Cambodia - Biodiversity and Protected Areas Project

Report No. PID8292 Project Name Cambodia-Biodiversity and (*) Protected Areas Region East Asia and Pacific Region Sector Environment Adjustment Project ID KHPE65798 Borrower(s) Kingdom Of Cambodia Implementing Agency Ministry Of Environment Environment Category C Date PID Prepared October 22, 1999 Projected Appraisal Date October 22, 1999 Projected Board Date December 31, 1999 1. Country and Sector Background At present, the protected areas of Cambodia are not being effectively managed. This situation results from weak institutional capacity of the MoE to plan and carry out protected areas programs, lack of sustained financial resources, outdated information base, security concerns, overlaps with forest sector issues (especially illegal logging), large scale land allocations for commercial agriculture, and uncontrolled wildlife trade. The Government's strategy to improve biodiversity conservation in Virachey and other protected areas is described in the NEAP. The strategy focuses on the following four key areas: (a) implementation of effective organizational and management system for protected areas; (b) development of operational guidelines for management planning and implementation; (c) human resources development, with primary focus on training for conservation planners, administrators, rangers, field staff and local communities; and (d) preparation and implementation of management plans for seven priority protected areas and three proposed RAMSAR sites. (a) Weak Institutional Capacity. The MoE lacks the capacity to effectively manage the protected areas because very few of its staff have training or experience in protected areas management. Even by Cambodian standards, the MOE is a weak agency with a very extensive mandate. As a result, in situ conservation of biodiversity has been neglected and Cambodia still lacks a well articulated long-term vision for its protected areas system. The declared protected areas system is very ambitious and may be unrealistic given the human and financial constraints Cambodia faces. In addition, there is much work required to clarify the operating rules and regulations of the national protected areas system. The ability to manage the technical and administrative aspects of conservation initiatives at the provincial level is likewise constrained by poorly trained staff and lack of budgetary resources. (b) Lack of Sustained Financing. To date Cambodia has been unable to provide adequate financial resources to manage its national protected areas system. The country's continued economic difficulties have had adverse impacts on conservation budgets. The budgetary allocation for the MoE, about US $450,000 per annum, mostly covers staff salaries, leaving very little for  needed equipment and day-to-day operating expenses. Some financial support has been provided to the MOE by international donors but most of these programs have recently ended. At present there is little donor support for protected areas management. In addition, there are no reliable estimates of funding levels required to finance the national protected area system on a sustainable level. (c) Outdated Information on Biodiversity. Cambodia lacks up-to-date information on the status of its biological heritage. Civil strife and political instability have disrupted resource assessments and monitoring activities that were on-going during the 1960s. Thus, most of the information on biodiversity dates back to the 1960s. With assistance from international organizations such as the International Union for the Conservation of Nature and Natural Resources (IUCN), International Crane Foundation (ICF), Wetlands International (WI), and the World Wildlife Fund (WWF), the MoE has undertaken some limited and preliminary habitat surveys in the Virachey National Park and some of the other protected areas. However, more systematic data collection is needed to guide the management of the protected areas. (d) Security Issues. Security problems arising from the civil war and the continued insurgency of the Khmer Rouge have had a dual impact on Cambodia's biodiversity. On one hand, they have helped to keep most of the country's biodiversity relatively intact because the fighting and planting of 6-9 million land-mines throughout the country precluded large-scale habitat conversion for industrial or agricultural development. On the other hand, these security problems limit access for persons involved in conservation to prevent illegal logging and wildlife hunting or other destructive exploitation of biodiversity. The security situation in most of the protected areas has significantly improved following the end of the civil war and recent major defection of Khmer Rouge guerrillas. (e) Forest Sector Issues. The sustainable use of forest resources plays an important role in Cambodia's overall economic development prospects and Government forest policy has important implications for biodiversity conservation. Development of the forest sector affects bio-diversity through the pace and scale of logging (legal and illegal) and through the allocation and management of forest concessions. At present, Government has allocated more than 6 million ha of forest land to 20 international logging firms with very little environmental safeguards or an assessment of whether the areas were habitats for biodiversity of global or national significance. The World Bank, United Nations Food and Agriculture Organization (FAO), and the United Nations Development Program (UNDP) have jointly been providing technical assistance to the Government to: (i) develop regulatory reforms to ensure sustainable yields; (ii) establish a framework to allocate land for specific uses that ensures environmental protection and minimizes illegal rent seeking opportunities; (iii) ensure budget support for forest management that reflects the potential economic returns of concessions; (iv) develop guidelines and procedures for sustained forest management; (v) promote effective community involvement in forestry; and (vi) promote a log market to supply efficient domestic processors and export market. (f) Large scale land concessions. There is growing interest by foreign investors to develop commercial crop plantations in Cambodia, particularly in the northeast because of its fertile soils and low population densities. A - 2-  number of permits have already been granted for the development of rubber plantations. The extent of actual areas proposed for future plantation development has not been clearly established. While none of the current concessions are expected to be within the boundaries of the Virachey National Park it is reported that one or more concessions cover the lands in the proximity of the National Park. It is important that areas outside the boundaries of the park are also managed sustainably, and not converted to plantations, because they serve as a buffer to protect biodiversity within the park. (g) Illegal Wildlife Trade. Illegal wildlife trade is already a direct threat to biodiversity in Cambodia, particularly to some species of global conservation significance that attract high prices in the illegal trade in wildlife. Despite a government ban on illegal trade in wildlife, poaching of globally endangered species such as black bear, elephant, leopard, and tiger, appears to continue un-abated. A live tiger, for example, could be sold for US$500 - $2,500 which is more than a year's income for the average person. Much of the illegal wildlife is reportedly exported to China and Thailand where they are used for food preparation and traditional medicines. The extent to which the Virachey National Park is affected by poaching is unknown but is thought to be growing rapidly. Despite a government ban on hunting of wildlife for commercial purposes, it has not been able to enforce this ban because of the weak institutional capacity of the MoE and other government agencies involved in wildlife protection and in the control of illegal trade. 2. Objectives The overall development objective of this project is to improve the capacity of the Ministry of Environment to plan, implement and monitor an effective system of National Protected Areas. Toward that end, this project has two related immediate objectives. First, to develop and test proactive measures to minimize un-sustainable exploitation and degradation of the bio-diversity of national and global significance in the Virachey National Park (VNP). Second, to use the experiences gained from VNP to formulate institutional models for the development of the National Protected Areas system of Cambodia. The project has three closely integrated components: a National Policy and Capacity Development Component; a Park Protection and Management Component; and a Community Development Component. The project also includes overall project management activities including annual budgeting, financial management, work program planning, performance monitoring, and procurement. At the present time, the Ministry of Environment has little experience with establishment and management of protected areas on the ground. The experiences gained from this project would help the government to formulate a long term strategic vision for the national protected areas system and would help determine which approaches are most effective under the field conditions in Cambodia. The project will be implemented over a four year period by the Ministry of Environment (MOE) in collaboration with the provincial governments of Stung Treng and Ratanakiri Provinces. The project will be financed by a GEF Grant (U.S. $2.75 million); an IDA Learning and Innovation Loan (U.S. $ 1.93 million); and GOC counterpart financing of (U.S. $.25 million). 3. Rationale for Bank's Involvement -3-  GEF and IDA support for the project would enable Cambodia to begin to effectively reduce the degradation of the relatively intact biodiversity of national and global importance in the Virachey National Park. GEF/IDA support would enable the MoE to mobilize international expertise and experience to develop a strong organizational system and human resource capacity, thereby building a firm foundation for long-term efforts to conserve biodiversity. It would also allow the MoE to benefit from experience the Bank has gained in protected areas management, particularly in East Asia and to use the Bank's links with Laos and Vietnam to facilitate the future formation of a trans-boundary park with the adjoining Doug Amphan National Biodiversity Conservation Area in Laos and Chu Mom Ray National Park in Vietnam. Such a park could cover over half a million hectares of some of the most important montane, sub-montane, and lowland forests remaining in continental southeast Asia. Active discussions among the three countries are already underway under the auspices of a UNDP regional project. 4. Description The project comprises four inter-related components: National Policy and Capacity Building; Park Protection and Management; Community Development; and Project Management. Each component is described briefly below. I. National Policy and Capacity Building Component This component will help the Ministry of Environment to develop the key elements of a long-term strategy for the National Protected Areas system of Cambodia. This component would finance: (a) a comprehensive review of the existing organizational and management systems currently in place within MOE; (b) development and implementation of national leadership and ranger training programs; (c) the formulation of a sustainable financing strategy for the entire protected areas system; (d) development of proto-type information systems to support protected areas management; (e) the development of national protected areas management planning guidelines; (f) a review of legal and regulatory constraints facing the establishment and management of prote and standards; and (g) public awareness and education programs related to proected areas management. Specifically, the project would finance the small scale upgrading of physical facilities in the MOE; procurement of vehicles and other goods (computers, furniture) for the day to day operations of the project office; hiring of project technical assistance and short-term consultants; domestic and overseas training programs; and national workshops associated with various sub-activity. Key outcomes of this component would be: (1) a stronger consensus among MOE, related government agencies (MOEF, MAFF), NGOs and other stakeholders involved in protected areas management on the long-term vision for Cambodia's protected areas; (2) a clear action program for the priority national initiatives; (3) strengthened MOE professional capacity both in terms of overall protected area leadership within the Ministry as well field and operational staff; and (4) stronger voice for MOE in key national policy issues which affect protected areas. II. Park Protection and Management Component This component will develop and test pilot activities that support the basic management needs of the Virachey National Park in order to build the foundation for a long-term program for biodiversity conservation in Ratanakiri and Stueng Treng Provinces. The project would finance park infrastructure, park management planning, staff development programs, community education and outreach, and park protection initiatives at Virachey - 4 -  National Park. Specifically, this component would finance the construction of a park headquarters building at Voen Sai District; two field operational bases at Ta Veng (Ratanakiri Province) and Siem Pang (Stung Treng Province); small field outposts within the park; and reliable and adequate communications systems to support day-to-day management activities at the Park. Vehicles, boats, motorcycles and other essential field equipment would be financed to ensure that park staff can establish a strong field presence and operate effectively and safely. The project would also finance development and maintainance of safe and manageable trails system for general access to selected sites within Virachey National Park; systematic public conservation awareness and educational programs; a patrolling program that would include the development of a cooperative arrangement between local groups and park staff for surveillance and enforcement; and field based ranger training programs. To support park planning, the project will finance acquisition of biophysical and socioeconomic data through new field surveys; stakeholder consultations/workshops; park zoning; map production; boundary demarcation; long-term technical assistance and short-term subject matter specialiasts as needed. Key outcomes of this component will be: (1) the formulation of a five-year management plan for Virachey National Park addressing both the biological and the human dimensions of conservation including the definition and partial demarcation of the park boundaries; (2) strengthened capacity to manage the field operations at Virachey national park through professional development and ranger training; (3) increased awareness among communities and other land stakeholders in importance of conservation and the biological values of VNP; (4) reduction in unsustainable and illegal exploitation of VNP biological resources; and (5) creation of stronger voice for provincial level environmental and protected areas stakeholders in major land use issues affecting VNP. III. Community Development Component This component will develop and test approaches for involving communities within and adjacent to VNP more directly in park management. At present, many communities rely on the resources of the Park for daily subsistence needs and in times of emergencies such a crop failures. Traditional coping strategies during periods of crop or livestock failures can lead to increased reliance on the non-timber products of the Park leading to further erosion of the Park's biological value. At the same time expansion of agricultural land within the park can lead to habitat loss and increases access to park's core biological resources. The biological values of VNP will be in jeopardy if the long-term economic needs of communities within and around the park are not addressed as an integral part of conservation initiatives. Toward this end the project would: (1) conduct natural resource and social assessments to better understand the livelihood practices, natural resource use patterns, cultural values, and other socioeconomic conditions in and around the park; (2) assist communities in pilot areas to formulate proposals for village and commune development which are consistent with park management goals and which address priority community needs; and (3) provide financial resources to implement community based natural resource management plans, small-scale alternative livelihood initiatives, or small-scale infrastructure - 5 -  identified as priority issues identified through the community planning process. Specifically, the project will finance: training in PRA and community interaction techniques for staff in provincial line agencies; community outreach and education programs; natural resource assessments; in- depth community appraisals; and community development initiatives. The project would provide vehicles, office equipment, technical assistance, and field allowances for staff involved in participatory rural appraisals, census taking and other surveys. To finance community development initiatives, the project will provide financial contributions on a grant basis directly to Ratanakiri and Stung Treng Provinces up to a total of $100,000 paid in tranches of $20,000 to an account specifically targeted for the project's pilot communities. Under the GOC's SEILA program, Ratanakiri province (with support from the UNDP/CARRERE program) has established a Provincial Local Development Fund (PLDF) administered by a Provincial Rural Development Committee (PRDC) chaired by the Governor. Under the existing mechanism, individual community projects are identified through a comprehensive community planning process. Following PRDC approval, individual projects are executed through contracts between the PRDC and executing bodies such as government line agencies, private contractors or commune and village committees. The SEILA program has developed a detailed financial manual which guides the disbursement and accounting of funds for community initiatives. The procedures described in the SEILA manual will be followed under this project. Under this project, individual community initiatives are expected to be small and are not likely to exceed $2,500. Participating communes and beneficiaries will expected to contribute about 10t of the total financial support for individual initiatives in cash or kind. At the moment, there is no equivalent financial mechanism operating in Stung Treng province. Therefore, no grants will be made to Stung Treng province until a provincial level financial mechanism acceptable to the IDA is in place. It is expected that this mechanism will be developed during the first two years of project implementation. Under this component, a minimum of $20,000 will be allocated specifically for Stung Treng. Initial pilot communities have been identified during project preparation in both provinces but could be modified once implementation activities are underway. Criteria for selecting pilot communes and villages included: (a) demonstrated community interest in and willingness to participate in pilot level sustainable natural resource management initiatives; (b) community proximity to park; (c) identified use or potential use by residents of the park's natural resources. Key outcomes of this component will be: (1) strengthened capacity of MOE and provincial government staff to facilitate community development initiatives; (2) evaluation of methodologies for involving communities in park protection and management; (3) increased community willingness to participate in initiatives which further park management objectives; (4) establishment of a zoning system in pilot areas which guides land use within and adjacent to the park; (5) evaluation of incentive systems and livelihood alternatives which complement park protection and management initiatives. IV. Project Management -6-  The project will support project management activities through a project management office in Ban Lung and a project liason office in Phnom Penh. The PMO will be reponsibile for overall annual work program planning, financial management, monitoring, auditing, performance evaluation, and procurement. The project will finance the upgrading of basic office facilities at MOE headquarters, construction of a small office facility in Ban Lung, computers, office equipment and furniture, vehicles, necessary communications equipment, operating costs and filed allowances for travelling staff. Consulting services would also be provided for essential management activities such as performance monitoring, accounting and procurement. National Policy and Capacity Building Park Management and Protection Community Development Project Management 5. Financing Total ( US$m) Government 0 IBRD IDA 1.91 Total Project Cost 1.91 6. Implementation Project Organization The day to day responsibility for managing the project would be given to a Project Director heading a Project Management Office (PMO). The Project Director would have overall responsibility for ensuring that the expected project results are achieved and would be accountable to the Minister of Environment through a Project Coordinator (Secretary of State). The PMO would also be recieve guidance from an Inter-Ministerial steering committee chaired by the Minister of Environment (see below). The Project Director would be responsible for: (a) monitoring and supervising overall implementation progress; (b) financial administration; (c) procurement of goods and services; and (d) preparing annual work plans and progress reports; (e) preparation of annual implementation performance reports; (f) supervision of project staff and international consultants; (g) regular interactions with intended beneficiaries, stakeholders, media and NGOs. At the field level, the Project Director would be assisted by well- qualified technical team leaders responsible for day-to-day operations. It is expected that the Project Director would divide his/her time proportionally between Ban Lung and Phnom Penh. The PMO, with assistance from a team of international project management and protected areas management consultants, would establish a project monitoring and evaluation system based on the key performance indicators outlined in Annex 2 within four months of project effectiveness. The system would include protocols for data collection, analysis, reporting, and dissemination. Because of the absence of banking services in the provinces, project finances would be managed by the Project Management Office in Phnom Penh. A local finance specialist would be hired to assist MoE staff to implement financial control systems, prepare financial plans, and financial reporting procedures - 7-  based on a financial management system acceptable to the Bank. This office would also be specifically responsible for the preparation of annual procurement plans, with assistance from a short-term procurement specialist. Technical Teams The Project Director would establish three closely linked technical teams to lead the implementation of specific project components. The technical teams would be supported by short-term local and international technical assistance on an as needed basis. (a) Regulatory and Policy Team would be headed by a Technical Team Leader for capacity building. The team would be based in Phnom Penh but would work closely with the two other technical teams involved with field implementation of the project. This technical team would be relatively small and would rely on carefully selected and targeted consultant inputs to draft policy note, training modules position papers etc. (b) Park Management and Protection Team would be headed by the Director of the Virachey National Park. The team leader would have responsibility for the implementation of all aspects of the park management component including the infrastructure, management planning and protection aspects of the component. The team leader would be resident in Virachey and would be assisted by a international Protected Areas advisor. (c) Community Development Team would reside in Banlung and would be responsible for oversight of the three sub-components of the sustainable land management component. The Team Leader would coordinate all inputs to this component including possible NGO involvement and contributions from other government departments. Inter-Ministerial Steering Committee. Oversight of the project would be provided by an Inter-Ministerial Steering Committee made up of representatives of key Government Ministries with strong interests in the management of the National Protected Areas Systems. The Steering Committee would comprise the following: a Minister of Environment, Chairman a Representative of His Majesty King Norodom Sihanouk a Governor, Ratanakiri Province a Governor, Steung Treng Province a Director-General, Ministry of Environment a Representative of the Ministry of Economy and Finance a Representative of the Department of Forestry and Wildlife, Ministry of Agriculture, Forest and Fisheries a Representative of the Inter-ministerial Committee on Highland Peoples Development, Ministry of Rural Development a Representative of the Ministry of Tourism. The functions of the Inter-Minsterial Committe would be: (a) to advise on the strategic goals of protected areas management project and review annual progress; (b) to review the recommendations contained within various strategy papers to be developed under the project; (c) to provide a mechanism for addressing major land and social issues which may affect the viability of VNP; (d) -8-  7. Sustainability The sustainability of the project will largely depend on stakeholder support for the long-term management plan for the Virachey National Park and the availability of long-term financing mechanisms for recurrent costs and conservation activities. The preparation of the management plan would actively involve local communities and other key stakeholders. In addition, technical assistance would be provided under the project to develop a model institutional framework for future establishment of a long-term funding mechanism. 8. Lessons learned from past operations in the country/sector The Bank and other donors have yet to support major long term investments in protected areas management or biodiversity conservation in Cambodia. The projects that have been implemented by the MoE, including those listed above, focused largely on providing technical assistance for training in environmental management in general and for the formulation of strategies for natural resources management. The Bank and GEF have considerable experience in protected areas management initiatives in other parts of South East Asia including the neighboring countries of Laos and Vietnam. Bank/GE experience in China and Philippines is also helpful in the Cambodia context. The key lessons from these projects that are relevant to the proposed project include: (a) earlier initiatives have helped to improve basic and general knowledge of the staff of the MoE on environmental management and that future initiatives should build on this by supporting capacity building in specialized aspects of natural resources management; (b) greater attention should be paid to the selection of training participants to ensure that staff with strong commitment and the potential for further growth in their skills are chosen; (c) there should be greater emphasis on field implementation to provide practical opportunities for trainees and to demonstrate impacts on the ground; and (d) financial mechanisms should be developed to sustain project results since it would be unrealistic to expect adequate budget support for environmental activities because of the country's economic crisis. These lessons have been incorporated into the design of specific project activities. For example, capacity building activities would focus strategically on protected areas management, including providing experience in field implementation. Training participants would be carefully selected so that committed staff are trained. For example, participants for the leadership development course would be selected from trainees from an earlier generic course who demonstrate the potential to provide committed leadership. On financial sustainability, the project would support the exploration of options and the development of a model institutional framework for the most appropriate long-term financing mechanism for protected areas in Cambodia. Other lessons from Bank and non-Bank biodiversity conservation projects elsewhere suggest that the following factors are critical for project success: (a) project should be consistent with national strategies for biodiversity conservation to facilitate political commitment and support; (b) project size should be tailored to the institutional capacity of the executing agency; (c) there should be effective involvement of local people and other stakeholders in project design and implementation; and (d) -9-  conservation efforts should be combined with activities to address the immediate socioeconomic needs of the local people. These lessons have been incorporated into the design of the project in the following ways: (a) proposed key project activities were among recommendations in Cambodia's NEAP; (b) because of MoE's limited institutional capacity and experience in biodiversity conservation, the project is designed as a pilot to provide capacity building opportunities and to develop model approaches for biodiversity and protected areas management; (c) local stakeholders, including ethnic minorities in the project area, were consulted on issues related to protected area management and land use and how they can be resolved. These stakeholders would also play a key role in preparing a long-term management plan for the Virachey National Park which would be undertaken during project implementation; (d) project would support community-based pilot activities aimed at providing environmentally and economically sustainable livelihood alternatives to land and other resource use practices that can adversely impact a protected area; and (e) project would provide support for the MoE to develop a model institutional framework for a future financial mechanism for biodiversity conservation. 9. Program of Targeted Intervention (PTI) No 10. Environment Aspects (including any public consultation) Issues : The project's objectives are to achieve sustainable management of the Virachey National Park. Field activities are small scale involving the construction of small park headquarters buildings and field posts. There are no significant direct environmental effects of any project component thus there is no separate Environmental Assessment prepared for the project. The project's field operations are being implemented in an area known to be subjected to illegal logging, hunting, and wildlife trade. If successful, the project will help to reduce and control such practices. The project will support the formulation of a medium term park management plan for Virachey National Park. Part of the plan will involve definition of land and resources use zones within the park and will define specific measures to be undertaken. To better understand the environmental dimensions of park management the management plan formulation process will involve principles of environmental planning. To ensure the long range sustainability of the plan, an environmental assessment will be carried out on the plan itself. 11. Contact Point: The InfoShop The World Bank 1818 H Street, N.W. Washington, D.C. 20433 Telephone: (202) 458-5454 Fax: (202) 522-1500 Task Manager Glenn S. Morgan The World Bank 1818 H Street, NW Washington D.C. 20433 - 10 -  Telephone: (202) 458-1909 Fax: (202) 522-1666 Note: This is information on an evolving project. Certain components may not be necessarily included in the final project. Processed by the InfoShop week ending October 29, 1999. - 11 -