Madagascar - Environment Program

Document of The World Bank FOR OFFICIAL USE ONLY Report No. 8348-MAG STAFF APPRAISAL REPORT DEMOCRATIC REPUBLIC OF MADAGASCAR ENVIRONMENT PROGRAMt MARCH 19, 1990 Agriculture Sector Operations Division South Central and Indian Ocena Department IAfrica Region This document has a restricted distribution and may be used by recipients only In the perfohmsooe of | ' a 4 ' 4 <Its Co may not otherwise be disclosed without World Bank autlorzado  CURRENCY EQUIVALENTS Currency unit = Malagasy Franc (FMG) US$1.00 FMG 1,650 FMG 1,000 = US$ .61 (as of December 1989) WEIGHT AND MEASURES metric British/US Equivalent 1 meter (m) 3 3.3 feet (ft) 1 kilometer (km) = .62 mile (mi) 1 square kilometer km2) .39 square mile (sq.m.) 1 hectare (ha) = 2.47 acres 1 kilogram (kg) 2.20 pounds (lb) 1 metric ton (m.ton) - 2,205 pounds (lb) FISCAL YEAR Government of Madagascar. January 1 - December 31 its ministries and agencies l  FOR OMCIL USE ONLY DEMOCRATIC REPUBLIC OF MADAGASCAR ENVIRONMENT PROGRAM CREDIT AND PROGRAM SUMMARY Borrower: Democratic Republic of Madagascar Amount: USS 26.0 million (SDR 19.8 million) Termst Standard IDA terms, with 40 years maturity Beneficiaries: About 100,000 rural families through soil conservation, improved watershed management, reforestation and other community-level priority projects. About 702 of these families would be located in the buffer zones surrounding parks and reserves; and about 302 in erosion-prone priority areas. Implementing Agencies: Ministry of Economy and Plan, through the National Office for the Environment; Ministry of Livestock, Fisheries and Forests, through the Forestry Department and the Association for the Management of Protected Areas; the National Association for Environmental Actions; the National Mapping Agency; the Ministry of Agriculture through the Cadastral Department; and the Ministry of Scientific Research through the agricultural, oceanographic and environmental research centers. Financing Plan: Cofinanciers are UNDP, UNESCO, USAID, Frerch, German, Norwegian and Swiss Aid, KFW (Federal Republic of Germany), Worldwide Fund for Nature (WWF) and Conservation International. Japan, Great Britain, the European Economic Community, and the International Association against Hunger have also expressed interest in financing. Several foreign scientific agencies and environmental NGOs are also expected to provide financing and to participate in implementation. Program Description: (i) Objectives and Content The Environment Program will represent the first five-year segment of a fifteen-year Environmental Action Plan (EAP) whose aim is to assist the Malagasy population in protecting and improving its environment for a more sustainable development. The proposed Environment Program (first slice of EAP) will consist of seven components: (i) This document has a restricted distribution and may be used by recipients only :.a the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  - ii- protecting and managing unique ecological systems together with development of peripheral zones; (ii) promoting soil cor.servation, agroforestry, reforestation and other rural development activities in priority zones, including seveTai large watershed areas; (iii) developing maps and geographic information for Program-related areas; (iv) improving land security through titling; (v) training environmental specialists and promoting environmental awareness and education at all levels of Halagasy society; (vi) launching environmental research programs on land, coastal and marine ecosystems; and (vii) developing support activities, composed of institution building, the adoption of environmental assessment procedures (and funding for environmental assessments), strengthening the environmental data base, monitoring and evaluation, and studies. This component in particular will include studies and pilot operations to prepare a new Zive-year slice of the EAP. (ii) Benefits The Program will help Madagascar to put in place the legal and institutional framework and the skills and tools needed to manage its environmental heritage. Sites of world renowned biodiversity will be conserved. Soil loss will be stemmed and environmentally sound programs of rural development will begin. (iii) Risks: As this is Madagascar's first national Program in environment, it inevitably starts with a number of risks. Several new institutions have to be established, new laws have to be passed, staff with new skills have to be found, and the public at large, and farmers in particular, have to be convinced. The Program has been designed in a flexible manner so as to build institutions progressively on the basis of information and experience gained as implementation proceeds. To that end, the Program includes mechanisms for careful monitoring and regular review of progress (including a formal mid-term review) so that problems can be identified and solutions found at an early stage.  - iii- Estimated Project Cost Local Foreign Total USS million - Biodiversity (protection,assistance to DEF & devel't of buffer zones) 11.19 10.36 21.55 Soil conservation, Agroforestry/ Rural Development 5.83 3.52 9.35 Mapping and Geographic Information 4.23 5.91 10.14 Cadastral Surveys and Titling 3.46 3.48 6.94 Environmental Research 1.63 2.61 4.24 Support Activities 9.20 6.54 15.74 Total Baseline Costs 35.54 32.42 67.96 Physical Contingencies 2.26 1.56 3.82 Price Contingencies 9.83 3.94 13.76 Total Program Costs 47.62 37.91 85.53 Financing Plan IDA 1/ 26.0 Other Donors 2/ 42.3 Government 3/ 17.2 TOTAL 85.5 Estimated IDA Disbursements (US$ million) IDA FY 1991 1992 1993 1994 1995 1996 Annual 3.43 6.72 5.47 4.26 4.12 2.02 Cumulative 3.43 10.15 15.62 19.88 24.00 26.02 Staff Appraisal Report No 8348-HAG Maps Vegetation Location of Endangered Species Priority Areas for Watershed Management Biodiversity Protected Areas (IBRD No 21799) 1/ Including an advance of US$ 1.5 million from the Project Preparation Facility. 2/ UNDP, UNESCO, USAID, French, German, Norwegian and Swiss Aids, KFW (the Federal Republic of Germany), World Wide Fund for Nature, Conservation International. 3/ Including customs, duties and taxes estimated at USS 13.23 million.  - iv - DEMOCRATIC REPUBLIC OF MADAGASCAR ENVIRONMENT PROGRAM STAFF APPRAISAL REPORT Table of Contents Page Credit and Program Summary ........................ i I. BACKGROUND . .................................................. 1 A. Introduction . ......................................... 1 B. Geographic and Economic Context ..... ................. 2 C. IDA and Donor Role in the Environment ..... ........... 3 II. THE ENVIRONMENTAL ACTION PLAN ....................... 4 A. Environmental Issues ........ ......................... 4 B. The Environmental Action Plan Process ..... ........... 6 C. EAP Objectives and Strategy ...... .................... 7 D. Policy Changes ............ ........................... 7 E. Six EAP Priority Programs ............................ 10 III. THE ENVIRONMENT PROGRAM ...................................... 11 A. Objectives and Strategy .............................. 11 B. Summary Description .................................. 12 C. Detailed Description . . 13 (1) Protection and Management of Biodiversity ....... 13 (2) Soil Conservation and Agroforestry ............... 16 (3) Mapping and Geographic Information ............... 18 (4) Cadastral Surveys and Titling .................... 19 (5) Training, Educatioxn and Communication ........... 21 (6) Environmental Research .......................... 23 (7) Support Activities .............................. 24 IV. COST, FINANCING, AND PROCUREMENT .............................. 27 A. Program Costs ...................................... 27 B. Rrogram Financing ................................... 28 C. Procurement ...................................... 31 D. Disbursements ...................................... 33 E. Accounts and Audits ....... . ......................... 34 V. ORGANIZATION AND MANAGEMENT .................................... 34 A. Institutional Framework and Main Agencies . . 34 (1) National Office for the Environment (ONE) ....... 35 (2) National Association for the Management of Protected Areas (ANGAP) ...................... 37 (3) Forestry Department (DEF) ....................... 39  (4) National Association for Environmental Actions (ANAE) .................................. 40 (5) Mapping and Remote Sensing Agency (FTM) ......... 42 (5) Department of Land and Agrarian Reform (DPRA) ..... 43 (7) Environmental Research Agencies ................. 44 (8) NGO Participation . . 45 B. Honitoring, Evaluation, and Annual Planning .. 46 C. Enrironmental Data Systems . . 47 D. Technical Assistance . . . 48 E. Supervision ........................................... 48 VI. COST RECOVERY AND FISCAL IMPACT ............................... 48 A. Cost Recovery .................................... 48 (1) Biod4versity Protection and Management ........... 48 (2) Mapping Activities .......................... .. 49 B. Fiscal Impact ........................ 49 VII. BENEFITS, ECONOMIC JUSTIFICATION, AND RISK ... 51 A. Benefits ............................................. 51 (i) Employment ....................................... 52 B. Economic Analyis ................... 52 C. Program Risks .. ............... 55 VIII. AGREEMENTS REACHED DURING NEGOTIATIONS, CONDITIONS AND F RECOMMENDATIONS ................................... 56 TABLES IN THE MAIN TEXT Table 4.1 Program Cost Summary .28 Table 4.2 Donors' Specific Interests in Program Financing. 29 Table 4.3 Program Financing Plan . 30 Table 4.4 Procurement Procedures . 31 ANNEXES 1. OVERVIEW OF MALAGASY BIODIVERSITY . 59 2. PROTECTION AND MANAGEMENT OF BIODIVERSITY A. List of priority protected areas . 61 B. List of protected areaq under implementation . 63 C. Proposed Organization of ANGAP . 64 D. Profile of ANGAP's Director . 65 E. Norms for investment and operating costs in parks and reserves . 66 F. Norms for development in buffer zones . 68 G. Model contract between ANGAP and field operators .... 70 3. SOIL CONSERVATION, AGROFORESTRY AND MINIPROJECTS A. Organization of ANAE . 71 B. Terms of reference for the ANAE Director General .. ..72  - vi - 4. S'JPPORT ACTIVITIES A. ONE's orgasnization chart .................... 7 B. Profile of the ONE Director General ...*... o.....74 5. PROGRAM FINANCING STR.UCTORE 7 6. SMhOLARY COST TABLES o 0..00... oo..000*0 *.,......... o*v 9.76 7. MONITORING, EVALUATION AND ENVIRONMENTAL MANAGEMENT SYSTEMS ... .....,.. ..o...oo.. 000000000000000000** 8. FINANCIAL ANALYSIS .98000.......... 9. ECONOMIC ANALYSIS 1..... ......*....... oo.*..o 10. DISBURSEMENT TABLES .......... ......116 11. GENERAL IMPLEMENTATION SCHEDULE .........117o.........o117 12. LIST OF BACKGROUND DOCUMENTS ON FILE ................ ..118 mAPS A. Vegetation B. Location of endangered species C. Priority areas for watershed management D. Protected areas for biodiversity (IBRD nb: 21799)  - vii - DEMOCRATIC REPUBLIC OF MADAGASCAR ENVIRONMENT PROGRAM GLOSSARY OF ACRONr AND ABBREVIATIONS AICF Association Internationale contre la Faim International Association against Hunger ANAE Association Nationale d Actions Environnementales National Association for Environmental Actions ANGAP Association Nationale pour la Gestion des Aires Protegees National Association for the Management of Protected Areas BDE Banque des DonnCes de l'Etat State Data Bank (under MEP) CCCE Caisse Centrale de Cooperation Economique (France) CIDST Centre dlInformacion et de Documentation Scientifiques et Techniques Center for Scientific and Technical Information and Documentation CNCD Commissior Nationale de la Conservation pour le D4veloppemesnt National Commission on Conservation for Developm-nt CNRE Centre National de Recherche Environnementale National Center for Environmental Research CNRO Centre National de Recherche Oceanographique National Center for Oceanographic Research CNRP Centre National de Recherche Pharmaceutique National Center for Pharmaceutical Research CTP Comite Technique Permanent Permanent Technical Committee DEF See MPAEF DPRA Direction du Patrimoine et de la Reforme Agraire National Cadastral Agency EA Environmental Assessment EAP Environmental Action Plan EEC Eu-opean Economic Community  I - viii - EPA Etablissement Public & caractbre Administratif Public Agency ESSA Ecole Superieure des Sciences Agronomiques National College for Agronomic Sciences PAC Ponds d'Aide et de Cooperation French Aid Fund FOFIFA Foibem Pirenena Momba ny Fykarohana Aipiharina amin'ny Agricultural Research Center FPMP Forests Protection and Management Project Projet de Gestion et Protection des Forgts FTM Foiben-Taosarintanin i Madagasikara National Cartography Institute (Under Ministry of Public Works' auspices) GIS Geographic Information System Syst6me d'Information Geographique GOM Gouvernement de la Republique D4mocratique de Madagascar Government of the Democratic Republic of Madagascar ICB International Competitive BidUing IUNC International Union for the Conservation of Nature LCB Local Competitive Bidding LNT Laboratoire National de TOlXddtection National Laboratorv for Remote Sensing MDS Multidonor Seretariat Secr4tariat des Bailleurs de fonds MEP Ministere de l'Economie et du Plan Ministry of Economy and Plan MIEM M.nistere de l'Industrie, de l'Energie et des Mines Ministry of Industry, Energy and Mines MINAGRI Minist%re de la Production Agricole et du Patrimoine Foncl;: Ministry of Agriculture and Land Patrimony MINESEB Ministare de lEducation de Base Ministry of Basic Education MINESUP Ministare de l'Education Superieure Ministry of Higher Education  - ix - MINFIN Ministere des Finances et du Budget Ministry of Finance and Budget MPAEF MinistOre de la Production Animale et des Eaux et Forets Ministry of Livestock, Fisheries, and Foreatty Includes the Direction des Eaux et Forets (DEF - Forestry Department) and the Service de la Protection de la Nature (SPN - rn Nature Protection Service) MRSTD Ministare de la Recherche Scientifique et Technologique po-ar le Divelcppement Ministry of Scientific and Technological Research for Development MTMT Ministere du Transport, de la M4teorologie, et du Tourisme Ministry of Transport, Meteorology, and Tourism MTP Ministere des Travaux Publics Ministry of Public Works NARP Projet National de Recherche Agricole National Agricultural Research Project NGO Non-Governmental Organization Organisation Non Gouvernementale (ONG) ONE Office National de l'Environnement National Office for the Environment ORSTOM Office de Recherche Scientifique et Technique d'Outre-Mer (France) Office of Overseas Scientific and Technical Research PPF Project Preparation Facility PPNVA Projet Pilote National de Vulgarisation Agricole Pilot National Agricultural Extension Project SPN See MPAEF TFAP Tropical Forest Action Plan Plan d'Action Forestier Tropical (PAPT) UNDP United Nations Development Program UNESCO United Nations Educational, Scientific, and Cultural Organization USAID United States Agency for International Development WWF World Wide Fund for Nature  DENOCRATIC REPUBLIC OF MADAGASCAR Environment program I. BACKGROUND A. Introduction 1.01 Madagascar has been singled out by the international conservation community as one of the ecologically richest ,untries of this planet where the heritage of biological diversity is the most at risk. At the same time, Madagascar is one of the economically pqorest. This contrast, probably more than everywhere else, has built up m tension between the proponents of conservation and those of development. In this report, it is argued that one cannot be obtained without the other. Their integration is the key principle recommended by the UN Commission for the Environment (Our Common Future) and by UNESCO (Man and Biosphere). It is also the principle that has guid1d the preparation of the Program proposed in this repurt and the major rationale for IDA involvement. 1.02 Madagascar is locked 'n a spiral o: environmental degradation that increasingly threatens sustainable development and what remains of the country's unique ecological heritage. The protection of Madagascar's biodiversity is commanding increasing international attention and support and galvanizing, it, the process, growing recognition of the fundamental causes of the environmental degradation. As in most of Africa, environmental issues indeed cannot be addressed in isolation of the impact L of demographic pressure and inadequate farming methods -Ahich lead to an unsustainable exploitation of available resources. 1.03 The Government of Madagascar has prepared a 15-year Environmental Action Plan (EAP) with the support of a consortium of donors to address the pressing environmental problems that threaten Madagascar's heritage of biodiversity and its prospects for sustainable development. The EAP is designed to support Madagascar's overall development. In its focus on a sustainable environment, the EAP complements programs in agriculture and infrastructure designed to stimulate the productivity of the country, as well as the structural adjustment and social programs, which focus, respectively, on economic reforms to correct structural distortions and emergency actions for the most disadvantaged and vulnerable groups in Madagascar. 1.04 The Environment Program (called hereafter the Program) is the first 5-year slice of the EAP. Its objectives will be to establish solid foundations for the implementation of the overall EAP and deals with the most urgent environmental problems. ;'lexibility will be essential during implementation since it will be the first national program for the environment in Madagascar, or indeed anywhere in Africa. The appraisal of  the Program took place in June 1989; it was followed by a post appraisal in December 198k. 4/ B. Geographic and Economic Corntext 1.05 Madagascar still enjoys very good potential for development. It is a vast country with a range of climates that allows for all kinds of agriculture. It still has a relatively light overall population density of 17.5 inhabitants/km2, although the population is distributed very unevenly. The high population growth rate (32 per annum) places a great deal of stress on the environment, particularly in the densely populated highlands. The agricultural sector is predominant, employing 852 of the active labor force and accounting for 42Z of GDP and 802 of foreign exchange earnings. Madagascar has the most developed irvigation infrastructure in Africa (about one million ha), and an additional 200,000-300,000 ha could still be developed for irrigation. Land reserves are still extens:ve, though difficult to put into production because of the mountainous terrain. In w addition, Madagascar has considerable energy and mining potential. The level of education is particularly high for the African context and is an advantage in terms of diversifying the economy and continuing to develop agriculture. Finally, Madagascar has excellent potential for the development of tourism due to its extraordinary heritage of biological diversity and its beautiful landscapes. 1.06 Despite its resources, Madagascar, with a per capita income of US$ 225 in 1987, has become one of the poorest countries in the world in the last two decades. Government, in the 1970s, took a series of decisions which quite quickly eroded incentives and ran up external debt. In the 1980s, its main problems have included a deterioration of terms of trade, a low level of utilization of productive capacity (especially in agriculture, because of lack of producer incentives), and sluggishness of domestic revenue. Necessary cuts in real public expenditures have entailed sharp declines in the real wages of the civil service, in development expenditures, and in goods and services needed for Government operations. '.07 Government was successful in stabilizing public expenditures and curtailing inflation in the first half of the 1980's. GDP began to grow again in 1983, but per capita GDP continued to uecline because of rapid population growth. Per capita real income today is about 20 per cent lower than in 1975, and social conditions have continued to worsen. The preliminary 1989 economic indicators suggest a real increase in per capita income for the first time in many years. 41 The appraisal mission consisted of F. Falloux, B. Ribon, J. Post, F. U Peloschek (IDA); F. Convery, D. Cremont, JR. Mercier, A. Jolly, H. Hurni, K. Schlaefli, K. Richman (consultants). The post appraisal mission consisted of F. Falloux, B. Ribon and J.L. Sarbib (IDA).  1.08 These positive results are encouraging, but the negative impact of environmental degradation on the economy remains very high. The economic cost of lower agricultural productivity due to soil loss, damaged infrastructure, and the need to build new infrastructure to higher standards is estimated to equal between 5 and 15Z of Madagascar's GNP annually. Some attempts to institute sustainable management of the renewable resource base have been made, but not on a significant scale. A more broadly-based effort is needed to protect natural resources and at the same *ime foster ecologically and economically sustainable development. C. IDA and Donor Role in the Environment 1.09 In Madagascar, IDA has taken an increasingly active role in the environment as reflected in its lending and sector work prior to the EAP. In agriculture, it has paid increasing attertion to natural resources. An inventory of natural resources is being prepared under the Second Agricultural Institutions Project (Credit No. 1709-MAG). Under the Titanium Mining Engineering Credit (No. 1928-HAG), an environmental assessment (EA) study is being carried out, the first of its kind in Madagascar. Three other proj.'ts reflect the renewed environmental concern of IDA. The first one in energy (Energy I, Credit No. 1787-MAG), the second in forestry (Forests Protection and Management Project [FPMP], Credit No. 1878-MAG), and the third in agricultural research (National Agricultural Research Project - NARP - Credit No. 2041-MAG). 1.10 Energy I aims to help the Government of Madagascar strengthen energy policy formulation, planning and investment programming, and institutional development. Its environmental features include fuel-saving strategies to reduce deforestation -- increas!ng the efficiency of charcoal production, developing substitutes for charcoal, and improving cooking stove efficiency -- all of which aim to reduce pressure on woodlands. 1.11 The environmental features of the FPMP include conserving natural forests; initiating the protection and management of biodiversity; and promoting private sector involvement in reforestation and wood processing. Energy I and FPMP thus complete each other and show how work on forest conservation and reforestation requires action at many levels from overall policy to user incentives and technologies. This lesson of a matrix of complementary actions has been incorporated in Lhe Program. 1.12 NARP, approved by IDA in 1989, supports the National Agricultural Research Agency (FOPIFA) in the execution of its long term research master plan. This plan includes a substantial research program on soil conservation and watershed management, and a component to develop technologies for sustainable exploitation of natural forests. 1.13 Oth>-: donors cosponsoring the EAP are also focusing more and more on the environment. For example, USAID and UNDP/UNESCO supoort the protection and management of some national parks and reserves. evaeral pilot projects are being implemented with technical assistance from WWF and various US universities, and with the involvement of foreign and local  - 4 - NGOs. The early lessons drawn from these projects laid the foundations of the Biodiversity Component proposed under the Program (para 3.06). Swiss Aid is heavily involved in assistance programs for community reforestation, agroforestry, and soil conservation, also in conjunction with local NGOs. These programs provide solid foundations for the Soil Conservation and Agroforestry component under the Program (para 3.13). II. ENVIRONMENTAL ACTION PLAN A. Environmental Issues 2.01 Severe erosion in Madagascar decreases agricultural productivity and threatens major infrastructure. Erosion varies in intensity according to land management practice and ecological conditions; the worst areas resemble lunar landscapes. Burning of pasture, cultivation of unprotected hill slopes and slash-and-burn are among the common practices. A substantial amount of top soil 5/ is washed away annually, and soil fertility as well as agricultural productivity are declining. The cost of lost agricultural production due to erosion is estimated at between US$15 and $45 million per year (paras 1.01-1.08). Because watersheds are not protected, thousands of acres of irrigated land are lost every year due to excessive siltation. The cost of maintaining irrigated areas, such as those surrounding Lac Alaotra, has increased by an estimated US$10-15/ha, ft,r a total of US$ 8 million per year country wide. Siltation in the reservoirs of hydropower stations such as those at Mandraka and Andekaleka seriously reduces their lifespan and increases annual maintenance costs by US$1.5 million nationally. Erosion also increases the investment and maintenance costs of roads by about US$1.5 million. Erosion and resulting sedimentation threaten the capacity of Madagascar's harbors as well: sedimentation has reduced the freight handling capacity at Mahajanga, the second port of Madagascar, to a quarter of its level a decade ago. The port may soon be closed entirely. 2.02 Madagascar's national heritage of biodiversity, which is agreed to be of global significance, is threatened by deforestation, burning and erosion. The country is losing unique species and essential ecosystems of environmental, genetic, and medical importance. If nothing is done, the primary natural forest will disappear within thirty years. Conservation is also necessary for the development of "ecological tourism", a significant potential source of revenue and foreign exchange (see Annex 1). 2.03 There is currently no operative institutional framework that deals specifically with environmental matters. One current structure, the Commission Nationale de la Conservation pour le Developpement (CNCD -- National Conservation Commission for Development), which meets yearly, and 5/ Loss of top soil may reach more than lOOt/ha/year in the case of deforestation on steep slopis.  its Comit4 Technique Permanent (CTP -- Permanent Technical Committee) are only consultative bodies. There is a lack of coordination as well as of a coherent approach to channel and build on the interest generated in the international communit, by the Malagasy rich environment. Ministries that are responsible for aspects of the environment are weak in policy analysis, lack systematic information on natural resources and do not have the administrative capacity to implement even existing laws and programs. 2.04 This is pa-ticularly the case for the Ministere de la Production Animale, des Eaux et For@ts (MPAEF - Ministry of Livestock, Fisheries and Forestry), and its Forestry Department (DEF) which is technically responsible for the rural environment including biodiversity and forestry pelicies, forest management, reforestation, soil conservation and the management of protected areas. DEF has not been able to cope with all these responsibilities. Recognizing its limited capacity, DEF intends to concentrate its efforts on policies and the forestry sector while delegating the management of protected areas. For the former, DEF is receiving substantial institution-building support under FPMP (para 1.11). For the latter, DEF has pragmatically contracted with various operators including international agencies, universities and NGOs to help it manage the parks and reserves. However, the present patchwork of ad hoc arrangements cani.ot be expanded indefinitely, and DEF sees the need for a flexible agency capable of coordinating these operators, ensuring integration of conservation with development and eventually replacing foreign operators once the national capacity is built up (para 3.11). 2.05 Madagascar lacks the tools to protect and manage the environment. There are no EA procedures for screening investments. Maps are outdated, and there are no reliable data on forest, hydrology and other environmental issues. The Malagasy mapping agency (FTM), once one of the best in Africa, has reduced its activities to a low level due to lack of resources. 2.06 Poor security of land tenure provides little incentive to farmers and landowners to invest in their land, particularly in soil conservation measures. Furthermore, boundaries of protected areas and gazetted forests are not defined, which allows encroachment. 2.07 Madagascar is one of the few African countries with coherent land laws and registration, a tradition of land titling (first land titles in the 1930's) and an existing land taxation system. Currently about 15? of cultivated land is titled. The pace of new titling is, however, very slow. As for land taxation, the Government has recently tried to turn it into an incentive for productivity by penalizing land idleness; it has also - attempted to increase tax collection by improving cadastral records. However, tax collection has remained low. This is due to the unreliability of cadastral records and a weak capacity to assess and collect taxes. 2.08 Lack of concern about the environment among the Malagasy is general and the population not well-informed. Access to information on specific problems and solutions is very difficult at all levels from farmers through to tertiary education and decision makers. Few schools  - 6 - have programs to raise consciousness and there Is no teaching of environment sciences at universities. Only a pilot program by WWF has begun to create public awareness of envirormental issues. 2.09 Environmental management requires good research. Government is aware of this and has emphasized soil conservation and sustainable farming systems in agricultural research (para 1.12). In 1988, Government created a new environment research center (Centre National pour la Recherche Environnementale, CNRE). Some aspects of environmental research, however, require strengthening. The knowledge of terrestrial biodiversity and its dynamics is still very limited. Soil conservation and watershed management technologies need to be better defined for the various ecological regions of the country. The management of vast western pasturelands needs to be extensively researched to provide keys to controlling the huge annual fires and to establish more sustainable grazing systems. Coastal and marine stocks (particularly shrimps and lobsters) are an Important economic reserve whose exploitation needs to be monitored. B. The Environmental Action Plan Process 2.10 Aware of the degradation of the country's natural resources, the Government prepared an Environmental Action Plan (RAP) in 1987/88 with the support of a group of donors led by IDA, and including USAID, Swiss Aid, UNDP, UNESCO, and the World Wide Fund for Nature (WWF). The RAP sets out the Government's environmental policy and includes the key programs to implement it. A coordinating unit was set up at the Planning Department (now Ministry of Economy and Plan - NEP) to coordinate EAP preparation. A small fund was also established to finance feasibility studies and pilot prcjects. 2.11 The EAP was conceived as a process with the following features: (i) Political commitment and policy focus: the cabinet, under the Prime Minister's auspices, has supported the EAP. The main points of the EAP have been put into a National Charter for the Environment, which will soon be presented to the National Assembly for approval. The draft Charter has been discussed at negotiations and approved by Cabinet. Publication of its legislative text will be a condition of effectiveness. (ii) Participation and communication: The motto of EAP preparation was "listen to the grassroots". In practice, this process has been only partially successful as the means to articulate grassroots opinions are weak. However, as a first proxy, EAP preparation mobilized about 150 local specialists from a wide range of disciplines. Eight interministerial working groups have been established to deal with major environmental issues. During preparation, the coordinating unit began regional workshops with wide participation of local authorities and local interest groups, notably from the education sector. Interest in developing channels for communicating on the environment is evident at all levels and the first experiences are being extended nationwide.  - 7 - (iii) Balance between studies and action: During EAP preparation, several dozen studies of specific issues were undertaken. Many of these prepared the Program, and many led to pilot actions in the field. The coordinating unit selected one region where environmental problems are great, and has tested many of the study recommendations there, working closely with local people. This process of linking studies to action at different stages of implementation has been successful in developing practical proposals in areas where experience in Madagascar has been limited and where solutions need to be worked out together with the intended beneficiaries. The approach will continue to be used under the Program, with exchange between field experience and project design. (iv) Strong international support: the Government has been keen to attract the international community's financial and scientific cooperation for preparing its EAP. This cooperation is growing and is an important element in the Program design. C. EAP Obiectives and Strategy 2.12 Government policy over the next fifteen years, as set out in the EAP, is to protect and improve the environment while working toward sustainable development. The four specific objectives are: 1) to conserve and manage the heritage of biological diversity; 2) to promote sustainable development by better management of natural resources; 3) to improve rural and urban living conditions; and 4) to develop human resources and institutional capacity. 2.13 The EAP strategy emphasizes: (i) approaching problems and implementing their solutions in an integrated way; (ii) ensuring a long- term vision as well as coordination and continuity in the international support received by Madagascar; (iii) stressing communication and dialogue rather than the hierarchical transmission of information and commands; (iv) presenting EAP programs to local communities as sources of benefit rather than constraint; (v) involving local people in community-level projects related to the environment; and (vi) involving NGOs and others in the private sector. D. Policy changes 2.14 Under the EAP process, environment-related policies have been analysed and modifications have been proposed. Some of them, however, need more analysis and research before elaborating final proposals for changes. This will be continued under the Program and the institutional capacity for policy analysis will be developed. The current status of policy work is described below.  - 8 - 2.15 Land policy has been extensively reviewed in light of conservation and sustainable development. As a result, changes are being prepared in the following areas: (i) Land titling and cadastral records: the objective is to set up appropriate mechanisms to meet the demand for titles and ensure that cadastral records are updated. In the future, the law will require that, once land in an area has been properlv titled and registered, all future land transactions be registered. This legal amendment will be a condition of disbursement for the cadastral and titling component under the Progr.m (para 3.26); (ii) Land leases: the objective is to establish a land leasing system that protects the rights of both landowners and tenants and provides enough security to stimulate conservation practices and medium- to long-term investment in land. More analytical work is still needed. Hence a study will be financed under the Program to prepare appropriate amendments to improve current land legislation (para 3.43); and (iii) I.and taxation: the objective is to improve the current system in such a way that it provides clear and substantial incentives for land conservation and long-term investment. A study will be financed to examine the feasibility and consequences of changes in land taxation (para 3.43). 2.16 Progress has been made on environmental legislation and will continue, particularly in the following areas: (i) Environmental Assessments (EAs): The objective is to establish sound EA procedures and investment screening to ensure environmentally sound projects (as is being done under the Titanium Engineering Credit, para 1.09). A proposal for EA legislation is being prepared (para 3.43); a first draft was presented and commented during negotiations. This legislation is expected to be promulgated by decree before the end of 1990; (ii) Land laws and registration: Although Malagasy land law :.s generally good, it is not clear how it protects traditional rights in common-property systems (para 3.25). Furthermore there is a need to merge the various laws into a comprehensive and consistent land code and to produce updated booklets to inform the public (para 3.43); (iii) Environmental Code: Although Madagascar has a good base of legal texts on the environment, they need to be revised and synthesized in a booklet for public information (para 3.43); and (iv' Flora and fauna Protection: Madagascar is a member of the Convention on International Trade in Endangered Species of Wild Flora and Fauna (CITES). The official list of Malagasy l  - 9 - endangered species, however, needs to be updated and the economic utilization of flora and fauna needs to be studied (para 3.43). 2.17 The EAP process has also been instrumental in preparing the foundations of a national biodiversity policy in association with the development of "ecological tourism". This policy has been elaborated under MPAEF's responsibility, with special assistance from WWF. It has also drawn from the Man-and-Biosphere concept developed by UNESCO (para 1.01). This policy aims: (i) to establish a national network of about 50 protected areas that will cover most Malagasy biodiversity; (ii) to strengthen the protection and management of zazetted natural forests, particularly those adjacent to protected areas. These forests are rich in terms of biodiversity and provide natural buffer zones for the protected areas; they also have a critical ecological function in protecting watersheds and regulating water cycle; and they represent an economic potential under sustainable exploitation; (iii) to systematically associate conservation with the development of communities surrounding the protected areas; (iv) to mobilize national and foreign donors and operators to assist in equiping and managing protected areas; (v) to establish a structure to cooroi,.ate conservation and development activities in the field (para 2.04) (vi) to levy entrance and concession fees to contribute to the recurrent costs of conservation activities; (vii) to enforce rules for tour organization in the protected areas; and (viii) to establish norms for the construction of small tourism facilities iust outside the protected areas. This policy will be implemented and refined under the Program (para 5.02). 2.18 Finally under EAP, work has been done on drafting guidelines for the development of ecological tourism. This is expected to have an impact on hotel development, particularly in the following areas: (a) site selection and development control: EAs will be required for all hotel development proposals, particularly those near parks; (b) synergy with small tourism facilities: Large hotels and international tour operators are expected to work with small local hotels, linking them to international reservation networks and providing technical assistance and logistical support. Encouraging  - 10 - discussions have been Initiated with large international groups that intend to develop tourism activities in Madagascar; and (c) contribution to support biodiversity conservations a biodiversity fee to be collected by hotels, on behalf of ANGAP, from foreign tourists is being considered. This fee would support part of the operation and maintenance costs of the network of protected areas. Implementation of these guidelines will be monitored by the ONE, with technical support from the Ministry of Tourism and ANGAP. E. Six EAP priority proarams 2.19 To translate its objectives and strategy (paras 2.12-13) into action, the EAP is made up of six long-term programs that will be implemented over the next 15 years. They are: (a) protecting and managing the national heritage of biodiversity, with a special. emphasis on parks, reserves and gasetted natural forests, in conjunction with the sustainable development of their surrounding areas; (b) improving the living conditions of the population. This will be done In rural areas by improving the protection and management of natural resources. Particular attention will be paid to watershed protection, reforestation, and agroforestry. In urban areas, this will involve improving water supply and sanitation, waste management and pollution control in general; (c) promoting environmental education, training, and communication; (d) developing mapping and remote sensing tools to meet the demand for natural resources and land management (e) developing environmental research on terrestrial, coastal and marine ecosystems; and (f) establishing mechanisms for managing and monitoring the environment. 2.20 Some of these programs have already started on a pilot basis. Seven protected areas are being equipped and managed, and development activities have been started in the surrounding areas (Annex 2 - B). Watershed protection and management have begun in the Antananarivo plain, with Swiss Aid support. A new pilot soil conservation program has been launched in the lac Alaotra watershed. A national pilot campaign has been initiated to raise environmental awareness.  - 11 - III. THE ENVIRONMENT PROGRAM A. Oblectives and Strategy 3.01 The Program, as the first five-year slice of the EAP, will continue and expand the implementation of the above six priority programs. As this is the start of a complex, long-term process for which local experience and capacity need to be developed, not everything can be done immediately. Criteria have been used to identify priorities for this first slice of the EAP. These ares (i) developing operations of an urgent nature, namely: (a) protecting the heritage of biodiversity in the parks, reserves and gazetted forests currently at risk, in conjunction with the development of the surrounding communities; and (b) fighting deforestation and erosion in priority watersheds where the negative economic impact is currently the highest; and (ii) establishinz foundations for environmental management through institution building, studies, and human resource development. 3.02 The Program design and implementation proposals are based on the following principles: (a) an innovative and flexible institutional framework that will balance the public and private sectors and will associate a large array of foreign institutions (international and bilateral agencies, universities and NGOs) while providing for an efficient national coordination and the strengthening of national capacity; (b) a progressive implementation rhythm to take the novel nature of this environmental program into account and to match the expected Institutional development. The Program will be evolutive by combining activities at different level of maturity, some being tested on a small scale, while others, already tested, will be extended to large areas. For this reason, the Program will be implemented in two phases: the first phase, of about two years, will focus on institutional strengthening, training and progressive launching of field operations; a mid-term review will evaluate the experience and reorient the Program accordingly; and the second phase, of about three years, will expand these operations. As a consequence, the Program's quantitative objectives and corresponding costs are an estimate. They will have to be adjusted on a yearly basis during implementation. (c) monitoring and evaluation and data systems are indispensable tools for managing the Program as an evolutive process. The monitoring and evaluation system will provide information for the annual planning and mid-term review processes, which in turn will contribute to the evolution of program design. Natural resource data bases and geographic information systems will be developed in response to demand;  - 12 - (d) policy reform and incentives for sustainable development: new environmental policies which have been defined under the EAP (paras 2.14-2.17) will be implemented under the Program. These policies will also continue to be developed and refined. For this purpose, Government's capacity to analyse and define policy will be supported (para 3.40); and (e) continuity in EAP implementation. During program implementation, the second five-year slice of the EAP, will be prepared on the basis of experience and the results of studies and pilot operations. 3.03 This will be the first comprehensive environmental Program to be implemented in Africa. The novelty of its proposed activities, combined with the establishement of new institutions and the expected large number of national, bilateral and international agencies and NGOs involved, calls for special international coordination and close supervision. Accordingly, a Multi-Donor Secretariat (MDS) has been established at World Bank Headquarters for a three-year period to disseminate information among the participating agencies, strengthen coordination and supervision, and capitalize experience for guiding the Program implementation and preparing further envirormental programs in Madagascar as well as elsewhere in Africa. In Madagascar, a Steering Committee will guide overall Program implementation (para 5.05). B. Summary Description 3.04 The Program will consist of seven components: (i) protection and management of biodiversity and main natural ecosystems where they are most threatened, together with the development of surrounding areas. The strengthened network of parks and reserves will constitute an indispensable basis for the development of "ecological tourism", a promising source of foreign exchange earnings; (ii) soil conservation, agroforestry, reforestation and other rural development activities ir. the Program priority areas. The component will be carried out with the full participation of local communities; (iii) mapping and progressive establishment of a geographic information system (GIS) in the Program priority areas; (iv) establishing clear boundaries for protected areas and improving land security through titling in the Program priority areas; (v) environmental training, education, and awareness; (vi) environmental research on land, coastal and marine ecosystems; and  - 13 - Wm (vii) support activities, including institution building, establishing EA procedures, strengthening the environmental data base, monitoring and evaluation, and studies. This component will include the preparation of a second five-year slice of the EAP through studies and pilot operations. 3.05 The seven components are highly interdependent. They call for a special coordination effort to ensure their implementation in a logical sequence. For example, biodiversity conservation depends on cartographic and cadastral activities, development activities in peripheral areas, results of environmental research, the strengthening of data systems, and, finally, efforts in environmental awareness, training and education. Managing this interdependence during implementation will be the responsibility of the Office National de l'Environnement (ONE - National Office for the Environment). C. Detailed Description (1) Protection and Management of Biodiversity in Conjunction with Development 3.06 This component will have three main objectives: (i) to establish and equip a network of 50 protected areas 6/, covering about 1.4 million ha. This network will provide the basis for eco-tourism (para 3.10). 36 of these areas already exist legally and 14 will be established; (ii) to assist surrounding communities, in developing sustainable agriculture and improving their living conditions, and to associate them in conservation activities. About 70,000 families are expected to benefit from this component, in a total area covering about 0.3 million ha; and (iii) to improve the protection and sustainable exploitation of gazetted natutal forests, particularly those adjacent to the protected areas. About 0.3 million ha are expected to be covered under this activity. 3.07 Implementation will be in accordance with the national biodiversity policy (para 2.17). This policy will be refined and consolidated, under MPAEF's responsibility, to incorporate lessons and experience that come from the Program implementation. MPAEF's policy capacity will be reinforced to do so (para 3.12). 3.08 Invectment will be concentrated in areas where biodiversity is the richest and the risk of encroachment the highest. Three levels of priority have been defined: (i) Level 1 corresponds to the highest priority areas where there is an urgent need of substantial investment for both conservation and 6/ Of the original 50 protected areas, some are being regrouped to facilitate management. The resulting number of protected areas will be 45, including 14 in Level 1; 20 in Level 2; and 11 in Level 3, as reflected in paragraph 3.08.  - 14 - development. 14 protected areas belong to this category and are located in relatively densely populated zones. Infrastructure investments will include: (a) a clear definition of boandaries through cadastral surveys (pars 3.23) and, where necessary, the marking of these boundaries with a band of planted trees to separate protected areas fom private lands; (b) rehabilitation and contruction of service roads including access roads and a path network; (c) rehabilitation and construction of small facilities including offices, stores, workshops, housing for resident staff and tourism facilities; and (d) equipement and vehicles. Conservation teams will be built up through additional hiring, training and equipment. Research will be increased particularly through the launching of flora and fauna inventories. Farming communities in the surrounding areas will be the target of a special development effort (para 3.09). Simultaneously, awareness and education programs will be carried out to raise environmental consciousness and associate people in conservation. (ii) Level 2 corresponds to medium priority areas where the risk, although building up, is not yet as serious as in level 1. There is a I need for investment ir both conservatior- and development but part of it could be postponed to follow-up environment programs. 20 protected areas belong to this category and are t )ically located in less densely populated zones. While the same boundary delimitation may be undertaken as in level 1, infrastructure investment will be reduced in terms of road and path network, and service facilities. Conservation teams, however, will be upgraded as for level 1. Flora and fauna inventories will be initiated and comprehensive conservation programs, srecific to each area, will be prepared for the implementation of the second five-year slice of the EAP. Development activities in the surrounding areas will be initiated but their volume is oxpected to be substantially smaller than in level. i because of the more scattered population. (iii) Level 3 corresponds to the lowest priority areas where the risk of encroachment is not yet apparent. 11 protected areas belong to this category and are located in extremely-low populated areas. E Boundary delimitation will be undertaken as in the other two categories, but infrastructure investment will be limited to a bare minimum. An extremely light conservation team will be established. Activities will focus on building up knowledge on these areas and preparing comprehensive plans for further implementation in follow-up environment programs. The above ranking of protected areas in priority levels with corresponding investment plan should, however, remain flexible during the Program implementation for the following two reasons: (1) some of these areas in levels 2 and 3 might have to be upgraded if risks prove to be higher than expected; and (b) investment programs, larger than planned above, could be envisaged for level 2, and level 3, insofar as the international community would provide more substantial support than expected. A list of protected areas per level of priority as well as norms used to plan conservation activities are provided in Annex 2 (A and E). Their location is shown in  - 1S - map (D). At negotiations, an agreemeat was reached on a calendar for the legal establishment of all parks and reserves (para 8.03) 71. 3.09 The local communities around the protected areas will be both partners in conservation and beneficiaries of rural development programs. These programs will aim to improve their production activ'ities and living conditions so as to discourage further encroachment. With regard to conservation, communities will benefit from new jobs created in park and reserve infrastructure, operation and maintenance, policing and tourism. With regard to rural development, field operators (para 5.11) will work witi farm families to interpret their priority needs and help them prepare and implement miniprojects. These miniprojects are expected: (i) to improve and stabilize agricultural production (small irrigation schemes, soil conservation, reforestation, tree crops, fish ponds...); Ai) to develop village infrastructure (feeder roads, culverts, small bridges..); and (iii) to improve social conditions (small health facilities, wells, family planning..). These miniprojects will be processed according to the same approach as that designed for component (2) of the Program (para 3.16). They will be financed either by the ANAE (para 5.18) or directly by donors specifically involved in particular protected areas(s). Annex 2 (F) shows norms used to plan activities in the buffer zones of parks and reserves. 3.10 Conservation programs will be closely linked to the development of "ecological tourism'. Visitor centers will be set up, particularly in level-l areas. The Program will finance buildings and equipment, or the rehabilitation of existing facilities where feasible, and their operating costs. Tourists will use the centers to familiarize themselves with ecosystems through slide shows and exhibits; and tours will be systematically guided by a corps of professional guides recruited from the surrounding communities. Some simple tourism facilities may spring up spontaneously in the surrounding areas and could qualify as miniprojects. These facilities could be linked to the national tourism network (para 2.18). Blueprints of all new constructions and rehabilitations in or near the parks and reserves will require EA before implementation (para 2.18). A study will be carried out to assess the development of eco-tourism (para 3.43). 3.11 The Forestry Department (DEF), while keeping the overall policy responsibility on biodiversity, has decided to delegate the field management of the protected areas to autonomous 'operators' and their coordination to a new agency, the National Association for the Management of Protected Areas (Association Nationale pour la Gestion des Aires Protegees - ANGAP - para 2.04). Some of these operators are already in the field (see list in Annex 2 (B)) and will continue to provide support, each to one or several protected areas. Other operators (e.g. Conservation International) are prepared to offer similar support. ANGAP will be 7/ Among the existing parks and reserves, some have been established by decree but without proper titling. This will be done under the Program. Others will have to be both created by decree and properly titled. This will also be done under the Program.  - 16 - responsible for negotiating and contracting with these operators, mobilizing and allocating funds and monitoring and evaluation (see type of conetract in Annex 2 - G). ANGAP, while remaining under MPAEF's auspices (the Minister chairing ANGAP's Board), is expected to attract support from the international conservation community, to ensure a close integration of conservation and development, and to provide entrepreneurship in stimulating the development of ecological tourism. ANGAP's responsibilities, organization and management, relationship and transition arrangements, with DEF, and the role of operators are described in Chapter V (para 5.08 ft). Iwu 3.12 DEF will concentrate its efforts to protect and manage gazetted forests 8/ and to improve its policy capacity in tFe forestry sector and in biodiversity. With regard to gazetted forests, DEF, under the Program, will receive support to help it protect and manage about 300,000 ha of the best gazetted forests, of which about two thirds are adjacent to protected areas. The specific actions to be financed are: (i) training of 150 guards, including about 100 to be hired, and training of field supervisors; (ii) equipment and vehicles at the local and provincial levels; and (iii) infrastructure and service facilities in these forests and in DEF provincial agencies. Boundary delimitation will be initiated, as for the protected areas, particularly where the risk of encroachment is the highest. DEF will prepare management plans for these forests on the basis of current use and inventory. With regard to policy, DEF, under the Program, will also receive support: (a) to prepare a Tropical Forestry Action Plan (TFAP) in accordance with the international approach 9/; this will complement the EAP in the forestry sector (para 3.43); and (b) to manage studies on biodiversity (para 3.43) and to refine the national biodiversity policy (para 2.17). This policy work will be carried out by a team attached to DEF management (para 5.15). This team will receive support in terms of equipment, operating costs, training and technical assistance. (2) Soil conservation, Agroforestry and Other Community-level Projects 3.13 This component will help rural communities protect their watersheds, conserve their soils, develop their productive capacity and improve their living conditions through miniprojects in areas where erosion has the worst impact on the economy. About 30,000 families are expected to benefit from this component, in a total area covering about 150,000 ha. 3.14 Miniprojects will relate to: (i) watershed management including soil conservation, agroforestry and reforestation; (ii) productive infrastructure including the creation and rehabilitation of small irrigation schemes; (iii) support to production including storage 8/ Gazetted forests cover about 6 million hectares in Madagascar. 9/ TFAPs are coordinated worldwide by a secretariat located at FAO. A detailed methodology has been worked out. Several TFAPs have already been prepared in Africa.  - 17 - facilities and rehabilitation of feeder roads, small bridges and culverts; and (iv) social programs including water supply, small health facilities, family planning activities. Priority, however, will remain on categories (i) and (ii) which are expected to attract most of the financing while (iii) and (iv) will be implemented only when they represent a bottleneck for the communities involved. Cadastral surveys and land titling will be carried out to improve land security and stimulate conservation practices (para 3.24). 3.15 This component will be implemented in five priority regions (Antananarivo, lac Alaotra, Fianarantsoa, Mahajanga, and Manakara) which have been selected for their high rural population density, their considerable agricultural potential and the highly negative erosion impact on their economy (see map C). In the Fianarantsoa and Antananarivo regions, miniprojects will particularly focus on watershed protection through anti- erosion techniques and reforestation in close coordination with existing programs under implementation (FPMP and Swiss-supported reforestation). These will complement major civil works in flood-control, sanitation and irrigation to be undertaken in the particular case of the Antananarivo urban and peri-urban areas under a project that has just been appraised. In the Lac Alaotra region, where intense erosion is threatening the largest irrigated area of Madagascar (about 65,000 ha), miniprojects will also focus on watershed protection. A pilot soil conservation program is being successfully implemented in the area, under PPF financing, based on the low-cost establishment of vegetative strips 101 along contours. This will be continued under the Program in close coordination with other soil conservation programs in the area, particularly those financed by the French Caisse Centrale. In the Mahajanga and Manakara regions, miniprojects will mostly concern watershed management, agroforestry and reforestation together with the protection of existing natural forests. Finally, studies and pilot watershed protection will be carried out in the Toliary and Antalaha regions as well as in the upstream watersheds of the Andekaleka and Mandraka hydropower dams (para 3.43). 3.16 The National Association for Environmental Actions (Association Nationale d'Actions Environnementales - ANAE) will manage this component. It has been recently created as a private agency to finance the preparation, appraisal and implementation of miniprojects. Eligible beneficiaries will be exclusively collective bodies (rural associations and village communities) of at least five families. To benefit from ANAE financing, they will have: (i) to be organized with authorized representatives (president, secretary and treasurer); (ii) to participate in the preparation of their miniprojects and collectively approve their design; (iii) to participate in the financing of their miniprojects in cash or in kind (such as materials and labor); this participation will be at least 0l of the initial investment; and (iv) to commit themselves for the full cost of operation and maintenance as well as investment renewal; to 10/ These involve vetiver, among other grass species. Vetiver has been successfully used for soil conservation in Asia. First farmers' reaction are very promising in Madagascar. !  - 18 - that effect, annual contribution will be computed per family. Points (iii) and (iv) will be stipulated in an agreement to be signed by ANAE and a given beneficiary before implementation. At negotiations, an agreement was reached on eligibility criteria which would be revised, from time to time with IDA, on the basis of acquired experience. Field operators, either public of private (para 5.21), will assist beneficiaries in formulating, submitting and implementing their projects. As a matching fund, the ANAE will proviae grants to finance part of the cost of approved miniprojects, to complement beneficiaries' contribution. This miniproject approach draws from the experience of Rural Development Funds (RDFs) which have been successfully Implemented, under IDA support, in various African countries as well as elsewhere 111. The same approach will be applied in the zones surrounding the protected areas (para 3.09). Implementation arrangements are further described in Chapter V (para 5.18 ft). 3.17 The first two years of implementation (Program phase one) will be dedicated to running in technical and financial mechanisms through a limited number of miniprojects. This number will gradually expand during the Program phase two. About 150 miniprojects are 'xpected to be carried out under the Program. Each year, ANAE, on the basis of annual plans proposed by operators, will prepare a consolidated annual plan to be submitted to donors. This plan will estimate the number and types of miniprojects that will be prepared, appraised and implemented. During negotiations, it was agreed with the Borrower that, as a condition of disbursement for this component expected to be partly financed by the Norwegian Aid, the Borrower shall take necessary step for ANAE to submit the first-year plan of operations. 3.18 The ANAE will establish a solid monitoring and evaluation system to capitalize its experience and refine its approach. Technical assistance and studies will be financed: (i) to help ANAE establish its operations; (ii) to develop the capacity of field operators; and (iii) to evaluate _ne ecological, economic and social impact of miniprojects, particularly those regarding soil conservation, watershed management and reforestation (para 3.43). (3) Mapping, Remote Sensing and Geographic Information 3.19 This component will aim to develop mapping and remote sensing tools required for the implementation of other components. Actions are: (i) improving the geodetic network over about 6 million ha; (ii) carrying out aerial surveys and producing conventional maps for priority areas (parks, reserves, gazetted natural forests, major infrastructure) - about 6 million ha will be covered at different scales according to user demand; (iii) producing orthophotomaps for both watershed management and cadastral surveys - about 2 million ha will be covered; and (iv) setting up a E 11/ Countries where RDFs have been supported include, among others, Burkina Faso, Senegal, Niger and Cameroon in Africa, and Mexico and South Korea in other continents.  - 19 - national laboratory for remote sensing (Laboratoire National de Teledetection, LNT - para 3.21). 3.20 This component will be implemented by FTM, the national mapping and remote sensing agency, under the auspices of the Ministry of Public Works (para 2.05). Under the Program, FTM will be strengthened through training, the acquisition of equipment including a map production system, and operating costs. Regarding technical assistance, FTM has just signed a twinning agreement with Institut Geographique National (IGN, France). Under this agreement, IGN will help FTM establish its new equipment, plan its activities, train its staff, and develop its technologies. FTM's organization and management are described in chapter V (paras 5.24 ft). 3.21 LNT will be set up under FTM's management. LNT will provide services to customers, both public and private, in analyzing aerial and satellite information. It will be equipped with a cost-effective computerized system and archives of geographic information in digital form from various types of surveys. The LNT will be staffed by an FTM team that will serve customers, maintain the equipment, and establish and build up a GIS. LNT's organization and management is further described in Chapter V (paras 5.25 ft). 3.22 Map production will follow the demand from the Program implementing agencies. During the Program phase one, FTM will rely heavily on its IGN partner (for example through renting equipment) while focusing on training and methodology and on procurement. During the Program phase two, FTM will progressively meet the demand by itself, using its own equipment. Aerial surveys will be contracted under international competitive bidding. FTM, however, is expected to develop its photo equipment and laboratory so that bidding would progressively be reduced to aircraft renting. (4) Cadastral Surveys and Pilot Land Titling 3.23 This component will aim to: (a) define the boundaries between public and private lands for the protected areas and the gazetted forest-; about 2 millions ha of public lands will be surveyed and titled; and (b) improve private land security through pilot titling in the priority watersheds and village lands around protected areas; about 200,000 ha of private lands are expected to be surveyed and titled (para 3.25). In order to fulfill these objectives, the strategy will be based on: (i) using cost- effective technologies; (ii) streamlining cadastral and titling procedures; (iii) ensuring the protection of the traditional rights of resource users; and (iv) focusing on priority areas where encroachment on public lands is highest and/or the lack of land security creates a strong disincentive for conservation practices. 3.24 The technical and legal process will include the following steps: (i) informing rural communities about the land legislation including the cadastral and legal process for land titling; the Malagasy land laws and registration are coherent (para 2.07) but insufficiently known by resource users; (ii) running cadastral surveys to clarify land rights and  l - 20 - to separate the public from the private domain; these surveys will be carried out with orthophotomaps, a technology already used in Madagascar, which greatly reduces the costs compared to traditional topographic surveys; (iii) establishing and delivering land titles, for both the public and private domains; and (iv) establishing a modern land property record system allowing easy and cheap retrieval and updating. The cadastral operations under the Program will be carried out primarily in rural areas. They will be closely coordinated with cadastral operations in urban areas to ensure a consistent cadastral policy and institutional framework. This coordination will be particularly close with the urban cadastral program that will be implemented in the IDA-supported Antananarivo Plain project. 3.25 The first two years of implementation (the Program phase one) will be devoted to training, institution building, procuring equipment and refining methods. Then operations will be progressively expanded during the Program phase two. This two-phase approacn is particularly indicated to test the proposed procedures under different conditions around the country. This test will be carried out on about 40,000 ha over the first two years 12/ with close monitoring; results will be evaluated during the mid- tem review and the phase two program defined. A study of the impact of land titling on conservation practices will also be prepared for the mid- term review (para 3.43). Assuming this review is reasonably positive, cadastral rhythm could be progressively increased to reach about 60,000 ha/year 13/ during the Program year 5. This means that about 200,000 ha of private lands could be titled under the Program. Most of these 200,000 ha will be located in the highlands where private ownership has been a tradition for decades. In forest and coastal zones where most of the protected areas are located, the Program will finance: (i) an inventory of areas where customary land rights, based on common property, still prevail; and (ii) a study to define approaches aiming at protecting these rights and to ensure their integration in the national land legislation (para 3.43). Then, small tests of land titling will be conducted under strong monitoring. These tests will be carried out only in areas where land tenure appears to be a major bottleneck for development and/or an incentive for further encroachment in natural forests. During negotiations, Government presented a draft proposal for cadastral surveys and titling in common-property areas (para 8.01). Furthenmore, Government has agreed to prepare an action plan to deal with priority areas under common-property systems. This plan will include both the inventory of these areas and possible amendments to be made in the land legislation regarding them (para 8.03). Within this plan, work programs for land titling will be reviewed with, and approved by IDA each year around October. This approval will be a yearly condition of disbursement for the cadastral component (para 8.04). 12/ The current cadastral and titling rhythm is about 10,000 ha/year. 13/ The governmental target for cadastral surveys and titling has been set up at 200,000 ha/year. This could be achieved in the second five-year slice of the EAP, assuming that Program implementation is conclusive in this field.  - 21 - 3.26 In areas where titling is complete, registration of changes wiil become compulsory. Legal amendments to this effect are a condition of disbursement for this component (paras 2.15 and P.04). 3.27 This component will be implemented by the Direction du Patrimoine et de la Reforme Agraire (DPRA, the Malagasy cadastral agency, now attached to MinAgri). To fulfill its mandate, DPRA will be strengthened through: (i) intensive training and technical assistance; (ii) acquisition of vehicles and equipment for its cadastral teams; (iii) equipment of its regional and national offices with simple computerized systems for delivering titles and establishing cadastral records; and (iv) related operating costs. DPRA will procure orthophotomaps and corresponding digital files from FTM, according to a recent Government decision that establishes a clear-cut cost-effective distribution of responsibilities between these two agencies. While progressively contracting with private surveyors for topographic works for individual land registration and transfer, DPRA will focus on large cadastral operations for systematic land titling. This distribution of responsibilities is expected to increase DPRA efficiency and, at the same time, to stimulate the development of small surveying companies. At negotiations, agreement was reached on the transfer of individual topographical surveys for private properties to private surveyors. This will be enacted by the publication of a regulation no later than June 30, 1991 (para 8.03). The exemption for registration, topographic services and other charges for collective cadastral surveys will be a condition for disbursement for the cadastral component. Cadastral surveys and land titling will be closely monitored (para 3.25). In addition, a series of studies will be carried out: (i) an inventory of priority areas under common-property land rights and a study on legal ways to protect them (paras 2.16 and 3.25); (ii) a study for establishing computerized cadastral records (Program year 1); (iii) an evaluation of the impact of titling on conservation practices and farm investment (para 3.25); (iv) a study on land renting, legal amendment required and appropriate procedures for registration; (v) merging land laws into a consistent land code; and (vi) land taxation review. (5) Training, Education and Communication 3.28 This component is at the heart of the Program. It will aim: (i) to provide training for the implementation of the other components; (ii) to build up the human resources to match the job creation expected during the overall EAP implementation; (iii) to introduce environment in the curricula of primary education; and (iv) to increase resource users' and decision- makers' awareness of the main key environmental problems and of ways to deal with them. The ONE will coordinate the execution of this component (para 5.03). 3.29 In view of the general lack of environmental knowledge and skills in Madagascar, intensive training will be a priority, particularly during phase one. For that purpose, all executing agencies will have a specific training program. Most training will be on-the-job and take place in Mladagascar. Scholarships and study visits abroad will be limited to specific training that cannot be delivered in the country. Technical assistance contracts will systematically include training obligations. For  - 22 - example, foreign operators that will assist in the management of the protected areas will develop training programs leading to a phased elimination of their direct operational involvement. 3.30 At the university level, new degrees will be developed to meet the demand generated by the EAP. Initial investment and operating costs will be financed under the Program. In this domain, the Ecole Superieure des Sciences Agronomiques (ESSA, National College for Agronomic Sciences) will develop special diplomas for biodiversity protection and for soil conservation and watershed management. The acquisition of these diplomas will involve intensive field work that will prepare students for their future jobs. For this purpose, ESSA will take over the management of a protected area, under the Program, including management of actions in the surrounding area. 3.31 Environment will be introduced in primary education on the basis of the experience acquired by WWF and the Ministry of Basic Education (MINESEB) in the production of environmental books and the training of teachers (para 2.08). This action will be expanded to about 202 of the primary schools in Madagascar under the Program. Activities to be financed will include: (i) production and distribution of environmental text books; (ii) training of teachers; and (iii) support for environmental activities to be undertaken by the schools (visits to protected areas, soil conservation miniprojects in school backyards). These activities will be closely coordinated with the National Education Project (CRESED), which has been approved by the Board on February 13, 1990. 3.32 The Program will also include environmental training, information and awareness campaigns s (i) to inform resource users of the activities in the various Program components; and (ii) to build environmental awareness of the various layers of Halagasy society. These campaigns will be based on a combination of media that will depend on the target groups to be reached; they will includet (a) the organization of seminars and training programs; (b) the production and distribution of small environmental manuals, bulletins and posters; (c) the production &Ad broadcasting of radio programs; and (d) the production and distributior. of videocassettes. These campaigns will be coordinated with extension programs carried out by public and private operators in the Program priority areas. A close coordination will particularly be established with the Pilot National Agricultural Extension Project (PKAEP), soon to be submitted to the Board. 3.33 Specific trairing related to the implementation of the various Program components will be directly handled by the respective executing agencies. Other activities (support to primary, secondary and higher education, and awareness campaigns) will be coordinated by the ONE, through a small team of high level professionals (para 5.03). However, they will be carried out by various public and private agencies: (i) support to education will be under MINISEB's responsibility for primary and secondary schools, and MINESUP for universities; (ii) media production will be contracted to specialized public agencies (e.g. Malagasy Radio and TV agency), private companies and NGOss and (iii) the technical content of messages will be defined by the corresponding executing agencies (e.g.  - 23 - ANGAP and DEF for biodiversity, ANAE for community ininiprojects, DPRA for cadastral and titling operations). Regular surveys will be carried out to monitor implementation, measure the impact on the target groups and get feedback from resource users on the Program activities. Before the mid- term review, a special study will be carried out to assess this impact (para 3.43). 3.34 Special attention will be paid to the environment/population problem by disseminating the excellent audio-visual materials prepared by the Government with the technical assistance of the Futures Group (a Washington-based consultant) and USAID financial support. Large scale campaigns, consistent with the national population policy, will be organized in association with family planning activities in the Program priority areas. (6) Environmental Research 3.35 This component will aim to improve technologies that preserve natural resources while developing production potential in a sustainable manner. The strategy for implementation will be based on the following principles: (i) coordination of all environmental research in Madagascar to avoid redundancy and improve efficiency; (ii) priority given to applied research; (iii) flexible funding on the basis of annual planning; (iv) selection of research agencies on the basis of their experience and comparative advantage; (v) mobilization of foreign support and liaison with international environmental research networks; and (vi) quick application of results in pilot operations within the EAP framework. Two programs are planned: one on marine and coastal research; and the other on land-based environmental research. 3.36 The marine and coastal research program will aim to develop practical approaches to protect marine resources and allow their sustainable development. It will include the following activities: (i) a feasibility study and on-site pilot project for extensive shrimp farming; (ii) a feasibility stutdy on the use of secondary fish catches during shrimping (about 20,000 tons/year of fish are thrown away); (iii) a study of inshore lobster stocks to work out guidelines for sustainE.ble exploitation; (iv) a study of mangrove crab; and (v) an inventory of marine biodiversity and a development program for marine parks with an eye on touristic development. This list is not restrictive in the sense that other priority research themes may appear during Program implementation. Mechanisms for annual planning and flexible funding will allow their inclusion (para 5.05). 3.37 Within the long-term agricultural research masterplan (para 1.12), substantial land-based environmental research is already underway. This on-going research will be complemented, under the Program, by the following activities: (i) inventory of the flora and fauna of Madagascar in the protected areas, with the progressive establishment of a national biodiversity data system and vegetation mapping; this will be progressively integrated into the geographic information system (para 3.21); (ii)  - 24 - inventory of the large range areas, particularly in the west, through mapping and light ground surveys with a view ) defining improved technologies for better management, particularly including better control of bush fires; (iii) regeneration and propagation of endemic plant species, especially wood species; and (iv) propagation of threatened animal species. This list, as for marine research, could be amended on the basis of new priorities emerging during Program implementation. 3.38 Environmental research programs will be reviewed and approved by the ONE Scientific Committee, the ONE being responsible for coordinating environmental research (para 5.33). These programs will be implemented by various national research agencies, selected on the basis of their experience and comparative advantage. The MRSTD national research centers will continue to play an important role, namely FOFIFA for soil conservation and natural forest management; the Centre National pour la Recherche Oc4anographique (CNRO, National Center for Oceanographic Research) for coastal and marine research; and the Centre National pour la Recherche Ervironnementale (CNRE, National Center for Environmental Research) for other land-based research not covered by FOFIFA 14/. Utniversities will also be involved in environmental research, in association with the new environmental training to be supported under the Program (para 3.30). 3.39 In support of the above specific research programs, the Program will also finance basic equipment, institution building, data management, training and technical assistance for the research centers involved. Regarding technical assistance, a special effort will be made to mobilize foreign research agencies and universities to support environmental research programs and help Madagascar establish its national research institutions. This has already been initiated by CNRO and CNRE which have both signed partnership agreements with the Office de Recherche Scientifique et Technique d'Outre-Mer (ORSTOM), a French research institute. Other similar agreements have been established between Malagasy and foreign universities. This will be enhanced under the Program. (7) Support Activities 3.40 This component will aim: (i) to ensure coordination of the other six components; and (ii) to develop the national environmental policy and establish the tools and procedures for its impltmentation. ONE, the Malagasy environmental agency, will be responsible for fulfilling these two objectives. In the short term, during the Program launching, the coordination role will be the priority; subsequently, the second will progressively become ONE's main task. ONE will not be involved in controlling day-to-day operations. The implementing agencies will be fully 14/ Besides FOFIFA, CNRO and CNRE, the Centre National de Recherche Pharmaceutique (CNRP, National Center for Pharmaceutical Research) will have a role, although of a lesser extent, for research on medicinal flora. l  - 25 - responsible for the management of th}eir respective components. ONE will rather be the Program promoter, coordinator and communicator, providing the various executing agencies with information and feed back on the overall program while building up its policy capacity. 9'R 3.41 In its coordination role, ONE will concentrate on: (a) annual planning and corresponding allocation of funds (para 5.39); (b) monitoring and evaluation (para 5.37); (c) studies (para 3.43); (d) training, education and awareness (para 3.28); and (e) accounting consolidation (para 4.10) and procurement (para 4.12). ONE will also be responsible for liaison with donors and further mobilization of funds. To facilitate its role, ONE will have a seat on the boards of ANGAP and ANAE; it will also participate in reviewing and approving annual work plans prepared by the other implementing agencies (CNRO, CNRE, FTM and DPRA). Finally, ONE will provide the secretariat to the Steering Committee for Program implementation (para 5.05). During negotiations, the functions of this Committee were agreed upon, as well as its annual meeting date (each December during program implementation - para 8.03). 3.42 In its policy and procedures role, ONE will be responsible for: (a) developing environmental policies and corresponding legislation, rules and regulations; (b) establishing EA procedures and controlling their application; (c) monitoring and evaluating the implementation of environmental policies; (d) establishing an environmental data management system as part of a environmental data network (para 5.41); and (e) representing Madagascar in international fora. There will be a strong synergy between the two roles of the ONE, the former providing the field experience to develop the latter. 3.43 The ONE, in association with the other executing agencies, -will coordinate the launching of Program studies (preparation of terms of reference, selection of consultants, and contracting), monitor their execution and disseminate their results. In some cases, ONE will directly manage the execution of these studies while, in others, it will be the executing agencies. Local consultants will be involved as much as possible (para 4.12). The number of these studies will be fairly large because of the Program's novel nature, its policy content, its process feature and the need to capitalize early experience. These studies will concern five themes: (i) Organization, management and data system. This category will include six studies: three will deal with the first establishment of the three new institutions (ONE - para 5.03; ANGAP - para 5.09; and ANAE - para 5.19). They will require consultants to assist the new managers in the practical launching of their operations, on the basis of already-prepared general O&M proposals. These studies will be managed by the concerned agencies and carried out during 1990. With regard to ANGAP, the study will particularly include the establishment of the national biodiversity data system (para 5.42). With regard to ONE, the study, while focusing on ONE's start up activities, will also deal with data systems including: (a) an  - 26 _ assessment of the priority demand for data under the Program; (b) a clarification of institutional responsibilities for data management; (c) a proposal for low-cost networking; and (d) a proposal for ONE's proper data system and a detailed definition of ONE's role in data coordination. The other three studies will concern: (a) a management audit of CNRE (1990, para 5.34) under MRSTD's responsibility; (b) establishment of the LNT (1990/91, para 5.25) under FTM's responsibility; ano (c) establishment of a computerized system for cadastral records (1991, para 5.30), under DPRA's responsibility; (ii) Land and environmental policy. This category will include eight studies. Four will concern land policy and will be executed under MinAgri's responsibility: (a) inventory of priority areas under common-property land rights and legal ways to protect them (1990, paras 2.16 and 3.25); (b) land renting and sharecropping review, legal implications and registration (1992, para 2.15); (c) land taxation review, impact on conservation and proposed modifications (1993, para 2.15); and (d) merging land laws into a consistent land code (1993, para 2.16). Four other studies will deal with biodiversity and environment; two under DEF responsibility: (e) review of the list of endangered species and updating system (1992, para 2.16); (f) economic utilization of flora and fauna, fees and taxation (1991, para 2.16); and the other two under ONE's responsibility: (g) review of environmental legislation and production of a booklet for public information (1994, para 2.16); and (h) establishment of EA procedures (1990, para 2.16). The Program also includes a provision for financing EAs to be carried out under ONE's coordination during Program implementation; (iii) Forestry sector. Under the Program, DEF, with consultant support, will be responsible for preparing the Tropical Forestry Action Plan (TFAP - 1990/91, para 3.12). The TFAP will aim to refine the national policy in terms of priorities for the conservation, regeneration and sustainable use of the forest resources and to define further investment programs. The TFAP will take stock of what has been done in on-going projects (FPMP, Energy I...) and will build on the EAP. The TFAP will pay particular attention to institutional aspects and current forestry legislation. The ONE will be closely associated to TFAP; it will particularly help DEF mobilize support from the other agencies in the agricultural and energy sectors; (iv) Operational review. This category will include a baseline survey to be carried out in 1990 (para 5.37), and four studies in 1992/93 in order to prepare for the 1993 mid-term review. These studies will include: (a) impact of land titling on conservation practices (para 3.25) under ONE's respornsibility; (b) ecological, economic and social impact of ANAE miniprojects (para 3.18) under ANAE's responsibility; (c) development of eco-tourism (para 3.10) under ONE's responsibility; and (d) impact of environmental education and awareness (para 3.33) under ONE's responsiblity. The same studies will be repeated in 1995 in order to prepare the second five-  - 27 - year slice of the ZAP, as well as the completion report and the ex- post evaluation; and (v) Preparation of new activities for the second five-year slice of the ZAP. This category wi'll include four studies under ONE's responsibility: (a) soil conservation and watershed mariagement plans for the Antalaha and Toliary regions (1994, para 3.15); (b) watershed management plans for Andekaleka and Mandraka hydropower dams (1990191, para 3.15); (c) protection of infrastructure in coastal areas damaged by cyclones; and (d) preparation of the second five- year slice of the EAP. The implementation of some of the watershed management plans coming from (a) and (b), and protection activities from (c) could be initiated during Program implementation. Contingency funds are also planned to finance other studies that could prove important during Program implementation. 3.44 Besides the above studies, the Program will finance ONE's building, equipment, training, operating costs, data management system and technical assistance. With regard to ONE staff, the Program will finance newly-created positions. Regarding non-civil servants i.e. national and international specialists contracted on the private market, the Program will support 1002 of their costs. ONE will be physically established in an old building that is part of the Antananarivo cultural heritage. This building will be rehabilitated and fully equipped under the Program. IV. COST, FINANCING AND PROCUREMENT 4.01 The Program cost estimates are tentative. The process nature of the Program and its novelty will call for annual adjustment and possible reallocation as some activities develop faster than expected, while other slower. The proposed financing plan accomodates the relatively large number and diverse nature of participating donors, the different types of financing agreements (cofinancing, parallel financing) and the likely mobilization of additional funds in the course of implementation. A. Program Costs 4.02 The Program cost has been estimated at US$ 85.5 million, or 154 billion FMG, including taxes, physical and price contingencies. The following inflation assumptions have been used: 1989 1990 1991 1992 and after Local annual inflation 9.5Z 8.52 8.02 7.02 Foreign annual inflation 3.6Z 4.3Z 4.3Z 4.32 Exchange rate at post-appraisal: 1650 FMG per dollar Expected date of effectiveness: January 1991  - 28 - Of this amount, the biodiversity component, including protection of parks and reserves, assistance to DEF and peripherai zone development, will represent 322; soil conservation, agroforestty and rural development mini- projects 152; mapping and geographic information 152; cadastral surveys and titling 11Z; research 62; and support, including awareness, education and communication, 21Z. The cost of on-the-job training to be carried out by implementing agencies plus that of formal training &t university level represent US$7.2 i.e. about 9% of total Program cost and about 70% of incremental staff cost. The cost in foreign exchange of the program has been estimated at around US$37.9 million (44Z of total costs), and taxes and duties at about US$13.2 million (152). Table 4.1 below shows the breakdown of Program costs. TABLE 4.1: Program Cost SunLary Component $Million z Biodiversity 27.7 32 . conservation ($13.5 M'n, 16%) . development of buffer zones ($9.2, 11%) . assistance DEF ($5.0 Ml'n, 6%) Soil conservation/Agroforestry 12.7 15 Happing and geographic information 12.7 15 Cadastral surveys and titling 9.0 11 Research 5.1 6 Education/awareness 3.3 4 Support Activities 15.1 17 ONE ($4.4 M'n, 5%) Studies ($10.7 M'n, 12%) Total 85.5 100 14.03 All costs have been estimated on an incremental basis in excess of existing financing. With regard to staffing, the cost of new civil service posts created under the Program and the cost of contract staff and consultants have been incorporated. Annex 15 shows project cost summaries. B. Program financing 4.04 The Program provides a consistent framework within which do z-rs will intervene either on joint or parallel financing according to both Malagasy interest and their own. Following a donors meeting on February 14 and 15, 1990 in Paris, a financing plan has been worked out to cover all the Program costs. Participating donors would include IDA, UNDP, UNESCO, EEC, USAID, the Swiss, Japanese, Canadian, and Norwegian Aids, GTZ and KFW from Germany, Caisse Centrale and FAC from France, ODA, WWF, AICF and Conservation International. Table 4.2 indicates the donors' respective  - 29 - 1 interests in financing the Program per component, aixaough some of the donors have not yet indicated the component(s) they would like to finance (ODA, Japanese and Canad'an Aids) Table 4.2 - Donors Specific Interests in ProRram Financing (!IS$ million) PROCRAM COMPONENTS 1 1 2 a 4 5 6 7 B10- SOIL MAPPING SURVEYS ENVIRON- TRAINING, SUPPORT DIVERS1TY CONSER- AND MENTAL EDUCATION, ACTIVITIES VATION TITLING RESEARCH AWARENESS COFINANCING IDA X X X X NORWAY X X X XFW (GERMANY) X PARAULEL FINANCINK USAID X X X X SWITZERLAND X X x x UNDP x x x UNESCO X X X GERMANY X x X WWF X X X EEC X X X X X X FRANCE X X X X X X CONSERVATION INTERNATIONAL X X X X 4.05 Some of the Program components (e.g. biodiversity, education and training) could be over funded. Those components, as well as others, if other future donors are interested, could be expanded in the future as the Program develops. This possibility will be annually reviewed by the Steering Committee (para 5.05) according to results and capacity of involved agencies and field operators. 4.06 The financing plan has been worked out on the assumption that conservation activities will be financed by grant aid, in recognition of the global interest and benefit from preserving Madagascar's biodiversity patrimony, as part of the world heritage. Other components will be financed by grants or soft credit conditions, with priority given to grants if available. IDA will take the role of financier of last resort for all components. The allocation of IDA funds will be reviewed during the annual planning process (para 5.05) and during the mid-term review (para 5.37). 4.07 Following negotiations and further consultations with other donors, the financing plan has been concluded as pr-sented below:  - 30 - Table 4.3 - Program Financing Plan (US$ million) Component Total Government IDA Other Donors Biodiversity 27.7 5.3 22.4 Soil Conservation 12.7 2.7 - 10.0 Cartography 12.7 4.2 8.6 - Land Titling 9.0 2.9 6.1 - Research 5.1 0.9 2.3 1.9 Education and Awareness 3.3 0.3 - 3.0 Support 15.1 1.1 9.0 5.0 Total: 85.5 17.2 26.0 42.3 According to this plan, IDA would finance 27X of the total Program cost and be associated with Norwegian Aid (52 of total Program cost). Other donors would intervene in parallel financing to cover about 482 of total Program cost. About two thirds of external financing would be in grant. Norwegian funds will be administered by IDA. As mentioned above, this plan may evolve during Program implementation. 4.08 Government contribution will represent 5.52 of the Program cost net of taxes, and will include for all components of the first slice of the EAP, 202 of salaries and indemnities (net of taxes) and 202 of maintenance costs (net of taxes). Given the above hypothesis, Table 4.3 indicates the financing plan for the Program. 4.09 Each of the major participating donors is taking the lead not only in the financing b t also in finalizing component J'esign and in subsequent supervision of one of more specific component(s) in order to simplify disbursement and better focus supervision (para 5.45). IDA will be the main financier and technical agency for three components: mapping and geographic information; cadastral surveys and titling; and support activities (establishment of the ONE, environmental policy and coordination). USAID is taking the lead for biodiversity and Swiss Aid for soil conservation, agroforestry and community-level mini-projects. 4.10 Annex 5 presents the financing mechanism that has been agreed by Government (para 8.03) by which funds for the Program will be directly channeled to the six main implementing agencies (ANGAP, ANAE, FTM, DPRA, ONE, and DEF) for their respective components. Each of these agencies will set up financing and accounting systems for its component, at both the central and local levels. ONE will help set up these systems on a standard  - 31 - model and then will be in charge of consolidating accounts for the overall the Program. ONE will also commission the audit fo- the various components (para 4.17. 4.11 In keeping with the process nature of the Program, some preparation studies have already been translated into action (e.g. the Lac Alaotra pilot conservation project para 2.20). These actions and many of the preparatory studies were financed by Government (as USAID counterpart funds), by the Swiss Cooperation and by IDA/PPF. C. Procurement 4.12 The Program preparation was carried out by national agencies, supported by consultants, often through joint venture between national and foreign consultants. This type of arrangement will continue to be encouraged in order to stimulate technology transfer and develop Malagasy capacity both in terms of studies and implementation. To the extent possible, consultant contracts will include both design and implementation responsibilities to keep these studies down to earth and make their recommendations more implementable. Each of the seven main implementing agencies will handle its own procurement in accordance with donors' rules. Table 4.4 - Procurement Procedures (US$ million) ICB LCB ILS OTHER TOTAL I. Civil Works 0.64 10.20 10.84 (0.56) (0.00) (0.56) II. Vehicles and 7.57 1.54 9.41 18.52 Equipment (5.26) '1.32) (0.00) (6.58) III.Consultants, Training and 29.57 29.57 Studies (10.29) (10.29) IV. Salaries, Allowances 22.61 22.61 and Maintenance (6.47) (6.47) V. Documents and Supplies 2.1-5 1.54 3.99 (2.13) (0.00) (2.13) TOTAL 7.57 2.18 2.45 73.33 85.53 (5.26) (1.88) (2.13) (16.56) (26.02) ILS International or Local Shopping OTHER Other Procurement Procedures, or Financed by Government or Other Donors following own Procedures Figures in parenthesis represent IDA financing  - 32 - The ONE, however, will play a special role in assisting, advising, and monitoring procurement. Comparable equipment to be used by the different components of the project (computers, vehicles, etc...) will be grouped, when possible, in order to benefit from lower prices through large bids. Table 4.4 above summarizes procurement procedures for categories financed by IDA. Figures are indicative as financing will be adjusted each year in the light of annual work programs and reviewed by the Steering Committee (para 5.05). 4.13 For procurement of goods, works and services financed directly or jointly by IDA, procedures and conditions will follow Worid Bank Guidelines for procurement. In particular: .. a) Procurement for equipment and vehicles will be grouped as much as possible. For amounts over US$ 100,000 (for a total amount of about US$7.57 million), they will be procured under International Competitive Bidding (ICB). For amounts under US$ 100,000 (for a total amount of US$1.54 million), they will be procured under Local Competitive Bidding (LCB) procedures acceptable to the Association. Foreign bidders will not be excluded. Insofar as possible, goods and services will be grouped in homogenous packages to reduce the number of LCBs. For low-cost items to be delivered rapidly and costing less than US$30,000 per contract (for a total amount of about US$2.45 million), International or Local Shopping will be authorized on a short list of at least three suppliers without excluding foreign bidders. Shopping will be managed by the Borrower or by procurement agents selected in accordance with IDA Consultants' Guidelines; b) Contracts for buildings, which will be small and scattered throughout the country, may not interest international contractors; they will be let under LCB without excluding foreign bidders; c) IDA, for the components it will finance, will review bid documents, evaluation and contract award proposals for works, equipment and vehicle contracts over US$100,000; d) Recruitement of consultants fiDanced by IDA will follow IDA guidelines; and e) Contracts for civil works and goods under LCB procedures will be subject to conditions previously agreed upon with the Government concerning registration of bidders, public bid opening and local preference.  - 33 - D. Disbursements 4.14 Disbursements of the IDA credit will be over five years. There is no standard disbursement profile for environment credits. The disbursement forecast is based on the fact that; (i) major investments will take place during the first three years; and (ii) the Program design provides for annual and mid-term review and reallocation. In the event of underdisbursement during the five-year Program period, the lessons learned will be incorporated in the second five-year slice of the EAP and any credit balance cancelled. ONE will advise the main implementing agencies on donors' procedures for disbursement, these agencies being responsible to prepare their own disbursement requests. The disbursement schedule, for IDA credit, is shown in Annex 10 - A. 4.15 Special Account: to expedite disbursement of funds, a Special Account in the name of the Central Bank of Madagascar, will be set up in a bank acceptable to IDA, into which IDA would make an initial deposit of US$1,6 million from the proposed credit immediately after credit effectiveness. This amount represents an estimated average disbursement of funds over a four-month period. Six Caisses d'Avance will be established for use by ANGAP, DEF, ANAE, FTM, DPRA and ONE. The maximum of any caisse d'avance will not exceed US$250.000. Application for replenishment of the special account would be submitted on a monthly basis. The special account would be audited annually by independant auditors (para 4.17). During negotiations, an agreement was reached on the establishment of this special account and of the six caisses d'avance. This agreement also includes the establishment of separate accounts for DPRA, DEF and ONE respectively to receive deposits of Government contribution (para 8.03). 4.16 For activities directly financed, or cofinanced, by IDA, disbursements for all items will be based on full documentation unless authorized for disbursement against Statements of Expenditures (SOE). Disbursements against SOE will be used to reduce the volume of documentation between the Borrower and IDA and the length of the review process for expenditures on single items under US$30,000, on local technical assistance and all operating and training costs. SOEs, for a given component, will be certified by the financial manager of the corresponding executing agency and approved by the Ministry of Finance and Budget. The ONE will assist the executing agencies in establishing consistent SOE Drocedures. Supporting documents for SOEs will be retained by the Borrower and made available for examination by IDA supervision missions. To ensure availability of funds at the local level, public implementing agencies will have a provision of advance money ("comptes locaux") on their bank or treasury accounts, close to the fields where they operate as it is practiced under IDA-supported FPMP 14/. An agreement was reached at negotiations for the establishment of those 'comptes locaux" (para 8.03). 14/ This has been authorized by interministerial decree No. 6498-89.  - 34 - E. Accounts anC Audits 4.17 Each institution involved in program implementation will be responsible for its own accounts concerning the Program; ONE will provide support and coordination, will review component accounts and consolidate them into the program accounts. During negotiations, an agreement was reached that each i;ntitution will: (i) maintain its accounts related to the Program in a satisfactory way; (ii) have its accounts and statements of expenses audited each year by external auditors proposed by ONE and approved by IDA and the other donors; and (iii) submit its audited accounts to IDA and the donors not later than six months after the end of the fiscal year. The ONE will be responsible for recruiting a single audit firm for all components, following IDA guidelines. The preparation of terms of reference, acceptable to IDA, and recruitment of this firm will be a condition of effectiveness. As its first task, this firm, in association with ONE, will help implementing agencies set up their accounting systems according to common standards. This will be financed by the Program. V. ORGANIZATION AND MANAGEMENT A. Institutional Framework and Main Agencies 5.01 Institutions responsible for carrying out this large and diverse set of components will need to be set up or reinforced. In view of the inexperience of national institutions in carrying out a program of this nature and size, and in view of the need to simply create those new institutions, preparation and appraisal devoted considerable time and resources to the institutional framework and its development for the seven 15/ implementing agencies. All participants are aware of the challenge - and the risk- of such a massive institutional development effort. The following guidelines were adopted in order to maxim. e chances of success and to reduce risks: (a) build on existing agencies where possible, through training, equipment and technical assistance on management and operational procedures; (b) Set up three new agencies but keep them small, flexible, and under review (ONE, ANGAP and ANAE); (c) tap the private sector and the international community to complement the public capacity where they have a comparative advantage; both national and international NGOs, particularly those already involved in Madagascar, will have a key role to play; 15! They include: ONE, ANGAP, ANAE, FTH, DPRA, DEF and MRSTD; within the latter, two agencies are expected to play a key role: CNRE and CNRO.  - 35 - (d) decentralize management while maintaining coordination; (e) establish a flexible annual planning process based on solid monitoring and evaluation (para 5.37); (f) mwtch the implementation rhythm with the progressive institutional development; this will be particularly important during the Program phase one (para 3.02); and (g) keep touching base with the grassroots in the decision-making process, particularly in the miniprojects. With these guidelines, development programs were set up for eachp agency, as set out below. Performance will be the subject of annual review ,= and institutional successes and failures will be the major theme of the Mid-Term Review. (1) The National Office for the Environment (ONE) 5.02 To coordinate environmental policy and actions, Government has decided to create the ONE, a small but powerful environmental agency, directly attached to the Ministry of Economy and Plan. ONE, which is the continuation of the EAP coordinating Unit (para 2.10), will be a public agency (EPA); it has been conceived as a center of excellence, able to attract competent staff and characterized by flexible organization and management. 5.03 Organization. ONE will have two responsibilities: to launch and coordinate the Program implementation; and to provide leadership for developing environmental policy and establishing the tools and procedures for its implementation, monitoring aud evaluation (para 3.40). To fulfill these responsibilities, ONE will comprise a group of high-level professionals plus support staff, organized in six teams with the following mandates: (i) environmental policy (policy analysis, planning and environmental legislation - para 3.42); (ii) EA procedures (enforcement monitoring, assistance to the preparation of EA studies, follow-up of their implementation and statutory review - para 3.42); (iii) accounting, procurement and disbursement (accounting assistance, accounts consolidation, commissioning and review of audits, procurement advice, assistance for disbursement procedures - para 4.10); (iv) coordination of training, education and awareness (para 3.41); (v) coordination of environmental studies and management of some of them (para 3.43), as well as coordination of environmental research; and (vi) environmental data management (monitoring, and evaluation, and information systems - para 3.42). 5.04 Management. ONE would be managed by a Director General. He will be responsible for: (i) advising on environmental policy: he will attend cabinet meetings on environment, and, with ONE policy team, conceive and promote environment-related policy and legislation; (ii) participating in operational decision making regarding environment: he will sit on the  - 36 - boards of ANAE (para 5.19) and ANGAP (para 5.10); (iii) participating in international environmental fora: he will liaise with the donor community and play a major role in mobilizing additional funds; and (iv) being the spokesman on environment. The Director General will be assisted by a deputy who will supervise day-to-day operations and monitor Program implementation. 5.05 Board and Steering Committee. ONE's board of directors will be chaired by the Minister of Economy and Plan; its other members will include high-ranking officials from the various ministries (Prime Minister's office, MINFIN, MPAEF, MINAGRI, MTP, MRSTD, MINESUP, MINESEB,...). ONE's Director General will be the Board's Secretary with voting power. There will be a Steering Committee for Program implementation. Government and donors have agreed on the need for this Committee which will provide a joint forum for coordinating the Program. The Committee will: (i) review past operations and draw the lessons; (ii) review proposed annual plans for the Program; arnd (iii) review and adjust annual financing plans. This Committee will be headed by the Minister of Economy and Plan who will be assisted by ONE Director General as Secretary of the Committee. Other members will include high-level representatives of the Program executing agencies; world-reknown environment scientists; and duly authorized donor representatives. This Committee will meet once a year in December, as agreed during negotiations (para 8.03). Finally, ONE will have a Scientific Committee in charge of reviewing and approving environmental researc1h programs (para 5.33). 5.06 Staffing and Technical Assistance. ONE will recruit its staff from two sources: (a) the public sector: civil servants would be seconded to ONE; and (b) the private sector: either by hiring individuals directly or by contracting with consulting firms. Under the Program, most ONE staff are expected to come from the private sector, which has the best expertise on environment. Regarding technical assistance, ONE will contract with consultants to help it establish its operations and procedures (para 3.43). UNDP has just recruited a permanent high-level local consultant to be seconded to ONE. UNDP would also finance temporary consultants to assist ONE (para 5.45). Possible partnership with the US Environmental Protection Agency is being discussed and could materialize during the Program implementation. 5.07 ONE's statutes have been studied by MaLagasy and international consultants whose report is on project file. On this basis, Government has prepared a draft legal statute for ONE, which was presented and discussed at negotiations (para 8.01). A proposed organization and terms of reference for ONE's Director are presented in Annex 4 (A-B). The formal creation of ONE (including the nomination of members of the Board and the appointment of the Director General) will be a condition of effectiveness (8.02).  - 37 - (2) The National Association for the Management of Protected Areas (ANGAP) and field operators 5.08 MPAEF, while keeping the overall responsibility for biodiversity policy, will delegate the coordination of the biodiversity component to a new institution, the National Association for the Management of the Protected Areas (ANGAP) (para 3.11); and the execution to competent field operators 16/. This delegation will be officialized in an agreement to be signed between MPAEF and ANGAP. ANGAP will be a small highly-geared agency, to be established under private law (para 5.10). ANGAP's possible future capacity to manage protected areas directly in the field will be reviewed during the preparation of the second five-year slice of the EAP. 5.09 Organization. ANGAP will be responsible for: (i) helping DEF refine the national policy on biodiversity in collaboration with ONE; (ii) negotiating and contrac-ing with field operators (para 3.11 and proposed contracts in Annex 2 (H)); (iii) mobilizing additional funds for biodiversity; (iv) coordinating staff training; (v) monitoring and evaluating field operations; disseminating information and organizing meetings and workshops with the field operators; and (vi) establishing a national biodiversity data system (para 3.43). To fulfill these responsibilities, ANGAP will be made up of a small group of high-level professionals, organized progressively in 5 teams: (a) policy and planning (liaison with MPAEF, participation in policy making, liaison with international agencies on biodiversity); (b) administration and finances (contracting field operators, collecting and allocating biodiversity L revenues); (c) training and ommunication; (d) monitoring and evaluation; and (e) national biodiversi,y data system (para 5.42). 5.10 Legal statute an.i management. ANGAP will be a private association with a board of directors balancing the representation of the public and private sectors. The board will be chaired by the Minister of MPAEF and will include ex-officio members from public entities (Prime Minister's office, ONE. MINAGRI, MINESUP, MRSTD); it will also include members from national and international environmental NGOs and from th^ national tourism industry. ANGAP, as a private agency, will enjoy flexibility and autonomy in financial and staff management, including staff recruitement. Staff will be largely recruited on the market. The proposed legal statute was discussed during negotiations and Government confirmed ANGAP will be an Association under private law (para 8.01) and declared of public interest. The organization chart and terms of reference of its Director General are presented in Annex 2 (C-D). The nomination of members of the Board and the appointment of the Director General will be a condition of effectiveness (para 8.02). 16/ ANGAP, once fully operational, might directly manage one or several particular protected area, as a test and learning process.  - 38 - 5.11 Field operators. ANGAP will contract with national and foreign operators to prepare detailed conservation and development plans for the proposed protected areas and their surroundings; and to implement them, once approved. Seven such plans have already been approved and operators, including international agencies, foreign NGOs and universities, are in the field to implement them (Annex 2 (B)). Other operators, both national and foreign are expected to join the program and progressively cover most protected areas. An outline of this type of contract is presented in Annex 2 (G). ANGAP will ensure that contracts are in accordance with national biodiversity policy. Special attention will be paid to: (i) training and local staff development; (ii) cost-effective infrastructure that fits in well with natural landscapes and local traditions; (iii) proposed development programs for surrounding areas; and (iv) proposed development for tourism. Regarding transition arrangements between DEF, ANGAP and field operators, it is expected that: (a) current contracts between field operators and MPAEFIDEF would be amended in accordance with the delegation of responsibility to ANGAP; (b) one DEF guard will be kept in each protected area, to be responsible for security and police; his equipment and operational costs will be supported by corresponding operator while his salary will continue to be paid by DEF; (c) other DEF civil servants currently posted in protected areas will have the choice of either resigning from civil service and be employed by operators or being assigned to other DEF activities; and (d) DEF contractual staff also posted in parks and reserves would be rehired by operators. These arrangements were agreed at negotiations (para 8.03). 5.12 Finances. During the Program phase one, ANGAP will be mostly financed by donor grants. It will manage its own investment and operating costs and monitor the funds allocated under donor contracts to field operators for conservation and development. ANGAP will also be responsible for collecting revenues (entrance fees, concession sales, other fees from the tourism industry). These revenues will be used for priority activities in the protected areas not yet covered. These revenues are currently collected by MPAEF and transfered to the Public Treasury. It was agreed with the Borrow2r during negotiations, that, as a condition of disbursement for this component expected to be partly financed by the Norwegian Aid, the Borrower shall have anabled ANGAP to collect directly those revenues. During the Program phase two, ANGAP will progressively develop its financial capacity by mobilizing funds from donors and allocating them to field operators, although some of the latter may continue to be directly financed by donors. During this phase, revenues from tourism shouild begin to cover part of the conservation recurrent costs, complementing donors' contribution (para 6.02). With ANGAP, Government will sign an implementation agreement, satisfactory to the Association, specifying ANGAP's responsibilities for carrying out this component. This will be a condition of effectiveness. In this agreement the on lending of the IDA credit to ANGAP will be on a grant basis but this will be reassessed during the mid-term review. 5.13 Coordination with other implementing agencies. ANGAP will maintain a close working relationship with: (i) ONE, for general coordination purposes, data management, training, education and awareness,  - 39 - and mon'toring and evaluation; ONE will have a seat on ANGAP's board (para 5.04 ); (ii) ANAE, for the financing of development mini-projects in the buffer zones and priority areas (para 3.16); (iii) DEF for the refining of national biodiversity policy (para 3.12), police in the parks and reserves (para 5.11), and the coordination of activities in the protected areas with those in the adjacent gazetted forests (para 3.12); (iv) FTM for the production of maps and setting up of a GIS on some protected areas (para 3.19); (v) DPRA for the demarcation of legal boundaries of the protected areas (para 3.23); and research institutions for flora and fauna inventories (para 3.37). 5.14 Technical assistance. ANGAP will receive technical assistance: (i) to establish its procedures and operations; a special study will be carried out to that effect including tile setting up of its biodiversity data management system (para 3.43); and (ii) to help it coordinate actions in the protected areas. To ensure continuity, a partnership contract between ANGAP and an international entity, is being envisaged. (3) The Forestry Department (DEF) 5.15 Under the Program, DEF will: (i) improve its field management on gazetted natural forests; (ii) prepare the TFAP; and (iii) refine the national biodiversity policy (para 3.12). To fulfill these objectives, DEF will: (a) establish, at its headquarters, a small unit of high-level professionals directly attached to the Director General. This unit will be made up of a senior forester, a soil conservation specialist and an economist plus support staff. It will manage the above three activities, the management of gazetted forests providing the field experience for the other two; (b) decentralize and strengthen 6 regional branches. Each branch will be made up of one senior forester and district forestry officers; and (c) establish about 30 field teams in the gazetted forests. Teams have been sized on the basis of one guard per 2000 ha of forest. 5.16 In preparing the TFAP, DEF will be assisted by consultants with backstopping from the FAO international secretariat for TFAPs, the World Bank and possibly other donors. DEP, in preparing the TFAP, will start from what has already been done within the EAP framework and current project implementation (para 3.43). 5.17 During Program implementation, DEF will maintain a close working relationship with (i) ONE which will participate in the elaboration of the TFAP, as an essential component of the EAP (para 3.12); (ii) ANGAP which will participate in the refining of biodiversity policy (para 3.12); this will be facilitate!d by the fact that the Minister of MPAEF will chair ANGAP's board (para 5.10); (iii) FTM for the production of maps (para 3.19); (iv) DPRA for the demarcation of legal boundaries of the gazetted  40 - forests (para 3.23); and (v) FOFIFA which is about to launch a research program on the sustainable exploitation of natural forests (para 3.38). (4) The National Association for Environmental Actions (ANAE) 5.18 ANAE will contribute to financing the preparation, appraisal and implementation of community-level miniprojects for watershed management, reforestation and other rural development activities (paras 3.13-3.18). The rural communities will be assisted by field operators, financed by ANAE, to identify, prepare, submit and implement their projects (para 3.16). To fulfill its mandate, ANAE will be a small and flexible agency, made up of high-level professionals, based in Antananarivo. It has been established as a private foundation under Malagasy law. The ANAE founding members include national and international NGOs, religious groups, representatives of private businesses and consultants and the EAP coordinating unit (future ONE). Proposals for organization and management have been prepared by consultants and are likely to be adopted shortly. ANAE proposed organization chart well as terms of reference of its Director General are presented in Annex 3. 5.19 Management and Staffing. ANAE's Board of directors has been established with the large majority to the private sector, mostly represented by NGOs (11 seats). Government will have 3 seats (MEP, ONE and FOFIFA). The Board will recruit a Director General by open competition early in 1990. His first task will be to establish the organizational structure and procedures on the basis of the consultants' proposal. He will build up his staff progressively as the portfolio grows. Staff will be hired by open competition, although some fixed-term secondments of civil servants may be made. He will hire consultants to help him establish ANAE and launch start-up activities (para 3.43). ANAE's formal establishment, including the final nomination of members of the Board and the appointment of the Director General will be a condition of effectiveness (para 8.03). 5.20 Organization. ANAE will be organized in four teams: the first will supervise miniproject preparation, submission and implementation. It will be made up of project officers, each responsible for a specialized portfolio (watershed management, infrastructure, social programs..). These officers will follow up on miniproject preparation, plan the development of their respective "pipeline" on an annual basis, appraise miniprojects, and supervise their implementation. This team will be headed by a senior economist; the second will manage the funds, including mobilization and disbursement, and will supervise procurement; this team will also handle the contracting of field operators; the third will be in charge of assisting field operators in training; and the fourth will be responsible for mini-project monitoring and evaluation, an important role for refining ANAE's practices in the light of experience. 5.21 Field operators. ANAE will finance miniprojects in five priority regions (para 3.15) as well as in the surroundings of protected areas (para 3.08). ANAE will contract and finance field operators, either public or private, to help the communities identify, prepare, submit and implement  - 41 - their mini-projects (para 3.16). Operators will include public services, particularly the agricultural extension service, the forestry service, and the health service; NGOs; and private firms. Some of these operators including pubic services and NGOs are already itnvolved in pilot miniprojects 171. In the first instance, ANAE is likely to contract with five operators, each responsible for one priority region, or part of it, including the surroundings of the protected areas. These operators will have a network of field agents and, possibly, subcontractors that will evolve according to the development of the miniproject portfolio. The operators will prepare annual plans to be discussed with, and approved by, the ANAE (and with ANGAP when operating in buffer zones near parks and reserves). During the implementation of these plans, the operators will keep ANAE's officers fully informed about the evolution of miniproject preparation; they will prepare the miniproject dossiers for submission to ANAE Projects Committee (para 5.22); and they will provide short quarterly progress reports on implementation. In the early years, the cost of technical assistance provided by the operators will be relatively high compared to the actual investment in the field. This ratio, however, is expected to decrease substantially with the progressive development of miniproject pipelinrs. 5.22 Financial management. ANAE will receive grants from a number of donors, (para 4.06). It will finance part of the cost of approved mini- projects and its partners, village communities and local associations, will finance tne balance in cash or in kind. The latter will also commit themselves in supporting further operating costs and investment renewal (para 3.16). This will be stipulated in a signed agreement between ANAE and its partners. The miniprojects will be presented to ANAE Project Committee (Comite d'Octroi), made up of the Director General, the senior economist, a representative from ANGAP and representatives from participating donors. ANAE financing will be channelled to its field operators and clients through local bank accounts. This will be closely monitored and compared with the annual plans by ANAE. ANAE, as well as the field operators, will be audited annually by auditors selected by ONE (para 4.17). At this stage, the pace of development is difficult to predict. ANAE will seek extra funding as its activities develop. ANAE could be a good way of channeling local currency arising from debt swaps for conservation. Several such plans are being discussed with bilateral agencies. With ANAE, Government will sign an implementation agreement, satisfactory to the Association, specifying ANAE's responsibilities for carrying out this component. This will be a condition of effectiveness. In this agreement, the on lending of the IDA credit to ANAE will be on a grant basis, but this clause will be reassessed during the mid-term review. 17/ Agricultural extension and forestry services in a pilot soil conservation project in Lac Alaotra area; NGOs such as SAFAFI (Lutheran Church) and ORIMPAKA in reforestation, agroforestry and rural development miniprojects.  - 42 - 5.23 Coordination with other implementing agencies. ANAE will maintain close working relations withs (i) ONE for general coordination; this will be facilitated by ONE's membership in ANAE's board; (ii) ANGAP for miniprojects in the surroundings of the protected areas; this will be racilitated by ANGAP's membership in the ANAE's Project Committee; and (iii) MPAEF and MINAGRI for technical aspects regarding forestry, watershed management and agriculture (the field branches of these two agencies are likely to be involved as field operators in some areas). (5) The Mapping and Remote Sensing Agency (FTM) 5.24 FTM will be in charge of producing maps and geographic information required by the other components (para 3.20). FTM is a public entreprise (EPIC) with more than 30 years of experience in mapping. Once one of the best mapping agencies in Africa, FTM has deteriorated in the last decade largely due to lack of funds (para 2.05). However, FTM still has a core of high-level specialists, and good geodetic and map archives. Its capacity can thus be rebuilt quickly. During preparation, careful financial and technical audits of FTM were carried out and the recommendations of these audits will constitute the basis for the Program activities. 5.25 Organization and Management. Although its main departments will remain the same, FTM will be restructured around a cost-effective map production system that will be fully modernized with the introduction of computerized technology. For operational and accounting purposes, FTM's public mandate (maintenance of the geodetic network, digital files, base map archives and nautical charts) will be treated separately from its client-related activities (para 5.27). FTM will also manage the LNT (para 3.21), a national facility that is being set up for remote sensing and GIS. LNT will maintain the national archives of satellite data, in printed and digital form. It will have a team of high level specialists able to guide and assist customers in the processing of geographically-based data. A study will be carried out to assist FTM in the launching of LNT's operations (para 3.43). The National Committee for Geographic Information (Comite National des Travaux Geographiques) will be revived. Its membership includes the technical ministries and the Prime Minister's Office. This Committee will: (a) review annual plans for aerial surveys, mapping and remote sensing activities undertaken by all agencies to check their priority, to avoid possible redundancy, and to ensure that FTM systematically receives a copy of all the geographic outputs produced by other agencies; and (b) review LNT activities and annual plans. FTM is ex- officio the secretary of this Committee. 5.26 Private operators. Under the Program, aerial surveys (para 3.22) will be carried out by private contractors selected under international competitive bidding (for IDA and other multilateral donors) and bilateral arrangements (for other donors). Cooperation agreements will be worked out between FTM and the selected contractors regarding the employment and training of FTM staff and use of its equipment (FTM has cameras and will develop its photo laboratory under the Program). Private operators will J  - 43 - also be involved in map production to complement FTM capacity, particularly in the early stages. 5.27 Financial management. Government has adopted audit recommendations that FTM become a cost-effective, client-oriented agency. For this purpose, FTH is adopting commercial accounting and audit procedures. It will have separate cost centers for its public service activities, which will initially be fully subsidized, and for its commercial activities. In the long run, FTM is expected to become profitable. This is not expected during the Program period as the agency will be investing heavily in training and will be running in new equipment and procedures. With FTM, Government will sign an implementation agreement, satisfactory to the Association, specifying FTM's responsibilities for carrying out the mapping component. This will be a condition of effectiveness. In this agreement, the on-lending of the IDA credit to FTM will be on a grant basis, but this clause will be reassessed at mid-term review (para 8.03). 5.28 Technical assistance. FTM has just signed a partnership agreement with IGNIFI (the private branch of Institut National Geographique, the French national mapping agency). Under this agreement, IGN/FI will help PTM launch its program, train its staff, and hire equipment that FTM does not need to buy (e.g. for establishing the geodetic network). IGN/PI will provide adapted software and technical assistance. This agreement is being financed by FAC. on a grant basis. (6) The Department of Lands and Agrarian Reform (DPRA) 5.29 DPRA will carry out cadastral surveys and launch a pilot operation for titling private lands (paras 3.23 and 3.27). DPRA has recently become a department of MinAgri (it was formerly part of MinFin). It has a long experience in cadastral surveys and titling but its current annual rhythm (about 10,000 ha) nowhere meets the need. DPRA's operations have been reviewed by both national and international cons_.l.tants. Their recommendations will be the basis for the implementation of the Program cadastral component. 5.30 Organization and Management. DPRA will concentrate its activities on carrying out systematic large-scale cadastral surveys; accelerating the process to resolve disputes; speeding up public and private titling; and establishing cost-effective cadastral records. FTM and other contractors will supply photo-cartographic products. Private surveyors will do the topographic works related to individual titling and land transactions. A great deal of attention will be paid to informing rural coumunities in advance, explaining the cadastral and titling process and associating them in actual surveying works 18/. Under the Program, DPRA will increase the number of its cadastral teams and equip them better. It 18/ This information campaign for cadastral surveys is required by law; it will be enhanced under the Program.  - 44 - will also increase the effectiveness of its mobile land courts (Tribunaux Terriers Ambulants); and will computerize its cadastral offices in Program priority areas to speed up title delivery and improve cadastral records. The latter will be progressively computerized with a central system in Antananarivo and microcomputers in the field. Exchange of information between the head office and the provinces will be through diskettes. A special study will be carried out to help DPRA establish its computerized systems (para 3.43). 5.31 Financial aspects. In order to encourage acceptance of large- scale cadastral surveys and land titling, Government has decided to suspend the application of fees for these services. This suspension will be a condition of disbursement for the land titling component (para 8.04). This loss of fiscal revenue will be made up by the expected improvement in land tax collection (para 6.05). 5.32 Coordination with other im,lementing agencies. DPRA will keep a close working relationship with: (i) ONE for general coordination and for land-related studies; (ii) ANGAP and field operators for the demarcation of protected area boundaries ; (iii) ANAE and field operators for cadastral surveys and pilot titling in mini-projects; and (iv) FTM as its main supplier of photo-cartographic products. (7) Environmental research and main implementing agencies (CNRO and CNRE) 5.33 ONE Scientific Committee. This Committee will have the following functions: (a) to review and approve proposed annual plans for environmerntal research; (b) to select research agencies that will implement the plans and fund them accordingly; (c) to mobilize funds; and (d) to assess the research results and their readiness for practical application. The Committee will be chaired by the ONE Director General; it will comprise representatives of national research institutions, members of the international scientific community (with qualifications acceptable to IDA and other participating donors), and duly authorized donor representatives. The Committee will meet at least once a year; ONE will ensure its permanent Secretary.  - 45 - 5.34 FOFIFA, CNRE and CNRO 191. These three research centers, attached to MRSTD, will be involved in environmental research in association with the national universities and with external support from various foreign research agencies (para 3.39). The three centers have the same legal statute as public enterprises (EPIC). FOFIFA, the largest and best established of these institutes, already has full funding for its program of research in soil conservation and forestry under the IDA- financed National Agricultural Research Project (NARP) 20/. Its inclusion is therefore for coordination purposes. The same organization and management improvements brought to FOFIFA under NARP, will be introduced to CNRO and CNRE under the Program. CNRO has-recently been audited from a financial and technical viewpoint; it has also prepared a master plan for oceanographic research. CNRE is about to follow the same process. It has initiated: (i) a study to review its current programs and organization (para 3.43); (ii) the preparation of a master plan for environnemental research in association with the national universities; and (iii) the preparation of its own priority research programs in accordance with its existing capacity and comparative advantage. These studies are expected to be completed by the end of 3990, and will be the basis for financing research by CNRE under the Program. 5.35 Technical assistance. CNRO and CNRE have already signed a partnership agreement with the Office de Recherche Scientifique et Technique d'Outre Her (ORSTOM), a French research institute. Under this agreement ORSTOM will help these centers train staff, establish data management systems, particularly on water resources, and plan their research programs; ORSTOM will also participate in joint research programs. This agreement is financed by FAC and by ORSTOM itself. Other foreign research agencies have already signed cooperation agreements with CNRE, CNRO and Malagasy universities for environmental research. If these agreements prove productive, their scope could be extended under the Program with possible mobilization of additional funds. (8) NGO Participation. 5.36 One striking characteristic of the environment scene in Madagascar is the involvement of both national and foreign NGOs, both at the level of biodiversity and of rural development. About 20 NGOs are already active and effective, and NGOs have played a leading role in setting up the ANAE (para 5.19 ). The capacity of these NGOs will grow 19/ CNRP will also have a role, although to a lesser extent. 201 KARP ha8 a Steering Committee which meets once a year. ONE will ensure coordination between this Committee and its own Scientific Committee for Environmental Research. !  - 46 - with their participation in the biodiversity and soil conservation components, and other NGOs are expected to get involved. A special effort will be made to develop the capacity of local NGOs. Large international and foreign NGOs will be requested to participate in this effort. The performance of NGOs will be carefully monitored by ONE, as their structures are sometimes fragile and they must not be overstretched. B. Monitoring, Evaluation and Annual Planning 5.37 Monitoring and evaluation (M&E) will be a key instrument for the Program, as an evolutive process, to adjust operations. M&E will particularly aim: (i) to identify institutional, technical and financial bottlenecks in order to remedy them quickly; (ii) to support annual planning for annual adjustment (para 5.39); (iii) to check consistency between the various components; and (iv) to evaluate operations in order to plan medium-term development. Before Program implementation, a baseline survey will be carried out in the buffer zones as well as in the priority areas for miniprojects, to establish a benchmark of pre-program situation (para 3.43). This survey, managed by ONE, will be carried out by consultants. Then, a thorough evaluation of the Program phase one as well as specific studies will be conducted to support the mid-term review. The same evaluation and the same studies will be repeated before the end of phase two to prepare for the second five-year slice of the EAP as well as the completion report (para 3.43). 5.38 M&E systems will be established within the implementing agencies, each having specific indicators in terms of inputs, outputs and impact. ONE will be responsible for advising these agencies, consolidating the results and ensuring consistency. ONE will also prepare detailed terms of reference, acceptable to the donors, for the evaluations preceding the mid term review and the Program completion. M&E, as well as data management systems, are detailed in Annex 7. During negotiations, it was agreed that the mid-term review will take place no later than September 15, 1993, on the basis of a progress report to be sent to IDA no later than June 30, 1993. 5.39 Annual planning, based on M&E results, will be done by the implementing agencies. ONE will advise them, consolidate their plans and submit them to the Steering Committee (para 5.05). These plans will then be presented to the boards of the various agencies for final approval. A general five-year plan for the Program components is shown in Annex 11.  - 47 - 5.40 Progress reports will be prepared and provided in a form satisfactory to IDA twice a year. A midyear progress report will be submitted by April 30. It will provide the basis for preparing the annual plan for the following year. The project completion report would be completed by ONE six months after the c.losing date. C. Environmental Data Systems 5.41 The Program will support the development of environmental data systems according to the following principles: (i) Priority demand: proposed systems will only include priority data required by the Program. A study is about to be launched to identify the various users and the priority data they need within each component (para 3.43); (ii) Networking: each agency will be responsible for its own data system. The ONE will advise on standards to ensure consistency. Data transfer will be done by exchange of diskettes; (iii) Progressive build-up on existing systems; and (iv) Training and technical assistance. 5.42 Four agencies will play key roles in data management: (a) the ONE will be the coordinator of environmental data management systems (para 5.03); (b) FTM, through LNT, will help other agencies deal with remote sensing information and progd.essively set up simple GIS (para 5.25); (c) ANGAP will develop a biodiversity data system which will be progressively integrated into a GIS, with LNT support (para 5.09); (d) DPRA will develop cadastral records that will constitute another file in the GIS. Finally data systems developed under the Program will be coordinated with MRSTD which, under separate financing, is developing a Centre d'Information et de Documentation Scientifiques et Techniques (CIDST - Center for Technical and Scientific Information); a water resources data base; and an inventory of natural resources (para 1.08). D. Technical Assistance 5.43 Technical assistance will play an important role in Program implementation with a special focus on institution building, training, environmental data management, planning and policy. In order to maximize its effectiveness, the following principles have been adopted for technical assistance: (a) developing national consulting capacity by favoring joint ventures between national and foreign firms; (b) building national agencies, particularly the new ones, through long-term partnership agreements with similar agencies in the developed countries; (c) preferring short-term non-resident experts, to long-term resident ones whenever  - 48 - possible; and (d) systematically linking technical assistance to training. 5.44 The application of the above principles has already started. Several consultant joint ventures have been set up for the execution of the Program preparation studies and pilot operations. Some long-term institutional partnerships have been signed (FTM - para 5.28, CNRO and CNRE - para 5.35). Similar agreements are being discussed for the ONE (para 5.06) and ANGAP (para 5.14); others could be initiated for DEF and DP. Foreign partners would generally provide a package including training, technology tranfer, assistance to planning, monitoring and data management, and linkage to international networks. E. Supervision 5.45 The Program, because of its novel and complex nature, will need a substantially higher supervision than traditional IDA projects. Accordingly, special mechanisms have been established at both international and national levels. At the international level, a Multi-Donor Secretariat (MDS) is being established for 3 years at the World Bank Headquarters (para 3.03); MDS is directly supported by USAID and the World Bank. At the national level, a Malagasy expert, financed by UNDP and supervised by IDA, has been hired and seconded to ONE. This expert will act on behalf of the donors and will be responsible for coordinating foreign technical assistance and donor interventions. The expert, for example, will be responsible for programming and preparing supervision missions, and for preparing periodic donor meetings and consultations. The expert is already in the field to help coordinate the Program start-up activities. In addition, UNDP has agreed to finance a provision of consultancy (10 consultant-months a year) to backstop the national expert, and particularly strengthen the ONE. Finally, each of the major participating donors will take the lead for the supervision of one or several components, e.g. USAID for biodiversity; Swiss Aid for soil conservation, agroforestry and mini- projects; and IDA for support activiti_s, mapping and geographic information; and cadastral surveys (para 4.09) VI. COST RECOVERY AND FISCAL IMPACT A. Cost Recovery 6.01 Cost recovery has not been the first criterion for Program activities since most expenditures will generate large externalities for the nation or, in some cases, for the rest of the world as well. Nonetheless, in order to test sustainability, we have analyzed cost recovery mechanisms for selected components. Given the novel nature of many activities, detailed projections have been unfeasible in most cases and the following analysis remains mostly indicative, as set out below. (1) Biodiversity Protection and Management  - 49 - 6.02 The improved management of reserves will generate revenue from entry fees, royalties and - possibly - from a tourist fee (para 2.18). ANGAP will collect these revenues which, together with other income (e.g. from the sale of rare species), are expected to cover about 302 cf its recurrent costs by the end of the Program, and about 802 by the year 2010. These estimates are based on conservative assumptions in terms of hotel development and growth of ecological tourism (see Annex 8). Since there is very little experience in this area, particularly in Madagascar, this forecast of financial recovery may still prove optimistic. This will be carefully monitored and evaluated (para 3.43). In particular, ANGAP together with ONE will ensure that parks and reserves can sustain the actual increase of ecologi6al tourism. 6.03 ANGAP may also have fringe revenues, such as the sale of tourist and biological maps, and camping fees in controlled areas of parks and reserves. These have not been taken into account. (2) Mapping Activities 6.04 As already mentioned (para 5.09), FTM's mapping activities are expected to become self-sustaining in the long run. Substantial income is particularly expected from the production of tourist maps related to the protected parks and reserves. However, by Program year 5, only 202 of recurrent mapping costs are expected to be covered. B. Fiscal Impact 6.05 The direct fiscal impact of the Program is expected to be neutral in the short term as increasing Program-generated public revenues would offset increased public recurrent costs. In the long term, assuming that the EAP continues to be implemented as scheduled, the fiscal impact should become positive as tax collection and other public revenues build up beyond expected recurrent costs. Some public savings could occur from EAP implementation and would thus reinforce this positive impact. As importantly, Madagascar should be able to continue mobilizing substantial support from the international community, 'argely in grant, particularly for conservation-related expenditures. A cursory review of the fiscal impact per component is presented below. 6.06 Biodiversity. The increasing tax revenue generated by the expected development of ecological tourism, even under conservative assumptions 21/ should largely cover operating costs not already offset by ANGAP's direct revenues (para 6.02). 21/ Total number of tourists reached almost 30,000 in 1589; it is expected to increase to 100,000 in 1995; and to about 200,000 in year 2000. With regard to ecological tourism, cost recovery and fiscal impact have been computed on the conservative assumption that only 252 of the expected tourists would visit only one park per year i.e a revenue of FMG 20,000 per eco-tourist/year for ANGAP (about US$12) through entrance fee.  - 50 - 6.07 ANAE and mini-projects. ANAE, as a private agency, is not expected to have a significant fiscal impact. With regard to public agencies (extension and forestry services) which are expected to help the rural communities prepare and implement their miniprojects, no additional public expenditure should be incurred since related operating costs will be supported by ANAE and no hiring of additional staff is expected in those agencies. 6.08 Mapping and Geographic Information. FTM is expected to become eventually a profitable agency by selling its products and services to its public and private clientele (para 5.27). At the same time, changing map production from supply- to demand-driven together with better monitoring of aerial surveys to avoid redundancy (para 5.25) should result in more cost- effective use of public resources. Finally, FTM might eventually develop operations outside Madagascar and become a competitor to reckon with on the international market because of its low labor cost. 6.09 Cadastral surveys and titling. In the short term, the fiscal impact of this component is expected to be neutral. The present land registration dues will be suppressed in large titling operations (para 5.31) but will be compensated by an increased land tax collection due to improved cadastral records. In the long term, however, the fiscal impact is expected to be positive because of further increase in land tax collection. This additional fiscal revenues, while covering the operating costs of the land registry, could contribute to the financing of local services. At present, only 3Z of the land tax collected finances local services, but the issue will be reviewed under the land tax study (para 3.43). 6.10 Apart from land tax collection described above, another source of income related to cadastral activities will be the development of private topographic companies (para 3.31). Government will collect taxes from new land registration as well as fiscal revenue from these companies. Government will also collect additional revenue through registration dues as registration of land transactions become compulsory (para 2.15). The magnitude of these revenues remains, however, very difficult to estimate at this stage. 6.11 Environmental research. The impact on Government-incurred recurrent costs is expected to be limited as the component will focus on relatively small applied research programs with a limited lifespan and mostly managed by existing staff. Furthermore, a substantial input (as grants) is expected from bilaterally-financed foreign research agencies. 6.12 Training, education and awareness campaigns. The fiscal impact of this component will be neutral for the following reasons: (i) training, while requiring a major effort during the Program, will eventually return to current level; (ii) education will not entail new hiring in the public sector; and (iii) awareness campaigns will mainly involve private firms.  - 51 - 6.13 ONE will be the only institution without any capacity to generate public revenue. It will add to the executive structure of the Government. Its fiscal impact will however decrease over time as it becomes a policy body, its direct operational involvement being progressively phased out. ONE's role in implementing EAs' procedures is also expected to result in public savings as environment-damaging, non-sustainable investments are expected to be progressively eliminated; this effect will be more economic than fiscal. VII. BENEFITS, ECONOMIC JUSTIFICATION, AND RISKS 7.01 The annual cost of environment degradation is between US$100 and 290 million in Madagascar. i.e. between 5 and 152 of current GNP 22/, according to a rough estimate made during the preparation of EAP. About 752 of this cost comes from deforestation; about 152 from decreasing productivity in agricultural and pasture lands due to erosion; and about 102 from increasing operating costs and reduced lifespan of infrastructure. The order of magnitude of this degradation underscores the urgency to stop it, or at least to slow it down. It also provides an indicative benchmark against which the benefits, the economic impact and the risks of the Program can be assessed. 7.02 This assessment, however, is more qualitative than quantitative due to lack of solid data and experience on proposed activities. As the Program develops, so will monitoring and evaluation systems to provide planners and decision-makers with data and to help them refine environmental policies, assess their economic impact in more quantitative terms, reset priorities and better guide implementation. A. Benefits 7.03 The Program will set the following processes in motion: Madagascar should have a legal, financial and institutional framework in place, together with the necessary skills and tools, to provide effective environmental management; the incentives facing farmers in key locations should encourage conservation rather than the opposite; and decision-makers and the public should be aware of the key environmental problems and what needs to be done about them. 7.04 These processes in turn are expected to yield the following benefits: 22/ In OECD countries, the annual cost of environmental degradation has been estimated at 4 to 52 of the GNP, according to recent OECD studies. This cost is however more related to pollution than to degradation of natural resources.  - 52 - - The now threatened sites of world-renowned biodiversity should be conserved. This will give Madagascar the option of developing an ecologically-based tourist industry, and will give the world community access to genetic stock, use of biota for medicinal purposes, material for basic research, etc. We have not attempted to value such access. - A beginning will be made at slowing down, in an economically efficient manner, the rate of deforestation and that of soil loss. This will maintain the patrimony of natural forests, improve agricultural production and reduce damage to roads and other infrastructure. - A basis will have been provided for an economic development program -- involving tourism, the use of the natural forest products, park development, food processing based on increased output, the export of services in mapping, and techniques of rural development -- which uses and manages resources in an environmentally positive fashion. This will boost rural income and employment. Employment 7.05 The Program will directly create about 1100 jobs of which 552 in the public sector and 452 in the private sector. Out of this total number of jobs, about 30Z will be for professionals and about 702 for support staff and low-level technicians. Conservation in conjunction with development will be the main generators of new jobs (39%); then miniprojects (282); cadastral surveys (18Z); mapping (62); ONE (42); and the rest for environmental research, education and awareness campaigns. The fiscal impact of this job creation is expected to be globally neutral (para 6.05). 7.06 Indirect employment creation as a result of the Program (in tourism, agriculture, handicrafts, transport, etc.) is roughly estimated at 5,000 to 6,000 new jobs during the five-year program period. B. Economic Analysis 7.07 Demographic pressures, archaic cultivation methods, and weak institutions are at the root of Madagascar environment degradation. These basic causes are compounded by the lack of proper mechanisms for economic valuation and exchanges, especially in the face of large and imperfectly urderstood externalities. 7.08 The economic causes of environmental degradation in Madagascar fall into three main categories: (i) insecurity of land tenure, resulting in a lack of incentives to invest in conservation measures; (ii) non- tradable outputs in the form of unique but monetarily unvalued flora and fauna, which provide no obvious economic incentives to conserve; and (iii) lack of information among (a) Malagasy farmers, about soil conservation choices, as well as among (b) the general population about the  - 53 - extraordinary international significance of Madagascar's biological endowment, the extent to which it is threatened, and the choices available to conserve it. In additon, the immediate economic interests of poor farmers for survival do not always coincide with the longer-term perspective of environment protection and there is no proper economic mechanism at work to bridge this gap. 7.09 The economic philosorhly underpinning the EAP is to increase the incentives for the adoption of resource-conserving practices in ways which are mutually reinforcing, ensuring thereby that the prospects of success are enhanced and the costs are reduced, since each component reinforces the other. 7.10 (a) Biodiversity -- Conservation and Management. This component is designed to adjust the fact that the outputs and benefits of biodiversity are not traded and "captured" by the people of Madagascar. 7.11 Evaluation: The average annual cost -- capital + operating, + investments in the peripheral zones -- per protected area is $134,000. The global significance of the endowment is universally recognized, and donors appear to be willing to fumd this component. The key question is: Will it "produce" conservation? The World Wide Fund for Nature reports that, for very modest investment in the peripheral zones of Andringitra Strict Nature Reserve (no. 5) and Beza Mahafaly Special Reserve, a high level of commitment has been secured from the local community, exemplified in the former case by the local people putting out a fire which threatened the reserve. This type of commitment is expected to be enhanced under the Program by ensuring that part of the increased revenues generated by tourism do accrue to the local communities as an incentive to participate in conservation efforts. Thus there is reason for (very cautious) optimism. 7.12 (b) Soil Conservation and Agroforestry: Soil erosion from cultivated fields, from burnt over grazing land, and from lavakas is pervasive in Madagascar, and imposes very substantial costs in terms of reduced soil productivity and downstream effects such as siltation of irrigation systems, dams and hydroschemes. At present, farmers do not have available to them "on the shelf' a soil conservation system which is simple, cheap, effective and with low maintenance costs. The market has yet to produce an affordable solution. This component is designed to identify such a system. Two approaches will be used: small projects developed by communities and funded by the ANAE, and assistance with planting vegetative strips along the contours, particularly with vetiver for soil stabilization. 7.13 Evaluation: The criteria applied in the evaluation of project proposals will include, in addition to environmental impacts, considerations such as cost-effectiveness, replicability, technical U simplicity, ease and cost of maintenance, and community impacts. The vetiver project is justified in that the projected benefits are great relative to the costs. However, the soil erosion problem is very extensive, has been around for a long time, and has thus far resisted solution. This is a high-risk program. However, cautious optimism is  - 54 - called for, if one refers to current soil conservation programs in Africa and elsewhere, which have yielded economic IRR between 10 and 20X. 7.14 (c) Cartography and Cadastre -- the assigRnment of property rights. This component will directly address the land tenure problem by gearing up the relevant Malagasy agencies technically, administratively, and legislatively to map, survey and assign property rights. Assignment of property rights is the sine qua non for economically efficient use of environmental resources. These components will provide maps for the reserve areas, and assign property rights in the peripheral zones of the reserves, thereby reinforcing the biodiversity component. It will likewise facilitate and reinforce the soil conservation and agroforestry component, because the assignment of property rights provides an incentive to invest for the future. 7.15 Evaluation: About half the costs of this component are fixed: once the equipment and trained personnel are in place, the marginal cost per hectare to which property rights are assigned are expected to be US$1-3. Experience from other countries indicates that assigning property rights yields a very high rate of return, based only on the resulting increase in net output. For example, in Thailand, it has been estimated that the assignment of property rights has yielded an economic IRR of about 70Z. In terms of international comparisons, the marginal costs for this component are low. 7.16 The Environmental Action Plan and Development. Implementation of the EAP provides the people of Madagascar -- especially those remote from the capital -- with a unique opportunity to achieve economic development which is consistent with, and indeed depends on, conserving the environment. These opportunities can be grouped as follows: (i) Increased Agricultural Output: This should result from three actions: providing security of tenure will encourage investment and increased output and investment in perennial crops; the mini-projects will first slow the rate of decline in output, and, if some of them prove to be successful, output will be diversified and will increase in value over time; the vetiver project, if successful, will have similar effects; the de7elopments in the peripheral zones will likewise result in diversification and increased output. It will be about 5 years before the benefits begin to be realized. It is important to bear in mind that production is only one link in the chain; transport, processing and marketing are at least as important in determining return to the farmer and to the community. (ii) Increased Tourism Expenditure: Special interest tourism is a growing proportion of the total tourism business, and, within that, "ecological" tourism is among the fastest growing sub- sectors. It is estimated that, in Madagascar, the number of visitors coming specifically to enjoy nature has increased from 4000 to 8000 in two years, with a minimum of promotion, and with very high access costs, poor infrastructure, etc. The total  - 55 - market for this type of tourist needs to be assessed, and then Madagascar in general, and the managers and communities in the vicinity of the most promising reserves in particular, need to pursue it actively. The key macro-constraints are access costs and marketing. On the supply side, the guiding principles should be maximization of local value added, and con3ervation of the integrity of the reserves and the communities. It will take 3-5 years to bring substantial benefits, and these are likely to be concentrated on a few reserves. (iii) Export Services from Centers of Excellence: As a result of the EAP, agencies in Madagascar are being given the opportunity to become leaders in Africa in specific fields. FTM will have outstanding equipment and staff, with the capability to offer cartographic and related services which are very competitive internationally. If the programs to manage reserves, to develop locally-based tourism, to stimulate conservationist-oriented economic activity, and to conserve soil in a cost-effective way succeed, this knowledge could be 'packaged" and exported via consulting services. The economic analysis is further detailed in Annex 9. C. Program Risks 7.17 This is a high risk rrogram. It is the first coherent effort in Madagascar to tackle environmental problems and inevitably starts with a number of unknowns - institutional, technical, sociological. There are several new institutions to be established, new legislation has to be passed, staff with rare skills have to be found, and - most importantly - the heat and minds of people have to be reached. The program has been conceived on positive assumptions, but with safeguards built in. The implementation strategy (para 3.02) provides for a flexible institutional framework, balancing responsible initiative with coordination; a progressive implementation rhythm punctuated by periodic reviews; good feedback from monitoring and evaluation; and a supportive policy environment. Not all questions can be answered in advance, some are not even formulated, but the implementation strategy should ensure that problems are rapidly identified and tackled as implementation proceeds. 7.18 Perhaps the greatest risk is that the range, complexity, and interdependence of the actions will make effective management difficult. In order to better manage that complexity: (i) the ONE, staffed with high level and motivated people, will be the coordinating body for all the the Program; (ii) the external donors will have a Donors' Secretariat to coordinate donors'plans and actions and to diffuse informations among them; and (iii) there will be one technical assistant, financed by UNDP, living in Antananarivo to follow Program progress (para 5.45). 7.19 Given the scale and nature of Madagascar's environmental and human problems, the logic of a comprehensive approach, along mutually  - 56 - reinforcing lines, is compelling. In conservation projects, "small is beautiful"; small-scale, locally-based initiatives which mature over a number of years appear to have the best track record. The two perspectives are reconciled in the Program by: (i) dividing it into discretely managed "packages," which are individually not too large; (ii) proceeding slowly, using pilot projects, in the early stages; (iii) analyzing each increment before proceeding, ensuring that there is unambiguous responsibility assigned for success and failure, and having intensive follow-up and evaluation. VIII. AGREEMENTS REACHED AT NEGOTIATIONS, CONDITIONS AND RECOMMENDATIONS 8.01 At negotiations, the Government of Madagascar presented: (a) a final draft of the National Charter on the Environment (para 2.11). (b) draft legislation on EA procedures (para 2.16); (c) a draft proposal for cadastral surveys and land titling in common property areas (para 3.25); (d) a draft decree for the creation of ONE (para 5.07); and (e) a draft statute for ANGAP (para 5.10); 8.02 Conditions of effectiveness will be: (a) recruitment of an audit firm for the whole Program and preparation of terms of reference acceptable to IDA (para 4.17); (b) an operational ONE (nomination of members of the Board and appointment of the Director General) (para 5.07); (c) an operational ANGAP (approval of legal statute, nomination of members of the Board and appointment of the Director General) (para 5.10); (d) an operational ANAE (appointment of the Director General) (para 5.19); and  - 57 _ (e) the signature of implementation agreements, satisfactory to the Association, between Government and respectively ANGAP (para 5.12), ANAE (para 5.22), and FTM (para 5.27). 8.03 Agreements reached at negotiations include: (a) publication of a decree by the end of 1990 specifying environmental assessment procedures (para 2.16); (b) a calendar for the legal establishment of all parks and reserves (para 3.08); (c) criteria for eligibility for financing mini-projects by ANAE (para 3.16); (d) an action plan for titling in priority areas where common property systems prevail. This plan will be reviewed annualiy with the Association, particularly the results of both the inventory of these areas and amendments to be made in the land legislation regarding them (para 3.25); (e) publication of a regulation, no later than -.ae 30, 1991, in order to transfer the execution of individual topographic surveys to private surveyors (para 3.27); (f) opening of a special account and six "caisses d'avance" (para 4.15); (g) establishment of "comptes locaux' for timely availability of funds for public agencies involved in Program implementation (para 4.16); (h) maintenance of accounts and annual audits (para 4.17); (i) determination of an annual date (December) for the meetings of the Steering Committee (para 5.05); (j) the legal statute of ANGAP (para 5.10); and (k) transition arrangements between MPAEF/DEF, ANGAP and operators cor the implementation of the biodiversity component (para 5.11). 8.04 Conditions for disbursement will be: (a) approval by the Association of the annual work plans for land titling for the cadastral component (para 3.25); (b) the mandatory registration of all land transfers for the cadastral component (para 3.26); and  - 58 - lc) the fee exemption for registration, topographic services and other charges for systematic cadastral surveys, for the cadastral component (para 3.27). 8.05 With the indicated agreements and conditions, the proposed Program will be suitable for a Credit on standard terms of SDR 19.8 million equivalent to the Government of Madagascar. I  - .59 - Annex 1 Page 1 MADAGASCAR ENVIRONMENT PROGRAM Biodiversity in Madagascar Introduction An Island scarcely bigger than France whose variety of climates, landscapes and organisms qualify it as a continent in its own right, Madagascar lies a short 350 km off the southeast African coast. Geologic forces separated Madagascar from the African continent some 165 million years ago and this isolation has resulted in the evolution of unique biotic forms there which occur in greater numbers than perhaps anywhere else on earth Unprecedented levels of endemism can be found in nearly all of Madagascar's faunal and floral groups; 982 of the palm species for instance (110 out of 112 species), are found nowhere else, as are 93% of Madagascar's primates, approximately 802 of all the flowering plants, 233 of 245 species of reptiles (952 endemism), all but two of the country's 144 species of frogs, 29 of the country's 30 species of tenrecs and eight of its nine species of carnivores. It is estimated overall that some 150,000 of Madagascar's 200,000 species of living things are found nowhere else and - this remarkable endemism is accompanied by very high diversity in most groups. The number of Malagasy plants alone accounts for one quarter of all the plant species for the entire African region and Madagascar's 13 primate genera nearly match the 14-15 genera found on the African continent. There are more species of chameleons in Madagascar than in all the other countries where they occur combined, and more orchid species than can be found on mainland Africa. The number of unique and endangered species in Madagascar increases with each new inventory, as well; a recent botanical expedition to the virtually unstudied Masoala Peninsula discovered two new genera and seven new species of palms alone, and three new taxa of lemurs have been documented in Madagascar during the last two years. Madagascar's high endemism and high number of species coupled with its small size make it an extremely important global reservoir for biological diversity and thus a high priority for conservation. Madagascar is one of the world's 13 megadiversity countries, which by themselves account for at least 70X of the world's biological diversity. Along with Australia, Madagascar is especially noteworthy because of high endemism at the higher taxonomic levels (e.g. genera, families). For instance, Madagascar has five endemic plant families and five endemic primate families, compared to no endemic families in Brazil, the world's largest tropical country.  - 60 - Annex 1 Page 2 Madagascar has also been identified as one of ten "threatened hotspots', a series of tropical areas identified by Dr. Norman Myers as being critical to the conservation of global plant diversity. These ten areas cover only 0.2% of the world's land area and 3.5% of the world's tropical forest, but have within their borders some 34,000 endemic plant species or 27% of all tropical plants. Because of its high levels of diversity and endemism, Madagascar has on many occasions been termed 'the single highest major conservation priority in the world." As ie the case throughout the world, biological diversity in Madagascar is highest in the tropical forests. There are three major forest ecosystems in Madagascar: the dry deciduous forests of the west, the wet forests of the eastern escarpment and the southern spiny desert which is characterized by its distinctive Euphorbiaceae and Didieraceae forest. All three of these formations and their indigenous wildlife face any of a wide variety of threats from slash and burn agriculture, clearing of forest for cultivation, uncontrolled ranging of livestock, timber exploitation, charcoal burning, hunting and ornamental plant collection. Deforestation has made erosion a sericus problem.... Estimates of forest destruction indicate that PR much as 80% of Madagascar's original forest cover has disappeared in the 1,500-2,000 years since the arrival of man and this continues at a vertiginous pace (possibly exceeding 25,000 acres of forest loss per year). The extinctions that have occurred during this period include at least two species of giant tortoises, an aardvark, a pygmy hippopotamus, the largest birds ever to walk the earth (genus Aepyornis), and an incredible six genera and fourteen species of lemurs. While the reasons for this continued loss of biological diversity are largely economic and may result from ill-conceived investment policies, external debt pressures or misguided agricultural policies, certainly at the roots of the destruction is the burgeoning population growth and the pressures of rural poor who depend upon natural resource extraction and small scale agriculture and livestock production for their survival. While the current human population is around 11 million, about half that of California in an area 40% larger, Madagascar is already over populated in some of its aras, particularly the central higlands, in respect to usable and arable land, and its growth rate of 3% is among Africa's highest. Thus, to be successful, conservation of biological diversity in Madagascar must integrate rural development goals by focusing on programs which enhance the ability of the Malagasy people to sustainably meet their development needs through rational use of available natural resources. Efforts to undertake ecological inventory, species level research, environmental education and training and to bolster the nation's protected area network must parallel work on agriculture, forestry, utilization of secondary forest products and useful plants, fisheries, health and hygiene and other rural development- oriented aspects of resource use and preservation.  Annex 2 61 A - page 1 MADAGASCAR ENVIRONMENT PROGRAM BIODIVERSITY COMPONENT A - List of Priority Protected Areas Acronyms for planned activities include: C (conservation/protection); RD (rural development in buffer zones; T (tourism); EE (environment education); S (studies and research). Level 1 (highest priority) (C - RD - T - EE - S) 1. Complex of Montagne d'Ambre (Ambre, Analamera, Ankarana) 2. Masoala/Nosy Mangabe 3. Mananara 4. Marojejy/Anjanaharibe Sud 5. Ranomafana 6. Andasibe/Mantadia 7. Andringitra/Pic d'Ivohibe 8. Andohahela 9. Ankarafantsika 10. Complex Manombolo/Bemaraha/Tsimembo/Nosy Barren 11. Morondava/Cate Ouest, Forets basse Tsiribihina 12. Beza-Mahafaly 13. Betampona 14. Zahamena Level 2 (C - (T) - EE - S) 1. Complex Lac Ihotry/Morombe 2. Midongy 3. Kalambatritra 4. Zombitsy/Vohibasia 5. Isalo 6. Complex Plateau Mahafaly 7. Complex Karimbola (Cap Sainte Marie) 8. Kassijy/Causse du Kelifely 9. Tsingy de Namoroka 10. Complexe Lac Kinkony/Tsiombikibo 11. Tsaratanana/Manongarivo 12. Lokobe/Nosy Tanikely/Nosy Mitsio 13. Anbohitantely 14. Bemar:Lvo/Manangoza 15. Bora 16. Manombo 17. Betampona/Marotandrano 18. Anbatovaky/Marotandrano 19. Ambohijanahary 20. Complexe Toliary (Recifs, Forets, Mangroves)  - 62 - Annex 2 A - page 2 Level 3 (S) 1. Tampoketsa d'Analamaitso 2. Itremo 3. Daraina/Lac Sahaka 4. Marais de Didy 5. Makay 6. Isalo Sud 7. Baie de Baly/Katsepy 8. Complexe de Belo-sur-Mer 9. Mangoky 10. Chakui Anosyenne 11. Mangroves Total Protected Areas Levels 1. 2 and 3: 45 (not all of them have proper legal status)  - 63 - Annex 2 -B- MADAGASCAR ENVIRONMENT PROGRAM BIODIVERSITY COMPONENT B - List of Financed Protected Areas of Level 1 Level of Financing Implementation biological richness A) Active implementation 1. Mananara B GPF, UNESCO GPF, UNESCO 2. Andasibe B GPF, UNESCO GPF, UNESCO 3. Andahohela A USAID MPAEF, SAFAFI, Yale/Washingt. Univ'y 4. Beza-Mahafaly B WWF, USAID WWF, Tana Univ'y Yale/Washingt. Univ'y 5. Morondava/Ouest A Swiss Cooper. Intercooperation 6. Ankarafantaika A GPF, UNESCO GPF, UNESCO 7. Betampona B MPAEF MPAEF B) Financing being negotiated 1. Complexe Ambre A USAID, WWF WWF 2. Marojejy/Anjana. A WWF, FED WWF 3. Cap Masoala A USAID, MBG SAFAFI, MPAEF Duke Univ'y 4. Andringitra B WWF WWF 6. Bemaraha A UNESCO UNESCO Biological richness is superior in A than in B. GPF (Forests Management and Protection Project); MBG (Missouri Botanical Garden), SAFAFI (local NGO); FED (European Development Fund)  - 64 - Annexe 2 c MADAGASCAR ENVIRONMENT PROGRAM C - Organization Chart of A.N.G.A.P. (Association Nationale pour la Gestion des Aires Protegees) (National Association for the Management of Protected Areas) Board of Directors ________________________ Conseil d'Administration Director General !------_-_________ Directeur General Coordina- Administration Training and Monitoring Data Bank nation & Finance Communication & Evaluat. in Biodiv. Formation et Suivi/Eval. Banque Communication donnees en biodivers.  - 65 - Annex 2 -D - MADAGASCAR ENVIRONMENT PROJECT D - Profile of the Director of A.N.G.A.P. (Association Nationale pour la Gestion des Aires Protegees) Training: at least a Master Degree in forestry and/or in ecology from a university or a "Grande Ecole" of international reputation in forestry management Experience: . at least ten years of experience as an executive in forest and/or park management, in the public and/or private sector . known qualities of dynamism in management innovativeness and as a leader of ideas and human resources . if possible, having done consultancy works in foreign countries in the area of protection management of forest areas, parks and reserves . good knowledge of the main regions of Madagascar, from an ecological and sociological viewpoint . positive experience of collaboration with government agencies . experience in dealing with donors, and good understanding of financial management Other: a good knowledge of Malagasy and French. A knowledge of English would be an asset.  - 66 - Annex 2 E - Page 1 MADAGASCAR ENVIRONMENT PROGRAM BIODIVERSITY COMPONENT Norms used for budget planning for the protection of Parcs and Reserves Niveau de Priorite Priorite 1 Priorite 2 Priorite 3 Niveau de richesse biologique A B A B C Nombre de PIR 8 6 7 8 4 12 Chef de Site (4x4) (Nb) 1 1 - - - Chef P/R (motocyclette) (Nb) 1 1 1 1 1 1 Gardes (bicyclette) (Nb) 20 10 10 5 2 2 Chef de gite (bicyclette) 2 1 - - - - Guides (Nb) 4 2 - - - Secretaire/comptable (Nb) 1 1 - - - - Ouvrier (h x Jr/an) 400 200 100 50 25 25 Batiments (m2) . Annie 1 100 70 25 10 10 10 . Annie 2 150 100 25 10 10 10 . Annee 3 150 100 25 10 10 10 . 9nnee 4 100 70 25 10 10 10 . Annee 5 - _ 25 10 10 10 Infrastructure . puits (Nb) 3 2 1 1 1 1 . creat. sentiers (km) Annee 1 10 10 10 5 5 5 Annie 2 10 10 10 5 5 5 Annee 3 10 - - _ _ . rehab. sentiers (km) Annie 1 20 10 10 5 5 5 Annee 2 20 10 10 5 5 5 . Bornage (nombre) Anne 1 20 10 10 10 10 10 Annie 2 20 10 10 10 10 10  - 67 - Annex 2 E - Page 2 Niveau de Priorite Priorite 1 Priorite 2 Priorite 3 Niveau de richesse biologique A B A B C . balisage (km) Annie 1 S0 25 - - - Annie 2 50 25 - - - Annae 3 50 25 - - - _ . panneaux (nombre) par an, 3 ans 10 5 5 5 5 5 Equipements . groupe/solaire (Nb) 1 1 - - - 000 FMGIan 3000 2000 2000 2000 2000 1000 .radio (Nb) 1 1 - - - - Transport avionlan (Nb) 2 1 - - - - Formation (h x Jr/an) . Annie 1 Chef Site, PIR 2xl5 2x15 15 15 15 15 Gardes, Guides 2xl5 2x15 15 15 15 15 . Annie 2 Chef Site, PIR 15 15 15 15 15 15 Gardes, Guides 15 15 15 15 15 15 . Annees 3 et 4 Chef Site, PIR 15 15 - - - - Gardes, Guides 15 15 - - - _ . Annie 5 Chef Site, PIR 15 15 15 15 15 15 Gardes, Guides tous les 2 ans  - 6.8- Annex 2 F - Page 1 MADAGASCAR ENVIRONMENT PROGRAM BIODIVERSITY COMPONENT Estimated means for development activities of an "averape" buffer zone Total Unit; 1 2 3 4 5 unit; Investissements A) Infrastructures 1) CAT 1/ Logements mZ 600 600 Entrepot m2 100 100 Salle formation m2 60 60 Bureaux m2 100 100 2) Village Ecole Salle formation m2 100 100 200 B) Travaux terrains *piste km 6 6 12 12 12 48 * irrigation ha 4 12 24 36 76 * agrof. tavy ha 8 16 32 48 104 * reboisement ha 4 16 32 48 100 * gestion massif ha 10 40 40 40 130 *verger ha 2 8 16 24 50 *alvinage Nb 1 4 8 12 25 *ruche (12) Nb 1 4 8 12 25 *pepinieres Nb 1 3 4 4 12 *appui levage Nb 1 3 4 4 4 16 C) Equipement 1) CAT Bureau Nb 4 1 1 6 Stereoscope Nb 1 1 Machine ecrire Nb 1 1 Video Nb 1 1 Ecran TV Nb 1 1 App. photo Nb 1 1 Projecteur Nb 1 1 3 Ecran photo Nb 1 1 1 3 Mat dessein Nb 1 1 Roneo Nb 1 1 Generateur Nb 1 Autres Nb 1 - 1 1/ Centre d'Appui Technique (Technical Support Center)  - 69 - Annex 2 F - Page 2 Total Unit; 1 2 3 4 5 unito Investissements 2) Production * pepiniere Nb 1 3 4 4 4 16 * gestion massif ff 1 4 4 4 13 * reboisement ff 1 4 8 12 25 * sociaux ff 1 3 4 4 12 D) Vehicules * bachee Nb 1 1 * mobylette Nht 3 3 6 E) Formation * cadres CAT h x Jr 120 120 120 120 120 600 * villageois h x Jr 300 900 1200 1200 1200 4800 F) Assistance technique * Expat. LT 1/ h x an 1 1 2 * Expat. CT 2/ h x m 2 1 0.5 1.5 * Local CT h x m 4 3 2 1 1 11 * voyages Europe Nb 3 2 1 6 locaux Nb 4 4 2 2 2 14 G) Couats recurrents 1) Salaireq *forestier h x an 1 1 1 1 1 5 *agronome h x an 1 1 1 1 1 5 * communications h x an 1 1 1 1 1 5 *secret./comp. h x an 1 1 1 1 1 5 2) Alloc. transp. h x Jr 600 600 600 600 600 3000 3) Entretien batiment m2 860 960 960 1060 3940 bachee Nb 1 1 1 1 1 5 mobylette Nb 3 3 3 3 3 15 aquipement ff 1 1 1 1 1 5 4) Autres publication ff 1 3 4 4 4 16 concours/prix ff 1 3 4 4 4 16 fournitures ff 1 3 4 4 4 16 1/ LT: Long Terme (Long Term) 2/ CT: Court Terme (Short Term)  - 70 - Annex 2 -0- MADAGASCAR ENVIRONMENT PROGRAM BIODIVERSITY COMPONENT G - Program and Annual Contracts between A.N.G.A.P. and Operators I - Program contracts (for the duration of the operator's intervention) . length of the program contract (about 3 to 5 years) . description of main caracteristica of operator's methods of assistance to help local communities to define their need, Identify and propose projects and implement them (in particular community financial and/or physical contribution in the implementation) * quantitative and qualitative objectives proposed to be reached during the period of the program . agreements (ii necessary) with Government agencies (HPAEF, MINAGRI...) to be reached before the program contract is signed with ANGAP o methods and timing of monitoring and evaluation done by ANGAP . type and amount of technical assistance expected from ANGAP . type and amount of technical assistance (local and foreign) to be provided to the local community during the contract . type of scientific data (on flora, fauna, climatic...) to be given to ANGAP for building up an information system . financing plan for the contract period o plan for phasing out foreign technical assistance . training program for local agents and communities in the buffer zones . auditing operator's accounts by an independant auditor and a copy to be sent to ANGAP not later than four month after closure of the accounts II - Annual Working Plans (AWP) . before the start of each year, the operator will present to ANGAP an AWP within the framework of the program contract (the program contract could be revised in the light of experience, but then, a new program contract would be signed) . presentation of activities (types and quantities) to be undertaken and detailed corresponding budgets, including contributions from the operator and from the community . specific training programs for local agents and communities . planning of procurement  - 71 - Annexe 3 -A- MADAGASCAR ENVIRONMENT PROJECT A - Organization Chart of A.N.A.E. (Association Nationale d'Actions Environnementales) (National Association for Environmental Actions) Board of Directors ________________________ Conseil d'Administration Director General Directeur General Mini-projects Training Monitor. & Eval. Formation Suivi & Evaluat. 5 Field Operators ________________________________ 5 Agences d'execution de terrain Field Agents Field Agents Agents de terrain Agents de terrain  _ 72 - Annex 3 B_ MADAGASCAR ENVIRONMENT PROJECT . - Profile of the Director of A.N.A.E. (Association Nationale d'Actions Environnementales) Training: a high level diploma (at least a Master Degree) as agro-economist from a university or a "Grande Ecole" of international reputation, with, if possible, a complementary training in management and planning in the area of environment protection. Experience: * at least ten years of experience in a bank or in a ministry where he/she was responsible for managing a portfolio of projects dealing with forestry and/or agricultural development andlor agroindustries . known qualities as an effective manager and leader of ideas and human resources * if possible, having an experience in international consulting in management and monitoring or agricultural development or agro- forestry projects . good economic and human knowledge of several regions of Madagascar . good experience in dealing with governmental agencies Other- good knowledge of Malagasy and French languages, the knowledge of English would be an asset  - 73 - Annexe 4 ^A- MADAGASCAR ENVIRONMENT PROJECT A - Organization Chart of O.N.E. (Office National pour l'Environnement (National Office for the Environment) Orientation Council ________________________ Conseil d'orientation Scientific Committee Steering Committee Comite Scientifique Comite de Gestion Director General Directeur General Deputy Director Directeur Adjoint environment policy/legislation environmental studies politique environ'tt/lgislation etudes environnementales environ't assessment data bank management etudes impact environnement gestion banques de donnees administrationrprocur't/finance coordination with FTAP administration/marches/finance coordination avec PAFT coordination of awareness training, education coordination de la sensibilisa'n, formation et education  - 74 - Annex 4 -B - MADAGASCAR ENVIRONMENT PROJECT B - Profile of the Director of the O.N.E. (National Office for the Environment) Training: Economist (at least a Master Degree) from a university or a "Grande Ecole" of international reputation, with, if possible, a complementary training in management, planning and legislation of environment protection. Experience: . at least ten years of high level experience in a ministry or an international organization in rural development (agriculture, livestock, forestry) in which he was involved in planning and could show his/her qualifications of dynamism and negociations with governmental agencies, private enterprises and financial international organizations. known qualities as a manager and a leader in ideas and human resources . good human and economic knowledge of several regions of Madagascar Others good knowledge of Malagasy and French languages. A good knowledge of English is also necessary.  Annex 5 O MfiADAGASCAR ENVIRONMENT PROGRAM PROPOSED FINANCING STRUCTURE Donors: international Govertment NOG and private (counterpart funds) Separate Component Management responsibilities account A -.-fiive~it1---------ANGAP coordination for conser- vation of parks and re- serves and development in buffer zones implemen- ted by executing agencies BdCartography FTM remote sensing, cartogra- phy, geographic informat. IC Land Titlin PRA surveys and land titling SoilDConservation financing development of actions in buffer zones and in soil conservation/ agroforestry in priority areas executed by executing agencies _ E Coordination and ONE direct management for Studies support activities and coordination for educa- tion, awareness and environmental research implemented by executing agencies p Forestry DEF assistance to protect Department gazetted forests, and TFAP Notes ONE will be responsible for the general coordination of accounting, disbursement, procurement and monitoring systems as well as for ensuring auditing for the whole Program.  -76- Annex 6 Page 1 of 5 4.C - I ~ (FM '000) (USO '000) 2 Totl Z Foreign um L, ld Fof# Totl Local Fomrig Total Exchane Costs A. BlODIUERSITY an SIEDE 2.4467 6.379."91 9.9.946 1361 3.544 490 72 7 3. BIODIWRSITT ASSItVAN DF 4m778ui 2MU.M 6,810.0D1 2,6SS 1,129 3,784 30 6 C. DIODIVM ChEMTIUN P/8R 7507U 25 2 10.061tO011 49171 1,419 5.59 25 0 B. BIODIVESITY IJEWLNEiT P nERI. z0 S39.1m 8 MOM. 13,09 2 3,000 49269 79266 59 11 it CARTD Y/TQW TI 7121,203 10,7,95 1h,25.79 423 5,910 10144 58 1i Fe CADASTUE 6234,675 6254.73 12. 457 3,464 3475 6.M 50 10 9. n n 2M940A014 46960 7661 1.33 2,69 4.242 61 6 N. CUNATION KS 905IWItOT 104.%122 6r337.116 16,927,m 5.829 34521 9,348 38 14 t. APUl NJ FEI 16.6 11,74AM 283323,213 9,195 6.42 15,736 42 23 To*Il BAllQIIECUOT 6397