GEF LESSONS NOTES 11 www.gefweb.org December 2000 Emerging Lessons from GEF Multicountry Projects From contamination of shared waters to the degrada- tion of the earth's biodiversity and atmosphere, global IN THIS ISSUE environmental threats know no boundaries. Individual countries, however, often have varying--sometimes Multicountry projects are an increasingly common conflicting--interests towards a shared resource. An in- feature of the Global Environment Facility's portfolio, ternational waterbody, for instance, may provide the pri- particularly in the international waters focal area. mary drinking supply for one country, while another This issue of GEF Lessons Notes summarizes some nation uses it for sewage disposal. At other times, tour- of the key findings arising from the recently completed ism or the development of fisheries or agriculture may Thematic Review of Multicountry Project conflict with biodiversity conservation and water quali- Arrangements. The review highlights a number of ty. With all these different demands imposed on the emerging lessons from these efforts, including the same ecosystem, it is clear that solutions to transboundary need for close cooperation among countries and environmental issues require a holistic approach across donors, different levels of project management, and sectors and political boundaries. the packaging of financial support to address root A sizable portion of the Global Environment Facili- causes of environmental degradation. ty's (GEF) portfolio--all but a handful of internation- al waters projects and about two dozen biodiversity projects--involve more than one country. To better un- derstand these challenging, multicountry efforts, the GEF Monitoring and Evaluation team undertook a re- Jarle Harstad view of GEF's multicountry portfolio. The review in- Senior Monitoring and Evaluation Coordinator cluded an examination of 36 projects from the international waters (28) and biodiversity (8) focal ar- eas. Of these 36 projects, ten were selected for in- depth studies, and a smaller subset received a visit by the review team. The objective of the review was to identify emerging lessons from the GEF portfolio about what kinds of Findings multicountry approaches have worked, what have not, why, and under what circumstances. For activities that The review highlights a number of specific lessons require joint efforts and commitments by more than and areas of consideration for the GEF. It must be not- one country, what characteristics of project design and ed, however, that the history of multicountry projects institutional collaboration best facilitate effective deci- in the GEF is still short and few projects have been sion making and implementation of measures to ad- completed. These findings, therefore, reflect early ex- dress transboundary issues? periences and should be treated as tentative. G l o b a l E n v i r o n m e n t F a c i l i t y G E F L e s s o n s N o t e s Shared Commitment and Vision Achieving this shared commitment and vision can be facilitated by initial strategic projects that lower the Complex multicountry and multi-implementing barriers to cooperation among countries and enable agency structures require careful preparation. This is them to jointly focus on priority transboundary issues. particularly true in a number of international waters In the Strategic Action Programme for the Binational settings, where as many as 20 countries--all with dif- Basin of the Bermejo River, for example, demonstration ferent social, political, economic, and physiographic activities were used to catch the attention of stakehold- conditions--may have direct impacts on a shared ers up-front at the same time that strategic work in pro- waterbody. With this in mind, the review finds that the ducing the TDA and SAP was undertaken. These pilot GEF has played an important role in facilitating multi- interventions have provided a number of interesting les- country approaches and assisting countries as they sons which should reduce the risk and result in more deal with their priority transboundary environmental successful implementation of the SAP in the future. Im- problems. portantly, such an action-oriented approach also helps maintain commitment at the local and national levels. Since countries may approach the problems of a With this experience, the review finds that GEF can shared resource in different, and possibly conflicting, play a proactive role in promoting regional implemen- ways, there is a need to develop a shared commitment tation and leadership by facilitating the processes for and vision for action (Box 1). Joint fact finding and setting priorities based on scientifically solid analyses sharing of information in producing a Transboundary of the causes of environmental problems and agreeing Diagnostic Analysis (TDA) can help countries proceed on actions to address them. towards determining country-specific and regional actions that are needed to address identified trans- Broad Country Support and boundary priorities. This allows complex situations to Donor Coordination be broken down into more manageable pieces for ease of implementation, expressed by country commit- Despite their role in promoting cooperation, GEF ments to action through Strategic Action Programs projects on their own are not a panacea for long- (SAPs). standing, complex, transboundary environmental Box 1 Fostering a Shared Commitment and Vision in the Danube Basin In the Danube River basin, the GEF, through the United Nations Development Programme (UNDP), has worked closely with the European Union since 1992 to facilitate a working partnership among the 13 nations that make up the Danube watershed in south-central and southeastern Europe. A joint effort here was critical. With highly diversified land use in the basin, complex sources of pollution, and countries in different stages of economic transition, the interdependence of upstream and downstream neighbors for managing the environmental quality of the river can be seen throughout the basin. With GEF support, the countries undertook processes to jointly identify a few high-priority transboundary issues through the production of a Transboundary Diagnostic Analysis based on existing information; identified hotspots contributing to the priority issues; and formulated a Strategic Action Program delineating policy, institutional, and legal reforms and investments they intend to implement. By focusing their efforts on high priority issues, the initiative had a better chance of success. As a result of their shared commitment to action in the Danube basin and with the vision to work with downstream partners surrounding the Black Sea, a series of follow-up efforts with UNDP and the World Bank were formulated. UNDP is presently assisting the 13 countries with a follow-up regional project to implement needed policy, institutional, and legal reforms. Complementing this effort, the World Bank is assisting individual basin countries with priority investments that address key sources of transboundary nutrient pollution. 2 G E F L e s s o n s N o t e s problems. Political commitment at the highest level ternal funding partners can be beneficial. is essential for ensuring efficient operation of multi- Multiple Levels of Intervention country institutions and on-the-ground implementation of actions identified in strategic projects. Where the Experience in dealing with the breadth and com- only demonstrated political commitment has been the plexity of multicountry projects, particularly in the agreement to proceed with a GEF-financed project, international waters arena, bears out the observation commitments for policy, institutional and legal reforms that work on multiple levels of institutions is essential and investments have been slow to emerge. Ensuring for long-term success. A successful approach must motivation and ownership of multicountry projects function effectively on three levels: international, na- also requires that all relevant stakeholders, including tional, and sub-national. At the international level, regional, national, and local governments, NGOs, and there needs to be a joint commitment and agreement the scientific community and private sector, are in- among the nations affecting a shared resource, a process volved in the process. often facilitated through the signing of a convention and creation of a regional body to oversee relevant activi- Complementing the need for broad stakeholder par- ties. In fact, the process of creating such a regional ticipation, the review also highlights the importance body, and achieving multicountry cooperation, can be and advantages of implementing agency collaboration a powerful vehicle for building up mutual trust and donor coordination (Box 2). This can best take among countries and ensuring the long-term success place in a country-driven context (e.g., a regional con- of their efforts. vention) that provides a framework for the different in- terventions. This framework may be based on the Work on multiple levels strategic processes developed with GEF support of institutions is essential. (TDA/SAP) or it may be part of an emerging program- matic approach. Regardless, the need for collaboration At the national level, there should be broad, inter- exists within the GEF, and this review finds that a suc- ministerial coordination across sectors to address cession of these GEF-supported efforts is often neces- national impacts on the shared resource and provide sary to address complex situations and that the support to communities and groups at the sub-nation- participation of several implementing agencies and ex- al level, where implementation actually takes place. Box 2 Promoting Implementing Agency Collaboration and Donor Coordination In many regions, environmental problems are often so complex that a coordinated approach, using the comparative advantages of the three GEF implementing agencies, is essential. With its strong scientific and analytical expertise, for instance, the United Nations Environment Programme (UNEP) is often involved in assisting countries in undertaking the TDA/SAP process. UNDP and the World Bank, in turn, are then able to demonstrate their proven strengths and country experience in capacity building and mobilizing investment finance, respectively. In both the Implementation of the Strategic Action Program for the Red Sea and Gulf of Aden and the Addressing Transboundary Environmental Issues in the Caspian Environment Program projects, for example, the collaboration of the various agencies in assisting the countries has been a positive experience which should be shared with other projects. These strategic processes are intended not only to secure country-driven commitments to action, but are also useful in simplifying complex situations so that they may be broken down into manageable pieces. The result is ease of implementation and the attraction of external partners willing to help address the priorities identified in the SAP. Good examples are the Red Sea/Gulf of Aden project, with many associated projects funded by participating governments or international donors, and the Danube basin project that assists in SAP implementation. Donor coordination in contributing along with the GEF is thus essential to mobilizing enough on-the-ground action that real improvements are seen in the transboundary water environment. 32 G E F L e s s o n s N o t e s The link to the sub-national level is essential if practi- documents. cal changes agreed to at the other levels are realistical- Packaging Finance ly expected to occur. In addition, the GEF experience to Address Root Causes in the Lake Victoria Environmental Management project, among others, highlights the need for national Success in reducing threats to the transboundary project executing authorities to be located close to water environment depends upon addressing social where local activities will be undertaken. and economic conditions at the local level which lead to degradation in the first place. If these root causes When regional bodies are used, the sustainability of are not addressed, global benefits will either go unre- those bodies beyond the conclusion of GEF support alized or be unsustainable. In these projects, therefore, should be taken into account. This means organiza- it is important to create comprehensive packages of fi- tions that are required in the long-term must be effective- nancing that foster the accrual of national benefits to ly integrated into participating countries' organizational participating countries at the same time that trans- structures. In GEF projects in the Black Sea, Danube, boundary issues are addressed. This suggests the need and Red Sea, for example, participating countries to combine GEF support with a project by one of the have agreed to provide sufficient funding for the re- implementing agencies or other donors addressing de- gional secretariat addressing their transboundary water velopment issues in the context of national benefits concerns. Where regional conventions or secretariats (Box 3). are not in place, channeling funds through national re- cipients may be appropriate. Project design, however, Packages of finance are necessary often benefits from the incorporation of a truly regional to address root causes of degradation. component, and the proposed process for building this component should be clearly spelled out in project Box 3 Linking National and Global Benefits in Lake Victoria: The Need for Comprehensive Funding Packages In a region such as the Lake Victoria basin, where real development and natural resource management problems affect the day-to-day lives of people, it is important that global environment benefits accruing from a project are coupled with national and local benefits. This may require packages of finance to address problems at the national, as well as global, level. The $76 million Lake Victoria Environmental Management project, implemented by the World Bank, does just that, by matching a $35 million GEF grant with an equal amount of concessional IDA loan financing in each of the countries (Kenya, Tanzania, Uganda) involved for productive activities with local and national benefits. The project's primary objectives are to: (a) maximize the sustainable benefits to riparian communities from using resources within the basin to generate food, employment, and income, supply safe water, and sustain a disease-free environment, and (b) conserve biodiversity and genetic resources for the benefit of riparian communities and the global community. One way the project is doing this is by addressing the problem of water hyacinth infestation, which threatens the fisheries many of the local communities depend on for food and income. The project is countering this threat, in part, by supporting community-based rearing of weevils, which consume the hyacinth and by harvesting the weeds mechanically. The project also addresses sewage and agricultural run-off, as well as land management practices that degrade the lake. This combination of global benefits with tangible local benefits has enhanced perception of the project in the region and is an important step on the path to true sustainability. This experience is important for other international waters projects that must address land management because it illustrates the need to structure finance so basin development needs may be met along with the transboundary considerations. 4 G E F L e s s o n s N o t e s wards a desirable outcome, e.g., completion of a The Role of Monitoring and Evaluation (M&E) SAP), (2) stress reduction indicators (concrete ac- tions that will reduce the environmental stress on Monitoring and evaluation plays a central role in the shared ecosystem, such as installation of a managing complex multicountry projects. Effective sewage treatment system), and (3) environmental M&E systems can provide transparency among par- status indicators (actual improvement of ecosystem ticipating countries and project components on the quality). progress and results of the project. While the GEF may play a key role in starting such a system, the col- In the Danube, for instance, a database has been es- lection of M&E data should be internalized and taken tablished which will provide critical information for over by the participating countries. M&E efforts during and after GEF support. Each country can now report on the status of its interven- To facilitate the role of M&E, the review found tions, measure progress in undertaking reforms, and that multicountry project designs can benefit from assess pollution reduction efforts and other changes in the inclusion of indicators at three levels: (1) pro- the environmental status of the river based on agreed cess indicators (processes that are likely to lead to- standards. The Danube Convention Secretariat maintains this database and ensures transparency in reporting. The spread of water hyacinth in Lake Victoria is being tackled by both mechanical harvesting and community-based rearing of hyancinth-eating weevils. 5 4 G E F L e s s o n s N o t e s Other GEF Monitoring and Feedback and Suggestions Evaluation Publications of Interest The full Multicountry Project Arrangements We hope the GEF Lessons Notes series Thematic Review is available on the GEF will be a catalyst for an ongoing dialogue website (www.gefweb.org) or from the GEF on what is working, what is not, and how Monitoring and Evaluation team. Earlier people involved in the GEF have found issues of GEF Lessons Notes can also be solutions to challenges that face all of us. obtained from the website or by writing to We welcome your reactions to this issue. us. We would also like your suggestions of topics of interest to you. 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