Document of The World Bank FOR OFFICIAL USE ONLY Report No: PAD853 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT PROJECT APPRAISAL DOCUMENT ON A PROPOSED GRANT FROM THE GLOBAL ENVIRONMENT FACILITY TRUST FUND IN THE AMOUNT OF US$5.64 MILLION TO THE REPUBLIC OF ZIMBABWE FOR THE HWANGE-SANYATI BIOLOGICAL CORRIDOR PROJECT April 28, 2014 Environment, Natural Resources, Water and Disaster Risk Management Unit Sustainable Development Department Africa Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS Currency Unit = US$ FISCAL YEAR July 1 - June 30 ABBREVIATIONS AND ACRONYMS BP Bank Procedure CAMPFIRE Community Areas Management Programme for Indigenous Resources CDD Community-driven development CITES Convention on the International Trade in Endangered Species of Wild Fauna and Flora CIWA Cooperation in International Waters in Africa CQS Selection Based on Consultant's Qualifications EMA Environmental Management Agency EOP End of project ESMF Environmental and Social Management Framework ESMP Environmental and Social Management Plan FAO Food and Agriculture Organization FBS Fixed Budget Selection FC Forestry Commission FM Financial Management FOM Field Operations Manual [of WWF] GDE Groundwater-dependent ecosystem GEF Global Environment Facility GEO Global Environmental Objective GIS Geographical Information System GoZ Government of Zimbabwe HNP Hwange National Park HSBC Hwange-Sanyati Biological Corridor HSBCP Hwange-Sanyati Biological Corridor Project HWC Human-wildlife conflict IAS Invasive and alien species IBRD International Bank for Reconstruction and Development IC Individual Consultant ICB International Competitive Bidding IDA International Development Association IMF International Monetary Fund IPDP Indigenous Peoples Development Plan IPPF Indigenous Peoples Planning Framework ISN Interim Strategy Note KAZA TFCA Kavango-Zambezi Transfrontier Conservation Area LCS Least Cost Selection M&E Monitoring and Evaluation MDTF Multi-donor trust fund METT Management Effectiveness Tracking Tool MoEWC Ministry of Environment, Water and Climate MoFED Ministry of Finance and Economic Development MTR Mid-term Review NCB National Competitive Bidding NGO Non-governmental organization OP Operational Policy ORAF Operational Risk Assessment Framework PA Protected Area PAD Project Appraisal Document PDO Project Development Objective PF Process Framework PIM Project Implementation Manual PPG Project Preparation Grant PWMA Parks and Wildlife Management Authority QA/QC Quality Assurance/Quality Control QBS Quality-Based Selection QCBS Quality- and Cost-Based Selection RDC Rural District Council REDD+ Reduced Emissions from Deforestation and Forest Degradation SADC Southern African Development Community SFM Sustainable Forestry Management SSS Single Source Selection TA Technical Assistance TDA Transboundary Diagnostic Analysis [of aquifers] UNDP United Nations Development Programme UNFCCC United Nations Framework Convention on Climate Change UNOPS United Nations Office for Project Services WWF World Wide Fund for Nature ZAIP Zimbabwe Agricultural Investment Plan ZAMCOM Zambezi Watercourse Commission ZINWA Zimbabwe National Water Authority Regional Vice President: Makhtar Diop Country Director: Kundhavi Kadiresan Sector Director: Jamal Saghir Sector Manager: Jonathan Kamkwalala Task Team Leader: Douglas J. Graham REPUBLIC OF ZIMBABWE HWANGE-SANYATI BIOLOGICAL CORRIDOR PROJECT TABLE OF CONTENTS Page I. STRATEGIC CONTEXT ...........................................................................................12 A. Country Context .......................................... ..... 12 B. Sectoral and Institutional Context. ......................... .......... 13 C. Higher Level Objectives to which the Project Contributes .................. 18 II. PROJECT DEVELOPMENT OBJECTIVE(S)/GLOBAL ENVIRONMENT OBJECTIVE(S)............................................................................................................................19 A. PDO/GEO ................................................... 19 Project Beneficiaries .......................................... ..... 19 PDO Level Results Indicators............................................ 20 III. PROJECT DESCRIPTION ...................................................................................... 21 A. Project Components ............................................... 21 B. Project Financing ......................................... ..... 22 C. Lessons Learned and Reflected in the Project Design. .......... ........... 23 IV. IMPLEMENTATION ..................................................................................................26 A. Institutional and Implementation Arrangements .................... ..... 26 B. Results Monitoring and Evaluation ................................... 28 C. Sustainability......... ........ ............................... 28 V. KEY RISKS AND MITIGATION MEASURES......................................................29 A. Risk Ratings Summary Table ...................................... 29 B. Overall Risk Rating Explanation .............................. ...... 30 VI. APPRAISAL SUMMARY .........................................................................................30 A. Economic Analysis ............................................. 30 B. Technical .................................................... 31 C. Financial Management............... .................... ...... 31 D. Procurement ......................................... ......... 32 E. Social (including Safeguards) ...................................... 32 F. Environment (including Safeguards) ................................. 33 Annex 1: Results Framework and Monitoring .................................................................... 34 Annex 2: Detailed Project Description ...................................................................................39 Annex 3: Implementation Arrangements ............................................................................. 51 Annex 4. Operation Risk Assessment Framework (ORAF) ................................................65 Annex 5: Implementation Support Plan ................................................................................ 69 Annex 6: Economic Analysis .................................................................................................. 70 Annex 7: Incremental Costs Analysis ....................................................................................74 Annex 8: Biodiversity Context ................................................................................................83 Annex 9: Project Map .................................................................................................................. 86 PAD DATA SHEET Zimbabwe Hwange-Sanyati Biological Corridor Project (P124625) PROJECT APPRAISAL DOCUMENT AFRICA AFTN2 Report No.: PAD853 Basic Information Project ID EA Category Team Leader P124625 B - Partial Assessment Douglas J. Graham Lending Instrument Fragile and/or Capacity Constraints [ ] Investment Project Financing Financial Intermediaries [ ] Series of Projects [ ] Project Implementation Start Date Project Implementation End Date 16-May-2014 30-Jun-2019 Expected Effectiveness Date Expected Closing Date 01-Jul-2014 30-Jun-2019 Joint IFC GEF Focal Area No Multi-focal area Sector Manager Sector Director Country Director Regional Vice President Jonathan S. Kamkwalala Jamal Saghir Kundhavi Kadiresan Makhtar Diop Borrower: Government of Zimbabwe Responsible Agency: World Wide Fund for Nature Contact: Dr. Enos Shumba Title: Interim Country Director Telephone No.: 2634252533 Email: eshumba@wwf.org.zw Project Financing Data(in USD Million) ] Loan [X] Grant [ ] Guarantee ] Credit [ ] IDA Grant [ ] Other Total Project Cost: 28.81 Total Bank Financing: 0.00 Financing Gap: 0.00 Financing Source Amount Borrower 13.22 Global Environment Facility (GEF) 5.645 Cooperation in International Waters in Africa 4.00 TerrAfrica Leveraging Fund 0.25 World Wildlife Fund 1.50 Foreign Multilateral Institutions (unidentified) 0.55 Non-Government Organization (NGO) of 0.20 Borrowing Country Foreign Private Commercial Sources 3.45 (unidentified) Total 28.81 Expected Disbursements (in USD Million) Fiscal 2015 2016 2017 2018 2019 0000 0000 0000 0000 Year Annual 0.40 1.50 1.50 1.50 0.75 0.00 0.00 0.00 0.00 Cumulati 0.40 1.90 3.40 4.90 5.65 0.00 0.00 0.00 0.00 ve Proposed Global Environmental Objective(s) To develop land use and resource management capacity of managers and communities in the Hwange- Sanyati Biological Corridor (HSBC). Components Component Name Cost (USD Millions) Protected area management and community livelihoods 1.80 Improved Land and forest management 3.24 Corridor sustainability 0.33 Project coordination 0.27 Institutional Data Sector Board Environment Sectors / Climate Change Sector (Maximum 5 and total % must equal 100) Major Sector Sector % Adaptation Mitigation Co-benefits % Co-benefits % Agriculture, fishing, and forestry Forestry 45 20 10 Public Administration, Law, and General public 20 Justice administration sector Public Administration, Law, and Sub-national government 20 Justice administration Public Administration, Law, and Central government 15 Justice administration Total 1100 DI certify that there is no Adaptation and Mitigation Climate Change Co-benefits information applicable to this project. Themes Theme (Maximum 5 and total % must equal 100) Major theme Theme % Environment and natural resources Biodiversity 30 management Environment and natural resources Land administration and management 25 management Environment and natural resources Climate change 20 management Environment and natural resources Environmental policies and institutions 15 management Environment and natural resources Other environment and natural resources 10 management management Total 100 Compliance Policy Does the project depart from the CAS in content or in other significant Yes [ ] No [ X] respects? Does the project require any waivers of Bank policies? Yes [ ] No [ X] Have these been approved by Bank management? Yes [ ] No [ ] Is approval for any policy waiver sought from the Board? Yes [ ] No [X] Does the project meet the Regional criteria for readiness for implementation? Yes [X] No [ ] Safeguard Policies Triggered by the Project Yes No Environmental Assessment OP/BP 4.01 X Natural Habitats OP/BP 4.04 X Forests OP/BP 4.36 X Pest Management OP 4.09 X Physical Cultural Resources OP/BP 4.11 X Indigenous Peoples OP/BP 4.10 X Involuntary Resettlement OP/BP 4.12 X Safety of Dams OP/BP 4.37 X Projects on International Waterways OP/BP 7.50 X Projects in Disputed Areas OP/BP 7.60 X Legal Covenants Name Recurrent Due Date Frequency Compliance with Safeguards Instruments X CONTINUOUS Description of Covenant The Recipient and the Project Implementing Entity shall ensure that the Project is carried out in accordance with the relevant Safeguards Instruments. Conditions Source Of Fund Name Type Execution of the Agreements Effectiveness Description of Condition The execution and delivery of the Grant Agreement on behalf of the Recipient and of the Project Agreement on behalf of the Project Implementing Entity have been duly authorized or ratified by all necessary governmental and corporate action Source Of Fund Name Type Execution of the Subsidiary Agreement Effectiveness Description of Condition The Subsidiary Agreement has been executed on behalf of the Recipient and the Project Implementing Entity Source Of Fund Name Type Approval of Project Implementation Manual Effectiveness Description of Condition The Project Implementation Manual has been approved by the Recipient and the World Bank and adopted by the Project Implementing Entity Team Composition Bank Staff Name Title Specialization Unit Douglas J. Graham Senior Environmental Senior Environmental AFTN2 Specialist Specialist and Team Leader Zoe Kolovou Lead Counsel Lead Counsel LEGAM Wedex Ilunga Senior Procurement Senior Procurement AFTPE Specialist Specialist Samuel Taffesse Senior Operations Senior Operations AFTFW Officer Officer and former Team Leader Robin Mearns Sector Leader Sector Leader AFTSN Kristine Schwebach Social Development Social Development AFTCS Specialist Specialist Amadou Konare Consultant Environmental AFTN1 Safeguards Consultant Blessing Manyanda Disbursement Asst. Disbursement Asst. AFMZW Janet Chido Bvumbe Program Assistant Program Assistant AFMZW Omar Lyasse Senior Agriculture Senior Agriculture AFTA3 Economist Economist Daniel Yaw Domelevo Senior Financial Financial Management AFTME Specialist Nadege Mertus Temporary Temporary AFTN2 Non Bank Staff Name Title Office Phone City Enos Shumba Interim Director, WWF- Harare Zimbabwe Godwin Mubaiwa Finance Manager, Harare WWF-Zimbabwe Lilian Goredema Regional Operations Harare Manager, WWF- Zimbabwe Milward Kuona Projects Officer, WWF- Harare Zimbabwe Candice Bate Communications Harare Officer, WWF- Zimbabwe Simukai Nyasha Senior Ecologist, Harare PWMA Hamuzofi Nyaguse Senior Ecologist, Harare PWMA Alleta Nyahuye Env. Planning & Harare Monitoring Manager, EMA Debra Magwada EIA & Ecosystems Harare Protection Manager, EMA Lioli Maguma Env. Planning & Harare Monitoring Officer, EMA Member Research Coordinator, Harare Mushongahande FC Joseph Muchichwa Mapping & Inventory Harare Officer, FC Charles Jonga Director, CAMPFIRE Harare Association Webster Muti Safeguards Consultant Harare Irvine Kunene Director for Harare Environement, MoEWC Edward Samuriwo Director for Natural Harare Resources, MoEWC David Bonnardeaux Environmental Harare Consultant Locations Country First Location Planned Actual Comments Administrative Division Zimbabwe Midlands Midlands Province X Zimbabwe Matabeleland North Matabeleland North X Province Zimbabwe Mashonaland West Mashonaland West X Province Province I. STRATEGIC CONTEXT A. Country Context 1. During the past four years, Zimbabwe has seen relative political stability, the adoption of a multi-currency regime, and economic reforms have generated economic growth. Nonetheless, the preceding decade of economic decline, induced by recurrent cycles of political and economic crises, has severely compromised basic service delivery, public sector capacity, infrastructure maintenance, and the investment climate for the private sector. 2. Following a modest 4.7 percent in 2012, growth decelerated in 2013, to 3.0 percent. Tapering off economic growth has resulted from continued slackening of the key sectors of the economy, amidst declining international commodity prices, weak investor confidence, and vulnerabilities in the banking sector. Growth is expected to pick-up to 4.2 percent in 2014, supported by a rebound in agriculture, after a poor 2013 season, when the agriculture sector contracted overall by 1.3 percent. An International Monetary Fund (IMF) Staff Monitored Program has been under implementation since June 2013, offering the opportunity for Zimbabwe to establish a track record on macroeconomic management. 3. Food insecurity has been reduced since the peak of the crisis in 2008-09, but it still remains at an unacceptable level. Indeed, the persistent vulnerability of the agricultural sector to shocks has been evident in the past two agricultural seasons, as late onset of rains, prolonged drought, and the reduction or late arrival of subsidized or free inputs led to the write-off of about 45 percent of the potential maize harvest in 2011-2012. A similar pattern was emerging for the 2012-13 agricultural season, with current estimates predicting a 3.5 percent decline in overall agricultural growth. Food insecurity increased by over sixty percent during the 2012-13 season, mainly as a result of drought. Vulnerability increased as a result, as the assets of poor households were eroded. 4. The recent 2011-2012 poverty report2 reveals that 72.3 percent of Zimbabweans are poor, with poverty being most prevalent in rural areas, where 84.3 percent of people and 62.6 percent of households are deemed poor, whilst 16.2 percent of households are in extreme poverty. The health, education, and agriculture sectors are constrained by declining public financing, the introduction of informal fees and levies, an acute shortage of adequately trained personnel, dilapidated infrastructure, and obsolete equipment. 5. The country experienced relative political stability over the last four years since the establishment of an "Inclusive Government" in 2009, made up of the three major political parties - creating significant reforms and implementing programs to turn around the economy. Peaceful elections were held in July 2013 and subsequently a 1 Short Term Risk Monitoring Group, 2014. January 2014 STRMG Report. 2 Zimbabwe National Statistics Agency (ZimStat), 2013. Poverty and Poverty Datum Line Analysis in Zimbabwe 2011/12. 12 new government was sworn in September. The Government crafted a new economic blueprint known as the "Zimbabwe Agenda for Sustainable Socio-Economic Transformation (Zim Asset)"3 6. The Government of Zimbabwe (GoZ) has been in arrears to the World Bank since October 2000. The prospects and likely timelines for clearing arrears to the International Financial Institutions remain uncertain at this time. Without the clearance of arrears to International Financial Institutions, Zimbabwe cannot access regular development assistance from these institutions. However, as per OP 10.20, GEF funding can be provided to countries in arrears, if the Bank determines that the objectives of the project can nevertheless be achieved. In view of capacity constraints, the GoZ has requested that the funds would be on-granted to the World Wide Fund for Nature-Zimbabwe (WWF-Zimbabwe), to execute this GEF-funded project on its behalf but in close partnership with the relevant Government institutions. B. Sectoral and Institutional Context 7. Zimbabwe faces a number of daunting environmental challenges including deforestation and forest degradation; land, air, and water pollution; soil erosion; land degradation; loss of biodiversity; and contamination and pollution from poor mining practices. The political and economic upheaval the country has gone through since 2000 has diverted attention from management of the challenges facing the country's natural resources. Factors contributing to environmental deterioration include population growth, poverty, agricultural expansion, and continued reliance on wood fuel. The global rise in the demand for oil and minerals has increased prospecting and mine development around high biodiversity areas in some regions of the country. 8. Forestland constitutes 40.4 percent of total land area. Designated parks and forest reserves cover about 5 million hectares. These areas are the habitat for a rich native fauna, representing a major attraction to the tourism subsector. Timber and non-timber forest products are a good source of livelihoods for the rural population living in close proximity to these areas. Forests contribute about 3 percent of the GDP in Zimbabwe and are an important source of employment. 9. Forest and land degradation are particularly worrisome throughout the country. Unsustainable firewood collection is contributing to widespread deforestation, land degradation, and loss of biodiversity. The country lost about 20 percent of its forest cover between 1990 and 2010, an average loss of 327,000 hectares per year, with tobacco curing being a major contributor, making it one of the world's top ten countries based on the largest annual net loss of forest area.4 Land degradation results from human land use changes and unsustainable land use practices, particularly in the heavily utilized communal areas. Inappropriate land use and non-compliance with 3 Government of Zimbabwe, 2013. Zimbabwe Agenda for Sustainable Socio-Economic Transformation (Zim Asset) "Towards an Empowered Society and a Growing Economy" October 2013- December 2018. This publication is available at http://www.herald.co.zw/wp-content/uploads/2014/01/Zim-Asset.pdf. 4 Food and Agriculture Organization (FAO), 2010. Global Forest Resources Assessment, 2010. Report available at http://www.fao.org/docrep/013/il757e/il757e.pdf. 13 natural resource conservation measures and legislation have worsened the situation. Land degradation can have significant economic impacts by reducing agricultural productivity and from gullying. Sustainability of agriculture and food security will be further compromised by loss of biodiversity. 10. The government is reviewing legislation and regulations to compel farmers to plant trees for every hectare of tobacco but the monitoring and enforcement systems remain exceedingly weak. There is also increasing interest in conservation agriculture, including conservation farming, as a way to minimize the adverse effects of utilization of the natural resources. 11. Global Climate Models (GCMs) indicate that most of southern Africa, including Zimbabwe, is likely to experience higher temperatures in coming decades but the picture for rainfall is less clear. The International Panel for Climate Change (IPCC) Fourth Assessment Report suggests that by 2050 Zimbabwe's temperatures will be 2 to 40C higher than the 1961-1990 baseline, while rainfall will be 10 to 20 percent less . Other model simulations show annual rainfall declining by 2080 by 5 to 20 percent from the 1961-90 average in all of the country's major river basins, with possible decreases in rainfall especially during the period of the rainy season onset (September to November)6. While average annual rainfall appears to have changed little over the last 50 years, droughts and floods have become more frequent and severe and the onset of the rains less dependable. 12. The World Bank is finalizing an important study on Climate Change and Water Resources Planning, Development and Management in Zimbabwe. Climate change will result in significant impacts in Zimbabwe, and key aspects are being incorporated in the Water Sector Investment Analysis (WSIA). The study uses global climate models to determine likely changes in precipitation and analyses the consequences. The study indicates that the impact is likely to be a reduction in average precipitation in all catchments except Mazowe and Manyame. The drier catchments of Runde and Mzingwane will be affected most, with declines in mean annual precipitation of between 12 percent and 16 percent by 2050, consistent with the IPCC estimates. Groundwater recharge will follow a similar pattern of reduction. An important aspect of the analysis is to indicate that surface runoff will be affected to an even greater extent than the decline in rainfall: for example, in Sanyati a 3-7 percent decline in rainfall gives a 10-23 percent decline in Mean Annual Runoff (MAR). In addition, there is likely to be greater variability in rainfall and greater frequency of extreme events (droughts and floods). Boko, et al., 2007. "Africa" in IPCC, 2007. Impacts, Adaptation and Vulnerability- Contribution of Working Group II to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change. Cambridge University Press, p. 433-467. The 2014 Fifth Assessment Report released in March 2014 did not significantly change these broad conclusions but note that the estimates differ significantly between the different scenarios used by the Panel. 6 Government of Zimbabwe/UNDP/GEF, 2011. Coping with Drought and Climate Change in Zimbabwe Project Report. 14 13. Increases in temperature, more frequent extreme weather events, and greater rainfall variability are expected to increase the occurrence of crop failures, pests, crop disease, and the degradation of both land and water resources, all of which will adversely affect Zimbabwe's natural resources base. Land degradation, exacerbated by climate variability and change, manifests itself through soil erosion, water scarcity, and loss of vegetation, and will also affect agriculture productivity. As per Zimbabwe's Second Communication to the United Nations Framework Convention on Climate Change (UNFCCC), under the worst-case scenario, by 2080 Zimbabwe's plant diversity is projected to decline throughout the country, under dryer conditions, with concomitant shrinking of high biodiversity areas.7 14. Groundwater provides water to more than 70% of Zimbabwe's population; the country is one of SADC's most groundwater dependent countries (along with Botswana and Namibia). The maintenance of large elephant populations in HNP depends on groundwater extraction (see Annex 8). The rural population that is dependent on groundwater, particularly those in the drier west and southern parts of the country, will be most adversely affected by climate change. It is the principal source of water for both the communal and commercial sectors in rural areas and a major source of water for irrigation, mining, and tourism. Yet its planning, development, and management has received little systematic attention since the mid-1980s because the country concentrated on the provision of clean water from surface water resources. There is almost no monitoring of groundwater levels (except near mining activities and in some urban areas) and little investigation of groundwater resources. The Government of Zimbabwe (GOZ) introduced a new Water Act in 1998, along with the ZINWA Act to establish a specialized water management agency (the Zimbabwe National Water Authority, ZINWA). The Government has recently endorsed a new National Water Policy (NWP), and is currently preparing a Water Quality and Source Protection Strategy. With assistance from the World Bank, it is also finalizing a Water Sector Investment Analysis (WSIA), and engaged in a number of transboundary water initiatives. See further information on groundwater below under Lessons learned. 15. Aquifers provide a natural buffer against the variability of weather conditions and climatic events, responding much slower than surface waters to meteorological variability. During droughts, groundwater can therefore sustain the availability of water during critical times, such as the end of the dry season. Sustainable use of groundwater is a challenge because there is a dearth of data and scientific information on hydrogeological characteristics (i.e., availability, quality, productivity, etc.). The infrastructure used to abstract groundwater may also not be maintained or adapted to local conditions. Monitoring of groundwater in Zimbabwe is mostly done at point sources such as boreholes, wells, and trenches. There is, however, lack of monitoring that allows for a more regional or basin perspective. 16. One of the main responses to climate change will likely be greater reliance on groundwater. The management of groundwater, and particularly the conjunctive 7 Ministry of Environment, Water and Climate (MoEWC), 2013. Zimbabwe National Climate Change Response Strategy. Available at http://www.ies.ac.zw/downloads/draft%20strategy.pdf. 15 management of surface and groundwater, is widely regarded as a vital strategy to ameliorate the effects of climate change and rainfall variability. However, certain groundwater resources may themselves be at risk from drought. Indeed, the crystalline aquifers in the Southern African Development Community (SADC) region in general, and in Zimbabwe in particular, are highly vulnerable to drought and to climate change. The drought risks for Zimbabwe are further exacerbated by the concentration of human 8 populations in risk prone areas . 17. The Hwange-Sanyati Biological Corridor (HSBC) covers the bulk of northwest Zimbabwe (see map at the end of this report), providing livelihoods for livestock farmers, forest-dependent populations, and communities engaged in wildlife-based enterprises. The future of the HSBC is shadowed by all of the environmental and natural resource management issues that are problematic at the national scale. Additionally however, there are a number of challenges specific to this broad swathe of the national territory. 18. Although most of the area of the HSBC is too dry for crop production, households on the communal lands in these regions grow grain crops (maize and millet) for their food security and some cash crops such as cotton. Crop yields are low and the risk of crop failure is high in one out of three years9. Cattle and goat production are major sources of cash income. 19. Rangelands occupy a significant portion of the HSBC and climate change effects are expected to be pronounced in these areas with more frequent and intense droughts, affecting available water and forage for wildlife populations, livestock, and crop yields. Human-wildlife conflict (HWC), already exacting its toll on community livelihoods through destruction of gardens and crops and killing of livestock, will be exacerbated as wildlife travels further outside Hwange National Park (HNP) in search of high nutrient grazing grounds and accessible water sources, negatively impacting an already food insecure population (estimated at between 20 to 40 percent in the HSBC arealo). 20. The recently concluded World Bank Livestock Sector Analysis indicated that rangeland net primary production (NPP) will decrease from the current average maximum of 8 tonnes/ha/year to just over 5 tonnes/ha/year resulting in lower rangeland carrying capacity for livestock and wildlife. The south-west and north-western parts of the country will experience greater reduction in NPP than in other parts of the country. 21. Due to the generally poor and infertile sodic soils of the HSBC and relatively low vegetation density, coupled with the semi-arid climate and improper land use practices (including stream bank cultivation, veld fires, and land clearance for cultivation), soils 8 World Bank, 2103. Zimbabwe Water Sector Investment Analysis, a Summary Report. 9 Rukuni, M. and C. K. Eicher, 1994. Zimbabwe's Agricultural Revolution. University of Zimbabwe, Harare. 10 FAO, 2010. FAO/World Food Programme Crop and Food Security Assessment Mission to Zimbabwe. Available at website of Economic and Social Development Department: http://www.fao.org/docrep/012/ak352e/ak352e00.htm. World Bank, 2013. Zimbabwe Livestock Sector Analysis. 16 in the HSBC area are being chemically and physically weathered resulting in extensive erosion and severe gullying in some areas. 22. With limited resources, various branches of the GoZ are attempting to tackle management challenges of the HSBC. A variety of other actors are tackling some of the main natural resource management issues within the HSBC. The Food and Agriculture Organization (FAO) has supported a human and wildlife conflict mitigation project in Hwange District. The French Agricultural Research Centre for International Development (CIRAD) is undertaking research in HNP. Wilderness Wildlife Trust in Hwange is supporting an anti-poaching and game water supplies initiative. In Nyaminyami District, the Convention on the International Trade in Endangered Species of Wild Fauna and Flora (CITES) has a project monitoring illegal killing of elephants. 23. With support from the World Bank and other development partners, the GoZ has recently signed off on the Comprehensive Africa Agriculture Development Programme (CAADP) compact and its associated Zimbabwe Agricultural Investment Plan (ZAIP) as the framework to guide future agricultural development investments. From a NRM perspective, this has been an important milestone as these CAADP documents emphasize that a sustainable increase in agriculture production and productivity hinges upon improved management and sustainable use of the natural resources base. The ZAIP indicates that the productive potential of the natural resource base can be enhanced by targeted investments in irrigation, forestry, secure tenure and land rights, and sustainable land management (SLM) practices, which is particularly evident under the first Intermediate Result Area in the ZAIP: "Increasing production and productivity through improved management and sustainable use of land, water, forestry and wildlife resources". The ZAIP emphasizes the importance of sustainable forestry and wildlife management and the role that conservation farming should play. 24. The Government of Zimbabwe recently completed a GEF-funded project, implemented through the United Nations Development Programme (UNDP), "Coping with Drought and Climate Change Project". It sought to demonstrate and promote adoption of a range of gender-targeted approaches for adaptation to climate change among rural communities engaged in agriculture in vulnerable areas of Chiredzi District, as a national model. The GEF Small Grants Program is supporting various activities on protection of biodiversity and its sustainable use for enhancement of livelihoods in Zimbabwe (e.g. protection of forest ecosystems through afforestation and promotion of agroforestry and ecological restoration of degraded pasture and farm land). Participatory management approaches such as the Community Areas Management Programme for Indigenous Resources (CAMPFIRE) have been adopted in the past, albeit with limited success in some cases. 25. These diverse investments in the HSBC lack a coherent strategic focus and there is an urgent need for a greater range of management tools and capacity building in their use and in implementing a more comprehensive and sustainable vision of natural resources management. 17 26. The institutional map of actors responsible for natural resources management in the HSBC is complex. The Ministry of Environment, Water and Climate (MoEWC) is responsible for policy formulation, strategy development and executing programs in the environment sector of Zimbabwe as a whole. The Environmental Management Agency (EMA) is responsible for ensuring the sustainable management of natural resources and protection of the environment, the prevention of pollution and degradation. The Parks and Wildlife Management Authority (PWMA) manages wildlife conservation and sustainable use specifically in protected areas around the country. The Forestry Commission (FC) contributes to national socioeconomic development through effective regulation and capacity enhancement in the sustainable utilization and management of forest resources. EMA, PWMA, and the FC all fall under the authority of the MoEWC (for more information, see Section IV) and all will be involved in the implementation of this project. C. Higher Level Objectives to which the Project Contributes 27. As noted above in the Country Context, the Government of Zimbabwe has recently formulated "Zim Asset", a five-year development plan for the country. The implementation of the Plan will be carried out through four clusters, among which, is the "Food security and nutrition cluster". The key result areas of this Cluster are, among others, environmental management of natural resources and protection and conservation of biodiversity. 28. The Interim Strategy Note (ISN) (2013-2015), endorsed by the World Bank's Board in April 2013, put forward three priority areas: fostering an enabling environment for reducing vulnerabilities, improving resilience, and strengthening human development. The ISN proposes "a broad based pro-poor growth strategy with support for social protection and other mechanisms to provide safety nets for the poor and vulnerable and for improving the availability, cost, and utilization of basic services for the poor." The HSBC Project is in alignment with the ISN under the third objective of reducing vulnerabilities, improving resilience, and strengthening human development. 29. Zimbabwe was making rapid strides towards the achievement of Goal 7 of the Millennium Development Goals, Ensuring Environmental Sustainability, before the onset of the economic crisis but is now off-track to meet this goal. The HSBC project, at least for northwestern Zimbabwe, will be a step toward regaining ground that has been lost in the last decade. 30. The project will furthermore contribute to addressing the following higher level challenges: a) Reducing biodiversity loss and improving community livelihoods by improving the capacity of the Parks and Wildlife Management Authority to better manage Hwange National Park and assist its buffer communities to economically and substantially benefit from natural resources; 18 b) Halting/reducing land degradation by training the Environmental Management Agency to develop and pilot sustainable land management tools; c) Reducing forest degradation and enhancing carbon sequestration by supporting the Forestry Commission in implementing improved forest management practices in selected gazetted forests; and d) Given that the project area falls within the Kavango-Zambezi Transfrontier Conservation Area (KAZA TFCA), the project will contribute to the country's regional integration agenda as articulated in the Southern African Development Community (SADC) Treaty (see Annex 8 for further information on KAZA TFCA). 31. The project uses an integrated landscape/ecosystems approach in the specific geographic area of the HSBC within Zimbabwe and thus, will be developed as a multi- focal area project combining several GEF strategic focal area objectives. The project is a cross-cutting proposal that is consistent with the GEF Biodiversity (Objectives 1), Climate Change (Objective 5), Land Degradation (Objective 3) and Sustainable Forest Management/REDD+ (Reduced emissions from deforestation and forest degradation) (Objective 1). Linkages are detailed in the incremental costs analysis (Annex 7). II. PROJECT DEVELOPMENT OBJECTIVE(S)/GLOBAL ENVIRONMENT OBJECTIVE(S) A. PDO/GEO 32. The combined Project Development Objective/Global Environment Objective (PDO/GEO) is "to develop land use and resource management capacity of managers and communities in the Hwange-Sanyati Biological Corridor (HSBC)". Project Beneficiaries 33. In the vicinity of HNP, many communities benefit from activities associated with the park and its buffer zones: crafts, concessions, access to wildlife in buffer zones for bushmeat, employment in lodges, and self-employment in tourism-related activities. Many of these surrounding communities will benefit from better management of HNP and the resulting increase in tourism and wildlife (see further data on tourism in HNP in Annex 2). An estimated 10,000 persons are considered to be direct project beneficiaries of the investments in HNP. 34. An estimated 5,000 persons will be direct beneficiaries from the alternative livelihood activities that will shift communities away from unsustainable resource harvesting. Another estimated 4,000 people will benefit from improved forest management in the two forest reserves targeted under the project. 35. The improved management of HNP and the forest reserves will not only benefit tourists and local communities but will directly benefit wildlife populations within the HSBC. The project will in particular directly benefit HNP's elephants, one of the largest herds 19 of this keystone species in Africa, by ensuring sustainable water sources, reducing poaching, and facilitating their movement across the HSBC corridor in search of forage. Other than elephants, many other species that depend on the same natural habitat and water sources in the park will similarly benefit. 36. Finally, an estimated 1,000 people will directly benefit from the land degradation investments namely through better gully management and soil conservation and management. A much larger number of persons, not considered quantifiable, will be indirect beneficiaries from the protection of threatened infrastructure and from putting in place longer-term land management models. 37. The combined number of beneficiaries of HNP management, livelihood investments, forest management, and land degradation investments is thus 20,000, which will be measured as a core indicator under the project. Project beneficiaries will include women and youth. To ensure that gender and youth issues are mainstreamed into the management of the buffer zone, the project will target women and youth as direct beneficiaries from alternative livelihood activities supported by the project. Gender- specific benefits will be monitored; the monitoring indicator for the total number of beneficiaries includes a disaggregated value for women, a target of 50% by the end of the project. PDO Level Results Indicators 38. Progress towards achieving the PDO will be measured using the following indicators and end of project (EOP) targets: a) An improvement in protected area (PA) management effectiveness as measured by the standardized GEF tracking tool, the Management Effectiveness Tracking Tool (METT), from 51 to 68. An intermediate value of 59 is expected by the mid-term review (MTR). b) The amount of carbon sequestered in the project forest reserves remains stable over the lifetime of the project, with no net loss of carbon, thus reversing the baseline trend of a continuing loss of carbon. c) The number of hectares where the project introduces successful management and/or remediation of sodic soil areas currently subject to major gullying problems; the target is 500 ha. d) A total of 20,000 direct project beneficiaries (of which 50 percent female) (this is a World Bank core indicator with a standardized methodology). 20 III. PROJECT DESCRIPTION A. Project Components 39. The project will have four components (see Annex 2 for more detailed description of investments under each component and subcomponent): 40. Component 1: PA management and community livelihoods (US$10.025 million of which US$1.795 million is GEF financing and US$8.23 million is parallel financing). The aim of this component is to improve management of Hwange National Park and the livelihood of communities involved in stewardship of the natural resources in its buffer zone. The component will focus primarily on Hwange and Tsholotsho Districts, the only districts in the HSBC that share boundaries with HNP. 41. Subcomponent 1.1: Improved management of Hwange National Park. This subcomponent would finance investments for improving park management, improving water and game water supply management, and supporting essential research and monitoring. Investments would include consultants, studies, operational costs, equipment, and vehicles. 42. Subcomponent 1.2: Improved community livelihoods through wildlife management. This subcomponent would support investments in the buffer areas of HNP through the restocking of wildlife areas; mitigating human and wildlife conflict (HWC); provision of appropriate training to rural district councils (RDCs), environment sub-committees and communities; and conducting research on HWC mitigation. It will support the CAMPFIRE system that will open new opportunities to communities to allow them to better manage their natural resources (largely through trophy hunting quotas that create employment for local populations as well as revenue for infrastructure projects). 43. Component 2: Improved forest and land management (US$9.54 million of which US$3.24 million is GEF financing and US$6.3 million is parallel financing). The aim of this component is to improve forest and land management across the HSBC by developing tools to address land degradation, land use change, and deforestation and by implementing pilot activities. 44. Subcomponent 2.1: Improved forestry management. Five of the country's 24 gazetted indigenous forest areas are found within the project area: Sikumi, Ngamo, Mzola, Kavira and Sijarira. The project will focus specifically on the Sikumi and Ngamo Forest Reserves (see map in Annex 9) that are adjacent to the HNP and consequently provide continuity for wildlife movement within the corridor. The subcomponent will support better forestry and wildlife management; build national capacity on REDD+ as a tool for avoiding deforestation; and produce a compendium on invasive and alien species (IAS). 45. Subcomponent 2.2: Land Rehabilitation. The root causes of land degradation, which include both natural and man-made factors, include: extensive change in land use, deforestation, intensive farming of riverbanks and hillsides, and soil composition and structure. The project area straddles the Gwayi (87,960 km2) and Sanyati (74,534 kM2) 21 catchments. These catchments receive 450 to 650 mm of rainfall per annum. Most of the catchments' inhabitants depend on agriculture for survival, growing crops such as maize, small grain cereals, and cotton under rain fed conditions and tend cattle and goats. The Ume sub-catchment, which includes Chireya Ward and is characterized by sodic soils, is one of the most degraded landscapes in the corridor. In order to support land rehabilitation in the sub-catchment, the project will develop a sustainable land use decision support tool that focuses on sodic soils; pilot the tool with communities in the Ume sub catchment; provide training on the use of the tool, particularly for the Environment Sub-Committees; support coordinated land use planning; and produce best practice guidelines on the management of sodic soils and provide for their use in areas with similar soils and management challenges. 46. Component 3: Corridor Sustainability (US$8.37 million of which US$0.335 million is GEF financing and US$8.035 million is parallel financing). Under this component, project actors led by MoEWC will work together to ensure close coordination and synergy between the different components and project activities, to promote better development planning and coordination at the wider landscape level of the HSBC, and to facilitate corridor-level scaling-up of land management and biodiversity conservation tools and initiatives. Specific activities to be undertaken under this component include: a) Mapping of land use patterns within the biological corridor and technical support to the units within the ministries to develop a strategy for landscape-based approaches for good management of forests and wider landscape in the HSBC. b) Review and systematically package relevant tools developed in the different project components for wider dissemination and up-scaling to corridor level. c) Support to develop and implement a communication strategy on the integrated approach for the HSBC that encompasses branding of the corridor. d) Further solidify the links with KAZA TFCA in support of the transboundary nature of the HSBC; bolster coordination with KAZA TFCA partners through regular meetings with practitioners and sharing practical experiences on transboundary conservation issues. e) Build national and regional institutional capacity in climate change and natural resource use analysis, capacity building, and awareness creation. 47. Component 4: Project Coordination (US$0.875 million of which US$0.275 million is GEF financing and US$0.6 million is parallel financing). This component will provide funding to manage and provide oversight of the project, including financial management and audits, procurement, and monitoring and evaluation (M&E). B. Project Financing 48. The project will be a five-year operation, financed with grant resources from the GEF trust fund totaling US$5.645 million. Parallel financing is estimated at US$23.165 22 million for a project total of US$28.81 million. Parallel financing contributions include both grant financing and in-kind financing. 49. The overall project cost by component, disaggregated by funding source, is provided in the following table. See also the Incremental Costs Annex (Annex 7) for a more detailed breakdown of counterpart and GEF financing by component. Parallel Project Components Project cost GEF Financing fi % GEF Financing 1. PA management and community 10.025 1.795 8.23 18 livelihoods 2. Improved forest and land 9.54 3.24 6.3 34 management 3. Corridor Sustainability 8.37 0.335 7.485 4 4. Project Coordination 0.875 0.275 0.6 31 Total Costs 28.81 5.645 23.165 20 C. Lessons Learned and Reflected in the Project Design 50. The World Bank has relatively little recent environment sector project experience in Zimbabwe to draw on, but the ongoing implementation of the Project Preparation Grant, through an institutional arrangement similar to that which will be used for the main project, was an important step to fine-tune legal, institutional, and project coordination approaches. This said, the Bank has useful experiences from its overall country engagement with Zimbabwe. The Bank has remained engaged with the country through projects, analytical work and Technical Assistance, within the context of the arrears. The experience under projects, such as the Results-Based Financing in health, have demonstrated that effective country-specific project implementation arrangements can be worked out, and more importantly these can deliver much-needed development results for the people. These also have potentially wider demonstration effects - e.g. the GoZ and partners are currently scaling-up the model used in the health project across the country based on the successes under the Bank-funded health project. The experiences from the Bank's knowledge to GoZ's work and technical assistance also demonstrate that with some flexibility in the design of the Trust Funds, they can be an effective way for the Bank to engage on policy and budget issues and contribute to GoZ's work. The Bank has also played an effective convening role in identified areas which shows that it is possible for the Bank to bring its leverage even when direct Bank funding is not possible due to the arrears. 51. For the protected area investment in Hwange National Park, the World Bank can draw on a vast wealth of experience in protected area projects in other countries of Africa. One important lesson, still being incorporated into standard practice in Zimbabwe, is the importance of incorporating the inputs of local communities in the actual protected 23 area management. Further information on how these concepts will be operationalized, based on best practices, are detailed in the Process Framework, one of the project safeguard instruments, discussed in more detail in Annex 3. 52. Experience has demonstrated that in other drought-prone areas of southern Africa that are highly dependent on pumped groundwater, attention must be paid to the sustainability of groundwater dependent ecosystems (GDEs)12. Over the past decade, the droughts experienced in Zimbabwe have been among the worst in the SADC region, in turn undermining the productivity and recharge of groundwater systems. Careful and comprehensive studies and long-term groundwater monitoring programs are important (both extraction and recharge areas). Lessons learned from studies done on GDEs as part of a previous SADC Groundwater and Drought Management Project (GEF, 2005-2011), emphasized that conservation managers need to have insight into the type, location and extent of groundwater systems through an established methodology and mapping. This is particularly the case for HNP where wildlife populations, and thus the main tourist attraction of the park, are highly dependent on artificial water holes. A follow-on project, the Sustainable Groundwater Management in SADC Member States, will start implementation in 2014 and include a Transboundary Diagnostic Analysis (TDA) of the Eastern Kalahari/Karoo Aquifer which underlies a major part of the HNP. As part of the TDA, there will be opportunities to establish mutually reinforcing linkages. In this project, the groundwater study will be financed under Subcomponent 1.1; see Annex 2. 53. Zimbabwe was the first African country to develop a successful community-level approach to the management of wildlife outside protected areas through CAMPFIRE in the 1980s and 1990s. During 1989-2001, CAMPFIRE generated over US$20 million of transfers to participating communities, 89% of which came from sport hunting (Foster and Bond, 2006)13. CAMPFIRE enabled communities to benefit from wildlife revenue streams from their areas. For example, in 2011 Tsholotsho and Hwange districts realized US$212,515 and US$54,488, mostly from sport hunting. Such tangible benefits allowed communities to tolerate damage inflicted on their crops and livestock losses. However, very few direct benefits have accrued to individual households and the CAMPFIRE program in the country is in decline. 54. An example of the underperformance of CAMPFIRE in recent years is provided by Sidinda Ward (37,500 ha) in Hwange District. The district received significant dividends from hunting safaris since the introduction of CAMPFIRE to the area. However, poor performance by the then safari operator in 2004 resulted in the loss of revenues by communities who subsequently resorted to wildlife poaching. This effectively reduced the hunting quota of the area. 12 GDEs are ecosystems that must have access to groundwater to maintain their ecological structure and function. " Frost, Peter and Ivan Bond, 2008. "The CAMPFIRE Programme in Zimbabwe: Payments for Wildlife Services", Ecological Economics 65(4): 776-787. 24 55. A wealth of studies and reviews14 have looked at the CAMPFIRE experience and have generally concluded that although individual community areas or projects have not always been successful, there is still a long legacy of initiatives which have generated resources for local communities from wildlife, a rare example of an incentive for local communities to be supportive of conservation. Foster and Bond (2006) noted 5 lessons from the CAMPFIRE experience: community-level commercial transactions can seldom be pursued in isolation; non-differentiated payments weaken incentives; start-up costs can be high and may need to be underwritten; competitive bidding can allow service providers to hold on to rents; and schemes must be flexible and adaptive. 56. The land degradation component of the project deals with a number of difficult inter- related issues, of which a major one is the ongoing expansion of gullies. The Bank has a major gully control project in Nigeria and has implemented a sodic soils project in India. During the project, a study tour is planned to further learn from the best international experiences. 57. Activities that will be promoted under the land degradation component may need to include improved water management, conservation agriculture, improving crop and grazing land management, and agro-forestry. Working with women will be essential as they play a critical role in natural resource and forest conservation. Thus, innovations around use of indigenous fruit trees for income generation as well as community works that involve rehabilitation of degraded lands will be promoted. 58. Some researchers have shown that gully erosion, while highly visible, may not always be the most important issue to be tackledl6. Sheet erosion for example may be more problematic, although less immediately obvious. In the preparatory work for the land degradation component under this project, it will be important to more carefully review the existing research on gullies and its applicability to the local context. 59. Finally, the concept itself of the Hwange-Sanyati Biological Corridor is inspired by a relatively large number of similar corridor initiatives in southern Africa which have taken on board the importance of maintaining habitat connectivity across large swathes of the landscape, for keystone species such as elephants. For African countries that still have wildlife populations outside of protected areas, this landscape-based approach is a viable proposition. The considerable amount of work and research that has gone into the development of the KAZA TFCA has shaped the development of the HSBC, which itself is an integral part of this transboundary initiative (see Annex 8 for further details). 14 In addition to Foster and Bond (2006) cited above, see a range of publications at http://www.campfirezimbabwe.org/. A good review is presented by Alexander, J. & J. McGregor, 2000. "Wildlife and Politics: CAMPFIRE in Zimbabwe", Development and Change 31(3): 605-627. 15 Nyagumbo, I., B. M. Mbvumi, and E. Mutsamba, 2009. "Conservation Agriculture in Zimbabwe: socio-economic and biophysical studies", a paper presented at the SADC Regional Conference on Sustainable Land Management, Windhoek, Namibia, 7-11 September. 16 Leach, M. and R. Mearns, 1996. The Lie of the Land Challenging Received Wisdom on the African Environment. Oxford: James Currey. A chapter by Mike Stocking refers in part to Zimbabwe. 25 IV. IMPLEMENTATION A. Institutional and Implementation Arrangements 60. The Ministry of Environment, Water and Climate (MoEWC) is ultimately responsible for environmental issues in Zimbabwe and will provide oversight of the project operations which will be executed by WWF-Zimbabwe. MoEWC is responsible for policy formulation, strategy development and executing government programs in the environment sector (including water issues and climate change). The Ministry of Finance and Economic Development (MoFED) will sign the grant on behalf of the Government of Zimbabwe (GoZ). 61. During implementation, the project will focus on building capacity within Government. The Bank will assess progress in this regard and discuss with the Government any changes to the project implementation arrangements which may be suggested by the Government, WWF-Zimbabwe, or the World Bank. 62. The Parks and Wildlife Management Authority (PWMA) is a parastatal under MoEWC. It derives its mandate from the Parks and Wildlife Act of 1996 and its subsequent amendments. The Act empowers the Authority to effectively and profitably manage Zimbabwe's wildlife resources for the benefit of present and future generations. 63. The Authority has a staff complement of 3,225 people strategically located throughout the country. It does not receive government transfers but manages the parks by commercializing its operations - "natural resources paying for their own conservation". This has resulted however in severe under-capitalization and cash flow problems that continue to erode its capacity to sustainably manage the parks. Funding for the protection and development of the national parks has declined from US$200 per square km in 1980 to an estimated current value of US$10 per square km. A comparative figure for Kruger National Park in South Africa is US$2,000 per square km. In 2011 PWMA had a recurrent budget of US$19.8 million of which US$11.4 million went to staff salaries. A total of US$0.9 million was allocated to capital expenditures. The PWMA will oversee the biodiversity parts of the HSBC project. 64. The Community Areas Management Programme for Indigenous Resources (CAMPFIRE Association) is the lead agency for the community livelihoods subcomponent. It implements a community-based natural resources management program developed by the Government of Zimbabwe in the late 1980s, piloting the generation of income for rural communities. CAMPFIRE operates with the support of the Zimbabwe Parks and Wildlife Management Authority, and is an association governed by its member RDCs (58 out of 60 participate). The Association is legally recognized as a Welfare Organization (W/O 15/94) registered in Zimbabwe under the Welfare Organizations Act (Chapter 93). 65. The Environmental Management Agency (EMA) is a parastatal under MoEWC, responsible for the sustainable management of natural resources and protection of the 26 environment, prevention of pollution and environmental degradation, and preparation of national environmental management plans. EMA is responsible for the land degradation subcomponent of the HSBC project. Its mandate is derived from the Environmental Management Act. The Agency has a staff complement of 260 people located throughout the country. Its funding comes from two sources -- namely own- revenue generation efforts and government transfers. In 2010, the Agency generated US$8.2 million and received US$0.8 million in government grants for recurrent expenditures. Of the total amount, US$2.7 million went towards staff costs. Capital expenditures totaled US$1.1 million that year. 66. Finally, the Forestry Commission (FC) is another parastatal under MoEWC. Its mandate is derived from the Forestry Act, as amended in 1999, and is to provide for regulation, management, and capacity enhancement within Zimbabwe's forestry sector. The Act regulates forest use on state land, commercial farming areas, and gazetted forests. The Commission has a staff of 673 people located throughout the country. Its main funding sources are Government of Zimbabwe (GoZ) transfers and revenue from own resources. The organization's plan is to progressively increase own revenue receipts and reduce its dependence on government transfers. In 2012 it had a recurrent budget of US$4.8 million from GoZ (of which US$4.4 million for salaries) and US$2.8 million from own resources. A total of US$0.8 million was allocated to capital expenditure. The FC is responsible for the forestry management subcomponent of the project. The FC is also responsible for the REDD+ agenda in Zimbabwe and under this project will receive training and capacity building, in part provided by WWF. 67. The project will be executed by WWF-Zimbabwe that has a long presence in the country and involvement in support of the environment sector. The main responsibilities of WWF-Zimbabwe will include: (i) all fiduciary aspects of the project including overseeing financial management and procurement, contracting of independent auditors and project reviewers; (ii) targeted technical assistance (TA) and training as needed; (iii) management and coordination of the monitoring and evaluation system; (iv) preparation of periodic reports; (v) coordination of the communication strategy and outreach and awareness building; and (vi) coordination and consultation with relevant civic and NGO representatives. 68. A Steering Committee will be established during the first months of project implementation. It will be composed of MoEWC; Ministry of Agriculture, Mechanization and Irrigation Development; Ministry of Local Government, Public Works and National Housing; EMA, PWMA, FC, CAMPFIRE Association, WWF- Zimbabwe and other agencies as needed. During project implementation the committee will advise on annual plans and budgets, review progress reports, and coordinate donor- supported activities. As the executing agency of the project, WWF-Zimbabwe will act as a Secretariat for the Steering Committee. 69. Local communities, rural district councils (RDCs), and non-governmental organizations (NGOs) are all key stakeholders in the implementation of the HSBC project. The sustainability of the project largely hinges on the effective participation of the targeted local communities and their RDC counterparts. A vehicle for community participation 27 will be the district-level environment committees which in turn are supported by ward- level environment sub-committees. Traditional leaders are represented at both district and ward level through these committees. 70. The project will have a Project Implementation Manual (PIM) that will, amongst other things, describe in detail all the aforementioned institutional and implementation arrangements. The Bank has accepted the use of WWF's Field Operations Manual to constitute the bulk of the PIM; these arrangements are already in place under the Project Preparation Grant phase. A final version of the PIM will be required by Effectiveness. B. Results Monitoring and Evaluation 71. The project monitoring and evaluation (M&E) framework will serve to: i) monitor and report on implementation progress as agreed in work plans and related budget plans; ii) proactively identify potential bottlenecks in implementation of the activities and decide appropriate corrective actions; and iii) assess and report on the achievement of planned outputs, outcomes, and impacts as per the Results Framework established for the project (See Annex 1). 72. WWF-Zimbabwe will be in charge of coordinating the data collection effort with the other stakeholders and partners and operating the M&E system. It will compile the data collected and prepare regular progress reports to be presented to the World Bank and to the GoZ. Cost for collection of monitoring information is embedded in the project activities. The project team will include an M&E officer. 73. Component 3 will support the FC, PWMA, EMA, and CAMPFIRE Association to operationalize and roll out their respective M&E systems that will monitor the implementation of the activities and ensure compliance with their respective annual work programs. C. Sustainability 74. For Hwange National Park, the focus on long-term sustainability of park resources (particularly ground water) is a critical component of the project's long-term sustainability. Fortifying relationships with the local communities, to be supported through the project, will be an important element for the sustainability of the park. 75. For the difficult issue of sodic soils which characterize much of the HSBC, the multi- facetted approach to be developed and refined in the decision support tool to be prepared aims at long-term sustainable approaches rather than short-term fixes. In this component and indeed throughout the project, the focus on working with local communities, with the support of CAMPFIRE Association, is critical for long-term sustainability. 28 76. The very concept of the HSBC is an effort by the GoZ and the various project stakeholders to take into account the entire landscape and long-term development issues to provide more sustainability for project investments than might have been obtained from one-off investments in specific sectors. V. KEY RISKS AND MITIGATION MEASURES 77. Key risks, with mitigation measures, include: a) Targeted local communities could continue to engage in unsustainable practices such as wildlife poaching, timber poaching, or poor land management practices. The project, at a moderate scale commensurate with its limited resources, will tackle this risk through livelihood projects and greater community level involvement with park and forestlands management. b) Due to limited capacity in the government's environment sector and in the project implementing agencies at technical levels, project execution could face delays. However WWF-Zimbabwe will not only provide close support but also targeted training to build the necessary capacity. c) Design of the land degradation component is risky because of limited up-front knowledge of sodic soil management issues specific to the project areas. Expectations that the project can make an immediate contribution to gully management are not realistic and will need to be managed. As a mitigation measure, major investments under the project will attempt to develop the needed soil management decision support tools and provide training and capacity building. d) Project sustainability risk is substantial because of the ambitious scale of the corridor- wide project. During project implementation, it will need to be made clear that the project does not intend to bring about major changes across large areas of Zimbabwe but instead primarily aims to provide tools and capacity building, based on limited pilot project investments. A. Risk Ratings Summary Table Risk Category Rating Stakeholder Risk High Implementing Agency Risk - Capacity High - Governance High Project Risk - Design High - Social and Environmental Moderate 29 - Program and Donor Moderate - Delivery Monitoring and Sustainability Moderate Overall Implementation Risk High B. Overall Risk Rating Explanation 78. The overall project risk is rated as High due to risk at the country and sector levels, in capacity, governance, design, and sustainability. VI. APPRAISAL SUMMARY A. Economic Analysis 79. As per GEF requirements, an Incremental Costs Analysis has been carried out and is included in Annex 7. Annex 6 provides an economic analysis of the project. Some components and subcomponents of the project aim to yield economic benefits to specific beneficiaries (during the project these benefits will be quantified to the degree possible as part of the M&E effort): * Improved management of HNP will, over the long term, improve its draw for tourists and thus economic returns to the State and to adjacent communities partially dependent in some way on tourism revenues. * Communities that will benefit from the community livelihood investments under Component 1.2 (e.g., stocking of wildlife on communally-managed hunting areas) should see income increases. * Resolving human-wildlife conflict, a major focus of Component 1.2, is intended to reduce future potential economic damage from wildlife, particularly elephants. * Improved forest management should reduce long-term management costs (through better fire management for example) and should yield direct benefits to communities who are harvesting non-timber forest products. * Stabilizing gullies or otherwise addressing land degradation problems in the project area should quickly result in reduced economic impacts that would otherwise occur from loss of infrastructure. 30 B. Technical 80. The geohydrological assessment of the aquifer of the project area is important to the sustainability of any future groundwater abstraction scheme. Appropriate technology will need to be employed in engineering pumping installations, as well as in monitoring and in new technologies to guide rehabilitation, maintenance and operation of existing wells and pumps. These parts of the project will require careful attention during project implementation. 81. For the purpose of anti-poaching in the HSBC, park rangers will need to be outfitted with better handheld radio equipment, along with a concomitant improvement in the communications system throughout the HNP. Training will be required in the use of these new system(s). 82. During the appraisal mission, considerable attention was paid to the challenges in addressing the sodic soils issues in the HSBC. It will be important to draw on experiences from similar areas in the development of the proposed decision support tools. C. Financial Management 83. WWF-Zimbabwe will be the implementing entity for the HSBC Project and will be responsible for the financial management of the project. In accordance with the Financial Management Manual issued by Operations Policy and Country Services (OPCFM), the Bank carried out a financial management assessment on March 1, 2010 and updated the assessment in January 2014. The objective of the financial management (FM) assessment is to determine whether the financial management system put in place by WWF-Zimbabwe is capable of supporting the implementation of the HSBCP in Zimbabwe. In particular, the assessment aims to determine whether there are adequate FM arrangements to ensure that project funds will be used only for intended purposes and in an economical and efficient way; (b) whether the financial reports of the HSBCP will be prepared in an accurate, timely and reliable manner; (c) whether the project's assets will be safeguarded. The assessment concluded that WWF- Zimbabwe has adequate FM arrangements to satisfy the Bank's minimum requirements under OP/BP 10.02. The overall financial management residual risk rating for the project is low. For further information on FM arrangements, please consult Annex 3. 84. WWF-Zimbabwe is currently managing the Project Preparation Grant so has already accumulated good experience on World Bank requirements with respect to financial and disbursement issues. Additionally, WWF-Zimbabwe has had significant experience managing various multilateral and bilateral projects. Audited Financial Reports with unqualified (clean) audit opinions have been issued for the years ended June 2010, 2011, and 2012. The HSBCP accounts will be audited by a reputable external audit firm and accounting and audits will be conducted in accordance with sound and 31 internationally recognized accounting and auditing principles and practices satisfactory to the Bank. The audit reports and related project accounts will be submitted to the Bank within six (6) months after the end of the fiscal year. D. Procurement 85. WWF-Zimbabwe will be responsible for all procurement under the project. Accordingly, a procurement capacity assessment of WWF-Zimbabwe was undertaken in accordance with the World Bank's Procurement Risk Management System to assess overall project risk and identify mitigation actions. The initial assessment was carried out on March 10, 2011 and updated in June 2013. Based on the agency procurement implementation risk assessment, the overall Assessment of Risk was assessed as Moderate. Measures required to address procurement risks were summarized in the Procurement Risk Assessment and Management System. Full details of the procurement arrangements for the project can be found in Annex 3. E. Social (including Safeguards) 86. Community participation will be supported through local institutions present in the HSBC and through CAMPFIRE, a community-based organization working in the HSBC for several decades. Consultation with communities in the past has clearly indicated the need for alternative livelihood activities to improve the sustainable management of the area's resources. With its community-driven development focus, traditional leaders and community members were integral in the decision-making on investment choices. Awareness building will also be carried out with the support of chiefs and other individuals with high standing in the community. 87. While women and youth carry out a large proportion of the agricultural labor in Zimbabwe, relatively few have meaningful decision-making power. The project will seek to address gender and social inclusion issues in the project area through the use of participatory processes, and the monitoring and evaluation of project results. Where appropriate, the project will coordinate activities with NGOs that promote socio- economic empowerment of women and youth. 88. Annex 3 includes more details on social safeguard issues. Social issues in general are covered in the ESMF (see below). With regard to resettlement, there will be no acquisition of land, or negative impacts on assets, with respect to this project. However, the Involuntary Resettlement Policy has been triggered as project activities are intended to reduce access to natural resources, albeit illegal access, in the HNP and forest reserves. A Process Framework (PF) has been prepared which will focus on ways that the project can include communities in conserving park resources and benefitting from park activities. 32 89. A small area outside of but adjacent to the southeast corner of the HSBC is home to Indigenous Peoples, members of the San people (commonly known as Bushmen). The Indigenous Peoples Policy, however, has been triggered as some project interventions under Component 3 (Corridor Sustainability) are expected to positively impact the San: mapping of land use patterns within the corridor, development of a strategy for landscape-based management of HSBC resources, a communication strategy for HSBC, and outreach activities. As necessary, the latter need to be tailored to be culturally appropriate for the San. In addition, they are stakeholders in the management of the HNP. 90. An Indigenous Peoples Planning Framework (IPPF) was prepared as it is not known which activities will be initiated and will affect in some way San populations until project research, studies, designs, and strategies are completed. Once it is determined how to involve communities throughout the corridor area, an Indigenous Peoples Development Plan (IPDP) will be prepared to ensure project interventions will better improve San opportunities to participate and benefit from project activities in ways which are culturally appropriate. F. Environment (including Safeguards) 91. From an environmental standpoint, the main issues include: i) subproject investments in the HNP and in the forest reserves and in Component 2 livelihood investments (such as buildings, track maintenance, fire breaks, etc.) could have minor impacts; ii) water hole management investments if poorly implemented could potentially result in depletion of groundwater resources (the project itself will however be supporting development of groundwater management strategies); and iii) land degradation subprojects could involve minor impacts. 92. The proposed project is considered a category 'B' project since the anticipated impacts will be small-scale and site-specific and can be mitigated. There will be no large scale, significant, or irreversible concerns. The expected environmental impacts of the project will be net positive. 93. To address potential environmental and social issues under the project (see also the IPPF and PF as noted above), the Recipient has prepared an Environmental and Social Management Framework (ESMF). The ESMF describes the various steps of the environmental and social management and monitoring required by this project - from subproject screening to implementation, monitoring and supervision - along with a clear description of the roles and responsibilities of the various entities involved in the project's safeguards function. 33 Annex 1: Results Framework and Monitoring Country: Zimbabwe Project Name: Hwange-Sanyati Biological Corridor Project (P124625) Results Framework Global Environmental Objectives PDO Statement To develop land use and resource management capacity of managers and communities in the Hwange-Sanyati Biological Corridor (HSBC). These results are at Project Level Global Environmental Objective Indicators .Data Responsibility Cumulative Target Values Sore fo Source/ for Unit of .End Methodolog Data Collectic Indicator Name Core Measure Baseline YR1 YR2 YR3 YR4 Et Frequency Measure Target y Improved .Pj Project MET PM,W management of Number 51.00 59.00 68.00 start-up, PWMA, WW Hwange MTR, EOP surveys National Park Amount of Stable carbon carbon to be sequestration in Percentage Start-up and measured FC, WWF project forest EOP using reserves. ground and remote 34 satellite surveys Land area where sustainable land mgt.pracicesMTR and Field mgt. practices Hectare(Ha) 0.00 200.00 500.00 EMA, WWF were adopted as EOP surveys a result of project Direct project / MTR and WWF and benecirjes . Number 0.00 8000.00 20000.00 MTR Surveys pan beneficiaries EOP partners Female Percentage MTR and WWF and beneficiaries Sub-Type 0.00 40.00 50.00 EOP Surveys partners Supplemental Intermediate Results Indicators .Data Responsibility Cumulative Target Values Dore fo Source/ for Unit of .End Methodolog Data Collection Indicator Name Core Measure Baseline YR1 YR2 YR3 YR4 Et Frequency Measure Target y Areas brought x under enhanced Hectare(Ha) 0.00 0.00 0.00 MTR and METT biodiversity EOP surveys protection (ha) Reduced E poaching Number 858.00 900.00 800.00 600.00 500.00 400.00 Annual Surveys PWMA incidents New areas outside protected areas Number 0.00 2000.00 10000.00 MTR and Surveys CAMPFIRE managed as EOP biodiversity- friendly (ha) 35 Reduced E]W human-wildlife Number 100.00 90.00 80.00 70.00 50.00 30.00 Annual Surveys PIR conflict Forest area brought under Hectare(Ha) 0.00 25000.00 157300.0 MTR and Surveys FC management 0 EOP plans Capacity MTR and WWF and building of Percentage 0.00 50.00 80.00 EOP Surveys partners beneficiaries 36 Annex 1: Results Framework and Monitoring Country: Zimbabwe Project Name: Hwange-Sanyati Biological Corridor Project (P124625) Results Framework Global Environmental Objective Indicators Indicator Name Description (indicator definition etc.) Improved management of Hwange National Park The METT index is a proxy measure of how effectively the park is managed, taking into account financing, community involvement, threats, and other factors. Stable carbon sequestration in project forest reserves. Percentage change in the amount of carbon sequestered in forest reserves areas as based on ground and remote sensing surveys, measuring tC/ha. Land area where sustainable land mgt. practices were This indicator measures the land area that as a result of the Bank project incorporated adopted as a result of project and/or improved sustainable land management practices. This indicator can track progress toward sustainability at farm scale and at landscape scales within agroecological zones, watersheds, or basins. The baseline value for this indicator is expected to be zero. Specifically for this project, this indicator measures areas where successful actions are undertaken to manage and/or remediate areas of sodic soils initially subject to gullying. Direct project beneficiaries Direct beneficiaries are people or groups who directly derive benefits from an intervention (i.e., children who benefit from an immunization program; families that have a new piped water connection). Please note that this indicator requires supplemental information. Supplemental Value: Female beneficiaries (percentage). Based on the assessment and definition of direct project beneficiaries, specify what proportion of the direct project beneficiaries are female. This indicator is calculated as a percentage. Specifically in this project, this core indicator will measure the total number of direct beneficiaries from PA, forestry, and land degradation components. 17 Female beneficiaries Based on the assessment and definition of direct project beneficiaries, specify what percentage of the beneficiaries are female. 17 Texts in italics are explanations specific to this project and which supplement the default descriptions which are standard for World Bank core indicators. 37 Intermediate Results Indicators Indicator Name Description (indicator definition etc.) Areas brought under enhanced biodiversity protection This is a proxy indicator that measures biodiversity protection as a result of the World (ha) Bank operation through formally converting an area into a protected area and establishing a functioning management system; or, improving the management system of an existing protected area. Under this GEF obligatory core indicator, METT scores of a PA are placed in one of three broad categories of management and an increase in areas under enhanced protection only results when the PA shifts from one category to another. This is not expected to happen with HNP (which is expected to begin and end in the category of 35-75, a "basic functioning management system ", so the end target is 0. Reduced poaching incidents A poaching incident is an observed infraction (e.g., a poached animal, a poacher's camp, an arrested poacher). New areas outside protected areas managed as This indicator measures the number of terrestrial hectares outside protected areas biodiversity-friendly (ha) where, as a result of the World Bank operation, the site is managed at least in part to obtain biodiversity gains. Under this project, this core indicator serves to measure the communally-managed hunting areas that will benefit from stocking and management. Reduced human-wildlife conflict Incidents of HWC are the indicator to be measured. These include reported incidents of significant damage to crops, property, or people caused by wildlife (such as elephants or lions). Forest area brought under management plans This indicator measures the forest land area, which, as a result of Bank investments, has been brought under a management plan. This includes production and protection forests as well as other forests under sustainable management. The baseline value is expected to be zero. Under this project, this core indicator measures the number of ha of the two target forest reserves which will benefit from improved management. Capacity building of beneficiaries Intended beneficiaries of capacity building demonstrate meaningful knowledge of project-developed tools. 38 Annex 2: Detailed Project Description ZIMBABWE: Hwange-Sanyati Biological Corridor Project 1. The Project Development Objective is "to develop land use and resource management capacity of managers and communities in the Hwange-Sanyati Biological Corridor (HSBC)." The Hwange-Sanyati Biological Corridor covers six districts namely: Binga, Gokwe North, Hwange, Kusile, Nyaminyami, and Tsholotsho. 2. Component 1: PA management and community livelihoods (US$10.025 million of which US$1.795 million is GEF financing and US$8.23 million is parallel financing). Zimbabwe has 26 protected areas that consist of 11 national parks, 6 safari areas, 10 recreational parks, 2 botanical gardens, and 2 botanical reserves that together cover 5.2 million ha. The 26 areas constitute the Parks Estate. While the HSBC encompasses three national parks (Hwange, Chizarira and Matusadona) as well as Chete and Chirisa Safari Areas, the project's main focus will be on Hwange National Park (HNP) as it is the largest park and is a biological reservoir for most of the wildlife found in the corridor. 3. The park has a surface area of 14,651 km2. Hwange National Park has outstanding national and global biodiversity importance (see Annex 8 for more information on the biodiversity of the park). The management of the HNP is based on a park management plan, the last version of which covers the period 1998-2003. The plan embraces activities such as fire management, game water supply, wildlife management, and infrastructure development, but needs to be updated. Operational plans are done annually. The African Wildlife Foundation is funding the preparation of a new management plan for the park, to be completed in 2015. Inadequate financial and human resources compromise the management of the park. HNP is patrolled by a contingent of about 240 rangers at any given time. This translates to only one ranger per 5000 ha, inadequate for a park under heavy poaching pressure. In 2011, HNP had an annual recurrent budget of US$2.11 million of which US$1.24 million went to salaries and allowances. Its capital expenditure for that year was nil. 4. Because HNP must in effect generate its own revenues, tourist visitation is extremely important. Increasing the number of tourists and sustaining these numbers are critical for the long-term sustainability of the park. The table below presents data on tourist arrivals in HNP. Significant increases since 2011 are attributable to increases in both domestic and foreign visitors. 39 YEAR LOCAL FOREIGN TOTAL 2005 17680 7102 24782 2006 11715 7736 19451 2007 10878 7754 18632 2008 6757 4612 11369 2009 10062 5240 15302 2010 10192 7817 18009 2011 18002 13218 31220 2012 20495 18742 39237 2013 22053 22359 44412 5. Water holes were first drilled in HNP in about 1965, when elephant numbers had declined to about 2000, due to lack of water. With 56 active water holes in the park at this time (of 80 that have been drilled), the program has been successful in allowing a huge increase in elephant numbers, to about 50,000. However the sustainability of the current rate of water extraction is unknown. This in turn raises questions about the sustainability of the total population of elephants. Currently unacceptable levels of damage to the vegetation are being observed in the vicinity of the active water holes. The carrying capacity of the park for elephants remains to be calculated but will be in large part a function of the number of future water holes and their placement. 6. The HNP overlaps in part with the transboundary aquifer, the Eastern Kalahari/Karoo Basin (shared with Botswana). The aquifer is one of approximately 24 transboundary aquifers in the SADC region. The lithology of the Eastern Kalahari/Karoo Basin18 is of upper Karoo sandstone partially covered by basaltic volcanics with some primary porosity and fractured permeability, forming confined to semi-confined aquifers. According to the British Geological Survey, the location of the aquifer is "on a plateau- like watershed" between the Nata River in the west and the Zambezi River in the north. 7. A Transboundary Diagnostic Analysis (TDA) for the Eastern Kalahari/Karoo Basin is included in the upcoming World Bank Sustainable Groundwater Management in SADC Member States Project (also GEF supported, 2014-2019). The TDA will promote collaboration between Zimbabwe and Botswana on developing shared solutions to any current or future management issue of groundwater. There are further opportunities for mutual benefits for groundwater studies and interventions in the HSBC and the SADC Groundwater project. The latter project will include the operationalization of the SADC Groundwater Management Institute (hosted by the University of the Free State in South Africa on behalf of SADC Member States) who will fulfill the role of interlocutor of groundwater knowledge and training in the region and thereby, ability to partner with localized activities such as that proposed under the HSBC. 8. Some challenges specifically facing HNP include: 1 Davies, Jeff, Nick Robins, John Farr, et. al., 2013. "Identifying transboundary aquifers in need of international resource management in the Southern African Development Community Region", Hydrogeology Journal 21: 329. 40 * Subsistence and commercial wildlife poaching. Some 600 snares were recovered in 2012. In addition 32 poachers were arrested. Since 2006 the number of recovered snares has been steadily increasing but the number of arrested poachers is declining. Cyanide poisoning of waterholes to poach elephants resulted in the death of about 100 elephants in HNP in 2013, a tragic case that attracted worldwide attention. * Uncontrolled forest fires. In the period 2007 to 2012 about 10% of the park was being burned each year in controlled bums. An additional unknown amount of the park was being affected by veld fires that were not controlled burns, and the ecological costs and benefits are currently not well understood. * Inadequate game water supplies. Of a total of 80 watering points in the Park, only 56 are currently functional. This forces wildlife to aggregate at a limited number of watering points, resulting in habitat destruction. Since its inception, the Park has been abstracting underground water for wildlife during the dry season. However, the sustainability of such water abstraction in the long run has never been assessed and remains unknown. * Human-wildlife conflict (HWC) resulting from animals that originate in the HNP, principally elephants, is a major preoccupation of neighbouring communities and an important source of conflict between the park and those communities. From 2009 to 2012 reports of elephant HWC have remained stable at about 90/year and lion HWC have been increasing to about 20/year. 9. The aim of this component is to improve management of the Hwange National Park and the livelihood of communities involved in stewardship of the natural resources in the buffer area of the HNP. The component will focus primarily on Hwange and Tsholotsho Districts, the only districts in the HSBC that share boundaries with the HNP. 10. Subcomponent 1.1: Improved management of Hwange National Park. This subcomponent would finance investments for improving park management, improving water and game water supply management, and supporting essential research and monitoring. Specific activities to be supported would include: a) Updating annually the HNP operational plan, in collaboration with buffer communities and relevant RDCs; substantially involving local communities has not been previously done. b) Training and better equipping of park rangers (vehicles, field equipment, GPS units, camping equipment, boots, and uniforms), improving the communications infrastructure of the park. c) Support to anti-poaching initiatives above and beyond general support to park rangers. The project will help support coordination with a range of anti-poaching initiatives both nationally and regionally. The World Bank is currently managing a GEF-financed project to combat elephant poaching in Africa and synergies will be sought with that 41 project, possibly to develop additional projects in Zimbabwe focused on elephant poaching. d) A comprehensive study on groundwater hydrology in the HNP to assess the sustainability of various extraction regimes and to monitor the ecological effects of artificial water supply. As noted above, it is intended that this study will be carried out jointly with the World Bank SADC groundwater project. The details of this collaboration will be determined in the first months of the project. e) Strategic drilling of boreholes in the park, if compatible with the results of the groundwater study, to minimize overgrazing and over-abstraction in some areas and begin pumping in other areas; explore alternative means of water abstraction; investigate and put into practice alternative ways of minimizing seepage from existing pans. f) Vegetation monitoring baseline survey will be done in first year of project, based on analysis of remote satellite imagery. It will be repeated at end of project, to understand ecological changes in the park and to monitor possible impacts from fire or anthropic modification of park areas. g) A thorough assessment of the fire ecology of the HNP (also to cover forest reserves covered under Component 2). This is intended to be a one-time study. The study will inform a fire management plan which is prepared each year, but without a good understanding of the ecological implications of the current fire management strategy in the park. h) Conduct wildlife aerial surveys to assess the numbers of indicator species wildlife populations. Surveys will be carried out in 2014 and 2018. The last aerial survey carried out in HNP was in 2006. 11. Subcomponent 1.2: Improved community livelihoods through wildlife management. This subcomponent will support investments in the buffer areas of HNP through the restocking of wildlife areas; mitigating human and wildlife conflict (HWC); provision of appropriate training to the relevant RDCs, environment sub-committees and communities; and conducting research on HWC mitigation. It will support the CAMPFIRE system that will open new opportunities to communities to allow them to play a greater role in the management of their natural resources (largely through trophy hunting quotas that create employment for local populations as well as revenue for infrastructure projects). 12. Investments will include consultants, operational field and office costs, meeting and training costs, game capture and game transport costs, vehicles and motorbikes, computer equipment, works, and communication equipment. Specifically, the subcomponent will: a) Improve the income of Sidinda Ward communities through the restocking and sustainable use of its wildlife under public-private community partnerships based on an appropriate management strategy. An ecological study will be carried out to define 42 carrying capacity in the wildlife conservation area. Other investments will: carry out restocking, establish and nurture PPPs, strengthen Environment Sub-committees, enhance the monitoring capacity of communities, and produce a business plan. There is currently one inactive PPP safari operator in the Sidinda area and many others who are interested in establishing a PPP agreement with the communities. b) Conduct research on HWC with emphasis on a deeper understanding of HWC dynamics and the development of effective mitigation measures. Costs will include collaring and tracking of some elephants and possibly aerial surveys if justified (to be coordinated closely with aerial inventories planned for HNP). c) Improved HWC in selected wards of Tsholotsho District. Investments will include: surveillance mechanisms, implementation of mitigation measures, raising of awareness and community capacity, promotion of chili cultivation, and monitoring of changes in HWC and wildlife damage. Lessons learned will be applied to other districts but the limited project funding will not permit major investments in HWC outside of Tsholotsho Distict. d) Support Environment sub-committees (community level committees; for further information see table in Annex 3) to assume their responsibilities as mandated under the Environment Management Act. This legislative provision is yet to be tested in wildlife producing areas. 13. Component 2: Improved forest and land management (US$9.54 million of which US$3.24 million is GEF financing and US$6.3 million is parallel financing). The aim of this component is to improve forest and land management across the HSBC by developing tools to address land degradation, land use change, and deforestation. 14. Subcomponent 2.1: Improved forestry management. Zimbabwe has 24 gazetted indigenous forests that cover about 800,000 ha. Their size ranges from 567 ha (Ungwe) to 144,000 ha (Gwaai). The forests were gazetted between 1926 and 1960 to control harvesting of commercial indigenous timber species used to produce mine props, railway sleepers, flooring parquets, and furniture. The forests are important for watershed and soil protection (catchment area protection), biodiversity conservation, wildlife habitats and as a source of commercial timber and non-timber forest products such as honey, mushrooms, edible insects and indigenous fruits. 15. Gazetted forests contribute to the forestry and tourism sectors. Substantial quantities of indigenous timber products are exported as furniture, flooring, and wood carvings. In addition, the forests generate revenue from photographic safaris and sport hunting. With respect to hunting, there can be as many as 160 hunts nationally, lasting 14 to 20 days each, per hunting season (May to October). Sport hunting and photographic safari operations employ substantial numbers of people. Depending on the size of the safari outfit, there could be up to 25 people employed in catering, grounds maintenance, game tracking, and tour guiding. 43 16. Five of the country's 24 gazetted indigenous forest areas are found within the HSBC: Sikumi, Ngamo, Mzola, Kavira and Sijarira. The project will focus specifically on the Sikumi and Ngamo Forests that are adjacent to the HNP and consequently provide continuity for wildlife movement within the corridor. Unlike other gazetted forests, there is neither commercial timber logging nor human settlements in the two forests although the neighboring communities access the forests for grazing, thatch grass, firewood, and other non-timber forest products. No timber logging is allowed in the two forests as this would conflict with their intended vocation targeted to photographic and hunting safaris (the forests were initially gazetted for their conservation value and ecosystem function). 17. The Sikumi Forest (see map at end of report for location of the two forest reserves) is 54,400 ha. The Acacia woodland covers a significant portion of the forest and a small portion consists of Miombo and Baikiaea teak woodlands. The Ngamo Forest is 102,900 ha. It is mostly composed of Baikiaea woodlands. Dominant species include: B. plurijuga (Zambezi teak), Guibourtia plurijuga, Pterocarpus angolensis (mukwa) and Afzelia quanzensis (pod mahogany). Small pockets of Acacia are found in low lying areas. 18. Forest management plans for the two forest areas exist although they are now outdated, covering only the period from 2004 to 2008. Forest management plans provide for zonation of activities such as sport hunting, photographic safaris, collection of non- timber forest products, and livestock grazing. The two forest areas specifically face a number of important challenges. From 2009 to 2013, 50 commercial timber poachers were arrested in the two reserves. Subsistence and commercial wildlife poaching is problematic. Some 504 snares were recovered during 2009-2013. In addition 89 poachers were arrested during the same period. The two forests measure 157,300 ha in total and are only patrolled by a contingent of 12 guards at any given time. This translates to one guard per 13,000 ha. Furthermore, the two forests share one vehicle for guard deployment and forest monitoring. 19. The tables below show the trends in wildlife and timber poaching in Sikumi and Ngamo forests from 2009 to 2013. Forest Area Year Arrests Snares removed made Sikumi/ 2009 12 63 Ngamo 2010 14 230 2011 26 45 2012 20 33 2013 17 133 44 Forest Area Year Arrests Items Confiscated made Sikumi/ 2009 7 5 cords of firewood, 1.2m3 Ngamo of timber Timber 2010 8 3 tons of fire wood, 16 poaching giraffe curios 2011 16 109 boll curios and 195 other curios 2012 12 8 cords of firewood and 104 curios 2013 7 18 cords of firewood and 27 curios 20. From 2009 to 2013 the forests recorded a total of 33 forest fires that affected 123,081 ha. Inadequate game water supplies affect wildlife numbers. Of a total of 15 watering points in the two forests, only five are functional. This forces wildlife to aggregate at few watering points, resulting in habitat destruction. Forest degradation due to extensive elephant damage and fires, among other things, is contributing to changes in species composition as evidenced by the increasing dominance of Termaneria species in what was historically a teak-dominated ecosystem. There is also some emerging evidence of increases in formerly non-resident species that are taking advantage of changes in the ecosystem within the forest areas and indeed across the corridor. However very little is known about such invasive and alien species (IAS) in the HSBC, especially terrestrial ones. Invasive species could increasingly have adverse impacts on the entire corridor's biodiversity/ecosystem if the problems are not better understood and addressed. 21. Local communities are involved at a number of levels such as during the preparation of forest management plans and in community-level fire brigades. However, heightened efforts are needed to more substantively involve local communities in the management of the forest reserves. 22. Data on carbon storage in these forest reserves has not been collected. It is possible however to make informed estimates based on typical values for dry woodlands and forests in Africal9. Forests typical of the Acacia, Miombo and Baikiaea woodlands that characterize the two forest reserves store on average between 45 and 55 tC/ha, so a rough estimate of 50 tC/ha is used for the project forest areas as a predicted baseline. Of this amount, about 25 to 35 tons of carbon are above ground and a conservative 20 tons of carbon in roots. These values will be confirmed through ground and remote sensing inventories to be carried out in the first year of the project20. Because of the fire and 19 Detailed data on African dry forest carbon storage is included in the World Bank's Project Appraisal Document of the Burkina Faso Forest Investment Program - Decentralized Forest and Woodland Project (2013). 20 Some experts, according to WWF-Zimbabwe, estimate values of 15 to 30 tC/ha in these forests in Zimbabwe. The initial surveys under the project will help reduce uncertainties in the current estimates, which may be due to different considerations of whether or not subsoil carbon is considered. 45 timber poaching noted above, it is assumed that the current trend is that of decreasing carbon sequestration (if possible, this will have to be confirmed by analysis of a historical series of satellite images). A rough estimate would be that, in the absence of the project, the amount of carbon sequestered in the forests would decline by about 5%, that is, about 2.5 tC/ha. It is considered that improved forest management over the project five year period will lead to stable carbon sequestration in the forests, that is, an avoided loss of about 393,000 tC, or 1.141 million tCO2-equivalent. 23. Zimbabwe was admitted as a partner of the UN-REDD Program in 2013. This entitles the country to participate in UN-REDD programs, including funding opportunities. Zimbabwe is also finalizing its Climate Change Response Strategy in which REDD+ is an important component. The country has plans to identify a site to pilot a national REDD+ project. A number of private companies, including Kariba REDD, have embarked on REDD+ activities with a focus on the voluntary market, however information on these initiatives is not readily available. The Forestry Commission needs capacity to spearhead the REDD national effort, which is in its first stages. 24. Leakage effects in this project are a possibility, which is to say reducing carbon loss in project area but at the expense of increased carbon loss elsewhere. Potential leakage in the current project might result from an activity-shifting leakage (that is, people leaving the project area to cut trees elsewhere). The issue of leakage can be addressed at transboundary, national, and local levels. 25. In this project, the project area is explicitly transboundary in nature (thus inherently will already address leakage across boundaries). The large size of the project area is probably the best guarantee of minimized leakage because in such rural areas where fuel wood and charcoal are for local consumption, the labor is not highly mobile. At the national level, the leakage effects will be addressed by helping the country to set up a credible national system for monitoring, assessment, reporting and verification of reductions in emissions from deforestation and degradation. In the project's support of the development of national REDD capacity, it will ensure explicit coverage of leakage. 26. Specifically, the subcomponent will support: a) Better equipping of forest managers/workers and implementation of forest management operational plans, including control of timber poaching (equipment purchases to include vehicles, tractors, motor bikes, scanner, plotter, software, computers, and camping equipment). b) Improving the communication infrastructure of the two gazetted forests, including purchase of communication radios. c) Supporting fire protection efforts in collaboration with neighboring community fire brigades. Equipment purchases will include firefighting equipment and a fire tower and activities to be supported include maintenance of fire breaks and support to firefighting operations. 46 d) Enhance anti-poaching capacity in the forests in part by facilitating the functioning of community resource-sharing committees and in part through support to anti-poaching activities of the forest wardens under the FC. e) Carry out a study to better define the direct and indirect drivers of deforestation and forest degradation in the two forest reserves. f) Carrying out detailed assessments of the "readiness" of the two forest reserves to implement REDD+ with emphasis on land tenure arrangements of the forest; arrangements for benefit sharing with communities; institutional capacity to establish baselines and to enforce the law to implement REDD+ projects; and the presence of emission reduction accounting capability (viz. monitoring, reporting, and verification). g) Estimation of carbon sequestration amounts in the Sikumi and Ngamo Forests, in year 1 and at end of the project. Ground and remote sensing inventories would be used to make the determinations of sequestered carbon. This action is necessary to obtain the basic data needed for the results monitoring indicators of the project. At the same time, it will help to build capacity for REDD+ in Zimbabwe. h) Provide training and capacity building to the FC and to other stakeholders as needed on REDD+. Enhanced national capacity will allow Zimbabwe to potentially participate in and benefit from international efforts such as the Forestry Carbon Partnership Facility (FCPF), other than its current involvement with UN-REDD. Under this set of activities, the project would review and support improvements in institutional responsibilities, in legislative and/or regulatory context, and in adoption by national authorities of fundamental approaches relating to monitoring and verification, to safeguards, benefit sharing, and reporting. i) To take stock of/inventory the different invasive and alien species (IAS) found in the gazetted forests in particular, and in the corridor in general, and compile an IAS atlas which will be widely distributed and used as a basis for IAS impact monitoring and devising appropriate IAS management strategies. 22 27. Subcomponent 2.2: Land Rehabilitation. The HSBC straddles the Gwayi (87,960 kM2 and Sanyati (74,534 kM2) catchments. These catchments receive 450 to 650 mm of rainfall per annum. Most of the catchments' inhabitants depend on agriculture for survival, growing crops such as maize, small grain cereals, and cotton under rain fed conditions, and tend cattle and goats. 28. Land degradation has become one of the greatest threats to biodiversity in Zimbabwe and is driven by both anthropogenic and natural causes/drivers. The former include deforestation, poor farming practices, concentrated run off from built up areas/structures; stream bank cultivation and poorly constructed conservation works. Natural causes include soil composition and structure. Of particular concern is soil erosion associated with sodic soils. Sodic soils are those having an exchangeable 47 sodium percentage of greater than 15 %21 . About 16% of Zimbabwe is characterized by sodic soils (Whitlow, 1989)22. A quarter of the country's sodic soils fall within the HSBC project in areas such as Chireya ward of the Ume sub-catchment of the Sanyati catchment. Sodic soils deflocculate, tunnel, and then collapse, forming gullies. For example, the Chireya gully is threatening a hospital, school, and business center in the area. 29. To address this problem, the Chireya community erected check dams, constructed gabions, and planted vetiver grass to try and check the progress of the gully but to no avail. This was partly because these solutions were largely physical and local in nature. They did not take into account the chemical properties of the soils, management of the wider micro-catchment, and the importance of integrated land use planning. While a lot of soil erosion research has been done on croplands, limited focus has been on the rehabilitation of sodic soils. A study by Dye and Walker23 showed that attempts at reclamation and stabilization of gully erosion and on sodic soils are hampered by inadequate knowledge of the basic physical and chemical properties of these soils. 30. Within the Sanyati catchment, the project will focus on the Ume micro-catchment and even more specifically, on Chireya Ward. The latter sits on sodic soils with poor crumb structure and very prone to chemical erosion. Chireya Ward covers 21,000 ha of land. The area around Chireya business centre, especially the mission hospital, is experiencing gully erosion that is threatening the integrity of infrastructure around the center. For example, a gully head has encroached onto the hospital fence and is within 30 metres of the nearest building. The hospital serves a population of 25,000 people. About 500 ha in Chireya is particularly critical because of existing threats to infrastructure (one of the project monitoring indicators is to successful implement management and or/remediation of sodic soils in these 500 ha). 31. In order to tackle the land degradation issues of Chirewa Ward, representative of a much larger area of the HSBC, the project will undertake activities involving consultants, operational costs, works, a vehicle, and minor goods. Planned investments are the following: a) Establish key drivers of land degradation; collate available information on sodic soils; and develop a decision support tool for management of sodic soils. This tool will provide guidelines for sodic soil management at a number of temporal and spatial scales. For example, at a very local level and in a short-term perspective, guidelines 21 Cooperative Research Centre for Soil and Land Management, 1994. Introduction to Soil Sodicity. Government of Australia and University of Adelaide. Available at: http://vro.depi.vic.gov.au/dpi/vro/vrosite.nsf/ Od08cd6930912dle4a2567d2002579cb/813c7894348b29d4ca256ea8000327c6/$FILE/crc%20intro%20soil%20sodi city.pdf. 22 Whitlow, R., 1989. "A Review of Dambo Gullying in South-central Africa". Zambezia 16 (2): 123-150. See http://archive.lib.msu.edu/DMC/African%/o20Journals/pdfs/Journal%/o20of%2Othe%/o20University%/o20of%2OZimbabw e/voll6n2/juzO16002003.pdf. 23 Dye, P. J. and B. H. Walker, 1980. "Vegetation-environment relations on sodic soils of Zimbabwe". Journal of Ecology 68: 589-606. 48 will be provided on appropriate emergency containment approaches. At a longer-term and wider scale, the tool will prescribe catchment management strategies. b) The development of the tool will be supported by targeted site visits (e.g., to other World Bank supported projects tackling sodic soils or gully management). c) Pilot decision making tool with selected communities within the sub-catchment and in other areas as possible. d) Support targeted capacity building initiatives on environmental stewardship for Environment sub-committees (community level committees; for further information see table in Annex 3) to assume their responsibilities as mandated under the Environment Management Act. 32. Component 3: Corridor Sustainability (US$8.37 million of which US$0.335 million is GEF financing and US$8.035 million is parallel financing). As calculated by EMA, the following table presents the distribution of land use categories within the HSBC. Proportion of land under each land use within HSBC Land use system % area under the land use Forest land 4.30 Large scale commercial farming areas 4.05 National parks 31.53 Resettlement areas 5.80 Safari areas 5.93 Small scale commercial farming area 0.09 State land 2.14 Communal lands 42.75 Lakes 3.41 33. The very varied land use across the HSBC and the specific environmental challenges of each of them, coupled with the complex institutional landscape of actors, presents a serious challenge to the concept of improving sustainable management across the corridor-wide area. Under this component, project actors led by MoEWC will work together to ensure close coordination and synergy between the different components and project activities, to promote better development planning and coordination at the wider landscape level of the HSBC, and to facilitate corridor-level scaling-up of land management and biodiversity conservation tools and initiatives. 34. Institutionally, the MoEWC will take the leadership on corridor sustainability. Many other actors however (in sectors such as agriculture, transport, human development, etc.) all are key stakeholders in how the HSBC will be sustainably developed in the future. MoEWC will collaborate and work closely with other stakeholders through the Project Steering Committee and a range of other sector-wide coordination mechanisms. 49 35. Specific activities to be undertaken under this component include: a) Mapping of land use patterns within the biological corridor. b) Technical support to the units within the ministries to develop a strategy for landscape- based approaches for good management of forests and wider landscape in the HSBC. c) Review and systematically package relevant tools developed in the different project components for wider dissemination and up-scaling to corridor level. d) Support to develop and implement a communication strategy on this integrated approach for the HSBC that encompasses branding of the HSBC. e) Further solidify the links with KAZA TFCA in support of the transboundary nature of the HSBC; bolster Coordination with KAZA TFCA partners through regular meetings with practitioners and sharing practical experiences on transboundary conservation issues. f) Build national and regional institutional capacity in climate change and natural resource use analysis, capacity building, awareness creation and support of an information system (whose creation is now underway with UNDP support). 36. Component 4: Project Coordination (US$0.875 million of which US$0.275 million is GEF financing and US$0.6 million is parallel financing). Manage and provide oversight of the project, including financial management and audits, procurement, and monitoring and evaluation. 50 Annex 3: Implementation Arrangements ZIMBABWE: Hwange-Sanyati Biological Corridor Project Project Institutional and Implementation Arrangements Project administration mechanisms 1. WWF-Zimbabwe will be the executing agency for the project (see the table below for a summary of the institutional roles of each of the key institutional actors in the project). WWF-Zimbabwe has a country office (which also houses regional programs) and a regional office for eastern and southern Africa in Kenya and as an international agency is well situated to provide critical specialized support in capacity improvement. The presence of WWF-Zimbabwe on the ground will provide required back-stopping in specific areas by providing technical assistance (TA) on a timely basis to ensure project execution is done as planned. WWF-Zimbabwe also will play a role in the preparation of related projects for financing by donors that support the overall environmental management effort of the government of Zimbabwe, specifically the Ministry of Environment, Water and Climate, thereby ensuring harmonization and complementarity. 2. The main responsibilities of WWF-Zimbabwe will be: i) all fiduciary aspects of the project including overseeing financial management and procurement including contracting of independent auditors and project reviewer; ii) provision of targeted TA and training as needed; and iii) management and coordination of the monitoring and evaluation system; iv) preparation of periodic reports as agreed in the Project Agreement; v) coordination of communication strategy and undertake outreach and awareness building; and vi) coordination and consultation with relevant civic and NGO representatives. 3. The Ministry of Environment, Water and Climate (MoEWC) is ultimately responsible for environmental issues in Zimbabwe and will provide oversight of the project operations. MoEWC is responsible for policy formulation, strategy development and executing programs in the environment sector (including water issues and climate change). The Ministry of Finance and Economic Development (MoFED) will sign the grant on behalf of the Government of Zimbabwe (GoZ). 4. Since government agencies will be responsible for implementation at the ground level, governmental responsibilities also need to be clearly delineated. To address this, a Grant Agreement will be signed between the World Bank and MoFED, the latter signing on behalf of the Government of Zimbabwe. The Bank and WWF-Zimbabwe will enter into a Project Agreement that clearly specifies the role and modality of project execution and a subsidiary agreement will be signed between the GoZ and WWF-Zimbabwe. 5. During the implementation of the Project Preparation Grant (PPG), HSBC stakeholders were engaged and consulted on the design of the HSBC project and its components. The institutional, as well as financial and administrative, arrangements of the project 51 were devised, including agreement on the membership of the Project Steering Committee. The management structure for project preparation work and the structure of reporting and coordination responsibilities at technical and local level were also agreed upon. 6. Two international partners are of particular interest, both focused on sustainable development not only of the HSBC but of the larger transfrontier area of which the HSBC is an integral part. First, the Southern African Development Community (SADC) is responsible for the management and coordination of the KAZA TFCA between Angola, Namibia, Botswana, Zambia, and Zimbabwe, of which the HSBC and specifically Hwange National Park is such an important part (see Annex 8 for further information). The HSBC Project includes explicit funding to support the KAZA TFCA and SADC-supported KAZA TFCA projects are included as project parallel financing. Secondly, the Zambezi Watercourse Commission (ZAMCOM), whose Secretariat is being established in Zimbabwe, supports strategic planning and development at the level of the Zambezi River basin. A major World Bank-supported grant to the ZAMCOM is part of the project parallel financing and a close relationship between ZAMCOM and the HSBC project will be maintained during project implementation. 7. The details of project implementation will be included in the Project Implementation Manual (PIM), to be completed as a condition of effectiveness. As WWF's Field Operations Manual is acceptable to the Bank as constituting parts of the PIM, and it is in use for the PPG, an advanced version of the PIM is effectively already available. Role ofPartners 8. The roles and responsibilities of key national partners are summarized in the following table. National Stakeholders Roles and responsibilities Ministry of Finance and The role of the MoFED, among others, is to coordinate Economic Development the financing of projects by donors and external (MoFED) financiers. They will sign the Grant Agreement on behalf of the Government of Zimbabwe. Ministry of MoEWC is responsible for policy formulation, strategy Environment, Water and development and executing programmes in the Climate (MoEWC) environment sector. It will be responsible for leading the Project Steering Committee and overall coordination of the project. Environmental Spearhead the establishment and operation of Management Agency Environmental Sub-committees. Will be responsible for (EMA) coordinating the pilot land degradation subprojects in the selected catchment. 52 Forestry Commission Represents government interests in forestry (FC) conservation and sustainable use issues on the project. The organization is also responsible within Zimbabwe for REDD+. Will be responsible for coordination the project investments in the forestry reserves. WWF-Zimbabwe Overall project oversight and coordination, including financial management and procurement (details above). Parks & Wildlife Represents government interests in wildlife Management Authority conservation and sustainable use in the project. (PWMA) In addition to their role in Subcomponent 1.1, they provide oversight and representation in the KAZA TFCA as the national coordination agency for transfrontier conservation areas. CAMPFIRE Association Represent community interests at various levels. In addition to their role in Subcomponent 1.2, CAMPFIRE will provide assistance in all components of the project for improving participation and capacity of local communities, and for working with Environment Sub-Committees. Rural District Councils Coordinate land use planning in their respective (RDCs) districts. District Environment The District Environment Committee is a committee of Committees the RDC responsible for articulating and addressing environmental issues within the district. Half of its members are sitting ward councilors and the other half are members representing independent entities and individuals domiciled in the district. It has traditionally made decisions on behalf of local communities in the management of natural resources. The Environment Management Act now provides for the delegation of these RDC powers to Environment Sub-committees (see below), to improve decision making and allow direct management of natural resource management activities by local communities. Environment Sub- The Environment sub-committees consist of community committees members with a passion for the environment, opinion leaders, and the local traditional leadership. It is chaired by a local ward Councilor who also sits on the RDC Environment Committee. The sub-committees are already in place and functional and are intended to replace the District Environment Committees (see above). Their meeting frequency depends on the urgency of the issue at hand and delegation of authority. 53 Zimbabwe Tourism Promote eco-tourism joint ventures through public Authority private partnerships. Facilitate community management and use of tourism related information. Tour & Safari Operators Invest in relevant infrastructure/operations. Market safari hunts and other CAMPFIRE type activities, working collaboratively with CAMPFIRE, PWMA, and the project. Financial Management, Disbursements, and Procurement Financial Management 9. WWF-Zimbabwe will be the implementing entity for the HSBC Project and will be responsible for the financial management of the project. In accordance with the Financial Management Manual issued by Operations Policy and Country Services (OPCFM), the Bank carried out a financial management assessment on March 1, 2010 and updated the assessment in January 2014. The objective of the financial management (FM) assessment is to determine whether the financial management system put in place by WWF-Zimbabwe is capable of supporting the implementation of the HSBCP in Zimbabwe. In particular, the assessment aims to determine whether there are adequate FM arrangements to ensure that project funds will be used only for intended purposes and in an economical and efficient way; (b) whether the financial reports of the HSBCP will be prepared in an accurate, timely and reliable manner; (c) whether the project's assets will be safeguarded. The assessment concluded that WWF- Zimbabwe has adequate FM arrangements to satisfy the Bank's minimum requirements under OP/BP 10.02. The overall financial management residual risk rating for the project is low. 10. Banking and Fund Flow Arrangements. The WWF-Zimbabwe office will be required to open a designated account (DA) with a commercial bank, acceptable to the World Bank, and maintain it throughout the life of the project. There will need to be at least three signatories to the DA which shall not at any point in time include a government official and for any withdrawal to be valid, at least two of the signatories will need to sign. Based on the approved work plan and withdrawal requests, the World Bank will disburse on a quarterly basis into the DA and WWF-Zimbabwe will spend from this account. The initial disbursement may cover the requirement for two quarters and thereafter at the end of each quarter, the resources needed for the following quarter will be disbursed, if the IFRs basis of disbursement is used. On the other hand, if an SOE method of disbursement is used, then the reimbursements will be the amounts spent and documented out of the earlier amounts disbursed. 11. Disbursement Arrangements. The World Bank allows four disbursement methods namely: (i) advance methods as described in the paragraph above; (ii) reimbursement method which will mean refund of amounts pre-financed by WWF Zimbabwe; (iii) direct payments to a third party who provided services to the project; and (iv) special 54 commitments where letters of credit may be required from financial institutions. The Disbursement Letter indicates that the first three methods will be available to the project. 12. Accounting and Financial Reporting. WWF currently uses ACCPAC as their platform for financial management and reporting but they are in the process of migrating to Oracle Light. Oracle Light is expected to go live in April 2014. The software allows for proper recording of project financial transactions, including the allocation of expenditures in accordance with the respective components, disbursement categories, and sources of funds. The financial management of the project in Harare is under the Finance and Administration Manager who reports to the Country Director. The other finance staff include an accountant and an intern. There are job descriptions for each of the jobs that clearly define duties, responsibilities, and lines of supervision and limits of authority. The project will be required to submit Interim Financial Reports (IFRs) on a quarterly basis. The IFRs will be submitted within 45 days after the end of each quarter to the bank. At the end of each financial year, the project will be required to prepare annual financial statements and submit them to auditors. 13. Auditing requirements. The annual financial statements, the IFRs, SOEs, and the accounts of the project shall be audited at the end of each financial year. The audit shall be done by independent auditors acceptable to the bank. The audit shall be done using international auditing standards and terms of reference agreed with the bank. Audit shall be completed and a copy of the audit report together with management letter shall be submitted to the Bank by WWF-Zimbabwe within six months after the end of each financial year. 14. Field Operations Manual. The Field Operations Manual lays out financial management arrangements followed by WWF-Zimbabwe. Project-specific measures not adequately included in the FOM are included in the Project Implementation Manual. Procurement 15. Fiduciary responsibility. The WWF-Zimbabwe Office is part of the WWF, an NGO with headquarters in Geneva, Switzerland. It has a regional office based in Nairobi, Kenya. The office in Harare covers Zimbabwe, Zambia, and Malawi. WWF is an established organization with over 50 years of experience in conservation. At a global level, WWF has established policies and guidelines for procurement. WWF has experience in procurement under World Bank and various other bilateral and multilateral agencies. Their procurement policies are delegated to the field offices and documented in a Field Operations Manual (FOM). 16. WWF-Zimbabwe will be responsible for all fiduciary aspects of the project including those of procurement. Accordingly, a procurement capacity assessment of WWF- Zimbabwe was undertaken in accordance with the World Bank's Procurement Risk Management System to assess overall project risk and identify mitigation actions. Measures required to procurement risks were summarized in the Procurement Risk Assessment and Management System. 55 17. Procurement capacity assessment of WWF-Zimbabwe and review of their Procurement Policy and Manual. The FOM has three sections relevant to procurement management and these are: (i) Field Office signatory limits for contracts and expenditures dated November 2009 which limits the amounts that country office can sign to about US$200,000; (ii) Section 3.1 dealing with Purchasing provides for limits and method of procurement for operating purchases. This section requires that purchases below US$500 require two quotations and those above $US500 would require three quotations; and (iii) Section 1.1 - Grants, Consulting and Third Party Contracts which provides policy and procedures for selection of consultants. WWF-Zimbabwe maintains a vendor list from which quotations are solicited. The list is based on presentations made by vendors and past experience with the vendors. The Bank reviewed the relevant sections of the FOM and found them satisfactory although weaknesses noted in the Procurement Policy are indicated in the table below from the summary of the procurement assessment. Project-specific measures not adequately included in the FOM are included in the Project Implementation Manual. SUMMARY ASSESSMENT OF CAPACITY, RISK AND MITIGATION - ACTION PLAN Analysis of Procurement Issues/Risks Mitigation Measures Capacity 1. Organization Capacity to procure consultants is - Engage a procurement consultant to weak and set up for community assist in selection of consultants in year contracting not defined - Prepare a manual to define institutional setup for community contracting 2. Staffing Professional Staff do not have experience in - Training in World Bank procedures is Experience Bank Procurement required for Administration Officer. - A consultant will be hired to assist with procurement of consultants 3. Monitoring/Control Vendor list not transparently - Need to advertise in the local papers for Systems generated. No cut off for the use expression of interest for the supply of of quotation system goods in order to build on the vendor list. - Thresholds for use of quotations will be agreed at negotiations 4.Capacity to meet Available staff if adequately No major issue. Reporting Requirements trained can produce required reports; 5. Procurement Planning Need to be adopted and used as a - Procurement staff should be trained in monitoring instrument, the use of a procurement plan as a tool of monitoring procurement. - A procurement plan for the project prepared and agreed at appraisal 18. Procurement Post Reviews and Independent Post Reviews. In addition to providing ongoing implementation support, the World Bank will carry out implementation support missions twice per year. This will include a review of procurement activities to 56 ensure that procurement plans are regularly monitored and updated and published on the World Bank's external website as required by the disclosure policy. 19. Based on the agency procurement implementation risk assessment, the overall Assessment of Risk was assessed as Moderate. The initial assessment was carried out on March 10, 2011 and updated in June 2013. Based on the assessed risk, the Bank will carry out Procurement Post Reviews or Independent Procurement Reviews on a sample of contracts not subject to prior review. As risk mitigation measures are successfully implemented, the sample size will be reduced proportionally. High Risk (H) entails a sample size of 20 percent, Substantial (S) Risk a sample size of 15 percent, Moderate (M) risk 10 percent, and Low (L) risk 5 percent. Changes in risk will be communicated to WWF-Zimbabwe as outcomes of the procurement post reviews which may also result in revisions of prior review and the use of Competitive Bidding thresholds. 20. Applicable Procurement Guidelines, Procurement and consultants selection methods limits and Prior Review Thresholds. Procurement of minor works, goods and Non Consulting Services will be carried out using the "Guidelines: Procurement of Goods, Works and Non-consulting Services under IBRD Loans and IDA Credits and Grants by World Bank Borrowers" dated January 2011. 21. Selection of consultants will be carried out using the "Guidelines: Selection and Employment of Consultants under IBRD Loans and IDA Credits and Grants by World Bank Borrowers" dated January 2011. 22. Specific procedures for procurement of minor works, goods and non-consulting services have been further elaborated in the Field Operations Manual (FOM). The FOM has been reviewed by the bank and found to be satisfactory. Specific suggestions for improvement of the manual have been provided by the Bank to WWF Zimbabwe to address noted areas for improvement as provided in the risk mitigation measures table. 23. The prior review thresholds are summarized in the table below. Table: Prior review and procurement method thresholds24 Expenditure Contract Value Procurement Method Contracts Subject to Category (Threshold) Prior Review USD Goods and >=500,000 ICB All Contracts Non- >=100,000- < 500,000 NCB As identified in Consultant <100,000 Shopping procurement plan Services <200,000(Motor Vehicles None only) All value Direct Contracting Community Procurement - All Contracts Community Driven Development (CDD) None UNOPs None 24 See acronyms table at front of report for the meaning of procurement acronyms introduced in this table. 57 Works >=1,000,000 ICB All contracts >=200,000 < 1,000,000 NCB As identified in the <200,000 Shopping procurement plan All value Direct Contracting None All values Force account All Contracts All Contracts Consultants >=200,000 (all) QCBS, QBS All contracts (firms) >=300,000 (Engineering and Contract Management) <200,000 All Values CQS, LCS, QBS, FBS, As in procurement plan SSS All contracts Individual Consultants (IC): (a) >=100,000 IC All Contracts Competitive <100,000 IC None selection Individual All values SSS All contracts Consultants (IC): (b) Single Source Selection Note: Contracts selected on basis of CQS may not exceed cost estimate of US$200,000 equivalent per contract. Use of ICB for works is not anticipated for this project. 24. Procurement plans. With Bank support, WWF-Zimbabwe developed a procurement plan for the first 18 months of implementation; the plan was agreed with the Bank team during negotiations. The procurement plan will be updated annually. 25. Procurement at lower levels (if any) will be included in procurement plans appropriate to those levels, and will on account of relatively small value, generally not be subject to prior review by the World Bank. Instead the World Bank team will review the procedures at these levels and ensure that they are satisfactory and generally in alignment with World Bank policy. To ensure adequate oversight, WWF-Zimbabwe will be required to carry out technical and procurement audits based on Terms of Reference acceptable to the World Bank for a representative sample of these procurements. 26. Procurement arrangements for Goods, Non-Consulting Services and Works. In addition to International Competitive Bidding (ICB), the project is expected to use (the Procurement Plan specifies the instances under which such methods may be used): a) National Competitive Bidding; b) Shopping; 58 c) Direct Contracting; d) Procurement under United Nations Agencies; and e) Community Participation Procedures (for Community-Driven Development, or CDD). 27. Procurement of goods, works, and non-consulting services: Goods to be procured under the project are likely to include: vehicles, information technology equipment (e.g. computers, servers and printers), and office equipment and furniture. Procurement will be carried out using the World Bank's Standard Bidding Documents for all International Competitive Bidding (ICB) contracts. The procurement unit will consolidate similar goods and procure them centrally using International Competitive Bidding (ICB); or alternatively, such appropriate methods as: a) National Competitive Bidding (NCB) (subject to the following additional provisions): (i) the Recipient (including its State Procurement Board) shall not be involved in the procurement process, which shall be conducted entirely by the Project Implementing Entity; (ii) foreign firms shall not be precluded from bidding; (iii) bidders shall not be required to register with any professional organization or association as a condition of bidding; and (iv) bracketing or the rejection of bids based on deviation from cost estimate shall not be allowed; b) Shopping; c) Direct Contracting; d) Procurement under United Nations Agencies; e) Community Participation Procedures (for Community-Driven Development, CDD); and f) Force account. 28. Procurement of works. Works contracts will be limited to small value works estimated to cost less than US$200,000 per contract; these could be procured under the Shopping procedures based on comparing price quotations obtained from at least three qualified and eligible contractors. The invitations will include bills of quantities and a statement requiring minimum qualifications, evaluation and award procedures. Contracts will be on a lump-sum, fixed price basis. 29. Consulting services. Particular methods of procurement for consulting services will include, in addition to Quality and Cost-Based Selection (QCBS): a) Quality-based selection (QBS) b) Fixed-budget selection (FBS) c) Least-cost selection (LCS) 59 d) Selection based on the consultant's qualifications (CQS) e) Single-source selection for firms (SSS) f) Individual Consultants (IC) g) Single-source selection for IC (SSS) 30. Schedule for consulting services. Selection of consultants for monitoring and evaluation, external verification of results, financial audits, NGO/Community-based Organization services and other consultants will be carried out in accordance with the Bank Consultant Guidelines using methods indicated in 5.3. Prior review will be required for all competitive firm selection above US$200,000 and all single source selections. Any selection which may by exception be subject to prior review by the Bank will be identified in the procurement plan. For individual consultants, the prior review limit will be for contracts estimated at US$100,000 and above (for competitive selection) and for all sole source selection. 31. Note on capacity building, training, and workshops: All training will be based on an agreed training plan that will be prepared by WWF-Zimbabwe and approved by the Bank and will include at least the justification of the training identified and the capacity gap, the intended trainees, the name of the training provider, the date and the eventual cost of training. After the training, the beneficiaries will be requested to submit a brief report indicating what skill have been acquired and how these skills will contribute to enhance his or her performance and contribute to the attainment of the project objective. The training plan will be prepared and submitted once a year and updated as required. 32. Operating costs. For this project, the Bank has agreed with WWF-Zimbabwe that the procurement methods for works, goods and non-consulting services as described in the Procurement Guidelines do not have to be followed for payments made for operating costs arising from the implementation of the project. Instead, the Bank has assessed during appraisal WWF-Zimbabwe's and the Government's own procurement procedures for these expenditures and agreed that these procedures are adequate for procuring items for operating costs. The operating costs include recurrent costs (excluding purchase of motor vehicles, computers, etc.) and typically include equipment rental and maintenance, vehicle operating costs, maintenance and repair, office rental and maintenance, office materials and supplies, utility costs (including electricity, water, and gas) communications (including telephone and internet charges) equipment rent, operation and maintenance and cost of banking services (bank charges), travel cost and transport of the staff associated with project implementation, per diem and travel costs for project staff; reasonable bank charges; allowances and salaries of contractual staff (but excluding the salaries of the Recipient's civil servants). The Project Appraisal Document (PAD) and the Grant Agreement will include a list of the eligible items to be covered under the project. These items will be procured using the participating Government agency's administrative procedures or those of WWF- 60 Zimbabwe, which have been reviewed and found acceptable to the Bank. Contracts for these items should not be included in the procurement plan. Environmental and Social (including safeguards) 33. The proposed project is considered an environmental category "B" project since the anticipated impacts will be small scale, site-specific, and can be mitigated. There will be no large scale, significant, or irreversible impacts. Overall impacts will be net- positive. The project triggers six safeguard policies: Environmental Assessment (OP 4.01), Natural Habitats (OP 4.04), Forests (OP 4.36), Physical Cultural Resources (OP 4.11), Indigenous Peoples (OP 4.10), and Involuntary Resettlement (OP 4.12). 34. From an environmental standpoint, the main issues include: (a) subproject investments in the HNP and in the forest reserves (such as buildings, track maintenance, fire breaks, etc.) could have minor impacts; (b) water hole management investments if poorly implemented could potentially result in depletion of groundwater resources (the project itself will be supporting development of groundwater management strategies); (c) the community livelihood investments under Component 2 could involve minor impacts; and (d) land degradation subprojects could involve minor impacts. 35. To address potential environmental and social issues under the project, the Recipient has prepared an Environmental and Social Management Framework (ESMF). The ESMF describes the various steps of the environmental and social management and monitoring required by this project - from subproject screening to implementation, monitoring and supervision - along with a clear description of the roles and responsibilities of the various entities involved in the project management of safeguard issues. 36. The ESMF provides steps for screening subprojects, outlines procedures for preparing, reviewing, clearing, disclosing and monitoring subproject-specific Environmental and Social Impact Assessments (ESIAs) or Environmental and Social Management Plan (ESMPs), whichever is applicable, in accordance with the screening process. The ESMF includes cost estimates for the safeguards work and these costs are included in project budgets. 37. With regard to social safeguards, there will be no acquisition of land, or negative impacts on assets, resulting from this project. However, the Involuntary Resettlement Policy has been triggered as the project could result in some restrictions of access to natural resources - minimizing illegal harvesting of natural resources and poaching. A Process Framework (PF) has been prepared which will focus on how the project can include communities in conserving park resources and benefitting from park activities. 38. A small area outside of but adjacent to the southeast corner of the HSBC is home to Indigenous Peoples, members of the San people (commonly known as Bushmen). The project will not finance subprojects within the San territory. The Indigenous Peoples Policy, however, has been triggered as some project interventions may have some impacts on the indigenous population, specifically Component 3, Corridor 61 Sustainability and park management activities under Component 1. It is expected these impacts would be positive. Component 3 activities include mapping of land use patterns within the corridor to enable development of a strategy for better landscape-based management of HSBC resources. This component will also implement a communication strategy for HSBC and outreach activities. 39. Although the location of the San are known, as well as the HSBC boundaries, an Indigenous Peoples Planning Framework (IPPF) was prepared as it is not known which activities will be relevant to the San until project research, studies, designs, and strategies are completed. Once it is determined how to involve communities throughout the corridor area, an Indigenous Peoples Development Plan (IPDP) will be prepared to ensure project interventions will allow the San to participate and benefit from project activities in ways which are culturally appropriate. 40. Institutionally, overall coordination of the project's implementation of applicable national environmental and social laws and regulations and World Bank environmental and social safeguards policies and procedures will be the responsibility of WWF. The implementing agencies, EMA, PWMA, FC, and MoEWC, will each, in accordance with their area of responsibility under the project, be responsible for the implementation of safeguard measures. 41. Reporting on the implementation of environmental and social safeguards provisions will be provided to the Bank as a part of the biannual progress reports. Safeguard compliance will be verified during World Bank project supervision missions, which will include environmental and social safeguard experts. Public Consultation and Disclosure 42. The preparation of the safeguard documents followed a broad-based and in-depth consultation approach that involved interviews and surveys of relevant project stakeholder groups, including, but not limited to: rural district councils, traditional leaders, CAMPFIRE, private sector, PWMA, EMA, FC, MoEWC, district administrators, Ministry of Lands and Rural Resettlement, Ministry of Women Affairs Gender and Community Development, Ministry of Youth Development Indigenization and Empowerment, and the Department of Public Works. 43. The consultation approach was based principles of inclusivity, openness, and transparency. The local leadership and community members were consulted through a meeting and an individual questionnaire administered to each of the participants. The Government departments were consulted through a questionnaire that was augmented by follow-up discussions. Newspaper notices were also placed in the local dailies to capture submissions from a wide range of stakeholders. 44. The main issues that stakeholders raised were related to project design, implementation, and monitoring. These and other issues have been accounted for in the ESMF and are reflected in the project design. They included, among others: 62 * Community participation in wildlife management. * Use of indigenous knowledge systems in wildlife management. * Implementation of deterrent offenses for poachers. * Arrangement for grazing land in protected areas. * Joint fire management with community. * Funding of community income generating projects as way to curb poaching. * Youth involvement in conservation. * Involvement of traditional leaders in the HSBC project. * CAMPFIRE activities should be enhanced as mitigation for HWC. * Involve traditional leaders in the HSBC project. * Provision of adequate water supply to wildlife as means to avoid their movement out of protected areas. * Direct compensation from PWMA should be considered for losses incurred by community from HWC. * Network with community in anti-poaching strategies. 45. Disclosure of the project safeguard documents (ESMF, IPPF, and PF) has taken place in-country. The documents were disclosed on January 21, 2014 on the WWF website and made available in the publicly accessible WWF library. On January 24, 2014 they were also disseminated on the websites of ECA, FC, and CAMPFIRE. They have also been disclosed at the Bank's InfoShop. The review and disclosure procedures applicable to subproject investments are described in the ESMF. Monitoring & Evaluation 46. Project monitoring and evaluation (M&E) will serve to: (a) monitor and report on implementation progress as agreed in annual work plans and related budget plans, (b) proactively identify implementation gaps over the course of the project implementation that require corrective actions, and (c) assess and report on achievement of planned outputs, outcomes and impact as per Results Framework established for the project (Annex 1). WWF-Zimbabwe will have the responsibility for the overall M&E system and will additionally need to provide technical assistance and capacity building to government agencies responsible for M&E in their particular sectors. The PIM will include a section with detailed information on the indicators - their meaning, how to collect data, and how to interpret the results. 63 64 Annex 4. Operation Risk Assessment Framework (ORAF) Zimbabwe: Hwange-Sanyati Biological Corridor Project (P124625) Stakeholder Risk Rating High Risk Description: Risk Management: Stakeholder expectations are high for the project as it has WWF as the project executing agency will need to continue to manage been under preparation for several years. However, expectations. Close consultation with relevant stakeholders will be important to because of the limited resources available and the ensure their continuous support. Awareness building and communication activities relatively few focus areas for subproject investments, it supported by the project will help address the issue. Members of the Steering will not be possible to fulfill the expectations of many Committee will be called upon to address their respective constituencies. local NGOs and community-based groups. Communities may continue with unsustainable practices such as wildlife The project through participation of communities will identify alternative poaching in many parts of the HSBC. However, the livelihood activities that will ensure there is buy-in by the communities. experience of CAMPFIRE has shown that communities can become partners in conservation and lessons learned Date F from this experience will be utilized in addition to D awareness building and educational activities. A new Client Not Yet Implementation CONTINUOUS Minister has been appointed to an expanded MoEWC. To Due ensure consensus still exists vis-A-vis this project, all parties concerned will work to provide transparent information about the project at the earliest convenience to the new national Ministerial counterparts. Capacity Rating High Risk Description: Risk Management: WW/F does not have expertise in all of the project focal The institutional coordination mechanisms, such as the Steering Committee, will be areas, particularly in sustainable land management. In the important to allow WWF to complement its expertise with that of specific government agencies and for the government agencies to communicate and other two focal areas, WWF has relevant experience in collaborate with each other. Zimbabwe. The capacity of the various government Resp: Status: Stage: Recurrent: Due Frequency: 65 agencies (PWMA, FC, EMA) with oversight responsibility Date: for different project components and subcomponents is Client Not Yet Implementation CONTINUOUS however relatively low and represents a risk. The Due complexity of the institutional arrangements with multiple organizations involved brings the risk of poor Risk Management: coordination. The low capacity of various project stakeholders will be directly addressed by substantive capacity-building investments planned under the project. Resp: Status: Stage: Recurrent: Due Frequency: Date: Client Not Yet Implementation CONTINUOUS Due Governance Rating High Risk Description: Risk Management: The complicated multi-institutional governance structure Legal agreements will help to define the role of the Recipient (the Government of of the project brings risks of lack of coordination or Zimbabwe) and of the Project Implementing Entity (WWF-Zimbabwe) and further unclear institutional mandates. There are also serious information on the project governance structure will be included in the Project natural resources governance issues (due to lack of Implementation Manual. The Project includes a provision for a Project Steering capacity, knowledge, unclear institutional mandates) Committee. Regular meetings of the Steering Committee will help ensure fluid which the project is in part designed to tackle. communication and coordination between different stakeholders. Resp: Status: Stage: Recurrent: Due Frequency: Date: Client Not Yet Implementation CONTINUOUS Due Risk Management: Project audits will be a powerful tool to regularly ensure that the use of funds is consistent with that which is described in the Project Implementation Manual and various project legal agreements. Resp: Status: Stage: Recurrent: Due Frequency: Date: Client Not Yet Implementation Yearly Due Design Rating High 66 Risk Description: Risk Management: The riskiest part of the project design relates to the land The project itself will devote resources to the development of new management degradation component because of the issues that are models and to training and capacity building. International expertise will be sought related to different soil types, lack of land management for some areas, such as land erosion management. models, and inherent complexity of land erosion and gully Resp: Status: Stage: Recurrent: Due Frequency: formation. Generally, the institutional and technical Date: complexity of the project is certainly risky, but was unavoidable in order to design a project consistent with Client Not Yet Implementation CONTINUOUS four different funding windows of the GEF. Due Social and Environmental Rating Moderate Risk Description: Risk Management: This project triggers multiple social and environmental Both the IPPF and the PF have already been developed and have been consulted safeguard policies. The risks of adverse environmental and disclosed locally. During project implementation, it will be important to impacts are low but on the social side, it will be important monitor compliance with the frameworks. to carefully implement (and monitor implementation) of Resp: Status: Stage: Recurrent: Due Frequency: the Indigenous Peoples Planning Framework and the Date: Process Framework. Client Not Yet Implementation CONTINUOUS Due Program and Donor Rating Moderate Risk Description: Risk Management: Overall risk is moderate due to a lack of recent donor The project Steering Committee will help ensure coordination between different experience/involvement in this sector in Zimbabwe. There donors. The Bank is also a part of an active multi-donor coordination effort and can is a risk that donor intervention is not coordinated and directly coordinate with donors as needed. could result in duplication of activities. The risk is minimized however by the simple fact that there are Date F presently relatively few donors or international NGOs active in Zimbabwe in the specific focus areas of the Both Not Yet Implementation CONTINUOUS project. Due Delivery Monitoring and Sustainability Rating Moderate Risk Description: Risk Management: Assuming deployment of a good M&E system there will One expected output of the project will be preparation of fundable projects as a be relatively few risks associated with delivery follow-on of this project - that will help to ensure sustainability of key project monitoring. The sustainability of the project outcomes is results. Component 3 outcomes include a number of initiatives to develop corridor- however fraught with risk due to the uncertainty of longer- wide models and approaches which if successful, will be key to sustainability. 67 term financing and the ambitiousness of developing Resp: Status: Stage: Recurrent: Due Frequency: corridor-wide strategies for such a large swath of the Date: country. Client Not Yet Implementation CONTINUOUS Due Overall Implementation Risk: Rating High Risk Description: The overall project risk is rated as High due to risk at the country and sector levels, in capacity, governance, design, and sustainability. 68 Annex 5: Implementation Support Plan ZIMBABWE: HWANGE-SANYATI BIOLOGICAL CORRIDOR PROJECT Strategy and Approach for Implementation Support 1. The World Bank as the implementing agency on behalf of the GEF will provide implementation support to WWF-Zimbabwe and the project partners. As a major international NGO, WWF will also provide implementation support from its own international network. Implementation Support Plan 2. The following tables provide the World Bank implementation support plan, including the skills mix required. Time Focus Skills Needed Resource Partner Role Estimate (US$) First twelve Project start-up, Procurement, 75,000 WWW will bring months project administration disbursements, to bear issues, start-up of FM, park international level technical studies management TA to prepare expertise detailed technical start-up TORs 12-60 months Oversight of project Parks management, 300,000 As above. administration and land degradation, implementation of forestry, social technical activities; safeguards M&E Skills Needed Number of Staff Number of Comments Weeks Trips Biodiversity specialist 20 SW 10 Team leader can play this role and also address issues related to corridor development Land degradation 10 SW 2 Region-based specialists are available specialist Forestry specialist 5 SW 2 Social safeguards 5 SW 2 Oversight needed of IPPF and PF specialist Environmental 4 SW 1 Oversight of implementation of ESMF safeguards specialist Procurement 10 SW (total over 5 3 Specialist is based in Lusaka years) Financial Management 10 SW 0 Specialists is based in Harare Disbursements 5 SW 0 Specialists are based in Nairobi Legal counsel 4 SW 0 Support may be needed for interpretation of legal agreements and for amendments, if needed 69 Annex 6: Economic Analysis ZIMBABWE: Hwange-Sanyati Biological Corridor Project A. Development Impact 1. Calculating an economic rate of return in the context of a cost-benefit analysis for this project would not adequately capture the project's value. The project does not lend itself to a quantitative cost-benefit analysis for the following reasons: a. The incremental economic benefits of the park management activities are difficult to assess; a baseline of such activities exists, but the quantification of their benefits poses challenges. Research and monitoring, for example, do not have a productive function, and an attribution of their contribution to the overall management of the park is not possible. Moreover, the primary project outcome will be better park protection. The project's incremental contribution to existing ecosystem services and their economic revenue-generating streams is difficult to assess. In addition, several such services - such as biodiversity - do not have a quantifiable productive function. b. The economic benefits of significant portions of the project - including capacity building, training, studies, and Component 3 activities - are difficult to quantify. 2. Nevertheless, it is possible to qualitatively outline the project's expected stream of economic benefits. The following sections consider those benefits for each component. 3. Component 1: PA management and community livelihoods: a. Improved park management is expected to help safeguard and potentially expand the tourism potential of Hwange National Park, with attendant benefits to be derived from additional tourism income. Attributing increased tourism numbers to improved park management is difficult however, as tourism numbers are sensitive to a range of factors beyond the park's control: the country's political climate, access infrastructure, and economic conditions in other countries. b. Improved community livelihoods through wildlife management are expected to reduce the economic losses local communities face due to human-wildlife conflict. Improved community access to the economic benefits of wildlife will be realized through trophy hunting quotas and resultant employment generation and revenues for infrastructure projects. The extent of these income streams will be assessed during the project and cannot be easily estimated at this time. However, CAMPFIRE has demonstrated that, in the twelve districts in which it operates, combined revenues from sport hunting, tourism, the sale of animal products, and other income-generating activities can reach up to US$4.6 million annually25. 4. Component 2: Improved forest and land management 25 Data from http://www.campfirezimbabwe.org/index.php?option=com_content&view=article&id=56&Itemid=63. 70 a. Improved forest management will lead to improved regulation of ecosystem services such as watershed and soil protection. Improved biodiversity conservation and wildlife habitats can result in increased tourism potential, as well as positive spillover effects for agriculture. A more sustainable stream of commercial non-timber forest products such as honey, mushrooms, edible insects and indigenous fruits provides potential for increased income streams, substitution of existing food products, and improved diets (the project's forest reserves are not commercially producing timber). Attribution to individual forest management activities, however, is not possible, as the activities are manifold and only achieve an impact in the aggregate. Meanwhile the stream of benefits generated depends not only on the success of the project activities, but also on a variety of factors outside of the project's control (including the physical, investment, and political climate). National capacity building on REDD+ will increase Zimbabwe's ability to access carbon finance. There remain however numerous intervening steps between the delivery of capacity building and the actual realization of income streams from carbon finance, and the latter is undoubtedly many years in the future. b. Land rehabilitation is expected to reduce the maintenance and construction costs of infrastructure (e.g. the Chireya hospital) and improve attendant continued benefits derived from infrastructure (health services in case of the hospital, eased transportation in case of roads, etc.). An accounting of these benefits will necessarily remain incomplete before the completion of the land management model that will determine the target area's rehabilitation potential and investment needs. 5. Component 3: Corridor sustainability a. The improved governance and coordination arrangements that will be the outcome of this component's activities will help ensure the stream of revenues that are derived from the HSBC overall, which includes ecosystem services, many of which are intangible or difficult to measure, such as water provisioning, protection against land degradation, biodiversity conservation, etc. B. Public Sector Rationale 6. Component 1: PA management and community livelihoods: a. Sub-component 1.1: Improved management of Hwange National Park: Conservation of Zimbabwe's rich biodiversity resources is insufficient in the absence of public investment, a reality that results from a set of market failures. First, there is only limited market value attached to the financial flows that the HSBC generates. Thus, the corridor primarily generates local public goods in the form of ecosystem services. Second, the positive externalities of conservation - the corridor's total economic value - are not priced into the financial streams the HSBC generates. Third, Zimbabwe's tenuous fiscal situation, its investment climate, and the limited public funding which PWMA receives lead to an under- 71 provision of investment by private entities. And last, the biodiversity in the HSBC constitutes a global public good that the government can only imperfectly safeguard without external assistance. The global public good character of the area stems primarily from its biodiversity (possible future provisioning services, option and nonuse values) and its role in carbon sequestration. b. The current financing model for the PWMA, which does not receive government transfers but instead manages its national parks by commercializing its operations, illustrates the under provisioning of the public good that is biodiversity conservation. Available resources for national park protection and development for Hwange National Park are about US$10/kn2, one twentieth of the level in 1980, and one two-hundredth of the benchmark level of a well-financed park such as Kruger National Park in South Africa. c. Sub-component 1.2: Improved community livelihoods through wildlife management: Given that Hwange National Park is a publicly owned and operated entity, the government bears responsibility for managing the protected area's relationship with local communities and minimizing the negative externalities that result from the park due to human-wildlife conflict. The intervention will also better align incentives for communities to protect the natural resource that the area's wildlife represents, creating a market for the safeguarding of the resource where none exists to date. 7. Component 2: Improved forest and land management a. Sub-component 2.1: Improved forest management: The target areas are publicly owned gazetted forests, which the government is intent on better managing. This will have positive externalities on private economic activities in the forests. The forests provide ecosystem services, including water provision (effectively a local public good due to the lack of controlled, fee-based access to water in rural Zimbabwe), and carbon storage, a global public good. Improving forest management will also help correct government failure that has resulted in poor management, and will improve government service delivery. b. Sub-component 2.2: Land rehabilitation: Addressing land degradation in Chireya Ward will address negative externalities associated with individual land use decisions that currently result in further degradation, reducing available farm land and threatening infrastructure. It will also contribute to correcting the government failure that has resulted in a lack of oversight of land management practices that have led to the advanced state of degradation presently encountered. 8. Component 3: Corridor sustainability a. The activities proposed in this component do not lend themselves to private sector provision. Their completion will create positive externalities for communities though the better management of the HSBC that will result from the activities. 72 C. World Bank Added Value a. The World Bank's value-added arises from four main sources: i) The World Bank's experience in supporting protected area management spans several decades, and the Bank is able to draw on the lessons it has learned from its work in this domain around the globe. ii) The World Bank is actively supporting the development of the Kavango-Zambezi Transfrontier Conservation Area, which has provided it with knowledge of the local context. iii) The World Bank has successfully implemented landscape management projects in countries such as Rwanda, Ethiopia, India, and China, and can draw on its expertise in this area to bring together the various elements required to create the conditions necessary for the successful negotiation of land uses in the HSBC. iv) Due to its convening power, the World Bank can draw on a rich array of external expertise to inform its support to the project. 73 Annex 7: Incremental Costs Analysis ZIMBABWE: HWANGE-SANYATI BIOLOGICAL CORRIDOR PROJECT Background Context 1 The Hwange-Sanyati Biological Corridor is a globally important biodiversity reservoir (see Annex 8) and also is home to a large human population, particularly dependent on the corridor's natural resources - its biodiversity, forests, and land resources. The HSBC is however under threat from a number of perspectives. The biodiversity of the corridor, particularly in the Hwange National Park, is subject to heavy poaching and there are concerns about the long-term viability of key faunal populations, especially elephants, due to the absence of groundwater management strategies. The forests of the HSBC are suffering from timber poaching, forest fires, animal poaching, and outright conversion to agriculture or other land uses. There are a number of soil types in the HSBC but the principal types are sodic and very vulnerable to erosion and gullying and not well understood with respect to good management. 2. Climate change is already having important impacts on rainfall and precipitation patterns and it is considered likely these impacts will become more severe, bringing an additional layer of complexity to the efforts to manage the HSBC. 3. The particular confluence of issues relating to biodiversity, land degradation, forests, and climate change are at the root of this project's request for funding from the GEF from the four funding windows corresponding to these areas. Fit with GEF Strategic Priorities 4. The project uses an integrated landscape/ecosystems approach in a specific geographic area (Hwange-Sanyati Biological Corridor -- HSBC) within Zimbabwe and thus, will be developed as an integrated multi-focal area project combining several GEF strategic focal area objectives. The project is a cross-cutting proposal that is consistent with the GEF Biodiversity (Objectives 1), Climate Change (Objective 5), Land Degradation (Objective 3) and Sustainable Forest Management/REDD (Objective 1). Linkages are detailed in this annex. All focal areas will contribute to increased capacity to manage sustainable land, forest and biodiversity and enhance public awareness about the values of these resources. 5. Under Biodiversity focal area: the project supports the conservation and sustainable use of biodiversity by strengthening the management of the Hwange National Park and its buffer area with GEF funding, as well as other national parks within the HSBC with co- financing resources. 6. Under Land Degradation focal area: the project will contribute to developing tools for arresting and reversing current trends in land degradation in the Sanyati catchment area (Chireya Ward) and investing in pilot demonstration activities. 74 7. Under Climate Change focal area: the project supports the development of good management practices in land use, land use change, and forestry (LULUCF) in the forest land and wider landscape aiming at promoting forest conservation, and reforestation and sustainable forest management (SFM). It will also strengthen local environmental committees dealing with issues on local climate change issues and will provide capacity building at a national level. 8. Under the Sustainable Forest Management/REDD+ focal area: the project will support the reduction of pressures on the remaining forests of the HSBC by developing SFM tools and testing and adopting them in pilot areas as well as by implementing better forest management in two target forest reserves. The project will build national capacity in REDD+. Project approach Baseline Scenario Ongoing government programs and existing donor-supported activities: 9. The baseline scenario is constituted by a number of initiatives and projects as well as ongoing government programs that are tackling the major environmental issues facing the HSBC, as outlined above. These investments constitute the co-financing for the project. They are a mixture of grant and in-kind contributions. They are presented here in three groups - programs administered through the World Bank, GoZ programs, and other initiatives. The table at the end of this annex indicates with which specific component each co-financing is associated. 10. Investments through the World Bank. Two World Bank-funded programs are part of the baseline: a) A grant from the multi-donor trust fund (MDTF) for Cooperation in International Waters in Africa (CIWA) for US$4 million for which the recipient is the Zambezi Watercourse Commission (ZAMCOM). ZAMCOM is currently moving their Secretariat to Zimbabwe and the grant is expected to become operational in 2014. The PDO for this grant is "to strengthen ZAMCOM's role in promoting cooperative management and development within the Zambezi River Basin through institutional strengthening, improved information sharing and decision support and strategic planning". The main activities to be supported are institutional development of the ZAMCOM Secretariat, development of a Zambezi Water Information Management System, and strengthening strategic planning in the Zambezi River basin. These objectives are highly aligned with those of the HSBC and a close relationship will be maintained between the HSBC project and ZAMCOM. b) A grant of US$250,000 from the TerrAfrica Leveraging Fund (financed by multiple donors including Norway, France, the Netherlands, and the European Union) which will be constituted as a Bank-executed trust fund. The funds will be used to support Component 2 on forestry and land management, to bring in international expertise to supplement that of EMA. 75 11. GoZ investments. The Government is investing resources to address the key problems of the HSBC through a number of government organizations, all implementing agencies under the current project. Considered as in-kind resources, the baseline funding includes: a) Development of the overall vision and strategic plan for the HSBC supported by the Ministry of Environment, Water, and Climate Change (MoEWC) in collaboration with local governments. These investments include those to improve the attractiveness of the region to tourists by provision of basic infrastructure such as roads and incentives for private sector development. In-kind financing of US$4.2 million over 5 years. b) Development of baseline maps and monitoring systems for land degradation for the project area supported by the Environmental Management Agency (EMA). In addition EMA is investing in soil analysis and studies in conjunction with the University of Zimbabwe looking at the root cause of land degradation. In-kind financing of US$2.885 million over five years. c) Investments to support the management effectiveness of the national parks within the HSBC by the Parks and Wildlife Management Authority (PWMA), including updating of the management plan and enforcement activities. In-kind financing of US$3.38 million over 5 years. d) Investments of the Forestry Commission in management of the HSBC forest reserves including fire control, updating and implementation of management plans, control of poaching and maintenance of close relationships with local communities. In-kind financing of US$2.75 million over 5 years. 12. Other investments. A final set of baseline co-financing is provided through non- governmental organizations or through the private sector. These include: a) Grant funding coordinated by the Southern African Development Community (SADC) of US$550,000 in support of KAZA TFCA, but implemented through the Government of Zimbabwe. Some KAZA TFCA projects have already launched (several supported by WWF) while others are expected to be funded and implemented during the period of the HSBC Project. The co-financing of US$550,000 is estimated as the co-financing that will be provided by KAZA TFCA projects during the lifetime of the HSBC and which are specifically supportive of conservation investments in Zimbabwe. b) CAMPFIRE Association, one of the project partners, has programs in the HSBC which have been under implementation for almost two decades (development of alternative livelihoods, support to community-managed hunting areas, etc.) and which are complementary to the planned investments under the GEF. In-kind co-financing of US$200,000 over 5 years. c) Safari and lodge operators (private sector). The community-managed hunting areas supported by CAMPFIRE Association function in collaboration with private hunting safari operators. Private sector tourism operators also are critical for bringing in tourists to Hwange National Park and to other national parks in the HSBC. Their substantial 76 investments are part of the baseline financing which is needed to sustain and develop a healthy ecotourism market in the HSBC. Although difficult to quantify and subject to some future variability that is a function of trends in the global and national tourism industry, their in-kind co-financing is estimated at US$3.45 million over 5 years. Because of the difficulties of predicting at project start-up which companies will invest and because of confidentiality issues, no co-financing letters are being provided for the private sector support. This co-financing will be carefully tracked during project implementation. d) Finally, the World Wildlife Fund, the executing agency on behalf of the GoZ, itself will bring resources to bear on the key environmental issues facing the HSBC, and which will be complementary to the GEF. These resources include a substantial contribution already made by WWF for the project supporting its preparation over a two-year period when GEF preparation resources were not available. They also include grant funding for which WWF is currently fund-raising or for which they are planning to use their own resources. The total estimated co-financing over the next 5 years is estimated to be US$1.5 million. GEF Alternative Project Development Objective, incorporating Global Environmental Objective (GEO): 13. The joint PDO/GEO of the HSBC project is "to develop land use and resource management capacity of managers and communities in the Hwange-Sanyati Biological Corridor (HSBC)". GEF-financed activities 14. Component 1: PA management and community livelihoods. The aim of this component is to improve management of the Hwange National Park and the livelihood of communities involved in stewardship of the natural resources in the buffer area of the HNP. The component will focus primarily on Hwange and Tsholotsho Districts, the only districts in the HSBC that share boundaries with HNP. While the project area encompasses three national parks (Hwange, Chizarira and Matusadona) and Chete and Chirisa safari areas, the project's main focus will be on HNP's ecosystem as it is a biological reservoir for most of the wildlife found in the corridor. 15. Component 2: Improved forest and land management. The aim of this component is to improve forest and land management across the HSBC through investments and by developing tools to address land degradation, land use change, and deforestation. 16. Component 3: Corridor Sustainability. Under this component, WWF and the participating governmental institutions will work together to ensure close coordination and synergy between the different components and project activities, to promote better development planning and coordination at the wider landscape level of the HSBC, and to facilitate corridor-level scaling-up of land management and biodiversity conservation tools and initiatives. 77 Incremental and Additional value added by GEF funding 17. Table 1 (the Incremental Cost Matrix) provides a brief narrative summary of the incremental global benefits to be expected under the GEF Alternative. The GEF investment will specifically add value in terms of the following quantifiable results: a) 1.465 million ha of protected areas under improved management as a result of the investments in Hwange National Park under Component 1. b) 157,300 ha of forest reserves under improved management as a result of the forest management investments (plans, fire control, poaching control, etc.) in the forest reserves adjacent to HNP. c) A baseline estimate was made that the amount of carbon sequestered in the forest reserves is about 50 tC/ha (see Annex 2 for further details). The final project design does not target an increase in carbon sequestration but aims to maintain existing carbon stocks, an ambitious goal given declining stocks due to timber poaching, encroachments, and poor forest and fire management. The estimated amount of avoided carbon loss in the forest reserves is 2.5 tC/ha, or about 393,000 tC or 1.141 million tCO2-equivalent. Carbon tracking tools will be developed and used during the project to quantify historical carbon levels and tendencies during the project. Incremental Cost 18. The baseline cost (Table 1) for activities that are co-financing the HSBC Project is US$22.565 million and the GEF alternative is estimated at US$28.81 million, resulting in an incremental cost assumed by the GEF of US$5.645 million (in the table below, the management costs are not included, resulting in slightly different totals from Table 2). Table 1: Incremental Cost Matrix Estimated Component Category Expenditures Local Benefit Global Benefit (US$ millions) Sustaining HNP provides ecotourism benefits to local communities, the national Baseline GoZ: 4.08 government, and to private PrtcigHPpoes Baseline GoZ: 4.08 oer ato globally important biodiversity, scenario Others: 4.15 co ieihood including one of African's most 1. P Comuniy lveliood important elephant populations. management investments of CAMPFIRE and Association benefit local community communities. livelihoods GEF financing for HNP GEF financing will help to GEF GEF: 1.795 and for community ensure long-term sustainability alte GoZ: 4.08 livelihood projects will of HNP and thus one of the most Others: 4.15 generate some local important faunal reservoirs of benefits, as noted above. southern Africa. Increment 1.795 2. Improved Investments in forest Global biodiversity benefits forest and land selin OZ: 55 management and land result from the better management degradation control benefit management of forest reserves 78 communities depending on adjacent to and biologically the forest reserves and linked to HNP. populations living on fragile sodic soils of the HSBC. Enhanced protection of the forest reserves will result in GEF financing will bring incremental protection of the EF GEF: 3.24 incremental local benefits globally important biodiversity as noted above, particularly of the HSBC. Improved forest alternative OZher: 0.55 for communities that will management will help sequester Others: 0.55 benefit from pilot gully carbon, bringing about a global control measures, benefit of reduction in atmospheric carbon dioxide levels. Increment 3.24 SADC baseline financing for Loca beefit ted tobe maZaemenat ie eueste somewhat intangible butat aloa promoting KAZA TFCA sustain biological flows across Baseline GoZ: 3.185 ea ethis multi-country area. Funding scenario Others: 4.85 itatvey ad a e from the CIWA MDTF help sustain watershed level planning tin the large multi-country area local benefits of the Zambezi basin. 3. CordrGEF financing will help further Coridoi the KAZA TFCA, consolidating tglobal biodiversity benefits as GFGEF: 0.335 Incremental local benefits noted above. The development aelie GoZ: 3.185 from the GEF financing are mlo a di scenaio Others: 4.85 minimal, management and the promotion of long-term approaches for the HSBC will bring benefits extending beyond the boundaries of Zimbabwe. Increment 0.335 Baseline GoZ: 13.015 As noted above. tscenario Others: 9.55 Increenta(locllbeefit Project GEF GEF: 5.37 maaeet Atraie GoZ: 13.'015 As noted above. costs)Others: .5 Increment 53 Role of Co-financing Table 2 on the next page provides a breakdown of how the project financing and co-financing is distributed by component. 79 80 Table 2: GEF Alternative - Funding sources by components (US$ millions) Note: GEF windows are Biodiversity (BD), Sustainable Forest Management/REDD+ (SFM), Climate Change (CC), and Land Degradation (LD). Private sector in this table refers to participating safari and lodge operators. The more detailed disaggregation of GoZ co-financing appears in table on the next page. Components GEF GEF GEF CC GEF GEF SADC CIWA TerrAf GoZ CAMP Private WWF Total BD SFM LD (Total) MDTF rica FIRE Sector 1. PA 0.2 3.45 0.5 management and 1.795 1.795 4.08 10.025 community livelihoods 2. Improved 0.3 forest and 1.2 0.4 1.64 3.24 0.25 5.75 9.54 land management 3. Corridor 0.55 4.0 0.3 sustainability 0.335 0.335 3.185 8.37 4. Project 0.4 managemt .095 .06 .04 0.08 0.275 0.2 0.875 management Total 1.89 1.26 0.775 1.72 5.645 0.55 4.0 0.25 13.215 0.2 3.45 1.5 28.81 81 Components MoEWC EMA FC PWMA Total 1. PA management and 3.38 4.08 community livelihoods 2. Improved forest and 1.0 2.0 2.75 5.75 land management 3. Corridor sustainability 2.3 0.885 3.185 4. Project management 0.2 0.2 Total 4.2 2.885 2.75 3.38 13.215 82 Annex 8: Biodiversity Context ZIMBABWE: HWANGE-SANYATI BIOLOGICAL CORRIDOR PROJECT Kavango-Zambezi Transfrontier Conservation Area (KAZA TFCA) 1 The Hwange-Sanyati Biological Corridor Project area should first be situated within the biological context of the The Kavango-Zambezi Transfrontier Conservation Area (KAZA TFCA) in order to understand its biodiversity importance26. The KAZA TFC is poised to become the world's largest terrestrial conservation area, spanning five southern African countries; Angola, Botswana, Namibia, Zambia and Zimbabwe, in the latter centred around the Caprivi-Chobe-Victoria Falls area (see map at end of this report). 2. The TFCA includes most of the Okavango River Basin, connecting that ecosystem to the Upper Zambezi River Basin. Migrations of a number of megafauna species and rare and endangered species occur within the TFCA making this an area of global biodiversity significance. For example, this area will be critical in Africa for the long term conservation of painted dog (or African wild dog) (Lycaon pictus), wattled crane (Bugeranus carunculatus), Nile crocodile (Crocodylus nilotica), and cheetah (Acinonyx jubatus). 3. Floristically, the TFCA has a moderately rich flora with relatively few endemics. Woodlands predominate dissected by grasslands; in the western part of the TFCA desert scrublands begin to appear. The woodlands are subdivided into Miombo woodland (characterized by Brachystegia and Julbernardia), Kalahari sand woodlands (characterized by Baikiaea), mopane woodland and Acadia woodland/bushland. Because of anthropic influences (clearing, fires, livestock grazing, etc.), some areas that were originally woodlands are now shrublands or wooded grasslands. Overly dense elephant populations in some areas have reduced the extent of natural woodlands. 4. The KAZA TFCA hosts one of the richest mammalian assemblages in southern Africa. It is home to about 40% of the entire population of African elephants, and is one of the only major areas where elephant numbers are stable or increasing. It has been an area of evolutionary radiation for a number of ungulate (notably lechwe) and other mammal species. Ornithologists have identified 12 Important Bird Areas (IBAs) in the TFCA and it his home to at least 17 bird species of global conservation interest. 5. The goal of the KAZA TFCA is "to sustainably manage the Kavango Zambezi ecosystem, its heritage and cultural resources based on best conservation and tourism models for the socio-economic wellbeing of the communities and other stakeholders in and around the eco-region through harmonization of policies, strategies and practices." 26 Information on the KAZA TFCA is summarized from the Secretariat's web site (www.kavangzambezi.org) and from the detailed prefeasibility studies carried out in 2006 by the Peace Parks Foundation, available on the web site. 83 6. The KAZA TFCA process evolved from previous transboundary initiatives but differs by being owned and led by the five governments and having a clear focus on conservation as the primary form of land use with tourism a provided environmental service. 7. On December 7, 2006 the Ministers responsible for environment, natural resources, wildlife and tourism in the Republics of Angola, Botswana, Namibia, Zambia and Zimbabwe signed a Memorandum of Understanding (MoU) to negotiate and work towards the establishment of the TFCA. The MoU will be repealed when the Treaty to formally establish the KAZA TFCA is signed by these partner countries. 8. The KAZA TFCA is expected to span an area of approximately 290,0002, almost the size of Italy and include no fewer than thirty six (36) formally proclaimed national parks, game reserves, forest reserves, game/wildlife management areas as well as intervening conservation and tourism concessions set aside for consumptive and non- consumptive uses of natural resources. 9. The KAZA TFCA was adopted as a Southern African Development Community (SADC) project in 2006. The SADC Secretariat draws its mandate to facilitate the establishment and development of TFCAs from a number of SADC instruments aimed at promoting regional socio-economic integration including several focused on shared management of biodiversity resources. Hwange National Park and HSBC 10. The HSBC hosts three national Parks (Hwange, Chizarira and Matusadona) and two safari areas (Chete and Chirisa). The map at the end of this report shows the distribution of the parks in relation to communal land, gazetted forest areas, and privately owned land. 11. The largest and biologically most important park in the HSBC is Hwange National Park (HNP). The park has tremendous biological importance not only nationally, being Zimbabwe's largest park, but globally. 12. Hwange National Park (HNP) has over 100 species of mammals including 19 large herbivores and 8 large carnivores. These include around 5,000 Cape buffalo (Syncerus caffer), about 50,000 African elephant (Loxodonta africana)27, giraffe (Giraffe camelopardalis), kudu (Tragelaphus strepsiceros), zebra (Equus burchelli), 400 lion (Panthera leo), leopard (Panthera pardus), brown hyena (Hyaena brunnea), wildebeest (Connochaetes taurinus), and a variety of other antelope species. Some of the species such as the rhino, both black (Diceros bicornis) with a current population of between 10-15, and the white (Ceratotherium simum), as well as the African wild dog (Lycaon pictus) with estimated numbers around 70, are endangered. It is also home to rare and endemic animal species such as the Gemsbok (Oryx gazelle). It has a prolific bird life 27 Jachmann, Hugh, 2013. Status report: African elephant, conservation issues and main actors. One of the most recent estimates of elephant numbers in Zimbabwe, this report indicates a range from 51,000 to 100,000 of which the vast majority are in HNP. The range in estimates is indicative of the uncertainty of current data. 84 with over 400 species which include the ostrich and the ground dwelling Kori bustard. It is also home to most of the vultures found in the country. 13. There is large variation in the types of vegetation found in HNP from mopane woodland and teak to open grasslands. The centre and western side of the park is covered by a mosaic of dry deciduous Baikiaea woodland (the best-developed such woodland in Zimbabwe) and a scrub of Terminalia and Burkea. The east has some Brachystegia woodland and perennial grassland with Acacia woodland on the edges. In the north-east there is deciduous mopane woodland and mixed Combretum/Terminalia shrubland. There are several large vleis or marshes that are dominated by grassland and drain into the main rivers of the park. Elephants play a key role in modifying vegetation in HNP; they can cause the growth of some trees to become stunted due to the physical effects of their destructive method of grazing. 14. In the forest reserves and other areas of the HSBC, Acacia woodland covers a significant portion of the Sikumi Forest and a small portion consists of Miombo and Baikiaea woodlands. The Ngamo Forest is mostly composed of Baikiaea woodlands. Dominant species include: B. plurijuga (Zambezi teak), Guibourtia plurijuga, Pterocarpus angolensis (Mukwa) and Afzelia quanzensis (Pod mahogany). The ecosystem in the other project areas like Binga consists mainly of Colophospermum mopane woodlands on all soil types. Mixed woodlands with key species such as Kurkia acuminata, Adansonia digitata, Cassia abbreviata, and Schlerocarcya caffira are common in this area. Riverine and alluvial woodlands include Acacia albida, Acacia tortilis, Acacia robusta, Ziziphus mucronata, and Combretum imberbe among others. 15. The following points summarize the globally important biodiversity features of HNP and the HSBC: a) It has globally important populations of a number of wildlife species. Although detailed inventories have not been undertaken in more than a decade, it is believed to harbor about 50,000 elephants (roughly 5 to 10% of the global population of African elephants), more than 5,000 buffalo, 10-15 black rhino, and 400 lion. b) The HNP is the faunal reservoir for the entire HSBC and for nearby areas of the KAZA TFC. Preliminary information is available on migratory routes of a number of species across the HSBC, including elephants. However, the routes are not well understood and require further research. c) It is an integral and indispensable part of the KAZA TFCA initiative, as discussed above. d) HNP is the source of animals that are sport hunted in the other nearby land use systems e.g. Gwai Intensive Conservation Area; and Tsholotsho, Hwange and Binga communal lands. e) HNP is home to the Bambusi National Monument, consisting of pre-colonial ruins and rock carvings. The site was declared a National Monument in 1946. 85 IBRD 40595 250E 27E 28'E E 30E1 ZIMBABWE HWANGE-SANYATI BIOLOGICAL ZAMBIA CORRIDOR PROJECT MASHONALAND HWANGE-SANYATI BIOLOGICAL CORRIDOR (HSBC)PROJECTAREABOUNDARY WESTPILOT STUDY AREAS Lake ariba PROJECT FOREST RESERVES Karoi LAND USE WITHIN HSBC PROJECT AREA: OatUSal0nSTATE LAND 17 5 .al OfI S 1COMMUNAL LAND FOREST LAND CONSERVATION AREA LAKE Chinhoyi NATIONAL PARK RESETTLEMENT AREA SAFARI AREA .E. KAVANGO-ZAMBEZI TRANS FRONTIER CONSERVATION AREA BOUNDARY Victia N MAJOR ROADS Fals / MAJOR RAILROADS 185 Livingstone 18' 0 CITIES ANDTOWNS ® IPROVINCE CAPITALS NATIONAL CAPITAL Hwa nge PROVINCE BOUNDARIES HwaKad OKadoma INTERNATIONAL BOUNDARIES KAlANGO-ZAMBEZI............... ONff This map was produced by the Map Design Unit of The World Bab. " Sanya . The boundaries, colors, denominations and any other iaformatioa shon on this map do not imply, on the part of The World Bank - GSDPMI Group, anyjudgment on the legal status of any territory, or any O E I19_ endorsement or acceptance of such boundaries. AREA e MATABELELAND 26E 280E 300E 32oE waneNan NORTHMOZAMBQUE MIDLANDS Area of map 16'S16 ZAMBIA MAMASHONALAN MASH-ONALAND CENTRAL , WEST B 0 TCen BinduSA MASHONALAND . ' EAST eHARARE 10 1802S 8 M roda MATABELELAND Lupane Mutate NORTH MIDLANDS MANICALAND GWeru - 20o5 200S 20S Bul,viSyo Gwanda, awao MATABELELAND Gwandae,AVIG 25 50 MilesSOUTH Zvishava ne, 21550Miles_Plumntree BOTSWANA MATABELELAND 220S SOUTH 22oS 0 25 50 KilometersMOZ A LE 25oE 261.E 270 28'E 291 30oE 26o 28E30E3o IL 26'EAPRIL2010o