrastructure. Some of the activities under CAST are already well underway with support from donors such as the European Commission, the Royal Netherlands Government, NORAD, USAID, KfW and the GTZ and the World Bank. The proposed PAMSU Project is a follow-on project to the Institutional Capacity Building for Protected Areas Management and Sustainable Use project (ICB-PAMSU), scheduled to close January 2002. PAMSU represents the World Bank's second phase of support to the GOU's CAST programme. The broad objectives of the of the ICB-PAMSU project have been achieved, which provides the necessary capacity to proceed with the PAMSU phase of support. Those achievements include the following: (1) an effective and efficient overall institutional framework for the wildlife/protected areas management sector has been established, with roles and capabilities of the various institutions well coordinated including the relationships between public and private sector and NGOs; (2) the planning, management and implementation capacity of the individual sectoral institutions to ensure sustainability and accountability has been strengthened; and (3) the overall human resource capacity and professionalism in the sector has been improved. During the project design and appraisal of the ICB-PAMSU project, benchmark indicators were established to determine readiness for moving on to the PAMSU phase of support. While work on some of the indicators is still in progress, the benchmarks have been satisfactorily met (see Annex 14 for complete details). Project Development ObjectiveThe development objective of the Protected Area Management for Sustainable Use Project (PAMSU) is the "Sustainable and cost-effective management of Uganda's wildlife and cultural resources." Sustainability is promoted through a combination of (1) providing funds for improving Uganda's ability to attract tourists to its wildlife and cultural heritage while, (2) encouraging cost-effective management strategies so as to reduce overall operating costs of the institutions managing these resources. The project consists of four components, each the responsibility of one of the four implementing agencies:1. Uganda Wildlife Authority: Maintain cost-effective and efficient wildlife management inside & outside Protected Areas2. Uganda Wildlife Education Center: Public awareness and knowledge in environmental and conservation issues created3. Ministry of Tourism, Trade and Industry: Develop the framework for the tourism sector of the economy to the maximum extent possible, consistent with the protection of environmental and cultural values4. Museums and Monuments: The Cultural Heritage of Uganda preservedA fifth component recognizes that the role of the Project Coordination Unit (PCU) in effective coordination and proactive management of the project is a capacity building effort which serves to develop itself and other agencies. Indicators of effective management have been set for the PCU to recognize this important role. The prior project - ICB-PAMSU - financed the institutional strengthening of the implementing agencies retained under PAMSU. PAMSU provides moderate amount of financing to each agency for equipment, training, vehicles, and incremental recurrent costs, along with those consultancies, primarily international, to encourage cost-effective implementation of plans devised under ICB-PAMSU. 3. Rationale for Bank's Involvement The World Bank has provided leadership and support for activities in the wildlife/tourism sector since the 1990's. The PAMSU project is a follow-on project from the ICB-PAMSU project which established the institutional capacity and the policy framework for more effective - 3 -  protected area management and nature-based and cultural tourism. Continued Bank support for the sector, through the PAMSU project, will consolidate the achievements made so far, and support the policy and institutional reforms that have been established over the past three years. Given the reduced state of the country's wildlife resources and the persistent problems of insecurity, growth in tourism, and it's ability to support conservation, is likely to be slow. The conservation and improved management of Uganda's biological resources will only be possible if the Bank and other donors provide the necessary support to protect the resource base in the short term and to gradually restore and improve it in the longer term. As one the GEF implementing agencies, the Bank can also access the GEF resources to support the conservation and management of globally significant biodiversity. 4. Description The project has four components, each implemented by agencies supported under the prior ICB-PAMSU. ICB-PAMSU provided funds for capacity building, especially strategic planning and organizational establishment. PAMSU provides logistical funds, equipment, and civil works for sustaining the agencies developed under ICB-PAMSU and to implement cost-effective strategies for achieving objectives identified within those strategic plans. Component 1: Sustainable Wildlife Management Agency: Uganda Wildlife Authority: The ICB-PAMSU project provided funding for establishing the Uganda Wildlife Authority and developing its internal systems, management team and governance structure. Also developed was the Strategic Plan for the agency, along with methodologies for facilitating development of Annual Operating Plans for each of the PAs that would implement the general strategies. PAMSU will provide logistical support, and fund equipment and civil works for UWA to implement elements of that strategic plan. With these funds UWA will implement the Protected Areas System Plan to rationalize and demarcate the boundaries of the national asset. The project supports the cost-effective management of these assets at the field level through logistical support, equipment and modest targeted civil works for the Parks and Reserves. Civil works will target staff accommodations in order to improve moral, effectiveness and reduce rent as burden on overall agency operating costs. At headquarters, the project will provide operating support and equipment for ongoing operations and refurbish the existing headquarters building in order to save rent costs. The GEF share of this component reflects the incremental cost of establishing and administering a protected area system that contributes to protection of global biodiversity but is larger than economically justified in the face of competing land uses and the basic needs of a large and relatively poor rural population. Financial sustainability of this higher central Government commitment may be built up over the project period through reform of park entrance and other user fees.The GEF funding of field operations is a higher share than of headquarters expenditures because the additional level of effort to maintain a PA system that ensures a comprehensive conservation and sustainable use of a fully representative set of Uganda's biodiversity is concentrated at the decentralized field level. This effort is focused on maintaining infrastructure, supporting surveillance and monitoring, and providing ongoing training in remote but biological important areas typically not benefiting sufficiently from ecotourism.Protected Areas System Plan (PASP)UWA, with support from the EU, and the ICB-PAMSU Project, initiated a process of assessing the current status of the PA -4 -  system with the aim of rationalizing it. The rationalization process involved revising and re-aligning the PA system to ensure that it (i) protects a high-quality, representative sample of the country's biodiversity heritage and ecosystems, (ii) is manageable in the long term, and (iii) provides a suitable basis for a sustainable tourism sector. The assessment process took about 24 months; it included ecological/biodiversity, economic and social criteria and involved participation of national and local governments and potentially affected communities. The GEF is called upon to support this activity in its implementation phase, to ensure inclusion of areas of globally significant biodiversity. Before the assessment was undertaken, comprehensive knowledge of the coverage of Uganda's protected areas and the nation's biodiversity represented in those areas (i.e.degree of replication, inclusion of all major ecosystem types, etc.) was not known. The PASP includes definition of appropriate boundaries, resolution of disputes outstanding and arising from the process, and identification of areas for pilot community conservation activiities. Implementation of the plan is identified as part of an expensive process of "capitalization" of the change towards an improved PA system in Uganda. Because of Uganda's commitments under the Biodiversity Convention, this is a much more comprehensive effort than would be warranted to meet Uganda's more limited objectives of maintaining only the most affordable of the existing PAs.Component 2: Environmental Conservation EducationAgency: Uganda Wildlife Education Center:UWEC's activities will create public awareness and knowledge about Uganda's wildlife as well as broader environmental and conservation issues. The project will provide logistical support, some equipment and modest construction funds for establishing new programs for visitor education especially school children. UWEC will reach out to school children around Uganda by funding both day time visits for nearby schools and an overnight residency program for children living more distant. New exhibits construction and maintenance highlighting Ugandan wildlife will be funded by the project to increase the range of educational messages of interest. Support will also be provided for improved animal holding and veterninary facilities for both the needs of UWEC and the Wildlife Department.GEF resources would support conservation education awareness programs; the captive animal facilities would be supported from IDA funds. The relatively high proportion of GEF assistance to this component recognizes that, in the very long term, better public awareness of Uganda's unique national biological heritage and the economic benefits of biodiversity conservation will build support and willingness to pay for conservation of these resources in the face of competing land-use and other development pressures.Component 3: Tourism FrameworkAgency: Ministry of Tourism, Trade and Industry: MTTI's mission and efforts within the project focus upon developing the tourism sector of the economy to the maximum extent possible, consistent with the protection of environmental and cultural values. The project will provide funding for logistics and equipment that will (1) establish a sustainable tourism framework based on policy development and enabling legislation; (2) provide for licensing and registration of operators within the sector to ensure quality; (3) develop accurate statistics on the sector; and (4) facilitate the improvement in human resource training. In addition to funding these activities the project will provide substantial funds for construction of a building for the Ministry of Tourism, Trade and Industry. Under this component, support will also be provided for the Wildlife Department in the MTTI. This support includes training, - 5 -  equipment, management support and technical capacity building to enable the Wildlife Department to carry out Uganda's responsibilities under relevant international treaties, and in particular to function effectively as the Management Authority for the Convention on International Trade in Endangered Species (CITES).The requested GEF assistance for this activity recognizes the need for additional training, surveillance and technical facilities, especially for strengthening, monitoring and regulating trade in live animals and animal and plant products listed under CITES.Component 4: Cultural HeritageAgency: Uganda Museums and Monuments Agency The project provides moderate operational funds, some equipment and civil works to continue the establishment of UMMA. These funds will finalize the former Department's transition to a sustainable semi-autonomous agency and facilitate expansion of the offerings at the Museum and the identification and development of remote antiquarian sites of significant importance to Uganda's cultural heritage. Sustainable Wildlife Management Environmental Conservation Education Tourism Framework Cultural Heritage Project Coordination Unit 5. Financing Total ( US$m) BORROWER 8 IDA 21 GLOBAL ENVIRONMENT FACILITY 8 Total Project Cost 37 6. Implementation Policy, Institutional and Legislative Framework for Project ImplementationPAMSU operates within the legislative framework established by the Uganda Wildlife Statute 1996 and supports the development of enabling legislation following revision of tourism policy currently in progress.Implementation will be the responsibility of 4 main implementing agencies, one for each component: Uganda Wildlife Authority, Ministry of Tourism, Trade and Industry, Uganda Wildlife Education Centre, and Uganda Museums and Monuments Agency.Uganda Wildlife AuthorityUganda Wildlife Authority was established in 1996 with the mandate of: ensuring the sustainable management of wildlife conservation areas; and establishing policies and procedures to manage and regulate the use of wildlife outside protected areas. Subject to the approval of the Protected Areas Assessment (the national protected area systems plan) currently before Parliament and expected before project commencement, UWA is responsible for 10 National Parks, 13 Wildlife Reserves and technical oversight of 5 Community Wildlife Areas.UWA is under the general supervision of the Minister. The governing body is the Board of Trustees appointed by the Minister in accordance with the Schedule to the Uganda Wildlife Statute. This provides for 21 members, although in practice some of these positions have been vacant. ICB-PAMSU supported board development through preparation of formal TORs which have been adopted by the ministry and a procedures manual to guide Board work. This work resulted in recommendations to reform the composition of the board to make it more appropriate to its TORs. This requires an amendment to the Schedule to the Statute which is currently being considered by cabinet. The term of the present Board has expired and it is expected that a new Board will be in place by project - 6 -  commencement.ICB-PAMSU supported a number of measures to strengthen the institutional capacity of UWA. These included: the appointment of an internationally recruited Executive Director on a three year contract to oversee UWA's development, the provision of an institutional contractor to develop financial management systems; the development of a training plan (not yet implemented) and the development of a strategic plan.Under the USAID supported Action Plan for the Environment project, UWA has been developing capacity for protected area systems planning and is currently improving its ability to prepare, implement and monitor annual operations plans at HQ and field level.Uganda Wildlife Education CentreThe Uganda Wildlife Education Centre is legally established as a Trust with a 9 member Board appointed by the Minister, and registered in Uganda. UWEC has been successful at attracting a number of private sector donors. This donations are generally restricted to the development of new exhibits rather than running costs, which have been met by GoU subvention, self-generated funds (mostly admission fees) and ICB-PAMSU.Until 2000, UWEC had an expatriate Director funded by USAID. He is now acting as a technical advisor.Ministry of Tourism, Trade and IndustryThree Departments, all falling under the Commission of Tourism, Wildlife and Antiquities are supported by the project. These are: Tourism Development, Registration and Licensing, and Wildlife.Uganda Museums and Monuments AgencyA decision to transform the Department of Antiquities and Museums into a semi-autonomous agency was taken by the Ministry of Public Services in July 2001 (after several years of discussion as to whether to transform it into an autonomous authority by act of Parliament.) The GoU has engaged consultants to assist in the transformation, including the preparation of strategic and business plans. UMMA will be seen by a representative 8 member advisory board and managed by a chief executive.PCUThe Project Coordination Unit (PCU) of the MTTI has been responsible for coordination and oversight of ICB-PAMSU and for the preparation of PAMSU. Its responsibilities include donor liaison, program identification, procurement of goods and services and contract management. To benefit from economies of scale, build on existing capacity and reduce the administrative burden on the implementing agencies, the PCU will continue to play this role during PAMSU.The PCU will have overall responsibility for procurement (planning and implementation), disbursement, auditing and reporting, and also for ensuring that each Implementing Agency (IA) submits acceptable Annual Work Plans and progress reports in a timely fashion. Based on inputs from the IAs, prior to project effectiveness, the PCU will prepare a Procurement Plan for the whole project, and a Work Plan for the first six months of the project, to be reviewed and agreed by IDA. Every six months thereafter, the PCU will obtain from the IAs and forward to IDA for review, a Work Plan for the next six months and an update of the Procurement Plan if needed. The PCU will also submit an annual progress report to the Government and the Bank, covering both its own activities and those of each IA. At its discretion, and with the prior agreement of the Bank, the PCU may delegate selected administrative and implementation responsibilities to any given IA. This will be based on the Project Director's assessment that the agency is able to undertake this activity in accordance with Government and World Bank requirements, and the PCU will retain overall responsibility to ensure that these requirements are met. The project will support TA, equipment and other operating costs for the PCU. Under the TA category, the project will support the positions of Director, Coordinator, Procurement Specialist and Accountant along with support staff. This is in recognition of the demands -7 -  which the complexity of the program (numerous IAs, each with its own objectives, program of activities and time frames) will put on the PCU. The project will also support a modest allocation of unprogrammed short-term TA funds to meet unforeseen needs of the PCU or any of the IAs. Equipment to be procured includes a vehicle to be used by the PCU for project coordination purposes, and the PCU will also make it available to the other IAs for project-related purposes as and when required. Operating costs will include rental of office space as well as other routine costs of vehicle operation, materials and supplies, travel, etc. 7. Sustainability The project is designed to ensure sustainability of the institutions developed under ICB-PAMSU by providing modest operating finances to continue operations and to implement plans designed. The result of this strategy will be a more cost-effective and sustainable management of Uganda's wildlife resource; one able to prioritize management of the existing PA system, operate that system efficiently and take full advantage of any tourism growth that might emerge from promotion of Uganda's wildlife heritage. The project promotes sustainability in three ways:1. Designed to ensure institutional sustainability: The GoU has established UWA, UWEC, and soon UMMA as semi-autonomous agencies in order to reduce their dependence on government subventions and thereby promote their financial sustainability. ICB-PAMSU provided funding for the initial steps required by these organizations: institutional "culture" change, strategic and business planning, and development of appropriate management systems and staff with the skills and incentives to implement them. PAMSU, by assisting these institutions to institutionalize and solidify gains made under the previous project will contribute directly to their sustainability.2. Designed to move towards financial sustainability: A new macro-economic operating environment has emerged since the design, in 1996, of PAMSU; tourism's return has been and is likely to be slower than anticipated while, though the government's overall economic condition has improved, its financial allocations are attuned to protection of national boundaries and economic growth. The institutions included within PAMSU must realign their strategic objectives, focusing upon cost-effective management of resources and sustainable investment strategies. The project is designed to encourage continued development of tourism opportunities, policy and infrastructure as a necessary condition for growth with the return of tourism. At the same time it recognizes that this process may be long and the period prior to substantial tourist return may be one of limited resources. The UWA will be encouraged, through with minimal and focused funding, to develop the most cost effective strategies for sustainable fulfilling its role as the manager of the wildlife resource. Key to this effort is a yearly monitoring mission tasked to support management achieve its objectives in developing and implementing cost effective strategies. 3. Designed to support environmental sustainability: The futures of PAs and wildlife resources and of the tourism industry are inter-dependent, as the PAs and wildlife provide the main basis for tourism. As the guardian of Uganda's natural and wildlife heritage UWA must sustain the wildlife resources as a necessary condition for any recovery of tourism. Ensuring effective management of these resources is essential to achieving both conservation and economic growth objectives. The project will also contribute to long-term sustainability by supporting an ongoing process of assessment and rationalization of the existing PA system, aimed at increasing - 8 -  operational efficiency and reducing costs. Under ICB-PAMSU the management of some adjacent Parks and Reserves has been consolidated into Zone management systems for both ecological and cost-saving reasons. PAMSU funding is necessary to continue the initiative and to consider how existing wildlife resources might most effectively be managed. 8. Lessons learned from past operations in the country/sector Lessons from ICB-PAMSUICB-PAMSU was intended to provide sufficient institutional capacity for implementing PAMSU. Experience with capacity building under ICB-PAMSU suggests implementing agencies have not yet developed the capacity necessary to effectively absorb a substantial investment program. This was in part a result of the relatively short timeframe allowed. Although PAMSU makes limited new initiatives in capacity building, it anticipates that the implementing organizations will continue to put effort into developing capacity, and adapting their plans to current circumstances.Much of the 'strategic' planning undertaken in ICB-PAMSU has taken the implementing organizations further from, rather than closer to financial sustainability. In part this is a consequence of the circumstances under which the plans were prepared-as conditionalities for a follow on investment project. The plans prepared have focused operational efficiency more than strategic issues. Genuinely strategic decisions have not resulted from the participatory processes used to prepare the plans. As an example, one of the more successful inputs to UWA was the contracting out of the financial management function. This was decided on as part of ICB-PAMSU design. This kind of decision needs to be taken at the most senior level in the face of external pressure. PAMSU places limited emphasis on the preparation of further strategic plans-the principle exception being the 'business plan' proposed for UWA. Careful consideration will be given to the process used to prepare this plan to avoid the pitfalls described. PAMSU places emphasis on translating plans into operations, improving cost effectiveness, and monitoring implementation.Lessons from Bank projects in Kenya's tourism and wildlife sectorThe experience with comparable Bank supported wildlife sector reforms in Kenya was drawn upon in the formulation of ICB-PAMSU and is still relevant. The sector received assistance from the Bank under the Wildlife and Tourism project (1976-1986) and the "Protected Areas and Wildlife Service" (PAWS) project (1992-2000). The Implementation Completion Report and Project Audit attributed the failure of the earlier project primarily to an inadequate policy framework, institutional failures and a lack of Government commitment to the project's objectives, as well as to the Bank's failure to hold firm on the agreed conditionalities. By contrast, the success of the PAWS project, which has had a major positive impact in reducing commercial poaching and improving the infrastructure and management of Kenya's PAs, demonstrates the benefits of ensuring that these issues are addressed up front. At the same time, the slow progress of the parastatal Kenya Wildlife Service in moving toward a business-like organizational culture and financial sustainability, holds important lessons for the Uganda Wildlife Authority, which started from a similar situation and is aiming for similar objectives. PAWS showed that a major investment in infrastructure does place substantial demands on scarce management time and suggested that, as here, relatively modest such investments are more appropriate.Other lessons from Bank tourism and wildlife projectsOther lessons being taken from Bank-assisted projects and other experiences around the world, include the importance of building support for conservation at a political -9-  level and among communities adjacent to PAs, and the need to encourage collaboration among institutions rather than building parallel capacity in each. 9. Program of Targeted Intervention (PTI) N 10. Environment Aspects (including any public consultation) Issues N/A 11. Contact Point: Task Manager Nathalie Weier Johnson The World Bank 1818 H Street, NW Washington D.C. 20433 Telephone: 202-473-3765 Fax: 202-473-8185 12. For information on other project related documents contact: The InfoShop The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 458-5454 Fax: (202) 522-1500 Web: http:// www.worldbank.org/infoshop Note: This is information on an evolving project. Certain components may not be necessarily included in the final project. This PID was processed by the InfoShop during the week ending November 30,2001 - 10 -