Zambia - Environmental Support Program

Report No. PIC1089 IBRD/IDA Project Information Document (PID) Project Name Zambia-Environmental Support Program(@) Region Africa Sector Environment Project ID ZMPE3253 Implementing Agencies Ministry of Environment and Natural Resource (MENR) Environmental Council of Zambia ECZ) Date Initial PID Prepared December 1995 Date of this PID February 1997 Appraisal Date June 1996 Projected Board Date May 1997 Country and Sector Background 1. Zambia is a large country of about 750,000 sq. km, roughly the size of Spain and the United Kingdom combined. It is one of the least populated countries in Africa with approximately 9.4 million people, of which 43 percent live in cities and towns. At the time of independence in 1964, Zambia was one of the most affluent countries in Africa. The economy, however, was dangerously dependent on copper exports, and economic policies promoted central planning, inefficient parastatal enterprises and international borrowing. In the mid-1970s copper production and prices fell sharply, national debt increased and standards of living began to decline. It is estimated that by 1991 the proportion of the population living in poverty had risen to 69 percent. By 1995, per capital GNP was at US$370. Despite an ambitious reform program launched in 1991, growth has been elusive due to macro-economic instability, declining levels of investment and repeated droughts. Zambia's economy will continue to be driven by its wealth of natural resources, and copper and related industries will remain important, but diversification is needed. While the environment could provide the basis for accelerated and broad-based economic growth, any improper management would constrain growth and undermine efforts to alleviate poverty. 2. Zambia has abundant water, land and forest resources. However, through a combination of factors, there has been increasing pressure on these resources. The effects can be seen most directly in declining agricultural productivity, resulting from a lack of proper water and soil management; dwindling wildlife populations as a consequence of poaching or degradation of their natural habitat; and declining fisheries earnings as a result of overfishing and water pollution. Air and water pollution affect the health and productivity of the work force, particularly in the areas near mining operations.  3. Due to its high rate of urbanization, Zambia has also to deal with another set of very specific environmental problems. Many Zambians lack access to clean drinking water, and, sanitation and solid waste management facilities are inadequate or in some localities totally lacking. The adverse effects of these conditions on health and productivity tend to disproportionately impact the poor. 4. The underlying causes of environmental degradation are: poverty and the lack of alternatives in people's survival strategies, lack of understanding and awareness of environmental problems, weak administrative and legal support structures and a breakdown of traditional values and practices which previously helped to ensure sustainability of the natural habitat. 5. In recognition of the importance of the environment, the Government adopted a National Conservation Strategy in 1985. This became a central strategic document and served to underpin environmental policies and legislation, and laid the basis for the enactment of the Environmental Protection and Pollution Control Act in 1990 and the subsequent establishment of the Environment Council of Zambia (ECZ) as the statutory body charged with the Act's implementation under the Ministry of Environment and Natural Resources (MENR). The Ministry itself was established in 1991 to set environmental policies and coordinate across ministries involved in environmental and natural resource matters. 6. In December 1994, after a process of broad consultation, the Government finalized the National Environmental Action Plan (NEAP) which identified key environmental problems and related institutional and legislative constraints, and recommended actions for management and mitigation. The (NEAP) provides a strategy framework for environmental initiatives. It emphasizes the need for: (i) clear definition and understanding of institutional responsibilities between the two environmental apex units, between these units and the agencies responsible for implementing environmental initiatives, and between government services and the custodians of the environment, particularly local communities; (ii) expansion in the institutional capacity to manage the environment and a rationalization of the legal framework within which environmental initiatives are undertaken; (iii) promotion of traditional institutions and community participation to help create a demand-driven, initiative-based culture in support of an improved environment and more sustainable use of natural resources; (iv) obligatory environmental impact assessments of major development projects in all sectors; and (v) creation of financing mechanisms and an increased availability of resources to respond to environmental needs and opportunities. It also identified, through its consultative process, five major environmental issues which need addressing: soil degradation; water pollution and inadequate sanitation; deforestation; air pollution, especially in copper mining towns; and wildlife depletion. 7. Traditional institutions for allocating and protecting natural resources at the local level are no longer providing the mechanisms required to protect the environment and natural resource -2 -  base. Furthermore, the Government's capacity to meet the rising challenges of resource management and environmental protection is fragmented, lacking both the financial and human capacity to implement programs. While the direct responsibility for the environment lies with the MENR and ECZ, seven ministries have significant environmental responsibilities. Under the purview of the MENR, ECZ has the main responsibility for coordinating and managing environmental initiatives by these ministries and other agencies, and for technical management of the environmental mandate, while MENR is charged with high level coordination and policy direction. With the majority of staff involved in the forestry sector, and the new Planning and Information Department (PID) yet to be established, MENR currently has limited capacity to deal with environmental issues. These institutional concerns are further complicated by the state of the country's environmental legislation, which the NEAP found to be uncoordinated, outdated and sometimes inconsistent. At the district and community level, an absence of capacity to manage the environment and lack of adequate mechanisms to enable communities to address directly local environmental issues presents a clear challenge. Objectives 8. The program is the first step of a long-term effort to define the elements for and initiate the process of strengthening environmental capacities. The objectives of the program are to: (i) strengthen the institutional and regulatory framework for environmental protection and natural resource management, and (ii) initiate a process to enable communities to address natural resource degradation and capitalize on environmental sound investment opportunities. Description 9. The program consists of four main components: (a) Institutional Strengthening and Legal Framework which will comprise: Policy Dialogue and Institutional Assessment to develop a national environmental policy document and analyze the roles, responsibilities and linkages in the key environmental institutions; Institutional Capacity Building to improve management practices and staff skills of ECZ, MENR and other key agencies; Community Environmental Management Program to facilitate demand-driven development in support of an improved environment and better utilization of natural resources in rural and urban communities; and Legal Framework and Enforcement Capacity to help remove conflicts and gaps, and develop a consistent and enforceable body of environmental legislation; (b) Environment Education and Public Awareness which will assist in promoting the development of environmental education in the formal and informal education systems, provide media support, modify curricula and teacher training programs and increase community awareness of environmental issues; (c) Pilot Environmental Fund (PEF) which will comprise two financing mechanisms: PEF Community-Based Initiatives Fund to put in place an incentive framework to promote community involvement in environmental activities and provide matching grants to support - 3 -  community-based environmental projects identified through the Community Environmental Management Program and PEF Environmental Studies Fund to provide financing for studies to develop strategies, help prevent and/or respond to environmental emergencies and undertake Environmental Impact Assessments. PEF will be integrated with the Social Recovery Project (SRP) and will benefit from its implementation experience, take advantage of established procedures and reduce overhead costs; and (d) Environment Information Management which will establish a forum to facilitate the exchange of information between different agencies and will provide information to public and private sector decision-makers. It will also develop five district-level issues- oriented information systems focused on key environmental issues and include provision for the monitoring and evaluation of ESP. Implementation 10. MENR, through its PID, will be responsible for overall program implementation. However, responsibility for individual components will remain with the respective institutions involved: ECZ, the SRPof the Ministry of Finance and Economic Development, and the Ministries of Legal Affairs, Education, and Local Government and Housing. MENR, working with District Councils, will be responsible for implementation of the community environmental management program. The program will set up an independent National Environmental Steering Committee (NESC), for policy guidance, high level coordination and review and approval of consolidated annual work programs and budgets. The implementation structure will rely upon local expertise and on-going activities to the maximum extent and will be based on high levels of participation by all segments of Zambian society. Costs and Financing 11. The total program cost is still to be finalized, but it is estimated to be around US$20.0 million. It is proposed that the project be financed by all donors interested in providing support to the environmental development efforts of the Government with IDA financing any gaps in the program. Sustainability 12. Sustainability is embodied in the highly participatory nature of the NEAP and the ESP preparation process. This has broadened the understanding and scope of the environmental agenda and diversified ownership of the program. While the program will introduce and strengthen the legal and institutional base for dealing with environmental issues, ESP will operate through existing institutions. This will provide a direct linkage between the capacity building under the ESP and continuing its usage during future implementation. While some additional staff will need to be recruited, in most cases the staff already exists or positions have been established but not yet filled. The recurrent costs will be kept to a minimum and progressively taken over by the national budget. The pilot community projects will be on a grant matching - 4 -  basis with the communities assisted to take on their management and operation to help ensure their sustainability. Lessons Learned from Previous Operations 13. This is the first IDA support for an ESP in Zambia. The main lessons including the ones of similar ESPs implemented in the region are: (i) avoid overly ambitious goals and try to minimize the inevitable complexity of this kind of program; (ii) set clear priorities through a process of consensus building and active stakeholder involvement; (iii) promote community ownership through a highly participatory approach to program preparation and implementation; and (iv) start with a modest and flexible first step program to progressively define the elements and initiate the process of strengthening institutional capacity while clearly recognizing that NEAP implementation is a long-term effort. These lessons have been reflected in the proposed ESP. Poverty Category 14. While the program is not a targeted poverty reduction initiative, the positive implications for poverty reduction are substantial. Through its participatory community environmental management program and the PEF facility, the ESP would be able to target the more vulnerable community members of whom women and single parent households would represent a major proportion. The program would improve the situation of poorer families, who are particularly affected by environmental degradation, and both preserve and encourage better utilization of natural resources. This in turn would generate direct economic benefits. In addition, ESP would have a number of positive, indirect benefits such as improvements in health, nutritional status and quality of life. Environmental Aspects 15. The program has a clear environmental focus. It will help to create an enabling environment within which the most important environmental and natural resources issues in the country can be tackled. This will be facilitated through strengthening institutional, legislative and functional frameworks, establishing an environmental presence in the districts and introducing a participatory process in the communities to contribute to better environmental awareness and the necessity to preserve and manage the environment as the basis for sustainable development. All activities under the program are expected to have a positive environmental impact. The project is therefore Category C. Program Objective Categories 16. The primary objective categories are Institutional Strengthening, Environmentally Sustainable Development, Human Resources Development and Local Capacity Building. Secondary program objectives categories are Poverty Reduction and Private - 5 -  Sector Participation Program Benefits 17. The proposed program will help Zambia meet its environmental challenges through institutional and regulatory changes, increased public awareness and education, and by promoting pilot community- based investments in environmental protection and conservation. Both rural and urban communities would be assisted by the program and both "green" and "brown" issues would be addressed. The program would also lay the foundation for future sector and environmental lending operations which would benefit from the strengthened environmental institutions, improved legal framework, institutionalized EIA process and lessons learned from pilot community-based interventions. By acting as a broker, both for the communities and for bodies at the national level, the ESP would establish improved contact with other parties--local and international, governmental and private sector--which are interested in supporting environmental and natural resource initiatives. Program Risks 18. By their nature, environmental programs which cut across many sectors and institutional development which requires coordination, inter-agency linkages and capacity building are complex. The risk has been reduced by utilizing existing institutions and proven processes, emphasizing the participation of communities and districts rather than central staff in the planning and management of environmental initiatives, developing specific operating agreements that establish clear definitions of roles and responsibilities of institutions involved in the program, and preparing an implementation plan based on lessons from similar IDA/Bank financed programs. The importance placed on a participatory approach and incentive-driven environmental participation by the community, requires that the Government's commitment to strengthening the districts will be successful. The risk is mitigated through the adoption by the Government of the Public Sector Reform Program and the decentralization policy which forms part of it; by the current Local Government Support Program and similar initiatives which aim to restructure and strengthen the district administration; and by the increased emphasis by donors, with support from local and international NGOs, on participatory, demand-driven community development. The program has also reduced the risk of their not being adequate counterpart funding available by keeping incremental recurrent costs to a minimum and by ensuring that the Government is fully aware of the nature and implications of the expenditures which will occur. Contact Point: Public Information Center The World Bank 1818 H Street N.W. Washington, D.C. 20433 Telephone No.: (202) 458-5454 - 6 -  Fax No.: (202) 522-1500 Note: This is information on an evolving project. Certain components may not necessarily be included in the final project. Processed by the Public Information Center week ending April4,1997. - 7 -