Mozambique - Coastal and Marine Biodiversity Management Project (GEF)

Report No. PID5743 Project Name Mozambique-Coastal and Marine Biodiversity (+) Management Project Region Africa Sector Environment Project ID MZGE35919 Borrower Government of Mozambique Implementing Agencies Ministerio para Coordinacao da Accao Ambiental (MICOA) Av. Acordos de Lusaka, 2115 Caixa Postal 2020 Maputo, Mozambique Contact: Sr. Anselmo Gaspar Telephone: 465843/48/51 Fax: 465849 Date PID prepared July 6, 1999; Updated: August 8, 2000 Appraisal date FY99 Projected Board date FY2000 Country and sector background: Mozambique's coastal zone is unique in the East Africa region in terms of the quality, diversity and species richness of its habitats. Largely as a consequence of the past two decades of war and political instability which deterred the evolution of most economic activities in the coastal zone, coastal ecosystems remain in relatively pristine condition. However, establishment of what appears to be lasting peace and the accompanying rapid transition to a dynamic economy has led to rapid development. While the biodiversity and the natural beauty of the pristine coast combine for a high potential for supporting sustainable coastal development this potential is being undermined by the inadequate coastal management capacity in the country. A narrow window of opportunity to address these threats exists, but immediate action is needed. This need is recognized in both the National Environmental Management Program and the National Forestry and Wildlife Program each of which prioritize management of coastal and marine biodiversity. Project objectives: The development objective of the CMBMP (as the first in a series of steps towards developing an integrated coastal zone management process for the entire country) is to test and refine an approach to achieve sustainable economic development of coastal zone resources. This is to be accomplished through a strategic development planning process that balances ecological, social and physical values, with the varying development interests in the coastal zone. Progress toward this objective would be measured by: (a) adoption of strategic spatial development plans by the national, provincial and district authorities in the pilot areas; (b) improved institutional capacity for integrated coastal zone management at provincial and district level; (c) devolution of coastal zone planning to provincial level; and (d) different coastal zone management models tested, including community management and private sector concessions. The global objective of the CMBMP is to ensure the effective protection of globally significant coastal and marine habitats and species. Achievement of this objective is fully integrated into the overall strategic development planning approach being piloted by this project. Its success will be measured by: (a) establishment of effective protection of key marine conservation areas; and (b) co-management in buffer zones of marine conservation areas are consistent with conservation objectives.  Project description: The project will initially focus on four districts in northern Mozambique. The criteria for selection of these sites emphasized: the presence of globally significant biodiversity and rich cultural heritage values; high economic development potential, provincial and district government commitment to the goals of environmentally and socially sustainable economic development; and a local population interested in participating in the proposed development process. An improved ability of the provincial and local governments to make strategic choices concerning integrated coastal zone management will be a key output of the project. The experience gained through Project implementation should provide a framework for other provinces and districts to follow. The "demonstration effect" should encourage the use of social, ecological, and economic planning tools within the spatial development planning context to arrive at sustainable district development plans. This would include choices such as the extent of private sector participation in conservation management, the role of communities, and the most effective training mechanisms. It is anticipated that the most important means of disseminating lessons learned during this pilot phase will be through adoption of the process, in an improved and expanded form, under the long-term CZMP. A detailed description of the Project components follows. Project Component 1 - Strategic Development Plans (SDP) (US$1.7m) This component will be implemented in the districts of Palma, Mocimboa da Praia (Cabo Delgado Province), and Nacala-Porto and Mossuril (Nampula Province) in northern Mozambique. It aims to provide these provincial and district governments with strategic planning tools that will facilitate conservation and sustainable development of valuable coastal and marine resources. The project aims to create a district-level development model that marries environmental and social sustainability to appropriate private and public sector investment. Two strategic spatial development plans (SPD) will be developed to cover these districts (one covering the Cabo Delgado pilot area and the other covering the Nampula pilot area). These Plans will include both terrestrial and marine territory. Since the districts include areas of pristine wilderness and high biodiversity value, the GEF will finance biodiversity overlays for the two SDPs to ensure that proposed spatial development and land use is consistent with conservation and sustainable use of the area's biodiversity. In particular it will ensure that proposed development is appropriate and consistent with protection and conservation of two marine areas of recognized global biodiversity value and high ecotourism potential: 1) the northern Quirimbas islands and adjacent mainland, and 2) the Nacala-Mossuril coastline Preparation of the SDP for each project area/district consists of five principal activities: (1) landuse/capability assessment (including terrestrial and marine areas) (2); social assessment, (including participatory assessments of community use and dependence on natural resources, demographics and social attitude surveys); (3) incorporation of biodiversity values including designation of key conservation areas and appropriate use and management regimes for areas of remaining natural habitat and biological corridors; (4) integration into a single strategic development plan for each pilot area; and (5) review and adoption of the SDPs by local and provincial government and other stakeholders. This final step is critical to ensuring provincial and district ownership of the final SDP. It will include, and be facilitated by, a series of district and provincial level workshops and community meetings organized by the provincial and local government with support of the social advisor to present and explain the draft SDP. This will provide a feedback mechanism, to ensure stakeholder inputs to the SDP, particularly those of the affected local communities, have been accurately and equitably reflected in the plan. The SDP will be finalized based on the outputs of these meetings. - 2 -  The SDP, to be completed within 24 months, will provide the strategic framework for district development including areas designated for conservation areas, private sector development and community based natural resource management or co-management with government agencies. Project Component 2 - Biodiversity Conservation and Sustainable Community Development (US$ 3.6 million) This component will focus on establishing and strengthening protected area management in two globally important conservation areas, biological monitoring and a community development fund. Sub-Component 2.1 - Conservation Area Management will focus on implementation of biodiversity conservation and management in two areas of recognized global importance: the proposed Quirimbas national park and the proposed Nacala- Mossuril park. The project will support establishment and gazettement of the conservation areas, boundary rationalization and zoning for appropriate use. The project will also finance technical assistance; preparation and implementation of detailed management plans for the MCAs and their buffer zones; community land demarcation; limited equipment and infrastructure (such as guard posts and boundary markers); and appropriate training and capacity building for park staff and communities to work together on co-management of natural resources and development of revenue generating mechanisms. The management plans will be formulated in close partnership with local communities and the private sector where appropriate, and will clearly define the roles of the various actors in management of these areas. The Project will support development of best practice guidelines for protected area co-management and development of regulations relating to co-management arrangements with local communities and conservation concessions. Sub component 2.2 Biological Monitoring will support ecological surveys and monitoring of key indicator species (e.g., turtles, dugong) and habitats (e.g., coral reefs) to determine what impact the project has on biodiversity protection. Monitoring will be undertaken both within the key marine conservation areas and in adjacent coastal and marine habitats. Under this component, training may be provided to local communities to build local capacity for data collection relevant to establishing management guidelines for sustainable harvesting of key marine resources. Data on migratory species will be shared with other regional agencies as part of regional monitoring programs. Data on coral reef condition and recovery will be relayed to the Global Coral Reef monitoring network. The project includes support for the establishment of two field stations. Sub-Component 2.3 Community Participation and Development Fund (CDF) will provide matching grant financing for community based microprojects that directly or indirectly promote biodiversity conservation. The CDF will target communities within or neighboring the key conservation areas of Quirimbas and Nacala-Mossuril as well as other biologically important areas identified in the SDP. CDF financed micro-projects will be expected to meet clearly defined eligibility criteria including: compatibility with the management objectives of the conservation areas, technical feasibility, cost effectiveness, ecological, economic and social sustainability and demonstrated community commitment and in-kind contribution. Typical micro-projects could include: community-run ecotourism activities and/or micro-enterprises that reduce pressure on biological resources (e.g., support for less damaging artisanal fishing techniques). The component will also support capacity building for micro-enterprise development and private sector negotiation for communities. Project Component 3 - Private Sector Development (US$ 1.3 million) - 3 -  One of the SDP outputs will be the identification of a site in one of the two pilot areas that would be suitable for a substantial private sector investment (e.g., sustainably managed eco-tourism having a target value of between US$10-30 million). The objective is to pilot a real example of how the principles used to create the SDP can translate into, and leverage, a much larger investment in the area covered by the Plan. The proposed tender will attract private sector investment into the Project area and serve as an incentive for local, provincial and national government to adopt the integrated SDP approach. It will also illustrate that the cost of preparing spatial development plans, when averaged against the improved investment climate that will result once a SDP has been adopted, is actually very small. Best practice guidelines will be extracted from this process for replication in other coastal zone areas of Mozambique and the region. Project Component 4 - Training and Public Awareness (US$ 0.7 million) Sub-Component 4.1: Training will focus on the following levels of stakeholders in order to build capacity for decentralized coastal zone planning and management: (a) technical staff of implementing agencies, particularly at the provincial level; (b) communities and local resource users; (c) local government staff and other local administrators (traditional leaders, religious leaders, local NGOs, etc.); and (d) decision-makers. A training needs assessment is being completed. Sub-Component 4.2: Public Awareness has been designed to target two of the four target groups identified in the CZMP, namely decision makers and local resource users . This has been done because these two groups are considered the most critical in raising awareness concerning the need for biodiversity management in the pilot areas. Project Component 5 - Project Management and Monitoring and Evaluation (US$ 2.4 million) Sub-Component 5.1: Project Management will finance the direct equipment, and operational and incremental staff costs of project coordination and management at the central and local level. As there are many players involved in management of coastal zone resources, the project will support regular coordination meetings and communication between components undertaking activities under the Project as part of the management component. Sub-Component 5.2: Monitoring and Evaluation supports the development and implementation of a monitoring and evaluation mechanism that will meet both overall program as well as project specific requirements. It will thus (i) assess the overall effectiveness of the project in the context of the CZMP; (ii) evaluate the effectiveness in achieving project specific outputs and development objectives; (iii) incorporate and expand ecological indicators for the broader project area, including assessing impact at a landscape level (building on component 2.2); (iv) monitor the status of the social conditions of the pilot areas measured against the baselines established in component 1; and (v) advise on the most effective institutional structure for the future collection and evaluation of monitoring data concerning the state of the coastal zone. An independent monitoring and evaluation consultancy team will be financed to refine and implement a detailed monitoring plan (being developed). Lessons learned from this monitoring component will provide guidance for the design of a long term monitoring system for coastal and marine resources. Project financing: Financing of the project will be through an IDA Credit (US$ 5.6 million) and a GEF Grant (US$ 4.11 million). Project implementation: The overall coordination and management of the CMBMP will be the responsibility of MICOA. The CZM project management team will be headed by a Project -4 -  Manager who will be supported by a full time project advisor, a finance and procurement administrator and an administrative secretary. At the provincial/district level, coordination will be facilitated through Provincial Steering Committees (PSC) formed for this purpose. These will report to the provincial governor and will consist of representatives from key technical line ministries, district government, and other local leaders as appropriate. Two field coordinators, one for each province, will be appointed to work closely with and support the local coordination units and field-based teams from relevant agencies providing technical support. Ministerial oversight of the CMBMP will be provided by the National Steering Committee (NSC), which includes the provincial governors. Coordination within and between technical teams working on the various Project components will also be strengthened through assistance provided by internationally and regionally contracted advisors (planning, social/participation, marine and terrestrial conservation, project management). Monitoring and Evaluation: Monitoring and evaluation of progress and impact will be through a dedicated and detailed monitoring plan (under preparation). The monitoring plan will specify the key indicators/data needs and sources, who will collect the data and how frequently. MICOA will contract independent consultants to review and refine the monitoring evaluation plan. Consultants will also be responsible for evaluating and consolidating monitoring data into semi- annual monitoring reports. These reports will form the basis of the semi-annual Project review meetings. It is expected that the Bank supervision missions will correspond with these semi- annual review meetings. In addition, the consultants will conduct independent mid-term and end- term beneficiary assessments within the pilot areas. These will serve as the basis for mid-term and completion reviews, respectively. Project sustainability: The proposed project is being designed in response to the urgent need for coastal and marine biodiversity protection arising from Mozambique's post-conflict rapid and dynamic economic development process. It will be the first phase in a long-term effort but nonetheless it will itself have lasting impacts. First, it will contribute to the development of a policy, institutional and legislative framework as well as introduce participatory planning to guide coastal and marine biodiversity management over the long-term. Second, it has a strong human resource development focus that will increase the capabilities of key stakeholder to plan, monitor and manage coastal and marine biodiversity. Third, it will put in place mechanisms to ensure financial sustainability of the project initiated activities in protected areas. Fourth, it will identify and pilot alternative income-earning livelihood activities and thus reduce the pressure on biodiversity. Lessons learned from past operations in the country/sector: Drawing on the experience of the Bank's Mozambique portfolio, in particular the Transfrontier Conservation Areas project, as well as the Bankwide biodiversity portfolio and regional and local natural resources management initiatives, the following key needs for successful project design and implementation have been identified: - Government commitment to the project and ownership of its underlying principles and rationale will be ensured through an open and supportive dialogue with government as well as targeted awareness raising activities for key decision-makers; - sustained inter-agency coordination will be promoted by linking project implementation to existing institutions and by forging agreements, and where necessary policies and legislation, that establish clear definitions of roles and responsibilities of the involved institutions; - early consultation with and participation of key stakeholders, including a clearly - 5 -  defined participatory process, which outlines the roles and responsibilities of different players (government, local communities, academia, private sector, NGOs), will be addressed through social assessments during the preparation and implementation phases. - Human and institutional capacity constraints in government, local communities and NGOs will be addressed through building capacity during the preparation process, engaging in strong collaborative partnerships and through both short- and long-term capacity building at both the national and local levels during implementation. The purpose is to create a critical mass of scientific and management expertise, which should allow future, more ambitious, natural resource management activities to be implemented in the coastal zone of Mozambique. - first steps towards a supportive legal and policy framework formalizing the government's commitment to devolve responsibility for management of natural resources to local governments and the resource users as well as providing incentives to complement command and control mechanisms will be encouraged during implementation. - linkages between biodiversity and coastal zone planning will be promoted within the context of the environmentally and socially sustainable strategic development planning processes being developed through the project. - adaptability to changing dynamics of the country's development processes and threats to project objectives will be ensured through adoption of a flexible, action-learning approach and working towards a programmatic approach to incrementally expanding pilot level strategic development planning; - economic alternatives will be explored for communities that "directly use and over-exploit natural resources. A strategic development planning model will be used promote a more appropriate and sustainable use of natural resources and establish linkages between sustainable private sector investment and social development and biodiversity conservation; - adequate knowledge of local socioeconomic, ecological and cultural factors is a prerequisite to identifying viable development alternatives. - financial sustainability of biodiversity conservation and sustainable use of natural resources will be a central focus of the Project. Particular emphasis during implementation will be on catalyzing private sector participation in conservation management in the context of participatory and equitable management plans and the development of financing mechanisms to cover recurrent costs. Poverty category: N/A Environmental aspects: The project objective is to positively influence the conservation and sustainable use of coastal and marine ecosystems and species of special concern. Nevertheless, there might be possible environmental and/or social issues associated with the redefinition of protected area boundaries and adaptations in current livelihood patterns/resource use. Monitoring and mitigation actions have been incorporated into project design. The project is classified as Environmental Category B. Program objective categories: EN Contact Point: The InfoShop The World Bank - 6 -  1818 H St, NW Washington, DC 20433 Telephone: 202-458-5454 Fax: 202-522-1500 Processed by the InfoShop week ending August 11, 2000. - 7 -  Annex Because this is a Category B project, it may be required that the borrower prepare a separate EA report. If a separate EA report is required, once it is prepared and submitted to the Bank, in accordance with OP 4.01, Environmental Assessment, it will be filed as an annex to the Public Information Document (PID) . If no separate EA report is required, the PID will not contain an EA annex; the findings and recommendations of the EA will be reflected in the body of the PID. -8-