Mozambique - Transfrontier Conservation Areas Pilot and Institutional Strengthening Project

GLOBAL ENVIRONMENT FACILITY /553 y Mozambique Transfrontier Conservation Areas Pilot and Institutional Strengthening Project Project Document December 1996 THE WORLD BANK  GEF Documentation - The Global Environment Facility (GEF) assists developing countries to protect the global environment in tour areas: global warming. pollution of international waters, destruction of biodiversity, and depletion of the.ozone layer. The GEF is jointly implemented bythe United Nations Development Programme. the United Nations Environment Programme, and the World Bank. GEF Project Documents - identified by a green band - provide extended project- specific information. The implementing agency responsible for each project is identified by its logo on the cover of the document. Global Environment Coordination Division Environment Department World Bank 1818 H Street. NW Washington. DC 20433 Telephone: (202) 473-1816 Fax: (202) 522-3256  Report No. 15534-MOZ Mozambique Transfrontier Conservation Areas Pilot and Institutional Strengthening Project Project Document December 1996 Agriculture and Environment Operations Africa Region   CURRENCY EQUIVALENTS (as of April 1996) MT 11,128 = US$1 WEIGHTS AND MEASURES The metric system is used throughout this report ABBREVIATIONS. ACRONYMS. AND DEFINITIONS AMRU Association of Rural Women ARPAC Cultural Patrimony Archive CAMPFIRE Communal Areas Management Programme for Indigenous Resources CBD Convention on Biological Diversity COUTADA Hunting Concession CPI Investment Promotion Center CSIR Council for Scientific and Industrial Research DDA District Agriculture Directorate DFB Department of Wildlife DINAGECA National Directorate of Geography and Cadatre DINATUR National Directorate of Tourism DINAP National Directorate of Livestock DPAP Provincial Directorates for Agriculture and Fisheries DNFFB The National Directorate for Forestry and Wildlife DPA Provincial Agriculture Directorate EDG Environment and Development Group EIA Environmental Impact Assessment ESP Environment Support Program EWT Endangered Wildlife Trust FAO Food and Agriculture Organization FEWS Famine Early Warning System FISCAL Public Sector Law Enforcement Officer GEF Global Environment Facility GIS/EIS Geographical/Environmental Information System GOM Government of Mozambique ICB International Competitive Bidding IDRC International Development Research Center INDER Institute for Rural Development IUCN International Union for Conservation of Nature JMC Joint Management Committee KNP Kruger National Park MAP Ministry of Agriculture and Fisheries M&E Monitoring and Evaluation MICOA Ministry for Coordination of Environmental Affairs  MICOA Ministry for Coordination of Environmental Affairs NCB National Competitive Bidding NEMP National Environmental Management Program NGO Non-Governmental Organization PIP Project Implementation Plan PM Project Manager PPF Project Preparation Facility RCC Regional Coordination Committee SA Special Account SADC Southern Africa Development Committee SDC Swiss Development Corporation SOE Statement of Expenditure SSA Sub-Saharan Africa SPFFB Provincial Forestry and Wildlife Services SC Steering Committee TC Technical Committee TFCA Transfrontier Conservation Areas WWF Worldwide Fund for Nature Vice President Mr. Callisto Madavo Country Director Ms. Phyllis Pomerantz Technical Manager Ms. Cynthia Cook Task Team Leader Mr. Robert Clement-Jones  PART I: Project Summary   MOZAMBIOUE TRANSFRONTIER CONSERVATION AREAS PILOT AND INSTITUTIONAL STRENGTHENING PROJECT Grant Summary Source of Grant: Global Environment Facility Trust Fund Grant Recipient: Republc of Mozambique Amount: SDR 3.5 million (US$5.0 million equivalent) Terms: Grant Ob-jectives: To assist the Government of Mozambique to create enabling policies, activities and institutional frameworks for rehabilitating, conserving and managing its unique biodiversity and natural resource endowments in three transfrontier conservation areas. The project will contribute to poverty reduction by assisting local communities inside and around the conservation areas, through capacity building, land and natural resource security measures and small-scale conservation and development activities. Financing Plan: (US$ million) Government of Mozambique: 0.5 GEF 5.0 Swiss Development Corporation 2.6 Local Communities in-kind Total 8.1 Economic Rate of Return: Not Applicable Environment Category "}"   MOZAMBIQUE TRANSFRONTIER CONSERVATION AREAS PILOT AND INSTITUTIONAL STRENGTHENING PROJECT Introduction 1. Mozambique is emerging from the devastating effects of two decades of war, during which, as the country was making a transition from colonial rule, economic progress was stifled. Massive military expenditures, centralized planning, sabotaged infrastructure, the exodus of skilled labor, and displacement of large segments of the population, exacerbated Mozambique's difficult economic and social problems. At US$80 in 1995, per capita income is the lowest in the world. A population of 17.5 million (of which 70 percent lives in the rural areas) is growing at 2.7 percent per year. The vast majority of Mozambicans live below the poverty line, and social indicators are among the lowest in Sub-Saharan Africa. Average daily caloric intakes are 77 percent of the daily estimated requirement, compared with an average of 93 percent for SSA. At least 40 percent of the children are chronically malnourished. Only one-quarter of the population has access to safe water. Literacy rates are estimated at 35 percent (20 percent female), and are likely to be much lower in rural areas. 2. With the transition to peace since 1992, over 1.7 million refugees from neighboring countries have returned, and over 3 million internally displaced persons relocated. In many regions refugees are still resettling to their former homes and do not yet have independent means to ensure their basic survival, especially in areas with low potential and high risks for agriculture and livestock rearing. Climatic variability has rendered these areas more marginal, and recurrent drought has made conditions extremely difficult for retuming refugees. 3. Poverty reduction is the Government's main developmental goal, and will have to be based on agriculture and rural development. Inevitably the country remains highly dependent on reconstruction and development assistance. Since 1992, economic growth, largely fueled by strong support by the intemational community, has averaged around 6.7 percent, and the Govemment has made much progress in implementing programs aimed at stimulating private sector investment and reducing the role of the state in the economy. Sector Background 4. Mozambique's 80 million hectares have rich land, marine, and mineral resources. The total estimated area suitable for agriculture is about 35 million hectares (45 percent of total land area). Forest cover is estimated at 60 million hectares, with deforestation estimated at 4.5 percent during 1970-90. With the return of people to rural areas, clearing for agriculture will accelerate this deforestation. About eleven percent of Mozambique's total land area has legal status for management and protection. Forest reserves make up 450,000 hectares, while conservation areas, consisting of four National Parks, five Game reserves, and 13 hunting concession areas  (coutadas) cover 6.7 million hectares. The coastline of 2700 km is the third longest in Africa, and the country has a number of wetlands along the coast and coral reefs offshore. Mozambique's rich natural resource base represents one of the country's most valuable assets, and an important source of livelihood for most Mozambicans. If sustainably managed, this asset base provides critical potential for economic growth, and an opportunity to combine conservation objectives with income generation. Realizing broad-based growth which contributes to widespread poverty reduction, will require sustained private sector investment and management, coupled with community management and benefit-sharing, and investments in community development, human capitaL and social infrastructure. Land Ownership and Access to Natural Resources 5. Much of Mozambique's natural resource base is defacto open access. Neither the State nor traditional institutions exercise effective control. Over recent years, private concessions have been sought for significant areas of the country (up to 15 million ha), with little or no consideration given for the rights of local communities and traditional users of land, forestry, water and wildlife resources. These rights risk being lost or significantly eroded unless the efforts to recognize customary ownership are solidified under effective policy and legislation. At present, ownership and control of natural resources are defined in the Municipalities Law (1994). A new Land Policy was approved in September 1995. It maintains the principle that land ownership is vested in the State, but recognizes the legitimacy of customary law and the rights attributed by such law, including traditional usage rights, and the role of local leaders in conflict management and resolution. The Land Policy is being concretized in the forthcoming Land Law, under which it is expected that the management and control of more extensive areas will be delegated to local communities, as has been piloted in Tete Province. Wildlife, forestry and other legislation are being revised in light of the new Land Policy. Local governments, being developed under the Municipalities Law, will be empowered to protect and manage natural resources, and facilitate community involvement in collaboration with traditional authorities. Biodiversity 6. Mozambique's biodiversity, particularly in terms of overall habitat quality, is recognized internationally to be of global significance and among the best preserved in Africa. This quality is due to a combination of factors, including the relatively low demographic density and the general depopulation of rural areas over 20 years of civil strife, together with the underdeveloped infrastructure base. The key exception to this is the severe reduction in numbers of megafauna (notably elephants) and other charismatic game species, which took place during the war for profit or food. Game fencing between South Africa and Mozambique has also eliminated some traditional migration routes and reduced access to traditional range for various species. 7. Certain areas with international linkages are particularly important: Southern Maputo province, a critical part of the IUCN-listed Maputaland Centre of Plant Diversity, ranks as a site of first order global botanical significance, with important coastal forests. This rich ecosystem straddles the political boundaries among Mozambique, Swaziland and South Africa, which maintains a system of protected areas along the border. The Chimanimani massif (Manica -2-  Province) which straddles the border with Cimanimani National Park in Zimbabwe, is among the best preserved Afro-montane ecosystems with high levels of species endemism. Other important, though little known highland areas include Mount Namuli, Mount Chiperone, the Njesi Plateau, and Gorongosa Mountain. The area in Gaza Province bordering South Africa's Kruger Park, including the hunting concession Coutada 16, is rich in species and in the quality of its relatively undisturbed habitat, and is part of the same ecosystem. These areas and others including the coastal zones (home to important marine biological resources), when coupled with the rapidly growing potential for tourism in the region, represent unique opportunities to combine biodiversity conservation and sustainable development. Institutional Context 8. The Government recognizes the importance of preserving and maintaining its natural assets, but has been hampered by years of war and its very limited capacity to tackle even the most pressing problems in the forestry and wildlife sectors. The end of hostilities and mine removal programs are now allowing virtually unlimited access to these natural resources, which are threatened with uncontrolled exploitation. In 1995, Mozambique adopted a National Environmental Management Program (NEMP) comprising a national environmental policy, an environmental framework law, and an environmental strategy. The recently created Ministry for Coordination of Environmental Affairs (MICOA) has the mandate to coordinate, supervise, and monitor environmental management in the country. The role and powers of MICOA will be specified in the forthcoming Environmental Law. Mozambique participated in the Earth Summit, and has ratified many international environmental conventions: Biological Diversity (August 1995), Climate Change, Desertification, CITES, and the Montreal Protocol. Adherence to the Agreement on Migratory Birds and the Ramsar Convention are also being considered. 9. Responsibility for managing the vast forestry and wildlife estate lies with the National Directorate for Forestry and Wildlife (DNFFB), one of seven directorates in the Ministry of Agriculture and Fisheries (MAP). DNFFB's human and financial resources are very limited. Between 1992 and 1994, the total public investment and recurrent resources available declined from MT3.5 billion to MT2. 1 billion (representing, in real terms, a dechne from US$1.4 million to US$0.35 million). DNFFB was allocated only two percent of the Ministry of Agriculture's 1995 Development Budget, which in turn received 10 percent of the national budget. Of the recurrent budget, over 95 percent is used for personnel costs, leaving virtually nothing for operational expenses. 10. Staff resources and capacity are extremely weak. In 1995, a total of 690 staff was listed at the central, provincial and local levels. This number included forestry and wildlife personnel in teaching and research institutions and the remaining state forest industries, as well as park staff. At the Provincial (SPFFB) and local levels, 475 staff cover 10 provinces. Given the number of districts and the distribution of forest reserves and protected areas, forestry and wildlife personnel are spread very thinly. Most staff have received no training since the 1970s due to the destruction of training facilities during the war. The numbers of trained technical and professional-level staff is extremely modest (100 and 70 respectively), and core headquarters staffing is limited to 39 technical employees. A lack of transport and other equipment (communications, field) also -3-  prevents the services having any field presence (e.g., for anti-poaching). These factors, when coupled with continued emphasis on the Government exercising "control" over natural resources, have inhibited collaboration with local communities. 11. In parallel to the weak public institutions, there is limited experience in Mozambique of NGO and community conservation activities. Most effective conservation operations have depended on outside support. For example, Bazaruto Marine National Park has been supported for a number of years by the Worldwide Fund for Nature (WWF) and the Endangered Wildlife Trust (EWT), and community-based wildlife programs are being supported in Tete Province by the Ford Foundation and the International Development Research Center. The EWT has also supported very modest conservation efforts in the Maputo Game Reserve. The role of the private sector is also relatively limited - mostly concentrated on the hunting and forest concessions and game farms - although much interest has been expressed in these sub-sectors and in the tourism industry during recent years by local and intemational investors. 12. The first major effort to strengthen conservation activities in Mozambique includes the AfDB financed project focused in the northem provinces (including Gorongosa National Park). To date the project has only just started and is not underpinned by a coherent policy and institutional framework. With the assistance of the IUCN, FAO and the World Bank, DNFFB has been developing a Five-Year Program. This program, of which the current project would form an integral part, sets out the legaL policy and institutional setting, and identifies a phased priority investment program. 13. Key elements of the program, which involves a shift in emphasis from command and control to an incentives-based system, include: * strengthening the DNFFB to fulfill its central functions of policy formulation, planning and technical guidance; * strengthening of the execution and implementation capabilities of the provincial and local services; * consolidation of human resources development and applie I research; * improvement of protection, management and utilization of core conservation areas; * participation of rural communities as direct agents and beneficiaries in management and conservation of forest and wildlife resources, through recognition of customary rights; and * promotion and appropriate regulation of the private sector in sustainable forestry and wildlife management. 14. Mozambique's limited capacity to manage its natural resources starkly contrasts the situation among her neighbors. In South Africa and Zimbabwe, national and provincial conservation authorities, linked with a dynamic private sector, an active NGO community, and well developed research and technical capacity are at the forefront of conservation management worldwide. In Zimbabwe, the potential for community empowerment in wildlife conservation has been crystallized in the CAMPFIRE programs, and these experiences are being tested in other countries in the region. -4 -  Project Background 15. The development of the Transfrontier Conservation Areas Project has evolved over several years. It was originally based on the concept of a 'transfrontier park" focusing on the Kruger Park and adjoining parts of Mozambique. This idea was officially raised during discussions between the President of Mozambique and the President of the Southern Africa Nature Foundation and was discussed by the Mozambique Council of Ministers in 1991; the latter recommended that further studies were required to fully assess the political, socioeconomic and ecological aspects. The Government of Mozambique requested the Global Environment Facility (GEF) through the World Bank to provide assistance for the preparation of a project. A project preparation facility was granted and a first mission fielded in 1991. 16. Preparatory work, in three phases, has been a lengthy process, but has evolved in the context of a gradually improving security situation in the areas being considered, which, until mid- 1993, were inaccessible. Phase I consisted of a preliminary study by an international consulting firm focusing on the conditions necessary for the establishment of conservation areas in frontier regions to complement activities in similar areas across the borders in Zimbabwe and South Africa. Phase II involved a follow-up study by the same firrn, which recommended the development of projects for two of the three areas originally identified (Maputo and Chimanimani), and outlined proposals for the strengthening of the DNFFB and for the policy and legislative framework. 17. Phase III: project preparation and consultation. From an essentially donor and consultant driven approach during the early stages, a locally-managed participatory process has emerged during the last 18 months, bringing in communities and NGOs, and initiating actions to implement the project. The process has helped shape new thinking on approaches and policies. This collaborative effort has consisted of a series of consultations and further studies, coordinated by DNFFB with assistance from IUCN. Consultative workshops have been held for Government, NGOs, local communities and the private sector for each area, and consultations have been held at the international level with neighboring countries (South Africa and Zimbabwe). Assessments of the socioeconomic and ecological conditions have been made in Maputo, Chimanimani, and Gaza, including consultations with local communities. Consultations have also been held with other stakeholders among NGOs, government agencies, district and provincial authorities, the private sector, and academia. Guidelines have been prepared for enhancing the role of the private sector and communities in natural resources management. The granting of commercial concessions in the Maputo and Chimanimani areas has been temporarily frozen to protect local communities' rights. Support has also been made available for preliminary operational programs for one national park, a game reserve, and surveys have been undertaken to determine the feasibility and limits for the creation of a new protected area adjacent to Kruger National Park. (see Appendix 2). 18. Transfrontier Conservation Area Concept. During the course of these preparatory activities the original idea of a transborder park has emerged into a broader multiple use "Transfrontier Conservation Area" (TFCA) concept. TFCAs are defined as relatively large areas, which straddle frontiers between two or more countries and cover large scale natural systems encompassing one or more protected areas. These are areas where human and animal populations -5-  have traditionally migrated across or straddled political boundaries. The proposed project is based on this principle but expanded to include integrated conservation and economic development in multiple-use areas. Consideration will have to be given to tradeoffs between different and possibly conflicting uses (e.g., agriculture, livestock, eco-tourism), while attempting to harmonize conservation of important ecosystems with the social and economic needs of local people. Three TFCAs (see Appendix 1) included in the project for funding in Mozambique are: (a) Maputo: this area lies in the south-eastern part of Maputo Province, in the extreme south east of Mozambique. It includes the Maputo Game Reserve (700 kni2) and the proposed Futi corridor (an area of undisturbed habitat and relatively low population density), which would link the Maputo Reserve with the Tembe Elephant Park and the Ndumo Game Reserve in Kwazulu, South Africa. Elephants and other wildlife traditionally migrated between these areas. Cultural and family links are also strong across the border. The project area forms part of the Maputaland Centre for Plant Diversity which ranks as a first order site of global botanical significance. Over 2,500 species of vascular plants are found there. For its relatively small size this Centre is one of the most remarkable areas of biodiversity in the world and the rate of endemism is high across all taxa. With the exception of large mammals, most plant and animal communities in the TFCA are relatively intact compared to the areas where degradation that has occurred through inappropriate land use and much higher population densities on the South Africa side of the border. Local populations are largely Ronga and Shangaan speakers. Not demographically dense, the area is, however, subject to considerable movement of populations, due to labor migration and returning refugees. The high potential conservation and ecotourism-based development in this area, including coastal tourism, will need to be balanced with other potential uses such as agriculture and livestock. Additional pressures are felt in this area as conflicting and competing private concessions are being sought for tourism and agriculture, with the risk of depriving the local communities of their rights and eliminating the conservation option. The Government has acted recently to prevent this from happening by freezing the area to new concessions and by careful environmental and social analysis of a proposed forest plantation project. (b) Gaza: this TFCA covers 20,700 km2 of protected areas in Gaza and Inhambane Provinces and the surrounding areas. Gaza Province borders on Zimbabwe in the north west and South Africa in the south west. This is a particularly important TFCA as it comprises in Mozambique: two gazetted national parks - Banhine National Park (7,000 km2) and Zinave National Park (3,700 km2); and a hunting concession area Coutada 16 (10,000 km2) contiguous with Kruger National Park (KNP). It also borders on Gonarezhou National Park in Zimbabwe, which itself is closely connected to community and private sector conservation areas. Although wildlife populations in the Gaza TFCA (outside Coutada 16) now appear low due to the effects of colonial tsetse eradication programs, the wholesale slaughter of animals during the independence and civil wars, and the recurrent droughts, the general state of the habitat is good. Traditionally, animals have migrated through this area to the Limpopo River. Due to its proximity to conservation areas in South Africa and Zimbabwe, the potential for natural and artificial restocking is high. Historically, family and cultural ties across the borders were very strong. While not as demographically dense as other areas, indigenous farmers and herders are beginning to -6 -  return to this zone. In terms of land use, conservation and wildlife management represents one of the highest potential values for this area, comparable to the private and communally owned wildlife management schemes in the Zimbabwean Lowveld. (c) Chimanimani: contiguous with the Chimanimani National Park in Zimbabwe, this TFCA in Manica Province is a relatively small area of 1,740 km2, and includes the eastern escarpment and foothills of the Chimanimani massif The area in Mozambique is better preserved, and represents a relatively intact Afro-montane ecosystem, with high species endemism (notably plants), and rich wildlife and bird populations. The area, on both sides of the frontier, is home to a highly traditional Shona-speaking indigenous population and contains sites of archaeological, historical, and cultural importance. Land use options in this area are likely to combine agriculture in the lower areas coupled with a managed conservation area at higher altitudes. Local communities are keen to see the area protected for cultural and environmental purposes against unsustainable logging and other concessions. 19. Social Challenges of the TFCA Concept. Reconciling community development and conservation in the areas identified presents a series of challenges for which there are no easy or immediate answers. The challenges include the dynamic demographic situations, breakdown of social and institutional structures, uncontrolled exploitation of natural resources, extreme poverty, and the granting of incompatible commercial concessions which may be in conflict with the objectives of both community development and biodiversity conservation. The high incidence of female-headed households and the domination of subsistence agriculture by women in Mozambique, means that particular efforts will need to be made to ensure that women participate in and benefit fully from conservation initiatives. The extent to which traditional, community- based structures are sufficiently intact to enable effective management varies from area to area, and ranges from the relatively strong structures in Chimanimani to highly fragmented ones in Gaza. Since Mozambique is unique in the Southern Africa Region with local communities living inside, as well as outside protected areas, the reconciliation of protected area management with the needs and the development of these communities will mean developing new approaches. The project will pilot participatory approaches and assist DNFFB to develop policies and strategies for communities living inside, as well as outside protected areas, which ensure conservation, but at the same time seek equitable solutions. Project Objectives 20. The proposed Project is the first phase of a long-term effort which is likely to span at least 10-15 years requiring continued support over this period. It will assist the Government of Mozambique to create an enabling policy and institutional environment for rehabilitating, conserving and managing its unique natural and biodiversity endowments, using the TFCA as the central organizing principle, and will help implement community-based natural resource management in three key areas described above. The Project has a broad set of related objectives in biodiversity conservation and economic development, through institutional and capacity strengthening, building on community-based pilot conservation projects and applying lessons learned from neighboring countries. The Project will provide a learning experience in partnership -7 -  among Government agencies, NGOs, rural communities and the private sector on both sides of the international boundaries, and set the stage for much more significant investments in the future. The Project will support field level conservation activities. By enabling local communities to continue to manage and benefit from their ecosystems, through land security measures and small- scale conservation and development activities, and providing the framework for private investment in eco-tourism, the Project is expected to contribute significantly to poverty reduction. 21. Recognizing that the development of conservation areas is a long term process and the limited capacity base from which Mozambique starts, the objective of enhanced transboundary cooperation is central to this project. In terms of both enlarged eco-system/wildlife management and community cooperation, cross-border interaction (including exchange of expertise and conservation technologies) at all levels (community, local, provincial, and national) is an essential complement to Mozambique's internal efforts in conservation and institutional development. Project Description 22. The proposed Project, to be implemented over a five year period, has four components: (i) institutional and policy development, with specific emphasis on training and capacity building; (ii) habitat and wildlife management (conservation activities); (iii) community mobilization and development activities, and; (iv) monitoring and evaluation. These are outlined below: (a) Institutional and policy development wiRl include capacity building for staff of DNFFB, its provincial services (SPFFB), and District Agricultural Services (DDA), and for local communities in Maputo, Gaza, and Manica provinces. The base cost of this component is US$3.4 million.