Document of The World Bank FOR OFFICIAL USE ONLY Report No: 73802-NA PROJECT PAPER ON A PROPOSED ADDITIONAL GRANT FROM THE GLOBAL ENVIRONMENT FACILITY TRUST FUND IN THE AMOUNT OF US$ 1.92 MILLION TO THE REPUBLIC OF NAMIBIA FOR A NAMIBIAN COAST CONSERVATION AND MANAGEMENT PROJECT November 29, 2012 This document is being made publicly available prior to Board consideration. This does not imply a presumed outcome. This document may be updated following Board consideration and the updated document will be made publicly available in accordance with the Bank’s policy on Access to Information. CURRENCY EQUIVALENTS Exchange Rate Effective {November 14, 2012} Currency Unit = Namibian Dollar 1NAD = US$ 0.1142 US$ = NAD 8.7556 FISCAL YEAR April 1 – March 31 ABBREVIATIONS AND ACRONYMS BCLME Benguela Current Large Marine Ecosystem CBD Convention on Biological Diversity DEA Director of Environmental Affairs EMA Environment Management Act EMP Environmental Management Plan GEF Global Environment Facility GEO Global Environment Objective GRN Government of the Republic of Namibia ICZM Integrated Coastal Zone Management IP Implementation Performance ISDS Integrated Safeguard Data Sheet ISR Implementation Status Report M&E Monitoring and Evaluation MAWF Ministry of Agriculture, Water and Forestry MEC Ministry of Education and Culture MET Ministry of Environment and Tourism MFMR Ministry of Fisheries and Marine Resources MLR Ministry of Lands and Resettlement MME Ministry of Mines and Energy MoD Ministry of Defense MoJ Ministry of Justice MRLGHRD Ministry of Regional and Local Government, Housing and Rural Development MSS Ministry of Safety and Security MWT Ministry of Works and Transport NACOMA Namibian Coast Conservation and Management Project NBSAP National Biodiversity Strategy and Action Plan NPCM National Policy on Coastal Management NIMPA Namibian Islands Marine Protected Area NPC National Planning Commission NDPs National Development Plans OP/BP Operational Policies/Bank Procedures ORAF Operational Risk Assessment Framework PCF Park Consultative Fora PCO Project Coordinating Office PDO Project Development Objective ii PF Process Framework PIM Project Implementation Manual SC Steering Committee Vice President: Makhtar Diop Country Director: Asad Alam Sector Manager: Jonathan S. Kamkwalala Sector Director: Jamal Saghir Task Team Leader: Claudia Sobrevila iii REPUBLIC OF NAMIBIA NAMIBIAN COAST CONSERVATION AND MANAGEMENT PROJECT CONTENTS Project Paper Data Sheet Project Paper I. Introduction 1 II. Background and Rationale for Additional Financing 1 III. Proposed Changes 6 IV. Appraisal Summary 11 Mandatory Annexes 1. Revised Results Framework and Monitoring Indicators 14 2. Operational Risk Assessment Framework 20 3. Incremental Cost Analysis 22 iv REPUBLIC OF NAMIBIA NAMIBIAN COAST CONSERVATION AND MANAGEMENT PROJECT ADDITIONAL FINANCING DATA SHEET Basic Information - Additional Financing (AF) Country Director: Asad Alam Sectors: General agriculture, fishing Sector Manager/Director: Jonathan S. and forestry sector (100%) Kamkwalala Themes: Environmental policies and Team Leader: Claudia Sobrevila institutions (50%); Biodiversity (50%) Project ID:P128511 Environmental category: B-Partial Expected Effectiveness Date: Assessment 02/06/2013 Expected Closing Date: 12/31/2015 Lending Instrument: Grant Joint IFC: N/A Additional Financing Type: Scale up Joint Level: N/A Basic Information - Original Project Project ID: P070885/ P128511 Environmental category: B, Partial Assessment Project Name: Namibian Coast Closing Date: 12/31/2012 Conservation and Management Project Lending Instrument: Grant Joint IFC: N/A Joint Level: N/A AF Project Financing Data [ ] Loan [ ] Credit [x] GEF TF Grant [ ] Guarantee[ ] Other: AF Financing Plan (US$m) Source Total Amount (US $m) Total Project Cost: 7.79 Cofinancing: 5.87 Borrower: Total Bank Financing: 1.92 IBRD GEF 1.92 1.92 New Recommitted Client Information v Recipient: National Planning Commission Responsible Agency: Ministry of Environment and Tourism Contact Person: Teofilus Nghitila Telephone No.:+264-61-2842185 Fax No.: +264-61-2842216 Email:tnghitila@yahoo.com AF Estimated Disbursements (Bank FY/US$m) FY 2013 2014 2015 2016 Annual 0.22 0.70 1.0 0.0 Cumulative 0.22 0.92 1.92 1.92 Project Development Objective and Description Original project development objective: To assist the Recipient to conserve, use sustainably and mainstream biodiversity of the Namibian Coast. The revised objective under this additional financing remains the same. Project description: The project would support four components: a) Legal, Institutional, Policy and Planning Framework for Integrated Coastal Zone Management: This component supports strategic studies and consultations to support the implementation of the National Policy on Coastal Management (NPCM). b) Targeted Capacity-Building for Integrated Coastal Zone Management: This component supports awareness raising and capacity building activities to promote an integrated coastal management approach in development activities. c) Targeted Investments in Critical Ecosystems for Biodiversity Conservation and Sustainable Use: This component supports the implementation of the two newly created parks, Dorob National Park and Namibian Islands Marine Protected Area (NIMPA). d) Project Management: This component supports the functioning of the Project Coordination Office (PCO). Safeguard and Exception to Policies Safeguard policies triggered: Environmental Assessment (OP/BP 4.01) [X]Yes [] No Natural Habitats (OP/BP 4.04) [X]Yes [] No Forests (OP/BP 4.36) [ ]Yes [X] No Pest Management (OP 4.09) [ ]Yes [X] No Physical Cultural Resources (OP/BP 4.11) [ ]Yes [X] No Indigenous Peoples (OP/BP 4.10) [ ]Yes [X] No Involuntary Resettlement (OP/BP 4.12) [X]Yes [] No Safety of Dams (OP/BP 4.37) [ ]Yes [X] No Projects on International Waterways (OP/BP 7.50) [ ]Yes [X] No Projects in Disputed Areas (OP/BP 7.60) [ ]Yes [X] No Does the project require any waivers of Bank policies? [ ]Yes [ X] No Have these been endorsed or approved by Bank management? [ ]Yes [ ] No vi REPUBLIC OF NAMIBIA NAMIBIAN COAST CONSERVATION AND MANAGEMENT PROJECT ADDITIONAL FINANCING I. Introduction 1. This Project Paper seeks the approval of the Executive Directors to provide an additional grant in an amount of US$ 1.92 million from the GEF Trust Fund to the Republic of Namibia for the Namibian Coast Conservation and Management Project (NACOMA) (P128511). The original Namibian Coast Conservation and Management project (NACOMA) is funded through a US$ 4.9 million grant from the Global Environment Facility (GEF) to the Republic of Namibia. It was approved in August, 2005 and is closing in December 2012. The combined Project Development Objective (PDO) and Global Environment Objective (GEO) is to assist the Recipient to conserve, use sustainably and mainstream biodiversity of the Namibian Coast. 2. The proposed additional financing will support activities that scale up a project’s impact and development effectiveness of a well-performing project. It will finance additional activities required to implement and disseminate the recently approved National Policy on Coastal Management for Namibia (NPCM) and assist the government to set in place the programs and activities to manage effectively the two protected areas that were established in 2009 and 2010 with support from NACOMA. This additional financing has been requested by the Government of Namibia to the GEF and the Bank and a US$ 1.92 million GEF proposal was approved by the GEF Council in June 2012. Overall performance regarding outcome and implementation of the on-going project over the last 24 months in the Implementation Status Report (ISR) is rated as “Satisfactory�. The PDO and GEO will not be changed. II. Background and Rationale for Additional Financing A. Country Context 3. Namibia is a middle-income country. The greater part of Namibia consists of arid and semi- arid rangelands with little to no permanent surface water. Namibia is divided into six geographical regions: a) the Central Plateau where the majority of Namibia’s population and economic activity is; b) the Namib desert; c) the Escarpment where vegetation ranges from dense woodlands to shrubby areas; d) the Bushveld with flat and sandy soils covered with savannah vegetation; e) the Kalahari desert which is home to the Succulent Karoo Biome, an area with high proportions of endemic species; and f) the Namibian Coastal and Marine region. These regions support diverse ecosystems, habitats and abundant fauna and flora. 4. Namibia's coastline extends some 1,570 km, from the mouth of the Orange River on the South African border, to the mouth of the Kunene River on the Angolan border. Namibia's ocean area has one of the highest primary production rates in the world and provides critical renewable natural resources for the country. It spans an area of 580,000 km2 and falls within 1 the Benguela Current Large Marine Ecosystem (BCLME). Shared with Angola and South Africa, this current supports vast populations of commercially valuable fish species. The inshore marine environment provides nursery habitats for many types of marine organisms. The hyper-arid Namibian coastal ecosystem is home to two globally important biomes (the Namib Desert and Succulent Karoo biomes) and a significant and unique array of biological and ecological diversity, including uniquely adapted plants and animals, rich estuarine fauna and a high abundance and diversity of migratory shorebirds and seabirds. 5. The coast supports several internationally important coastal wetlands, such as the Kunene River Mouth, Cape Cross Lagoons, Mile 4 Salt Works, the 30 kilometers of beach between Swakopmund and Walvis Bay (including the Swakop River Mouth), Walvis Bay Wetlands, Sandwich Harbor, Lüderitz Lagoon and the Orange River Mouth, some of which are Ramsar sites and others are Important Bird Areas. The wetlands at Walvis Bay, which include the Kuiseb River estuary, extend over some 35 to 40 km² and support migratory birds as well as more than half of Southern Africa's flamingos. The Benguela system is one of the most productive systems on the planet. Endemic dolphins, breeding Southern Right Whales, foraging threatened sea turtle species and many important seabird and shorebird species focus on the Namibian marine environment. 6. In 2004, the Government of the Republic of Namibia (GRN) launched the Vision 2030, a 30- year planning framework for sustainable development. The framework promotes the development of natural capital through strategies for the sustainable, equitable and efficient use of natural resources, maximizing comparative advantages and reducing inappropriate resource use practices. Vision 2030 prioritizes coastal governance under goal number 7: "Conservation and management of biological diversity along the coastal region of Namibia". To this end, the Vision aims to ensure open, diverse, stable, and productive wetlands, coastal and marine eco-systems by 2030. To realize the provisions of Vision 2030 and guide national development, the National Planning Commission (NPC) has developed National Development Plans (NDPs). The NPC coordinated the formulation of the Third National Development Plan (NDP3) 2007/2008 - 2011/2012 in 2007 and the NPD4 2012/13 to 2016/17. 7. The NDP3 supported ongoing decentralization and identified key environmental concerns such as sustainable management of scarce water resources, biodiversity conservation, pollution and waste management, sustainable energy development, capacity building, and sustainable livelihood. The NDP4, approved in July 2012, continues to consider the economic value of Namibia's natural capital. The NDP4 explicitly states that all elements of society, and businesses in particular, should support a precautionary approach to environmental challenges and alterations of the natural world contributing to climate change, undertake initiatives to promote greater environmental responsibility, and encourage the development and diffusion of environmentally friendly technologies. The proposed additional financing would directly support the emerging strategy of strengthening the country's capacity to address its most pressing development challenges. 2 B. Sectoral and Institutional Context 8. The GRN has made significant progress on its biodiversity agenda. The National Biodiversity Strategy and Action Plan (NBSAP) was a ten-year strategic plan of action for biodiversity conservation that ended in 2010. As an inter-sectoral plan coordinated by the Ministry of Environment and Tourism (MET), the NBSAP provided guidance for the implementation of the Convention on Biological Diversity (CBD) to which Namibia is a signatory. The NBSAP highlighted the need for support for currently under-protected key ecosystems of biodiversity importance, adequate input into the process of zoning, development of guidelines and environmental assessment of proposed aquaculture developments. It also offered the Ministry of Environment and Tourism (MET) the legal mechanisms for achieving the goal to develop management plans for the coastal parks. Namibia is currently formulating its second NBSAP and the proposed project would complement its outlined objectives. In 2007, the GRN passed an Environment Management Act (EMA) which provides the environmental framework legislation for Namibia. In February 2012, the GRN passed the EMA regulations. 9. Unsustainable coastal development, vegetation cover removal, expansion of urban areas, over-exploitation of marine living resources, uncontrolled tourism and mining activities, unsustainable abstraction of water from natural water basins, pollution, aqua-culture and alien invasive species are the main threats to the coastal and terrestrial ecosystems of the Namibian coast. Some of the identified challenges are: lack of coordination among key stakeholders/sectors and limited institutional capacity, limited awareness of coastal environmental issues, poor prevention/law enforcement capacity among stakeholders, poor land and water management and limited funding. 10. The Government recognizes that the coastal areas cannot be effectively managed in a sectoral manner. Management of activities on the coast has been guided by fragmented sectoral policies and sometimes ambiguous management mandates and responsibilities between and among the different decision-making authorities. Cross-cutting issues and activities that span different sectors present a challenge to management and often result in user conflicts, environmental degradation, and missed opportunities. 11. In 2005, the government requested support from the GEF/World Bank for the Namibian Coast Conservation and Management (NACOMA) project. The NACOMA project was the second World Bank supported operation in Namibia and has assisted the government to set up the legal framework to conserve and sustainably utilize the natural coastal resources of Namibia as a national and global public good. C. Rationale for Additional Financing 12. Overall performance regarding outcome and implementation of the on-going project over the last 24 months as rated in the Implementation Status Report (ISR) is “Satisfactory�. The NACOMA project is widely recognized as having made significant contributions to conservation and sustainable utilization of natural resources along Namibia's coast in a very 3 challenging context of competing demands on these resources and fragmented political authority to govern them. The NACOMA project has succeeded in putting in place a basic legal and institutional structure for coast resource management -- the Skeleton Coast park, the national coastal management policy, procedures for coordinating actions across ministries, levels of government, and with the private sector. This structure is still quite new, however (e.g., the NPCM was only approved by Cabinet on September 13, 2012) and the activities proposed under the additional financing are critically needed to ensure that the new laws, policies, and institutions are fully implemented. The additional financing will ensure that the results of the on-going operation are sustained in the future. This additional financing is critical to ensure that the enabling legislation of the NPCM is developed and that the integrated coastal management approach mandated in the NPCM are disseminated and incorporated in development activities. In addition, the protected areas established in the original project will require on the ground support to ensure their sustainability. The activities under the additional financing will help consolidate the results of the original project. Processing this additional GEF grant to an already well performing project will bring procedural and other cost-effectiveness gains for the recipient compared to processing a new operation. D. Status of Original Project 13. The original project (NACOMA) is a US$ 4.9 million Global Environment Facility (GEF) to the Government of the Republic of Namibia (GRN) and was approved in August, 2005. The GRN has contributed US$ 23.84 million dollars, in-kind, over the past six years supporting parallel programs, bringing the total program cost to US$28.74 million. It became effective in October, 2005 and the Mid Term Review was carried out from March 8 – 20, 2009. The project is closing in December 2012. 14. To date, cumulative GEF disbursements amount to US$4.89 million with only US$5,360 undisbursed from the grant (99.98% overall disbursement). The Project is being implemented by a Project Coordination Office (PCO) that houses the NACOMA team and that reports through the Director of Environmental Affairs (DEA) in the Ministry of Environment and Tourism (MET) to the Permanent Secretary of MET. 15. Overall performance regarding outcome (PDO) and implementation performance (IP) is rated as “Satisfactory� for the last 24 months. The Project is meeting most of its outcome targets with, for example, a current 97% increase in km² and number of terrestrial and marine ecosystems of biodiversity importance under effective management and 85% of coastal biodiversity better incorporated into planning, policy, institutions and investments at national, regional and local levels. There is no overdue audit. All key grant covenants have been complied with. Achievements to Date 16. One of the most significant outcomes of NACOMA is the preparation and the subsequent adoption of the National Policy for Coastal Management (NPCM) by Cabinet on September 13, 2012. The National Coastal Policy for Namibia provides a foundation for improving the 4 quality of life of coastal communities while maintaining the biological diversity and productivity of Namibia country’s coastal ecosystems. Namibia needs such a policy to guide management actions towards addressing coastal resource use and allocation and to promote a balance between development and conservation of its coastal and marine environment. 17. With support from the on-going operation, the government and the NACOMA team led a transparent and participatory process with many key stakeholders (private sector, other line ministries, communities and local governments) to develop the NPCM that began in early 2006 and resulted in the publication of a Coastal Policy Green Paper in July 2009 and a White Paper in December 2010. The project reviewed all coast-related policy, legislative and institutional frameworks in order to identify and prioritize areas for potential adjustment and harmonization. The NPCM for Namibia provides a framework for the institutionalization and implementation of a fundamentally new and integrated approach to coastal management in Namibia, namely Integrated Coastal Zone Management (also commonly referred to as Integrated Coastal Management or ICM) which is commonly defined as: “… a continuous and dynamic process that unites government and the community, science and management, sectoral and public interests in preparing and implementing an integrated plan for the protection and development of coastal ecosystems and resources .� 18. Another significant outcome of the on-going project is the proclamation of the Sperrgebiet National Park (SNP) in 2008, the Namibian Islands Marine Protected Area (NIMPA) in 2009 and Dorob National Park (DRB) in 2010. The NACOMA project supported the research, studies and consultation process that led to this result. With these protected areas, the government has been able to set aside in protected areas (PAs), a “mega park� the Namib Skeleton Coast National Park (NSCNP) in 2011 covering 10.754 million ha which is the 6th largest terrestrial park in the world and the largest in Africa. NACOMA also helped improve the governance of a number of other coastal PAs (Skeleton Coast Park (SCP), Cape Cross Seal Reserve (CCSR), Namib Naukluft Park (NNP), Sperrgebiet National Park (SNP), Sandwich Harbour Ramsar site and Walvis Bay Ramsar site. In addition, 4 park management plans (Skeleton Coast Park, Dorob National Park, Namib Naukluft Park and the Namibian Islands Marine Protected Area) were completed. A total of eleven (11) matching grants were funded to provide on-the-ground support for sustainable use of prioritized ecosystems as described in the approved management plans. A particularly innovative sub-project that was supported by the project is the Information Centre at Khorixas in Kunene Region which will provide information on the linkages between the Etosha National Park and the Skeleton Coast. 19. A project restructuring processed in 2011 included a revision of the Process Framework (PF). The OP/BP 4.12 on involuntary resettlement was not triggered when the project was prepared. It was only triggered during project implementation because of restriction of access to natural resources due to the proclamation of new terrestrial and marine protected areas in the project. An up-dated and improved PF was submitted by the Ministry of Environment and Tourism to the Bank on March 24, 2011 to include: a) reference to all terrestrial and marine protected areas to which the PF applies; b) a specific consultation process for marine protected areas; c) an update on the status of protected area management 5 plans; d) generic ToRs of proposed Park Consultative Fora (PCF); e) proposed regulations for the Dorob National Park, the new park created in 2010 along the Namib coast; and f) a monitoring plan. The PF was approved and disclosed in-country and at INFOSHOP on April 5, 2011 and a new Integrated Safeguard Data Sheet (ISDS) was approved and disclosed to reflect the applicability of OP 4.12. This PF does not need revisions as the location of project activities will be the same as the original project. The PF provides a description of the institutional arrangements through which the communities will participate in the management of the natural resources and monitoring as well as criteria and procedures to be followed in case of restriction of access to marine and terrestrial resources. 20. An extension of the closing date was processed on April 30, 2012 to change the closing date to December 31st, 2012. Foreseen Risk Factors 21. Approval of the NPCM by Cabinet which has proven to be a very slow process, was identified as a risk factor during the preparation of the on-going project. The reasons for the delays were the long participatory processes required to agree on the Green and White Paper; and to the fact that the Climate Change Policy was of a higher priority last year due to the flooding in the north and COP 17. In November 2011, MET finalized and launched the National Climate Change Policy (NCCP) that will support actions to reduce the vulnerability of Namibians and various sectors to the impacts of climate change and build capacities at all levels for implementation of climate change response activities. After the NCCP was passed, MET focused on NPCM. The NPCM will promote integrated and cooperative coastal governance. The NPCM outlines a vision for the coast that prioritizes sustainable development of coastal areas through equitable and integrated coastal management that balances conservation and economic development. 22. Another risk is changing government priorities that could happen during project implementation. While the NACOMA team is very committed and has adequate capacity to implement the required actions for good environmental coastal governance, it does not have the legal mandate to restrict illegal activities in the protected areas of the coast. Thus, ensuring that the institutional arrangements for coastal governance are agreed upon and implemented will be a key factor for the success of the whole project. The other activities proposed, such as strengthening the management of protected areas, do not pose any significant risk as these are activities that the Namibian government and the NACOMA team have good experience with. III. Proposed Changes 23. The activities under the additional financing have been designed within the structure of the ongoing project. Implementation will rely on the recipient’s existing capacity and existing project arrangements. The institutional, financial and procurement arrangements will follow the same procedures as the ongoing project. Also, the additional activities will not change the environment and social categories of the original project or trigger any new safeguard policies. 6 24. The proposed AF is fully consistent with OP/BP 13.20. As indicated above, the project has been satisfactory in the Implementation Status and Results (ISR) reports over the most recent 24 months for both implementation progress and achievement of development objectives. The project is in compliance with the key loan covenants, including audit and financial management reporting requirements. Project outcome indicators 25. The original project development objective is to assist the Recipient to conserve, use sustainably and mainstream biodiversity of the Namibian Coast. The PDO is not changed, however the indicator to measure whether the PDO was attained have been modified. Annex 1 shows the revision to the Results Framework and Monitoring. Below, is a table showing the proposed new indicators. Original Indicator Original target Changes with Revised target Comments AF PDO1 Increase in km2 100,103 km2 PDO1 Increase in ha and 10,010,300 ha Indicator was and number of terrestrial increased from 0 number of terrestrial and rephrased. It and marine ecosystems (10,010,300 ha) marine ecosystems of 5 PAs measured 2 of biodiversity biodiversity importance outcomes: the importance under 5 PAs legally protected. proclamation of new effective management by areas (increase of year 5 compared to Km2) and the baseline situation improved management which is now the second PDO. Also unit was changed from km2 to ha as it is the standard measurement that GEF uses. NEW N/A PDO 2 Increase in score 70 This new target is a of management subset of the first effectiveness for 2 PAs PDO. PDO2 Increase in the 18,975 PDO3 Increase in the 21,975 Indicator was unclear number of people number of people as it measured 2 engaged in sustainable engaged in sustainable outcomes, one is the use activities and the use activities supported increase in number of proportion of their by the project. people and two is the income derived from proportion of income. these studies by year 5 The second one was compared to baseline hard to measure and situation not meaningful so it was eliminated. 7 PDO 3 Coastal 47 1 PDO 4 Increase in the 53 This indicator was biodiversity related number of national, unclear and was aspects better regional and local plans simplified. incorporated into and strategies that planning, policy, incorporate biodiversity institutions and issues investments at national, regional and local levels by year 5 compared to baseline situation NEW N/A PDO 5. Direct project 25,000 of which The Bank new beneficiaries and 50% are female Results Framework Female beneficiaries template requires using this standard indicator. Components and Costs by component 26. The additional financing will support the same four basic components including a coordination component: 27. (1) Legal, Institutional, Policy and Planning Framework for Integrated Coastal Zone Management: This component supports strategic studies and consultations for the implementation of the National Policy on Coastal Management (NPCM). This component will finance: (a) A study and proposed enabling legislation for NPCM as well as an options paper for the NPCM governance and institutional arrangements. The associated participatory consultative process and documentation on the clarification of institutional mandates and enabling legislation of the NPCM will also be supported. (b) Preparation of new guidelines for regional and local government land-use plans that incorporate the Integrated Coastal Zone Management ICZM approach. At least two regional or local government land-use plans will be prepared using the guidelines. The NPCM has established the criteria to define and apply the ICZM approach, however it is critical for the project to apply the ICZM concept in land use and development plans within the regional, local and national government sectors. (c) Development and dissemination of methodologies and lessons learned on land rehabilitation, EIAs and good management for the coast that will also feed into the ensuing enabling ICZM legislation. This activity would develop best environmental practices guidelines to incorporate ICZM tools in the productive sector. Environmental Management Plans (EMPs) in coastal towns would be implemented in line with EMA and NPCM to control poor environmental management practices. 1 This number is taking into account the national, regional and local plans and strategies supported by the project that promote environmental and integrated coastal zone management approaches (18 national, 16 regional and 13 local plans or strategies). 8 Some of these towns are surrounded by PAs, hence the need for uniform improvement in environmental management. (d) Updating the report of the state of the environment of the Namibian Coast, the regional Sector Environmental Assessments and sustainable development decision- making tools that incorporate economic valuations, mapping, Geographic Information System (GIS) and environmental scenarios. The state of environment report would update regularly the biodiversity indicators for the coast. 28. (2) Targeted Capacity-Building for Integrated Coastal Zone Management: This component supports awareness raising and capacity building activities to promote an integrated coastal zone management approach in development activities. This component would finance the development of education materials and communication and training programs for national, regional and local key policy and decision makers to implement the ICZM approach through NPCM. (i.e., radio programs, press releases, documentaries, expos, talks, etc.). It would also support the implementation of recommended activities proposed in the Communication and Awareness and, Training and Capacity Building consultancies carried out under the on-going NACOMA project. 29. (3) Targeted Investments in Critical Ecosystems for Biodiversity Conservation and Sustainable Use: This component supports the implementation of the management plans of the two newly created parks, Dorob National Park and NIMPA (Namibian Islands Marine Protected Area). It will also support the development of an integrated land use plan in neighboring communal conservancies. The project will support targeted investments identified in the management plans completed under the first project through the provision of matching grants to the adjacent communities of the parks. The matching grants mechanism used in the first NACOMA project will be used and follow all the rules established in the project EMP to ensure that the activities are in line with the Bank’s Safeguard Policies. 30. (4) Project Management: This component supports the functioning of the Project Coordination Office (PCO). It will continue to support the day to day operation of a project implementation unit responsible for the following functions: a) administration; b) coordination; c) financial and audit management; d) procurement management; e) monitoring and evaluation; f) fundraising; and g) reporting. 31. The proposed AF disaggregated by component is the following: Costs by component (US$) Component Original Change with Revised Cost AF Cost Legal, Institutional, Policy 639,000 280,000 919,000 and Planning Framework for Integrated Coastal Zone Management 9 Targeted Capacity-Building 1,417,000 211,700 1,628,700 for Integrated Coastal Zone Management Targeted Investments in 1,459,000 1,340,000 2,799,000 Critical Ecosystems for Biodiversity Conservation and Sustainable Use Project Management 1,385,000 93,300 1,478,300 TOTAL 4,900,000 1,925,000 6,825,000 32. The closing date will be extended from December 31, 2012 to December 31, 2015 in order to complete ongoing and planned activities necessary to meet the Project’s development objectives. Disbursement categories and procedures 33. Below are the revised allocations of amounts under the disbursement categories. Category AF US$ (1) Goods, 1,131,700 consultants Services (including audit) and training (2) Matching Grants 700,000 (3) Operating 93,300 Total 1,925,000 Availability of co-financing 34. This additional financing is expected to be funded by a US$1.92 million GEF grant. In addition, the GRN has agreed, in a letter to the GEF dated October 16, 2012, to finance complementary activities supporting the objective of the grant in an amount of US$ 5.8 million. The MET has also shown its commitment by financing the transition phase and supporting the management and administrative costs of the NACOMA Project Coordination Office from May 1, 2012 until May 1, 2013. In addition, the four Regional Councils that are part of the ICZM Committee have also agreed to pay the office rental of NACOMA until May 1, 2013 and provide operational support of up to N$ 1.2 million (N$300,000 for each 10 Regional Council) for the same period. These funds have been critical to supporting the transition period between the original project and the additional financing. 35. The partnership between the Bank, the Government of Namibia through many line ministries and the private sector is an innovative and exciting approach to contribute to the conservation and management of coastal and terrestrial ecosystems in the Namibian coast through an integrated coastal zone management (ICZM) approach. IV. Appraisal Summary Economic and Financial Analysis 36. In the original project, there was no economic or financial analysis done as this is a GEF project and is not required to conduct such analyses. An incremental cost analysis is presented in Annex 3. Technical 37. NACOMA includes the development of an ICZM policy framework, development and updating of coastal profiles, capacity building activities and on-the ground investments, which have been designed and implemented by qualified national and international professionals, thus ensuring a high level of technical soundness and quality assurance. The methodology used to develop the National Policy for Coastal Management (NPCM) followed a strict academic approach and at the same time participatory process to ensure that different views were taken into account. The first project has delivered several management plans in different protected areas along the coast. These plans will guide the design and requirements for this additional financing. Also, the Communication and Awareness Strategy and the Training and Capacity Building Strategy prepared under the first project will strengthen the delivery of awareness raising activities in the additional financing. No additional technical studies are required at this time to guide the design of project activities under the additional financing. Institutional Arrangements 38. The implementation arrangements will remain the same as in the original project. The executing agency is the Ministry of Environment and Tourism. The Project Coordination Office (PCO) will report directly to the Environment Commissioner of the Ministry of Environment and Tourism. 39. The following implementation and execution arrangements are in place in order to maximize the involvement and coordination with key stakeholders and related initiatives: 40. The Steering Committee (SC): The SC is a high level executive committee responsible for overseeing project implementation and for providing strategic leadership for the implementation of NPCM and enabling legislation. It will meet at least four times every year. Members of the SC will be representatives from the LMs and RCs. 11 41. The Integrated Coastal Zone Management Committee (ICZMC): The ICZMC will be a supervisory body that will be regionally focused, which will support the project with an overall advisory role on issues related to project implementation. It will meet twice a year and will have a broad flexible structure to ensure responsiveness to local priorities, different stakeholder groups and emerging issues. 42. The ICZM Scientific Group (SG): The independent Scientific Group will provide high- quality scientific and other data to create a common platform for decision-making by channeling scientific input through existing structures as far as possible. The SG group will be formally constituted and will meet when needed. 43. The Project Coordination Office (PCO): The PCO will work as the project implementation support team. Its mandate will be to implement project activities under the supervision of the SC and ICZMC. The PCO will comprise a project coordinator, an administrative assistant, a senior technical advisor (deputy coordinator), two environmental officers, a procurement/accountant officer, a monitoring and technical specialist and a part-time media liaison and custodian branding specialist. 44. Ministry of Environment and Tourism (MET) responsibilities: The MET will be the lead agency which will have the overall responsibility over the project. It will be responsible for the monitoring and evaluation of: project implementation performance; progress of investment activities; compliance with procurement and disbursement procedures; progress towards the Project Development Objective (PDO); legal and policy endorsement and enactment; and coordination and progress of cross-sectoral cooperation. The Environmental Commissioner will be the MET Focal Point and the PCO will report to him. The Environmental Commissioner will communicate necessary information to MET PS and Minister in addition to his participation in the SC. 45. Other Institutions: Given that large areas of the coastal regions are under some form of protection, the MET is the key National ministry mandated as the custodian of protected area management in Namibia. The DEA was the lead Directorate in the NACOMA project. The integrated nature of coastal governance calls for close collaboration among a wide range of other line ministries and their respective directorates. The Ministry of Regional and Local Government, Housing and Rural Development (MRLGHRD) and the Ministry of Fisheries and Marine Resources (MFMR) are particularly key partners in implementing the coastal governance framework at all levels of government. Other relevant ministries include: Ministry of Mines and Energy (MME), National Planning Commission (NPC), Ministry of Lands and Resettlement (MLR), Ministry of Agriculture, Water and Forestry (MAWF), Ministry of Works and Transport (MWT), Ministry of Safety and Security (MSS), Ministry of Defense (MoD), Ministry of Justice (MoJ), and Ministry of Education and Culture (MEC) among others. Parastatals including NamPower, NamWater, NamPort, Roads Authority, Namibian Wildlife Resorts will also be critical partners who have key roles to play in the sustainable development of the coastal regions. 12 Financial Management and Procurement 46. Procurement and financial management reviews carried out regularly as part of supervision missions confirm that procurement and financial management has been satisfactory and there are no serious irregularities and the systems in place are adequate for project implementation. The additional financing will not result in any changes to the financial management and procurement arrangements for the project. A procurement plan has been reviewed by the team. The project will continue to adopt the same rigorous approach to fiduciary and procurement due diligence to reduce any risks that may occur. The government confirmed that the staff in charge of procurement and financial support as in the original project will remain in place. The Bank team also confirmed that the AF will not finance contracts awarded to debarred firms. The following procurement, consultant and anti-corruption guidelines will apply to this project: a) “Guidelines on Preventing and Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA Credits and Grants�, dated October 15, 2006 and revised in January 2011 (“Anti-Corruption Guidelines�); b) “Guidelines: Procurement of Goods, Works and Non-consulting Services under IBRD Loans and IDA Credits and Grants by World Bank Borrowers� dated January 2011 (“Procurement Guidelines�) and; c) “Guidelines: Selection and Employment of Consultants under IBRD Loans and IDA Credits and Grants by World Bank Borrowers� dated January 2011 (“Consultant Guidelines�). Environmental and Social Safeguards 47. The project’s management of environmental and social safeguards is satisfactory as rated in the previous ISRs. Activities proposed for the additional financing are similar to those already completed under the parent project and the safeguards Category B thus remains unchanged. The additional financing will trigger the same safeguard policies that applied to NACOMA: OP 4.01 Environmental Assessment, OP 4.04 Natural Habitats and OP 4.12 Involuntary Resettlement. No new environmental risks are expected to arise under the additional financing and the proposed activities will not trigger any new safeguard policies. The Environmental Management Framework and the Process Framework remain applicable for the proposed activities under the additional financing. These documents do not require modification, and re-disclosure is therefore not necessary during the preparation of this proposed additional financing. Policy Exceptions and Readiness 48. The additional financing does not require any exceptions to Bank policies and complies with regional criteria for readiness. 13 Annex 1: Results Framework and Monitoring NAMIBIA Namibian Coast Conservation and Management Project Results Framework Revisions to the Results Framework Comments/ Rationale for Change PDO: To assist the Recipient to conserve, use sustainably and mainstream biodiversity of the Namibian Coast. Current (PAD) Proposed To assist the Recipient to No Change conserve, use sustainably and mainstream biodiversity of the Namibian Coast PDO indicators Current (PAD) Proposed change* PDO1 Increase in km2 and Revised. Increase in ha and number of Indicator was unclear as it number of terrestrial and terrestrial and marine ecosystems of measured 2 outcomes, one is the marine ecosystems of biodiversity importance legally protected. proclamation of new areas biodiversity importance under (increase of Km2) and two is the effective management by year improved management which is 5 compared to baseline now the second PDO situation New Increase in score of management The GEF is requesting that effectiveness for 2 PAs (869,874 ha and standard indicators and 500 ha) measurement are used so that they can track progress of the whole GEF portfolio PDO2 Increase in the number Revised. Increase in the number of people Indicator was unclear as it of people engaged in engaged in sustainable use activities measured 2 outcomes, one is the sustainable use activities and supported by the project. increase in number of people and the proportion of their income two is the proportion of income. derived from these studies by The second one was hard to year 5 compared to baseline measure and not meaningful. situation PDO 3 Coastal biodiversity Revised. Increase in the number of This indicator was unclear and was related aspects better national, regional and local plans and simplified. incorporated into planning, strategies that incorporate biodiversity policy, institutions and issues. investments at national, regional and local levels by year 5 compared to baseline situation New Direct project beneficiaries and The Bank new Results Framework Female beneficiaries template requires using this standard indicator. 14 Revisions to the Results Framework Comments/ Rationale for Change Intermediate Results indicators Current (PAD) Proposed change* Paper on policy and legal Completed aspects developed and disseminated Formal determination of LMs Completed related to amendment or development of new legislation and policies obtained ICZM bill drafted and Revised. Original indicator unclear. submitted for gazetting Study and proposal for the enabling legislation of NPCM completed New. Paper for Governance options completed Consultative process and On-going. documentation on clarification Consultative process and documentation of institutional mandates on clarification of institutional mandates developed and implemented. and enabling legislation of NPCM completed. Env. policies and management Completed plans for coastal authorities developed. Coastal Policy published and Submitted (soon completed) endorsed by Cabinet. New. At least two regional or local government land-use plans that incorporate ICM approach completed New. At least one report on methodologies and lessons learned on restoration, EIA and good management and technologies of SLM/SFM for the coast developed and disseminated. Operational modalities for The implementation strategy for NPCM national permanent mechanism developed and implemented. developed and financial sustainability strategy and action plan related to ICZM developed and implemented Training conducted at central, Completed for first phase. regional, local level in 6 Revised. defined competency areas Number of people trained in ICZM approach and on key tenets of NPCM MET and MFMR agreement On-going on coastal and marine Operationalize MET, MFMR and other biodiversity data hub government agencies agreement on coastal operational and marine biodiversity data hub. Regular state of coastal environment reporting. NACOMA’s website On-going developed, regularly up-dated. 15 Revisions to the Results Framework Comments/ Rationale for Change Media and coastal schools Completed for first project. awareness activities Revised. undertaken regularly. Number of awareness activities presenting ICM approach carried out (exhibitions, clean ups, expos, talks) in accordance with revised CAS Regional coastal profiles for Completed for first project. all four regions developed. Revised. Number of environmental education materials developed (brochures, profiles, reports) New. Number of communication activities carried out (radio programs, press releases, documentaries) 3 new coastal terrestrial Pas Completed and 1 MPA created 7 mgmt. plans in place. Completed for first project. Investments (MG) approved Completed for first project and completed. Revised. Number of investments in pilot areas covering 200,000 ha supporting the rehabilitation of land degradation and improve sustainable management Enforcement of management On-going and revised. plans strengthened. Number of people trained in park management, patrolling, tourism management and EIA. New. Number of selected existing visitor centers refurbished New. One integrated land use plan developed for adjacent conservancies. 90 % of project activities On-going identified in annual work plans satisfactorily completed. Monitoring reports for On-going supervision purposes produced and disseminated according to schedule. * Indicate if the indicator is Dropped, Continued, New, Revised, or if there is a change in the end of project target value 16 REVISED PROJECT RESULTS FRAMEWORK Project Development Objective (PDO): To assist the Recipient to conserve, use sustainably and mainstream biodiversity of the Namibian Coast. Responsibility Baseline Data Source/ Cumulative Target Values 5 Frequency for Data Comments Original Progress Methodology 2 3 Collection PDO Level Results Indicators UOM Project To Date (2012) 4 2013 2014 2015 Core Start 2005 1. Increase in km2 and number of terrestrial and At end of marine ecosystems of Hectares 0 10,010,300 10,010,300 project Decree NACOMA biodiversity importance legally protected Tracking Tool 2. Increase in score of (METT) management effectiveness At end of Score for Number 0 40 70 NACOMA for 2 PAs (869,874 ha and project Dorob 500 ha) National Park and NIMPA 3. Increase in the number of people engaged in sustainable NACOMA Number 18,975 21,975 Annually NACOMA use activities supported by statistics the project. 4. Increase in the number of national, regional and local NACOMA plans and strategies that Number 0 47 53 Annually statistics NACOMA incorporate biodiversity issues Beneficiaries 6 2 Please indicate whether the indicator is a Core Sector Indicator (for additional guidance – please see http://coreindicators). 3 UOM = Unit of Measurement. 4 For new indicators introduced as part of the additional financing, the progress to date column is used to reflect the baseline value. 5 Target values should be entered for the years data will be available, not necessarily annually. Target values should normally be cumulative. If targets refer to annual values, please indicate this in the indicator name and in the “Comments� column. 6 All projects are encouraged to identify and measure the number of project beneficiaries. The adoption and reporting on this indicator is required for investment projects which have an approval date of July 1, 2009 or later (for additional guidance – please see http://coreindicators). 17 5. Project beneficiaries, Number NACOMA 0 21,000 25,000 Annually NACOMA statistics Of which female Number NACOMA 10,500 12,500 Annually NACOMA (beneficiaries) statistics Intermediate Results and Indicators Baseline Target Values Unit of Original Progress Responsibility 2013 2014 2015 Data Source/ Intermediate Results Indicators Measur Project To Date Frequency for Data Comments Core Methodology ement Start (2012) Collection (200x) Intermediate Result 1: Improved Legal, Institutional, Policy and Planning Framework for Integrated Coastal Zone Management 1. Proposal for the enabling Activity Yes/No No No Yes Annually NACOMA legislation of NPCM completed report 2. Paper for Governance options Activity Yes/No No No Yes Annually NACOMA completed report 3. Regional or local government Activity coastal management related land- Number 0 0 2 Annually report NACOMA use plans prepared 4. Report on methodologies and Activity Number 0 0 1 Annually NACOMA lessons learned report Intermediate Result 2: Targeted Capacity-Building for Integrated Coastal Zone Management Completed 5. Number of people trained in Training ICM approach and on key tenets of Number 0 0 200 Annually reports NACOMA NPCM 18 Intermediate Results and Indicators Baseline Target Values Unit of Original Progress Responsibility 2013 2014 2015 Data Source/ Intermediate Results Indicators Measur Project To Date Frequency for Data Comments Core Methodology ement Start (2012) Collection (200x) 6. Number of awareness, Communicati communications and Number 0 0 30 Annually ons reports NACOMA environmental education activities Intermediate Result 3: Targeted Investments in Critical Ecosystems for Biodiversity Conservation and Sustainable Use Completed 7. Number of investments in pilot areas covering 200,000 ha Activity supporting the rehabilitation of Number 0 0 7 Annually report NACOMA land degradation and improving sustainable management 8. Number of people trained in Training park management, patrolling, Number 0 0 150 Annually report NACOMA tourism management and EIA 9. Number of selected existing Field Number 0 0 3 Annually NACOMA visitor centers refurbished inspection 10. One integrated land use plan Activity developed in the adjacent Number 0 0 1 Annually report NACOMA conservancies 19 ANNEX 2 OPERATIONAL RISK ASSESSMENT FRAMEWORK (ORAF) NAMIBIA: Namibian Coast Conservation and Management Project 1. Project Stakeholder Risks Rating Substantial Description : Risk Management : The coastal and marine areas in Namibia host a wide array of potential NACOMA has followed a comprehensive stakeholder engagement. The wide participatory nature of the economic activities and thus different stakeholders have different project has ensured that all views are discussed and that rational decisions abiding to the legislation are opinions and interests about the development approaches and options taken. NACOMA has just passed a policy that underwent a wide and thorough consultation process, thus for the coast. The coastal areas of Namibia, particularly in the Erongo reducing this risk. NACOMA has also facilitated the mainstreaming of biodiversity into extractive Region, are highly sought after in terms of coastal development, industries and has provided a useful platform on which to continue appropriate coastal planning and tourism and mining. The economic benefits and associated development. The Risk remains substantial due to the nature of the gap between lobbying interests towards developments offered by mining, and in particular the recent boom in mining versus lobbying interests towards conservation and protection of biodiversity uranium mining, present a challenge for ensuring a balanced and sustainable approach to coastal and marine development and use. The competing expectations and resources use conflicts among the main Resp: | Stage: | Due Date : | Status: stakeholders of Namibian coast could slow down some project activities. 2. Implementing Agency Risks (including fiduciary) 2.1 Capacity Rating: Moderate Description: Risk Management : The small size and flat structure of the NACOMA project coordination Salaries are competitive and working conditions are attractive. Staff is very motivated to be making a office, combined with specialized staff that has worked on coastal and difference on such important ecosystems of Namibia. marine issues for a decade, may lead to difficulties if key staff leave and in replacing them. Resp: | Stage: | Due Date : | Status: 3. Project Risks 3.1. Design Rating: Moderate Description: Risk Management : Implementing an integrated governance approach and establishing the This risk may be reduced through continued support to the momentum built by NACOMA to maintain and necessary collaborative arrangements among the different levels and grow the political will and government awareness and ownership of coastal management activities and to sectors may represent a risk to project implementation. strengthen institutions for effective coastal governance Resp: | Stage: | Due Date : | Status: 3.2. Social & Environmental Rating: Low Description: Risk Management : 20 Since this is an additional financing to NACOMA and is located in the The original project has been implemented under an Environmental Management Plan and a Process same geographical area, the following safeguards will be triggered: Framework that addresses these policies. Supervision has reported that NACOMA has complied with these Environmental Assessment (OP 4.01), Natural Habitats (OP 4.04) and safeguard policies. The team has gained experience and the additional financing will operate under the same Involuntary Resettlement (OP 4.12). There are no indigenous peoples instruments. living in the coast of Namibia. Resp: | Stage: | Due Date : | Status: 3.3. Program & Donor Rating: Low Description: Risk Management : The additional financing expects a matching contribution of US$ 5.7 There are no new donors foreseen in this phase. million. The NACOMA team and the Ministry of Environment will continue to coordinate with other government agencies and private sector partners. The original project has been successful at engaging these partners and getting cofounding for complementary activities. Resp: | Stage: | Due Date : | Status: 3.4. Delivery Monitoring & Sustainability Rating: Moderate Description: Risk Management : There is a moderate risk that sustainability is hampered due to lack of The MET has started to provide funding on a regular basis to cover the costs of operating NACOMA. Also adequate engagement. The project’s impacts could be minimized if four Regional Councils that are part of the ICZM Committee are supporting office rental of NACOMA. there is a lack of funding of the NACOMA team to continue operating Once the institutional governance structure is in place MET has indicated that part of setting the structure in the area after the project ends. will include financing a minimal cadre of staff. Resp: | Stage: | Due Date : | Status: 4. Implementation Risk Rating: Moderate Comments: Implementation of the current project has been satisfactory from the technical, fiduciary and safeguard compliance issues. 21 Annex 3: Incremental Cost Analysis NAMIBIA: Additional Financing Namibian Coast Conservation and Management Project A. Background and Context 1. Ecological importance of the Namibian Coast 1. The Namibian coast, isolated between the ocean and the escarpment, is considered a constant island of aridity surrounded by a sea of climatic change, and, thus, has remained a relatively stable center for the evolution of desert species. Exceptional features of the Namibian coast at the ecosystem level include (i) a fog belt due to the cold marine upwelling along the coast on more than 180 days of the year (considered as the life-blood of the Namib Desert, providing enough moisture for a number of highly-adapted animal species to survive, and being an important factor for the remarkably high biodiversity); (ii) a climatic transition belt dividing the coastal area into a northern area which receives summer rainfall and a southern area which receives winter rain (the narrow strip of land within this transition belt is the most arid area in Southern Africa with a mean annual rainfall of 2 to 20 mm); and (iii) the Benguela Current Large Marine Ecosystem which has the highest primary production rates in the world, and one of the most important renewable natural resources of the country (shared with Angola and South Africa, the BCLME supports vast population of fish species and the inshore marine environment, and provides migration and nursery habitats for marine organisms). In summary, Namibia’s coastal ecosystems harbor unique features and biodiversity in the form of endemic plants, invertebrates, amphibians, reptiles, mammals and birds - found in the globally recognized ecosystems of biodiversity importance, i.e. the southern Namib center of endemism in the Sperrgebiet (covering almost the entire Succulent Karoo Biome), the coastal wetlands around urban settlements and the nearshore islands around Luderitz. 2. Socio-economic importance of the Namibian coast 2. The Namibian coast provides essential direct ecosystem services (i.e. consumptive use values such as harvesting and non-consumptives such as eco-tourism) as well as indirect ecosystem services (such as carbon sequestration). The direct ecosystem services and resources form the basis of the three main economic coastal sectors: fishing, including aqua- and mariculture, mining of diamonds and tourism. The fastest growing sector on the coast is the tourism industry, which is also expected to have multiplier effects in terms of employment creation, great contribution to total economic activities, rural development and poverty reduction. Farming or other agricultural activities are almost precluded as a livelihood option due to the hyper-arid ecosystem of the coastal desert. These sectors form the basis of the coast’s significant economic growth and prominent industrial development. In addition, a high density of urban agglomerations with increasing populations demonstrates the importance of strategic development of Namibia’s coastal area. 22 3. Human pressure 3. Over the past years, as the Namibian coast has been put under rising human-made pressure for resource-based economic and urban, there has been evidence that destruction of habitat and unsustainable harvesting of natural resources have increased, predominantly posing threats to biodiversity and, eventually, to economic development in coastal areas. B. Scope of Analysis 4. The original NACOMA Project is widely recognized has having made significant contributions to conservation and sustainable utilization of natural resources along Namibia's coast in a very challenging context of competing demands on these resources and fragmented political authority to govern them. The NACOMA Project has succeeded in putting in place a basic legal and institutional structure for coast resource management -- the Skeleton Coast park, the national coastal management policy, procedures for coordinating actions across ministries, levels of government, and with the private sector. This structure is still quite new, however (e.g., the coastal management policy was only approved by the cabinet in September 2012) and the activities proposed under the additional financing are critically needed to ensure that the new laws, policies, institutions and parks are up in a strong start. 5. This additional financing will specifically support the enabling legislation of the NPCM and disseminate and incorporate the integrated coastal management approach mandated in the NPCM in development activities. In addition, the additional financing will support several protected areas (869,874 ha terrestrial and 500 ha marine PAs) and will support on the ground activities in the newly established parks and buffer areas. C. Fit with GEF Strategic Priorities 6. The original project (NACOMA) is funded by US$ 4.9 million grant from the Global Environment Facility (GEF) of. The GEF Grant agreement was approved in August, 2005 and became effective in October, 2005. The project is closing in December 2012. This additional financing addresses multiple GEF Focal areas and presents a cross-cutting proposal that is consistent with the GEF Biodiversity (Objectives 1, 2) and Land Degradation (Objective 3) Focal Areas. GEF Biodiversity Focal Area: 7. Objective 1: the additional financing will support sustainable coastal and marine protected area systems by ensuring that: a) ecologically viable and representative samples of the coastal and marine ecosystems and threatened species are protected to ensure their long-term persistence; b) sufficient financial resources are available for protected area management; and c) sufficient institutional and individual capacities are built and maintained for long term effective management of protected areas that includes participation by local communities. 8. Objective 2: the additional financing will promote measures to help reduce the negative impacts that productive sectors exert on coastal biodiversity and highlight the contribution of biodiversity to ecosystem functioning, economic development and human wellbeing. Support 23 will be given to continuing development and implementation of broader institutional, policy, legal, and regulatory frameworks for coastal governance. The additional financing will further mainstream biodiversity into key production sectors such as coastal tourism and fisheries as well as into mining and other major extractive industries occurring or proposed in Namibia’s coastal and marine areas. GEF Land Degradation Focal Area: 9. Objective 3: Activities under this objective will address the pressures on natural resources from competing land uses in the wider coastal landscape. The focus will be on building capacity for achieving harmonized sectoral policies and coordinated institutions to promote an enabling environment between relevant sectors and the large-scale application of good management practices based on integrated land use planning. The additional financing will seek to build upon the existing Country Pilot Partnership for Integrated Sustainable Land Management (CPP ISLM) framework and promote integrated cross-sectoral approaches. It will supplement the successful initiatives supported by the NACOMA project relating to strengthening capacity for cooperation and collaboration among the different economic sectors on the coast (mining, tourism, fisheries, conservation, transport, development etc.) for sustainable coastal development. The additional financing will promote investments in ecosystem restoration and rehabilitation of degraded areas in selected sites of community lands around the coastal PAs. D. Baseline or Business as Usual Scenario 10. Despite NACOMA’s success in setting the initial stages for a strong policy and governance of the coastal marine ecosystems and increasing protection of coastal biodiversity described earlier, the majority of threats and pressures on coastal resources from burgeoning coastal development and industry continue to increase and intensify. 11. Under the baseline scenario, in the absence of GEF funding, the growing economic development and human activities along the coast and in the marine environment might lead to unprecedented migration, bringing with it uncontrolled urban development that results in overuse and pollution of freshwater resources, an increase in industrial coastal and marine pollution, unsustainable agricultural practices and worsening of water regimes for coastal wetlands, other land and water degradation. The National Policy for Coastal Management (NPCM) was passed thanks to NACOMA. If the NPCM is not supported in its implementation during the next critical years, this could lead to a development approach that threatens ecosystem integrity, biodiversity conservation and functioning in the coastal ecosystems. The lack of a good accounting system valuing Namibia’s natural capital could lead to development decisions that do not acknowledge that coastal and terrestrial ecosystems provide services such as provision of food, tourism/recreation, flood attenuation and replenishment of groundwater. 12. Unsustainable development could increase the stresses on ecosystem services, increase carbon emission through deforestation and fires and these in turn may affect the natural habitats as well as the human populations both directly (flooding, coastal erosion, impact on harbors etc.) 24 as well as indirectly through coastal and terrestrial ecosystem changes (changes in fish populations and productivity impacting on the fishing industry as well as coastal biodiversity including endangered seabirds). 13. Also the insufficient recognition of the importance of ecosystems and biodiversity to provide multiple benefits to support local livelihoods and enhance ecological integrity, are serious barriers to overcome degradation drivers and trends that undermine the natural resource base in the Namibian coast. Development strategies will continue to erode the fragile natural resource base that sustains local livelihoods. Without GEF’s intervention, current management approaches and investments will not be able to optimize the provision of multiple benefits and target critical areas for improved land-use and protection of high biodiversity values. 14. Furthermore, without GEF, the development paradigm of the coast would not be able to redirect investments, mainstream conservation through reformed policies, or gain better access to global financial mechanisms to provide positive incentives for a greener economy that takes into account externalities and encourages a sustainable management in the wider landscape. While efforts are underway to reduce the depletion of the natural resource base by redirecting investments, the enabling conditions for sustainably ensuring the stability of ecosystems and biodiversity is not in place yet. Thus, the additional financing faces a setting where political, institutional and knowledge barriers discourage biodiversity conservation, land base mitigation strategies and rehabilitation strategies. 15. The NACOMA funding is critical to influence how policies and investments that will happen on the coast are incorporating the values of biodiversity and ecosystems, stop land degradation and enhance the multiple values of functioning ecosystems. It is predicted that without additional GEF support to build on the key achievements of NACOMA and address key gaps, the coastal zone, its associated biodiversity and fragile arid ecosystems, will rapidly deteriorate in the face of enormous and wide-ranging pressures. Policy implementation and the establishment of adequate institutional and legal mechanisms will be limited resulting in a lack of a coherent enabling framework for coastal governance and poor integration among relevant line ministries and stakeholders. In addition, the momentum towards decentralization of environmental governance will likely drop, thereby further weakening regional and local government capacity for coastal management and reducing the potential social and economic opportunities offered through proper governance of these areas and resources. 16. Without NACOMA’s additional support it is unlikely that the proposed environmental planning function at the coastal Regional Council level will be formalized and filled in the short- term. Thus, cost-effective replication benefits for this function in other regions throughout the country would not occur. 17. Over the three year additional funding period, the total expenditures associated with the Baseline Scenario are estimated at US$ 5.8 million. 18. The domestic and global benefits under the baseline scenario focus on the basic maintenance of coastal ecosystems through limited-, unmainstreamed- and uncoordinated environmental planning and management, principally at local, and only to a limited extent - 25 regional, national, or even sub-regional levels. The baseline would confer decreasing global benefits ’through limited- and insufficient protection to a number of sites with a biodiversity conservation value. E. GEF Alternative Global environmental benefits 19. The global environmental benefits of this additional financing is to support the enabling legislation of the NPCM and disseminate and incorporate the integrated coastal management approach mandated in the NPCM in development activities. In addition, the additional financing will support the effective management of several protected areas (869,874 ha terrestrial and 500 ha marine PAs) and will support on the ground activities in the newly established parks and buffer areas that will address land degradation issues in the coast. GEF Incremental activities and value added: 20. The GEF Alternative has been estimated at US$ 7.7 million. This additional financing is expected to be funded by a US$1.92 million GEF grant and US$5.8 million in co-financing from GRN and other funders. The partnership between the GEF, the Government of Namibia and the private sector is an innovative and exciting approach to contribute to the conservation and management of coastal and terrestrial ecosystems in the Namibian coast through an integrated coastal zone management (ICZM) approach. 21. The ICZM has been defined as a continuous and dynamic process that unites government and the community, science and management, sectoral and public interests in preparing and implementing an integrated plan for the protection and development of coastal and terrestrial ecosystems and resources in the Namibian coast.� The goal of ICZM is to improve the quality of life of human communities which depend on coastal resources while maintaining the biological diversity and productivity of coastal ecosystems. ICZM strives to overcome fragmentation and jurisdictional splits and overlaps inherent to the historical sectoral management approach. Appropriate institutional arrangements with particular focus on promoting intersectoral and interagency co-ordination at all levels of government are put in place. Mechanisms for involving stakeholders are also important to ensure that coastal communities and other stakeholders are involved in planning and decision-making. Furthermore it requires an adaptive management approach i.e., management that is flexible and can adapt with changing situations and acquisition of knowledge and experience. ICZM is therefore regarded as an approach for the 21st century as it treats the seaward extent and the landward extent of the coastal zone as a single interacting unit, hence ‘unitary’ management or integrated management. 22. In line with the recently approved National Policy on Coastal Management for Namibia, the ICZM approach is a useful framework for strengthening governance of the Namibian coast. This policy makes provision for the development of an ICZM Act, whose implementation will be overseen by an independent Coastal Management Authority (CMA). This CMA is needed because of the cross-cutting nature of ICZM issues. The CMA will pull together multiple stakeholders, harmonize overlapping mandates and responsibilities, and for protection of coastal and terrestrial ecosystems and resources in a consultative manner. The CMA will have an 26 independent board of directors that will be established by the Integrated Coastal Management Act. The National Policy on Coastal Management was endorsement by Cabinet on September 13, 2012, which has paved the way for the development of the ICZM Act. Therefore the commitment by Government (GRN) is a testimony that the adoption of ICZM to address current threats and challenges is indispensable. 23. Coastal development, vegetation cover removal, fires, expansion of urban areas, clearance for commercial agricultural purposes, bush encroachment, over-exploitation of marine living resources, uncontrolled tourism activities, uncontrolled mining activities, unsustainable abstraction of water from natural water basins, pollution, catchment issues, mari-culture and alien invasive species are the main threats to the coastal and terrestrial ecosystems of the Namibian coast. Some of the identified challenges are: lack of coordination among key stakeholders/sectors and limited institutional capacity, limited awareness of coastal environmental issues, poor prevention/law enforcement capacity among stakeholders, poor land and water management and limited funding. 24. The above mentioned threats and challenges will be addressed by a wide range of fora, with good stakeholder representation to achieve horizontal and vertical integration. The establishment of the CMA through the ICZM Act will ensure fora for representation by relevant Line Ministries, Regional Councils from the four coastal regions, Local Government Authorities in the four coastal regions and civil society groupings. A second level of the CMA involves the establishment of working groups comprising specialists and experts from different Ministries. The working groups will be established on an as-needed basis to address: i) specific coastal issues (such as coastal pollution, poverty reduction, conservation); ii) key coastal sectors (tourism; mining; research and education); and iii) emerging issues (such as climate change variability and change). The role of the working groups will be to review proposals and plans relevant to these sectors or issues where they affect the coastal zone and provide a co-ordinated response to the relevant Line Ministry. 25. The current Contingency Management Committee (CMC) and the Park Consultative Forum (PCF) will continue to take care of issues within the Dorob National Park (DNP). It is also envisaged that there will be CMCs in all four coastal regions. There will also be a forum in Lüderitz for discussing and addressing issues around the Namibian Islands Marine Protected Area (NIMPA), which will be called “NIMPA Stakeholder and Grievance Committee�. The stakeholders forming part of those committees will be providing advice to the decision makers in the government (MET, MFMR, MME etc). These committees were formed during the current phase of NACOMA, as triggered by the World Bank’s Social Safeguards Policy. 26. Coastal management in Namibia is currently on the cusp of success and failure. The NACOMA project has supported essential initial steps towards establishing an effective governance framework, promoting decentralized decision making and protecting key marine and coastal biodiversity. Ongoing support for coastal governance activities through this additional financing are essential to: a) boost the baseline of a developing, yet currently inadequate integrated coastal governance framework; b) support preliminary steps towards mainstreaming the ICZM approach into productive sectors; c) strengthen newly proclaimed yet ineffectively managed coastal and marine protected areas; and d) rehabilitate land degradation in key sites. In 27 the absence of support, there is a high likelihood of persistent degradation of high-value, unique biodiversity, natural resources and carbon stocks and loss of opportunities for sustainable coastal development. 27. The additional financing will support the same three basic components and a coordination component of the original project. These activities were not financed under the original project, but are a natural follow-up action required to consolidate the results of the original project: 28. Legal, Institutional, Policy and Planning Framework for Integrated Coastal Zone Management: This component supports strategic studies and consultations to support the implementation of the National Policy on Coastal Management (NPCM). This component will finance: a. Study and proposal for the enabling legislation of NPCM (ICZM ACT) as well as an options’ paper for the NPCM governance and institutional arrangements. The associated participatory consultative process and documentation on the clarification of institutional mandates and enabling legislation of the NPCM will also be supported. b. Preparation of new guidelines on how to prepare regional and local government land-use plans that incorporate the ICZM approach. At least two regional or local government land-use plans will be prepared using the guidelines. The NPCM has established the criteria to define and apply the IZCM approach, however it is critical for the additional financing to apply the IZCM concept in land use and development plans within the regional, local and national government sectors. c. Development and dissemination of methodologies and lessons learned on land rehabilitation, EIAs and good management for the coast that will also feed into the ensuing enabling ICZM legislation. This activity would develop best environmental practices guidelines to incorporate ICZM tools in the productive sector. Environmental Management Plans (EMPs) in coastal towns would be implemented in line with EMA to control poor environmental management practices. Some of these towns are surrounded by PAs, hence the need for uniform improvement in environmental management. d. Update the state of environment report, the regional Sector Environmental Assessments and sustainable development decision-making tools that incorporate economic valuations, mapping, GIS and environmental scenarios. The state of environment report would update regularly the biodiversity indicators for the coast. 29. Targeted Capacity-Building for Integrated Coastal Zone Management: This component supports awareness raising and capacity building activities to promote an integrated coastal zone management approach in development activities. This component would finance the development of education materials and, communication and training programs for national, regional and local key policy and decision makers to implement the ICZM approach through NPCM. (ie. radio programs, press releases, documentaries, expos, talks, etc..). It would also support the implementation of recommended activities proposed in the Communication and 28 Awareness and, Training and Capacity Building consultancies carried out under the on-going NACOMA project. 30. Targeted Investments in Critical Ecosystems for Biodiversity Conservation and Sustainable Use: This component supports the implementation of the two newly created parks, Dorob National Park and NIMPA (Namibian Islands Marine Protected Area). It will also support the development of an integrated land use plan in neighboring communal conservancies. The additional financing will support targeted investments identified in the seven management plans completed under the first project, to support sustainable livelihoods activities with the adjacent communities to the parks. The matching grants mechanism used in the original NACOMA project will be used and follow all the rules established in the project EMP to ensure that the activities are in line with the Bank’s Safeguard Policies. 31. Project Coordination and Reporting: This component supports the functioning of the Project Coordination Office (PCO). It will continue to support the day to day operation of a additional financing implementation unit responsible for the following functions: a) administration; b) coordination; c) financial and audit management; d) procurement management; e) monitoring and evaluation; f) fundraising; and g) reporting Incremental Cost Analysis 32. The difference between the cost of the baseline scenario (US$ 5.8 million) and the cost of the alternative scenario (US$ 7.7 million) is estimated to be US$ 1.9 million which represents the incremental cost for achieving the global environment objectives (see table 1). All of it is requested to the GEF. Table 1: Incremental Cost Matrix for GEF funding Components Category Expenditure Domestic benefit (these read like Global benefit outputs not benefits) (refer to ICA of earlier project and adapt) Component 1 & 2 7 Baseline 970,000 Functional advisory mechanisms for ( not clear why this collaboration and integration among is lumped together – sectoral agencies and across multiple ICA needs to do a scales on sustainable coastal and ocean component wise management in place (Gov) analysis – particularly since an Limited ICZM approach incorporated economic analysis is in mining and fisheries companies's not being done) policies Training program for National, Regional and Local key policy and decision makers to embrace multiple environmental benefits within planning tools and monitoring systems developed and promoted (ICZM approach) – e.g. training program is a activity/result…but specific acapacity 7 These two components were lumped in the document that was submitted to the GEF for the additional financing. 29 buily is more the benefit ? GEF 1,461,700 ICZM approach incorporated in Studies, alternative development sector using international consultations and standards proposal for the Governance structure of NCP completed At least two regional or local govt land- use plans that incorporate the ICZM approach completed Methodologies and lessons learned on restoration, EIA and good management and technologies of SLM/SFM for the coast developed and disseminated Increment 491,700 Component 3 Baseline 4,002,000 Limited law enforcement and compliance mechanisms in place for coastal management in the coast Limited research and monitoring of coastal and marine biodiversity conservation and sustainable use Limited investment in social development activities Training program for National, Regional and Local key law enforcement personnel GEF 5,342,000 Pro-active enforcement and Key activities in alternative compliance for coastal management Dorob National Park (810,000 ha) and Investment in social development NIMPA (500 ha) activities implemented Sustainable financing plan for Dorob implemented Investments in pilot areas (ca 200,000 ha) to rehabilitate land degradation and improve 30 management Increment 1,340,000 Component 4 Baseline 900,000 Strengthening capacity of the regional councils, ICZM and SC council. GEF 993,300 Efficient alternative administration of the Project coordination unit. Increment 93,300 Total Baseline 5,872,000 GEF 1,925,000 alternative Increment 7,796,300 31