Uganda - Institutional Capacity Building for Protected Areas Management and Sustainable Use Project (ICB-PAMSU)

Report No. PID5793 Project Name Uganda-Institutional Capacity Building for Protected Areas Management and Sustainable Use (ICB-PAMSU) Region Africa Sector Environment Project ID UGPA2941 Borrower Government of Uganda Implementing Agency Ministry of Tourism, Wildlife and Antiquities Contact: David Abura-Ogwang, Project Coordinator Ministry of Tourism, Wildlife and Antiquities P.O. Box 4241 Kampala, Uganda FAX: 256-41-241247 Phone: 256-41-254827 Date of initial PID April 15, 1996 (PID for the PAMSU Investment Project)(See 1/) Date of this PID November 19, 1997 Project Appraisal Date May 12, 1997 Project Board Date February 12, 1998 1. Country and Sector Background: Uganda has a rich natural endowment of natural habitats and some of the richest assemblages of biological diversity in Africa. The protected areas (PAs) consist of ten national parks and twenty nine game reserves, sanctuaries and controlled hunting areas, totaling about 56,000 km2, in addition to 14,900 km2 of gazetted forests. Because of the breakdown of law and order over the past two decades, a significant portion of Uganda's protected area system has deteriorated and severe encroachment has occurred. Until the early 1970s, these protected areas served as the basis for a well-established tourism industry that was the country's third largest foreign exchange earner. Fifteen years of political instability subsequently took a heavy toll on the country's economy and resources, including its wildlife, protected areas and tourism infrastructure. A national Integrated Tourism Master Plan (ITMP), completed with assistance from UNDP and the World Tourism Organization (WTO), identifies priority needs and areas for rehabilitation and development. The plan is based on PAs as the primary attraction, with a secondary emphasis on cultural assets. It emphasizes that growth in the sector must follow a modest pace corresponding to the rate of recovery of the underlying natural assets and the rehabilitation and expansion of the supporting infrastructure. 2. Rehabilitation and management of conservation areas, revitalization of the tourism industry, and empowerment of local  governments and communities to manage and benefit from sustainable use of natural resources, are now high priorities for the Government of Uganda (GOU), as demonstrated by the important policy and institutional reforms already completed or underway. One significant reform was the merging of the functions of the former Game Department and the parastatal Uganda National Parks under a new parastatal organization, the Uganda Wildlife Authority (UWA). The UWA has overall responsibility for all parks and game reserves and also for all wildlife in the country. In keeping with the new Wildlife Act, the UWA has an explicit policy of promoting community participation in wildlife management and benefits. 3. The UWA is empowered to retain all revenues it earns (from park entrance fees, Gorilla trekking fees, concession leases, etc.) and is intended to become increasingly self-sustaining. However, the revenue from these sources is low at present, due to the small scale of the tourism industry and to ongoing problems of access and security in key wildlife areas. In recognition of the essential service the UWA provides to the nation, the GOU is commited to continuing to provide a substantial annual subvention until the organization can become financially self-sufficient. Multilateral, bilateral and NGO sources have also contributed significantly, particularly for the rehabilitation and improved management of several individual parks (including a grant from the Global Environment Facility for conservation of the Mgahinga Gorilla NP and the Bwindi Impenetrable Forest NP). However, the long-term sustainability of will depend upon its functioning effectively and efficiently, with a business-like management approach. This will require building greater institutional capacity and improving staff skills throughout the organization, particularly in relation to planning and to financial and human resources management. Improvement of managerial and implementation capacity within UWA is also recognized as a necessary precursor to initiation of a proposed multi-donor investment project for UWA (PAMSU). 4. The long-term sustainability of UWA and its conservation activities will depend on the restoration and growth of a successful nature-based tourism sector. The GOU has taken a number of important steps to facilitate and promote tourism, including upgrading of the Entebbe international airport and waiving visa requirements for 33 countries. GOU has also established a number of parastatal institutions, such as the Uganda Tourism Board (UTB), the Hotel and Tourism Training Institute (HTTI) and the Uganda Wildlife Education Center (UWEC). These are autonomous bodies intended to link and support public and private sector interests to help develop, promote and market Uganda as a tourist destination and to encourage local and international investment. Like the UWA, however, these institutions are new and need assistance to to define their complementary roles within the sector and to develop the capacity to carry them out. 5. The recently adopted National Environmental Action Plan (NEAP) serves as the framework for improving environmental protection, including conservation of biodiversity and other natural resources, through sustainable use including tourism. Empowerment of -2 -  communities for natural resource management, as called for in the NEAP, is being promoted through a decentralization policy, supported by a recently enacted Decentralization Act. 6. Project Objectives: The main objective of the ICB-PAMSU project is to establish effective institutional capacity within the wildlife and tourism sectors for strategic planning, program development and implementation, laying the groundwork for a proposed follow-up investment program (PAMSU). The project aims to strengthen the capacity of the Uganda Wildlife Authority to protect, manage and develop Uganda's protected areas (PA) system, wildlife resources and associated assets, and to establish the basis for sustainability through revenue generation and effective management. It also aims to promote the development of sustainable tourism, based primarily on nature and wildlife and complemented by cultural and historical aspects, as an important economic sector at national and local levels, and as a means to ensure sustainable conservation of biodiversity and the national cultural heritage. Capacity building activities will include: development of an effective and efficient overall institutional framework for the sector, strengthening the planning, management and implementation capacity of key sectoral institutions and ensuring their sustainability, and strengthening human resources capacity and promoting professionalism. The project will also help to secure the PAs and wildlife resources, as well as important cultural and historical artifacts, while this institutional capacity is being developed. 7. Project Description: The project will provide technical assistance, training, essential equipment and supplies, modest rehabilitation of essential facilities, and incremental operating costs to support the following components: (1) Strengthening the organizational structure and management systems of UWA, and the managerial and technical capacity of staff at Headquarters and Field levels. This will include support for developing a "planning culture" within the organization, and for carrying out strategic, business and management planning at all levels, and for development and implementation of financial, human resources and other management systems. It will also support the completion of a "Protected Areas System Assessment and Rationalization" process aimed at reviewing the existing PA estate and developing a representative and sustainable PA system; (2) Ensuring the continuation of essential UWA field operations, and related Headquarters support services, for conservation and management of the Pas and wildlife. The project would contribute to non-salary operational expenditures, supplementing the limited funds available from UWA's current revenues and GOU subvention; (3) Strengthening institutional capacity of other selected conservation-related institutions, complementing the role of UWA, including: (i) the Wildlife Department; (ii) the Uganda Wildlife Education Centre (UWEC); and (iii) the Forestry Department (for development of forest ecotourism). Support to UWEC will include limited civil works and equipment to facilitate ongoing upgrading of -3 -  animal holding facilities (See 2/) and educational exhibits. The Uganda Wildlife Training Institute will receive technical assistance for strategic planning and analysis to assist it to identify a market niche and develop an operational strategy and business plan. In addition, UWA may decide to use UWTI as a service provider for some aspects of its staff training program, to be supported under the project; (4) Development of the National Commission for Antiquities and Museums (being established through the conversion of the existing Government Department of Museums and Antiquities into an autonomous, revenue-earning parastatal, with the support of a grant from the Institutional Development Fund), including maintenance and modest rehabilitation of physical facilities and upgrading of staff skills; (5) Strengthening the Ministry of Tourism, Wildlife and Antiquities and the Uganda Tourism Board, to promote the development of a broad- based, competitive, well-regulated and sustainable tourism industry; (6) Strengthening capacity for Human resources development within the tourism sector, through a "Train-the-Trainer" program benefiting both public (Hotel Tourism and Training Institute) and private sector training institutions; and (7) Coordination and implementation support for all project activities, through operational support for the Project Coordination Unit responsible for coordination of the CAST program 8. In view of the fact that tourism levels are currently extremely low and are initially expected to grow slowly, an associated Global Environment Facility (GEF) project is being prepared in parallel with the IDA-financed project, to help Uganda meet the immediate costs of protecting its biodiversity resources, as well as to help lay the foundation for conservation in the long-term. GEF grant support will thus enable the GOU to extend protection to areas which are of high biodiversity significance, but have limited immediate prospects for revenue-earning through tourism or other sustainable uses. 9. Project Financing: The project will be financed with an IDA Credit of $7.1 million, with co-financing from the GEF of US$ 2.0 million.. The GOU contribution is estimated at US$ 4.8 million, in the form of counterpart funds, taxes and in-kind contribution of salary support and operating costs. It is anticipated that other donors currently active in the sector (USAID, European Union, and GTZ in particular) will continue to support complementary activities, including rehabilitation of park access roads and promotion of community-based sustainable wildlife enterprises. The private sector will contribute to project objectives through investment in tourism facilities and marketing, and their support for activities of the Uganda Tourism Board and private sector tourism associations. The level of private sector and other donors' participation will be determined during project preparation. 10. Project Implementation: Project implementation will be - 4 -  coordinated by the Planning Section, Ministry of Tourism, Wildlife and Antiquities, with the assistance of a Project Coordination Unit. The main implementing agencies will be relevant departments and parastatals of the MTWA and associated bodies (e.g. MTWA Planning Section, Tourism Commission, Uganda Wildlife Authority, Uganda Tourism Board, Uganda Tourist Association , National Commission for Antiquities and Museums, Uganda Hotel and Catering Training Institute). Community-related wildlife activities will be implemented by UWA in coordination with District and local level planning bodies 11. Project Sustainability: The project aims to establish the UWA as an effective organization with the financial and technical capacity to maintain Uganda's protected areas system and its biodiversity resources. While it is not expected that the UWA can become fully self-sustaining financially in the near or medium term, it is anticipated that it will be able to cover a significant proportion of its recurrent costs through revenue generation (park entrance fees, concession fees, etc.) after a few years. The same is true for some of the other institutions that will receive support under the project, including the Uganda Wildlife Education Center and the National Commission for Antiquities and Museums, which are intended to become increasingly self-sufficient. The project also aims to promote professionalism and cohesion in the private sector tourism industry, and to support the development of appropriate regulatory capacity within the Ministry, to support the principles of the Integrated Tourism Master Plan, which emphasizes environmentally sustainable tourism development. The Ministry will be encouraged to identify and focus on key responsibilities and activities such as licensing and statistical services, which can become largely self-sustaining through fees, and to collaborate with the private sector on marketing and promotion aspects. 12. Project benefits: The project will signficantly benefit Uganda by restoring its capacity to protect, manage and derive economic benefit from one of its major natural resources: the PAs and wildlife which in the past served as the basis for a highly successful tourism industry. It also represents a potential alternative source of income and economic development for communities in wildlife areas, many of which are unsuitable for other forms of development due to soil or other conditions or to their relative inaccessibility. The ICB-PAMSU project represents the first and necessary step in the process of rehabilitation and development of the sector, by establishing an effective institutional and human resource capacity to ensure that future investment is well planned and carried out, and provides sustainable benefits for the country. The project will also assist the nascent private industry in this sector to develop the professionalism and human capacity to compete effectively in an increasingly competitive market. 13. Project risks: The project aims to help Uganda develop the institutional and human resources capacity needed to restore effective management of its PA system and wildlife resources, and to foster the development of a productive and sustainable nature-based - 5 -  tourism industry. There is a risk that, by focusing on institutional capacity building at this time and delaying capital investment in the sector, there may be further deterioration of the resources and facilities, making it even more difficult to turn the situation around later. This issue is addressed by the understanding that the major investment program (PAMSU) could be launched as soon as the necessary institutional capacity has been developed and demonstrated, without necessarily awaiting the completion of ICB-PAMSU. In addition, the project would provide support for basic operations, particularly at the field level, to enable UWA to function at a maintenance level. Even the relatively modest resources to be provided, because they will be reliable, will represent a significant improvement over the current situation and lead to improved morale and effectiveness of field staff. The project will also provide support for strategic planning and development of a "planning culture" within UWA, which will ensure that future investment is mobilized and used more efficiently and cost-effectively, and that future development is better conceived and more sustainable, than could be expected in the absence of the project. The same considerations apply for the other sectoral institutions which will benefit from the project. This will help to ensure that Uganda's efforts to rebuild a positive image as a tourism destination and to become competitive in the regional and international markets, are not undermined by hasty and perhaps ill- conceived expansion of tourism facilities and a premature emphasis on marketing and promotion, in the absence of an effective planning and regulatory capacity. 14. The main risks to successful project implementation relate to: (i) the current limited capacity of the implementing agencies, and (ii) the relatively large number of implementing agencies and components. The latter is a result of the GOU's commendable policy to devolve many functions to private and parastatal bodies, with the aim of making them less subject to bureaucratic limitations and less dependent on Government budgetary subventions, and consequently more effective and sustainable. During the project preparation period, the Project Coordination Unit established under the MTWA has proven very effective at coordinating the diverse actors and elements of the program and at facilitating smooth functioning of aspects such as disbursement, accounting and reporting, procurement and timely release of GOU counterpart funds. To avoid overburdening the implementing agencies during this capacity building phase, and to ensure continued effective coordination among the GOU, the implementing agencies and the World Bank and other donors, it is proposed that the PCU be retained and strengthened to be able to manage the greater scope of work under project implementation. 15. Lessons from Previous Bank/IDA Involvement: The Bank-assisted Kenya "Protected Areas and Wildlife Service" (PAWS) project provides valuable lessons regarding policy and legislative environment, institutional framework, nature and scale of investment, donor integration, the need for prioritization of conservation efforts, etc., which are highly relevant to the proposed project. These lessons have been applied, for example in that a new and forward- looking Wildlife Policy and enabling legislation have been put in - 6 -  place prior to preparation of the project. The Implementation Completion Report and the Project Audit for the 1976 Kenya Wildlife and Tourism project also provided cautionary lessons concerning pitfalls to be avoided, particularly the importance of ensuring that the implementing agency has credibility and capacity prior to initiating a major investment project, and the need to ensure that the necessary political will exists to support institutional reform in the sector. 16. The Bank is also assisting many other projects in Africa and elsewhere in support of community-based conservation and sustainable use and management of natural resources. Experience from these projects underlines the importance of ensuring that an "enabling environment" exists for effective local participation in conservation of biodiversity and protected areas, including the empowerment and involvement of district and local authorities. Uganda's forward-looking policies on decentralization create a positive environment 17.. Poverty Category: The project objectives include a poverty orientation (20%), in view of the fact that the project aims to promote wildlife and nature-based tourism, which represents an economic opportunity for rural communities living in remote areas. 18. Environmental Aspects: The project falls into Environmental Impact Assessment category C, as it involves primarily Technical Assistance and operational support for improved management of PAs and protection of biodiversity. There will be no significant infrastructure development or other activities with potential for negative environmental impacts. (Note: the PAMSU investment project, which has now been replaced in the lending pipeline by the present ICB-PAMSU project, was designated EIA category B as it was expected to involve significant infrastructure development inside PAs and possibly resettlement as a result of the PA system rationalization.) 19. Program Objective Categories: The project will support the objectives of sustainable natural resource management and environmental protection, community consultation and participation, and promotion of the indigenous private sector. The project will contribute to poverty alleviation by promoting the development of tourism as a source of sustainable economic benefit to rural communities in the areas around parks and reserves (including Forest Reserves on a pilot basis), which include some of the least developed and most marginalized in the country. 1/ The ICB-PAMSU project replaced the PAMSU project in the lending pipeline in May, 1997, following the Appraisal mission's assessment that the Uganda Wildlife Authority was not yet prepared to implement the proposed large investment project. It was agreed with GOU that an institutional capacity building project should be carried out first, after which the proposed investment project would be reconsidered. -7-  2/ Including facilities required for Uganda to meet its obligations under CITES and other international conventions, i.e. to handle animals confiscated in illegal trade Contact Point: The World Bank InfoShop 1818 H Street, N.W. Washington, D.C 20433 Telephone: (202) 458 5454 Fax: (202) 522 1500 Note: This is information on an evolving project. Certain activities and/or components may not necessarily be included in the final project. Processed by the World Bank InfoShop week ending November 28, 1997. - 8 -