48899 Paper number 116 E N V I R O N M E N T D E P A R T M E N T P A P E R S Water Series Strategic Environmental Assessment Improving Water Resources Governance and Decision Making: Case Studies Rafik Hirji and Richard Davis April 2009 The SEA Decision Process in Water Management Policy Legislation Strategy cigetartS SEA Regulations Plans PROGRAMS lacitcaT Project 1 Project 2 EIA S u s t a i n a b l e D e ve l o p m e nt Vi ce Pre s i d e n c y TheWorld Bank environmenT deparTmenT Strategic Environmental Assessment Improving Water Resources Governance and Decision Making Case Studies Rafik Hirji and Richard Davis April 2009 Papers in this series are not formal publications of the World Bank. They are circulated to encourage thought and discussion. The use and citation of this paper should take this into account. The views expressed are those of the authors and should not be attributed to the World Bank. Copies are available from the Environment Department of the World Bank by calling 202-473-3641. SEA case studies 4-9-09.indd 1 4/9/09 12:39:40 PM © The International Bank for Reconstruction and Development/THE WORLD BANK 1818 H Street, N.W. Washington, D.C. 20433, U.S.A. Manufactured in the United States of America First printing April 2009 Design: Jim Cantrell Cover graphic: Rafik Hirji SEA case studies 4-9-09.indd 2 4/9/09 12:39:40 PM Contents Acknowledgments v Foreword vii Executive Summary ix Section A: Case Studies of SEAs in the Water Sector 1 Overview of Case Studies and Assessment Method 3 Case Study 1. SEA for Water Supply/Sanitation Reform in Colombia 7 Case Study 2. Rapid Water Resources Assessment, Tanzania 13 Case Study 3. SEA for the Plan of Main River Basins, Czech Republic 19 Case Study 4. Nepal Medium Hydropower SEA 25 Case Study 5. SEA for WATSAL Loan, Indonesia 31 Case Study 6. Environmental Flow Assessment, Pioneer Catchment, Queensland 35 Case Study 7. SEA of Mhlathuze Catchment, South Africa 39 Case Study 8. SEA for Water Resources Planning, Palar Basin, India 45 Case Study 9. Nam Theun II Hydropower Development, Lao Peoples Democratic Republic 51 Case Study 10. Transboundary Diagnostic Analysis and Strategic Action Program, 55 Lake Victoria, East Africa Section B: Integration of Environment into Water Policies 61 Four National and State Water Policies 63 Institutions and Governance Series iii SEA case studies 4-9-09.indd 3 4/9/09 12:39:41 PM SEA case studies 4-9-09.indd 4 4/9/09 12:39:41 PM Acknowledgments T his report titled, "Strategic Environmental Guy Alaerts, Arati Belle, John A. Boyle, Ladisy Assessment: Improving Water Resources Chengula, Satish Choy, Santiago Enriquez, Jakob Governance and Decision Making: Case Studies" Granit, Nagaraja Rao Harshadeep, Mudassar Imran, was prepared by Rafik Hirji (ETWWA) and Sumith Pilapitiya, Poonam Pillai, Martin Smutny, Richard Davis (consultant). It, and a complementary Ernesto Sanchez-Triana, Dirk Versfeld, and Ilse Steyl report that synthesizes the case studies (Main Report) to provided information on the various case studies be published separately, are based on the economic and reported in the ESW. sector analysis--Strategic Environmental Assessment and Integrated Water Resources Management--that Maher Abu-Taleb, Paula Posas, Maria Sarraf, Barry was jointly supported by the Environment Department Sadler, Will Fargher, and Albert Tuinhof also provided and Energy, Transport and Water Department and valuable information. completed in June 20071. The authors are grateful for the support they received from all individuals within Helpful comments were provided by Vahid Alavian, and outside the Bank. Stefano Pagiola, Salman Salman, Charles di Leva, Harshadeep Nagaraja Rao, Winston Yu, Daniel Gross, The economic and sector work (ESW) team comprised Harvey van Veldhuizen, and Xiaokai Li at the project of Rafik Hirji (Task Team Leader, ETWWA), Richard concept review meeting. Barbara Miller, Jakob Granit, Davis (consultant), Kisa Mfalila (consultant), Marcus Alessandro Palmieri, and Salman Salman, provided Wishart (YP, AFTU1), Fernando Loayza (strategic valuable comments for the ESW decision meeting. environmental assessment specialist, ENV), and Bob Livernash (consultant). The production of this Ernesto Sanchez-Triana (SASES), Jiri Dusik (SEA report was supported by the Bank Netherlands Water expert, Czech Republic), and Harshadeep Nagaraja Rao Partnership (BNWP). (AFTNL) were peer reviewers of the ESW. Laura Tlaiye and James Warren Evans provided overall guidance to the ESW. Kulsum Ahmed provided guidance during development of the project concept and facilitated access to the SEA team and experts to support the overall process. Michele de Nevers, Abel Mejia and Jamal Saghir supported the preparation of 1 this report. The ESW is available electronically in the World Bank SEA Toolkit. Institutions and Governance Series v SEA case studies 4-9-09.indd 5 4/9/09 12:39:41 PM SEA case studies 4-9-09.indd 6 4/9/09 12:39:41 PM Foreword The World Bank's 2004 Water Resources Sector decision making--policies, legislation, strategies, plans, Strategy advocated a re-engagement in "high risk and and programs. SEA is also a process for improving high reward" water infrastructure, based on a better public policy design and good governance of natural understanding of the vulnerabilities of poor nations to resources (Ahmed and Sanchez-Triana, 2008). This climate variability and climate change, an improved report highlights the opportunities offered by SEAs understanding of the role of water in growth and for addressing not only the problems that arise when poverty alleviation, lessons learned from the World environmental considerations are delayed until project Commission on Dams, the global experience in stage, but for improving the inclusion of environmental Integrated Water Resources Management (IWRM) considerations into IWRM practice. implementation, and the Bank's experience on water and environmental issues. In spite of this Strategy's The report analyzes 10 global case studies of SEAs in support for the principles of IWRM, it was becoming the water sector, four national and state water policies, clear that there was limited implementation of IWRM and an in-depth pilot case study of water reform in a in practice (especially with respect to environmental developing country (Tanzania). This analysis shows sustainability) in developing countries. SEA implementation promotes some important IWRM objectives. In short, this alternative route to introducing The establishment of the Sustainable Development environmental considerations into strategic water Network (SDN) has further elevated the Bank's resources decision-making may help overcome the commitment to environmental responsibility. SDN impediments that IWRM has faced in moving from the promotes the mainstreaming of the environment policy level into practice. and entrenches environmental sustainability as a core element of the Bank's work. To realize its goals, greater The report was prepared as a collaborative effort of two emphasis will need to be placed on mainstreaming the SDN Departments--the Environment Department environment into upstream processes such as policy, and the Energy, Transport and Water Department-- programs, and sector-wide investment dialogue. of the World Bank. It recommends a framework for expanding use of SEAs for mainstreaming In its 2001 Environment Strategy, the Bank committed environmental considerations in water resources policy, to use strategic environmental assessments (SEA) to legislative and institutional reforms, planning, and address environmental concerns at the strategic levels of investment decision-making. James Warren Evans Jamal Saghir Director Director Environment Department Energy, Transport and Water Department Institutions and Governance Series vii SEA case studies 4-9-09.indd 7 4/9/09 12:39:41 PM SEA case studies 4-9-09.indd 8 4/9/09 12:39:42 PM Executive Summary1 T he overall goal of this report is to help water it is not being put into practice in a comprehensive resources and environment professionals within way. Typically, elements of IWRM are implemented the Bank and client countries use SEAs to independently to suit requirements. Because of this effectively implement the principles of IWRM. the Water Resources Sector Strategy suggests that The report contains four elements: (1) a review of SEA "principled pragmatism" be used in implementing support for IWRM, (2) an analysis of 10 case studies IWRM. Even where some IWRM elements are being and four water policies, (3) an in-depth pilot study of implemented, there is little evidence that IWRM water sector reform in a developing country, and (4) a adequately incorporates environmental sustainability. framework for enhancing the use of SEAs in integrated water resources management. The main findings of Strategic environmental assessment (SEA) is an these elements are summarized below. environmental planning tool for improving decision making at the strategic level of policies, legislation, strategies, plans, and programs (PLSPP). SEAs include SEA Support for IWRM a range of instruments that assess the potential impacts Integrated water resources management (IWRM) has of PLSPPs and the institutional capacity to integrate been the accepted paradigm for efficient, equitable, and environmental, social and economic considerations sustainable management of water resources since the and good governance. Relatively few SEAs have been 1990s. It recognizes the dual relationship between the applied in the water sector, and few regions have environment and water resources. The environment is introduced systematic procedures for conducting SEAs both a water-using sector (as in a National Park or a in the water sector. habitat for fish or other species) and the resource base (wetlands, watershed, and recharge area) a provider of Because IWRM and SEAs share many concepts and ecological and hydrological services that maintain the characteristics, SEAs potentially offer a complementary water resources in a fit state for all sectors. The GWP tool to IWRM to introduce and integrate promotes IWRM as a process for improving water environmental considerations into water resources governance and management. policy, planning, and management, and thereby support IWRM. SEAs offer these opportunities at many The World Bank has embraced IWRM as a framework levels--developing a national or sector water policy, for implementing its 2004 Water Resources Sector enacting water legislation, drawing up river basin Strategy and re-engaging in high risk/high reward water infrastructure in an environmentally responsible 1This common executive summary covers the main report manner (World Bank 2004). Developing nations have (published separately) and case studies (this report) for the analysis increasingly accepted IWRM at the national policy and titled, "Strategic Environmental Assessment: Improving Water Resources Governance and Decision Making." From hereon, the strategy levels. However, the evidence indicates that term "report" refers to both the main report and case studies. Institutions and Governance Series ix SEA case studies 4-9-09.indd 9 4/9/09 12:39:42 PM Strategic Environmental Assessment -- Improving Water Resources Governance and Decision Making plans, establishing a river basin institution, formulating Procedural factors and implementing a national water supply, irrigation or energy master plan, identifying hydropower, Several lessons about analytic procedures were noted. urban water supply or irrigation investment options, First, the terms of reference must be clear and well supporting transboundary water resources management formulated for the SEA to be influential. Second, the and development, or instituting and implementing SEA team composition needs to be balanced between sectoral strategies or programs. the sectors contributing to the study, and the team leader needs to have a breadth of understanding of the inter-connections between economic, social, and SEA Case Studies and Water Policies environmental factors. Third, the assessment methods This second section describes an analysis of need to be suited to the characteristics of the issues. institutional drivers and the procedural and Consultation is essential but does not always need to substantive factors that promoted success in SEA. be widespread; however, it is important to include Ten geographically diverse case studies were selected the stakeholders who will be affected by the decision. for analysis from a diversity of sectors and different The consultation and participation process should be decision levels--strategy, program, and plan levels. planned to ensure that participants are well briefed and Seven were from Bank-funded projects2. The three are involved at the appropriate stages of the process. non-Bank cases were from Australia, Czech Republic, and South Africa The spatial scale of the SEA matters. If the area is large, appropriate tools need to be used to conceptualize Institutional drivers of SEAs problems and to engage all stakeholders. No judicial drivers were used in the case studies, SEAs can span strategic scales. Institution-centered while procedural (e.g. legislative requirements) and SEAs typically examine the capacities of institutions, evaluative (i.e. oversighting institution) drivers were the relevance and consistency of policies and legislation, used infrequently. Instrumental drivers, such as mechanisms to involve vulnerable groups, and political recommendations from external institutions such as economy factors that affect the implementation of plans the World Bank were commonly relevant although and programs that trigger the SEAs. they were often used voluntarily rather than as formal requirements. Professional drivers were often important, Substantive factors and public pressure was also a significant factor. There were multiple drivers for all case studies. Procedural The process of interacting with different stakeholders, drivers were not effective unless accompanied by public examining causative influences and longer term pressure or strong evaluative drivers. consequences, and integrating environmental, social, and economic considerations is as important as the There were a number of cases where SEAs were initiated, not from the six types of drivers, but because 2 of a belief by government or institutions that it was Water and Sanitation Sector SEA, Colombia; Rapid Water Resources Assessment, Tanzania; SecEA of Hydropower the correct approach to take. These instances were Development Program, Kingdom of Nepal; SEA of Water usually encouraged and supported by a development Resources Sector Adjustment Loan, Republic of Indonesia; partner. Trust between the development partner and SEA of Palar Basin, India; SIA and CEA of Nam Theun II Hydropower Project, Republic of Laos; and Transboundary the government was an important factor when the Diagnostic Analysis/Strategic Action Program, Lake Victoria governments were venturing into new procedures. Basin, East Africa. x Environment Department Papers SEA case studies 4-9-09.indd 10 4/9/09 12:39:43 PM Executive Summary output from the SEA study. This process should Lessons on SEA Support for IWRM commence as early in the preparation of the PLSPP as possible and continue after the study has been The major principles of IWRM are: multisectoral completed. water management, participation, and use of economic instruments. The case studies illustrated how the SEAs The most effective case studies brought fundamental had contributed to all three principles. changes in national policies, laws and institutions. They were undertaken at opportune times when there was Multisectoral water management political receptivity to change. In some cases, economic arguments played a key role. However, these changes Two cases explicitly contributed to implementing this usually took many years. Development partners and principle. All cases raised environmental sustainability the governments needed to stay committed over this questions. A number of SEAs were undertaken by extended period. multisectoral task forces, potentially contributing to a multisectoral approach to water resources management. SEAs need not be environment-led. Some effective All but one case study considered multisectoral impacts. SEAs were primarily driven by factors other than the environment, although environmental sustainability Some SEAs had long-term influence in supporting played an important role. integrative approaches to water sector management. The Tanzanian RWRA study catalyzed changes Some successful SEAs led to water policy reforms and in policy and legislation that have subsequently full implementation of water-related programs such as supported multisectoral approaches. The Palar Basin the establishment of river basin institutions. SEA led to a rollout of water resources SEA studies across Tamil Nadu, India. The Colombia WSS Effective SEAs were often relatively cheap, costing less SEA led to progressive water sector reforms and than $100,000. multisectoral involvement. Lessons from water policies Participative management No SEA case studies of water policy were identified. Some institutions, initially skeptical of stakeholder To fill this gap, water policies of three nations involvement, became advocates of increased stakeholder (South Africa, Tanzania, and India) and one state participation as a result of their experiences during (Victoria, Australia) were examined for their the SEA. In two cases, this interest led to legislative inclusion of environmental considerations. All four requirements for public participation. These policies recognized the legitimacy of water for the outcomes of the SEAs contributed to improved public environment, but the level of detail and commitment governance. A number of the SEAs contributed to to implementing this recognition varied significantly. decentralization of water resources institutions and the The Indian policy mentioned criteria for this but establishment or strengthening of participative river provided no detail. The South African and Tanzanian basin institutions. policies devoted greater attention to environmental considerations. The Victorian policy stood out because it was entirely based on the concept of environmental Economic instruments sustainability. The SEAs did little to encourage the use of economic instruments, although one advocated charges to Institutions and Governance Series xi SEA case studies 4-9-09.indd 11 4/9/09 12:39:43 PM Strategic Environmental Assessment -- Improving Water Resources Governance and Decision Making control water use and the discharge of pollution, and A Framework for Expanding the Use of another advocated permits for fishing and its export, SEAs for IWRM in order to provide a source of finance for water resources operations. There was no attention to demand An important part of the SEA should be focused management. One case study was focused on improving on assessing the underlying institutional and private sector investment, including a revision of and governance factors. This is important because policy adoption of less stringent and more defensible water and institutional changes take time and are typically quality standards. driven by incremental changes in behavior and incentives. Assessing institutional factors helps to better understand, design and incorporate these aspects in the In-Depth Pilot Study of Water Sector eventual SEA recommendations. Reforms in Tanzania3 Given the wide range of strategic levels of decision An in-depth water sector reform pilot study on making-policies, legislation, strategies, plans, and Tanzania complemented the analysis of global case programs it is not sensible to have a single, all studies and water policies. A series of water sector encompassing template for conducting SEAs for use crises in the 1990s, many of which contained by Bank operations staff. Appendix C (of the Main environmental aspects, brought home to water Report) provides a range of possible environmental resources managers the need to implement the aspects that could be included in the terms of principles of IWRM, particularly multisectoral reference (TORs) for an SEA for water resources management, decentralized decision making, PLSPPs. SEAs can also be used to examine sectoral stakeholder participation, and inclusion of policies and laws for consistency with water resources environmental water requirements. These principles and support for environmental considerations, and were embodied in the 2002 Tanzanian National Water the capacity within a country for recognizing and Policy. Six water-related SEAs had already been carried managing water related environmental issues. out within the evolving institutional environment of Tanzania, even before the 2004 environmental A framework for the Bank to expand the use of SEAs legislation required SEAs -- the water and energy to mainstream environmental concerns into water sectors are identified as two of four priority sectors in resources management could consist of four parts: the legislation. · Bridge disciplinary perspectives. Environmental and More recent experience in Tanzania has shown water resources professionals could widen their that it is not sufficient to have just the water sector understanding so that the compatibilities between sensitized to environmental issues and to have their disciplinary terminology, techniques, and legislative requirements for SEAs. Other water-using approaches are fully understood, appreciated, and sectors (e.g., energy, agriculture, livestock, etc.) exploited. also need to reform and harmonize their policies, · Establish an enabling environment. An enabling legislation, and strategies if these advances in water environment should be developed where sectoral sector management are to be effective. SEAs would be policies are harmonized to (a) mutually support suitable instruments for coordinating these changes IWRM principles, including environmental across sectors. protection; (b) undertake SEAs where appropriate; (c) allow a range of SEA types to be used to meet different needs; and (d) promote stakeholder 3 This section is based on a full chapter of the main report. participation in SEAs. Transboundary SEAs xii Environment Department Papers SEA case studies 4-9-09.indd 12 4/9/09 12:39:44 PM Executive Summary require a mutually agreed plan of action and important for staff from sectoral institutions to should be overseen by a high-level committee know how to work in multi-disciplinary teams to (UNECE 2003). The Bank can help develop this conduct SEAs. Good quality water resources data enabling environment by using its influence and is needed to underpin SEAs in this sector. knowledge to help introduce SEAs and build up · SEAs need to be well planned. Experienced team experience. leaders should be able to deal with the diversity of · Build capacity. To ensure that SEAs are properly sectoral issues arising in IWRM; TORs should be supported, an understanding needs to be clear; analytical procedures should be suited to the developed, particularly among senior decision problem; and the stakeholder participation should makers, of the benefits of SEAs. It is also be carefully planned. Institutions and Governance Series xiii SEA case studies 4-9-09.indd 13 4/9/09 12:39:44 PM SEA case studies 4-9-09.indd 14 4/9/09 12:39:44 PM Section A: Case Studies of SEAs in the Water Sector SEA case studies 4-9-09.indd 1 4/9/09 12:39:44 PM SEA case studies 4-9-09.indd 2 4/9/09 12:39:44 PM Overview of Case Studies and Assessment Method Case Study Selection separately. A total of 10 case studies were selected (see Map 1). These were six Bank-funded case studies All Bank-funded SEA and SEA-type studies in the (including a Bank-implemented GEF project) and one water sector were scanned, and those undertaken since study funded by the Asian Development Bank and the 1995 with good documentation in English and staff World Bank. These were supplemented by a water-sector available for interview were selected. Multiple examples strategic study from a developed country (Australia), one of the same type of study (e.g. GEF TDAs/SAPs) were from a country in economic transition (Czech Republic), dropped. Attempts were made to balance sectoral and one from a developing country (South Africa). and geographical coverage. CWRASs were examined Map 1. The 10 SEA case studies analyzed in this report. Location of Ten Case Studies of SEAs in the Water Sector National Policy Case Studies Basin/Catchment Plan Case Studies Project Case Study Transboundary Basin Case Study SEA of Plan for Main River Basins, Czech Republic (National) SecEA of Hydropower Development Program, Kingdom of Nepal (National) SIA and CEA of Nam Theun II Hydropower Project, Republic of Laos (Project) SEA of Palar Basin, SEA of Water Resources India (Basin) Sector Adjustment Loan, Water and Sanitation Republic of Indonesia (National) Sector SEA, Transboundary Diagnostic Analysis/ Colombia (National) Rapid Water Strategic Action Program, Resources Assessment, Lake Victoria Basin, Tanzania (National) East Africa (Basin) SEA of Mhlathuze Catchment, South Africa (Basin) Environmental Flows Assessment, Water Allocation Plan, Pioneer Catchment, Australia (Basin) DECEMBER IBRD This map was produced by the Map Design Unit of The World Bank. The boundaries, colors, denominations and any other information 36664 2008 shown on this map do not imply, on the part of The World Bank Group, any judgment on the legal status of any territory, or any endorsement or acceptance of such boundaries. Institutions and Governance Series 3 SEA case studies 4-9-09.indd 3 4/9/09 12:39:52 PM Strategic Environmental Assessment -- Improving Water Resources Governance and Decision Making There were no SEAs of water resources policies, Mhlathuze SEA had a second objective--to explore the although some strategy and program SEAs examined potential of SEAs for catchment water allocation plan- national policies, legislation, and regulations. ning across South Africa). The remaining three SEAs-- Nepal Hydropower SEA, Tanzanian RWRA, and Palar Impact and institution-centered SEAs occurred at Basin SEA--were not used to either assess draft instru- both the program and strategy levels. The only SEA at ments or to provide specific environmental input into the plan level considered only biophysical impacts of a new instrument about to be developed. Instead their development scenarios. The Nam Thuen II SEAs4 were purpose was to better understand, clarify and structure unusual in that they were part of the environmental complex situations and develop a framework for action. assessments for a specific project. Although project- specific, they have been included as program The SEAs also diverged considerably between those SEAs, since these particular studies examined the that relied on formal analytical methods and those sustainability of programs of development beyond the that re;ied on participative methods. For example, the hydropower plant itself. Pioneer Catchment study used a rigorous analytical procedure, the Benchmark methodology, to assess The case studies (Table A.1) illustrate the diversity of environmental flow needs. It was conducted as a origins, sectors, purposes, and methods for the SEAs. scientific exercise with no stakeholder input. The The SEAs covered spatial scales from small catchments Tanzanian RWRA study used existing regional water to large transboundary regions. The Lake Victoria master plans, a national energy master plan, a national Environmental Management Project Phase II (LVEMP- irrigation master plan, and other data and information, II) TDA/SAP was the only case study that was fully coupled with the judgment of 11 professionals from transboundary in nature, although the Nam Theun II several government ministries to identify priority SIA also looked at proposed sectoral developments within sectoral issues and river and lake basins requiring countries bordering Laos and their strategic implications priority action. The WATSAL SEA, on the other for the proposed Nam Theun II development. SEAs hand, relied upon stakeholder input to formulate its cannot always be assigned easily to a particular strategic recommendations. Some studies combined analytical level. Although the Colombia SEA was initiated to and stakeholder-driven approaches. The Nepal support a national sectoral program, it examined the Hydropower SEA used a formal screening and ranking adequacy of specific sectoral policies and legislation. methodology to identify the most promising options in a power development program, but used stakeholder These case studies illustrate how SEAs can serve diverse input to establish the suite of hydropower sites to be purposes (OECD 2006). Two of the 10 SEAs (Czech assessed, the criteria to be used for the assessment, and Republic, Nam Theun II) were established to assess the the weights to be given to the different criteria. potential social and environmental impacts of a specific draft instrument--an impact-centered SEA--and two The Pioneer Catchment was the only study that more (Indonesia WATSAL and Colombia WSS) assessed was restricted to environmental issues; the rest the institutional structures within which a proposed integrated environmental issues with development and program was to operate--institution-centered SEAs. management needs related to other water using sectors. The other six SEAs were undertaken before a specific All the other studies included social issues (health instrument had been formulated. Three--the Pioneer and Mhlathuze catchment studies and the Lake Victo- 4 ria TDA/SAP--were used to provide information for a Both a cumulative impact assessment (CEA) and a strategic impact assessment (SIA) were undertaken for the Nam Thuen II plan, program, or strategy about to be developed (the project. 4 Environment Department Papers SEA case studies 4-9-09.indd 4 4/9/09 12:39:54 PM Overview of Case Studies and Assessment Method Table A.1. Characteristics of Ten Case Studies of SEAs in the Water Sector Strategic Number Case Study Sector and sub-sector Level Purpose1 Scale 1 Water and Sanitation Sector Water Supply and Sanitation Program Assessment National SEA, Colombia · urban and rural water supply · wastewater treatment 2 Rapid Water Resources Water Resources Strategy Structuring National Assessment, Tanzania · urban and rural water supply · irrigation (Agriculture) · hydropower (Energy) · environment (Fisheries, Wetlands) 3 SEA of Plan for Main River Water Resources Strategy Assessment National Basins, Czech Republic · flooding · wastewater treatment · water allocation 4 SecEA of Hydropower Energy Program Structuring National Development Program, · hydropower · environmental water Kingdom of Nepal · catchment protection 5 SEA of Water Resources Water Resources Program Assessment National Sector Adjustment Loan, · flooding · urban and rural water Republic of Indonesia · catchment degradation supply · irrigation · environmental water 6 Environmental Flows Environment Plan Information Basin Assessment, Water Allocation · biodiversity · irrigation Plan, Pioneer Catchment, Australia 7 SEA of Mhlathuze Catchment, Water Resources Plan Information Basin South Africa · rural water supply · irrigation · forestry · industry 8 SEA of Palar Basin, India Water Resources Strategy Structuring Basin · urban and rural water supply · industrial wastewater · urban wastewater 9 SIA and CEA of Nam Energy Program Assessment Regional Theun II Hydropower Project, · hydropower · urban and rural Republic of Laos · irrigation water supply · flood protection · fisheries · industry 10 Transboundary Diagnostic Water resources Strategy Information Trans- Analysis/Strategic Action · catchment protection · urban and rural boundary Program, Lake Victoria Basin, · fisheries water supply East Africa · transport · hydropower · tourism Note 1:"Assessment" means the SEA assessed either environmental impacts (impact-centered) or environmental capacity (institution-centered); "information provision" means the SEA preceded the PLSPP and was used to provide environmental information for it; "structuring" means the SEA was used to structure a complex situation. issues in the case of the Czech Republic SEA) and two The analysis was based on both documentation and (Nepal Hydropower study, Colombia WSS study) interviews. Documentation was initially obtained included explicit financial/economic considerations from published sources, including the archives in in their assessment of issues and recommendations for the case of the Bank-led case studies. Interviews sustainable options. were then arranged with the team leaders of the projects where these were available and with other Analytical Method team members where the team leader was not available. The interviews were either in person or The case studies were analyzed to identify their by telephone. The interviews particularly focused institutional drivers and to assess the extent to which on the motivations for the study and its subsequent they met the procedural and substantive criteria influence, since this information was seldom proposed by IAIA. This analysis provided insights into documented. Additional documentation was the factors that made some SEA studies successful and collected during these interviews. the circumstances in which the success occurred. Institutions and Governance Series 5 SEA case studies 4-9-09.indd 5 4/9/09 12:39:55 PM SEA case studies 4-9-09.indd 6 4/9/09 12:39:55 PM Case Study 1. SEA for Water Supply/ Sanitation Reform in Colombia Background5 involvement in large and some medium-sized cities had resulted in an expansion of coverage, increases in service Colombia has achieved high levels of water supply continuity, and more efficient utility management. and sanitation (WSS) service connection, with However, the reforms did not extend to smaller cities approximately 44 percent and 25 percent of the rural and rural areas. Furthermore, the sector's regulatory population connected to water supply and public framework remained inadequate, often constituted sewerage or septic tanks in 1997 respectively. At an obstacle to further investment, and neglected the that time, 84 percent of the urban population was sector's social and environmental considerations. connected to water supplies and about 75 percent had sewage connections. By 2000, urban coverage rates had In 2000, the Government of Colombia prepared a reached 90 percent and 85 percent for water supply project proposal for the World Bank to help increase and sewage, respectively. However, the good coverage private service involvement in WSS services in rates mask shortcomings in the quality of service. medium-sized cities and smaller municipalities, and to Water rationing and intermittent supplies are common improve the financial sustainability of utilities where in most water supply systems; only slightly less than the private sector had already become involved. Given 50 percent of all drinking water is treated; there is the issues facing the WSS sector and following earlier insufficient pressure in the water supply systems, adding experience in Argentina, the Bank suggested that an to the risk of bacterial contamination; sewage collection SEA be undertaken as part of the project preparation. systems do not have sufficient hydraulic capacity to handle wastewater flows; and only about 5 percent of wastewater receives any kind of treatment. In addition, The SEA Study private sector participation (PSP) in the water sector The SEA was undertaken by a team of consultants with is lower than anticipated. The reasons for the slower backgrounds in engineering, economics, and law. The than expected spread of PSP are twofold: (1) security Ministry of Economic Development, responsible for problems in the country deter foreign operators and investors; and (2) carrying out PSP processes is complex and difficult and discourages PSP.6 5This case study draws heavily from Sánchez-Triana E. and S. Enríquez. 2005. "Using Strategic Environmental Assessments Under the 1991 constitution, municipalities have for Environmental Mainstreaming in the Water and Sanitation the responsibility for providing WSS services. The Sector: The Cases of Argentina and Colombia." Sustainable Development Working Paper No. 26. Latin America and constitution provides the legal framework for reforms Caribbean Region, Environmentally and Socially Sustainable in the water sector by clearly separating service Development Department. Washington, DC: World Bank. 6 provision and policy making, and by allowing PSP World Bank. 2001. "Colombia Water Sector Reform Assistance Project, Project Appraisal Document." Washington, DC: World in the infrastructure sector. By 2000, private sector Bank. Institutions and Governance Series 7 SEA case studies 4-9-09.indd 7 4/9/09 12:39:55 PM Strategic Environmental Assessment -- Improving Water Resources Governance and Decision Making water supply and sanitation services, and the Ministry was oriented toward the execution of specific investment of Environment formed an advisory committee projects, and environmental, economic, and social that would set the sector's priorities, oversee the aspects of water were neglected. The regulatory implementation of agreed solutions, build consensus framework developed by the Drinking Water and Basic on environmental aspects, and address emerging issues. Sanitation Regulatory Commission was too intrusive, The SEA focused on the deterioration of water quality and subsidies distorted financial performance. And the and inefficient water use associated with WSS, and on Public Service Superintendence, which supervised legal the impacts that would be associated with the works to compliance, was unable to supervise utilities, which be financed under the proposed project. numbered over 1,700 and had very heterogeneous characteristics. Based on the earlier experiences in Argentina, the team realized that the institutional impediments The SEA recommended that policy reforms were to improvements in WSS services, including the needed. These included modifications to water reluctance of the private sector to invest outside of major pollution charges and wastewater discharge standards, metropolitan areas, would not be uncovered using a and corrections to the deficiencies associated with conventional impact-centered SEA. Instead, the SEA EIA regulations, with the aim of reducing the legal would need to investigate the policy environment and the uncertainty generated by environmental regulations and way in which its application by government institutions attracting private investment. The proposal included affected the decisions of the private sector. This required mechanisms to streamline and improve project an analysis of the positions, interests, and interrelations assessment, including environmental impact assessment of decision makers and other relevant actors. Solutions and public participation, and to strengthen the would need to take account of the realities of the environmental capacities of the Ministry of Economic political environment, including the decision-makers' Development, the municipalities, and the water utility political or normative views, realistic opportunities for operators. The consultants provided recommendations environmental mainstreaming, the degree of support to improve transparency and accountability and the that could be raised among different stakeholders, and ability of the Ministry of Environment to oversee the country's capacity to implement changes. Not all the implementation of national policies in regional policy problems can be fixed at a stroke, and reforms jurisdictions. need to be supported through ongoing dialogue between governments and development partners. The SEA recommendations were accepted by the Ministries of Economic Development and The study found that three regulatory instruments-- Environment, albeit reluctantly by the latter ministry. cumbersome procedures for obtaining environmental Both ministries agreed to work jointly to implement licenses, poorly designed pollution charges, and high the SEA action plan, harmonize existing legislation, and inappropriate environmental standards that streamline environmental license processes for water required large tariff increases--discouraged private projects, evaluate and mitigate environmental risks sector involvement and hindered the expansion of in operational contracts, and involve the relevant WSS coverage. In addition, municipalities lacked the authorities in developing new tariff schemes that would technical capacity to develop proposals for PSP that incorporate well-defined environmental charges. As were attractive to the private sector. a result of the SEA, the World-Bank-funded project included an environmental component that contained There were also serious deficiencies in national some of the SEA's recommendations. However, the institutions. The Ministry of Economic Development reforms did not sufficiently reduce barriers for private 8 Environment Department Papers SEA case studies 4-9-09.indd 8 4/9/09 12:39:56 PM Case Study 1. SEA for Water Supply/Sanitation Reform in Colombia investment. For instance, the modifications introduced resistance from stakeholders within the environmental to the pollution charges were superficial. Critical sector, who initially limited the scope of the proposed aspects, such as the selection of the charged pollutants reforms.9 However, the reforms are continuing to and the methodology for setting abatement goals, progress as dialogue continues, largely as a result of a remained untouched. strong coalition of institutional supporters built up by the SEA report. Being able to quantify the economic However, the Bank and the government continued to cost of poor-quality WSS services was an important discuss the SEA recommendations. The assessment for a element in gaining influence, as was being sensitive to subsequent investment loan7 used the SEA, and a DPL the political economies of the reforms and accepting for sustainable development8 included several of the that not all reforms could be carried out immediately. SEA recommendations such as the amendment of the environmental license system and preparation for a new Although the new environmental legislation is not yet water resources management law. A second DPL is in drafted, it may include provisions for SEAs such as the pipeline, and a third is envisaged to further reforms the study described here, to be carried out on other to Colombia's environment and water sectors. policy and strategy proposals and so shift the current reliance on instrumental drivers to national legislative This case study provides a benchmark example of drivers. an institution-centered SEA that was conducted independently of the policies being assessed and that was highly influential in improving environmental Process Competence performance in the water sector. Accountable. The Ministry of Economic Development was clearly the client for the SEA study and, once Institutional Drivers they saw the preliminary findings, they became active champions of the process and advocated the adoption The SEA study was primarily driven by the Bank's of many of the recommended actions. The study was positive experience with an earlier SEA for a WSS undertaken professionally and competently by the investment loan in Argentina (an instrumental driver). consultants within the limited time available. While the And the Bank's standing and leverage in Colombia study was assessed by the government institutions, it persuaded the two principal ministries to participate. was not subjected to an independent verification. The Ministry of Economic Development did not want to undertake any more investigations than strictly Participative. Two nationwide workshops were necessary to comply with the World Bank requirements organized during the study: the first to collect and agreed to participate when assured that the stakeholder perspectives on the scope of the assessment, study would take only a few months. The Ministry and the second to present an advanced draft of the of Environment participated reluctantly because the report and solicit additional comments. The SEA team Ministry of Economic Development's interest in the study was seen as an intrusion onto their (Environment Ministry) territory. 7World Bank. 2005. "Water and Sanitation Sector Support Project in Support of the First Phase of the Water and Sanitation Sector Support Program." Project Appraisal Document. As the study progressed, the ministries became more Washington, DC: World Bank. supportive. The Ministry of Economic Development 8World Bank. 2005. "Programmatic Development Policy Loan accepted the report's conclusions, but the suggested for Sustainable Development." Project Document. Washington, DC: World Bank. environmental regulatory modifications faced strong 9See Sánchez-Triana and Enríquez (2005). Institutions and Governance Series 9 SEA case studies 4-9-09.indd 9 4/9/09 12:39:56 PM Strategic Environmental Assessment -- Improving Water Resources Governance and Decision Making attempted to incorporate the perspectives of vulnerable and technical reforms that would place water sector groups by identifying the sector's environmental management on a more sustainable basis and improve impacts that clearly affected them. In addition, the aspects of environmental oversight of water sector Ministries of Economic Development and Environment investments and operations. held consultations with government agencies, private utility operators, academics, professional associations, Focused. The study focused on the root causes of NGOs, and public defense groups to build consensus the difficulties faced by the WSS sector and collated around the SEA report. The two major ministries were persuasive evidence about the causes of these problems. kept informed of progress and assessed preliminary The issues it focused on--WSS coverage for those findings as the study progressed. outside major cities, improved service, health issues, environmental safety for poorer sections of society--are Iterative. The study was designed to be available in at the heart of sustainable development and the MDGs. time to influence the preparation of the project and, The SEA study took 3 months to complete (although in fact, a component of the project was devoted to discussions on the recommendations continued for implementing some of the SEA recommendations. some years) and cost approximately $28,000. Given The SEA report continued to influence government the far reaching changes triggered by the report and dialogue with the Bank to the point where the the potential environmental and WSS benefits, this structural recommendations were implemented through represents an excellent rate of return. three programmatic DPLs intended to help reform the policy and management of the environment and Influential. The influence of the SEA was far-reaching water sectors. The SEA study documented its findings but not immediate. It engendered debate among and cast them in terms that were relevant to decision stakeholders in the water and environment sectors and makers--in economic and financial terms, in terms of led to progressive changes to the legal and regulatory meeting MDGs, and with a recognition of the political systems, environmental assessment and management, realities operating at the time. and participative processes; in turn, this improved the enabling environment for private sector investment in the water industry. These were supported by a series of Substantive Competence World Bank investment and development policy loans. Integrated. The study went to the fundamental reasons--technical, legal, institutional--for the poor Lessons Learned performance of existing WSS operations and the limited involvement of the private sector. It linked This SEA provides important lessons on the usage of environmental performance to social and health issues SEA rather than on the technical aspects of conducting and, where possible, put these issues in financial terms. them. It turned around the usual approach--"How The study was vertically integrated in that it linked does this policy affect the environment?"--to ask outdated and limited policies and legislation to the "How do the environmental standards and procedures poor performance of the utilities and the regulatory impede both development policies and environmental institutions and, ultimately, to the inadequate service protection?" It illustrates how an environmental received by consumers and limited coverage of WSS instrument can be used to further development and services in medium-sized cities and rural areas. poverty alleviation as well as environmental protection by putting its findings and recommendations in terms Sustainability-led. The major outcome of the SEA that are meaningful to politicians and senior decision study was the development of a plan of institutional makers. This includes use of economic and financial 10 Environment Department Papers SEA case studies 4-9-09.indd 10 4/9/09 12:39:57 PM Case Study 1. SEA for Water Supply/Sanitation Reform in Colombia arguments and linkages to national goals such as and working patiently over a number of years to poverty reduction and MDGs. While this approach implement reforms. The influence of an SEA can be felt led to a reduction in the stringency of environmental a number of years as opportunities arise to implement standards, it also made them more relevant and components of a reform program. acceptable. The assumption was that it was better to have standards that industry regarded as relevant and Finally, it clearly illustrates that an SEA need not achievable than ones that were widely ignored as being be costly or time consuming to be influential if it is irrelevant and unachievable. focused on the core questions, builds a constituency, and presents its findings in a way that is relevant to It also illustrates the importance of building support decision makers. among a wider constituency than just the lead agency Institutions and Governance Series 11 SEA case studies 4-9-09.indd 11 4/9/09 12:39:57 PM SEA case studies 4-9-09.indd 12 4/9/09 12:39:57 PM Case Study 2. Rapid Water Resources Assessment, Tanzania Background supply, and cost recovery for urban water supply. However, the policy focused on development aspects Tanzania's early post-independence period was of the water and placed little emphasis on conservation focused on the development of rural and urban water and management of the water resource itself. supplies with the goal of access to safe water for all citizens by 1991. The Water Utilization and Control Apart from the difficulties with water supply and Act (1974) and subsequent amendments provided sanitation, there were growing water use conflicts in the the legal framework for the sector, including water Pangani and Rufiji river basins, where most of Tanzania's allocation, water pollution control, water user charges, irrigated agriculture and hydropower generation is water quality standards, and river basin water offices. concentrated. Small-scale conflicts occurred between Water was treated as a free good, planned centrally farmers upstream and downstream of one another. On a by the ministry responsible for water and delivered larger scale, there were conflicts between the agriculture through regional water engineers, who reported to the and hydropower sectors because irrigation takes place ministry. Seventeen of Tanzania's 20 regions had a water upstream of hydropower plants in the Rufiji and Pangani master plan, which focused on the engineering and basins, and is poorly regulated and controlled. In the development aspects of rural and urban water supply. Pangani basin, the construction of the New Pangani Falls Development was under threat from a serious A review in 199310 of the water supply and sanitation water shortage even before its construction had been program showed that, after nearly 20 years, water completed. This prompted the Norwegian Government, supply coverage remained low, with only 42 percent the primary funding source, to reconsider supporting of the rural and 54 percent of the urban population the power sector in Tanzania. There were also conflicts having access to safe and potable water supply. Not between irrigation and environment and hydropower only was coverage low, but the quality of service and environment in the Ruaha Basin, and these had was also deficient. Shortage of water coupled with generated national and international attention. inadequate sanitation facilities and sewerage systems and solid waste disposal facilities has led to increasing Each of the three major sectoral water users--water environmental pollution and health hazards. The supply/sanitation, agriculture, and hydropower--had reasons for this poor performance included non- formulated their water use plans independently, and involvement of the beneficiaries, inappropriate there was no integration between the plans. None of technologies, and continued centralization. In response, the government adopted a National Water Policy in 1991 that placed emphasis on community 10Njau, F.Z. 1994. "Tanzania's Water Sector Review Process." In participation, decentralized management, use of Rafik Hirji and Franqois-Marie Patorni (eds.). Proceedings of the Seminar on Water Resources in Tanzania. Washington, DC: World appropriate technologies, cost sharing for rural water Bank. Institutions and Governance Series 13 SEA case studies 4-9-09.indd 13 4/9/09 12:39:57 PM Strategic Environmental Assessment -- Improving Water Resources Governance and Decision Making the plans addressed water use for the environment, Water, Energy, and Minerals. It was implemented by even though the environment (through sectors such as an inter-disciplinary and multisectoral team led by the fisheries and natural resources) contributes substantially Ministry of Water, and with staff from the Ministries of to the national economy and livelihoods of many Agriculture, Environment, Forestry, Natural Resources, Tanzanians. and Health. Consequently, it was recognized that an integrated The RWRA concluded that, across the country, there water resources management strategy needed to be was adequate water available for the foreseeable future developed to guide both the medium- and long- although there were potentially water shortages and term development and management plans for the emerging conflicts over water use in specific parts of water sector. The strategy would need to encourage some river basins. However, there were serious issues cooperation among different ministries and institutions arising from inadequate water supply and sanitation and be environmentally sustainable. in both urban and rural areas, inadequate enforcement of water rights, lack of control over water pollution, The Rapid Water Resources Assessment degradation of aquatic ecosystems, weak water management institutions, lack of policy on shared A three-phased approach was used to develop and watercourses, inefficient water use in the irrigation implement the IWRM strategy. The first phase, in subsector, conflicts between water users in stressed conjunction with the water supply and sanitation basins, and outdated legislation controlling water review, was initiated by a Rapid Water Resources resources. The RWRA also found serious inadequacies Assessment (RWRA) focusing on water resources to in inter-sectoral coordination of water use and identify the issues and to develop an action plan. The management, limited representation of stakeholders RWRA commenced early in 1994, with technical in decision making, insufficient incentives for efficient and financial support from DANIDA and the World water use, occurrences of serious water pollution, and Bank.11 Its objectives were: very limited data on which rational allocation decisions could be based. · To integrate hydrological considerations, cross- sectoral water uses, land use, water quantity, and At the basin level, the RWRA identified four out of the environmental and public aspects in water and nine basins as priority basins requiring urgent action. sanitation The Rufiji and Pangani basins faced serious water · To inventory and analyze existing information allocation problems and acute water use conflicts, the to assess surface water and subsurface water Wami-Ruvu Basin faced problems over unregulated availability and sectoral land and water, including supply and growing needs for Dar es Salaam water environmental issues supply, while the Lake Victoria Basin experienced · To establish national and basin-wide priority issues serious environmental degradation due to increasing on river basin management and the formulation of pollution, wetlands degradation, overfishing, and strategies that will address those issues increasing watershed degradation. The RWRA12 was undertaken as a desk study based on 11The World Bank's 1993 Water Resources Management Policy the regional water master plans, national energy and Paper provided a framework to guide these reforms. irrigation plans, and other cross-sectoral information 12Ministry of Water, Energy and Minerals, United Republic of (including information on hydrology, health, wetlands, Tanzania. 1994. "Rapid Water Resources Assessment Report." Dar es Salaam, Tanzania: Ministry of Water, Energy, and and pollution). It was carried out for the Ministry of Minerals. 14 Environment Department Papers SEA case studies 4-9-09.indd 14 4/9/09 12:39:58 PM Case Study 2. Rapid Water Resources Assessment, Tanzania The RWRA recommended that introduction of an including in all urban areas, all districts, and in all nine integrated approach to water resources management be river and lake basins. implemented in two subsequent phases--initially to support policy, legal, and institutional reforms at the The RWRA was primarily an institution-centered SEA national level and management actions in the priority with a focus on the underlying policy and institutional river basins (Rufiji, Pangani, Ruvu-Wami and Lake reasons for the poor performance of the water supply Victoria basins), and subsequently throughout the and sanitation program, the conflict over access to country. The priority tasks at river basin level were: water, and the broader water resources challenges. Its purpose was to structure a water development and · Rufiji Basin ­ a comprehensive water resources conservation strategy to be implemented over the management plan, including watershed subsequent decade. management · Pangani Basin ­ a comprehensive water resources management plan, including watershed Institutional Drivers management, a water quality and pollution The World Bank assisted the government in the monitoring program, and incentives for design of the RWRA, but there was no procedural or groundwater development instrumental driver for the study. Rather, the primary · Ruvu/Wami Basin ­ a comprehensive water drivers for the study were a combination of local resources management plan that makes the water and external factors. The RWRA was conceived at a supply for Dar es Salaam a priority time when local awareness on water resources issues · Lake Victoria Basin ­ a detailed survey of pollution was heightened because of the nation-wide drought sources and abatement proposals, a plan on the and water crises in the Pangani and Rufiji basins, utilization of Lake Victoria waters, and a water which impacted many key sectors of the economy quality monitoring program and livelihoods of the people. In addition, Tanzanian professionals, through participation in major global The recommendations of the review were accepted meetings, became aware of the growing international by the Government of Tanzania and subsequently consensus on responding to water resources challenges, implemented through a series of projects supported such as those facing their nation. In 1993, the World by the World Bank and bilateral donors. The national Bank had issued its Water Resources Management Policy water policy was revised in 2002; new water resources calling for a more holistic approach to the management legislation was drafted; water sector institutions are of water resources. The conclusion of the 1993 World presently being restructured; the existing three river Bank mission for the National Environment Action basin offices were strengthened, and the remaining six Plan was that it was more important to first address the basin water offices have been established; irrigation water resources issues and challenges before focusing on efficiency has been improved in 15 rehabilitated just the environmental aspects of water resources. As a pilot irrigation schemes; water supply and sanitation consequence, environmental issues were integrated into services have been improved in eight urban towns and the RWRA. There was thus a meeting of professional 13 districts; and transboundary water management minds among the Tanzanian experts and World Bank has been initiated in the Lake Victoria and Lake staff that facilitated the RWRA, although its success was Tanganyika basins and in the Ruvuma River Basin. A new $951 million water sector support program13 has recently been initiated to consolidate and extend these 13World Bank. 2007. "Tanzania Water Sector Support Program." water management improvements across the country, Project Appraisal Document. Washington, DC: World Bank. Institutions and Governance Series 15 SEA case studies 4-9-09.indd 15 4/9/09 12:39:58 PM Strategic Environmental Assessment -- Improving Water Resources Governance and Decision Making directly related to the fact that it was largely driven and the study, not all were convinced of the need for an owned by the Tanzanians. integrated approach. Some sectors, such as the power sector, retained a core belief that their role was to While there were public concerns about the state of generate power and the provision of water was not their water resources and the widespread impact of drought, concern. the concerns were focused on local issues--pollution, conflicts over access, etc.--and they were not Iterative. The RWRA results were not driven by an clearly addressed in a coherent public policy issue, external timetable, although indirect pressure from and therefore a public diver for the RWRA study. external partners (such as the Norwegian Government) Nevertheless, the political drive to initiate reforms, may have played a role and so were available to feed starting with the RWRA, partly arose from these public into the development of the strategy for water resources concerns. management. The information content of the RWRA study was sufficiently developed to provide directions Procedural Competence for the strategy and the subsequent National Water Policy. Accountable. The Ministry of Water, Energy, and Minerals was responsible for water management at the Substantive Competence national level and was the client for the RWRA. It was responsible for organizing and implementing water Integrated. The RWRA included environmental issues reforms. The study was undertaken comprehensively and responses in its scope, but the assessment of and impartially. It was a collation and synthesis strategic directions did not take particular note of them. study rather than an analytical study based on new Similarly, the interrelationship between environmental, information. While it did not break new ground, it social,and economic objectives was clear within the added some new information and organized existing study, although this was not emphasized. Thus, the information into a coherent picture and provided RWRA pointed out the difficulties in water allocation a direction for future water resources management. and the importance of source protection, watershed The study was not independently peer reviewed. The management and pollution control, identified RWRA was initiated because of concerns about the important wetlands, and placed considerable emphasis sustainability of the (then) current water resources on social factors, including the conflicts that were then development patterns. It documented the seriousness of occurring between water users in the Pangani and Rufiji these issues and how they might be taken into account basins. The study was tiered downwards, with broad through an integrated approach. recommendations for the critical issues to be included in the plans for the four priority basins. It was also Participative. All major water-dependent and water- tiered upwards, with recommendations for national related ministries were represented on the study team, reforms, including policy and legislative changes. These so there was strong participation at the national level. included transboundary management as well as inter- A major stakeholders workshop was held in September sectoral reforms. 1994 to review the draft findings of the RWRA. However, the RWRA did not invite broader public Sustainability-led. The rationale for the RWRA participation. While this simplified the analysis, it was to develop a more sustainable water sector in meant that the task of developing widespread support Tanzania. Consequently, the recommended approach for the water reforms was left to a later stage. Even to developing the strategy was designed to be more though all water-dependent ministries participated in decentralized at the river basin level and sustainable 16 Environment Department Papers SEA case studies 4-9-09.indd 16 4/9/09 12:39:59 PM Case Study 2. Rapid Water Resources Assessment, Tanzania than the existing centralized, uncoordinated, sectoral interest internationally in integrated approaches to development-oriented approach to water resources water resources management, partly as a response planning and management. to the 1991­93 water crisis, and partly because it was conducted by an inter-sectoral team. While the Focused. The RWRA collated the first national consultations were confined to ministries represented Tanzanian database on water resources. While this on the study team, they were sufficient for the purposes was insufficient for basin-level panning, it provided a of this study. The report had credibility within the credible basis for the recommendations contained in Tanzania government and with multilateral and the report. One of the recommendations was, in fact, bilateral development partners. the need to improve flow and water quality monitoring for drawing up water allocation and water quality However, the lack of widespread public and plans. The report was commissioned in order to give institutional consultation at all levels meant that the direction to the proposed water reforms and overseen messages about the central importance of an integrated by the ministry responsible for the reforms, and so approach to water management were not widely it was inevitably customized to the decision-making absorbed within some sectoral institutions. There environment. The study took about 15 months and has been a slow but growing understanding of this cost about $50,000, and so was cost- and time-effective. important concept, as shown by sectoral policies and legislation, although there are some sectors that still Influential. The RWRA report was highly influential retain a singular focus on their core business. It takes and provided the strategic direction for Tanzania's considerable time to bring about these changes in subsequent water reforms, including a new national attitude. water policy, a devolved institutional framework, greater awareness of environmental protection, and The study did not focus on environmental issues the need for a collaborative approach to management. because they were not seen to be an issue in their It provided the basis for development assistance from own right. Rather, environmental considerations multilateral and bilateral donors. It raised awareness of were included in the broader context of the water- integrated water resources management, particularly related problems facing Tanzania, which had manifest among the members of the study team. The task of themselves as water shortages, conflicts over access to fully engaging all sectors in this approach has yet to be water, and water quality problems. completed, but is ongoing. The review was carried out by Tanzanian nationals Lessons Learned within government institutions. This improved the sense of ownership of the results within government A relatively modest investment in a strategic assessment circles and helped build capacity and confidence proved to be highly influential in refocusing the within those institutions. This probably was the most direction of water management in Tanzania, partly important factor that contributed to the effectiveness of because it was initiated when there was a rising the RWRA. Institutions and Governance Series 17 SEA case studies 4-9-09.indd 17 4/9/09 12:39:59 PM SEA case studies 4-9-09.indd 18 4/9/09 12:39:59 PM Case Study 3. SEA for the Plan of Main River Basins, Czech Republic Background Ministry of Agriculture, Ministry of Environment, Ministry of Health, Ministry of Transport, and The Czech Republic has a long history of water Ministry of Defence. The Ministry of Agriculture is management, which can be divided into two main the central authority for regulating the use of water. phases--before and after the fall of communist regime Its jurisdiction covers the main watercourses as well in 1989. Until the early 1990s, water was managed as a as small watercourses (managed by the Czech Forests branch of the national economy and largely seen as an and Agricultural Water Management Administration) input to the industry, energy, and agriculture sectors. and groundwater. Since 2003, there has been a Although the Water Act passed in the 1970s included National Committee for Water Management Planning several provisions for environmental protection, there supported by regional committees at the river basin was very limited enforcement of those provisions. The level comprising representatives of ministries, regional Water Act introduced a "Water Management Master authorities, relevant institutions, NGOs, and others. Plan (1975)" that contained measures to safeguard the water demands of the national economy, but has almost The Ministry of the Environment is responsible no provision for environmental protection. for water protection, including protection of the quantity and quality of surface and groundwater, The economic transformation after 1989 also led to flood protection, the protection of water sources and significant changes in water management, including of natural water accumulation areas.14 The Ministry decentralization of water management, conversion of Health is responsible (in cooperation with the of water companies and river boards (later reinstated Ministry of Environment) for bathing water. The as state enterprises by the Ministry of Agriculture) to Ministry of Transport is responsible for navigation, various types of business organizations (but always and the Ministry of Defence exercises authority in owned by the state), with responsibilities for the territory administered by the Czech Army. Operational enforcement of economic instruments such as fees administration and management of surface water and and charges for water abstraction and wastewater groundwater is based on eight natural hydrological discharges. The accession of the Czech Republic to basins and hydrogeological units and is provided by the EU in May 2004 led to implementation of several five river basin administrations--the Elbe River Board, "water-related" directives, particularly the Water the Vltava River Board, the Oder River Board, the Framework Directive (WFD) that introduced IWRM Ohre River Board, and the Morava River Board--that principles into water management. report to the Ministry of Agriculture. There are also The current institutional framework for water 14 management in the Czech Republic is specified in These are areas set aside for possible water reservoirs, dry polders, etc. Although they may never be used for water the 2001 Water Act. Jurisdiction is shared among the accumulation, they are not able to be used for other purposes. Institutions and Governance Series 19 SEA case studies 4-9-09.indd 19 4/9/09 12:40:00 PM Strategic Environmental Assessment -- Improving Water Resources Governance and Decision Making international commissions for the Protection of the of these waters, and for catchments. These framework Elbe, Oder, and Danube rivers, which are responsible objectives will then be adopted and made specific in for multilateral international cooperation, as well as each of the basin RBMPs. Once endorsed, the Plan of national commissions established by the Ministry Main River Basins of the Czech Republic, together with of Environment for cooperation and managing the RBMPs, will replace the 1975 Water Management transboundary watercourses. Master Plan. Under the 2004 Strategy for Water Management, the The principles and objectives of protection of water as main principles of water management are:15 a natural resource are stated in the State Environmental Policy.16 SEA is under the Environmental Impact · Improvement of water resources management Assessment Act of 2004. The new procedural and water management infrastructure, including requirements for SEA (introduced through implementation of relevant EU directives, leading amendments in 2004) in this act are more extensive to effective and sustainable water use and reduction and detailed than those contained in the previous EIA of detrimental impacts on the status of aquatic Act of 1992, and transcend the requirements of the EU ecosystems Directive 2001/42/EC. Under amendments to the EIA · Ensuring the provision of water and wastewater Act in 2004, SEA is required for policies and strategies, treatment services without detrimental effects on as well as for plans and programs (as required under the environment and for socially tolerable prices Article 3 of the EU Directive), and is obligatory on the · Protection from impacts of extreme hydrological national and regional levels. Documents at the local events (floods and droughts) level have to undergo a screening procedure to find out · Enhancing performance of water management if SEA is required or not. institutions (including research and development, international cooperation and coordination, and SEAs are carried out in two phases. The proponent optimization of water services) for an activity under the act provides the responsible authority (the Ministry of Environment for national These principles apply to all national authorities involved and regional activities) with a description of the policy, in water management (i.e. river boards, water authorities, strategy, program, or plan. If the SEA is obligatory etc.). The strategy includes IWRM principles. under the act, the responsible authority determines The five river boards, in cooperation with the regional the scope and procedures for the SEA. If it is optional authorities, are preparing river basin management plans under the act, a scoping and screening exercise is carried (RBMP) for the eight river basins. In 2006, a Plan out and, if an SEA is required, then the responsible of Main River Basins was prepared by the Ministry authority issues the scope and procedures. This first of Agriculture in cooperation with the Ministry of phase is termed the "fact-finding procedure." In the Environment, other central water administrative second phase, the SEA report is prepared in accordance authorities, and regional authorities for the three main with the act and the scope and procedures. river basins (the Elbe, Morava, and Odra basins). This plan will set the national strategy for the water sector and planning at the river basin level. It specifies 15Ministry of Agriculture. 2004. "The Strategy for Water Management Policy of the Ministry of Agriculture from the framework objectives for surface water and groundwater period from 2004 till 2010." Prague, Czech Republic: Ministry of management, for the protection of surface water and Agriculture. 16 groundwater and aquatic ecosystems, for sustainable use Ministry of Environment. 2004. "State Environmental Policy of the Czech Republic 2004­2010." Prague, Czech Republic: of these waters, for protection against the adverse effects Ministry of Environment. 20 Environment Department Papers SEA case studies 4-9-09.indd 20 4/9/09 12:40:00 PM Case Study 3. SEA for the Plan of Main River Basins, Czech Republic The proposal, together with the SEA report, is independent exercise and did not influence the plan subject to a public hearing and review by the preparation, although there were discussions between relevant authorities, including those responsible for the leader of the SEA team and the planning team. environment and health. Based on the SEA report and the consultation process, the supervising authority The SEA was submitted to the Ministry of Environment issues the final SEA statement. This specifies if in September 2005. Impacts of the measures proposed the respective concepts can or cannot be approved by the plan were scored using a simple 3-part system from the environmental point of view and includes --positive impact, no impact, negative impact. These conditions for implementation. The statement is assessments, together with measures to mitigate them required for final approval of the activity by the or compensate for impacts, indicators of impacts, and responsible authority, although that authority does not projects that could be subjected to EIAs were included have to accept all recommendations in the statement. in the SEA report. The plan, together with the SEA, was However, the approving responsible authority has to submitted to the Ministry of Environment in September publicly explain how the requirements in the SEA 2006. The ministry adopted all conditions proposed by statement have been taken into account and, if some the SEA report: have not been accepted, reasons why they have not been accepted. · To locate wastewater treatment facilities away from flood risks and ensure their linkage to regional waste management plans The SEA of the Plan of Main River Basins · To minimize effects on the ecological characteristics of the water streams and water- SEAs were required for both the river basin related ecosystems when implementing technical management plans and the Plan for Main Rivers. measures for flood protection and for the The Ministry of Environment's fact-finding statement accumulation of surface waters specified the following scope for the SEA: · To prepare the regulation on the use and · The links between the plan and the relevant application of sediments from wastewater national strategic documents treatment facilities · The effects of the plan on species and habitat, · To respect the conditions given by the SEA landscape protection, and public health--especially for the particular measures during the plan for proposed dams, measures for flood protection, implementation etc. · To publish the settlement of all comments received · The contribution of the plan to the revitalization of during the plan preparation and the SEA on the the landscape, protection against the soil erosion, web page of the Ministry of Agriculture. and retention of landscape values With its concurrent development with the plan, this · The likely impacts of the plan on water quality SEA is an example of a semi-integrated, impact- · The extent to which the plan supports the effective centered SEA carried out at the national strategy use of the water resources level.17 · The likely impacts of the plan on nonrenewable natural resources The SEA for the Plan for Main Rivers Basins 17 commenced in April 2005, after the plan preparation Although termed a plan, the instrument is like a policy or strategy document in establishing the high-level national had commenced. The SEA study was treated as an direction for the three main river basin management plans. Institutions and Governance Series 21 SEA case studies 4-9-09.indd 21 4/9/09 12:40:01 PM Strategic Environmental Assessment -- Improving Water Resources Governance and Decision Making Instrumental Controls It was both a partner in the production of the plan and was responsible for the SEA, which contained The SEA was initiated because of legislative recommendations on the implementation of the plan. (procedural) requirements in the Environmental Impact The SEA was developed by a five-person team led by Assessment Act. That, in turn, was largely driven by experts from the Czech Agriculture University (Faculty requirements in the EU Directive 2001/42/EC. It's very of Forestry and Environment, Laboratory of Landscape unlikely that the SEA for the plan would have been Ecology) and included external experts. The study was initiated if there had not been this explicit requirement carried out professionally, but it was not subjected in the legislation. The Ministry of Agriculture (as the to independent peer review. The SEA study clearly proponent of the plan) believed that the SEA was not identified and documented its examination of potential necessary, since the Ministry of Environment was part impacts from the plan and made this information of the planning team and the 2001 Water Act already available to the Ministry of Environment and the required public participation in the plan. general public. As required under the legislation, the The Ministry of Environment has oversight of the ministry published the recommendations of the SEA SEA process and provides final advice to the Ministry and its acceptance of them. of Agriculture based on the SEA report and public comment. However, they are more focused on carrying Participative. The plan and the SEA met the formal out procedural obligations than objectively assessing the participative requirements. The Water Act required content and quality of the SEA. Thus, the Ministry of public consultation for the draft plan, so the SEA Environment provides the evaluative control over the legislative requirement for consultation partially SEA, although there is no independent assessment of duplicated this requirement. Drafts of the plan the quality of the SEA. At the same time, the Ministry were published on the web page of the Ministry of of Environment was involved in the preparation of the Agriculture and comments were sought. The draft plan plan and believed that conflicts could be solved directly was presented to meetings of the National Committee during the preparation of the plan. This dual role of the for Water Management Planning during plan ministry reduced its ability to act as an independent preparation, and occasionally at the regional level, but evaluator of the SEA. only as additional information rather than for debate. Public interest was focused on the plan itself rather than The Ministry of Environment published a notification on the SEA, and so the SEA was not promoted through of the SEA in the SEA Information System, seeking public drivers. comments from the public, and relevant authorities and public hearings were organized to receive It is too early to comment on the extent to which the comments on the final SEA. Numerous comments recommendations in the SEA will be carried out as the were received from regions, municipalities, and the plan is implemented. Given the paucity of drivers for the general public, largely as a result of initiatives from initiation of the SEA, there is a strong possibility that the interested parties in publicizing the availability of recommendations will be adopted in a minimal way. the draft plan for comment. The ministry's formal compliance with the legislation did not elicit much Process Competence public response. All comments received were published on the web page of the Ministry of Agriculture, as Accountable. Although the lead ministry for the plan required in the SEA recommendations. Access to the was clearly the Ministry of Agriculture, there was less internet is growing rapidly in the Czech Republic, and clarity about the role of the Ministry of Environment. this would ensure that regional and local authorities 22 Environment Department Papers SEA case studies 4-9-09.indd 22 4/9/09 12:40:01 PM Case Study 3. SEA for the Plan of Main River Basins, Czech Republic had access to the SEA report if they thought to check Substantive Competence the ministry site. Integrated. The SEA was confined to environmental In spite of these legislatively required steps, there and health aspects of the plan and did not explore was no clear strategy for public participation in the social or economic aspects. However, these aspects SEA. The issue was not addressed in the fact-finding were integrated by the planning team within their statement, the SEA report, or the final SEA statement. deliberations. The SEA is tiered to project EIAs. The The SEA process could have used the existing network, RBMPs are already tiered under the Plan for Main consisting of a national committee for planning and River Basins, and the SEA makes recommendations for river basin committees, in order to facilitate public the content of EIAs that may emerge from the RBMPs. involvement in river basin planning, but did not do so. The SEA could also have used (at least partly) the Sustainability-led. The SEA process itself did not strategies for public involvement or operational plans clearly identify sustainability issues--but some of for public participation endorsed in all river basins in the environmental aspects addressed by the SEA 2006. Some parts of the SEA report are difficult to could be understood as "sustainable," and these led to understand, and their purpose is not clearly explained. modifications to the plan that were more sustainable. The non-technical summary in the SEA report The final SEA recommendations that were accepted released to the public includes only a brief description by the minister related more to future implementation of the process, and provides neither a summary of issues than to the content of the plan. the significant environmental effects of the plan nor Focused. The SEA process and report assessed a wide instructions on how to comment on the plan. range of potential impacts across air, water, soils, The most contentious public issue was the list fauna and flora, forests, ecosystems, and health. The of 205 areas proposed in the plan as reserves for procedure for drawing up the SEA was focused on the accumulation of surface waters. The affected meeting the requirements of the legislation. The municipalities and NGOs expressed their opposition SEA report was delivered together with the plan to to this list and mounted a campaign to have it removed the Ministry of Environment, allowing the minister from the plan. After much public discussion and to assess the SEA proposals and make a decision on negotiations with the Ministry of Agriculture, the accepting them. The SEA was completed rapidly and list was removed from the plan. However, neither the efficiently within 18 months (April 2005­December planners nor the SEA team approached the affected 2006), taking 160 to170 person-days to complete. municipalities to explain the consequences from the Influential. There were two pathways for the SEA to expected declaration of these areas. influence the plan--through interactions between Iterative. The SEA was commenced after the plan the SEA team and the planning team during the plan preparation stage had started. It was potentially able preparation, and through recommendations by the SEA to influence the plan preparation through ongoing team in their report to the Ministry of Environment. discussions between the SEA leader and the plan The first pathway was not used--the two studies were preparation team. However, there were no significant largely carried out as separate processes. The minister changes to the plan as a result of this interaction, largely accepted all recommendations in the SEA report. The because the SEA did not identify any environmental major change required in these recommendations risks or likely adverse effects from the plan. --strict conditions on the areas for surface water accumulation--was already complied with because of pressure from local authorities and other interest Institutions and Governance Series 23 SEA case studies 4-9-09.indd 23 4/9/09 12:40:02 PM Strategic Environmental Assessment -- Improving Water Resources Governance and Decision Making groups. Other recommendations, such as better The conditions included in the final SEA statement elaboration of the plan's handling of areas for nature to improve the environmental performance of the protection, were not significant and did not require RBMPs during implementation were fully accepted major changes to the plan. Nevertheless, they can be by the Ministry of Environment. However, given the influential on the RBMPs and any subsequent project minimalist approach adopted to the production of the developments if the recommendations are enforced. SEA, it is unclear whether these recommendations will be influential on the RBMPs and subsequent project Lessons Learned developments. The SEA of the Plan of Main River Basins was prepared Better public participation requires: in line with requirements of relevant legislation. However, these requirements were interpreted in a · Clearly defined strategy for public participation, formal and minimal sense and the SEA was not used to with definition of the target groups and the its full potential to improve environmental aspects of expected benefits defined in the beginning of the decision making. process · Direct distribution of information to the · The SEA did not commence until after the plan municipalities possibly affected by the plan with an had commenced and was not used to influence the active attempt to engage them in the SEA plan's development. · Better structure of the SEA report, including a · The Ministry of Agriculture posted the SEA clear description of the methodology used and a and the settlement of comments on its website brief summary of results as required in the SEA statement, but did not inform affected authorities or those who provided Finally, there is a need to clarify the role of the comments to the SEA that the information was competent authority for SEA. A more active now publicly available. This limitation may have engagement by the competent authority, in this case the been related to the lack of diverse drivers for the Ministry of Environment, would contribute to a better SEA--the legislation and EU Directive were the overall SEA. This would include better specification only real drivers for the SEA, and so the ministry's of the scope of the assessment (not necessarily directly response was to treat the SEA as simply a legal in the fact-finding statement, but more precise requirement. specification could be done during the planning process, when the structure and the content of the plan The lack of interest in actively using the SEA seems was clear), and better guidelines for the assessment to be because no one--not even the Ministry of process. In addition, there is a potential conflict of Environment--understood how the SEA could assist in interest when the ministry, which was a partner in the preparation of the plan and what benefits it could the development of the plan, was also the authority bring. responsible for overseeing and approving the SEA. 24 Environment Department Papers SEA case studies 4-9-09.indd 24 4/9/09 12:40:02 PM Case Study 4. Nepal Medium Hydropower SEA Background electricity to urban and rural areas; (b) enhancing hydropower to meet industrial needs; (c) promoting With its steep rivers and high flows fed by snowmelt private sector investment in hydropower development; from the Himalayas, and winter and monsoon rains, and (d) conserving the environment by supplying clean Nepal is ideally suited to hydropower generation. hydropower. The Environmental Protection Act (1997) However, just over 600MW (less than 1.5 percent) of required environmental assessment, including stakeholder the economically feasible potential of about 43,000 consultation, for all relevant projects. While there was MW has been developed. All but 92MW of this some foreign private sector investment in the sector hydropower is from run-of-river schemes with daily under this regulatory framework, it was not sufficient pondage storage. There is also a small amount of to meet the needs of the growing domestic demand, let thermal power generation and a further 65MW is alone develop power for export. The Hydropower Policy imported from India.18 was revised in 2001, specifically to increase private sector Although about 40 percent of the population has involvement in the sector. The revised policy calls for the access to electricity, this is largely concentrated in the creation of a more competitive environment, including urban areas. Only 30 percent of the rural population introduction of more transparent and investment friendly has access to electricity. Domestic demand is increasing procedures, and proposes procedures to reduce social and at about 5 percent and is estimated to require about environmental impacts. 1000MW peak capacity by 2012, rising to 1800MW In the mid-1990s, the 200MW, $1082 million Arun III by 2020.19 Given the potential and the proximity was the major hydropower project under development. to India, the Government of Nepal has identified Part of the output from Arun III was to meet domestic hydropower exports as a priority export market. demand and the balance was to be exported to India. At Northern India is estimated to require an additional the time, it would have more than doubled the existing 10,000 MW in 2006, rising to 34,000MW by 2012,20 generation capacity in the country. However, in spite with the whole of India projected to require an of requiring little resettlement and having only a small additional 100,000MW by 2017. However, Nepal has been unable to develop its hydropower potential and tap that market. In fact, within recent years, Nepal has 182006 data from Karki, A.K. 2006. "Opening Nepal been a net importer of power from India, with 101 Hydropower Investment and Accessing Indian Electricity GWh exported in 2006 and 266GWh imported. Market." Kathmandu, Nepal: Nepal Electricity Authority. 19Gautam, U., and A. Karki. 2005. "Nepal: Thermal energy for export." South Asian Journal 9: no pages. Power development during the 1990s was guided by 20Karki, A.K. 2006. "Opening Nepal hydropower Investment the National Hydropower Policy (1992), which had the and Accessing Indian Electricity Market." Presentation by the objectives of (a) exploiting water resources to supply Managing Director, Nepal Electricity Authority, Kathmandu, Nepal. Institutions and Governance Series 25 SEA case studies 4-9-09.indd 25 4/9/09 12:40:02 PM Strategic Environmental Assessment -- Improving Water Resources Governance and Decision Making reservoir for daily peak generation, the project was and then undertook a generic assessment of options controversial because of potential environmental damage for grid and off-grid supply in different regions of the from associated works and the inadequate compensation country. These included micro, small, medium, and offered to the displaced population. Following an adverse large hydropower plants; thermal options based on report from the Inspection Panel, the Bank decided to imported fuels; non-conventional options including withdraw from the project and the development ceased. wind power, biomass and bio-fuel generation, and solar photovoltaic systems; supply-side efficiency The controversy over Arun III fueled a wider debate improvements in transmission and distribution systems; within Nepal (that included international NGOs) over and demand-side management. priorities for investment among small, medium, and large-scale hydropower plants. Instead of the previous The SecEA confirmed the broad consensus that medium- reliance on a few large hydropower projects, the scale hydropower offered the best way forward to meet government decided to follow a two-track approach. the expanding grid supply needs, although renewable On the first track, immediate demand would be met sources offered considerable potential for meeting rural though construction of some small, quickly constructed demand. However, contrary to the claims of some hydro projects and the rehabilitation and upgrading of NGOs, renewable sources would only supplement rather existing facilities. The second track involved assembling than substitute for medium-sized hydropower generation. a portfolio of medium-sized power plants (10­300MW The study also recommended the phasing out of subsidies range) that would meet domestic power demand in to help reduce wasteful usage and curb demand. the medium term. These medium-sized projects would be funded through a mixture of public and private The broad outline of the procedure for developing sector funds, including through a power development the portfolio of medium-sized projects for the PDF fund (PDF) established by the government. Although was developed jointly by the government, the Nepal the PDF was primarily intended for the medium- Electricity Authority, and the World Bank. An sized hydropower projects, it could also be used Inter-Agency Steering Group, comprising ministries for smaller or larger projects or for export-oriented (responsible for water, power, environment, social and projects if necessary. In general, export-oriented power regional development and roads) and the National development would be dealt with separately. Planning Commission, was established to lead the process. The steering group oversaw a multidisciplinary A Sectoral EA,21 funded by the World Bank under professional study team--consisting of seconded the Power Sector Efficiency Project, was used as a professionals from NEA, government departments, major input to selecting the portfolio of medium-sized and the private sector--that undertook the assessment. power projects. Apart from adding environmental and International consultants were responsible for the social criteria to the traditional economic criteria for technical quality of the study team's work, to introduce project selection, the SecEA process would also make new tools and methods, and to provide on-the-job investment in power projects more attractive for the training. private sector by reducing risk and increasing public acceptability of the projects. 21His Majesty's Government of Nepal. 1997. Power Development Project. Sectoral Environmental Assessment. Ministry of Water The Sectoral Environmental Assessment Resources. Kathmandu, Nepal: Government of Nepal. 22The SEA description is taken from Case Study 2 in World The SecEA,22 conducted during 1996 and 1997, Bank (2003). Stakeholder Involvement in Options Assessment: Promoting Dialogue in Meeting Water and Energy Needs. A described Nepal's past and expected future load growth Sourcebook. BNWPP/ESMAP. Washington DC: World Bank. 26 Environment Department Papers SEA case studies 4-9-09.indd 26 4/9/09 12:40:03 PM Case Study 4. Nepal Medium Hydropower SEA Stakeholders were involved from the outset in identified for development. The World Bank has been identifying options, specifying and weighing the requested to fund Kabeli A, while the Government of evaluation criteria, and reviewing the results at each Nepal would fund Rahughat Khola. key stage. Initially, public notices were placed in the local media to explain the purpose of the exercise and The SecEA also established the EIA and SIA procedures schedule of activities. A website and public information to be used for the projects funded under the PDF. office were established, and government departments, These procedures are based on Nepal's Environmental NGOs, civil society, professional and private sector Protection Act and Environmental Protection Rules organizations, and embassies and resident missions (1997), and meet World Bank safeguard policies. of donors active in the sector were briefed on the Where applicable, project EIAs are required to contain methodology and timetable for the SecEA. an environmental management plan (EMP), an acquisition compensation rehabilitation plan (ACRP), The NEAs initial list of 60 potential sites was increased a resettlement action plan (RAP), and a vulnerable to 138 through public submissions. A three-part community development plan (VCDP). process--screening, coarse ranking, and fine ranking-- was used to narrow down these potential project sites. The SecEA was completed in April 1997. The World- The screening criteria were developed with stakeholder Bank-funded Nepal Power Development Project23, input and published for comment before being used. under which the PDF would be established to provide They included technical, social, and environmental long-term financing to the private sector for the priority issues. Forty-four sites were selected from the screening plants, was approved by the Bank Board in April analysis. These were published in newspapers, and the 2003. The delay was a result of slippage in project screening report was sent to stakeholders for comment. effectiveness resulting from protracted discussions over the applicability of OP 7.50, changes in the A formal multicriteria analysis was then used for coarse scope of the project, and the appointment of the PDF ranking, based on data collected from visits to the 44 administrator prior to negotiations. sites by engineering, environmental, and social units from the study team. Baseline surveys were held with The SecEA is an example of an impact-centered SEA community members, including women and poor (with some institution-centered aspects) carried out and marginalized groups. Using the formal analysis, independently of the sectoral development program it 22 sites were selected for proceeding to fine ranking. was assessing. Preliminary project layouts, rapid social appraisals, and initial EIAs were conducted for these 22 sites to provide Institutional Drivers a more detailed database. The ranking criteria were refined through workshops and meetings with civil The World Bank was the immediate driver for the society and professional groups. SecEA. While it was not a mandatory requirement, a thorough, community-based analysis of development After reviewing the results of the fine ranking analysis, options was seen by the Bank as the appropriate way the steering group recommended a portfolio of seven to respond to the strong national and international projects with three reserves. These were presented at opposition to the development of large-scale a public meeting, which received full media coverage. After reviewing comments received, the steering group 23 recommended the final selection of seven projects. World Bank. 2003. "Kingdon of Nepal Power Development Project." Project Appraisal Document. Washington, DC: World Since the SecEA was completed, two of these have been Bank. Institutions and Governance Series 27 SEA case studies 4-9-09.indd 27 4/9/09 12:40:03 PM Strategic Environmental Assessment -- Improving Water Resources Governance and Decision Making hydropower plants in Nepal. Government ministries, criteria to be used, to the opening of the final while agreeing to the SecEA, were initially skeptical recommendations for public comment--was handled of its value. However, after gaining some experience, in a highly participative manner. Travel is difficult they came to appreciate the importance of using the in parts of Nepal. Nevertheless, the study team held SecEA to lay a solid basis for future investment during consultations with the communities at all 44 sites the course of the study, but were disappointed when it selected for the coarse ranking. The issues and concerns did not lead to immediate investments by the World raised during these consultations were taken account Bank and other lenders in the priority projects. The of in the assessment process, although they are not Planning Commission has remained a strong supporter included in the final SecEA documentation. Thus, the of the process for their work in other sectors; the energy initial list of potential sites provided by the NEA was sector institutions are more reserved about its worth. doubled in size because of public suggestions. Thus, the Planning Commission represents a potential professional driver for future SEAs, not necessarily in Iterative. The assessment was completed in time to the water sector. contribute to the formation of the PDF as one of the components of the Nepal Power Development loan The public pressure that led to the termination of the and, to a lesser extent, the new Hydropower Policy, Arun III project acted as a strong background driver for which promoted private sector investments in the the SecEA. energy sector. There was an excellent set of information from the assessment on the impacts of the potential development projects, such that the recommendations Process Competence from the steering group could be modified in light Accountable. There was a clear line of responsibility of new circumstances. Overall, the SecEA provided a from the study team to the Inter-Agency Steering strong basis for future decision making. Group, which put forward the recommendations for the priority hydropower development projects and Substantive Competence EIA procedures. The actual commencement of these priority projects was less clear, since it entailed the Integrated. The SecEA considered the full range of establishment of the PDF and the willingness of the options, including thermal generation, hydropower, private sector to take up the projects. alternative energy sources, and demand management. The final recommendations included a mix of The SecEA was carried out professionally with generation options for different purposes. The advice from experienced international consultants. screening and ranking study to develop the portfolio A recognized multicriteria screening, weighting, and of hydropower projects was designed to include ranking process was used. There was considerable effort, environmental, social, and economic considerations in the wake of the Arun III controversy, to ensure (and their interactions) in the selection of projects. The that it was seen to be an open and fair process. The level of detail of these assessments increased as the list final SecEA report does not provide full details of how of potential project sites was narrowed. Cumulative sustainability was included in the assessment process, effects were considered where there were sequences although the information made available publicly of hydropower projects on specific river systems. The during the SecEA did provide these details. study was tiered downward to the project level, in that it recommended an environmental and social Participative. The assessment process--from selection assessment framework for the prioritized projects. of the initial set of potential sites and the selection It was tiered upward, in that it fulfilled the (then) 28 Environment Department Papers SEA case studies 4-9-09.indd 28 4/9/09 12:40:04 PM Case Study 4. Nepal Medium Hydropower SEA Hydropower Policy by improving the basis for private improved because of the participation in terms of scale, sector investment in an environmentally and socially regional spread, and project type. acceptable way. However, the time needed to conduct such an extensive Sustainability-led. Unlike a traditional impact-based consultative process was seriously underestimated. The SEA, this study did not consider more sustainable process was originally envisaged to take 3 months; it options to an existing policy, program, or plan. Instead, actually took 14 months. Once stakeholders became it used environmental sustainability as a principle involved, the concerns they raised and their requests for criterion in the progressive selection of a portfolio of more information or analysis had to be met. Sufficient preferred hydropower plants. time and notice was also needed for people to digest new information, for representatives to consult their Focused. The study was tightly focused on the task of constituencies, and for people to form opinions. The cost laying a defensible basis for future power development of conducting such an inventory and assessment exercise in Nepal and was designed to be integrated into is high and may not be affordable for all countries. the characteristics of the decision process. Although the cost of $1.2 million was high, the benefits were Using a multidisciplinary study team had the advantage significant. The study took 14 months to complete. that the study team was able to respond to stakeholder needs as the process evolved and as stakeholders gained Influential. The SecEA definitely improved the decision- confidence that the process was not dominated by making environment and contributed to the goal of single interests. attracting private sector investment. However, for other reasons (increased risks because of insurgency, National safeguard policies can be moved upstream delays in agreeing on the loan to establish the PDF) the in the planning processes. Projects that would have SecEA did not lead to the immediate development of had adverse environmental impacts either within hydropower plants. It was also influential in illustrating conservation areas, or where flow regimes would have the benefits of conducting an open consultative process been affected in downstream conservation areas were and has led the Nepal Planning Commission to be a eliminated at an early stage. champion for future consultative processes. The databases, spreadsheets, and other tools developed in the options assessment processes need to be maintained. Lessons Learned24 In this case study, seconded staff members from the The use of an open, consultative selection process, agencies responsible for power development and licensing immediately following extensive controversy over were included as key members of the study team. power development proposals, proved to be an excellent mechanism for building trust and laying an agreed basis 24These lessons are drawn from Case Study 2 in World Bank for future development. In addition, the portfolio was (2003). Institutions and Governance Series 29 SEA case studies 4-9-09.indd 29 4/9/09 12:40:04 PM SEA case studies 4-9-09.indd 30 4/9/09 12:40:04 PM Case Study 5. SEA for WATSAL Loan, Indonesia Background25 · Establishment of a national water council or apex coordinating body By the late 1990s, the Suharto government had been in · A national water resources policy together with power in Indonesia for over 30 years. It was criticized associated legal, regulatory, and administrative for widespread corruption, centralized and closed instruments decision making, lack of accountability, and pursuit · Reform of the Jatiluhur River Basin Authority, and of economic policies at the expense of environmental establishment of four new self-financing river basin protection. It was replaced in 1998, following the management agencies severe Asian economic crisis, by a more reform minded · Establishment of basin water coordination government under President Habibie. The new committees, provincial water coordination government set the stage for wide-ranging reforms committees, and hydrological units in key river in late 1998 by declaring a shift toward regional basins responsibility for managing natural resources and · Stakeholder representation on provincial and basin environmental protection. These moves toward greater water coordination committees government transparency, together with criticisms · An improved regulatory framework, and use of of the World Bank's past operations in the country, fiscal incentives to reduce pollution fostered a new determination for more open and · Establishment of a system of water use rights for effective communication with civil society. water allocations, and an improved wastewater At that time, the water sector was facing a number of discharge permits system problems, including growing water shortages and inter- · Establishment of frameworks that enable self- sectoral competition, water pollution, environmental governing water user associations (WUAs) to operate damage, flooding, downstream watershed degradation · Reform of national and local irrigation impacts, and declining physical and fiscal sustainability administrations of existing irrigation infrastructure facilities. · Development of a national water resources Management was weak, characterized by centralized management information system and database decision making and limited participation, lack of cost recovery and an absence of funds for operations, 25This section is taken from unpublished draft material by P. Pillai underinvestment in infrastructure, and little and J.R. Mercier and also from Alaerts, G. 2000. Environmental Assessment for Sector Adjustment Loans: The Case of the coordination between water-dependent sectors. Indonesia Water Resources Sector Adjustment Loan. Environment and Social Safeguard Note 3. East Asia Environment and Social The Bank agreed to support major reforms to the water Development Unit. Washington D. C.: World Bank. 26 and agricultural sectors through a sector adjustment World Bank 1999. Indonesian Water Resources Sector Adjustment Loan, Presidents Report. Washington D. C.: World loan (SECAL).26 The reforms included Bank Institutions and Governance Series 31 SEA case studies 4-9-09.indd 31 4/9/09 12:40:04 PM Strategic Environmental Assessment -- Improving Water Resources Governance and Decision Making The problems in the sector had been increasingly The study was built around widespread public severe during the 1990s. By the late 1990s, there consultation rather than analytical work. These was considerable willingness among the professional consultations broke with the previous history of staff in the Ministry of Public Works and in the centralized decision-making and ensured that the Bureau of Water Resources and Irrigation (BWRI) views of potentially affected people and other relevant for these reforms. Local government had also become interest groups at province, district, and village levels increasingly vocal about the need for change. were taken into account.27 Three provinces (West Sumatra, West Java, and South Sulawesi), were The longer term objectives were to make the reforms selected for the consultations. At the province level, sustainable by building professional expertise the consultations were primarily with provincial within the country, facilitating a process of reaching government institutions. At the district level, intergovernmental consensus and internalized consultations were with district representatives of "ownership" of the reforms, and improving sector provincial government organizations, as well as social management by improving its capacity to attract service and civil society representatives. At the local subsequent donor support. level, the emphasis was almost entirely on village representatives. The meetings were facilitated by NGOs The loan was prepared during 1998 and early 1999. It to promote openness and avoid bias. They, in turn, was approved by the World Bank Board in April 1999. hired local facilitators within each province. Detailed The loan was executed through the Inter-agency Task descriptions of these consultations were contained in Force on Water Sector Policy Reform, under the joint the SEA report (available in English and Indonesian), chairmanship of the National Development Planning together with the responses from the task force to Agency and the Public Works Ministry. The task force the issues and suggestions. A national consultation had a broad-based membership, including sectoral was held in Jakarta, and there was a separate meeting ministries, the two existing river basin organizations, with NGOs in each province on sustainability issues. provincial public works departments, the national After the SEA report was drafted, second-round scientific organizations, and NGOs. consultations were held with the same groups to explain the extent to which their comments had The Sectoral Environmental Assessment been used to get their feedback and engage in further discussion. The terms of reference for the SEA stated that the assessment would provide information on the possible The issues that arose during these consultations outcomes of the reforms, assess the risks associated included: with these reforms, and outline mitigation options for any anticipated negative impacts. The SEA also looked · Lack of sectoral coordination in water resources at the environmental impact assessment procedures management applied for water sector interventions, and the · Rarity of enforcement of pollution regulations proposed revisions to the EIA process to provide more · Lack of transparency and consistency in managing transparent, impartial, and objective evaluations. water rights, including the issuance of licenses The study was prepared by the Inter-agency Task Force on Water Sector Policy Reform, thus ensuring close 27Inter-Agency Task Force on Water Sector Policy Reform. 1999. coordination between the SEA study, the WATSAL Sectoral Environmental Assessment, Water Sectoral Adjustment project, and the overall water sector reforms. Loan. Jakarta, Indonesia: Government of Indonesia. 32 Environment Department Papers SEA case studies 4-9-09.indd 32 4/9/09 12:40:05 PM Case Study 5. SEA for WATSAL Loan, Indonesia · Need for a more holistic river-basin approach to Process Competence water resources management · Disadvantage of weaker irrigators users compared Accountable. The Inter-Agency Task Force was the to more powerful stakeholders lead organization for the WATSAL loan preparation · Lack of support from government agencies and the SEA. The study was designed to be balanced and fair by obtaining opinions from four levels of These issues were responded to in the SECAL and the management, using nongovernmental facilitators reforms by strengthening environmental assessments of to avoid an appearance of bias. The study was not water projects, improving stakeholder representation independently assessed. The SEA was conducted as on basin committees, increasing support for WUAs, an open process and the information gathered was and ensuring that the reforms did not entrench the role made public through documents in both English and already played by dominant groups at the district and Indonesian. The responses of the Inter-Agency Task village levels. Force to the suggestions and proposals were included in the documentation. Institutional Controls Participative. The SEA was designed around At the time of the SECAL, the Bank did not require participation by sectoral interests in different an environmental assessment of sector adjustment jurisdictions as well as by individuals at the village level. loans, although the breadth of application of the EA Their issues were clearly addressed in the SEA report. A policy (OP4.01) was under review. However, OD8.60 second round of consultation was held to report back stated that adjustment loans should consider their to the stakeholders on the responses to these issues. environmental implications and so, in keeping with These second-round consultations had little benefit promoting sound environmental management of its for the team, but they were considered to be extremely lending activities, the Bank's East Asia and Pacific important in demonstrating that the participants were Region decided to support a sectoral EA for the partners in the planning process, and that their input loan. The SEA came about primarily because of the had been taken seriously and had been influential. Government of Indonesia's interest in promoting Iterative. The SEA was designed to feed into the openness and consultation, and the Bank's interest in preparations for the WATSAL loan and so did not delay testing EA at the strategic level in anticipation of the it. In fact, the participatory work helped build support revised EA policy. for WATSAL. The opinions collected during the SEA The readiness of the ministry staff to engage in provided a rich source of information on people's the reforms and undertake the SEA constituted a objectives and hopes, as well as their concerns, and professional driver for the SEA. allowed the reforms to be made more robust. The SEA was not iterative in the sense of leading to successive Although public pressure did not trigger the SEA, environmental assessments at project level, although the there was strong support for it from the provincial review of EIA procedures conducted as part of the SEA governments and districts and villages. In addition, the would assist with subsequent implementation. public consultation was seen to be so successful that the task force and sector agencies decided that most key Substantive Competence reforms would be subject to public consultation. The principle of public consultation is now a provision of Integrated. This SEA was participative and not analytical. the new water resources law. The breadth of consultations and the impartiality Institutions and Governance Series 33 SEA case studies 4-9-09.indd 33 4/9/09 12:40:05 PM Strategic Environmental Assessment -- Improving Water Resources Governance and Decision Making provided by the NGO facilitators allowed the and the new government largely continued the more stakeholders to identify a diversity of issues and possible decentralized approaches that had been initiated under solutions. The inter-relationship between environmental the reform and WATSAL. Even though their policies protection and social and economic benefit was central were not nearly as participatory and open as before to the discussions and to the design of WATSAL. It 2003, there is a clear continuity. was thus clear to the stakeholders that flooding, health problems, and stream turbidity stemmed, at least in Lessons Learned part, from poor environmental management. This SEA arose from a fortunate coincidence of The focus of the WATSAL loan and the SEA was interests in both the government and the World Bank. on water resources management and irrigation Managers need to be able take up these opportunities rehabilitation. The SEA was tiered upward to policy and when they arise. legislative reforms in these sectors, as well as downward to project activities in catchments and irrigation districts. There were a number of reasons why the SEA was successfully implemented. First, giving the WATSAL Sustainability-led. The modifications to the WATSAL task force the responsibility for conducting the SEA design that resulted from the SEA contributed to the maximized the opportunity for the SEA outputs to environmental sustainability and social acceptability of influence the policy reforms. Second, the political the investment. backing from the National Development Planning Agency and the Public Works Ministry and the Focused. The SEA investigations were managed as part representation of sectoral ministries and agencies on the of the WATSAL loan preparation and so were well task force was critical to the success of the SEA process. integrated into the decision process. The investigations Third, it proved to be important to have the NGOs as were not tightly focused; instead they were intended facilitators for the consultations. There was significant to allow stakeholders to raise issues and concerns that distrust of national ministries among some stakeholders, needed to be considered in the preparations. The SEA and these independent organizations provided was both cost and time effective. It cost $70,000, took credibility for the discussions. Fourth, the meetings with less than 4 months to complete, and influenced an stakeholders were focused, because proposed reform investment of $300 million. material was distributed well in advance. Finally, the return visits to the stakeholder groups to explain the Influential. The study was successful not only in responses of the task force to their issues and suggestions refining the WATSAL preparation but in introducing added to the credibility of the consultations. consultative approaches in subsequent water sector World Bank projects in Indonesia. As a result of Reforms and sectoral changes do impact on the political its success, the task force and sector agencies also economy of the sector and there are constituents who decided that most key reforms would be subject to oppose the reforms. This typically leads to oscillating public consultation. However, in 2003 there was a degrees of commitment to the reform agenda. Thus, a shift back toward a more centralized, less consultative long-term perspective is essential to allow the nation to approach within the Indonesian government. With the work through these actions and reactions. An SEA can elections of 2004, the then-government was replaced be very helpful to understand and guide these processes. 34 Environment Department Papers SEA case studies 4-9-09.indd 34 4/9/09 12:40:06 PM Case Study 6. Environmental Flow Assessment, Pioneer Catchment, Queensland Background The Environmental Flow Assessment In response to concern about the state of many The Pioneer planning area (encompassing the Pioneer of Australia's river systems, the state and federal River, Sandy Creek, and Bakers Creek) is a small governments of Australia (Council of Australian area, about 2,200 km2, on the northeast coast of Governments, or COAG) agreed on wide-ranging Queensland. Sugarcane is the predominant form of reforms to Australia's rural and urban water industries agriculture, although there is also cattle grazing and in 1994. The reforms included the development of urban settlement in the catchment. Mackay is the water allocation plans for all Australian catchments major town. Apart from an estuarine wetland, there are and major groundwater systems. These plans were to no significant wetlands in the area. Within the study include provisions for environmental water. area, there are four endangered and three "of-concern" ecosystems, 18 rare or threatened plant taxa, and two Each state established a different approach to meeting mammal species (the water mouse and the Irrawaddy its obligations under the 1994 agreement for water dolphin) and some macroinvertebrate species that are allocation planning. Under the Water Act 2000, the rare or endnagered. Eungella National Park occupies a State of Queensland had drawn up a state-wide water small part of the northwest of the catchment, and Mt. allocation plan and adopted a two-level approach Kinchant Conservation Park covers about half of the within each of its 35 catchments: (1) a water resources Sandy Creek catchment in the southeast of the study plan (WRP) specifying the objectives for meeting area. There are two dams, Teemburra and Kinchant, in the social, environmental and economic needs of the the planning area. The Mirani and Marian Dumbleton catchment; and (2) a resource operations plan (ROP) Rocks weirs control flows and levels within the Pioneer providing the details regarding how water resources River. The Teemburra Dam and downstream flow would be managed from day-to-day to meet these regulators were completed for irrigation usage about 3 objectives. These catchment plans are subsidiary years before the study was carried out, and the water legislation under the Water Act, and so their provisions licenses were still being taken up as the dam filled. The carry the force of law. Pioneer River is not overallocated, and the study area is To date, Queensland has completed 17 WRPs, has not regarded as being under stress. released three for pubic comment, and has two more The SEA-type study assessed the potential in preparation. The Pioneer WRP was approved in environmental impacts of increased water abstractions December 2002 ,and the ROP was approved in June in the Pioneer catchment. Environmental water 2005. requirements were assessed by a panel of experts Institutions and Governance Series 35 SEA case studies 4-9-09.indd 35 4/9/09 12:40:06 PM Strategic Environmental Assessment -- Improving Water Resources Governance and Decision Making through an environmental conditions study28 and an been exercised in a number of cases, so this oversight environmental flows report.29 The former assessed acted as a realistic evaluative driver for the production the current environmental conditions, the likely of the plans. conditions if all present water entitlements were utilized, and the key knowledge gaps. Specialist reports Professional drivers were also important. While were produced on geomorphology, hydrology, habitat, professional associations were not specifically involved, water quality, aquatic vegetation, riparian vegetation, water managers and aquatic scientists throughout macroinvertebrates, fish, other vertebrates, and Australia were concerned about the state of the country's estuarine and marine environments. The flow regime water resources. There was widespread acceptance of under current and full-water abstraction entitlements the need to ensure that environmental services were were modeled with the IQQM model.30 The maintained through adequate and timely water flows. environmental flows report quantifies the associations between changes in the flow regime of the waterways Although not as prominent as other drivers, public and their geomorphological and ecological impacts. opinion was probably the most powerful force behind This environmental assessment informed the decisions the inclusion of environmental concerns in these about water allocation between environmental and catchment plans. In the early 1990s, there had been various consumptive uses. widespread public dismay over the degradation of the waterways in the southeast, leading to the COAG This study was carried out under the Water Act 2000 agreement. Ten years earlier, a federal government had and not the Queensland Environmental Protection been defeated largely on environmental issues, and Act 1994, which has very limited provision for EIAs politicians were sensitive to public opinions on these of plans and policies. This case study illustrates an issues. This public interest in environmental water impact-centered SEA at the regional level, where issues was maintained throughout the 1990s, as shown the environmental assessment was undertaken by the public engagement in water allocation plans, independently of the plan, although the results of including the Pioneer Valley WRP. the assessment were integral to the water allocation decisions within the final WRP and ROP. Process Competence Accountable. The catchment planning exercise was led Instrumental Controls by the Queensland Department of Natural Resources A number of drivers operated to further the process. and Mines (now the Department of Natural Resources The 1994 COAG agreement and the 2000 Water Act and Mines), and involved other relevant departments, acted as the primary procedural drivers for the water stakeholders, and interest groups. The environmental allocation plan. The production of water allocation plans throughout 28Technical Advisory Panel. 2001. "Environmental Conditions Report. Pioneer Valley Water Resource Plan." Brisbane, Australia was overseen initially by the National Queensland, Australia: Department of Natural Resources and Competition Council and subsequently by the National Mines. 29 Water Commission. Both independent statutory Technical Advisory Panel. 2001. Environmental Flow Report. Pioneer Valley Water Resource Plan. Brisbane, Queensland, agencies had authority to recommend that the federal Australia: Department of Natural Resources and Mines. government withhold funds earmarked for the state 30Technical Advisory Panel. 2001. "Hydrology Assumptions governments under the COAG agreement if there was Report. Pioneer Valley Water Resource Plan." Brisbane, Queensland, Australia: Department of Natural Resources and insufficient progess with the reforms. This power had Mines. 36 Environment Department Papers SEA case studies 4-9-09.indd 36 4/9/09 12:40:07 PM Case Study 6. Environmental Flow Assessment, Pioneer Catchment, Queensland water assessment was carried out by a technical advisory information was used within the decision arena is panel comprising eight professionals with scientific not publicly available, and it is not possible to assess backgrounds in hydrology, geomorphology, and various whether the environmental studies provided sufficient speciality fields within aquatic ecology. The formal information and to what extent the recommendations environmental assessment method--the Benchmark from the environmental condition and flows reports method--had been published in the academic literature were utiilized. and was regarded within the academic community as comprising best practice. The panel's reports were publicly available on the internet and were available for Substantive Competence comment during the public consultation phase of the Integrated. Only two scenarios were assessed in the planning. They were not independently peer reviewed. environmental study--the current water abstraction The panel's reports provide extensive detail on how and the level of abstraction if all licenses were utilized environmental sustainability was assessed from both following the completion of the Teemburra Dam. fieldwork, existing data, and information, and from While this is quite a limited selection of scenarios, it comparision with comparable rivers in other catchments. does represent the outer limits of the range of likely levels of water abstraction and so was approriate in this Participative. The Water Act required the Minister catchment. The assessment was restricted to assessing for Water to form a community reference panel, the environmental aspects of the flow allocation rules including representatives of cultural, economic, and and did not include the social and economic aspects. environmental interests in the proposed plan area, However, the environmental, social, and economic once the intention was announced to draw up a water aspects were all considered together when the water resources plan. He was required to take notice of the allocation decisions were made. panel's recommendations when he was considering the plan. Submissions were also sought from the general Sustainability-led. While this study did not attempt public when the intention to prepare the plan was first to identify alternative development options that announced and again on release of the draft WRP and were more sustainable, the benchmarking framework ROP. A number of information sessions and meetings is quite robust and can readily be applied to other were also held with various interest groups in the plan scenarios. While the ROP specifies quite clearly the area to allow face-to-face feedback. environmental water requirements--such as minimum flows at different seasons of the year at strategic In the case of the ROP, a total of 226 submissions were locations--the way in which these operating rules received by an independent referral panel formed by the were derived from the environemntal water study and chief executive of the department. The panel considered the extent to which the environmental assets would the submissions and made recommendations to the be protected using these rules is not clear. The ROP chief executive on each submission. This process was requires ecological monitoring requirements and transparent, with a public report being produced31 assessments that will be used to establish whether the detailing each submission, the recommendation of the ecological assets in the catchment are protected with the referral panel, and the rhief rxecutive's decision with environmental flow regime in the WRP and ROP. This reasons. Iterative. The environmental flows study was timed to 31Department of Natural Resources and Mines. 2005. "Pioneer feed into the decisions about water allocation within Valley Resource Operations Plan: Community Consultation Report." Brisbane, Queensland, Australia: Department of Natural the Pioneer Valley. However, the way in which this Resources and Mines. Institutions and Governance Series 37 SEA case studies 4-9-09.indd 37 4/9/09 12:40:07 PM Strategic Environmental Assessment -- Improving Water Resources Governance and Decision Making monitoring program was developed separately using a interacting than is implied by such a simple set of risk assessment approach.32 possibilities. This case study illustrates how multiple drivers operate at different time scales and different Focused. The environmental conditions report and levels of visibility. The formal procedural drivers of the environmental flows report, together with the inter-government agreements and acts were actually hydrological modeling reports, provide an extensive base driven, in turn, by public pressure and, to a lesser of scientifically credible information on which to make extent, by professional recognition that action needed decisions. The key sustainability question within the to be taken on environmental water management. catchment was the need to maintain the environmental quality of the river system in the face of the gradual The process by which the evironmental considerations utilization of licenses for the new Teemburra scheme. were incorporated into the catchment-wide plan The study, in its choice of two scenarios for assessment, generally conformed well to the process criteria was focused on this question. The study, being required proposed by IAIA. While the substantive components under the Water Act, was customized to the overall of the environmental assessment were effective in their decision-making process required under the act. The own right in influencing the water allocation, they environmental reports were a significant input to the did not clearly meet all the IAIA substantive criteria. decision-making process, and the WRP and ROP were The minimal number of development scenarios designed to accommodate these environmental water and the lack of more sustainable development requirements. This was achievable because the Pioneer options emerging from the assessment are apparent River is not overallocated and there was little contention deficiencies when assessed against the IAIA criteria. about the need to protect the aquatic environment. Nevertheless, they were appropriate in this context and indicate that the IAIA criteria may be too Influential. The minister is required to take notice of the restrictive. In fact, the study was well-tailored to the study when making his final water allocation decision. requirements of the water allocation process and In that formal respect, it was influential. However, was influential in ensuring that the environmental the extent to which the environmental objectives water needs were met. This discrepency is indicative were maintained in the face of the development of the difficulty of applying formal criteria, still objectives is difficult to discern from the WRP and partially derived from EIA-centered approaches, to an ROP. Nevertheless, there has been no protest by instrument that has widened in definition in recent environmental groups about the plans, implying that years. the environmental objectives have been met. Lessons Learned 32 Although the proposed set of drivers are a useful B. Chessman, and C. Marshall. 2004. "Environmental flows monitoring and assessment framework." Canberra, Australia: structuring device, the real world is more subtle and CRC Freshwater Ecology. 38 Environment Department Papers SEA case studies 4-9-09.indd 38 4/9/09 12:40:07 PM Case Study 7. SEA of Mhlathuze Catchment, South Africa Background Approximately 160km north of Durban, the Mhlathuze Catchment (4,209 km2) in the province of KwaZulu- With the enactment of the 1998 National Water Act Natal (KZN) was chosen as a pilot area to gain (NWA 36 of 1998), South Africa abolished the concept experience with SEA for catchment planning. The of "private water." All water was transferred to the state, catchment lies within the Usutu-Mhlathuze WMA. with the Department of Water Affairs and Forestry The Mhlathuze River rises in the west at an altitude of (DWAF) being the trustee. The provisions of the NWA 1,519m and flows east 170km to the sea. The area is, divided the country into 19 water management areas by South African standards, a high rainfall catchment, (WMAs), each managed by a catchment management with rainfall generally ranging between 800 mm to agency (CMA). Key responsibilities of the CMAs were 1400 mm along the coastal belt. The catchment can to formulate catchment management strategies (CMS) be divided into three zones. Firstly, an upland region and issue water licenses. above the Goedertrouw Dam is largely undeveloped Under the NWA, basic human needs are the first communal land with extensive tracts of forestry. priority for water, followed by water to maintain Second, the central belt below the Goedertrouw Dam environmental services. Water for these purposes is held also includes extensive communal areas combined with in a "water reserve;" water is available for other users intensive irrigated agriculture producing sugar and only after these two needs have been met. The NWA citrus products. Finally, a coastal belt with high rainfall also requires that the whole water cycle is managed, so comprises forestry, dryland sugar cane farming, and land-based activities that use significant quantities of heavy industry. All industrial development occurs in the water, such as forestry and interception for farm dams, Richards Bay/Empangeni complex linked to the seaport will require water licenses. These activities are called facilities at the mouth of the Mhlathuze River. stream-flow reduction activities (SFRAs). These were The catchment is water-stressed.33 The total system new concepts in South Africa (and elsewhere) and, at yield for the catchment is estimated to be 270 million the time of passing the act, it was not clear how they m3/annum, yet water allocation exceeds the system should be operationalized. yield by 32.4 million m3/annum. Not all allocated DWAF adopted SEA as a tool for catchment water is utilized, but there is clearly insufficient management when it became clear that a wider frame of water for further development, particularly with the information was needed by decision makers operating under the NWA. CMAs would need to integrate 33Retief, F. (undated). "Quality and Effectiveness of Strategic environmental, social, and economic data when making Environmental Assessment (SEA) as a Tool for Water decisions about all forms of water use, and SEA offered Management within the South African Context." Potchefstroom, South Africa: School of Environmental Sciences and a participatory approach as required by the NWA. Development, North West University. Institutions and Governance Series 39 SEA case studies 4-9-09.indd 39 4/9/09 12:40:08 PM Strategic Environmental Assessment -- Improving Water Resources Governance and Decision Making requirements of the water reserve. The system yield The study is an example of an impact-centered SEA, will need to be enlarged through importation of water, undertaken to obtain information for a subsequent or the existing yield will need to be allocated more plan. The output of the SEA was intended to influence effectively. the CMS for the Mhlathuze Catchment prepared by the CMA, as well as decisions with regard to water The Mhalthuze Catchment SEA licensing. However, at the time of a review four years later, the CMA had not been established, and so no The study34 had been initially focused on acquiring CMS had been formulated and the process for granting information and developing a coherent picture of water licenses also had not started. available water within the catchment for licensing water use for new forestation. Its coverage was subsequently With funding from DFID, the pilot SEA was undertaken expanded to include all water uses in the catchment, by a team from the DWAF subdirectorate responsible for including the implementation of the concepts of the stream-flow reduction allocations. The study included human and ecological water reserves. This meant that specialist studies on water quantity, conservation and the SEA had to consider not only all activities (not just biodiversity, social characteristics, and economics. forestry) within the catchment, but also all levels of decision making, from project to policy level. Subsequently, the exercise was repeated for the Usutu- Mhlathuze WMA to see if a larger area (about six times In brief, the objectives of the SEA35 were: the size of the Mhlathuze Catchment) could also be assessed using the same procedure. This scaled-up study · To piece together various legislation, policies, was not successful. Unlike the SEA of the Mhlathuze regulations, and planning initiatives and to make Catchment, it was not possible to conceptualize issues sense of the large amounts of information across the disparate catchments that made up the · To play a coordinating role within the catchment, WMA. There were also difficulties with engaging such bringing various initiatives under one umbrella a large and diverse community. Whereas individual · To sketch out the water resources picture, communities and farmers could be contacted in the providing everyone with a common baseline Mhlathuze Catchment, this was much more difficult and understanding of the technical issues and across the WMA. Without the focus provided by the creating a framework for talking about sustainable single catchment, this larger SEA lost direction and was development never completed. · To offer an all-embracing approach, incorporating social, economic, and biophysical aspects within an Institutional Controls integrated system · To add value to the information gathered by The SEA was not required under either the NWA or expressing a better understanding of context and the environmental legislation. Although the study importance · To remain strategic in nature; the SEA should provide the catchment with broad-level answers 34Department of Water Affairs and Forestry. 2000. "Strategic as to how and where development trends can be Environmental Assessment for Water Use ­ Mhlathuze catchment ­ KZN." Pretoria, South Africa: Department of Water Affairs and allowed to take place (within ecological, social and Forestry. economically sustainable boundaries) 35Steyl, I., D.B. Versfeld, and P.J. Nelson. 2000. "Strategic · To provide the residents of the Mhlathuze Environmental Assessment For Water Use. Mhlathuze Catchment ­ KZN." Pretoria, South Africa: Department of Catchment with a decision support system (DSS) Water Affairs and Forestry. 40 Environment Department Papers SEA case studies 4-9-09.indd 40 4/9/09 12:40:08 PM Case Study 7. SEA of Mhlathuze Catchment, South Africa was funded by a development partner, there was no Participative. A social analysis, carried out as part of the instrumental driver. Instead, there was a growing SEA, focused on the social and political structures and recognition within the Department of Environmental dynamics within the catchment in order to understand Affairs and Tourism (DEAT) and DWAF that tools like the needs of the communities. A formal public SEA were required for taking the integrative approach participation process was conducted as part of the social to water management required under the NWA and the analysis component and was considered a cornerstone White Paper on Water Policy.36 of the SEA. It was decided to focus the participation process on the communal rural areas because they were Procedural/Process Competence the largest group and presented the biggest need. A combined stakeholder workshop was also held, attended Accountable. There was no single clear client for the by representatives of agriculture and industry. The good study. DWAF was responsible for carrying out the attendance suggested that the participation process was Mhlathuze Catchment SEA because they wanted to relatively well-received, although the nonalignment of explore the use of SEA for comprehensive catchment catchment boundaries with institutional boundaries left planning. Because of its exploratory nature, the pockets of the catchment unrepresented. Overall, the objectives were vague. The change in focus of the study catchment-scale SEA was successful in getting disparate from just forestry to all water using activities and from groups of people together and interacting. just project to policy level "over-elaborated its potential and eroded its clarity of purpose."37 The study was also Iterative. The timing of the SEA process was such intended to provide information for the CMS, which that it was not able to directly influence the decision was the responsibility of the Mhlathuze CMA. The making by the CMA, because CMA were not CMAs were not operational at the time, and so there established at that stage. Even four years later, at the was little direction over this later objective. time of the retrospective review, the CMAs were still not functioning, and so the SEA had lost currency The subsequent SEA for the WMA did not receive and immediacy. The SEA was also initiated before the purposeful direction from the department and finalization of the new municipalities in 2000. eventually ceased. The team undertaking the catchment SEA was 36Republic of South Africa. 1997. "White Paper on Water technically proficient and the study was carried out Policy." Pretoria, South Africa: Republic of South Africa. 37 impartially and professionally. The study team was Retief, F. (undated). "Quality and Effectiveness of Strategic Environmental Assessment (SEA) as a Tool for Water advised by an international consultant experienced Management within the South African Context." Potchefstroom, in SEA,38 and the study was extensively reviewed South Africa: School of Environmental Sciences and Development, North West University. nationally39 and internationally,40 both during and on 38Peter Nelson, Bristol, UK. completion of the study. 39DWAF. 2000. "SEA for water use in South Africa ­ Formal review of process." Pretoria, South Africa: Department of Water The catchment-scale SEA was extensively documented, Affairs and Forestry. Weaver, A. 2001. "Review comments on the report: Strategic consisting of a main SEA report and specialist studies Environmental Assessment for water use in the Mhlathuze on the social, biophysical and economic aspects of the Catchment ­ KZN." Stellenbosch, South Africa: Council for Scientific and Industrial Research. catchment. It gives a clear picture of the state of the 40Lee N. 2000. "Final review report: SEA for water use ­ environment and sustainability issues in the catchment. Mhlathuze catchment ­ KZN Province." Manchester UK: One of the achievements of the study was to bring the University of Manchester. Wilson, E. 2001. "Review report: Mhlathuze catchment SEA." overallocation of water to the fore. (Unpublished report.) Oxford: Oxford Brookes University. Institutions and Governance Series 41 SEA case studies 4-9-09.indd 41 4/9/09 12:40:09 PM Strategic Environmental Assessment -- Improving Water Resources Governance and Decision Making On the other hand, the exploratory objective of the exactly how they would use the GIS. It was also a result catchment SEA was not driven by a specific deadline or of the scoping component of the catchment SEA not instrument, and the study was able to provide important being conducted properly, and the vague objectives insights into the value of SEAs for regional decision failed to provide focus for this part of the study. making while this was a current topic within DWAF. As discussed above, the Mhlathuze Catchment SEA could not be customized for the decision process at Substantive Competence catchment or municipal levels because these structures Integrated. The SEA explicitly considered the were still being established. However, it did provide biophysical, social, and economic impacts of the a rich source of information for considerations at use and allocation of water in the Mhlathuze DWAF level. This was a result of the process of the Catchment. These assessments were integrated for the SEA and the many reviews, rather than the specific rural communities, in that the social and economic output of the SEA. consequences of water allocations to other land uses became very clear during the analysis. One of The SEA of the Usutu-Mhlathuze WMA also lacked the economic studies assessed the volumes of water direction and was never completed. used and the value per m3 of water used for different The Mhlathuze catchment SEA took about 2 years and activities, so that a consistent picture could be cost about R2m. The subsequent Usutu-Mhlathuze established for making water allocation decisions. WMA SEA took about 3 years and cost R5m. The study was intended to inform all levels of decision Influential. The catchment-level SEA had very little making, from project to policy level. The absence of direct influence on the catchment or its process. The institutional structures meant that it was unable to be CMA has not been established, so no catchment tiered to project or plan levels, but it was able to be management strategy has been formulated and the influential upward to the program/institutional level of process for granting water licenses has not started. the DWAF. However, the SEA did raise awareness among rural Sustainability-led. Based on detailed analysis of communities and advanced their participation in water- biophysical, social and economic issues, the catchment related decision making.41 SEA suggested establishing sustainability criteria and The catchment-level SEA was more influential within indicators covering the effects of development on DWAF. It provided a clear picture of the state of the biophysical environment, on social and cultural overallocation of water within the catchment and the conditions, and on the economy. While the study did relative economic and social values of changing the not suggest methods for weighting these criteria, it did allocations as licenses were issued. In the absence of a provide a consistent structure for making decisions CMA and its catchment management strategies, DWAF about development. This was a significant step forward has developed an internal strategic perspective (ISP) from the more ad hoc methods adopted previously. for the Usutu-Mhlathuze to guide decisions. The SEA Focused. The reviews indicated that the SEA lacked informed this ISP by providing data, and was influential focus in important respects. The data collection for for the development of ISPs for other WMAs. the GIS was unfocused and not strategic. This was a 41 consequence of the CMA not being formed, and the DWAF. 2000. "SEA for Water Use in South Africa ­ Formal Review of Process." Pretoria, South Africa: Department of Water absence of catchment managers who could enunciate Affairs and Forestry. 42 Environment Department Papers SEA case studies 4-9-09.indd 42 4/9/09 12:40:09 PM Case Study 7. SEA of Mhlathuze Catchment, South Africa At a wider level, there was an expectation that SEAs stakeholder-responsive, environmentally aware water would be undertaken for all catchments, but this has management--IWRM. The extent to which the not materialized. The proposed Directorate for SEAs SEA contributed is difficult to judge and, without was not formed, and further SEAs are unlikely to be understanding the internal dynamics of the department undertaken for multisectoral water planning at the at that time, it is difficult to discern what the catchment or WMA level. The reasons for this are not underlying lessons are. Nevertheless, it illustrates the clear, although it seems to be linked to the restructuring leverage that an SEA can achieve when it occurs at a of the department and loss of staff. Instead, SEAs time of transition in institutional structures and there have been used for specific issues. An SEA has been is a need to move in new directions. Ironically, this conducted into forestry development in the Eastern shift occurred when the department shifted away from Cape; DWAF is considering an SEA in the Sandveld catchment-wide SEAs to single-issue SEAs. (Western Cape West Coast) dealing with the problem of overabstraction of groundwater with concomitant Retief, in his review, concluded that "the lack of clarity destruction of wetlands; and DEAT and DWAF are on the identity of SEA, its very wide remit, uncertainty about to undertake an SEA for the de Hoop Dam on as to which decision making processes it aimed to the Steelpoort/Olifants system--a dam with important inform, and general failure to convince decision makers implications for the Kruger National Park. of the added value of SEA, saw the SEA initiative within DWAF wither." Although the influence of the SEA appears to be quite limited from these specific outcomes, it has had a more Both the catchment and the WMA SEAs illustrate subtle but powerful influence. Under the WMA, DWAF the importance of having clear objectives, a focused had to shift from being a water and forestry service client, and a well-designed plan of work. The studies delivery organization to one focused on coordinating were weak in these aspects, and did not lead to direct and planning in a participatory manner. However, the outcomes. department did not understand IWRM, and there was some resistance to the changes. The SEA did The catchment and WMA SEAs also illustrate the contribute to this shift toward a more holistic approach, importance of scale. The heterogeneity of the WMA including the social and environmental aspects of water mitigated against a single SEA study, especially because resources management and the need to promote public communities with diverse objectives needed to be involvement.42 All development activities are now involved. The Usutu-Mhlathuze SEA also shows the assessed from a social, environmental, and economic importance of commitment by senior managers to perspective. The SEA influenced this shift in attitude. ensure that these potentially difficult studies are carried through. Lessons Learned There are both positive and negative lessons from the SEA. 42Retief, F. (undated). Quality and Effectiveness of Strategic Environmental Assessment (SEA) as a Tool for Water Its biggest success was in helping bring about a change Management within the South African Context. Potchefstroom, South Africa: School of Environmental Sciences and of attitude within DWAF toward multisectoral, Development, North West University. Institutions and Governance Series 43 SEA case studies 4-9-09.indd 43 4/9/09 12:40:10 PM SEA case studies 4-9-09.indd 44 4/9/09 12:40:10 PM Case Study 8. SEA for Water Resources Planning, Palar Basin, India Background of untreated sewage is discharged daily in the basin, and there are high nitrate concentrations in localized areas The Palar River Basin in Tamil Nadu State in the south because of excessive fertilizer use.44 In addition, there of India has been the site for one of the first basin- is intense competition among industry, agriculture, wide strategic assessments of environmental and social and domestic use for access to the basin's scarce water issues in South Asia. The basin has a population of resources. 5.4 million people and covers 18,000 km2. Because the Palar River runs for only a few days during the Until recently, there was no river basin management North-East monsoon season, the population is highly authority in the Palar Basin to coordinate access to dependent on adequate, good quality water from tanks water and take a cross-sectoral approach to polluting and groundwater. activities. In 2000, the Government of Tamil Nadu formed the Palar Basin Development and Management The basin faces some serious water-related Board,45 with 23 members representing key environmental/social issues. Sand mining in the river departments, local districts, and administrators. The bed has lowered river levels to the point where some Institute of Water Studies (IWS) at the Water Resources tanks no longer collect water efficiently. The basin Organization (WRO) provided the technical secretariat is the center of Tamil Nadu's leather industry, with for the Board.46 The initial task of the IWS/WRO was about 600 tanneries located in the mid to upper basin. to develop a database, undertake research, and apply a The industry uses numerous chemicals, including water management model to the basin. However, the large amounts of salt, chromium sulphate, sulfuric board had not taken an active role in managing the acid, and ammonia. Although the tanneries now use basin's water resources, primarily because there was no either common effluent treatment plants or individual operational framework--vision, objectives, processes, effluent treatment plants, there is a legacy of high levels guidelines, communications, etc.--for management. of chromium and salt in the surface and groundwater. Salt levels of over 6,000 mg/l have been recorded in the groundwater in the vicinity of tanneries. This has 43http://news.bbc.co.uk/2/hi/science/nature/6063344.stm#map severely impacted agricultural yields, resulting in a 44Modak, P. 2003. "Development of a SEA based Framework for landmark decision mandating compensation from the Sustainable Management of Palar River Basin." Discussion Note for workshop. Washington, DC: World Bank. tannery industry to about 30,000 affected farmers. The 45The Palar and Thambiraparani Basin Development and area near Ranipet is also heavily polluted by tannery Management boards in Tamil Nadu State were the first two broad stakeholder basin management authorities formed in South Asia chrome sludge impacting nearby drinking water with support from the World Bank-funded Tamil Nadu Water supplies--so much so that it has earned the dubious Resources Consolidation Project (TN WRCP). 46 distinction of being ranked among the top ten most The WRO had been established and the IWS strengthened under a reorganization of water planning and management polluted sites in the world.43 Nearly 300 million liters through the TN WRCP. Institutions and Governance Series 45 SEA case studies 4-9-09.indd 45 4/9/09 12:40:10 PM Strategic Environmental Assessment -- Improving Water Resources Governance and Decision Making In addition, the IWS focused on data collection rather process was also notable for its use of the technical skills than interpretation and analysis. that the IWS had developed over the previous few years. Maps, data reports, remote sensing imagery, and models In 2002, the World Bank funded a short technical were used to develop a common sense of understanding assistance project within the Tamil Nadu Water on which issues could be debated and objectives and Resources Consolidation Project to undertake an SEA principles could be developed. Finally, the linkages of the Palar Basin to help the IWS/WRO develop an among environmental, social, and economic issues was operational framework for the board. emphasized throughout the process. The SEA The three key issues that emerged from this discussion included: The first phase of the SEA consisted of: 1. Water availability, including degraded traditional · Scoping ­ review of reports, IWS database, tank systems, good groundwater access, and initial discussions about issues, field visits for competing demands familiarization 2. Water quality, especially tannery-related and also · Capacity building ­ introduction of SEA concepts increasingly from municipal and other industrial and data analysis for IWS staff sources · Identification of issues ­ brainstorming workshop 3. Sand mining, which accounted for around 5000 with IWS and environmental staff from WRO, use truckloads a day and reduced groundwater of external experts in workshop to analyse issues availability and threatened water infrastructure and previous responses · Forming Vision and Guiding Principles ­ drafted An action plan was developed in a second phase to vision, principles, and objectives through achieve the objectives and address these key issues. A brainstorming workshop, consultations with draft action plan was developed through a case-study- institutions and stakeholders in the basin; based workshop in late 2003 in Kancheepuram attended finalization of vision, principles, and objectives by diverse stakeholders from water dependent sectors, academia, NGOs, and government agencies. The plan This first phase ended with agreement among the major covered policies and regulations, institutions, data sectors and interest groups on the priority issues facing collection and information, equipment, and resources. the basin, a vision for the future, and objectives and This draft action plan was then further refined through guiding principles for achieving that vision. The Vision multistakeholder workshops customized to the interests Statement was adopted at a multistakeholder SEA of each group, before being presented to the Palar Basin workshop at Kancheepuram in December 2003. Management Board for discussion. The process had initially focused on building the Due to follow-up and parallel efforts, there has been capacity within the IWS staff and reorientating them to progress on all three key areas. Projects to improve a more active analytical and advisory role. Once their surface and ground water availability have been confidence and skills had been increased, there was formulated and proposed for financing under the engagement with a wider set of stakeholders to formulate recently approved World-Bank-funded $485 million the vision, objectives, and principles. Most importantly, Tamil Nadu Irrigated Agriculture Modernization there was a common understanding of the priority issues and Water-Bodies Restoration and Management facing the basin among the key stakeholder groups. The (IAMWARM) Project. Water quality concerns are 46 Environment Department Papers SEA case studies 4-9-09.indd 46 4/9/09 12:40:11 PM Case Study 8. SEA for Water Resources Planning, Palar Basin, India being somewhat addressed, both through industry Palar Basin Development and Management Board. upgrades and improved regulation. New sand mining The study was guided by an external consultant regulations have been implemented throughout the experienced in SEA and integrated river basin state to improve the sustainability and governance management. It was carefully designed to build implications of this activity. Many points on the capacity in the IWS, build support with stakeholders, action plan are expected to be implemented by the and provide a pilot for other river basins, while Palar Basin Management Board, with assistance from achieving valuable outputs for the Palar basin. the IAMWARM project. Based on the experience of The structured stakeholder workshops and other the Palar Basin pilot, the project will fund 63 other interactions were carried out professionally and fairly, sub-basins within 16 basins47 in Tamil Nadu State with all attendees being able to participate and have to form basin or sub-basin boards and conduct SEA a frank exchange of views. The outputs--vision studies to identify issues, develop a common vision statement, objectives, principles, action plan--were and objectives, and build capacity for cooperative not suited to independent review, but were widely management. assessed by stakeholders before being acted upon. Participative. Participation was one of the pillars of Institutional Drivers this SEA. However, the participation was carefully There was no legislative or instrumental driver for developed, with the core technical group at IWS this SEA since it was neither required under state first being informed about and trained in the process law nor as a condition of the (then) Water Resources before a wider group of stakeholders was involved. Consolidation Project. Instead, it arose from discussions The stakeholders represented the main water-related between Bank staff and a small group of senior organizations from state and regional institutions, managers about the need for a common framework industry groups, NGOs, and academics. Their views within which the critical water resource issues within were included in the SEA outputs. The draft action the basin could be handled. Many state departments, plan was developed directly by the stakeholder groups central agencies, and local institutions welcomed in a major workshop in late 2003. this rare opportunity to interact in a spatial context and coordinate their programs. The basin board and Developing a common information base among the state WRO continued to support the study as the participants was a significant issue, since many it progressed and resulted in the vision statement, were only familiar with either their industry or their objectives, principles, and action plan. locality. Technical aids--including GISs, maps, and remote sensing--were used to help develop a common There was no pressure for the study from either the understanding of the whole basin. Nevertheless, the public or professional organizations, although the SEA basin proved too big an area for many stakeholders to gained increasing support from all stakeholders as it relate to; sub-basins would have been more suitably progressed. The continuing and widespread support for sized regions for planning. the SEA pilot is shown by its replication to all but one of the basins within Tamil Nadu in the follow-on project. Procedural Competence 47Chennai, Palar, Varahanadhi, Ponnaiyar, Paravanar, Vellar, Accountable. The IWS was the primary agency to Agniyar, Parambikulam Aliyar, Pambar Kottakarayar, Vaigai, Gundar, Vaippar, Kallar, Tamiraparani, Nambiyar, and Kodayar undertake this SEA activity to support the fledgling Basins. Institutions and Governance Series 47 SEA case studies 4-9-09.indd 47 4/9/09 12:40:11 PM Strategic Environmental Assessment -- Improving Water Resources Governance and Decision Making Iterative. There was no issue in this case of ensuring client efforts through the Tamil Nadu WRCP, and took that SEA outputs met the timetable of an external about a year to complete. policy, plan, or program. The SEA was conducted to develop its own basin action plan. The procedure was Influential. The SEA was highly influential within iterative in that it successively built up the management and outside the basin. Within the basin, the study framework for the basin and will now be rolled out in provided the board with a management framework other river basins throughout Tamil Nadu. and a credible action plan for subsequent funding and implementation. The SEA study also provided a blueprint, plus some lessons from experience, for Substantive Competence strengthening integrated river basin management and Integrated. The workshop approach to the SEA stakeholder participation in other basins/sub-basins allowed all key issues to be raised and discussed before within the state (e.g. the sub-basin of the Cooum River prioritizing. Similarly, the responses contained in the that flows through the state capital of Chennai). action plan were synthesized out of the outputs from three theme groups, which considered a wide variety of Lessons Learned potential actions. While these options were informally assessed by the stakeholders, they were not subject to The need for various institutions to develop a shared formal analysis or assessment. appreciation of the inter-relationship of issues and options in a basin was found to be critical (e.g. for The linkages among environmental, social, and water quality monitoring, groundwater recharge, economic issues was a central component of the analysis sand mining, etc.). For an SEA, it is critical to get of issues and actions. the ownership/demand/buy-in of key stakeholders (esp. in the counterpart government institutions) for Sustainability-led. This SEA was not undertaken as an them to play a catalytic/arbitrator role. In this way, impact-centered assessment of a proposed policy, plan, stakeholders can all grow together as part of the process, or program where more sustainable alternatives could the recommendations have a good chance of being be advanced. Instead, environmental sustainability eventually implemented, and spill-over impacts to other was intimately linked to economic and social well- areas are improved. being, and was a central concern in drafting the vision, objectives, and action plan. SEA is best done when not viewed as a "safeguards" exercise for projects, but as part of ongoing institutional Focused. The SEA exercise provided the knowledge development and to evolve a more holistic longer-term base for planning and decision making by the board, coordinated framework for investments. which they had lacked prior to the SEA. It selected and focused on a few key environmental issues that needed Environmental, social, and economic issues are very to be tackled to make life more sustainable for basin intertwined in basins such as the Palar Basin; hence, residents. The exercise was tailored to the needs of the an SEA quickly evolves into an integrated basin board and its multistakeholder composition. Given the planning approach and one should not focus overly focus and impetus it provided to the board, the study on the environment in an SEA. In a situation where was highly cost-effective. The study was undertaken the principles of IWRM are not understood and through a $20,000 Norwegian Trust Fund grant, with mainstreamed, an SEA provides a vehicle for introducing support from Bank supervision mission budgets and some of the concepts through another mechanism. 48 Environment Department Papers SEA case studies 4-9-09.indd 48 4/9/09 12:40:12 PM Case Study 8. SEA for Water Resources Planning, Palar Basin, India There needs to be a merging of analytical and reactive, crisis-management mode to one characterized stakeholder participation processes to enable a useful by a shared vision and a structured approach to SEA approach. Analysis requires a good knowledge management. An SEA-type approach could be a useful base and modeling. Stakeholder participation needs part of such a change management process. a structured plan for engagement with customized consultation approaches for different stakeholder There need to be some tangible outcomes early in groups and appropriate platforms for interaction. the process (low hanging fruit) to retain stakeholder interest and participation. That is, there should be a Approaches need to be evolved at different spatial focus on products and outcomes that matter to people scales. For example, in this SEA, collating views of (e.g. basin/sub-basin atlases, joint learning process to stakeholders scattered hundreds of kilometers apart understand the viewpoints of different stakeholders, over the entire basin was unwieldy. Learning from this, implementation of "quick-wins" on knowledge, the next IAMWARM project will use such approaches coordination, and investments). at a sub-basin level (usually with one central town/ city) to enable stakeholders to interact on a more Finally, SEA is not an event or a series of events; it is limited set of issues and make decisions at a more a process where as much learning occurs through the appropriate level. process as through the outcomes. If successful, such an approach evolves into a process in perpetuity for Change management is essential for moving an monitoring, coordinating, and addressing evolving institution faced with multiple severe issues from a issues in the basin/sub-basin. Institutions and Governance Series 49 SEA case studies 4-9-09.indd 49 4/9/09 12:40:12 PM SEA case studies 4-9-09.indd 50 4/9/09 12:40:12 PM Case Study 9. Nam Theun II Hydropower Development, Lao Peoples Democratic Republic Background for domestic consumption. The project will consist of a dam creating a 450km2 reservoir on the Nam Theun The Lao People's Democratic Republic has a population River on the Nakai Plateau, a tunnel to carry water to of 5.7 million and a per capita income in 2003 of $340, the generating station below the plateau, a channel to making it one of the poorest countries in Southeast discharge the water into the Xe Bang Fai River, and Asia. The country needs a GDP growth rate of 7 associated transmission works.49 percent to meet its poverty reduction targets. In recent years, it has nearly achieved that target, with an average The government has gradually improved its growth rate of 6 percent. The Government of the Lao environmental and social protection legislation and PDR has a target of 90 percent of households to be regulations with assistance from the World Bank connected to electricity by 2020. Domestic demand and the Asian Development Bank.50 However, the was forecast to be 378MW in 2005, rising to 548 MW implementation of these regulations is limited by in 2010 and 956 MW by 2020.48 the capacities of staff in the Ministry of Industry and Handicrafts and the Department of Environment under The country has the largest hydropower potential in the the Science, Technology, and Environment Agency. region, with only a small percentage of this potential developed at present. In addition, the country has Earlier dams, including the Nam Hinborn Dam significant undeveloped coal resources. Hydropower further downstream on the Nam Theun River, have and minerals have been two of the country's major had harmful social and environmental outcomes. The growth drivers, with sales of power to neighboring government recognized that the NT2 project needed countries accounting for 30 percent of foreign earnings to pay greater attention to minimizing environmental in 2003. Export demand is difficult to forecast, but and social costs and compensating affected people. The export-oriented hydropower plants are expected to project has been subjected to widespread international provide 1,250MW by 2010 and 2,796MW by 2020. Lao PDR now has bilateral power trade MOUs with Thailand (3,200 MW) and Vietnam (1,500 MW). 48Norplan. 2004. "Lao PDR Hydropower ­ Strategic Impact Assessment. Final Report." Prepared for Lao PDR Ministry of The country has an extensive portfolio of hydropower Industry and Handicrafts and the World Bank. Oslo, Norway: projects under study or under preparation, of which Norplan. 49World Bank. 2005. "Nam Theun II Project Appraisal Nam Theun II (NT2) is the largest. This project, due Document." Washington, DC: World Bank. for completion in 2010, will result in an increase in 50Norplan. 2004. "Lao PDR Hydropower ­ Strategic Impact generating capacity of 1,070 MW, of which 995MW Assessment. Final Report." Prepared for Lao PDR Ministry of Industry and Handicrafts and the World Bank. Oslo, Norway: will be exported to Thailand and 75MW will be used Norplan. Institutions and Governance Series 51 SEA case studies 4-9-09.indd 51 4/9/09 12:40:12 PM Strategic Environmental Assessment -- Improving Water Resources Governance and Decision Making scrutiny and criticism. The decision to proceed with the Biodiversity Conservation Area caused by improved project has considerable symbolic importance for the access and population increase in the surrounding Lao PDR government, demonstrating the government's area; and the institutional capacity to handle these openness to private sector investment, ability to issues. They also reviewed the potential impacts of handle complex environmental and social issues and planned developments in non-power sectors (transport, make difficult tradeoffs, and willingness to engage in irrigation, water supply/sanitation, forestry, fisheries, participatory decision making. mining, health, education, conservation, poverty alleviation, and protection of minority groups) in both The environmental and social issues arising from Lao PDR and regional countries. NT2 include resettlement of residents, restoration of their livelihoods, wildlife management programs The study summarized these potential cumulative on the Nakai Plateau, protection of the Nam Theun impacts at 5-year and 20-year horizons over five watershed, and mitigation of downstream impacts on regions in the vicinity of the NT2 project. For Xe Bang Fai and Nam Theun rivers from the interbasin example, the study assessed the cumulative downstream water transfer.51 There have been numerous studies changes in the Mekong River Basin from NT2 as and extensive consultation with affected stakeholders, well as other potential developments in the basin. starting in the mid-1990s and intensifying in 2004 and It recommended a number of institutional and 2005. These have led to modifications to the project management improvements and capacity building design to minimize the impacts of the development, activities to improve Lao PDR's ability to deal with including establishing operating rules for downstream these cumulative issues. river flows that help maintain the environmental health and social use of the rivers. In addition to the CIA, a Strategic Impact Assessment (SIA) was carried out as part of the environmental assessment for the NT2 project. This assessed the The Cumulative and Strategic Impact sector-wide implications, including environmental Assessments and social impacts, from 22 planned hydropower The EIA studies included a cumulative impact assessment developments within Lao PDR over a 20 year period (CIA) for proposed dams in the NT2 region--the to 2022. The study resulted in recommendations Mekong, Nam Kading, Xe Bangfai, and Hinboun for strategic improvement of environmental and basins--so that potential environmental and social issues social management in order to reduce impacts and could be uncovered and assessed in advance.52 This was manage the sector in an environmentally and socially primarily a desk study by a team of international experts sustainable manner. with diverse social and environmental specialist skills, although an initial workshop was held with government The study relied on an earlier study53 of the ministry staff and NGOs. potential impacts of these planned developments The team assessed regional impacts from the NT2 51Not all environmental issues were treated to the same extent. development, including changes in water quality and Thus, flows for environmental benefits below the dam were flow along the Nam Theun/Nam Kading, the Xe based on a predetermined flow amount rather than an a priori environmental flow assessment. Bangfai basins and parts of the Greater Mekong River; 52Norplan. 2004. "Cumulative Impact Analysis and Nam Theun regional health issues and health service; improved 2 Contributions. Final Report." Oslo, Norway: Norplan. 53 infrastructure, including roads, electrification and water Worley International and Lahmeyer International. 2000. "Hydropower Development Strategy for Lao PDR." See "Project supply; threats to the Nakai-Nam Theun National Catalogue" annex to the study. 52 Environment Department Papers SEA case studies 4-9-09.indd 52 4/9/09 12:40:13 PM Case Study 9. Nam Theun II Hydropower Development, Lao Peoples Democratic Republic to provide some generalized qualitative assessments The trust that had developed between the government of environmental and social impacts from the suite and the multilateral financing agencies over the years of of developments. It also provided a brief qualitative preparation was central to the government's persistence consideration of alternative sources of energy and in undertaking these extensive environmental and social alternative programs for developing the country's assessments. hydropower potential. Finally, the study provides a generic discussion of water-related and land-related environmental impacts and provides some general Process Competence suggestions on improvements to the regulatory and Accountable. The clients for these SEA studies are clear. administrative environment and for improved capacity The Social and Environmental Management Division through training. None of the recommendations are of the Department of Electricity in the Ministry of specifically tied to the cumulative effect of the program Industry and Handicrafts has immediate responsibility of hydropower projects. for assessing the environmental and social impacts of power development projects, although the These SEA studies are examples of impact-centered and Department of Environment has overall responsibility institution-centered SEAs carried out independently for environmental safeguards. Both studies were of the project and are unusual in that they are part of conducted fairly and professionally, although the CIA the environmental assessment for a specific project study is notably more rigorous, balanced, and detailed development. than the SIA study. The information on sustainability issues is obtained from a diversity of sources in the Instrumental Controls CIA study, although the SIA study relied on fewer sources; both are adequately documented. Neither Both SEA studies were undertaken as part of the study was subject to independent peer group extensive environmental and social assessment for the assessment, although both had to satisfy the standards NT2 project development required by the World Bank of external funders, the ADB, and the World Bank. and other development partners--an instrumental driver. The level of international scrutiny that the Participative. Both reports were essentially desk project was subject to acted, in turn, as a powerful driver studies, with neither engaging in extensive stakeholder for the Government of Lao PDR, the World Bank, and discussions. The CIA study sought information from other lenders to undertake world leading environmental Lao PDR ministries and NGOs through an inception assessment, including these strategic assessments. These workshop; there is no information provided on the public drivers differ from those in other projects because extent to which the SIA study involved interest groups. they came from international NGOs rather than from There was already an extensive stakeholder engagement the stakeholders directly affected by the project. program under way as part of the EIA, and it was appropriate to confine these studies to desk assessments While the Lao PDR environmental requirements (or at least confine the interactions to government have been progressively strengthened over the last agencies) because of their detachment from current decade, they do not specifically require these strategic issues. However, the CIA, which considered the assessments to be carried out for individual project development paths of regional countries, did not appear developments. Nevertheless, the government was keen to have held discussions with representatives of these to demonstrate its environmental and social credentials governments. and agreed to these additional assessments--a form of professional driver. Institutions and Governance Series 53 SEA case studies 4-9-09.indd 53 4/9/09 12:40:13 PM Strategic Environmental Assessment -- Improving Water Resources Governance and Decision Making Iterative. Being published in 2004, both studies were to approve the project. However, both studies do available in time to be included in the decisions on provide valuable information for future program the design of the NT2 project and the decision by the decisions by setting the scene for cumulative and development partners to proceed with funding. While transboundary environmental and social impacts the CIA study does provide sufficient detail to be able as Lao PDR's hydropower development program to guide future power development strategies, the SIA proceeds. study is too generalized to provide assistance. Lessons Learned Substantive Competence These examples of SEAs are unusual in that they were Integrated. While both studies are strategic in that they triggered by, and were part of, a project-level EIA considered the social and environmental implications study rather than the other way around. The NT2 of hydropower development beyond just the NT2 project was so far advanced and so dependent on project, only the CIA study included other sectoral resolution of immediate project-related environmental developments within and outside Lao PDR. Both and social issues, that these more strategic studies incorporated sectoral development policies and were unlikely to be influential. Nevertheless, the CIA strategies, particularly the CIA study, into their study provided reassurance that cumulative impacts recommendations. The SIA study was clearly tiered were manageable and gave direction to future capacity to project level decisions about hydropower options. building and institutional initiatives for handling Both recommended improvements in legislative them. The lack of detailed analysis and limited reliance and institutional structures, including capacity for on data in the SIA study limited its recommendations environmental management. to generalities and consequently diminished its influence. Focused. The CIA study provides sufficient information to give a strategic context for integrating potential The studies also illustrate that, although stakeholder social and environmental issues into decisions on engagement is important, the relevant stakeholders hydropower development over the next 20 years. On for longer-term strategic studies such as these can be the other hand, the information base for the SIA study confined to governments and some strategic partners is relatively weak, and its recommendations are generic such as international funding organizations and some and do not emerge from the information collected. NGOs. Local groups potentially affected by decisions Both studies were commissioned as part of the larger yet to be taken some years hence are unlikely to engage environmental and social assessment that accompanied in these strategic studies. NT2, and so are necessarily customized to the decision- making process. Finally, the studies illustrate the importance of trust and good working relationships between the government Influential. Neither study was likely to have been and the development partners. This factor is seldom influential for the purpose it was commissioned-- discussed or analyzed, but without it, the complex and assisting in environmental and social assessment of the long-running environmental and social analyses, both NT2 power development project--although the CIA tactical and strategic, would not have been initiated study provided both government and development or completed to provide the strong basis on which the partners with the context for their subsequent decision decision to proceed with the project was undertaken. 54 Environment Department Papers SEA case studies 4-9-09.indd 54 4/9/09 12:40:14 PM Case Study 10: Transboundary Diagnostic Analysis and Strategic Action Program, Lake Victoria, East Africa Background biodiversity; degradation of fringing wetlands; and a decline in water levels from excessive abstractions At 68,000 km2, Lake Victoria is the second largest for hydropower. Issues in the lake basin include freshwater lake in the world by area. However, it deforestation and erosion, reductions in river flows, has a relatively small basin (compared to the lake increases in riverine turbidity, and loss of terrestrial area) of 193,000 km2. Uganda, Kenya, and Tanzania biodiversity. are riparian to the lake, while parts of Rwanda and Burundi lie within its basin. The lake originally Because of the magnitude of the issues and the contained one of the world's most biodiverse stocks dependence of the basin population on natural of fish--in the last 50 years, over 200 species of fish resources, a number of donors (World Bank, EU, have disappeared from the lake, although some species FAO, Sida, DANIDA, UNDP, GEF) have provided persist in surrounding wetlands and small lakes. assistance to help the basin governments address About 30 million people live within the watershed. these issues. The largest of these projects was the Nearly 3 million people and the regional economy World-Bank-managed Lake Victoria Environmental are highly dependent on the basin's natural resources. Management Project (LVEMP), in which GEF The population within the basin is one of the poorest contributed $29.4 million under its International in Africa. They experience numerous social and Waters Focal Area. The LVEMP project had the environmental stresses, including widespread watershed objectives of: degradation, increasing water pollution, rising prevalence of waterborne diseases, increasing conflicts · Maximizing sustainable benefits to riparian over access and use of natural resources, declining communities by using resources within the fisheries, loss of aquatic and terrestrial biodiversity, and basin more frequent and more severe droughts and floods. · Conserving biodiversity and genetic resources for Recently, the rapidly declining lake levels--largely due the benefit of the riparian communities to overabstraction of water for hydropower generation · Harmonizing national management programs in at Jinga--have created serious social, ecological, and order to reverse environmental degradation trends economic problems and political tensions. in the region Environmental issues in the lake include eutrophication The GEF/IDA-funded project ran from 1996 to 2002 and cyanobacterial blooms; periodic outbreaks of water (Tanzania) and 2005 (Uganda and Kenya). LVEMP hyacinth; poor water quality and health issues from was a complex project with multiple components effluent and industrial discharges; high turbidity from and a complex administrative structure. It succeeded inflowing rivers; decline in fisheries; loss of aquatic in improving the scientific knowledge base for the Institutions and Governance Series 55 SEA case studies 4-9-09.indd 55 4/9/09 12:40:14 PM Strategic Environmental Assessment -- Improving Water Resources Governance and Decision Making lake and its basin,54 building capacity within national SAP) between 2004 and 2007. The TDA and SAP were institutions, helping establish the Lake Victoria intended to provide a foundation for the formulation Fisheries Organization (LVFO), and combating of the second phase of the Lake Victoria Environmental an outbreak of water hyacinth during the project Management Project (LVEMP II). period. However, there was no attempt to reach an agreed position between the riparian countries on the A two-stage process was used to develop the TDA/ prioritization of the issues facing the lake and basin SAP. In the first stage, national TDAs were produced, across all sectors, or on a program of action to tackle identifying the priority transboundary issues within these issues. There were institutional improvements in Uganda, Kenya, Tanzania, Rwanda, and Burundi. All the fisheries sector. The LVFO was established, there relied on stakeholder interactions, field visits, literature were attempts to harmonize the fisheries legislation of review, and data collection, although the methods and the riparian countries, and data sharing was established depth and breadth of these information sources differed between the countries. Apart from this, LVEMP did between countries. Transboundary major perceived not improve the management structures for the lake or problems and issues (MPPIs) that affected each of influence national policies toward the lake and its basin. the countries were identified from these information sources and prioritized using different approaches in The Lake Victoria Basin Commission (LVBC) was each country. A total of 21 transboundary MPPIs were established under the East African Community identified in the national TDAs, with each assigned a (EAC) in July 2004. It has the objective of providing ranking of high, medium, or low priority, based on each leadership in managing the lake basin and coordinating country's perception. management activities by the member countries of the EAC (currently the original countries of Kenya, In the second stage, these national MPPI priorities Uganda, Tanzania, and Rwanda, and the new members were reviewed regionally. The spatial extent of impacts Rwanda and Burundi). With assistance from Sida, the (both environmental and socioeconomic) of these EAC developed an agreed vision and strategy for the MPPIs and their root and immediate causes were lake basin. Five cross-cutting policy areas were agreed investigated through a causal-chain analysis. This within the vision statement: (1) ecosystems, natural included the identification of institutional, legal, and resources, and environment; (2) production and income policy issues (such as weak capacity and conflicting generation; (3) living conditions and quality of life; legislative requirements) that impeded the management (4) population and demography; and (5) governance, of the MPPIs. Finally, the regional TDA proposes institutions, and policies. interventions--investments, scientific investigations, institutional strengthening, legislative changes--that will address these priority MPPIs. The Transboundary Diagnostic Analysis/ Strategic Action Program The regional SAP drew upon further stakeholder While the mutually agreed vision statement helped lay consultations, the national and regional TDAs, and the basis for cooperative management of the lake basin, other material to identify 18 key transboundary it fell short of providing a prioritized list of issues to Issues (KTIs). These were then prioritized, with the be tackled through a coordinated program of action top five priority KTIs being (in order): (1) land, by the basin countries. Consequently, the GEF funded the Lake Victoria Development Program (a precursor 54Hecky, R. 2003. "Lake Victoria Environmental Management of the LVBC) to produce a regional transboundary Project: Phase 1. Scientific Stocktaking Report - Progress during LVEMP1 and Challenges for the Future." Washington, DC: diagnostic analysis and strategic action program (TDA/ World Bank. 56 Environment Department Papers SEA case studies 4-9-09.indd 56 4/9/09 12:40:15 PM Case Study 10: Transboundary Diagnostic Analysis and Strategic Action Program, Lake Victoria, East Africa wetland and forest degradation; (2) governance, policy, state of Lake Victoria. Once the TDA/SAP process and institutional weaknesses; (3) fisheries, habitats, commenced, there was considerable enthusiasm from and biodiversity from domestic, industrial, and the stakeholders for the analysis of the issues, and the agricultural activities; (4) pollution, eutrophication, and reports were discussed in depth. atmospheric deposition; and (5) water balance, water use management, and climate change. Procedural competence The regional SAP states that there was good Accountable. The LVBC, being the executing agency correspondence between the five KTIs and the MPPIs for the GEF grant, was the lead agency for the regional ranked by the regional TDA. TDA and SAP. However, LVBC has a coordinating role, and the lead agencies for implementing The national TDAs were carried out between February the actions in the SAP are the ministries of the and June 2006 and both the regional TDA and regional governments within the EAC. It is too early to gauge SAP were completed in March 2007. The LVEMP II whether they have the resources or the political backing project had been under preparation for some years and to implement this action program. Also, the objective is due to be presented to the World Bank Board in of the regional TDA/SAP appeared to change as the February 2008. work progressed. The GEF project document for the The regional TDA and SAP provide an example of an study and the TDA clearly states that the work will SEA that is both impact- and institution-centered. It provide priority issues for the LVEMP-II program. The provided environmental and social information for a SAP does not mention LVEMP-II in its justification or transboundary investment program, but was carried out objectives, leading to uncertainty about the role of the independently of the program. SAP. The national and regional TDAs were developed Institutional Controls professionally, using extensive stakeholder input and formal analytical procedures. However, the results are The regional TDA and SAP were driven almost uneven, with some countries not identifying prominent exclusively by the requirement of the GEF International issues. Kenya does not discuss atmospheric deposition Waters Focal Area. They were required as a condition of nutrients, which is thought to be contributing for contributing funds to LVEMP-II (an instrumental a substantial proportion of the nutrient load, and driver). There was no legislative requirement for this Tanzania makes little mention of the drop in level analysis in the basin countries55 apart from Tanzania, of Lake Victoria, even though this has created major where the Environmental Management Act (2004) social, economic, ecological, and political problems. required an SEA to be undertaken of programs such Further, there is a lack of comparability between the as LVEMP II. However, the regulations to support the national TDA issues. Nevertheless, these difficulties EMA have yet to be written and the SEA provisions are reconciled in the regional TDA. However, the were not yet implemented. While the GEF provided an procedures--whereby equal importance was attached external assessment of the quality of the TDAs and SAP, to each of the five national TDAs to produce the there was no formal evaluative control over the studies. regional TDA--led to biased results. Thus, issues of There was little public or professional pressure for these analyses, although there was widespread concern among international and national NGOs, natural resources 55Transboundary EIA guidelines under preparations by the EAC managers, and governments about the environmental have yet to be finalized. Institutions and Governance Series 57 SEA case studies 4-9-09.indd 57 4/9/09 12:40:15 PM Strategic Environmental Assessment -- Improving Water Resources Governance and Decision Making considerable importance to the three riparian nations Substantive Criteria and that affected the majority of the basin population, such as the decline in the level of the lake, did not Integrated. The strategic recommendations that receive high priority because other issues were identified emerged from both the regional TDA and SAP were by all five basin nations. based primarily on stakeholder assessment, although knowledge from previous scientific investigations There is also confusion between the roles of the regional was drawn on by the assessment teams. Thus, the TDA and SAP, with both producing prioritized lists of recommendations had the strength of cross-sectoral issues and actions to address the issues, although the support but the weakness of being built on perceived prioritized lists are structured differently. The studies issues rather than deep analysis. One of the strengths provide extensive documentation of the environmental of this approach is that the issues and their root causes issues in the lake basin and their implications for were seen as a mix of biophysical, socio-economic and the long-term economic, social, and environmental institutional problems. However, the KPIs from the sustainability of the lake basin. SAP are organized in a disjunctive manner with the second priority KPI including governance, policy and Participative. The national and regional TDAs were institutional weaknesses and the other KPIs dealing developed with extensive stakeholder input using site with biophysical issues. That is, the inter-relationship visits, questionnaires, focus groups, and workshops, between policy, institutional, social, economic and although the depth and methods of consultation varied biophysical issues is not properly recognised. between the countries. The SAP also used an initial workshop of stakeholders to identify issues. These The regional TDA and SAP are tiered into relevant consultations covered a wide range of stakeholders and government policies insofar as they recognize the need were very influential in establishing and prioritizing the for these policies and supporting legislation to be issues. harmonized across the basin for some issues. However, the MPPIs under the regional TDA, and even more so Iterative. The regional TDA and SAP were delivered the KPIs under the SAP, are generalized and do not go late and, as a consequence, this has delayed the LVEMP into sufficient detail to outline EIA requirements for II preparation program. LVEMP II preparation infrastructure investments. commenced with initial discussions on components Sustainability-led. Both the regional TDA and SAP to be funded in 2003, and was progressively refined develop priority actions that are intended to place the through extended stakeholder consultations and basin on a more sustainable footing. However, they were assessments of lessons from LVEMP-I during produced in parallel with the design of the LVEMP-II subsequent years. LVEMP-II has four proposed program, which itself had access to extensive information components: (1) building the information base for on actions required for sustainable development in the governance and growth; (2) strengthening governance region. Consequently, LVEMP-II is designed to promote of transboundary natural resources; (3) enhancing sustainability (see above components) and its design is sustainable economic growth; and (4) raising public consistent with the TDA/SAP outcomes. awareness through education and communication. This is broadly consistent with the recommendations of the Focused. Both the regional TDA and SAP assessed SAP. However, this is the result of a convergence of a wide range of potential issues before focusing on numerous discussions, studies, and reports on the issues priority topics. Nevertheless, the priority issues in facing the Lake Victoria Basin, including those that both documents remain pitched at a high level and occurred during the TDA/SAP. would take further refinement before they could be 58 Environment Department Papers SEA case studies 4-9-09.indd 58 4/9/09 12:40:16 PM Case Study 10: Transboundary Diagnostic Analysis and Strategic Action Program, Lake Victoria, East Africa turned into action. Their scope is broader than the economy and social life, there may be a need to place components in LVEMP-II, which is more specific greater emphasis on some country's perceptions than on the planned interventions. Perhaps because of the others. In this case, the collation of the national TDAs processes followed, there are a number of important into a regional TDA provided an opportunity to correct transboundary issues that were not adequately covered some inconsistencies and omissions between the national in the TDAs, including atmospheric nutrients (Kenya TDAs, but that opportunity may not always be available. TDA), aquatic biodiversity (Rwanda TDA), reduced lake levels (Tanzania TDA), and groundwater issues The study was reliant on an instrumental driver for generally. These issues were subsequently added in the its initiation. Being an externally required condition, regional TDA and SAP. this is not a strong foundation for the study recommendations to be implemented. On the other The regional TDA/SAP were not well-integrated hand, there is widespread government, professional, themselves, nor were they well-integrated into the and public support for sustainable development within decision-making process for the LVEMP-II program. the basin, as manifest through mechanisms such as Nevertheless, they do serve as prioritizing and LVEMP-II, the Nile Basin initiative projects, and coordinating instruments for the LVBO beyond other multilateral and bilateral development projects. LVEMP-II, including coordinating national sectoral The TDA and SAP provided an opportunity to programs. structure commonly recognized issues and responses. The regional TDA and SAP were undertaken so late The cost ($1million) was high, and the project was time that they have delayed the preparation of LVEMP-II consuming (project approved October 2004, completed program. Nonetheless, if these recommendations are March 2007). Nevertheless, this was a complex project, used properly, they are likely to have an impact on the with five nations at different stages of development design of LVEMP-II, especially since the project already and skill being required to coordinate their national has a strong sustainability focus. priorities. The two outputs from this study--a regional TDA Influential. The EAC recognize that there are and SAP--are overlapping and confusing. They use shortcomings in the regional TDA and SAP; these will different terminology, structure priorities in different be followed up during the implementation of LVEMP- ways, and appear to be in competition in their attempts II. In spite of this, the regional TDA and SAP were to identify priority issues. The SAP recognizes social, seen as valuable by the EAC, and they are likely to institutional, and environmental issues, but does not have an influence over the final design of the LVEMP- integrate them successfully. The purpose of the work II program (its initial target). They also may act as also appeared to alter when the SAP was produced. SEA important structuring instruments for the LVBC. studies need to have clearer outputs and audiences if they are to have impact. Lessons learned The level of stakeholder participation across the With a transboundary project such as this, where there national TDAs, and regional TDA and SAP was is complex procedural structure, it is important to have impressive. This level of participation is commendable, comparable methods and targets and indicators used in each country to identify and rank issues.56 In addition, 56Recommended indicators for GEF International Waters projects given the great disparity in sizes of the countries and are described in Duda, A. 2002. "Monitoring and Evaluation Indicators for GEF International Waters Projects." Monitoring the importance of the lake and basin to each country's and Evaluation Working Paper 10. Washington, DC: GEF. Institutions and Governance Series 59 SEA case studies 4-9-09.indd 59 4/9/09 12:40:16 PM Strategic Environmental Assessment -- Improving Water Resources Governance and Decision Making but can skew the choice of issues and override the noticeable in the case of the lake issues--for example, results of more analytical work. Both scientifically decline in lake level--which have great economic based analytical information and stakeholder and social importance to large populations, but were understanding and objectives need to be balanced down-weighted in the regional TDA and SAP. The in order to achieve a well-founded instrument. procedures used in such transboundary para-SEAs need Also, equal weight was given to each of the national to be carefully considered and agreed to ensure that TDAs and SAPs, even though some countries were the recommendations represent the importance of the not impacted by some of the issues. This was most issues. 60 Environment Department Papers SEA case studies 4-9-09.indd 60 4/9/09 12:40:16 PM Section B: Integration of Environment into Water Policies SEA case studies 4-9-09.indd 61 4/9/09 12:40:17 PM SEA case studies 4-9-09.indd 62 4/9/09 12:40:17 PM Four National and State Water Policies N o SEAs of national water policies were Recognition of Environmental Flow and identified in preparing the sector analysis. Allocation Priority However, the extent to which environmental concerns have been incorporated into national All four policies recognize the legitimacy of water for water policy was assessed by examining the water environmental benefit, although the justifications policies and legislation of three countries (South Africa, vary. In its National Water Policy, India recognizes Tanzania, and India) and one state (Victoria, Australia). that water is part of a larger ecological system that is essential for sustaining life. Victoria also recognizes The four policies have been written from different this interdependence in the first principle of its White histories. South Africa is concerned about equity Paper: "The management of water will be based of access to water following apartheid, better use on an understanding that a healthy economy and of existing resources, and consistency in water society is dependent on a healthy environment." The management across sectors; Tanzania is concerned Tanzanian NAWAPO also recognizes the relationship about development and protection of the resource; between maintaining aquatic environments and certain India is focused on protecting water sources for economically important activities such as tourism, drinking and irrigation purposes; and Victoria is water supply, and hydropower. While South Africa primarily concerned about balancing water flows for recognizes the need to provide water for environmental ecosystem health and consumption. Nevertheless, benefit, it is less clear about the inter-relationships protecting and enhancing environmental functions that between environmental functioning and social depend on water are included in different ways and and economic production. The policy states that with different priorities in the four policies and their environmental areas need to be protected so that they legislation. Table B.1 provides details of the policies and are not degraded to a point from which they cannot legislations examined in this analysis. recover. Table B.1 The Policies and Legislation used in the Analysis of Environmental Considerations in Water Management Policy Legislation Comment South Africa White Paper on a National Water Policy for National Water Act 36 of 1998 South Africa, 1997 Tanzania National Water Policy 2002 Water Resources bill The water resources legislation is expected to be passed in late 2007. India National Water Policy, 2002 Water legislation is enacted at state level Victoria White Paper: Securing Our Water Future Water Act 1989 The Victorian policy is developed to be consistent (Australia) Together, 2004. Act No. 80/1989 with Australian national water agreements of 1994 Version with amendments July 2004. and 2004. Institutions and Governance Series 63 SEA case studies 4-9-09.indd 63 4/9/09 12:40:17 PM Strategic Environmental Assessment -- Improving Water Resources Governance and Decision Making The four countries assign different priorities to water as much detail, is very clear and comprehensive on the for environmental benefit. South Africa and Tanzania directions to be taken. The Indian policy mentions these assign water for the environment as the second issues, but provides little direction on either catchment priority after provision of basic human needs. In protection or water quality management, other than India, water for the environment is the fourth priority the need for monitoring of point-source discharges. after provision of water for drinking, irrigation and The Victorian white paper is strongly focused on flow hydropower purposes, although these priorities can management and river health, including riparian and be amended regionally if necessary. Victoria does not catchment management. Although included, water assign an explicit priority to any water uses. Its white quality is not dealt with extensively in the policy; it is paper on water management focuses on the need to covered in separate State Environment Protection Policies ensure that the health of aquatic environments is for surface water and groundwater.57 The Victorian protected through provision of water and protection white paper is the only one of the four policies to of catchments, but the allocations of water to different include consideration of climate change effects on water sectors, including the environment, are left to the resources. The policy states that both the environmental formulation of catchment plans. and consumptive water allocations will be re-established if long-term reduction in water availability occurs, and Comprehensiveness commits to a research program to quantify the effects of climate change on the state's water resources. In its policy, Tanzania, recognizes the need to provide water to maintain ecological functioning of rivers, The Tanzanian and South African policies place wetlands, estuaries, and riparian zones. While the considerable emphasis on cooperatively managing policy includes protection of groundwater quantity transboundary water resources. The latter says that, and quality, it does not recognize the role that until there is an international legal system to guide groundwater plays in maintaining some ecosystems. the management of shared river systems, water to While the Indian Water Policy does not specify the meet international agreements will be given a special water resource components to be maintained, it does status as a water allocation priority. In spite of sharing explicitly recognize the role that groundwater plays in water resources with both upstream and downstream maintaining some ecosystems. The South African white neighbors, the Indian water policy does not mention paper places considerable emphasis on transboundary water management. However, it does managing the whole water cycle, including rivers, recognize the need to manage the sharing of water lakes, wetlands, estuaries, and groundwater. Both the between the states, although it does not specify any quality and quantity aspects of environmental flows are roles or mechanisms. Victoria shares water resources recognized as important for all these components of the with three other Australia states. The Victorian white water cycle. The Victorian white paper includes both paper affirms the state government's commitment to surface and groundwater environmental requirements. work within the national water reform framework to manage these shared resources cooperatively, especially The Tanzanian and Indian policies and the South African within the Murray-Darling Basin. white paper deal with catchment protection, water quality, and water flow issues that may interfere with environmental functioning. However, the 57EPA Victoria. 2003. State Environment Protection Policy levels of discussion and direction differ significantly. The (Waters of Victoria). Our Water, Our Future! Publication 905. South African white paper provides extensive detail of Melbourne, Australia: EPA. EPA Victoria. 2002. State Environment Protection Policy these issues. The Tanzanian policy, while not providing (Groundwaters of Victoria). No. S160. Melbourne, Australia: EPA. 64 Environment Department Papers SEA case studies 4-9-09.indd 64 4/9/09 12:40:18 PM Four National and State Water Policies Environmental Assessment to promote water savings with the return of part of the saved water to environmental benefit and purchasing All four policies endorse the need for environmental licenses and allocations on the water market. Catchment assessments of large-scale development projects. The management authorities will be able to trade their Tanzanian NAWAPO states that large water schemes environmental water entitlements on the water market. must undertake an EIA. The South African white paper reinforces the need for consideration of environmental The South African and Tanzanian policies propose a impacts of any water scheme according to the principles water reserve that will be used to meet basic human of integrated environmental management, which needs and environmental needs. The environmental require an assessment of the possible impacts of a need will be calculated for each catchment. Where the proposed project and the design of measures to reduce catchments are already overallocated, then "provision negative and enhance positive impacts. The Victorian will be made for active intervention to protect the white paper does not favor further project development, water resources." The Tanzanian policy is less specific but requires that environmental impacts should be about the mechanisms (methods, procedures, and considered if any developments are undertaken. The benchmarks) to be employed to provide environmental Indian Water Policy states that the preservation of the water. It states that water for the environment, in quality of environment and the ecological balance terms of quantity and quality, will be determined on should be a primary consideration during the planning, the best scientific information available, considering development, and operation of any project. The adverse both the temporal and spatial water requirements to impact on the environment should be minimized and maintain the health and viability of riverine and estuary should be offset by adequate compensatory measures. ecosystems, and associated flora and fauna. None of these water policies mention strategic The Indian Water Policy does not provide information environmental assessments. However, the Tanzanian on the mechanisms to be employed to ensure water is Environmental Management Act (2004) does specify allocated to the environment, although it does require that major water projects should be subjected to an SEA that environmental considerations should be included before specific project details are decided. It is anticipated in basin and catchment planning. that the new Tanzanian water resources bill will also require SEAs for integrated river and lake basin planning. South Africa has passed a new national water law to incorporate the provisions of its policy; Tanzania is Mechanisms for Environmental Water finalizing its new water resources bill to support its Provision policy; Victoria amended its 1998 Water Act in 2004. However, some central provisions, such as the EWR, The Victorian white paper describes a comprehensive are not included in this amended act. The Indian system for providing environmental water through an Water Policy is not provided with national legislative environmental water reserve (EWR) for both surface backing, since water management is primarily a state and groundwater that will be held by the Crown responsibility. (although administered by catchment management authorities) and will have a legal status equal to Economic Instruments and Water consumptive water rights. The government will use Conservation various mechanisms to acquire water from current license holders for environmental purposes where rivers Financial instruments can be used to protect the and aquifers are overallocated, including investments environment by reducing water abstractions and Institutions and Governance Series 65 SEA case studies 4-9-09.indd 65 4/9/09 12:40:18 PM Strategic Environmental Assessment -- Improving Water Resources Governance and Decision Making wastewater discharges if there are linkages between Environmental Representation volumes used/discharged and prices charged. Victorian legislation provides for environmental Among the financial reforms proposed in the Victorian representatives to play a role in water management white paper is an environmental levy imposed on decisions. The Water Act (amended 2004) provides water authorities (estimated to be between 2 to 5 for a Water Trust Advisory Council, which advises percent of water prices) to account for environmental the minister on water resources. Its 3­5 members impacts of water use. These funds will be used to can be chosen from a range of backgrounds, promote sustainable management of water. A block including environment, sustainability, finance, water tariff structure (i.e. progressive pricing) will be used infrastructure, and community service. The State to reward those who undertake water conservation Catchment Management Council, which oversees the activities. The Tanzanian policy states that water catchment management authorities (the operational pricing and water trading will be gradually developed authorities), consists of 10 members. Currently, two to promote water conservation, but does not give a have an environmental background--an environmental time frame or provide details. There is no mention consultant and an environmental academic--and of an environmental charge for water use. The South others have environmental protection experience. African white paper says that consideration will be given to a resource conservation charge, but that this is The draft Tanzanian water resources legislation a complex issue where issues have yet to be understood. states that the membership of the Water Resources Similarly, water trading may be introduced, but there Management Advisory Committee, a technical are benefits and costs that have to be better understood advisory committee, shall include up to nine sectoral before a decision is made. The Indian policy does not representatives, of which environment is one. Similarly, mention environmental charges. the Water Resources Management Council can have up to nine sectoral representatives, of which one can The policies contain less information on charging for be from the environment sector. The basin water wastewater discharges. Neither the Indian nor the boards can include up to three sectoral members; the Tanzanian policies mention wastewater or pollution environment is one of the specified sectors. charges at all. However, the Tanzanian draft water bill The Indian Water Policy does not specify the does require wastewater discharge permits for urban, institutional structure, largely because water industrial, and agricultural wastewater disposal. The bill management is a state responsibility. Consequently, leaves it up to the basin water board issuing the permit there is no indication whether there will be as to whether the cost is related to the volume or quality environmental representation on national, state, of the discharge; i.e. whether the permit will act as an or basin water management institutions. Water law incentive to reduce pollution. The South African white is very fragmented in India.58 It is largely state-based; paper says that a system of economic incentives will in general, there is no provision for environmental be put in place to encourage a reduction in pollution representation on decision-making institutions. and that these funds will be used for resource quality management and protection activities. The Victorian white paper does mention that sewage charges will be structured to promote water conservation, but does not 58 discuss details beyond the inclusion of sewage income Cullet, P. 2007. "Water Law in India: Overview of Existing Framework and Proposed Reforms." Working Paper 2007­01. as part of the calculation of the environmental levy. Geneva: International Environmental Law Research Centre. 66 Environment Department Papers SEA case studies 4-9-09.indd 66 4/9/09 12:40:19 PM Environment Department T H E W O R L D B A N K 1818 H Street, NW Washington, D.C. 20433 Telephone: 202-473-3641 Facsimile: 202-477-0565 Printed on recycled paper stock, using soy inks.