PROJECT INFORMATION DOCUMENT (PID) APPRAISAL STAGE Report No.: PIDA335 Public Disclosure Copy Project Name Integrated Coastal Zone Management (P121271) Region MIDDLE EAST AND NORTH AFRICA Country Morocco Sector(s) General agriculture, fishing and forestry sector (50%), General water, sanitation and flood protection sector (50%) Lending Instrument Specific Investment Loan Project ID P121271 Focal Area International waters Borrower(s) Ministry of Energy, Water, Mining and Environment, Ministry of Finance, Ministry of General Affairs and Governance Implementing Agency Agence pour le Developpement Agricole (ADA), MINISTRY OF AGRICULTURE AND MARINE FISHERIES, Ministry of Tourism and Handicrafts, High Commission for Water, Forestry, and the Fight Against Desertification Environmental Category B-Partial Assessment Date PID Prepared 21-Dec-2011 Estimated Date of Appraisal Completion 05-Mar-2012 Estimated Date of Board Approval 17-May-2012 Decision I. Project Context Country Context Morocco’s population is largely concentrated in the coast and plains areas of the country. It is also highly urbanized as 56% of the population lives in cities- cities that are mainly along the coast. This concentration of people is understandable given the nature of the climate and because Morocco has a long coastline of 3,500 km, which includes 500 km by the Mediterranean Sea. The economy of the country is therefore dependent on coastal zones and related ecosystems that have a high potential to provide food, and employment from tourism, agriculture, fisheries and other natural-resource based activities. With its strategic position and rich natural resources, the Mediterranean coast of Morocco has therefore been recognized as a priority target for future development by the Government of Morocco. Since 1999, a series of coastal initiatives and programs of national significance have been launched, including the Royal Initiative for the Development of the Eastern Region Public Disclosure Copy (2003) and the Program of Development of the Nador Lagoon (2008). The Eastern region is thus considered a driver of cross-sectoral development for Morocco. The importance of the coast to Morocco’s economy, and the associated increase in population density and urbanization in the coastal zone, has come at a cost to the environment. And this impact has the potential to significantly increase natural resource use conflicts in the future. As an example, sand mining for construction material for use in urban infrastructure, and sewage and solid waste disposal has become major environmental issues in the coast. Additionally, conflicting uses of natural resources in the coast have resulted in salinization of aquifers, water supply issues, loss of biodiversity, and ecologically sensitive areas. For example, forest cover has been reduced to only 6% of the land area of the province of Nador, and losses continue at more than 1,000 hectares of forest annually. Coastal ecosystems along the Nador Lagoon and Moulouya River estuary are under particular pressure of economic development and of coastal erosion ( Khattabi and Bellaghmouch, 2009. Vulnerability of coastal ecosystems in Northeast of Morocco to shoreline erosion and sea level rise. IOP Conf. Ser.: Earth Environ. Sci. 6 352025), and impacts there are more broadly felt because of the sensitive nature of the environment and areas of international biodiversity significance. Impacts on the coast and coastal resources predicted to arise from future climate change are likely to aggravate existing natural resource conflicts, biodiversity loss, infrastructure construction and maintenance costs, and livelihoods of coastal residents. An article by Snoussi, Ouchani, and Niazi (October 23, 2007) in Estuarine, Coastal and Shelf Science outlined this potential impact as follows: “The eastern part of the Mediterranean coast of Morocco is physically and socio-economically vulnerable to accelerated sea-level rise, due to its low topography and its high ecological and touristic value. Results indicate that 24% and 59% of the (coastal) area will be lost by flooding at minimum and maximum inundation levels, respectively. The most severely impacted sectors are expected to be the residential and recreational areas, agricultural land, and the natural ecosystem. Shoreline erosion will affect 50% and 70% of the total (coastal) area in 2050 and 2100, respectively…”. This prediction is supported by a recent World Bank study on the adaptation of fisheries to climate change in Morocco which suggests that some of the impacts of climate change on coastal areas are already being felt, and more are expected in the medium to long term. Location of new, and maintenance of existing, urban and rural infrastructure, identification of long term sustainable land uses, and sitting of tourist infrastructure will all need to recognize how the coast topography and capability will change with future climate, including rising sea levels. The vulnerability and potentials of adaptation of various sectors in the EMC has been addressed by the three year project (2007-2010) Adaptation to Climate change in Morocco funded by other donors (Khattabi, 2010. ACCMA synthesis report, 180pp). Tourism development is driven by the ambitious goals of the Plan Azur, fisheries activities are developed and encouraged by the Ministry of Agriculture and Fisheries’ Département de la Peche Maritime, coastal development is fostered by municipalities, but each activity’s impact is not necessarily shared or understood by decision-makers that champion the other sectors. Most beaches of the EMC are losing their quality for tourism attraction because of waste disposals and natural scenery degradation (Khattabi A, A.T. Williams & A. Ergin, 2011. Assessment of quality and attraction of the sandy beaches of Nador province – Morocco. In Bayed A. (Ed.). Travaux de l'Institut Scientifique, Rabat, série générale, n°6, pp : 59-64). Despite the fact that this space is managed by many state sectoral agency policies, the implementation of the various policies -independent from one another- is often not very efficient and sometimes contradictory. What is needed is an integrated approach to management in which all relevant government sectors work together, in a transparent and decentralized way, with coastal residents and stakeholders. The objective of Public Disclosure Copy this locally-based management is to ensure that environmentally and socially sustainable economic development occurs in this most sensitive of areas.F ortunately, a model for this type of management, known as Integrated Coastal Zone Management (ICZM) already exists. The approach is also stated in the Moroccan draft law on Zoning, Protection, Development and Conservation of Coastal Zones (also known as the ICZM bill). ICZM evolved over time both within the Bank and outside to address almost uniform failure of single sector management techniques to produce measurable benefits in the coastal zone. Why? Because the coastal zone is unique in the diversity of habitats present and their inter-linkages. Managing one sector like agriculture without consideration of coastal and marine fisheries almost always results in damage to the economic value of the fishery. Managing terrestrial forests in the headwaters of rivers discharging through coastal areas and into the ocean without consideration of the wetlands, marshes, mangrove areas and nearshore aquatic environments often leads to unexpected and detrimental impacts on biodiversity, growth and production in coastal wetlands, reduction in fish biomass, impacts on biodiversity, and so on. The juxtaposition of terrestrial, freshwater, brackish and marine environments in so small an area means that coastal zones are just too complex to be managed sector by sector. ICZM requires that all development sectors such as agriculture, fisheries, tourism, forestry, public works, local government, etc. plan and integrate their annual work programs to be complementary and to recognize the very real possibility of “off-site impacts”. The World Bank has guidelines (Lundin and Post, 1996 and Hewawasam, 2002) that direct its work in the coastal zone, as do almost all developed country and regional organizations such as the European Union. These guidelines link development to sustainable management of ecologically sensitive and protected/conservation areas, promote co-management of resources between government and local stakeholders, and link management by government through cooperation of sectors. The most important is that ICZM approach has been successfully applied through World Bank projects with very positive results in several countries, such as, China, Indonesia, and Tanzania. The Project has a regional focus and fits within the larger “Sustainable MED” program. The countries riparian to the Mediterranean Sea face common and interlinked problems of managing related natural resources. This Large Marine Ecosystem (LME) is very sensitive to land-based impacts related to urban and industrial pollution, solid waste degradation of the quality and amount of freshwater input, and resulting loss of coastal habitat and marine and terrestrial resources- particularly fisheries. The Mediterranean countries have responded to different challenges through various national and regional initiatives. The regional initiatives include: the Barcelona Convention and UNEP-MAP Program, the Mediterranean Technical Assistance Program (METAP), the Strategic Partnership for the Mediterranean Sea Large Marine Ecosystem (MedPartnership), EC funded LIFE, SMAP and Horizon 2020 Programs, and recently the Union for the Mediterranean (UFM). These initiatives play a key role in helping develop national and regional capacity and channeling investments towards improved resources management. But these initiatives, as ambitious and beneficial as they are, do not sufficiently or sustainably address major freshwaer conflicts and environmetnal changes to the marine, coastal and inland watersheds that are likely to arise because of predicted climate change. Thus the Sustainable MED program (Mediterranean Sustainable Development Program), supported by the GEF and implemented by the World Bank, takes the next step in addressing the sustainability of natural resources base in the Mediterranean Sea. This Kingdom of Morocco Integrated Coastal Zone Management Project (The Project) is also supported by the GEF, which sees its investment as helping the Government of Morroco to meet its obligations under Sustainable MED. The Project therefore promotes environmentally and Public Disclosure Copy socially sustainable development in the coast as a way of enhancing protection of biodiverstiy, ecologically sensitive areas such as RAMSAR sites, and ensuring that coastal resources are managed both for the benefit of the country and for the overall good of the countries bordering the Mediterraean Sea. The Project will contribute to the Trans-boundary Action Plan and the Strategic Action Programs within the Sustainable MED program by strengthening coastal communities’ resilience to climate change and also to regional efforts to address declining biodiversity and fisheries. The project will focus on the Mediterranean coast to "enhance and accelerate the implementation of trans-boundary pollution reduction, improved water resources management, and biodiversity conservation measures in priority hotspots and sensitive areas of selected countries of the Mediterranean basin”. The Project investment is mainly local and within the Morrocan Mediterranean coast. It supports coastal development within the Sustainable MED framework through four general types of investment, namely: i) Promotion of local resource use planning through ICZM methodology; ii) Linking ICZM methodology, climate change; and biodiversty preservation to the national economic development processes; iii) Piloting real- world examples of how sustainable development would work in the coast; and iv) creating a project implementaton structure that serves both the project and as an example of how the coastal zone can be managed after the Project finishes. This would be achieved in the project by “integration” of government management (both technical and political), sharing of resource management by promoting co-management with local stakeholders, and ensuring that development initiatives within the coast are transparent and can be accommodated within local ICZM plans. II. Sectoral and Institutional Context The Project complements the vision of King Mohammed VI for rapid and sustainable growth, improved governance, poverty eradication, and better social conditions, as implemented through the government program for the period 2008-2012. This program includes actionsto support integrated coastal zone management policies and planning, in particular: i) the Development Program for the Nador Lagoon, including conservation of its unique natural heritage; ii) establishment of a large-scale water purification station in Nador in June, 2010; iii) approval by the Council of Government and Council of Ministers of the draft law on Zoning, Protection, Development and Conservation of Coastal Zones (ICZM bill, which in its last step of approval by Parliament); and iv) membership in a series of international agreements in support of coastal zone management and biodiversity conservation (i.e. the Regional Seas Barcelona Convention for the Protection of the Marine Environment and the Coastal Region of the Mediterranean, the Ramsar Convention for wetland conservation, and the Convention on Biological Diversity). This project builds on the good first steps already taken by the Government but aims to demonstrate through a series of pilot projects the benefits that can be derived from a more integrated approach. Opportunities exist for this project to complement the efforts of national stakeholders, and projects funded by other donors. The outcomes of some of these projects could directly serve the purpose of this project, particularly, the ICZM action plans developed for each of the four selected project areas in Nador, Driouch, and Berkane provinces under the Short and Medium-term Priority Environmental Action Programme (SMAP III) and recently updated to take into account climate change adaptation by the ACCMA project. The Program was financed by the European Union and aims to promote the sustainable utilization of Mediterranean coastal zones through the elaboration of the Action Plan for ICZM. In addition, two Bank projects under preparation are of particular relevance: Support to small-scale artisanal fishermen cooperatives (Japanese Social Development Fund), and a study on adaptation of the fisheries sector to climate change in the EMC (Khattabi A & G. Jobbins, 2011. Vulnerability and adaptation of traditional fisheries to climate change. In Chuenpagdee R. (Ed.) World Small-Scale Fisheries Contemporary Visions. Eburon Academic Publishers. Pp: 63-80). The Project’s fisheries component is directly relevant to the Government of Morocco’s current emphasis on Public Disclosure Copy sustainable fisheries, which is embodied in the national strategy that was recently adopted to that end (The “Halieutis Strategy”). As part of Halieutis, the importance of sustainability is highlighted, as is the need to anticipate and adapt to the growing threats of climate change. The ICZM project also complements ongoing work under the government’s national agricultural investment strategy, the Plan Maroc Vert (PMV), which has two tracks: Pillar I, targeting commercial farmers and integration into the world economy, and Pillar 2, which includes subsistence farmers and strengthening domestic markets and is complementary to the agricultural climate resilience measures planned for this project. Overall investment under Pillar 2 will be US$ 2.37 billion from 2008 to 2020. III. Global Environmental Objective(s) The objective of the project is to pilot the application of integrated coastal zone management (ICZM) approach in the project areas on the eastern Mediterranean coast of Morocco. ICZM implemented at local level by all users of the coastal resources will leverage rural pollution reduction and protection of biodiversity and ecologically sensitive areas. IV. Project Description Component Name Incorporating ICZM and climate change adaptation in provincial and local development planning Improving coastal resource conservation and local livelihoods through co-management Project management and M&E V. Financing (in USD Million) For Loans/Credits/Others Amount BORROWER/RECIPIENT 20.00 Global Environment Facility (GEF) 5.18 Total 25.18 VI. Implementation On behalf of the Government of Morocco, the Ministry of Energy, Mines, Water and the Environment (MEMWE), through its Department of the Environment, will be the Project Implementing Entity responsible for overall project implementation and wherein the Project Management Unit will Public Disclosure Copy be hosted. Project implementation will also involve a Technical Coordination Committee (TCC) chaired by the Ministry of Energy, Mines, Water and the Environment Technical Coordination Committee. The Technical Coordination Committee (Comité de Coordination Technique) which has been established for the purpose of ICZM under the chairmanship of MEMWE will serve as a technical forum for MEMWE, High Commissioner for Water, Forestry and the Fight Against Desertification, Ministry of Agriculture and Maritime Fisheries, National Aquaculture Development Agency, Agriculture Development Agency and Ministry of Tourism in which such entities shall harmonize their actions regarding the implementation of the Project, share knowledge on Project implementation, and ensure that their annual work plans and budgets are well integrated with one another. Project Management Unit. A project management unit (PMU) will be established within the Department of the Environment of the Ministry of Energy, Mines, Water and the Environment. The PMU will have both the responsibility for day-to-day implementation of the project and overall coordination for project implementation, with support, guidance and feedback from the Ministry of General Affairs and Governance for higher level inter-institutional issues, and from the Technical Coordination Committee on inter-agency coordination and cooperation, work planning, and budgeting. Operational procedures. The proposed project would be implemented according to detailed procedures defined in the Operations Manual. 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 ✖ Projects in Disputed Areas OP/BP 7.60 ✖ Public Disclosure Copy VIII.Contact point World Bank Contact: Li Song Title: Environmental Specialist Tel: 473-3488 Email: sli@worldbank.org Borrower/Client/Recipient Name: Ministry of Energy, Water, Mining and Environment Contact: Title: Tel: (212-37) 688-857 Email: rattal2005@yahoo.fr Name: Ministry of Finance Contact: Title: Tel: Email: Name: Ministry of General Affairs and Governance Contact: Title: Tel: Email: Implementing Agencies Name: Agence pour le Developpement Agricole (ADA) Public Disclosure Copy Contact: Title: Tel: (212-661) 584-068 Email: med.elguerrouj@ada.gov.ma Name: MINISTRY OF AGRICULTURE AND MARINE FISHERIES Contact: Title: Tel: Email: Name: Ministry of Tourism and Handicrafts Contact: Title: Tel: Email: Name: High Commission for Water, Forestry, and the Fight Against Desertification Contact: Title: Tel: Email: 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 Public Disclosure Copy