PROJECT INFORMATION DOCUMENT (PID) APPRAISAL STAGE Report No.: PIDA731 Public Disclosure Copy Project Name Environmental Land Management and Rural Livelihoods Project (P122694) Region EUROPE AND CENTRAL ASIA Country Tajikistan Sector(s) General agriculture, fishing and forestry sector (65%), General water, sanitation and flood protection sector (15%), Public administ ration- Agriculture, fishing and forestry (12%), Public administration- Water, sanitation and flood protection (8%) Lending Instrument Specific Investment Loan Project ID P122694 Focal Area Land degradation Borrower(s) Ministry of Finance Implementing Agency Committee on Environmental Protection Environmental Category B-Partial Assessment Date PID Prepared/Updated 06-Feb-2013 Date PID Approved/Disclosed 09-Feb-2013 Estimated Date of Appraisal 06-Feb-2013 Completion Estimated Date of Board 28-Mar-2013 Public Disclosure Copy Approval Decision I. Project Context Country Context Tajikistan has enjoyed relative political stability and has had steady economic growth since 1997, with real GDP growth of 7.4% in 2011. The agricultural sector accounts for around 24% of GDP (average for 2000-2010, World Bank, 2011). Much of the growth in 2011was driven by external factors including increased remittances, a good cotton harvest in response to high world cotton prices and increased export earnings from aluminum in response to high world aluminum prices. Despite an improved fiscal position in 2011, the government's capacity to respond to adverse events remains limited. Some structural reforms have been undertaken in the agriculture, energy, transport and private and financial sectors, but these reforms need to be accelerated. Tajikistan still faces seasonal energy shortages and periodic food insecurity. Although over a million Tajik citizens have escaped poverty and social conditions have improved, low agricultural productivity and rudimentary safety nets have left the 45% living below the poverty line vulnerable to shocks and stresses. Tajikistan is rated as the most vulnerable to climate change impacts of the 28 countries in Page 1 of 4 Europe and Central Asia (ECA); a function of its high exposure and sensitivity to climate change impacts coupled with very low adaptive capacity. II. Sectoral and Institutional Context Public Disclosure Copy Tajikistan has an area of some 141,000 km2 (14.1 million ha) of which about 90% is considered upland and mountainous. More than two thirds of the population is rural and dependent on 4.6 million ha of agricultural land, the majority of which is rain-fed pasture. Only about 850,000 ha are arable land, of which some 500,000 ha are irrigated and under rotation between cotton and cereal crops. Wheat, potatoes and horticulture with few significant irrigation systems and extensive pasture areas characterize upland agro-ecosystems. Irrigated cotton in rotation dominates lowland systems. The agricultural sector accounts for 64% of employment, and is generally characterized by low productivity. Environmental degradation and unsustainable use of natural resources are important constraints, and the country’s predominantly mountainous terrain makes it particularly vulnerable to natural disasters. Mono-cropping and improper land use practices, such as wasteful irrigation methods and inadequate drainage, are associated with soil degradation and stagnating yields, especially in lowland areas. Pasture degradation, due in part to overgrazing and poor stocking practices, is an important threat. In upland areas, the conversion of steep slopes to cereal production has contributed to land degradation. Chronic energy shortages have also resulted in increased burning of organic matter and vegetation that would otherwise be available as fertilizer or ground/ tree cover. Other land uses affected by degradation include rain-fed cropping and forests (CDE, 2011). Climate variability and change are likely to pose additional and significant risks, particularly for those pursuing subsistence agriculture or pastoralism, and only reinforce the need to follow sound land resource management principles. Long-term meteorological records indicate that the mean temperature in Central Asia has been rising at a rate of 1°C to 2°C over the last 100 years (IPCC 2007). For Tajikistan, current predictions indicate that overall temperatures will increase by about 0.1°C-0.2°C per decade, with some models predicting up to 2.0°C increase in winter temperature by 2050. While precipitation levels have not shown significant increase between 1940 and 2000, the Public Disclosure Copy accelerated melting of glaciers has been well documented in recent years (Hydromet, 2008). Even under the most conservative scenarios, in the long-term precipitation is anticipated to decrease and the frequency and severity of extreme events such as droughts, floods, mudslides, etc., are expected to increase. While there has been a significant change in the rural sector with the break-up of collective farms into family and individual farms, this has often resulted in a drop in skills at the family farm level. Transformation of land management practices at the local level is required to better deal with the range of challenges. Widespread adoption of sustainable land and water management strategies and practices for agro-ecosystems will help farmers and communities to address these issues, and adapt, as well as become more resilient, to climate change by improving local livelihoods and food security, and restoring productive natural resources. III. Global Environmental Objective(s) The overall Project Development Objective (PDO) and Global Environmental Objective (GEO) is to enable rural people to increase their productive assets in ways that improve natural resource management and resilience to climate change in selected climate vulnerable sites IV. Project Description Component Name Page 2 of 4 Rural Production and Land Resource Management Investments Knowledge Management and Institutional Support Public Disclosure Copy Project Management and Coordination V. Financing (in USD Million) For Loans/Credits/Others Amount BORROWER/RECIPIENT 0.00 Global Environment Facility (GEF) 5.40 Local Communities 2.03 Strategic Climate Fund Grant 9.45 Total 16.88 VI. Implementation The project follows the concept of community-driven development with community-based organizations taking responsibility for the choice, design and management of rural investments and resource management plans. Experienced, locally based NGOs will facilitate community mobilization, participatory planning, and rural investment planning and implementation. Similarly, facilitation support will be contracted for the preparation of pasture and on-farm water management plans, which will be operated at larger scales of operation than the rural production investments. The contracted NGOs will coordinate with local government and supporting organizations to provide these services as needed. Given the project's emphasis on environmental land management and climate change resilience, the Committee for Environmental Protection (CEP) with its mandate for natural resource management and climate change policy, as well as environmental awareness raising and environmental monitoring, will serve as the project's implementing agency. An Implementation Group (IG) Public Disclosure Copy established within the CEP, comprising existing CEP staff and contracted technical assistance, will have responsibility for project management and coordination functions. The IG will prepare overall project work plans and budgets, update operational manuals, facilitate inter-ministerial coordination, and carry out project administration (e.g., financial management, procurement, specialist recruitment, monitoring, evaluation and reporting). The IG will report through the CEP to the respective Deputy Prime Minister. VII. Safeguard Policies (including public consultation) Safeguard Policies Triggered by the Project Yes No Environmental Assessment OP/BP 4.01 ✖ Natural Habitats OP/BP 4.04 ✖ Forests OP/BP 4.36 ✖ Pest Management OP 4.09 ✖ Physical Cultural Resources OP/BP 4.11 ✖ Indigenous Peoples OP/BP 4.10 ✖ Involuntary Resettlement OP/BP 4.12 ✖ Safety of Dams OP/BP 4.37 ✖ Projects on International Waterways OP/BP 7.50 ✖ Page 3 of 4 Projects in Disputed Areas OP/BP 7.60 ✖ Public Disclosure Copy VIII.Contact point World Bank Contact: Angela G. Armstrong Title: Senior Operations Officer Tel: 458-0975 Email: aarmstrong@worldbank.org Borrower/Client/Recipient Name: Ministry of Finance Contact: Safarali Najmiddinov Title: Minister Tel: (992-372) 21-14-17 Email: min_fin@tojikiston.com Implementing Agencies Name: Committee on Environmental Protection Contact: Talbak Salimov Title: Chairman Tel: 992-37-236-40-59 Email: muhit@hifzitaliat.tj IX. For more information contact: The InfoShop The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 458-4500 Public Disclosure Copy Fax: (202) 522-1500 Web: http://www.worldbank.org/infoshop Page 4 of 4