Mozambique - Transfrontier Conservation Areas and Tourism Development Project

Page 1 INTEGRATED SAFEGUARDS DATASHEET APPRAISAL STAGE I. Basic Information Date prepared/updated: 06/08/2005 Report No.: AC1518 1. Project Statistics Country: Mozambique Project ID: P071465 Project Name: Transfrontier Conservation Areas and Tourism Development Project Task Team Leader: Jean-Michel G. Pavy GEF Focal Area: B-Biodiversity Global Supplemental ID: P076809 Estimated Appraisal Date: May 16, 2005 Estimated Board Date: October 15, 2005 Managing Unit: AFTS1 Lending Instrument: Specific Investment Loan Sector: Forestry (50%);General agriculture, fishing and forestry sector (40%);General industry and trade sector (10%) Theme: Biodiversity (P);Other environment and natural resources management (S);Environmental policies and institutions (S);Other financial and private sector development (S) IBRD Amount (US$m.): 0.00 IDA Amount (US$m.): 20.00 GEF Amount (US$m.): 10.00 PCF Amount (US$m.): 0.00 Other financing amounts by source: BORROWER/RECIPIENT 0.77 JAPAN: MINISTRY OF FINANCE - PHRD GRANTS 3.72 LOCAL SOURCES OF BORROWING COUNTRY 0.75 5.24 Environmental Category: B - Partial Assessment Simplified Processing Simple [X] Repeater [] Is this project processed under OP 8.50 (Emergency Recovery) Yes [ ] No [X] 2. Project Objectives The Development Objective of this project (PDO) is to Increase community-revenues from growth in environmentally sustainable tourism in three TFCAs. The project's Global Environment Objective (GEO) is to Increase the area, connectivity, & effectiveness of biodiversity conservation in three TFCAs. 3. Project Description Building on the achievements of the first phase, Component 1 will strengthen the enabling environment for TFCAs. It will help create the policy, legal and institutional framework for the GOM to implement its strategic choices: i.e. improve regional collaboration for management of transboundary resources, promote interagency collaboration and vertical linkages between central and decentralized governments, build the capacity of public sector institutions at all level and communities to manage biodiversity and natural resources, and to form productive partnerships with the private Page 2 sector. Community land and natural resource ownership and use rights will also be addressed. The TFCATDP will finance consultation, workshops, study tours as well as edition, publication and dissemination expenditures to help GOM draft, approve and diffuse (1) a national conservation policy, (2) legal framework for TFCA, protected area and wildlife, (3) guidelines for tendering conservation concessions, (4) the protected area and wildlife institutional reform, (5) the regulation of the new tourism law, (6) guideline for tendering tourism concessions, (7) four transfrontier agreements. Component 2 : Integrated District Development Planning ($2.26 M) - IDA: $0.75 M; GEF $0; PHRD $1.44 M The establishment and management of TFCAs is centered around participatory land use and economic planning that allow for a balance between the conservation of biodiversity and the sustainable use of natural resource assets in a defined spatial development context. The success of the TFCAs will depend on the degree to which (1) these plans are mainstreamed into the GOM?s economic development plans and (2) the commitment and capacity of GMO and its partners at the local and central level to implement these plans. In TFCATDP a proactive approach to integrated planning at the district level is adopted to increase the chance of success and sustainability of the TFCAs. The process identified is called Integrated District Development Planning (IDDP) and focuses on defining and implementing a series of practical steps to ensure that biodiversity and natural resource based assets are mainstreamed in District Development Plans (DDP). Component 2 is divided into two Subcomponents: (2.1.) National capacity building and stock taking, and (2.2.) IDDP per se. Subcomponent 2.2. will follow these steps: (1) Capacity building and initial consultation at provincial, district and local levels; (2) District diagnostic, including (a) basic data gathering and consolidation, (b) tourism planning, (c) conservation priority setting; (3) Spatial Development Planning; and (4) Production, adoption and diffusion of the DDPs. Component 3 : Community and Private Sector-Led Tourism Development ($12.07M) - IDA: $7.70 M; GEF: $2.20 M; PHRD $1.94 M The IDDP sets the foundation for sustainable tourism development in the TFCAs and key tourism districts. Component 3 is designed to both develop the capacity of the tourism sector (government, communities and the private sector) to participate in the preparation and implementation of the IDDPs, and in the formulation of the tourism master plans for key tourism districts that will be informed by the IDDP. The IDDP process will guide the identification of tourism land for private sector investment. This component will support MITUR to establish a comprehensive and clearly defined set of procedures to implement an A-Z process for land concessioning, from land identification to on the ground investment. It will also support MITUR to implement legislation allowing them to ?recuperate? land allocated for tourism investment where the investment period has expired so that this land can be marketed to appropriate investors. Page 3 Component 3 is divided in three subcomponents: (1) Capacity building of DINATUR and FUTUR, (2) Minimum infrastructure platform in Matutuine and Vilanculo, (3) Community-based conservation and tourism development. Subcomponent 3.1. will support building capacity of DINATUR, DPC, FUTUR to develop and implement (1) tourism micro planning at district level, (2) business development and financing, (3) a tourism statistic account. Subcomponent 3.2. will provision about $4.2 million for minimal tourism infrastructure platforms for the key tourism hubs of Vilankulo and Ponto do Oro as prioritized by the IDDP. Subcomponent 3.3. will support to communities through (1) a Community Equity Grant Facility for organized communities to enter into joint venture partnerships with private investors to realize tourism or conservation related investments such as creation of community reserves in interstitial areas, game ranches, lodges, etc., and (2) the participatory and compensation process to improved natural resource management and land acquisition. Component 4 : Protected Areas management ($15.10 M) IDA: $7.10 M; GEF: $6.50 M This component will support the identification, monitoring and protection of the most significant and vulnerable biodiversity assets within the three TFCAs, through the establishment/rehabilitation and management of a network of National Parks and Reserves under the direct management of DNAC. This will begin a long term process of major improvement of the Maputo Special Reserve, including the gazettement of the Futi corridor and of a new marine reserve; support to Bahine National Park and the Chimanimani Special Reserve. Modest support, will be provided to Limpopo National Park, to supplement current Peace Park Foundation (PPF), KfW & AFD efforts, and to Zinave National Park. Component 4 is divided in two subcomponents: (4.1) Capacity building and applied research, (4.2) Biodiversity conservation in formal protected areas. Under Subcomponent 4.1. (a) DNAC capacity will be reinforced, (2) survey, inventories and applied research will be carried out. For targeted parks or reserves, Subcomponent 4.2. includes (a) improvement of park design and planning, (b) increasing the area under protection, (c) build or rehabilitate essential infrastructure, (d) procurement of essential equipment required for management (e) deployment and capacity building of staff, (f) improvement of communication and information, (g) launching effective law enforcement, (h) carrying out research and monitoring and evaluation, (i) increase the revenue generation capacity. Component 5 : Project Management, Communications, and Monitoring and Evaluation ($4.72 M) - IDA : $3.48 M; GEF: $ 0.90 M; PHRD $0. 34 M This component will finance the project management costs including project procurement, accounting and monitoring as describe by their respective manuals. It will strengthen the capacity of the TFCA Unit to coordinate TFCA program, and will support its related operating costs. This includes recruiting a few additional long-term staff for Page 4 the Unit, including TFCA Coordinators based in the field in order to support the shifting of planning and implementation to the Provincial and local level. The component includes the implementation of an M&E system to track and assess project implementation and impacts, and a system for adaptive management based on this information; and the development and implementation of an information system and a communications strategy to ensure timely flow of accurate information among the implementing agencies, and to increase awareness and understanding about ecosystem management and TFCAs nationally, regionally and worldwide. 4. Project Location and salient physical characteristics relevant to the safeguard analysis Project Location To a large extent the location of intervention has been determined in the first phase of the Project. T FCA 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 multifarious interventions in this area have delayed focused and concerted action. All these three TFCAs will continue to be supported under the Project. In these TFCAs, the project will be implemented in 7 to 9 districts of 4 Provinces: Ihambane (Vilankulo District), Maputo (Matutiune District), Manica (Sussudenga District), and Gaza (priority 1: Chicualacuala, Massingir, Mabote, Massangena; priority 2: Chigubo, Mabacane). In the 3 TFCAs, the protected areas targeted are Chimanimani Special Reserve, Maputo Special Reserve, Limpopo NP, Banhine NP, and Zinave NP. In addition, the beach tourism towns of Vilankulo and Ponto do Oro will see their infrastructure environment improved. Context Mozambique's natural resources are of global interest and significance. Natural resource based activities - agriculture, fisheries, mining and tourism - contribute about 45 percent of GDP and 70 percent of total exports. Forestry and forestry related activities, such as the production of charcoal and timber play a significant role in the local economy, and in the degradation of the natural resource base. Traditional energy (largely woodfuels) still contributes 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. 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. 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 private sector investment, this perception is unlikely to prevail under the present circumstances. Furthermore, the essentially exploitative nature of many of the larger scale private sector investments (e.g., Page 5 gas, mining, coastal tourism, energy), requires even greater vigilance in terms of ensuring both social and environmental sustainability. The TFCATDP, to deal with this situation, will 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 priorities 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. Biodiversity Mozambique is part of the Zambezian Biogeographic Region, a region known for its high degree of biodiversity. The country's extensive coastline and large land area makes it unique within the 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, Cheringoma Plateau, Zambezi Delta grasslands and swamps, Great Inselberg Archipelago, Chimanimani Massif, Maputaland Centre of Endemism, Coastal Bamer 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 southern Mozambique (Lubombo TFCA). Mozambique's rich plant biodiversity is also a critical resource for traditional medicines, the primary 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 characterized by a rich diversity of mammal fauna with 211 terrestrial mammal species. Large mammals have been sharply reduced.. Gazetted Wildlife Areas cover 87,000 sq kIn, 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 Africa, with a diversity of ecosystems including estuaries, wetlands and coastal lakes. The Coastal Zone is considered unique in the East African Marine Region in terms of the quality, diversity and species richness of its habitats. These Page 6 ecosystems support 18 species of marine 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 material for housing and fishing boats, and fodder for domestic animals ( particularly in times of drought). 5. Environmental and Social Specialists on the Team Mr Mohamed Arbi Ben-Achour (AFTS1) Mr Serigne Omar Fye (AFTS1) 6. Safeguard Policies Triggered Yes No Environmental Assessment (OP/BP 4.01) X Natural Habitats (OP/BP 4.04) X Forests (OP/BP 4.36) X Pest Management (OP 4.09) X Cultural Property (OPN 11.03) X Indigenous Peoples (OD 4.20) X Involuntary Resettlement (OP/BP 4.12) X Safety of Dams (OP/BP 4.37) X Projects on International Waterways (OP/BP 7.50) X Projects in Disputed Areas (OP/BP 7.60) X II. Key Safeguard Policy Issues and Their Management A. Summary of Key Safeguard Issues 1. Describe any safeguard issues and impacts associated with the proposed project. Identify and describe any potential large scale, significant and/or irreversible impacts: The TFCATDP focuses on conservation and sustainable use of Mozambique's immense natural habitat estate. It seeks institutionalizing ecosystem management, and mainstreaming it into development planning processes. As such it is expected to have significant environmental and social benefits relative to a no-project situation. The project also has the objective of promoting environmentally sustainable tourism and other sustainable land uses such as game farming. The project will operate in the context of a highly dynamic socio-economic and political landscape. GOM is keen to promote private sector investment and is also responsible for a sizable public sector investment program, so the project will require adaptable experiential learning processes rather than blueprints. OP4.01 is triggered because of the potential impact of some local infrastructures--such as tracks, fence, housing, offices, lodges in formal PAs, outside PAs and on the coastline- -on the environment. OP4.40 on Natural Habitat and OP4.36 on Forest are triggered Page 7 even though the project is expected to have significant positive impact on the country natural habitat and forests. Still, with the economic development triggered by the project and, some of the infrastructure built, there may be negative impact locally. Infrastructure which will be identified as part of the IDDP, will be built in Ponto do Oro and Vilankulo to increase these towns' basic facilities and make them attractive to tourism investors. The impact of these construction will need to be monitored. Still, the project is not expected to induce major or irreversible impacts. The development of Mozambique's coastline and interior is expected whether or not the project is implemented. The project is intended to mitigate that environmental and social impact by providing a framework for promoting sustainable development, through an ecosystem management approach: the IDDP. The ESMF proposes the IDDP has process to identify and avoid, or mitigate, negative impact of individual project investments. OP/BP 4.12 related to Involuntary Resettlement and Land Acquisition: Two major factors have led to the triggering of OP/BP 4.12. The first factor is the restrictions and the incompatibility of local communities' livelihoods activities with the objectives of the TFCAs and PAs. TFCATDP in protecting the natural environment and supporting biodiversity conservation and natural resource management in the TFCAs include the establishment of boundaries, the potential for establishing new PAs, and the development of regulations, criteria, procedures and institutional structures for planning, management and development. These imply the restriction of access to natural resources by the local communities inside the PAs and in buffer zones. Communities living in TFCA interstitial areas are also potentially affected insofar as these multi-resource use areas will be included in zoning and development plans for sustainable resource use that may include community-based informal PA creation. To avoid such a negative effect on the population and avoid unnecessary conflicts, a Process Framework has been commissioned and completed. The purpose of the framework is to describe the process by which potentially affected communities will participate in resource planning and management. Once developed, an Action Plan should become part of the natural resources management plan. The second factor that contributed to the triggering of OP/BP 4.12 is the objective to promote and link conservation and nature tourism development activities to community participation and access to direct and indirect benefits, as well as to encourage communities? land delimitation to strengthen their rights bases.The development of nature tourism activities may require land acquisition to build and develop infrastructure, and buildings. The project may also cause displacement of people from their homes and areas as a result of the threat of wildlife. Because presently, the location, nature and scope of possible land acquisition and displacement are not yet know, a Policy Framework (PF), as a mitigation measure, has been completed. The PF establishes the policy principles to be used for the development of specific RAPs. During project implementation, when the details of land acquisition and involuntary resettlement are fully known, a or several Resettlement Action Plan(s) (RAPs) will be defined, prepared, Page 8 and implemented. Burial and sacred sites will be protected and documented and recorded in the management plans and the RAPs. 2. Describe any potential indirect and/or 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, electricity, 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 in the areas concerned. 3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts. The main alternatives considered were: (1) having no follow-up to the first phase TFCA project; (2) a simple sectoral approach, such as a traditional conservation project, a conventional CBNRM program for the non-protected areas of the TFCAs, or a tourism sector support program, and (3) a multisectoral project covering five TFCAs. Alternative 2 and 3 both lead to environmental outcome equivalent to the alternative adopted. However, in comparison to alternative 2 and 3, the alternative selected, which is also more realistic, should lead to an outcome that is more sustainable and more anchored into the country development strategies. 4. Describe measures taken by the borrower to address safeguard policy issues. Provide an assessment of borrower capacity to plan and implement the measures described. The TFCAU Unit has prepared and is currently disclosing an Environment and Social Management Framework (ESMF), a Process Framework (PF) and a Resettlement Policy Framework (RPF). The Ministry of Environment Affair (MICOA) has the mandate to monitor safeguard in Mozambique. However, because it lacks capacity, the project will finance consulting firms, NGOs or individual, as the case may be depending on the nature and scope of the assistance, to implement the frameworks. MICOA's role will be limited to prior and post reviews as per their national mandate. 5. 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 private sector, government at all levels (districts, provincial and national), neighboring countries (for international agreements, shared infrastructure, joint tourism planning), NGOs and other donors. Local populations living within the Limpopo, Lubombo and Chimanimani TFCA districts are the main target population. These populations occur in the provinces of Maputo (Matuituine District), Gaza (5 to 7 districts), Manica (Sussundenga District) and Inhambane (Vilankulo District). Local populations around protected areas falling within these TFCAs will benefit through the establishment of more clearly defined access rights, land titling and the development of sustainable economic activities. Additionally, the Project will target local private sector and develop a set of incentives for joint venture Page 9 arrangements between international private sector, local entrepreneurs and local communities. The project was prepared and will be implemented from a participatory perspective where all stakeholders, in particular the local communities play a central role. From the beginning, the participatory process identifies local priorities through local stakeholders workshops and consultation meetings to produce SEAs and spatial zoning plans. The IDDP formulation process will result in comprehensive development strategies for each TFCA. IDDP implementation will involve the establishment and management of multi- use conservation areas (including formal and informal core PAs, appropriate buffer and support areas); and the initiation of economic alternatives (environmentally sustainable tourism development, co-management, private sector partnerships in community based tourism etc.) to unsustainable, destructive use of natural resources by local communities. Further, a community strategy will be a key tool for creating awareness, for consensus building, for generating participation in processes of change and development, for making informed decisions and for resolving conflicts. At community level, the communication strategy will focus on the needs to ensure access to information for all local stakeholder groups; and to strengthen the ability of all stakeholders to articulate and disseminate information, and make their own informed decisions. It is expected that the communities will feel empowered and will effectively and gradually develop an ownership in the TFCA development programs. The project includes a significant nature tourism component focusing on gradually involving local communities in co-management of PAs as well as promotion of business partnerships to obtain direct concrete benefits from tourism initiatives in the PAs and buffer zones. The project will also support the improvement of the communities? livelihood and the resilience of the vulnerable groups. This will involve programs with focus on capacity building (in particular acquisition of income generating skills, leadership and community planning skills), reproductive health awareness raising, institutional development, and, to the extent feasible, development of priority community services and infrastructure. Disclosure of the ESMF, PF and RPF will be carried out in Maputo, by announcement in newspapers that the documents are available for consultation at the district council office. They will also be disclosed in each targeted districts. There, announcements will be published in local newspapers and on the local radio that the documents are available for consultation at the district council office.In addition, in each district, the TFCA regional coordinator will organize a half-day information sessions where the main stakeholders will be invited. Around each targeted protected areas, the park managers, with the TFCA provincial coordinator will also organize half-day information sessions in "center villages", i.e. villages where it is convenient for communities representing several villages to meet. Page 10 B. Disclosure Requirements Date Environmental Assessment/Audit/Management Plan/Other: Date of receipt by the Bank 03/15/2005 Date of "in-country" disclosure 05/31/2005 Date of submission to InfoShop 04/20/2005 For category A projects, date of distributing the Executive Summary of the EA to the Executive Directors Resettlement Action Plan/Framework/Policy Process: Date of receipt by the Bank 03/15/2005 Date of "in-country" disclosure 05/31/2005 Date of submission to InfoShop 04/20/2005 * If the project triggers the Pest Management, Cultural Property and/or the Safety of Dams policies, the respective issues are to be addressed and disclosed as part of the Environmental Assessment/Audit/or EMP. If in-country disclosure of any of the above documents is not expected, please explain why: Not applicable C. Compliance Monitoring Indicators at the Corporate Level (to be filled in when the ISDS is finalized by the project decision meeting) OP/BP/GP 4.01 - Environment Assessment Does the project require a stand-alone EA (including EMP) report? Yes If yes, then did the Regional Environment Unit review and approve the EA report? Yes Are the cost and the accountabilities for the EMP incorporated in the credit/loan? Yes OP/BP 4.04 - Natural Habitats Would the project result in any significant conversion or degradation of critical natural habitats? No If the project would result in significant conversion or degradation of other (non-critical) natural habitats, does the project include mitigation measures acceptable to the Bank? Yes OP/BP 4.12 - Involuntary Resettlement Has a resettlement plan, abbreviated plan, or process framework (as appropriate) been prepared? Yes If yes, then did the Regional Social Development Unit review and approve the plan / policy framework / policy process? Yes OP/BP 4.36 - Forests Has the sector-wide analysis of policy and institutional issues and constraints been carried out? Yes Does the project design include satisfactory measures to overcome these constraints? Yes Does the project finance commercial harvesting, and if so, does it include No Page 11 provisions for certification system? BP 17.50 - Public Disclosure Have relevant safeguard policies documents been sent to the World Bank's Infoshop? Yes Have relevant documents been disclosed in-country in a public place in a form and language that are understandable and accessible to project-affected groups and local NGOs? Yes All Safeguard Policies Have satisfactory calendar, budget and clear institutional responsibilities been prepared for the implementation of measures related to safeguard policies? Yes Have costs related to safeguard policy measures been included in the project cost? Yes Does the Monitoring and Evaluation system of the project include the monitoring of safeguard impacts and measures related to safeguard policies? Yes Have satisfactory implementation arrangements been agreed with the borrower and the same been adequately reflected in the project legal documents? D. Approvals Signed and submitted by: Name Date Task Team Leader: Mr Jean-Michel G. Pavy 06/08/2005 Environmental Specialist: Mr Serigne Omar Fye 06/08/2005 Social Development Specialist Mr Mohamed Arbi Ben-Achour 06/08/2005 Additional Environmental and/or Social Development Specialist(s): Approved by: Regional Safeguards Coordinator: Ms Kristine M. Ivarsdotter 06/08/2005 Comments: Sector Manager: Mr Richard G. Scobey 06/08/2005 Comments: