Integrated Safeguards Data Sheet (Initial) Report No: AC126 Section I - Basic Information Date ISDS Prepared/Updated: 06/19/2003 A. Basic Project Data (from PDS) I.A.1. Project Statistics Country: SOUTH AFRICA Project ID: P075997 Project: Cape Action Plan for the Environment Task Team Leader: Christopher James Warner Authorized to Appraise Date: September 16, 2003 IBRD Amount ($m): Bank Approval: December 1, 2003 IDA Amount ($m): Global Supplemental Amount ($m): 9.32 Managing Unit: AFTES Sector: General agriculture, fishing and forestry Lending Instrument: Specific Investment Loan (SIL) sector (100%) Status: Lending Theme: Environmental policies and institutions (P); Biodiversity (P); Other environment and natural resources management (S) I.A.2. Project Objectives (From PDS): The overall goal of the 20 year national C.A.P.E. Program (C.A.P.E.) is that by 2024 the natural environment of the Cape Floristic Region (C.F.R) and adjacent marine environment will be effectively conserved, restored wherever appropriate and will deliver significant benefits to the people in a way that is embraced by local communities, endorsed by government and recognised internationally. (See Plan 1 below which shows the extent of the CFR) . There are two program development objectives requiring GEF support: Program objective 1: Capable institutions cooperate to develop a foundation for mainstreaming biodiversity in the CFR into economic activities. Program objective 2: Conservation of the CFR is enhanced through piloting and adapting models for sustainable, effective management Component Outcome 1. Institutional strengthening Enhanced strategic alignment of conservation activities and increased capacity of relevant institutions for integrated bioregional conservation management in the CFR supported by comprehensive performance management and information management 2. Involving people -environmental education Increased environmental awareness and committed action of people in the CFR contributes to biodiversity conservation 3. Biodiversity economy/ conservation Market-based mechanisms for conservation livelihoods management are designed 4. Program coordination Enhanced management capacity, effective communication and efficient adaptive management 2 ISDS result in the integrated development and implementation of the Program 5. Protected areas Protected areas contributing to priority targets for conservation of the biodiversity of the CFR are consolidated or established; cost-effective management is sustained; tourism development plans are implemented; and stakeholders derive direct and indirect benefits 6. Landscape management Biodiversity in priority remnant patches in fragmented landscapes is identified and secured in conjunction with civil society 7. Watershed management Biodiversity concerns are integrated into watershed management I.A.3. Project Description (From PDS): The project has seven inter-related components that collectively will meet the program's two development objectives. To ensure that capable institutions co-operate to develop a foundation for mainstreaming biodiversity into the productive landscape of the CFR, there is a need for enabling activities including (i) institutional strengthening; (ii) involving people; (iii) establishing foundations for the biodiversity economy; and (iv) program co-ordination, management and monitoring. Enhancing the conservation of the CFR will be achieved, on the other hand, through piloting and adapting models for sustainable, effective management in priority sites, by: (v) unleashing the potential of protected areas; (vi) identifying and securing biodiversity in priority areas in the fragmented landscape; and (vii) integrating biodiversity concerns into watershed management.c I.A.4. Project Location: (Geographic location, information about the key environmental and social characteristics of the area and population likely to be affected, and proximity to any protected areas, or sites or critical natural habitats, or any other culturally or socially sensitive areas.) Biodiversity: South Africa is considered a megadiversity country, mainly due to its floristic diversity and the level of endemism. South Africa's plant diversity is estimated at 23,420 species, representing 9% of the world total. Three of the world's 25 most threatened biodiversity hotspots are found within the country's boundaries (Cape Floristic Region, Succulent Karoo and Maputaland-Pondoland). The Cape Floristic Region (CFR), which covers an area of 90,000 square kilometers, comprises one of six Floral Kingdoms worldwide, and is uniquely the only floral kingdom to be located entirely within the geographical confines of a single country. The CFR is exceptionally rich in species diversity; in particular, the region is a storehouse of plant diversity (some 9,600 species of vascular plants have been recorded). The flora is characterized by high endemism. The region is accordingly, listed as a centre of plant diversity and endemism. Many species have highly localized distributions. The floral inventory remains incomplete, and new species are continually being recorded. Some 127 mammal species, 300 birds, 142 reptiles and 144 amphibians have also been recorded. The region is considered an endemic bird area. The invertebrate fauna is also very rich. Though less well documented than other taxonomic groups, it is notable for containing an assemblage of ancient taxa that have largely been extirpated elsewhere. Many species are highly specialised, having developed highly mutualistic relationships with plants, and like the flora, tend to have very narrow range distributions. 3 ISDS Terrestrial habitat diversity is very high in the region. The natural environment includes semi-arid ecosystems, with precipitation of less that 500 mm per annum, remnant temperate moist forests along the eastern coast, and mountain ecosystems, with an altitude gradient ranging from sea level to 2300 meters above sea level. Habitat diversity is a product of high topographical variation, and substrate and climatic variation, and in turn influences alpha diversity. Importantly, these landscapes are characterized by a high biogeographical turnover, manifest in exceptional gamma diversity. Accordingly, seemingly similar ecosystems may have markedly different characteristics. The region's freshwater habitats harbour 19 species of fish, all endemic or near-endemic. Numerous small estuarine areas provide refugia for unique species and for juvenile fish. The coastal area is influenced by two oceanic currents, the warm Agulhas Current on the East Coast and the cold Benguela Current on the West Coast, which have their confluence on the Agulhas Bank off Cape Agulhas, the southernmost point in Africa. 11,000 species of marine animals have been recorded in South African waters, of which 3,500 are endemic to the region occurring only between Cape Point and Port Elizabeth. The marine fish fauna is very rich with some 400 species recorded (including several notable endemics). The nutrient rich Benguela Current, in particular, is noted for its productive fisheries, although the Agulhas has greater absolute diversity. The mollusc fauna, and other benthic communities are also exceptionally rich. These communities are characterized by a high rate of turnover across the seascape. These ecosystems further harbour an array of rare fauna, including petrels, albatrosses, African Penguins and other sea birds, important whale populations, fur seals and pelagic sharks. Threats: The rich biodiversity of the CFR is under serious threat, as a result of the conversion of natural habitat to permanent agriculture and to rangelands for cattle, sheep and ostriches, inappropriate fire management, rapid and insensitive infrastructural development, over-exploitation of marine resources and wild flowers, and infestation by alien species. Some important habitats have been reduced by over 90% and less than 5% of land in the lowlands enjoys any conservation status. The region has therefore been identified as one of the world's `hottest' biodiversity hotspots. There is an urgent unmet need to arrest these anthropogenic pressures, through the creation of an enabling institutional co-ordination framework at the regional and local levels, the creation of a bio-geographically representative system of protected areas, with different objectives and operated under various management arrangements, and through mainstreaming conservation into the productive sectors, particularly agriculture, forestry and fisheries. This will in turn require the creation of durable multi-stakeholder public-private partnerships. Social and Economic Context: The CFR spans the provinces of the Western Cape and Eastern Cape and has an estimated population of approximately 5,2 million. Some 20 ­ 30% of the population resides in rural areas, which harbour the greatest biodiversity, although many urban communities also reside on or adjacent to biologically significant areas. The population is dispersed across a wide area and is characterized by diversity in terms of ethnicity, language and culture. Socio-economic disparities are marked, as are disparities in skills and access to resources. There are sizable pockets of poverty existing throughout, in both rural and urban areas. On the whole, the population of the Western Cape enjoys a greater degree of human, economic and social development than their Eastern Cape counterparts, where unemployment is estimated at 49%. Many poorer rural communities are dependent upon wild resources, particularly marine resources and medicinal plants for subsistence purposes and income generation. A range of land tenure arrangements is in evidence, including large, medium and small free holdings, state-owned land under different management arrangements, and a small proportion of communal land. As much of the biological heritage rests on land outside the public land estate, there is a need to develop tailor-made models encouraging conservation on private and communal lands-accommodating the 4 ISDS different cost-benefit and risk calculus of small, medium and large landholders and the various communities. Policy Context: South Africa confronts numerous pressing social and economic problems, most notably widespread poverty and socio-economic inequities. The country ratified the Convention on Biological Diversity (CBD) in 1995 and is moving to address its obligations under the Convention within a larger framework for sustainable development that addresses the root causes of biodiversity loss, including by ameliorating poverty, promoting the development of livelihoods compatible with conservation objectives, and securing the participation of all sectors of society in implementation. This strategy is consistent with the plan of action agreed by world leaders at the 2002 World Summit on Sustainable Development (WSSD). In 2000, the Government approved a Medium-Term GEF Project Priority Framework, identifying strategic areas for GEF investment needed to catalyse a broad spectrum of environmental management endeavors of high national priority. In 1997, a White Paper entitled Conservation and Sustainable Use of South Africa's Biological Diversity was approved as government policy. The White Paper informed the design of elements of the GEF Framework addressing biodiversity conservation objectives. A key objective is to expand conservation activities to encompass whole ecological landscapes, focusing on biomes by seeking to "integrate conservation objectives into the productive sectors, strengthen land use planning and monitoring functions, develop and support implementation of conservation models, establish new institutional and operational mechanisms, and establish new conservation partnerships bridging the public and private sectors" GEF Medium-Term Project Priority Framework 2000. The CFR was identified as a top priority for GEF intervention, to secure these intended outcomes through a holistic and long-term programmatic approach. GEF Support: In 1998, the GEF provided US$ 12.3 million in funding through the World Bank for the Project: Cape Peninsula Biodiversity Conservation (CPBCP). The project provided funding to strengthen management of and extend the globally significant Cape Peninsula National Park (CPNP), to part-capitalize an environmental trust fund, the Table Mountain Fund (TMF), and to prepare the CAPE 2000 Strategy. These respective interventions have all successfully attained their expected outcomes. The Cape Peninsula Biodiversity Conservation Project in essence constitutes a pre-feasibility phase and substantial site based investment for a broader initiative to protect the entire CFR. Its success, attributed in large part to strong government commitment and stakeholder support, provides a strong assurance that further conservation measures intended to realize the C.A.P.E. vision have a high probability of success, both in terms of mitigating threats and engineering sustainability. These fundamentals provide the conditions necessary for further GEF support, as part of a larger package of financing, to secure biodiversity conservation objectives within the CFR. B. Check Environmental Classification: B (Partial Assessment) Comments: The Program is designed to have a substantial positive global environmental benefit which secures the CFR for future generations. The Project will support conservation actions including planning, consolidation of protected areas and management planning as follows: Consolidation of 3 mega-reserves ( Baviaanskloof, Garden Route, Cedarberg) and establishing 2 priority freshwater and estuarine protected areas ( West Coast and Garden Route). Some activities may automatically trigger South Africa's well functioning environmental impact assessment legislation as well as in some cases Bank safeguards. As the CAPE 2000 Strategy in essence constituted a major strategic environmental assessment for the whole of the CFR, this exercise has not been repeated during preparation. Instead it is proposed that an Environment and 5 ISDS Social Management Framework (ESMF) is developed to address all safeguard issues requiring downstream Program compliance, prior to appraisal. Whilst South Africa's environmental impact assessment legislation is in the process of being redrafted, discussions with government indicate that the focus is primarily on improving efficiency in implementation and not a relaxation of the intent of the legislation. Changes in National legislation will be independently reviewed and provided to the ASPEN Team to verify consistency. The program does not upfront trigger any environmental assessment requirements. C. Safeguard Policies Triggered (from PDS) (click on for a detailed desciption or click on the policy number for a brief description) Policy Triggered Environmental Assessment (OP 4.01, BP 4.01, GP 4.01) Yes No TBD Natural Habitats (OP 4.04, BP 4.04, GP 4.04) Yes No TBD Forestry (OP 4.36, GP 4.36) Yes No TBD Pest Management (OP 4.09) Yes No TBD Cultural Property (OPN 11.03) Yes No TBD Indigenous Peoples (OD 4.20) Yes No TBD Involuntary Resettlement (OP/BP 4.12) Yes No TBD Safety of Dams (OP 4.37, BP 4.37) Yes No TBD Projects in International Waters (OP 7.50, BP 7.50, GP 7.50) Yes No TBD Projects in Disputed Areas (OP 7.60, BP 7.60, GP 7.60)* Yes No TBD Section II - Key Safeguard Issues and Their Management D. Summary of Key Safeguard Issues. Please fill in all relevant questions. If information is not available, describe steps to be taken to obtain necessary data. II.D.1a. Describe any safeguard issues and impacts associated with the proposed project. Identify and describe any potential large scale, significant and/or irreversible impacts. The project is designed to remove threats and root causes to biodiversity losses in the CFR and to have a positive impact on globally-significant biodiversity and cultural property. It is thus not expected to result in any significant safeguard issues or negative impacts. An ESMF will however be developed in line with Bank safeguard requirements for EA, natural habitats, forestry and cultural property. EA is triggered through planning and provision of minor infrastructure as outlined in Section B above.The project involves the restoration of natural habitats and the Garden Route activity is located in an important indigenous forest area. Minor infrastructure in the planned areas could include roads, footpaths, fences and overnight visitor facilities. For the purpose of addressing land acquisition/incorporation into protected areas and issues related to potential loss of access to natural and economic resources which may arise during project implementation, a combined Resettlement Policy Framework and Process Framework will be prepared. The purpose of the RPF/PF and the ESMF, is to clarify potential resettlement and compensation principles which may become applicable if land or marine areas are incorporated into conservation areas (as well as land which is not protected) or is required for project purposes". II.D.1b. Describe any potential cumulative impacts due to application of more than one safeguard policy or due to multiple project component. none 6 ISDS II.D.1c Describe any potential long term impacts due to anticipated future activities in the project area. The program is expected to result in a long term positive impact on globally significant biodiversity and the regional economy II.D.2. In light of 1, describe the proposed treatment of alternatives (if required) As the preparation of the project has resulted in an assessment of the best spatial options for GEF support the decision framework and reasons for selection will be documented in the ESMF. II.D.3. Describe arrangement for the borrower to address safeguard issues TOR's are being developed for the studies triggered above and guidance is being provided by the Bank in this regard. The guiding documents which will be produced will include an ESMF and a RPF/PF. The RPF/PF are guiding documents which describe the principles which will be applicable should the project require land/marine resource conservation or cause loss of access to natural and economic resources. The actual resettlement/compensation plans would only be prepared once the spatial definition of project interventions is determined. The ESMF and RPF/RP will therefore establish the triggers for when more detailed Bank safeguard policies need to be complied with, how the recipient will take these decisions, how these decisions will be reviewed by the Bank and the relevant safeguard reports reviewed, approved, disclosed and implementation of decisions monitored by the Bank. II.D.4. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. II.D.4. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. GOVERNMENT Provincial Government, such as: · Provincial departments, including Agriculture, Environment Affairs and Development Planning, and Education · Provincial government decision makers including Members of the Executive Committees and Members of the Provincial Legislatures Local Government, such as: · Individual municipalities, municipal councillors and officials · South African Local Government Association Conservation Agencies, such as: · Western Cape Nature Conservation Board · Eastern Cape Nature Conservation Agency · South African National Parks CIVIL SOCIETY: Conservation NGOs, such as: · Conservancies · Biosphere Organizations · Local Estuary Management Forums · Botanical Society · Wildlife and Environment Society of South Africa Natural Resource Conservation Specialist and Research Groups, such as: · Biodiversity institutes, e.g. National Botanical Institute, · Research forums , e.g., Fynbos Forum, Arid Zone Forum, 7 ISDS · Research and planning bodies, such as the Cape Planning Unit, individual researchers and consultants · Agricultural sector research bodies · University based researchers, institutes and units ECONOMIC DEVELOPMENT INTERESTS: Landowners, such as: · Commercial farmers · Absentee owners · Water User Associations Medium and Large Scale Business, including · Land development companies · National public enterprises, e.g. Eskom, Telkom and Transnet · National development agencies, such as SABS, Satour · Tourism operators · Fishing companies · Agricultural product beneficiators · Operations with significant ecological impact · Professional consultants advising companies · Organized business associations Small, Medium and Micro Enterprises (SMMEs), such as: · Individual entrepreneurs · Small business organizations · SMME promotion agencies, such as Ntsika and Khula Trade Unions, such as those organizing workers employed by: · Conservation agencies · Farmers · Businesses based on natural resources · Business targeted to reduce ecological footprint · Trade Union federations, such as Cosatu, Nactu and Fedusa Stakeholders will be consulted as per South African environmental impact assessment and land use planning legislation as legislative requirements are triggered as well as for forward and strategic planning as happened during the original design of the CAPE 2000. South African legislation requires all interested and effected parties to be notified when an environmental impact assessment is to be undertaken and to invite them to participate in the process ie for a detailed site based intervention Regarding Bank requirements, the ESMF will be disclosed to stakeholders prior to appraissal. The ESMF will largely be compiled from the detailed information which has already been provided through extensive involvement of stakeholders during the preparation of the PCD. Site based interventions will involve detailed consultation with stakeholders as per South African legal requirements. South African legislation finally makes provision for review of environment related decisions by the Minister of Environment and ultimately by court where a stakeholder wishes to appeal a decision. The CAPE process is currently steered by an Implementation and Coordination Committee both of which will be continued. This will include consultation on an annual basis around the CAPE work program. Key stakeholders are represented at political and technical level on these structures. Where Resettlement Action Plans may at later stage be required these will be developed in detail with affected parties. The ESMF and RPF/PF will be separately disclosed on the internet and in hard copy and to the Cape Implementation Committee prior to appraisal as well as to the Infoshop. Hard copies of the reports will be made available to stakeholders, the World Bank Country office (PIC) and HQ including the Infoshop. If the development process indicates that other disclosure mechanisms are required this will also take place. 8 ISDS E. Safeguards Classification (select in SAP). Category is determined by the highest impact in any policy. Or on basis of cumulative impacts from multiple safeguards. Whenever an individual safeguard policy is triggered the provisions of that policy apply. [ ] S1. ­ Significant, cumulative and/or irreversible impacts; or significant technical and institutional risks in management of one or more safeguard areas [X] S2. ­ One or more safeguard policies are triggered, but effects are limited in their impact and are technically and institutionally manageable [ ] S3. ­ No safeguard issues [ ] SF. ­ Financial intermediary projects, social development funds, community driven development or similar projects which require a safeguard framework or programmatic approach to address safeguard issues. F. Disclosure Requirements Environmental Assessment/Analysis/Management Plan: Expected Actual Date of receipt by the Bank 6/15/2003 Date of "in-country" disclosure 6/15/2003 Date of submission to InfoShop 6/15/2003 Date of distributing the Exec. Summary of the EA to the Executive Not Applicable Not Applicable Directors (For category A projects) Resettlement Action Plan/Framework: Expected Actual Date of receipt by the Bank 6/15/2003 Date of "in-country" disclosure 6/15/2003 Date of submission to InfoShop 6/15/2003 Indigenous Peoples Development Plan/Framework: Expected Actual Date of receipt by the Bank Not Applicable Not Applicable Date of "in-country" disclosure Not Applicable Not Applicable Date of submission to InfoShop Not Applicable Not Applicable Pest Management Plan: Expected Actual Date of receipt by the Bank Not Applicable Not Applicable Date of "in-country" disclosure Not Applicable Not Applicable Date of submission to InfoShop Not Applicable Not Applicable Dam Safety Management Plan: Expected Actual Date of receipt by the Bank Not Applicable Not Applicable Date of "in-country" disclosure Not Applicable Not Applicable Date of submission to InfoShop Not Applicable Not Applicable If in-country disclosure of any of the above documents is not expected, please explain why. Signed and submitted by Name Date Task Team Leader: Christopher James Warner 06/18/2003 Project Safeguards Specialists 1: John A. Boyle/Person/World Bank 06/18/2003 9 ISDS Project Safeguards Specialists 2: Kristine M. Ivarsdotter/Person/World Bank 06/18/2003 Project Safeguards Specialists 3: Serigne Omar Fye/Person/World Bank 06/18/2003 Approved by: Name Date Regional Safeguards Coordinator: Charlotte S. Bingham 06/18/2003 Sector Manager/Director Richard G. Scobey 06/18/2003