Updated Project Information Document (PID) Report No: AB626 Project Name OECS COUNTRIES - OECS Protected Areas and Associated Alternative Livelihood Region Latin America and Caribbean Region Sector Central government administration (100%) Theme Biodiversity (P); Rural non-farm income generation (S); Participation and civic engagement (S) Project P073267 Borrower(s) Implementing Agency(ies) ORGANIZATION OF EASTERN CARIBBEAN STATES SECRETARIAT-ESDU Address: Morne Fortuné, P.O. Box 1383, Castries, St. Lucia, West Indies Contact Person: Dr. Vasantha Chase, Head of Unit Tel: 758-453-6208 Fax: 758-452-2194 Email: oecsnr@candw.lc Environment Category B (Partial Assessment) Date PID Prepared February 27, 2004 Auth Appr/Negs Date February 17, 2004 Bank Approval Date May 20, 2004 1. Country and Sector Background Sector Issues. Despite the Caribbean's large endowment of biodiversity-rich ecosystems, there is growing evidence of degradation of these fragile ecosystems, particularly associated with poorly-planned coastal development, population growth, tourism, pollution, over-exploitation of living resources, accelerated sedimentation associated with changes in upstream land use, rapid expansion of coastal developments, and the introduction of exotic species. As a result, important biological systems, particularly beaches, coral reefs, wetlands, tropical forests and seagrass beds, are under intense pressure, threatening the region's biological diversity. Threats and the underlying causal factors contributing to them in the OECS Region presented by habitat include: Highly productive coastal ecosystems (e.g., coral reefs, seagrass beds, mangroves and other wetland areas) mainly attributable to: (i) accelerated erosion and sedimentation (e.g, from deforestation, dredging, and inappropriate agricultural and development practices); (ii) non-sustainable harvesting practices (e.g. mangrove, fish, corals, and marine algae); (iii) reef damage associated with unregulated tourism and other user impacts, as well as climate change induced higher water temperatures; (iv) pollution (urban, industrial and agricultural); (v) beach mining; and (vi) exotic species introduction (e.g., aquaculture); Wet and dry tropical forest ecosystems (and related loss of area and species diversity), resulting from: (i) excessive logging, charcoal burning and hunting; (ii) inappropriate agricultural practices; (iii) feral and untethered livestock; (iv) presence/introduction of exotic species; (v) inappropriate solid waste disposal; and (vi) poorly planned economic development (e.g. road construction and quarrying); Rocky shore communities, attributable to: (i) mollusk harvesting; (ii) solid waste and urban pollution; and (iii) inappropriate development practices (e.g., including land reclamation and erection of coastal structures); Offshore islets, resulting from (i) inappropriate tourism and agricultural development practices; (ii) feral or 2 PID untethered livestock; and (iii) inappropriate solid waste management; and Freshwater ecosystems, resulting from: (i) pollution (e.g., agricultural, solid waste and wastewater discharge); (ii) accelerated erosion and sedimentation (conversion of riparian forests and inappropriate agriculture and economic development practices; (iii) introduction of exotic species; and (iv) inappropriate fishing practices. In addition, all the region's ecosystems are to varying degrees vulnerable to natural hazards. Due to their geographic location and topography, the OECS countries are subject to two main types of natural hazards which impact on its biodiversity: (i) hurricanes and related tropical low-pressure systems (wind damage, storm surge, and coastal flooding); and (ii) sea level rise (coastal erosion). Finally, "high" OECS countries such as St. Lucia are also subject to soil erosion and mass movement aggravated by poor land use practices resulting in the sedimentation of freshwater and coastal/marine habitats (see Matrices 2 - 5 in Annex 6 for more detail). Key constraints The formulation and adoption of effective measures to address the aforementioned threats to biodiversity conservation in the OECS countries, particularly the establishment and management of PAs, faces a number of critical constraints. These are: Inadequate legislation and weak implementation and enforcement of existing laws. While The OECS countries have inherited or enacted many laws related to biodiversity conservation and PA protection, many of these laws are obsolete and do not provide a comprehensive framework needed to conserve the region's biodiversity. Moreover, much of the legislation has remained unimplemented due to the lack of regulation and thus cannot be effectively enforced; Policy gaps, institutional overlaps and lack of co-ordination in natural resources management. Existing MS' institutional arrangements are weakened by gaps in existing policies (e.g., the failure to incorporate environmental and social costs into economic decision-making) and overlaps and/or unclear institutional responsibilities for the conservation and management of biodiversity in many of the MS (particularly with respect to the management of coastal resources). The situation is further exacerbated by an absence of effective mechanisms for information sharing, integrated planning and collaboration among agencies in the implementation of programs and projects is a major constraint to PA management; Limited human, financial and material resources. Like other SIDS, the OECS countries have a limited pool of persons with relevant professional and technical training and experience in biodiversity conservation and protected areas management. Funding, facilities and equipment, where available at all, for the responsible agencies is often inadequate. Where PA-generated revenue exists (e.g., through royalties and license fees), it typically goes to the Member States' (MS) treasury departments and cannot be retained by the responsible governmental agencies; Lack of natural resource data. Natural resource and conservation data are inadequate both in terms of content and organization for sound resource management and long-term sustainable planning efforts. Data where they exist, are not accessible and available to policy makers, community members, regional stakeholders and managers; Limited sustainable economic opportunities. In the OECS countries a significant proportion of the community is engaged in natural resource based activities, including agriculture and fisheries. In some 3 PID areas, these traditional activities as presently practiced are not environmentally sustainable and adversely impact the underlying natural systems. In many cases, the achievement of conservation objectives will depend upon the identification of viable alternative sustainable livelihoods and/or support to more environmentally sustainable practices; and Limited public support for conservation efforts. In the OECS countries, "bread and butter" socio-economic issues remain the main national priority. Despite an increase in general environmental awareness, particularly amongst the young and some communities already involved in conservation efforts, direct support for conservation is still largely confined to membership in environmental NGOs. OECS government strategies Government sectoral strategies in the region are based on international conventions to which they are signatories, policy statements, legal and institutional instruments, recent environmental programs, and financial support of conservation activities through budget allocations. As indicators they support the conclusion that regional decision-makers are conscious of the importance of conservation and the management of natural and cultural resources as the basis of sustainable development. A matrix of OECS country-ratified treaties and conventions that are pertinent to this project has been prepared and is available in project files (e.g. RAMSAR, CITES and Bonn). Convention on Biological Diversity (CBD): The OECS participating countries were some of the first countries to ratify the CBD. The project is fully compatible with the principles of the Convention and will support three levels of biodiversity (ecosystems, species, and genes). Cartagena Convention. This Convention is the only regional environmental treaty for the Wider Caribbean Region and serves as a vehicle for the implementation of global initiatives and legal instruments, such as the CBD. To date it has been ratified by 21 countries including all but one MS (St.Kitts and Nevis). It is supplemented by the Protocol Concerning Specially Protected Areas and Wildlife (SPAW) in the Wider Caribbean Region; among the participating member states (PMS), St. Vincent and the Grenadines (1991) and St. Lucia (2000) have ratified the protocol. National Environmental Profiles (NEPs): Comprehensive NEPs have been prepared for all the PMS under the umbrella of the Caribbean Conservation Association (CCA). These profiles play an important part in the processes of environmental education, environmental management and the regulatory control of land development in the OECS countries, including the assessment of environmental impacts; National Biodiversity Strategy Action Plans (NBSAPs). Five of the 6 PMSs have completed NBSAPs (St. Kitts-Nevis is presently preparing its NBSAP). The shared objectives of these strategies relevant to project objectives include: (i) conservation of the country's diversity of ecosystems, species and genetic resources; (ii) establishment of protected areas; (iii) promotion of sustainable uses of these resources in support of human development with an emphasis on tourism; (iv) encouragement of the equitable distribution of the benefits derived from the use of biodiversity; (v) need to establish baseline data; (vi) improvement of institutional and management capacity; and (vii) facilitation of the participation of people and institutions in the management of biodiversity; National Environmental Action Plans (NEAP). All 6 PMS have completed NEAPs in the last decade. In all cases, they have highlighted the complementary nature and importance of recognizing the inter-sectoral impacts on biodiversity in a small island context; 4 PID St. George's Declaration of Principles for Environmental Sustainability in the OECS. All the PMS have endorsed the St. George's Declaration, which includes a commitment to the conservation of biological diversity and the protection of areas of outstanding scientific, cultural, spiritual, ecological, scenic and aesthetic significance. OECS/ESDU is assisting the member countries to undertake reviews of the existing legal and institutional framework for environmental management to further compliance with the Declaration; OECS Environmental Management Strategy (OECS EMS). The Strategy was completed in March 2002 and endorsed by the OECS Environment Policy Committee (EPC) in July 2002. The Strategy: (i) integrates environmental management into development planning at the regional and national levels; (ii) assists the OECS region in planning for and responding to environmental issues of common interest; (iii) encourages pooling of intra-regional financial, human and other resources to achieve environmental management objectives; and (iv) promotes harmonization of national policy, legislation, capacity building and on the ground implementation with respect to environmental management. National Parks and Protected Areas System Plans. In the region, there are 98 gazetted PAs and an additional 9 PAs that are in the process of being created. Three of the PMS, Dominica, Grenada and St. Lucia, have already prepared national protected areas system plans. Additionally, St. Vincent and the Grenadines is about to commission work for the preparation of a national PA system plan. Steps have been taken to implement aspects of these plans; however, the need to revise them in accordance with IUCN guidelines has been recognized. In light of the plethora of PAs in the region, many of them apparently not supported with the necessary financial and human resources to ensure the achievement of basic biodiversity conservation objectives, less their long-term sustainability, there is a need for a regional strategy and rationalization process to use scarce resources more efficiently to conserve biodiversity of global importance. Sector issues to be addressed by the project and strategic choices . Among the sector issues outlined above, the proposed project would focus on those linked most closely to the PMS' priorities of: (i) harmonization at the national and regional levels of the institutional, policy, and legal frameworks relevant to biodiversity conservation; (ii) identification and development of sustainable financing mechanisms to support PAs; (iii) promotion of the collaborative management of PAs; (iv) adoption of a strategy for conservation interventions, including the establishment of PAs containing globally significant biodiversity while improving economic alternatives for local communities; and (v) increasing institutional capacity in the region to manage and conserve biodiversity. Specifically the project will: Develop a more appropriate institutional framework for conservation management. The project will provide a critical focus and impetus to harmonize the existing natural resources legal and institutional frameworks to promote conservation and protected area establishment and management. Project activities will promote standards that will help the OECS countries comply with relevant international treaties and conventions, although formal ratification of such treaties falls outside of the scope of this project. Promote improved biodiversity conservation. For institutional and legal reform to be effective there must be active application of these reforms at the PA site level. The demonstration protected areas chosen for inclusion in the project will form the first phase of the development of an integrated regional PA system which would be developed, guided by a regional development strategy, in subsequent program phases. 5 PID These pilot areas will also demonstrate that effective management of natural systems can bring tangible economic benefits and a higher overall quality of life for those communities in and around those areas; Develop and implement innovative financial mechanisms to support PAs. A key constraint facing the sustainable management of PAs in the OECS region is the lack of public funds. The project will support an assessment and study of one or more financing mechanisms which could support PAs at the regional level (e.g., the creation of a regional biodiversity fund, debt swaps, etc.). Moreover, each project supported PA will receive funds and assistance to develop a new (or update an existing) management plan which will include a financial management strategy. Depending on site characteristics, new funding mechanisms will be explored and supported where found to be relevant (e.g., national lotteries, public-good service payment schemes, increasing the use of user fees, introducing corporate donations and friends schemes, etc.) Promote environmentally compatible economic activities. In order to provide economic opportunities that support biodiversity conservation, the project will seek to identify and promote environmentally compatible activities through training, environmental education and community involvement and investments; and Increase national capacity and awareness of biodiversity significance and the need for its conservation. To ensure long term sustainability, the project will support increasing national institutional capacities and levels of public support for biodiversity conservation and sustainable management of PAs through education, training and awareness activities. 2. Objectives The development objective of the project is to strengthen national and regional capacities in the sound management of protected areas (PAs) in support of the sustainable economic development of Small Island Developing States SIDS in the Organization of Eastern Caribbean States (OECS) sub-region through: (i) the strengthening of existing and creation of new protected areas (PAs); and (ii) providing environmentally sustainable economic opportunities for communities living in the surrounding areas. This will be accomplished by supporting the following activities: (i) improving the relevant legal, policy and institutional arrangements (collectively termed institutional framework) in the participating OECS countries; (ii) establishing or strengthening a number of pilot PAs including providing support for the development of new and alternative livelihoods for communities living in proximity to these sites; and (iii) improving institutional capacity to manage PAs in the region. The principal project outcomes will be: (i) common, updated and comprehensive institutional frameworks supporting national systems of protected areas; (ii) establishment of new or strengthening of existing pilot PAs; (iii) development and enhancement of environmentally compatible economic opportunities in communities associated with the proposed PAs; and (iv) increased public awareness of the importance of biodiversity conservation and protected area management in the sustainable economic development of SIDS. The global objective of the project is to contribute to the conservation of biodiversity of global importance in the OECS region by removing barriers to the effective management of PAs, and to increase the involvement of civil society and the private sector in the planning, management and sustainable use of these areas. 6 PID 3. Rationale for Bank's Involvement Value added of Bank and GEF support in this project: The primary benefit of GEF support will be securing the protection of important global biodiversity resources through effective management of these critical marine/coastal ecosystems. GEF resources will be instrumental in introducing the integrated conservation management of ecosystems, information management training and technology, and institutional reform that are essential in island environments and in managing the conflicts inherent in the multiple-use of coastal zones. With GEF support the proposed PAs will be established based on sound management principles. Effective practices will be introduced for the conservation of biodiversity that could be replicated elsewhere in the region. The GEF supported project will provide opportunities for communities, through linkages with the public and private sectors, to more effectively benefit from improved use of local natural amenities in a way that will support the long-term goals of the program of conserving biodiversity. GEF financing will also be used for carrying out ongoing biodiversity information management, training, and monitoring, key tools of conservation management both locally and regionally. Finally, GEF funds will be instrumental in leveraging the support of other donors. One of the main objectives of the Country Assistance Strategy (CAS) for the Eastern Caribbean for the period from July 2001 to June 2006 is to reduce income insecurity and vulnerability at both aggregate and household levels. Specific mention is made in the CAS of tourism as one of the most important economic activities in the region, contributing between a third to a half of GDP in most of the OECS countries, and a priority sector targeted for further development throughout the region. Sustaining the tourism industry and the economic benefits it brings, requires ensuring the natural resource base on which the sector depends remains intact. In the absence of sound protection and management of the region's diverse ecosystems, current trends in degradation of reefs and other coastal ecosystems, deforestation, beach erosion, depletion of fish stocks, declines in or loss of livelihoods, particularly among the marginally employed agricultural and fishing populations, will eventually combine to result in an overall negative impact on the tourism industry. The objectives of the project are consistent with this strategy. The project will also benefit from the Bank's considerable experience in the Latin American and Caribbean region of financing and supervising the implementation of projects to address natural resources management issues, and specifically biodiversity conservation. During project preparation considerable new information was developed and conservation strategies tailored to suit local needs and assure long-term benefits as a result of the GEF financed project preparation. Regionally, the Bank is currently implementing the Grenada Dry Forest Biodiversity Conservation MSP, a GEF co-financed project, and the lessons learned and experience gained during project implementation will greatly assist this project. The recently completed GEF/World Bank-supported Solid and Ship Generated Waste Management Project and the ongoing GEF-financed Mainstreaming Adaptation to Climate Change Project for the Caribbean have also added to the Bank's relevant experience base within the area. Additionally, the Bank will be able to assist with identifying and attracting additional co-financing for the project. 4. Description The project will have four components: (1) PAs policy, legal and institutional arrangements reform ($1.3M); (2) Protected areas management and associated sustainable alternative livelihoods ($3.1M); (3) Building capacity for biodiversity conservation and PA management and increasing awareness ($.8M); and (4) Project management, monitoring, and evaluation and information dissemination ($1.6M). The project area of coverage will be located within the territories of the six Participating Member States of the OECS (namely: Antigua and Barbuda, the Commonwealth of Dominica, Grenada, St. Kitts and Nevis, St. Lucia and St. Vincent and the Grenadines). 7 PID 5. Financing Source (Total ( US$m)) BORROWER/RECIPIENT ($1.88) FONDS FRANCAIS DE L'ENVIRONNEMENT MONDIAL ($1.64) GLOBAL ENVIRONMENT FACILITY ($3.70) ORGANIZATION OF AMERICAN STATES ($0.35) Total Project Cost: $7.57 6. Implementation The project would be implemented over a period of five years. The OECS Secretariat will be the Grant Recipient on behalf of the Participating Member States (PMS) and the Executing Agency responsible for the implementation of the project through its existing Environmental and Sustainable Development Unit (OECS/ESDU). ESDU will execute the project under the overall guidance of the Project Steering Committee (PSC) composed of representatives of the PMS. At the national levels, ESDU will benefit from (i) advisory support from inter-sectoral National Technical Advisory Committees (NTACs) to be composed of national representatives from relevant public and private institutions including NGOs involved in environmental and biodiversity management, and (ii) the operational support of National Implemention Coordinating Entity (NICE) to be established in each participating countries with responsibilities for preparing national annual work plans and budgets, day-to-day implementation of the national-level project activities, and (ii) implementing local site activities in collaboration with Site Implementing Entities (or SIEs to be constituted of representatives from community groups living in and around the PA, and of appropriate public sector and relevant private sector agencies). ESDU will be responsible for the overall day-to-day operation and management of the project (including project oversight, coordination, maintenance of institutional networks, and articulation and collaboration with stakeholders). It will also collaborate with regional and other international institutions in the execution of some activities of regional scope. 7. Sustainability Factors that will ensure sustainability of project achievements include a broad focus on improving: (a) the capacity for sustainable funding of PAs through: (i) support for a study to identify relevant and appropriate PA financing mechanisms in the OECS region; (ii) inclusion of project-supported PA financing plans (encompassing revenue generating mechanisms either through increased visitation, sale of products and/or services, or other creative means) as part of management plan preparation; (b) the institutional sustainability through: (i) improved institutional strength and capacity with project-funded training and infrastructure that will greatly improve stability and continuity of biodiversity conservation efforts; (ii) a better enabling institutional framework that will streamline efforts for biodiversity conservation and bring a new level of continuity, accountability, and order in protected area declaration and management; broad constituent support (including at the community level) and continued government support through institutional and legal reforms, as well as increased capacity due to improvements in information technology and training that will help institutionalize conservation activities, create a constituency within the public sector and empower local population involved in participatory management of the PAs. 8 PID 8. Lessons learned from past operations in the country/sector Project design has incorporated a number of critical "lessons learned" from past projects of which the most recent is the just completed OECS Solid and Ship Generated Waste Management Project (SGSWMP). These include: (i) regional approaches provide for greater aid effectiveness in small island developing states (SIDS); (ii) stakeholders must be engaged in co-managing resources especially in SIDS where there is a need to ameliorate weaknesses in institutional capacity in public sector agencies; (iii) the importance of a flexible project design and the use of participatory monitoring and evaluation techniques together with more formal evaluation to periodically assess project performance and guide management; (iv) to be effective, conservation needs must be combined with activities aimed at meeting socio-economic needs; (v) given the importance of tourism to the region, it is critical at this stage in the development of the sectors that increasing livelihood benefits are identified and developed in parallel with the protection of the natural resource base; (vi) although regionally managed, the project needs to give attention to the broader political and socio-economic environment within which intended activities are to take place; and (vii) the need for mechanisms to be put in place to ensure that project activities are sustainable and are fully integrated into national and regional on-going initiatives. 9. Environment Aspects (including any public consultation) Issues : In accordance with OP 4.01, an Environmental Assessment (EA) was conducted by ESDU and completed in November 2003 and disseminated. This EA identifies potential direct and indirect environmental impacts associated with the project and incorporate relevant mitigation measures in the project's design and implementation. The project will be largely positive or neutral from an environmental standpoint and few of the proposed activities are likely to have adverse impacts. Examples of possible adverse effects include site-specific impacts associated with small-scale PA infrastructure (e.g., visitor centers, control posts, trails etc.) and impacts associated with changing livelihood practices (e.g., certain extractive practices or changes in land use). In both cases, environmental impacts are expected to be localized and preventable through responsive mitigation measures. Given the "demand-driven" nature of the project, some specific areas and respective project interventions will not be confirmed until project implementation (primarily as related to the PA management and associated livelihoods component). In response, an environmental management plan (EMP) has been developed that will ensure that potential future adverse impacts will be identified and addressed in compliance with the Bank's Environmental Assessment, Cultural Property, Involuntary Resettlement and other safeguard policies. The project's stakeholders have been consulted during the development of the environmental and social assessment and the process framework through a series of project preparation workshops. These stakeholders will also continue to be consulted during project implementation, through their involvement in key project activities and components, as to be reflected in the Project Implementation Plan and annual work plans 10. List of factual technical documents: 11. Contact Point: Task Manager Garry Charlier (MSN I6-601) The World Bank 1818 H Street, NW Washington D.C. 20433 9 PID Telephone: 202-473-5676 Fax: 202-522-3540 12. For information on other project related documents contact: The InfoShop The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 458-5454 Fax: (202) 522-1500 Web: http:// www.worldbank.org/infoshop Note: This is information on an evolving project. Certain components may not be necessarily included in the final project.