PROJECT INFORMATION DOCUMENT (PID) APPRAISAL STAGE Report No.: 33211 Namibian Coast Conservation and Management (NACOMA) Project Name Project Region AFRICA Sector General agriculture, fishing and forestry sector (100%) Project ID P070885 GEF Focal Area Biodiversity, OP#2 Recipient REPUBLIC OF NAMIBIA Implementing Agency Ministry of Environment and Tourism (MET), Ministry of Regional and Local Government and Housing and Rural Development (MRLGHRD) Ministry of Environment and Tourism (MET) Private Bag 13306 Namibia Tel: +264-61-2842185 Fax: +264-61-2842216 mlindeque@met.gov.na, mlindeque@mweb.com.na Ministry of Regional Local Government and Housing and Rural Development (MRLGHRD) P.O.Box 24756 Namibia Tel: +264-61-2975182 Fax: +264-61-258131 enegonga@mrlgh.gov.na Environment Category [ ] A [X] B [ ] C [ ] FI [ ] TBD (to be determined) Safeguard Classification [ ] S1 [X] S2 [ ] S3 [ ] SF [ ] TBD (to be determined) Date PID Prepared July 28, 2005 Date of Appraisal February 17, 2005 Authorization Date of Board Approval September 1, 2005 1. Country and Sector Background National development goals Namibia has a medium-term vision to transform itself from a developing lower-middle-income country to an industrially developed high-income country by the year 2030. The Government of the Republic of Namibia's strategy to achieve this vision is guided by the "Namibia Vision 2030 Policy Framework for Long Term National Development" - a broad, unifying "targets list" that serves to guide five-year National Development Plans (NDPs). NDP 2's (for 2001/02 ­ 2005/06) key targets address poverty reduction, the bringing of sustainable development to rural areas, the provision of health services to the majority of the population and the strengthening of human capital. Importantly, NDP 2 includes, for the first time, a volume dealing specifically with regional development issues - the Regional Development Plans. 1 Decentralization to strengthen regional and local development Since Independence, Namibia has made slow but progressive efforts to move away from a much nationalized approach ­ rooted in the apartheid regime - toward decentralization. Development Planning in Namibia now takes place at three levels: national, sectoral and regional. Volume two of NDP 2 on regional planning and development identifies specific objectives such as strengthening capacity building at the regional level, ensuring effective decentralized regional planning based on participatory approaches and optimizing the use of regional potentials. Proposed actions include accelerating the decentralization policy, ensuring that budget allocations are provided to influence regional development positively and undertaking regional planning training programs tailor-made for councilors, planners and community representatives. It is expected that the Regional Development Plans will become an integral part of NDP 3 in the future. At the regional level, Regional Councils are the authorities responsible for setting and coordinating regional policies and priorities, as well as for overseeing implementation of regional development activities. These Councils get support through a Regional Development Coordination Committee (RDCC), with representatives from line ministries, local authorities, traditional authorities, non-governmental organizations and community-based organizations. Local Authority councils are established for municipalities, towns and villages. However, the current situation in Namibia demonstrates that there is a gap between these guiding policies and strategies and the economic, environmental and institutional reality in the country: decentralization progress has been much slower than anticipated; poverty levels are still very high (about 56 percent of the 1.83 million Namibians have been designated as poor or very poor); national economic growth is heavily dependent on one resource-based activity, the mining industry, with minimal opportunities for creation of employment and benefits for the rest of the economy and potentially negative environmental impacts; and the divide between rural and urban, northern and southern regions, and rich and poor persists and is even growing. Namibia's coastal zone The Namibian coast is a hyper-arid ecosystem. The Namib Desert runs along the whole length of the coast, extending beyond the Orange River into the northwestern corner of South Africa ­ an area known as the Richtersveld ­ and beyond the Kunene River into the southwestern corner of Angola. Much of the coast consists of sandy beaches with isolated outcrops, although there are also significant lagoons, estuaries and riverbeds present on the coast. Because the region, which is isolated between the ocean and the escarpment, is considered to be a constant island of aridity surrounded by a sea of climatic change, it has remained a relatively stable center for the evolution of desert species. Therefore, the Namibian coastal habitats, together with the Succulent Karoo biome of the southern Namib Desert hold significant and unique biological and ecological diversity, including uniquely adapted plants and animals, rich estuarine fauna and a high diversity of migratory wading and seabirds. The Namibian coastal ecosystems are extremely fragile and can easily be disturbed by human activities. Although the coast has been relatively inaccessible to date and shows geographically very concentrated population densities, human pressures on the coast's natural resources has been increasing over the past several years, highlighting the urgent need for sound coastal planning and management. The slow decentralization process has further complicated the 2 situation, as regional and local authorities currently operate without a clear legal framework and with overlapping mandates and limited funds. Regional Councils, local authorities and line ministries' field staff lack the human, technical and financial capacity to undertake their duties as currently defined. Namibia already has a range of sectoral policies and strategies that deal with natural resource management, biodiversity and other coast-related matters. However, planning, implementation and assessment of coastal zone issues are currently fragmented and under the authority of several line ministries. There is also generally insufficient information available about the environmental and economic situation of the Namibian coast and the four administrative coastal regions and their contribution to national and regional development. This lack of information has resulted in the absence of a common vision for all stakeholders about the sustainable use of biodiversity and coastal zone resources. The vertical and horizontal interface between local and regional, and regional and national decision-making, as well as coordination between regions, is currently weak or non-existent. Government strategy toward sustainable development of the coast The Project is part of the Government of Namibia's efforts to implement its National Biodiversity Strategy and Action Plan and to address local, regional, national and global environmental priorities. The Project also follows Namibia's Action Plan to Combat Desertification, as submitted to the Convention to Combat Desertification, and Integrated Coastal Zone Management1 is expected to be included among the identified priority themes. A few other complementary donor-funded projects and programs aim to conserve coastal and marine biodiversity in and outside biodiversity hotspots and conservation areas, and to strengthen capacity to accelerate and improve the decentralization process. The following four areas present key gaps, for which the Government seeks support: (i) Relevant policies, strategies and regulatory framework Namibia already has a range of sectoral policies and strategies that deal with natural resource management, biodiversity and other coast-related matters. However, planning, implementation and assessment of coastal zone issues is currently fragmented and under the authority of several line ministries, including the Ministry of Environment and Tourism (MET), the Ministry of Fisheries and Marine Resources (MFMR), the Ministry of Regional and Local Government, Housing and Rural Development (MRLGHRD), the Ministry of Mines and Energy (MME), the Ministry of Agriculture, Water and Forestry (MAWF) and the Ministry of Works, Transport and Communication (MWTC). The mainstreaming of cross-cutting issues (such as biodiversity conservation) into these sectoral policies, strategies and implementation activities at the national, regional and local levels ­ as proposed and planned under the National Biodiversity Strategy and Action Plan and other strategies ­ is still a distant goal. The National Biodiversity Strategy, along with the associated 10-year Strategic Action Plan (2001­2010), has as its overall objective to "Strengthen the implementation of the Constitution 1 In the context of the NACOMA Project, Integrated Coastal Zone Management is understood as fully compatible with the Convention on Biological Diversity's definition and principles of Integrated Marine and Coastal Area Management (IMCAM). 3 of Namibia (Article 95L) by adopting measures to improve the protection of coastal and marine ecosystems, biological diversity and essential ecological processes, and to improve knowledge, awareness, and the sustainability of resource use." A separate strategic aim is to strengthen ICZM. Further priority actions relate to reducing use impacts, creating Marine Protected Areas, supporting pollution control, aquaculture and awareness-raising. However, implementation of these strategies and action plan has been limited and slow. In addition, some of the relevant coastal zone sectoral ministries, such as MME, have not yet even declared their intention to decentralize, while MFMR is considering the decentralization only of certain activities (e.g. related to aquaculture). (ii) Environmental legislation Modern legislation has recently been developed for integrated water management (not yet in force). No modern legislation exists for biodiversity conservation/protected area management or environmental aspects of mining, although measures are under consideration. A major long- awaited piece of legislation, the draft Environmental Management and Assessment Bill, will for the first time incorporate legally-binding provisions and procedures for Environmental Impact Assessment into Namibian law. However, it is not clear how far the Environmental Management and Assessment Bill's provisions would apply to sectoral projects that could threaten Namibia's coastal integrity, notably those in the marine environment. The current version of the Environmental Management and Assessment Bill does not provide for strategic environmental assessment of relevant policies and plans in line with international best practice (e.g. under the Convention on Biological Diversity. NACOMA will support a legal and policy review through Component 1 to identify and prioritize areas for potential adjustment, modernization and harmonization. (iii) Decentralization progress Despite the slow progress to date, the government continues to officially reconfirm its commitment to advancing its decentralization agenda, with the ultimate goal of devolution. Positive results over the past year have included: (i) Clarification of the development and planning mandates of Regional Councils and inclusion of those critical functions in the Regional Development Plans; (ii) Revision of the Regional Council Organization Structure to accommodate functions to be decentralized; (iii) major recruitment of Regional Council's management and planning officers, and (iv) Preparation of two donor-funded decentralization support projects. Shortfalls in the decentralization process include the fact that Line Ministry Action Plans pertaining to the decentralized functions of the relevant Ministries still have to be developed and implemented (e.g. MET). Therefore, it is not surprising that environmental concerns are currently poorly incorporated in the Regional Development Plans and that environmental planning and management (mainly through community-based natural resource management and parks management) are proposed but in practice still absent, in spite of the burning need and often expressed desire to take an integrated conservation and development approach to regional planning. NACOMA will help empower previously disadvantaged Namibians and facilitate the decentralization of natural resource management and biodiversity conservation through a comprehensive coastal management policy process (to provide for the transition from national to regional and local planning and management), and the concurrent institutional and capacity building of the regional and local government machinery, its partners in civil society and other associated players. 4 (iv) Institutional framework for Integrated Coastal Zone Management Starting from a small Integrated Coastal Zone Management project in the Erongo Region, the four coastal Regional Councils established an Integrated Coastal Zone Management Committee (ICZMC) to develop a common approach toward sustainable development of the coastal zone, share lessons learned and seek inter-regional synergies. The ICZMC's membership to date has comprised representatives of the National Council and Regional Council. It co-exists with other structures for cooperative management e.g. for sustainable utilization of shared border rivers. At sea, the Benguela Current Large Marine Ecosystem (BCLME) Programme is at present investigating the need for and feasibility of a BCLME sub-regional commission, which could provide for synergetic linkages to the ICZMC. In its current form, the ICZMC lacks technical and financial capacity and a clear political and functional mandate. NACOMA will strengthen this mechanism substantially through a strong enabling environment, targeted capacity building and broader membership (through Components 1 and 2), in order to create a sustainable and well-connected broad-based advisory mechanism for integrated conservation and sustainable management of Namibia's coastal zone. A common vision, together with a new Coastal Zone Management Policy Framework and a strengthened institutional framework for ICZM, will provide a basis to ensure policy consistency along the coastal ecosystem. This is essential for activities with potential cumulative and long-distance impacts e.g. on erosion and soil deposition regimes, fish nursery and spawning areas etc. 2. Objectives The Project development/global objective is: Strengthened conservation, sustainable use and mainstreaming of biodiversity in coastal and marine ecosystems in Namibia. Higher level objectives to which the Project contributes The Project will contribute to the objectives of the Namibia National Development Plan 2 and Vision 2030, including crosscutting issues such as enabling capacity building of stakeholders and institutions, and, most importantly, environmental sustainability. In particular, the Project will support efforts under National Development Plan 2 to mainstream biodiversity conservation and sustainable use in the emerging decentralization process by developing the relevant institutional capacities of regional and local government as well as key national level players. While there is no Country Assistance Strategy for Namibia at present, the NACOMA Project is in line with the draft World Bank's Country Economic Memorandum framework as it contributes to the dialogue between the World Bank and the Government of Namibia, promotes the building of capacity among national and local governments and broadens the income base within the coastal regions. NACOMA corresponds to the World Bank Africa Region's strategic directions for coastal and marine environmental management, as it acts to remove barriers to conservation of fragile coastal and marine ecosystems through adaptive management, learning and information sharing, strengthening the institutional core and improving the quality of life of local communities. 5 The activities of the Project are fully consistent with the priorities of the Global Environment Facility Operational Program 2 (OP2) for Coastal, Marine and Freshwater Ecosystems. Specifically, the Project is compatible with OP2's opportunities to promote the conservation and sustainable use of biological diversity of coastal and marine resources under threat, and to promote the conservation of biodiversity and sustainable use of its components in environmentally vulnerable areas. The Project follows guidance from the Conference of the Parties of the Convention on Biological Diversity, as it addresses in situ conservation and sustainable use of biodiversity and, more importantly, multiple-use, system-oriented modes of coastal ecosystem management principles. NACOMA will provide a framework to address some of the key United Nations Millennium Development Goals, and objectives of the New Partnership for Africa's Development and the World Summit on Sustainable Development (Johannesburg 2002). 3. Rationale for World Bank Involvement The World Bank, acting as the Global Environment Facility's Implementing Agency and having solid experience with Integrated Coastal Zone Management Projects worldwide, has been requested by the four coastal regions, the Ministry of Regional and Local Government and Housing and Rural Development and the Ministry of Environment and Tourism to provide support to national and regional strategic efforts toward the development and implementation of decentralized biodiversity and coastal conservation, inter-sectoral cooperation and coordination. The World Bank's involvement in Namibia has been focusing on providing technical assistance to support the Government's efforts to reduce poverty, to support decentralization and local development, to analyze various sources of growth and to identify suitable options to strengthen human capital development, including knowledge management. Of relevance for the NACOMA design have been the World Bank's successful experiences as lead agency of a multi-donor initiative supporting the Government of Namibia with the development of a strongly participatory and high-quality White Paper on National Water Policy and Water Resources Management Bill. The continuous environmental dialogue between the World Bank and the Government of Namibia on the management of its highly valuable natural resources, and in particular its environmental assets, has already led to the preparation of two other World Bank/Global Environment Facility supported operations.2 Other environmental support to date includes Global Environment Facility Focal Point support and technical assistance for targeted environmental studies. The Bank has also supported, through the World Bank Institute, a Global Environment Facility International Waters pilot initiative, "Distance Learning Information Sharing Tool" (DLIST), which aims to facilitate knowledge sharing, make available distance learning options in Integrated Coastal Zone Management, identify linkages and strengthen stakeholder communication and ground level institutions mainly related to the Benguela Current Large Marine Ecosystem and associated coastal areas. Finally, specific capacity-building synergies are expected between the NACOMA Project and the World Bank's Sub-National Government Project that is currently under preparation. 2These are the Integrated Community-based Ecosystem Management (ICEMA) Project, launched in November 2004, and the Promoting Environmental Sustainability through Improved Land Use Planning (PESILUP) Project, currently under preparation. 6 4. Description As a result of the Project, targeted enabling conditions for biodiversity conservation and sustainable use, in particular those related to mainstreaming into coastal management and development planning at the national, regional and local levels will be improved. A strategic approach will be put in place to address root causes of biodiversity loss and coastal degradation. The environmental and economic potential of the coast will consequently be sustained, enabling the Project to provide local, regional, national, international (in particular benefits to the neighboring coastal states, Angola and South Africa) and global benefits. Below is a summary of the four interlinked components and sub-components of the NACOMA Project: Component 1: Policy, Legal, Institutional and Planning Framework for Integrated Coastal Zone Management conducive to Biodiversity Conservation and Sustainable Use Sector issue addressed The objective of this component is to mainstream biodiversity conservation and management into policy, legal, institutional, planning and financial structures affecting the sustainable development of the coastal zone of Namibia. Through a review of current laws and policies and support for appropriate amendments, this component will support the development of a modern and consistent policy and legal framework for the coastal zone consistent with national development objectives. The clarification and harmonization of institutional mandates will contribute to the decentralization process and to streamlined institutional arrangements to support ICZM, in particular through formal designation and operationalization of a national Coastal Management Mechanism. The production of a formal Namibia Coastal Management White Paper (NACOWP) will be based on a highly participatory approach involving identified stakeholder groups in multiple consultations and meetings. NACOWP will set out a common vision for Namibia's coast, the rationale for a national coastal policy and detailed objectives and strategies for its implementation, based on the principles of biodiversity conservation and integrated coastal zone management. It will provide an overarching and comprehensive framework to support integrated planning and decision-making related to coastal lands and waters, based on the carrying capacity of the Namibian coast as a whole. The component will further assist with the development and implementation of an Integrated Coastal Zone Management - related strategy to ensure financial sustainability. Sub-components I.1. Review of Existing Policies and Laws and Support for Targeted Policy and Legal Revisions and/or Development Existing policies and legislation, from which respective ordinances derive mandates to set regulations for coast-relevant activities, result in an overlap in the jurisdictional remits of key line ministries, such as Ministry of Environment and Tourism, Ministry of Mines and Energy, Ministry of Fisheries and Marine Resources and Ministry of Agriculture, Water and Forests. This sub-component will support a review of and appropriate amendments to relevant legislation and 7 policies to ensure their consistency with principles of ICZM and with the results from sub- component I.2. Importantly, this sub-component will provide the Ministry of Environment and Tourism with targeted support and technical assistance in establishing the scope and process of measures related to Environmental Impact Assessment, a critical instrument to enable and support ICZM and mainstreaming of biodiversity under the forthcoming Environmental Management Act. I.2. Review of Existing Institutional Mandates and Support to Targeted Revisions This sub-component will provide technical analysis and input to review, clarify and harmonize the current roles and mandates of key stakeholders at various levels. It supports in particular a shift from nationalized to regional and local management of biodiversity and coastal resources through their mainstreaming into the ongoing decentralization process. The clarification and harmonization of institutional mandates will be particularly relevant for the streamlining decision-making processes at regional and local level, the consultative ICZMC and the anticipated future National Coastal Management Mechanism to facilitate mainstreaming of coastal biodiversity considerations into sectoral policies and actions by the close of the Project. I.3. Development of the Namibia Coastal Management White Paper (NACOWP) Together with sub-components I.1 and I.2, this sub-component supports the development of a highly participatory national coastal vision and ICZM policy framework, the NACOWP, to guide national, regional and local planning and management processes. This sub-component includes the organization of a series of broad-based stakeholder consultations and facilitated workshops. Based on an options paper developed by thematic expert groups and the consultative process, it will set out principles, objectives and substantive content relating to coastal resource conservation, development planning, socio-economic issues and enforcement. It will emphasize the need to expand access to economic benefits from coastal resources for local communities while enforcing the protection of areas of national and global interest, including wetlands and fragile watersheds. NACOWP will facilitate the Government of the Republic of Namibia's commitment to ICZM by providing basic principles and components to integrate into future National Development Plans and associated Regional Development Plans, consistent with the goals of Vision 2030. I.4. Support to National Coastal Management Mechanism and financial sustainability Based on the results of the previous sub-components, this sub-component supports the formally defined executive National Coastal Management Mechanism and the broad-based consultative ICZMC with the development of a long-term strategy, an annual work plan and other operational modalities. It will further provide for the development of a fully-fledged ICZM financial sustainability strategy and action plan based on a detailed resource and needs assessment. Component 2: Targeted Capacity-Building for Integrated Coastal Zone Management conducive to Biodiversity Conservation and Sustainable Use Sector issue addressed Capacity building has been identified as one of the main bottlenecks for sustainable development in Namibia. Moreover, it is widely recognized that the lack of capacity at the national, regional 8 and local levels for biodiversity conservation and sustainable use, including its mainstreaming, stems from (i) a shortage of qualified staff and restricted budget for additional positions; (ii) limited resources and time for training activities; (iii) uncoordinated sectoral efforts; (iv) the slow decentralization process; (v) limited understanding of coastal biodiversity and linkages to development planning and management; and, finally, (vi) weak and fragmented communication channels between the various stakeholders. This component will fill the capacity gap at the local, regional and national levels regarding ICZM, biodiversity conservation and sustainable use, to facilitate mainstreaming of coastal biodiversity and resources into development planning, decision-making and key economic activities. By providing training for ICZM and developing M&E and knowledge management systems, the component will contribute to the ongoing decentralization process as well as improved effectiveness of institutions engaged in ICZM. Sub-components II.1. Awareness and Training for ICZM Based on the results from sub-components I.1 and I.2 and the training needs assessment for regional, local and national government and subsequently developed training modules, this sub- component will ­ in partnership with other initiatives - provide cost-effective training to the identified stakeholder groups. It will further provide targeted support to the Ministry of Environment and Tourism's efforts to mainstream and decentralize biodiversity management by specifically strengthening local and regional delivery mechanisms. These measures will be provided through (i) technical assistance from the Project Coordination Office's Senior Technical Advisor and other national and international thematic experts, (ii) thematic training workshops, (iii) on-the-job training, and (iv) study tours. II.2. Biodiversity Mainstreaming, Monitoring and Evaluation Mechanism This sub-component will involve the review of existing biodiversity Monitoring and Evaluation systems, and assessment of coastal and marine biodiversity data and information gaps and needs. It will focus on the development or upgrading of a cost-effective, accessible and sustainable method for a long-term coastal and marine biodiversity Monitoring and Evaluation system linked to other national environmental monitoring efforts including the regional coastal profiles. II.3. Communication and Knowledge Management The Objectives of this sub-component are two folded: one is to develop a knowledge management mechanism (network) to allow stakeholders to share information (e.g. on management plans, interventions, mainstreaming opportunities, meetings, training), including feedback loops for inter-sectoral, vertical and international sharing of lessons and best practices related to ICZM and mainstreaming coastal biodiversity management into development planning. The other is to create an action-oriented communication strategy that will increase environmental awareness among all key target groups and facilitate ownership and full public participation in the Coastal Vision and White Paper development process. The development of participatory regional coastal profiles will further bridge the knowledge gap about socio- economic, environmental and biodiversity conservation and development issues and their inter- linkages. These profiles will in turn be used as a basis particularly for local and regional decision-making processes relevant to the coast, and will feed back into the State of Environment 9 Report and National Resource Accounting efforts. The profiles will be published, reviewed, endorsed and up-dated on a regular basis by the Regional Councils. Component 3: Targeted Investments in Critical Ecosystems for Biodiversity Conservation, Sustainable Use and Mainstreaming Sector issue addressed This component will contribute to the overall framework for ICZM along the Namibian coast by using targeted investments and activities to address on-the-ground gaps in coastal biodiversity conservation throughout the Namibian coastal and marine ecosystems rooted in under- and un- protected ecosystems of biodiversity importance and to increase economic benefits from sustainable resource-based activities in line with regional development objectives. These activities will be complemented by the Ministry of Environment and Tourism's SPAN Project, which addresses management and sustainability issues in targeted national terrestrial parks. Through this component, NACOMA will focus on a combination of coastal and marine biodiversity priority sites, including Terrestrial coastline ecosystems of biodiversity importance that are currently under-protected or un-protected and Marine Protected Areas and other unprotected islands and near-shore sites. Sub-components III.1. Management Planning of Coastal Ecosystems of Biodiversity Importance This sub-component includes a participatory review, update and development of management plans for key biodiversity priority conservation sites and their buffer zones, in line with recommendations for the appropriate financial and institutional mechanisms and capacity development needs emerging from Components 1 and 2. In addition, this sub-component aims to support the creation of new protected areas (e.g. Marine Protected Areas and the Walvis Bay Nature Reserve). In order to increase functioning biodiversity conservation management in priority coastal areas, demarcation and gazetting of these sites will be supported. III.2. Implementation of Priority Actions under the Management Plans at Site and Landscape Levels This sub-component will support implementation of reviewed and updated or new management plans through targeted investments related both to biodiversity conservation and rehabilitation, as well as sustainable use activities linking biodiversity conservation with economic development and benefits for the local coastal communities in and outside identified ecosystems of biodiversity importance. It prioritizes sustainable use activities with high potential for piloting, testing and learning. Targeted and site-specific investments that are eligible for funding (matching funds) under the Project (providing global environmental benefits in addition to local ones) have been identified during preparation. Potential biodiversity conservation activities as outlined in existing management plans are: GIS surveys and mapping, species-specific conservation measures, control and regulation measures, soil erosion control and vegetation cover rehabilitation. Potential investments related to sustainable use include income-generating activities that are connected to ecosystem services, such as ecotourism guiding facilities, 10 sustainable fish farming, seaweed production, etc. This sub-component would further provide support for limited infrastructure and equipment for site management purposes. Component 4: Project Coordination and Reporting Sector issue addressed This component reflects the incremental need for an operational Project coordination structure. Sub-components IV.1. Project Coordination This sub-component will support the recruitment of 5 positions for the Project Coordination Office: a NACOMA Project Coordinator, a Senior Technical Advisor (Deputy Coordinator), an Administrative Assistant, a full-time Accounting and Procurement Officer and a part-time Monitoring and Evaluation Specialist. It will further provide for office equipment and staff training to allow for an efficient Project coordination and management. IV.2. Project Performance and Results Reporting This sub-component will include Project performance and impact monitoring as well as evaluation of Project progress and reporting. 5. Financing3 Source: ($m.) RECIPIENT 18.47 GLOBAL ENVIRONMENT FACILITY 4.9 FINLAND: SUPPORT TO THE NAMIBIAN DECENTRALISATION 2.0 PROCESS FRANCE: DECENTRALIZATION AND IT SUPPORT TO RC 0.5 GERMANY: GTZ BIODIVERSITY AND DESERTIFICATION 1.7 IMPLEMENTATION SUPPORT Total 27.57 6. Implementation The NACOMA Project, which will be implemented over 5 years, is designed based on a flexible and adaptable approach to institutional arrangements. Based on progress and options that are expected from the White Paper process and of a policy framework for ICZM, including in relation with decentralization, necessary adjustments will be identified at mid-term to further streamline and mainstream such arrangements. The key institutions that will guide implementation of NACOMA include: i. Steering Committee: A high-level executive committee will be established and meet quarterly to oversee Project implementation and provide strategic leadership for the development of a 3 This Financing Plan is included in the fuller baseline + increment defined in the PAD: Incremental Cost Analysis. 11 national integrated coastal zone management policy. Strong coordination between key institutions and programs will facilitate delivery of Project objectives and sustain results and positive impacts in the longer term. Consistent with Namibia's ongoing decentralization program, its membership will bring together regional council and national ministerial representatives. The SC will comprise high-level representatives, nominated by the respective Permanent Secretaries/Regional Governors as applicable, from the following institutions: Ministry of Environment and Tourism (chair); Ministry of Regional and Local Government and Housing and Rural Development (deputy/co-chair); (Planning function and the Directorate of Decentralization Coordination; Ministry of Fisheries and Marine Resources; Ministry of Mines and Energy; Ministry of Agriculture, Water and Forests; Ministry of Works, Transport and Communication; National Planning Commission; Coastal Regional Councils; and a representative of the NACOMA Project Coordinator's Office, which will function as the secretariat of the SC. ii. Project Coordination Office: The Project Coordination Office, which will report to the Steering Committee, will be hosted by the Erongo Regional Council. It will consist of a full-time Project Coordinator responsible for overall coordination and implementation, a full-time Administrative Assistant, a full-time Senior Technical Advisor (Deputy Coordinator) with expertise in coastal zone planning and management, a part-time Monitoring and Evaluation Specialist and a full-time Accounting and Procurement Officer. The Project Coordination Office's mandate is to implement the Steering Committee's decisions, including delivery of funds to selected activities. Its main functions and tasks are related to: Operational Project coordination, cooperation and management; Project monitoring, auditing and reporting, including budget matters; Development of annual work plans; and Secretariat of the Steering Committee. iii. Integrated Coastal Zone Management Committee (ICZMC): The ICZMC will function as a technical-level advisory body to liaise with the Project Steering Committee on all aspects of Project implementation. It will meet quarterly, with a broad flexible structure to ensure responsiveness to local priorities, different stakeholder groups and emerging issues. The ICZMC will be regionally-driven and support enhanced vertical and horizontal coordination and balanced representation of non-institutional stakeholders. The following expanded membership is proposed: Coastal Regional Council, Coastal focal points nominated by key line ministries; Local authority representatives; Non-institutional stakeholders; and co-opted entities to ensure synergy with relevant donor-funded programs. The ICZMC Secretariat services will be provided, at least to Project mid-term, by the Erongo Regional Council. iv. Scientific Group on ICZM: An independent Scientific Group will be established to provide high-quality scientific and other data to create a common platform for decision-making and minimize differences of opinion amongst stakeholders with regard to management issues. The preferred approach is to channel scientific input through existing structures as far as possible, avoiding excess cost or bureaucracy. The Scientific Group will be housed within BENEFIT, the trilateral marine science mechanism that supports the BCLME Programme. BENEFIT is already based in Swakopmund, together with the BCLME Living Marine Resources Activity Centre, which takes an ecosystem-wide approach to fisheries research. In order to ensure proper coverage of terrestrial coastal ecosystems and efficient use of existing Namibian expertise, the 12 following institutions should also be members of the Scientific Group: NaLTER, NMN, NBRI, DRFN, GTRC, UNAM (University of Namibia) and NatMIRC. Input from relevant line ministries will also be sought. Monitoring and Evaluation A Monitoring and Evaluation plan has been developed during Project preparation, and sufficient resources have been allocated in the Project budget under Component 4 to implement this plan. The Monitoring and Evaluation plan addresses both Project performance and impact and identifies key indicators, mid-term and end-term targets and responsibilities for data collection. The progress for each component would be measured by selected agreed indicators. The Project Coordination Office, in particular the Monitoring and Evaluation Specialist, will be responsible for regular Project related data collection, analysis, management and reporting. Capacity building efforts will include on-the-job training for the relevant staff of the Project Coordination Office, Regional Councils, Local Authorities and Line Ministries involved in Project implementation. NACOMA aims to build on positive feedback on the quality and use of the established Benguela Current Large Marine Ecosystem Programme's Monitoring and Evaluation system and, thus, incorporate or link its coastal zone specific Project data to the larger Programme's meta database, if technically feasible. Project related data might be further used to feed into the updating of the coastal profiles. Linkages to the Participation and Communication Plan have been established to inform all key coastal stakeholders on a regular basis about Project results, progress and identified issues through identified dissemination tools (e.g. DLIST, NACOMA newsletter, web page, media announcements, etc.). 7. Sustainability The NACOMA design has been developed to integrate the main elements of sustainability at the national, regional and local levels: i. Institutional sustainability: The Project will be executed through existing national, regional and local government structures and does not intend to create a new entity. Institutional sustainability will be achieved by a Project design that focuses on strengthening currently rather weak (in terms of environmental capacity) Regional Councils and the Integrated Coastal Zone Management Committee as well as targeted line ministries and Local Authorities if needed. ii. Financial sustainability: The Ministry of Environment and Tourism and the Ministry of Regional and Local Government and Housing and Rural Development will both provide budget allocations related to Regional Council's planning capacities and coastal zone management, and it is expected that this budget allocation will increase over and after the Project period. Through close coordination with municipalities, further increased local funding for environmental management of coastal urban centers is expected. Finally, two detailed environmental economic analyses undertaken during preparation indicate that the natural resource base is the first engine for growth and livelihoods on the coast, generating a significant amount of resources. This work is the first step in a more detailed economic review and evaluation of the activities that take place on the coast. Sustainable management and conservation on the coast could be financially 13 sustained to a greater degree if the rent coming out of the use of the natural resources and the ecosystem services on the coast could be better captured. If appropriate regulations, agreements and partnerships are put in place, the need for state and/or donor funding of coastal management could gradually be decreased as environmental costs are internalized by the private sector. iii. Environmental sustainability: The achievement of environmental sustainability of fragile coastal ecosystems is at the center of NACOMA and cuts across the Project design. Environmental sustainability for Namibia's coastal zone depends on the interrelation of an enabled institutional, policy, legal, financial and planning framework, as well as on targeted investments focusing on rehabilitation and restoration of biodiversity sites and mainstreaming biodiversity conservation into local, regional and national development planning. The participatory process to develop and revise management plans for ecosystems of biodiversity importance is expected to facilitate bridging the gap between options for economic growth and biodiversity conservation. The Project's Participation and Communication Plan will complement other efforts in the coastal regions on environmental impact and values. Its successful implementation is expected to contribute to attitudinal and behavioral changes among coastal stakeholders as they will be enabled to better understand the direct and indirect value of the coastal biodiversity assets, the need for their protection and opportunities for their sustainable use. iv. Knowledge sustainability: The involvement of the entire spectrum of stakeholders in the NACOMA Project will contribute significantly to achieve knowledge sustainability. Project related information outputs, such as the regional coastal profiles, are expected to feed into the State of the Environment Reports and form the basis of the Regional Councils' environmental development decisions as reflected in the Regional Development Plans and National Development Plans. In addition, the institutional arrangements and partnerships with other initiatives are expected to contribute positively to a more sustainable information base and knowledge transfer. 8. Lessons Learned from Past Operations in the Country/Sector The Project has been designed based on experience and lessons learned related to coastal zone management and biodiversity conservation. The Project has carefully taken into account experiences within the region and adapted strategic directions provided in the "Integrated Coastal Management in Sub-Saharan Africa: Lessons Learned and Strategic Directions"4: (i) Lack of enabling legal and regulatory frameworks together with significant constraints in human resource skills and institutional capacity have resulted in limited sustainability of operations targeting conservation and sustainable use of coastal biodiversity in Sub-Saharan Africa. Long-term effects have further been curtailed by ad-hoc approaches with narrow sectoral focus. Overlapping issues, jurisdictions and impacts of integrated coastal management require adequate institutions to guarantee the necessary interagency coordination and interaction. NACOMA will address these critical needs by i) supporting development of policy, legal and regulatory frameworks in Component 1; ii) promoting capacity building, in particular for 4 Indumathie Hewawasam, Integrated Coastal Management in Sub-Saharan Africa: Lessons Learned and Strategic Directions, 2001. 14 integrated coastal zone planning, management and monitoring for the Regional Councils, Line Ministries and Local Authorities in Component 2; (iii) providing funds for urgently needed targeted investments to maintain key biodiversity values in priority sites in Component 3; and (iv) strengthening the Integrated Coastal Zone Management Committee to become a sustainable coastal zone entity. (ii) Conservation operations targeting coastal resources in Sub-Saharan Africa have often been limited in scope, funding and commitment. Particularly in light of scarce financing options, partnership building and networking has proven to be significant in promoting conservation operations. The NACOMA Project addresses this issue by encompassing the entire coast. In addition, the Project has been developed in close coordination with the Benguela Current Large Marine Ecosystem Programme to complement sub-regional objectives with coastal priorities and activities, as well as with the Finnish and French support projects to advance the decentralization process and the United Nations Development Programme support for national protected areas. (iii) Transparency in decision-making and public participation in program design have been critical for project success in Sub-Saharan Africa. Throughout the Project preparation process, NACOMA has sought to facilitate ownership and initiative by national, regional and local stakeholders through the Integrated Coastal Zone Management Committee, public consultations and information dissemination. Further, NACOMA has been cooperating with the follow-up initiative of the pilot DLIST, which has been used actively by Project stakeholders during the preparation process as an information platform for sharing ideas, experiences and documents. Future approaches to foster communication, coordination and learning by using DLIST services and others are now under discussion. A detailed Project Participation and Communication Plan has been part of the Project preparation phase and will be closely linked to the communication strategy under component 2. (iv) Availability of scientific data and information on which to base policy frameworks and management plans has been a major challenge for most Integrated Coastal Zone Management projects in Sub-Saharan Africa. The Project will support the establishment of a national coastal zone scientific group in which the main national research institutions are expected to participate. The main hosts of scientific coastal and marine data are currently the Benguela Current Large Marine Ecosystem Programme and the Benguela Environment Fisheries Interaction and Training Programme (Benguela Environment Fisheries Interaction and Training). The results of ongoing scientific assessments, in particular those related to the status of the coastal and marine ecosystems and biodiversity and impacts of offshore and on-shore mining and fisheries, will be made available to NACOMA and the proposed scientific group. The Project also plans to support the development of a joint database and coastal monitoring mechanisms. Other information, such as coastal data for the Erongo Region's various land use plans and the COFAD report on potential Marine Protected Areas on the Namibian coastline, will be collected and made accessible to all stakeholders, and used to up-date the coastal profiles. Lessons from similar projects in Namibia (i) The objective of the Danish Agency for Cooperation and Development-financed pilot Integrated Coastal Zone Management Project in the Erongo Region (1997-2000) was to achieve 15 and maintain long-term sustainable economic and ecological development of the coastal zone through establishment of baseline data for resource management and fostering of the decentralization process within the Erongo Region. Its main driving force was to address environmental protection of the coast as an ecosystem, rather than focusing only on animal protection and fishing of protected species, as previous conservation efforts in Namibia had done. The project succeeded in bringing together stakeholders to pool ideas, knowledge and experiences to develop a draft vision for regional coastal management. One outcome was the creation of the Integrated Coastal Zone Management Committee in 1990. The project was also instrumental in raising awareness about the need to share information among the coastal regions. However, by the end of the project, inadequate integration of planning and resource management still prevailed, a situation that was seen as being partly caused by the lack of high-level support for the Committee as well as the fact that the decentralization process did not reach a stage where delegation of powers was actually transferred. Therefore, the final evaluation report recommended that any potential follow-up support would require clear operational structures of Regional Councils. NACOMA design: The Project builds on the positive and critical lessons learned from the Danish Agency for Cooperation and Development-supported Integrated Coastal Zone Management Project in the Erongo region, which identified mainly the slow decentralization progress and the resulting shortage of qualified staff for environmental planning in the Regional Council as a key barrier for achieving Project objectives. NACOMA timeliness is demonstrated by the fact that (i) most planning positions in Regional Councils are being filled and organizational structures are being clarified, (ii) decentralization is progressing with some line ministries (e.g. the Ministry of Agriculture, Water and Rural Development) ready to launch an actual process over the coming months, (iii) Regional Councils are in the process of designating a responsible person as regional Coastal Zone Focal Point, and (iv) other complementary initiatives provide capacity-building to Regional Councils and the Ministry of Regional and Local Government and Housing and Rural Development. Further, lessons learned have been used to design flexible and adaptable Project implementation arrangements, a strong inter- sectoral Steering Committee with representatives from the regions, and the need and scope for capacity building and institution-building through a Senior Technical Advisor for the four regions. (ii) Benguela Current Large Marine Ecosystem Programme: The regional United Nations Development Programme/Global Environment Facility Benguela Current Large Marine Ecosystem Programme (Angola, Namibia, South Africa), under implementation for about 2 years, aims to implement a Strategic Action Programme in order to assure sustainable use of marine resources in the Benguela Current Large Marine Ecosystem. The project will enhance the capacity of the region to understand and predict system dynamics and manage ecosystem impacts. A limited number of pollution and coastal zone activities are also included. Lessons learned of relevance for the NACOMA project are: (i) The task of setting up multi-lateral multi- stakeholder technical and advisory groups proved more time consuming than expected; (ii) A sustained communication and media campaign is essential to raise public awareness including high level political support for project activities and to provide the grounds for sustaining management interventions. Involvement of the entire spectrum of stakeholders is important, 16 including decentralized levels of government and coastal communities. As an information- sharing platform accessible to all, DLIST has contributed significantly to that aim. NACOMA design: The Project will build and expand on the Benguela Current Large Marine Ecosystem Programme's experiences gained in Namibia: (i) Component 1 has been designed to provide realistic time budget for stakeholder consultations to establish the institutional, policy and planning framework for Integrated Coastal Zone Management, the White Paper; (ii) Component 2 includes the development of a comprehensive communication strategy and action plan as well as capacity-building measures for local, regional and national stakeholders to use and adapt available information; (iii) Further, NACOMA will build on its initial (during preparation) and Benguela Current Large Marine Ecosystem Programme's positive experiences with DLIST and use it as a major platform for information exchange and facilitation. 9. Safeguard Policies (including public consultation) Safeguard Policies Triggered by the Project Yes No Environmental Assessment (OP/BP/GP 4.01) [X] [ ] Natural Habitats (OP/BP 4.04) [ ] [X] Pest Management (OP 4.09) [ ] [X] Cultural Property (OPN 11.03, being revised as OP 4.11) [ ] [X] Involuntary Resettlement (OP/BP 4.12) [ ] [X] Indigenous Peoples (OD 4.20, being revised as OP 4.10) [ ] [X] Forests (OP/BP 4.36) [ ] [X] Safety of Dams (OP/BP 4.37) [ ] [X] Projects in Disputed Areas (OP/BP/GP 7.60) [ ] [X] Projects on International Waterways (OP/BP/GP 7.50) [ ] [X] Environmental. As small-scale physical works may be funded by the project, NACOMA is classified as an environmental safeguard category "B" project. As a consequence, an Environmental Management Plan was prepared by the recipient to ensure that the Project's on- the-ground activities (under component 3) are carried out in line with World Bank Environmental Assessment Policy OP 4.01 and similar Namibian Environmental Assessment requirements, and to ensure that all possible negative impacts are considered and mitigation measures are spelled out prior to the implementation of any on-the-ground activities. The The EMP was developed on the basis of a preparatory workshop held in country in August 2004, where eligible on-the-ground activities were pre- identified, a review of documents relating to the NACOMA Project and World Bank policies, and consultations with key stakeholders from municipalities and regional government on the coast. Social. Following comments made during Project preparation regarding the possibility of involuntary resettlement following the establishment of new protected areas, it has been concluded that the recipient should not prepare a special process framework to deal with such an event at this stage. It was further agreed that in the unlikely event where any activities would necessitate a process framework be included in the Project, the Project's Participation and Communication Plan could be supplemented with additional elements of a process framework, specific to the particular area in which access is to be restricted. These would consist of: (a) a 17 process whereby compensatory measures will be formulated and agreed on for persons whose livelihoods are adversely affected; (b) grievance procedures; (c) legal/administrative procedures; and (d) monitoring arrangements. It was agreed that an additional item would be built into the Project Participation and Communication Plan and implementation arrangements; that would be a grievance or appeals process, with an agency identified to receive appeals (the Project Coordination Office), in case there is a group of stakeholders that feels its interests are being curtailed by a restriction on access, and that the additional elements of a process framework should be formulated and agreed on. If the complainant will not be satisfied, he or she would then have recourse to a disinterested agency that has responsibility for protecting the rights of citizens in the area (LAC- Legal Advisory Center ­ has been identified to undertake this role). Bank supervision would include a special effort to determine whether any such situations have emerged and, if so, whether they have been properly handled according to Bank Safeguard rules. The NACOMA Project has been developed through an extensively interactive and inclusive dialogue between these key players, the Bank and other donors in the region through series of workshops, roundtables and discussion meetings. Stakeholders have contributed significantly to the definition of the Project's intervention area, its components and their design, envisaged outputs and activities to achieve the outputs, implementation and institutional arrangements and future Integrated Coastal Zone Management design and implementation. Wide and inclusive participation of stakeholders will also be sought and monitored during Project implementation, as described in the Project's Participation and Communication Plan. Finally, the Project performance Monitoring and Evaluation system includes indicators to measure public perception and knowledge of ICZM issues as well as social impacts of the Project in the coastal area and around ecosystems of biodiversity importance. 10. List of Factual Technical Documents 1. EcoAfrica Environmental Consultants. 2004. Review of policy and legislation pertaining to coastal zone management (project preparation document). 2. EcoAfrica Environmental Consultants. 2004. Analysis of the Institutional Capacity in the Namib Coast Regional Councils in Relation to the Namibian Decentralisation Process - Recommendations for Institutional Strengthening and Capacity Building (project preparation document). 3. EcoAfrica Environmental Consultants. 2004. Rapid Assessment of the Development Plans, Biodiversity Conservation Projects and Socio-economic Situation of the Namib Coastal Regions (project preparation document). 4. Ministry For Foreign Affairs of Finland. 2004. Support to the Namibian Decentralisation Process (project document). 5. Van Zyl. 2004. Namib Coast Biodiversity Conservation and Management (NACOMA) Project: Economic Analysis of Natural Resources in Two of Namibia's Four Coastal Regions: Karas and Erongo (project preparation document). 6. NACOMA Project Preparation Workshop, Swakopmund Namibia, 11-13 August 2004 (workshop proceedings). 7. Van Zyl, May 2005, Development of Key Performance Indicator for Monitoring and Evaluation of Economic Benefits in the Coastal Zone for the NACOMA Project 18 11. Contact point Christophe Crepin Title: Task Manager Tel: (202) 473-9727 Fax: (202) 614-0893 Email: ccrepin@worldbank.org 12. For more information contact: The InfoShop The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 458-5454 Fax: (202) 522-1500 Web: http://www.worldbank.org/infoshop 19