Mozambique - Transfrontier Conservation Areas and Tourism Development Project - SUPPLEMENTAL LOAN

25633 July 1, 2003 Integrated Safeguards Data Sheet (Initial) - Section I - Basic Information Date ISDS Prepared/Updated. 01/07/2003 A. Basic Project Data (from PDS) I.A. I. Project Statistics Country: MOZAMBIQUE Project ID P071465 Global Supplemental ID: P076809 Project: Transfrontier Conservation Areas and Tourism Task Team Leader Robert A Clement-Jones Development Project Authonzed to Appraise Date: July 15, 2003 IBRD Amount ($m): Bank Approval: April 17, 2004 IDA Amount ($m) 20.00 Global Supplemental Amount (Sm): 10.00 Managing Unit: AFTES Sector Forestry (50%); General agnculture, fishing Lending Instrument: Specific Investment Loan (SIL) and forestry sector (40%); General mdustry and Status: Lending trade sector (10%) Theme. Biodiversity (P); Other environment and natural resources management (S), Environmental policies and institutions (S); Other financial and Ipnvate sector development (S) I.A.2. Project Objectives (From PDS) The Mozambique Transfrontier Conservation Areas and Tounsm Development Project (TFCATDP) builds on the expenence of the first GEF-funded TFCA Pilot and Institutional Strengthening Project aimed at assisting Mozambique to take advantage of unique opportunities in biodiversity conservation, tounsm and rural development. TFCATDP development objective is: to obtain sustainable livelihood and economic development benefitsfrom the well-managed exploitation of the Mozambique's natural resources. Mozambique's ecosystems and biodiversity are globally significant in terms of both the scale of the resource (surface area) and the nchness of the system and species diversity. Mozambican ecosystems are high in endemism and have relatively high quality habitat Given the regional nature of many of these ecosystems, a major challenge for the project will be to further promote effective regional cooperation among Mozambique and her neighbors aimed at integrated ecosystem management. The global objective is to ensure the sustainable management andprotection of Mozambique's global biodiversity assets and critically important transboundary ecosystems through integrated ecosystem management. I A.3. Project Descripton (From PDS): The project builds on lessons learned from the first phase of the TFCA program (see Section D3). Dealing with the multiple challenges requires making an intensive and long term commitment. In conservation tems, timescales should be calibrated m decades rather than years Building on the accomplishments of the pilot project (TFCAI), the next five years will: . Consolidate the gains made so far in terms of intemational agreements, leading to the formal adoption of intemational treaties for Limpopo, Lubombo, and Chimanimani, and the development of new  2 ones for Niassa and ZIMOZA. Formal agreement or signature is really the first step in the process; * Shift the focus towards Provincial level planning and implementation through new institutional structures such as the Elephant Coast Development Agency, strengthened Provincial TFCA/tounsm units, and the application of new planning instruments such as Strategic Environmental Assessments; * Tum the TFCA planning exercises already completed or underway in Limpopo, Lubombo and Chimanimani into implementable investment and management programs, involving infrastructure, field level conservation, community demarcation programs, zoning and other activities; * Implement the policy changes for the private sector and communities through a scaled up program of land demarcation and titling for communities in the TFCAs and through an open tendering process for tounsm concessions, and development of community/private sector joint ventures; * Extend the TFCA concept and planning exercises to the Niassa and ZINOZA areas, * Develop and implement a sustainable Tourism Development Framework * Establish a long term monitoring and evaluation framework To accomplish the above, the project will consist of six complementary components as follows: 1. Institutional and Policy Development This component will build on the expenence of the pilot project, namely to ensure that the policy and institutional environment evolves as the TFCA process is implemented. Focus will be on capacity building at all levels through. * Strengthenig of TFCA Unit; * Establishment of regional TFCA ecosystem planning agencies/authonties; * Preparation of integrated strategies for conservation and tounsm (national , provincial, distnct, sub-regional); * Capacity strengthening of Ministry of Tourism at National and Provincial levels (Provmcial Tounsm Facilitation Commissions established), * Policy and legal review of wildhfe, forestry and land management and other relevant policies * Promotion and implementation of private sector tendering, concessions for tounsm development and a framework for community-private sector joint ventures; * Implementation of strategic environmental assessments and strengthening capacity for environmental assessments; 2. Ecosystem Planning and Management This component will provide resources to initiate or strengthen conservation area management in the TFCAs based on land-use and development plans, integrating biodiversity conservation and ecosystem management. Activities will be tailored according to the state of preparedness and the level of planning that has already been accomplished (see Annex 2 for more detailed treatment of TFCAs) The project will carry forward activities in the three original TFCAs of Lubombo, Greater Limpopo and Chimanimani, and will start work on the new ones of ZIMOZA and Niassa/Cabo Delgado. The project will provide logistical and other support for eco-system management, includung direct management of core protected areas, based on a process which will (i) determine and map all existing land uses, the distribution of communities, analysis of trends and livelihoods in the TFCAs, mapping of private sector and GoM interventions, and the issues that threaten sustainable biodiversity conservation, and propose remedial measures; (n) create a collaborative framework with comprehensive stakeholder identification, review of existing collaborating mechanisms relating to TFCA development, identification of shortfalls and recommendations for addressing these (iii) identify, map, and priontise key biota using various cntena including, national, regional, and international importance, contiguity, fragmentation, and degree  3 ISDS of current and future threats; (iv) identify/zone and map blodiversity hotspots, and zone areas of potential tourism development, including recommended levels of mfra- and supra-structures development, and indicate national and regional lmkages that would promote sustainable marketing of the identified tounsm attractions; (v) develop a GIS decision-making framework with which to monitor management and sustainable use of tefrestnal resources and aquatic resources of the numerous nvers in the area 3. Community Empowerment and Private Sector Partnershio This component will focus on providing communities the tools and assets to participate as full partners in the TFCA process It will include: * Community mobilization, capacity building and awareness raising, * Development of Community Action Plans; * Demarcation and titling of community areas; * Assistance to commumities to negotiate tounsm and other Joint ventures with the pnvate sector, * Communmty investment fund to provide resources for communities to participate in joint ventures. 4. Infrastructure This component will consist of basic infrastructure (e.g. roads, park facilities) for the core pnonty terrestrial and manne protected areas in the TFCAs, and basic infrastructure requirements linlong community and pnvate sector initiatives to TFCA cross-border infrastructure mvestments. Designing mfrastructure requirements will be done in the context of multi-sectoral planning such that public investment prionties are aligned with those of TFCAs where possible to ensure complementanty and prevent duplication or conflict (e g. m road alignment or design) This component will provide ongoing technical support for tounsm infrastructure planning in the TFCAs 5. Sustainable Tourism Framework (STF) This component will consist of the design and implementation of a Sustainable Tounsm Framework which will focus on reinforcing and facilitating the role of communities as investors in sustainable tounsm development. The process will involve institutional and stakeholder analysis including local communities, NGOs, private sector and govemment at different levels The STF will focus on the creation of local level tourism planning processes, on which provincial, national and regional plans will be based. Local communities and authorities will play a leading role in defining the tounsm and conservation assets of the TFCAs, and how these assets will be conserved or sustainably managed. This component reflects the emphasis that the Govemment is placing on sustainable tounsm through the creation of the National Directorate for Conservation Areas (DNAC) in the Mmistry of Tounsm and the approach adopted by the newly-created Tourism Facilitation Commission and Ministry's efforts to decentralize decision-making to the Provincial authonties. 6. Research. Monitoring and Evaluation  4 ISDS Monitoring and Evaluation will be a fully integrated process, done on a regular basis, involving ecological, social and policy monitonng A dedicated monitonng plan with venfiable indicators will be established during the preparation phase as part of this component Consultants will be contracted to support the monitoring process and evaluate and consolidate monitoring data into semi-annual monitonng reports. These reports will then form the basis of the semi-annual review meetings. In addition, the consultants will conduct independent mid-term and end-term beneficiary assessments within the TFCAs. These will serve as the basis for mid-term and completion reviews I A.4 Project Location. (Geographic location, information about the key environmental and social characteristics of the area and population likely to be affected, and proximity to any protected areas, or sites or cntical natural habitats, or any other culturally or socially sensitive areas.) Context Mozambique's natural resources are of global interest and significance Natural resource based activities - agnculture, fisheries, mming and tourism - contnbute about 45 percent of GDP and 70 percent of total exports. Forestry and forestry related activities, such as the production of charcoal and timber contnbute far less, but play a significant role in the local economy, and m the degradation of the natural resource base. Traditional energy (largely woodfuels) still contnbutes more than 90 percent of Mozambique's total energy consumption. The resource base is seriously threatened by population growth, extreme poverty, poor management and utilization and lack of financial resources. Desertification affects more than half of the ten provinces, and 20-30 percent of Mozambique's population lives on fragile land. Coastal erosion is a major problem and has nearly destroyed some townships and threatens others In particular, the uncontrolled exploitation of the natural resource base, in the absence of an adequate planning and implementation of the regulatory framework represents a serious threat to the sustained economic growth that the government is seeking. At the same time, it is becomung increasingly recognized that there a lack of focus on the part of the govemment and the international community on addressing these environmental issues, as the emphasis increases on creating rapid economic growth as the main weapon against poverty. The link between environmental degradation and poverty has not been clarified or absorbed into the political decision-making process. Although weak environmental management is an issue threatening sound pnvate sector investment, this perception is unlikely to prevail under the present circumstances. Furthermore, the essentially exploitative nature of many of the larger scale pnvate sector investments (e.g, gas, mining, coastal tounrsm, energy), requires even greater vigilance in temis of ensurung both social and environmental sustainability. The best approach to dealing with this situation may be to focus less on the negative consequences of present rates of environmental degradation and poor management, and more on a proactive approach in mainstreaming environment into the development process Demonstrating that sound environmental management can play a significant role in facilitating private sector investment and stimulating growth will require that environmental concerns are addressed in a sound development-planning framework designed to attract high-quality private sector investment. At the same time, conservation pnonties need to be recognized, and the intrinsic value of the maintenance of the country's high biodiversity should not be lost. Not all high value conservation areas will be able to be justified for management and protection on economic grounds. Blodlversity Mozambique is part of the Zambezian Biogeographic Region, a region known for its high degree of blodiversity. The country's extensive coastline and large land area makes it unique within the  5 Biogeographic Region as it includes such a wide variety of ecosystems, including 22 vegetation/habitat types. Within this region are areas of particularly outstanding biodiversity from a global perspective, such as the Gorongosa Mountain Rift Valley Complex, Chenngoma Plateau, Zambezi Delta grasslands and swamps, Great Inselberg Archipelago, Chimanimam Massif, Maputaland Centre of Endemism, Coastal Barrier Lakes, Pebane Evergreen Coastal Forests of Zambezia, and Lake Malawi/Niassa/Nyasa Forest cover of nearly 20 million hectares has been identified as having high and medium potential for forestry production. As a consequence of the long period of armed conflict, together with the vast size of the country, lack of trained personnel and operational support, large areas of Mozambique are poorly documented from a biological perspective. The current conservation status of Mozambique's flora is still poorly understood: of the 5500 plant species recorded for Mozambique, some 247 plant species in 67 families may be of conservation concem. Areas with large numbers of endemic plants include Afromontane areas (Chimanimani TFCA and Gorongosa mountain) and southem Mozambique (Lubombo TFCA) Mozambique's rich plant biodiversity is also a critical resource for traditional medicines, the pnmary first (and often only) medical treatment for the vast bulk of the population. The fauna of Mozambique aside from mammals and birds is also poorly documented. Moz is charactenzed by a nch diversity of mammal fauna with 211 terrestrial mammal species. Large mammals have been sharply reduced.. Gazetted Wildlife Areas cover 87,000 sq km, or about 11% of the country. With the exception of Niassa Reserve (which has three endemic species), these areas suffered drastic declines in wildlife, although signs of regeneration are now seen in several of these areas, notably Gorongosa, Maputo Elephant Reserve, and the National Parks of Banhine and Zinave. Mozambique has the third largest coastline in Afnca, with a diversity of ecosystems including estuanes, wetlands and coastal lakes. The Coastal Zone is considered unique in the East African Manne Region in terms of the quality, diversity and species nchness of its habitats These ecosystems support 18 species of manne mammals, mainly dolphins and whales, and Mozambique is thought to have the largest population of dugongs along the East African coast (these are, however, extremely threatened) It is the only country in the region where all five species of threatened and endangered sea turtles occur and breed. Local populations are exceptionally dependent on the country's biodiversity to fulfil their daily survival needs. Wildlife provides a major source of protein to about 70% of the population Woodlands and mangroves are an essential source of construction matenal for housing and fishing boats, and fodder for domestic animals ( particularly in times of drought). Project Location To a large extent the location of intervention has been determined in the first phase of the Project (TFCAI). TFCA processes are well underway in the Greater Limpopo and Chimanimani TFCAs, whereas in the Lubombo TFCA international protocols have been signed, but the degree of complex and multifanous interventions in this area have delayed focused and concerted action. All these three TFCAs will continue to be supported under the Project. Two new areas have been selected for intervention. the ZIMOZA Transboundary Natural Resource Management Area, which has been facilitated to date by IUCN-ROSA, and the Lake-to-Coast Biodversity and Tourism Comdor (LCBTC) in the north. Both these areas have been chosen for different reasons The process of preparing ZIMOZA has been undertaken at both the community and central levels, focusing on the participation as the Distnct Administrative level of districts in the countnes of Zimbabwe, Mozambique and Zambia. As a result of thds process, there has been strong community buy-in, and the foundations for a successful TFCA have been laid. The LCBTC covers a vast area, but which is already subject to the intervention of the SDI process, in this case falling under the Mtwara and Nacala Development Corrdors Planning for ecosystem management, biodiversity conservation and tounsm development in the LCBTC will add  6 ISDS value to the SDI process, and ensure that environmental needs are well balanced with development At the same time the investments foreseen in infrastructure in the SDIs (roads, airports, harbors) will greatly enhance the viability and sustainability of the LCBTC. The MITUR has defined a regional tourism development strategy in the north as one of its major prionties. Local populations living within the broadly defined Transfrontier Conservation Areas along Mozambique's intemational boundanes will be the main target population. These populations occur in the provinces of Maputo, Gaza, Manica, Tete, Niassa and Cabo Delgado. Less directly, Inhambane, Nampula, Zambezia and Sofala provinces are also expected to benefit through the development of tourism comdors associated with TFCA development. Local populations around protected areas falling within the TFCAs will benefit through the establishment of more clearly defined access nghts, land titling and the development of sustainable economic activities. These protected areas are Maputo Special Reserve, Limpopo NP, Banhine NP, Zinave NP and Niassa Reserve More protected areas are expected to be developed under TFCA2. Additionally, the Project will target local private sector and develop a set of incentives for joint venture arrangements between international private sector, local entrepreneurs and local communities. B. Check Environmental Classification: B (Partial Assessment) Comments' The project is given a Category B rating since the project will be designed to provide a framework for environmentally sound planning processes Extensive public consultation processes considered essential to underpin participatory planning for ecosystem management will be triggered. Project preparation will design the SEA processes to be carried out as part of project implementation. These processes will be set out in a disclosable Environmental Management Framework, pnor to project appraisal All investments financed by the project will be subject to individual environmental assessments according to the EMF. The project will also strengthen capacity and processes in Mozambique for environmental assessment. Major land use changes are not foreseen. However, even without the project, the coming years will see infrastructure and private sector development in certain areas which could lead to the expansion of tounsm nodes, population increase, and in-migration These trends are already being observed in certain coastal areas The challenge will be to ensure that the project induces positive change, and encourages sustainable pro-poor tourism. C Safeguard Policies Triggered (from PDS) (click on X for a detailed desciption or click on the policy number for a brief description) Policy Triggered Environmental Assessment (OP 4.01, BP 4.01, GP 4.01) 0 Yes 0 No 0 TBD Natural Habitats (OP 4.04, BP 4.04, GP 4.04) * Yes 0 No 0 TBD Forestry (OP 436, GP 436) * Yes 0 No 0 TBD Pest Management (OP 4.09) 0 Yes * No 0 TBD Cultural Property (OPN 11.03) 0 Yes * No 0 TBD Indigenous Peoples (OD 4.20) 0 Yes * No 0 TBD Involuntary Resettlement (OP/BP 4.12) 0 Yes 0 No 0 TBD Safety of Dams (OP 4.37, BP 437) 0 Yes * No 0 TBD Projects in International Waters (OP 7.50, BP 7.50, GP 7.50) 0 Yes 0 No 0 TBD Projects in Disputed Areas (OP 7.60, BP 7.60, GP 7.60)* 0 Yes * No 0 TBD  ISDS Section 11 - Key Safeguard Issues and Their Management D. Summary of Key Safeguard Issues Pleasefill in all relevant questions If information is not available, describe steps to be taken to obtain necessary data II.D. I a. Descnbe any safeguard issues and lmpacts associated with the proposed project. Identify and describe any potential large scale, significant and/or irreversible impacts The TFCA and Sustainable Tounsm Development Project is a major conservation project which is focused on sustainable use of Mozambique's immense natural habitat estate. Its primary objective is that of institutionalizing ecosystem management, and mainstreaming it mto development planning processes. As such it is expected to have significant environmental benefits relative to a no-project situation The project also has the objective of promotung environmentally sustainable tounsm and other sustainable land uses such as game farmung. The project will aim to foster the development of environmental management and spatial development plans that will underpin the development of the TFCAs The project will operate in the context of a highly dynamic socio-economic and political landscape The Government of Mozambique is keen to promote pnvate sector investment and is also responsible for a sizable public sector investment program, so the project will require adaptable expenential leaming processes rather than blueprints. There are two levels at which the TFCA process will operate by * influencing current and proposed investment plans - both public and private - towards more environmentally and socially sustainable pattems. This could mean realignment or repositioning of infrastructure investments undertaken by the Govemment or the pnvate sector; * actively promoting investments which maximize opportunities for sustainable development in the TFCAs. This could mean supporting the development of infrastructure whuch is essential for ecological management or for sustainable tounsm development. These investments will not be fully defined dunng the course of project preparation, except in those areas where planning is sufficiently advanced (for example under TFCAI) Large-scale impacts such as major land use change will not be induced by the project. The development of Mozambique's coastline and intenor is expected whether or not the project is implemented. The project is intended to provide a framework for promoting sustainable development, through an ecosystem management approach. The project is also not expected to finance or induce major uireversible impacts Dealing with these challenges will require a two-pronged approach: * Strategic Environmental Assessments (SEA) would be camed out for the proposed TFCAs as part of the spatial planning process. SEAs are considered more appropnate for the large areas where boundanes remain undefined and where a number of different development activities will be taking place The SEAs will support a zoning process and help identify prionty sites for private sector investment. The SEA processes will identify mitigation activities most likely in respect of the development of tourism nodes, unregulated access to natural resources, zoning and other factors. * Within the broadly designed zones and pnonties set by the SEAs, specific public and private investments will emerge requring project specific environmental assessments  8 ISDS Major involuntary resetlement of populations in Mozambique is neither desirable nor necessary, and current Govemment policy is that involuntary resettlement should not take place. The Govemment and other stakeholders are in the process of determning how best to guarantee nghts for communities currently living within protected areas These rights may apply to land or to other forms of exploitation such as forest and non-timber products, hunting rights etc. Project preparation will therefuie include the elaboration of a Resettlement Process Framework designed to ensure that any project intervention takes full account of the rights of communities living within or around protected areas. A Resettlement Policy Framework will also be prepared to cover the as-yet-undetermmed eventuality that resettlement may be necessary in certain areas. nI D. I b Describe any potential cumulative impacts due to application of more than one safeguard policy or due to multiple project component TBD 11 D Ic Descnbe any potential long term impacts due to anticipated future activities in the project area. As mentioned above, the areas in question are very large and are subject to an enormous range of activities, including mining, forestry, electncity, roads, coastal development, even gas pipelines. However, these are not project activities Rather the project is designed to improve the way in which ecosystem management is carried out, with emphasis on the whole spectrum of planning and development processes taking place m the areas concemed. Il.D.2 In light of I, describe the proposed treatment of altematives (if required) Explicit analysis of altematves has not yet been undertaken. However, from an environmental perspective it is anticipated that the with project scenano would be more beneficial than the without project scenario. Il.D.3. Describe arrangement for the borrower to address safeguard issues Preparation of a disclosable Environmental Management Framework, a Resettlement Process Framework and a Resettlement Policy Framework before appraisal II.D 4. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. The key stakeholders for the project are communities, the pnvate sector, govemment at all levels (district, provincial and national), neighboring countnes (for mternational agreements, shared unfrastructure, joint tourism planning), NGOs and other donors Project preparation will involve a participatory process designed to ensure that the key stakeholders are integrated in both preparation and implementation of the program Precise details on how this process will evolve are not yet available. E. Safeguards Classification (select in SAP). Category is determuned by the highest impact in any policy Or on basis of cumulative impacts from multiple safeguards Whenever an individual safeguard policy is triggered the provisions of that policy apply. SI. - Significant, cumulative and/or irreversible impacts, or significant technical and institutional risks in management of one or more safeguard areas [X] S2. - One or more safeguard policies are triggered, but effects are limited m their impact and are techrucally and institutionally manageable [} S3. - No safeguard issues [ ]SF. - Financial intermediary projects, social development funds, conimunity driven development or simular projects which require a safeguard framework or programmatic approach to address  ISDS safeguard issues. F. Disclosure Requirements Environmental Assessment/Analysis/Management Plan: Expected Actual Date of receipt by the Bank 9/15/2003 Date of "in-country" disclosure 10/15/2003 Date of submission to InfoShop 11/3/2003 Date of distributing the Exec. Summary of the EA to the Executive Not Applicable Not Applicable Directors (For category A projects) Resettlement Action Plan/Framework Expected Actual Date of receipt by the Bank 9/15/2003 Date of "in-country" disclosure 10/15/2003 Date of submission to InfoShop 11/3/2003 Indigenous Peoples Development Plan/Framework. Exoected Actual Date of receipt by the Bank Not Applicable Not Applicable Date of "in-country" disclosure Not Applicable Not Applicable Date of submission to InfoShop Not Applicable Not Applicable Pest Management Plan: Expected Actual Date of receipt by the Bank Not Applicable Not Applicable Date of "in-country" disclosure Not Applicable Not Applicable Date of submission to InfoShop Not Applicable Not Applicable Dam Safety Management Plan Expected Actual Date of receipt by the Bank Not Applicable Not Applicable Date of "in-country" disclosure Not Applicable Not Applicable Date of submission to InfoShop Not Applicable Not Applicable If in-country disclosure of any of the above documents is not expected, please explain why. Slened and submitted by Name Rf% Date Task Team Leader: Robert A. Clement-Jones t 6 ), Zo Project Safeguards Specialists I Robert A. Robelus/Person/World Bank Project Safeguards Specialists 2. KristjpM arsdottXr/Personftrld Bank Project Safeguards Specialists 3: QLAY- 2|' 2ooW ADproved by: Name Date Regional Safeguards Coordinator. Charlotte S Bingham Comments , 3 Sector Manager/Director Richard G. Scobey Comments