37663 GEF Global Action on Water MANAGING TRANSBOUNDARY WATERS Nature does not neatly segment environmental or management of their transboundary basins and water problems by geography or political unit. linked marine ecosystems. Water use conflicts, grow- Most of the large rivers of the world cross national ing water scarcity, pollution, erosion and down- borders, often resulting in water use conflicts and stream sedimentation, flow depletion, cycles of tensions, as well as missed opportunities for sus- drought and flooding, habitat loss, joint governance, tainable development, peace, and security. About and over-fishing are among the chief concerns. one-half of our planet's land area and population, and more than 60 percent of global freshwater The GEF works to leverage the involvement of flow, are located in transboundary basins. These other nations as they implement water-related systems, including their land area, must be man- global and regional treaties. It has provided assis- aged in a sustainable way if we are to preserve the tance to countries for important international environment, reduce poverty, and prevent domes- water bodies. Its projects are implemented by the tic and international conflicts. U.N. Development Programme, the U.N. Environment Programme, and the World Bank. In 1991, the world community recognized the The GEF also works through seven executing serious degradation of freshwater and marine agencies: the African Development Bank, the systems occurring across borders when it created Asian Development Bank, the Inter-American the GEF and designated the protection of inter- Development Bank, the European Bank for national waters a GEF priority. In 1995, the GEF Reconstruction and Development, the U.N. Food Council took a bold step in adopting an opera- and Agriculture Organization, the U.N. Industrial tional strategy that included guidance on Development Organization, and the International addressing international water issues within the Fund for Agricultural Development. framework of sustainable development. THE BASIN, NOT JUST THE WATER GEF projects help nations in transboundary basins Through their participation in the GEF, countries or those sharing a marine ecosystem work are learning that transboundary water manage- together to establish priorities; adopt policy, ment is not just about sharing water but also legal, and institutional reforms in sectors causing degradation or use conflicts; and test the feasibil- GEF SUPPORT FOR ity of various investments to address use conflicts TRANSBOUNDARY WATERS and reverse degradation. Since 1991, GEF has provided funding to 135 COUNTRY-DRIVEN ASSISTANCE developing and transitional countries for 110 Developing countries and those in economic transi- transboundary water resources projects. GEF's tion clearly appreciate the seriousness of the linked commitment of $888 million has resulted in land and water resources crises. Many have total project funds exceeding $3.8 billion. requested GEF's assistance to improve cross-sectoral mine their flow requirements so that future develop- ment can be environmentally sustainable. The Lake Chad Basin Project demonstrates that restoring floodplains with special releases from dams will be essential for poverty reduction in the poor communities of Africa. The Danube/Black Sea Basin Strategic Partnership is supporting floodplain restoration not only for local income generation but also for pollution reduction. The Mekong Basin and Okavango Basin Projects are determining the water requirements of important wetlands and down- stream deltas so that future development projects will be able to sustain the environmental flows about their shared drainage basin and its environ- needed to secure these ecosystems and provide sta- mental assets. Often land use decisions are in reality bility to poor communities. water use decisions, and the security of downstream communities and downstream economies can be ESTABLISHING PRIORITIES AND placed in jeopardy because of misuse of land or DEVELOPING A SHARED COMMITMENT water. Sustainable development of transboundary According to the GEF's operational strategy, nations basins is about sharing the benefits of improved land should begin their joint basin activities by setting pri- and water resources management, not just about orities (transboundary diagnostic analysis or TDA) dividing up limited amounts of water. and determining the policy, legal, and institutional reforms and investments needed to address those A good example of reforms and investments priorities in a strategic action program. These involving both land and water resources is the processes foster "learning by doing" and strengthen Bermejo Binational Basin Project in Argentina and political commitments to address priorities. Several Bolivia. The Bermejo Binational Basin suffers from GEF projects, including the Bermejo, Danube/Black droughts and floods. Strategic planning processes, Sea Basin, and Lake Tanganyika projects, have combined with local demonstrations of water har- hinged on establishing these shared commitments to vesting and soil erosion control, empowered the sectoral reforms. Once those commitments are communities in the basin to take part in determin- secured, the GEF may co-fund an implementation ing their sustainable future and establishing priori- project or program to assist countries in addressing ties for reforms. their reform and investment priorities. RESTORING FLOODPLAINS FOR PREVENTING CONFLICTS POVERTY REDUCTION Collective action and the sharing of resulting benefits The security of poor communities often depends on are proving to be effective ways to address conflicts access to functioning wetlands, floodplains, and over scarce water. An initial focus on environmental fisheries, which are often threatened by develop- assets can build confidence in the feasibility of such ment projects that reduce or eliminate water access actions. Consider the Nile Basin Initiative. The 10 par- and increase vulnerability to flooding. Countries in ticipating countries initially used their GEF project transboundary basins are asking the GEF for assis- preparation support to produce a transboundary tance to restore water-related ecosystems and deter- environmental analysis. The analysis required each country to consult with its non-environmental min- PROMOTING STAKEHOLDER istries and sectors, resulting in greater inter-ministerial PARTICIPATION coordination and wider stakeholder participation. Poor communities must have access to local, national, and basin-wide water and land resource REFORMING POLICY AND management institutions so that they can participate INSTITUTIONS in long-term planning and decison making. In the Nations must establish cooperative, multi-country Bermejo and San Juan Basin projects, local NGOs water-resource management institutions and under- were involved in planning activities that gave them take domestic policy reforms if they are to change access to commissions and steering committees, the way that various sectors work in transboundary thus enabling them to influence the development of basins. In the Danube Basin Project, countries are action programs. cooperating under a joint legal framework to revise their individual water and environmental laws. The NGO forums established in both the Danube Basin Guarani Aquifer Project, which has been a priority and Black Sea Basin Projects provided opportunities for GEF funding, is leading to coordinated legal, for civil society to interact with project commissions. In institutional, and environmental frameworks for the Lake Victoria Project, local communities have been managing the aquifer and recharge area. involved in addressing illegal fishing, implementing biological controls for water hyacinth infestation, and Through the São Francisco Basin Project, Brazil is forming beach management committees (185 com- using GEF funds to implement a new water law that mittees in Kenya, 82 in Uganda, and 510 in Tanzania) establishes a system of water pricing and allocates to work with their national government in "co-man- water rights. The law also requires the development agement" of the lake. of water charges and use regulations in the basin. The five states in the basin have formed a river basin At the same time, private sector involvement is committee and will eventually establish a basin man- urgently needed because of the shortage of public agement agency. funding. An additional $100 billion must be invested in water projects annually just to keep up with pop- ATTRACTING DIVERSE FINANCING ulation growth and food security needs. In many The Lake Victoria Environmental Management regions, urban water supply systems are character- Project, undertaken with GEF assistance, is a good ized by inefficiency and waste. Reforms to institute example of a project that packages financing from proper water pricing policies, multilateral develop- different sources to foster sustainable development ment priorities for sharing the risks associated with and reduce poverty in local communities as well as private-sector investments, and public-private part- decrease transboundary ecosystem degradation. The nerships that attract private capital for investments program combined $35 million from GEF with $52.6 provide the only hope for reversing water resource million in cofinancing to test sustainable develop- degradation and use conflicts. ment strategies. These strategies aim to generate food, employment and income, safe water supplies, and a disease-free environment while exploring SHARING EXPERIENCE innovative methods for reducing pollution, conserv- The GEF has found that sharing information and ing biodiversity, sustaining fisheries, and building experiences about transboundary water projects can institutions. Local communities are becoming be a valuable learning tool. The GEF IWLEARN proj- involved through 125 micro projects related to sus- ect (www.iwlearn.org) is testing the latest Web- tainable use of land and water resources. based technology to enable people participating in GEF international waters projects to share expe- degree program for a fraction of the cost of riences and transfer knowledge. Its distance sending staff to university for several years. Staff learning trial illustrated that countries and proj- earning a master's degree through the online ects could augment their water-resource man- program have stayed with GEF projects, playing agement capacity through an online master's key roles in their implementation. LESSONS LEARNED FROM GEF'S TRANSBOUNDARY WATER PROJECTS Collaboration among countries is necessary Inter-ministerial committees in each to develop a shared political commitment nation are critical to enhance reforms and vision for action. in different sectors. Policy, legal, and institutional reforms in Multi-country institutions should the economic sectors creating transbound- adopt indicators to support adaptive ary stress or water use conflicts are neces- management. sary to alleviate that stress or conflict. Finance packages are needed to address A focus on sharing benefits from the poverty reduction and development issues improved management of land and concurrently with interventions for the water resources in basins--rather than transboundary water environment. on merely sharing water--is often a useful approach. Programs, not just projects, are needed with each partner using its comparative Restoration of floodplain wetlands and advantages to spur needed country downstream coastal ecosystems is crucial reforms and investments. to reducing poverty and increasing the security of communities. South-to-South exchanges of experiences are essential and can be accomplished Improved water pricing policies and the with the aid of modern technology and use of economic instruments are necessary learning opportunities. to generate revenues and attract private- sector investments in projects to save GEF serves as a catalyst for country- water and reduce pollution. driven actions that are undertaken collectively under many global and Institution building and capacity enhance- regional conventions in its international ment at all levels of governance should be waters focal area. priorities to "level the playing field" among nations and enable long-term participation of stakeholders. FOR MORE INFORMATION Global Environment Facility 1818 H Street NW Washington DC 20433 USA Tel: 202-473-0508 Fax: 202-522-3240 www.theGEF.org January 2006