Report No. PID11491
Project Name             GUINEA-BISSAU-Coastal and Biodiversity
Management Project
Region                   Africa Regional Office
Sector                   General agriculture; fishing and
forestry sector (100%)
Project ID               P049513
Borrower(s)              GOV. OF GUINEA-BISSAU
Implementing Agency
World Bank
Address: 1818 H Street
Contact Person: Christophe Crepin
Tel: 202-4739727
Fax: 202-6140893
Email: ccrepin@worldbank.org
Environment Category     A
Date PID Prepared        October 17, 2002
Auth Appr/Negs Date      August 15, 2003
Bank Approval Date       January 15, 2004
1. Country and Sector Background
Guinea Bissau is one of the world's poorest countries. Its development
index is amongst the lowest, with over 50% of the population living below
the poverty line, a life expectancy at birth of 43 years, and a high level
of inequality of income distribution. The country's estimated population
in 2001 was approximately 1.3 million, with a growth rate of 2.23%.
Guinea Bissau's current and future economy is highly dependent on its
natural resources. The sale of cashew nuts and fisheries licenses are
currently the country's two largest income earners (representing
approximately 87T of the country's export earnings), but exploitation of
non-renewable resources, particularly bauxite, phosphate and petroleum, is
touted by Government as a key potential element for future economic growth.
Root causes of biodiversity loss
With approximately 80% of the population currently residing in the coastal
zone where most economic activity is concentrated, pressure on coastal and
marine resources is increasing. The root cause of biodiversity loss is
poverty, and the ensuing lack of economic alternatives. Natural resources
currently form the foundation of the livelihood strategies for the
majority of the population, for whom few alternatives exist. Furthermore,
high poverty and low awareness of the necessity of ecosystem health for
the provision of environmental goods and services provide little incentive
for sustainable management of the coastal biodiversity capital.
Subsistence livelihoods have led to deforestation and soil degradation,
which have historically been seen as the basic environmental problems
confronting Guinea Bissau. Within the coastal zone more specifically, the
major threats to ecosystem function and habitat quality have resulted from
subsistence activities such as itinerant agriculture, rice production,
artisanal fishing and the extraction of fuelwood from forests and
mangroves for the production of charcoal and the smoking of fish. The



lack of appropriate management of coastal and marine natural resources as
well as the depletion of key species within fragile ecosystems could cause
severe biodiversity loss.
Potential threats to biodiversity
The coastal zone also houses resources identified as potential motors of
future economic growth, namely fisheries and offshore petroleum. Guinea
Bissau's capacity to manage these resources sustainably is very weak. For
example, fisheries are at present mainly exploited by foreign vessels
through negotiated fishing licenses or by migrants from Senegal and
Guinea. The fishing licenses do not set quotas, but rather rely on the
payment of fees proportionate to captures, even though fish stocks are
insufficiently known. Guinea Bissau does not have the capacity to monitor
the impact of fishing on stocks, to control fishing licenses, or to
collect fishing fees. Ultimately, intense industrial fishing of key
species such as shrimps could change the ecological balance of coastal
ecosystems and threaten their integrity. Much of the fish caught by
artisanal fishermen is landed in Guinea or in Senegal, making monitoring
very difficult. Furthermore, global markets for high-priced foods, such as
shark fins, have led to intense overexploitation and a rapid collapse of
source stocks.
The potential for petroleum production in Guinea-Bissau and Southern
Senegal was first recognized in the 80s. The newly elected Government in
early 2000 rekindled international interest. Petroguin, Guinea-Bissau
parastatal oil company, then retained the services of First Exchange
Corporation (FE) of Houston, Texas, to promote and oversee oil
development. Early estimates suggest a potential of 500 million-3 billion
barrels, split between Guinea-Bissau's shared economic zone with Senegal
and its exclusive economic zone. The area currently opened to exploration
comprises Guinea Bissau's entire coast, including the Bolama-Bijagos
Archipelago. Production will go ahead if commercially viable oil fields
are found. Offshore oil production could have huge environmental and
social impacts, unless necessary safeguards are developed and implemented.
Constraints to biodiversity conservation
The risk of significant biodiversity losses in the face of these mounting
pressures is exacerbated by the weak national capacity to address threats
to coastal and marine habitats. The institutional and legal framework is
inadequate, human resources are lacking, access to information is poor,
communication infrastructure is weak and limits coordination between the
relevant actors, and there is a virtual absence of biodiversity monitoring
programs. Most disturbing are i) the absence of a process to address the
environmental and social risks of development activities, and ii) the
inclusion of the Department of Environment in the same ministry that hosts
the national petroleum development parastatal, Petroguin.
In the face of multiple competing and urgent needs, Guinea Bissau cannot
allocate the resources required for the management of biodiversity of
global importance. Although a network of protected areas has been
established, protection on the ground is not effective. Insufficient
long-term funding from Government for protected areas and biodiversity
management is further exacerbated by the impending closure of externally
supported project-based initiatives. A narrow window of opportunity
exists to put these activities on a sustainable footing and to build on
hard won advances.
National policy and institutional framework to address issues and
constraints
Despite the severe constraints it faces, the GOGB recognizes the
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importance of maintaining the quality of the environment and of the
natural resource base. The national development program for 2001-2010
clearly acknowledges the critical role natural resources have to play in
overall economic development as well as in poverty alleviation. The four
objectives of the program: i) economic growth and poverty alleviation, ii)
provision of basic social and economic infrastructure, iii) demobilization
and reinsertion of soldiers (consolidation of peace and national
reconciliation) and iv) good governance. Priority is given to stimulation
of sustainable economic growth based on diversified rural development and
the rational exploitation of agricultural, forestry and fishery resources
to alleviate poverty.
With respect to natural resources and the environment, the development
program outlines four principal objectives: i) improving access to potable
water; ii) improving the understanding of the potential represented by the
country's non-renewable resources; iii) capacity building vis-a-vis
technologies that increase the value of local resources; and iv) ensuring
sustainable exploitation of the resource base combined with judicious
protection of the environment. The strategy for achieving the last
objective includes the elaboration of a national policy and plan for
environmental management, the management of parks and other protected
areas and the elaboration and implementation of a biodiversity management
program in the coastal areas.
The above objectives and strategies are reinforced by four initiatives:
1) The assessment of environmental issues "Towards a strategic agenda for
environmental management" prepared with the support of the World Bank in
1993, which identified the management of protected areas as a priority to
counter loss of offshore fisheries and biodiversity.
2) Environmental Action Plan (NEAP). The Department of Environment is
preparing the NEAP, with the support of UNDP/UNSO. Its objective is to
provide Guinea Bissau with planning and management instruments for its
natural resources. Areas of concern include salinization of rice paddies,
deforestation, bush fires and wildlife depletion, overfishing, destruction
of mangroves and loss of biodiversity along the coast.
3) National Biodiversity Strategy and Action Plan (NBSAP). The Department
of Environment is preparing the NBSAP, with the support of UNDP/GEF. The
NBSAP is a participatory initiative to help Guinea Bissau assess
biological biodiversity, identify threats, and suggest options and
measures to ensure the conservation, ecologically sustainable utilization
and equitable sharing of biodiversity.
4) Clearing House Mechanism. The General Directorate for Environment is
establishing the Clearing House Mechanism in cooperation with the
Convention on Biological Diversity for Guinea-Bissau, with the support of
UNDP/GEF. The GEF Council has approved funding in April 2001 to set up
biodiversity information systems and for support for hardware, software
and training.
Starting in 1988, the GOGB has been implementing activities in the coastal
zone. IUCN has been a key partner since the beginning, with the financial
support of the Government of Switzerland. The European Union, France,
Portugal, Canada and the Netherlands have each provided additional
support. The activities that they funded have mainly focused on the
coastal area, but sometimes their scope was national. Most remarkably,
coastal planning activities have stimulated the growth of local NGOs,
which have in return strongly supported these activities. The main
achievements include:
n Establishment of the Bolama-Bijagos Biosphere Reserve (1996).
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n Enactment of a framework law on protected areas in 1997, which provides
for the devolution of management responsibilities for protected areas to
the community level, to create ownership and to initiate "sustainable
development poles".
in Establishment of a protected area network, including the Joao Vieira and
Poilao National Park, the Orango National Park, the Cacheu Mangrove
Natural Park, and the Cufada Lagoon Natural Park. Studies have been
completed for the conversion of the Cantanhez game reserve into a
protected area.
n Establishment of a Protected Area Nucleus (NAP), which manages the
Orango, Joao Vieira and Cacheu parks, as well as the Bolama Bijagos
Biosphere Reserve.
n Creation of a Coastal Planning Unit, which has catalyzed numerous
geographic as well as biodiversity inventory and monitoring studies.
n Support to sustainable development and poverty alleviation, through the
funding of micro-projects focusing on fisheries, food security and
forestry, in partnership with national NGOs.
n Environmental education and awareness raising, targeting national
decision-makers, technicians, as well as school children and local
communities.
More recently, during the Bubaque+10 meeting in March 2001, the Government
publicly announced its intention to establish an official entity to manage
protected areas and wildlife, thus filling a critical institutional gap.
2. Objectives
The development objective of the proposed Coastal Biodiversity Management
Program is to promote the rational management of Guinea Bissau's coastal
biodiversity for both conservation and sustainable use for development,
with a particular emphasis on local communities. This is in line with
national development priorities, which focus on the reduction of poverty
and the development of the social sector.
The program's global objective is to strengthen the conservation of
globally significant habitats and species under national jurisdiction.
The program will build on results from earlier environmental initiatives
and on an existing network of protected areas along the coastline of
Guinea-Bissau, and will contribute to poverty reduction in rural coastal
areas by providing livelihood strategies through participatory sustainable
management schemes for natural resource use.
The global and development objectives are sought via the following
operational outputs: 1) improved sustainability and coherence of the
organizational, policy and financial framework for managing coastal
ecosystems and sustainable use of related natural resources, 2) effective
management of protected areas, 3) development of community-based
biodiversity conservation and sustainable use, 4) improved management of
the coastal fisheries sector, to reduce pressure on the fragile ecosystem
balance, 5) implementation of environmental impact assessment legislation
and its application to activities in the coastal zone.
3. Rationale for Bank's Involvement
The program fits solidly within the GEF Operational Program on Coastal and
Marine Ecosystems, a priority area for the first, second and third
Conference of the Parties to the Convention on Biological Diversity. The
Bank, as a GEF implementing agency, can therefore bring incremental grant
resources to assist Guinea Bissau in tackling coastal and marine
biodiversity issues of global environmental concern. This will include
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ecosystem protection as well as increasing capacity for sustaining this
protection over time. Without these incremental resources many of the
proposed program activities would likely go unfunded in the face of the
numerous competing demands on the country's extremely limited budgetary
resources and the current financially constrained donor environment.
The Bank can also add value through providing technical assistance for
designing and implementing coastal and biodiversity projects that draw on
the worldwide experience gained through management of its growing
portfolio. The Bank has considerable experience to offer in institution
and capacity building, be it for coastal management or environmental and
social protection mechanisms, and its environmental safeguards are
recognized as setting international standards. In addition, the Bank has
recognized the value of trusts as an instrument for providing long-term
support to biodiversity conservation and has been a leader in supporting
their establishment in Africa and elsewhere. Through this, the Bank has
gained experience that will enable it to provide valuable technical
support for preparing and implementing a trust, as well as supervision
capacity. The Bank's increasing experience in facilitating programmatic
multi-donor approaches leaves it well placed to leverage additional funds
from other donors and the private sector.
4. Description
The program comprises six components.
I. Sustainable Institutional Framework (estimated costs: US$1.3
million). This component will focus on the establishment of an
institutional framework that ensures the coordinated, priority-driven
management of protected areas and biodiversity, over the long term. The
proposed framework includes: i) an administratively and financially
autonomous Institute for Biodiversity and Protected Area Management
(IBAP), which would be mandated by Government to implement national
policies and strategies for the management of biodiversity and protected
areas; and ii) a sustainable financing mechanism, the Foundation, to
support in perpetuity IBAP's operation and activities, including the
management of protected areas and biodiversity conservation in Guinea
Bissau.
II. Biodiversity and Protected Areas Management (estimated costs: US$2.5
million). This component will focus on strengthening the capacity for and
improving the conservation of biodiversity, both nationally and
regionally. Interventions will concentrate on institutional strengthening
and on the management of the four existing and the proposed Mata de
Cantanhez Park, as well as on the conservation of key globally and
regionally threatened fauna (including species of marine turtles, sharks,
migratory birds and colobus monkeys as well as the African manatee,
sea-going hippopotamus, and chimpanzee).
III. Sustainable Community Development (estimated costs: US$1.5
million). This component aims to promote conservation and sustainable use
of biological resources at the local level. Priority will be given to
activities that at the same time help reduce poverty and empower poorer
communities. Activities will be concentrated on communities located in or
around protected areas or within the Biosphere Reserve; these areas will
thus serve as development poles.
IV. Improved Fishersies Conservation and Development (estimated costs:
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US$2.0 millions). Management of the fisheries sector is central to the
question of biodiversity conservation and sustainable development in the
coastal zone of Guinea Bissau and her regional neighbors. Consequently,
the proposed Program will tackle fishery issues that directly have an
impact on coastal biodiversity management. This component will
concentrate its support on increasing the protection of the more sensitive
breeding and nursery grounds that underpin the fisheries ecosystem as a
whole. It will develop and test a new concept and practice for the
conservation of fisheries' resources in Guinea Bissau, namely the
introduction of Fishing Reserves, i.e., fishing zones governed by special
regulations. During this pilot phase, program interventions will focus on
protected areas and their zones of influence.
V. Environmental and Social Safeguards (estimated costs: US$0.7
million). This component aims to strengthen the broad legal framework for
environmental management by financing the establishment of an
environmental impact assessment process, to ensure that environmental and
social safeguards are integrated into development activities. It will
thus support the development, adoption, dissemination and implementation
of environmental impact assessment (EIA) legislation, regulations and
procedures, and capacity building for EIA review and monitoring of
compliance.
VI. Management, Monitoring and Evaluation (estimated costs: US$1.0
million). This component will support the coordination and management
structures underpinning program implementation. It will thus finance: i)
the establishment and operation of a small Program Management Unit (PMU);
ii) the operation of the multi-institutional structures necessary to
ensure coordination amongst various implementing agencies and vertical
integration of program activities within sectoral programs (e.g., national
steering and consultative committees); and iii) the development and
implementation of a monitoring and evaluation mechanism for the overall
program, including a consultancy to undertake periodic independent
evaluations of program impact (including beginning, mid and end term
beneficiary assessments).
5. Financing
Total ( US$m)
BORROWER $0.50
IBRD
IDA $2.00
EC: EUROPEAN COMMISSION $1.00
GLOBAL ENVIRONMENT FACILITY $5.00
SWITZERLAND: SWISS AGENCY FOR DEV. & COOP. (SDC) $0.50
Total Project Cost $9.00
6. Implementation
Implementation period: Five years for Phase I. It is envisaged that a
second phase to this program will be triggered once certain benchmarks are
met, including, inter alia, the establishment of the independent
Foundation's Board (following guidelines for GEF supported trust funds).
During Phase II, the Foundation will shift from a sinking fund to a
permanent endowment fund, still focusing on the management of protected
areas and biodiversity. As part of the follow-on Phase II program the GEF
would be requested to match external contributions to the Foundation up to
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a value of at least $4 million.
Implementation: The detailed institutional, financial, monitoring and
evaluation arrangements have still to be confirmed. Nevertheless, the
program is being designed to maximize participation and ownership by key
stakeholders, both government and non-government. This will require
adoption of an implementation structure with capacity to facilitate
coordination and dialogue between these stakeholders.
Monitoring and evaluation (M&E). Iindependent consultants would develop a
detailed monitoring and evaluation plan for measuring program
implementation progress and impact. This plan will clearly specify the
key indicators/data needs and sources, who will collect the data and how
frequently for each component as well as for the program as a whole.
Participatory monitoring would be used whenever possible, to create a
sense of ownership and to promote community understanding of program
objectives. Impact indicators would be developed in accordance with
guidelines for GEF-financed projects and would include
biological/ecological and socio-economic parameters.
7. Sustainability
The Program, through the creation of IBAP and the IBAP Foundation, seeks
to provide a sustainable institutional and financial framework for coastal
and marine biodiversity management, while keeping the burden on government
to a minimum. Sustainability of IBAP activities will depend upon
securing: i) sufficient financial resources for the Foundation to meet
IBAP's minimum operational and work program needs; ii) an appropriate
governance structure with satisfactory management guidelines; iii) a sound
framework governing IBAP's relationship with its parent ministry; and iv)
commitment of beneficiaries and other stakeholders to participate in the
conservation activities under the program.
Furthermore, recognizing that coastal and marine biodiversity concerns
cannot be addressed in isolation, and will be affected by broader
environmental and natural resource management decisions in and outside the
coastal zone, the program also seeks to establish a broader legal and
institutional framework, primarily in the form of environmental assessment
regulations and harmonization of legislation, to ensure the judicious
management of environmental and social factors and thus promote adoption
of a sustainable economic development path.
8. Lessons learned from past operations in the country/sector
The proposed program has been designed on the basis of the lessons learned
during the past 13 years. It is being developed in concert with an update
of the NEAP and the preparation of a NBSAP, now in its final stages.
Broad-based experience gained by the Bank and others working in Guinea
Bissau; coastal and biodiversity specific experience gained in
implementation of the Bank, GEF and IUCN portfolios; and sustainable
conservation financing (specifically trust fund) experience gained through
the international work of Conservation Finance, the GEF and others all
provide important lessons for the design of the program. Amongst these
lessons, several aspects have been identified as being particularly
relevant in the current Guinea Bissau context. These aspects are:
Government commitment and ownership, human and institutional capacity,
ensuring financial sustainability. GEF and other biodiversity program
experience indicates that the identification of appropriate economic
alternatives for communities and local resource users is a key factor in
changing local resource management practices in favor of biodiversity
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conservation and sustainable use objectives. Community participation and
an adequate understanding of local socio-economic, ecological and cultural
factors are important factors for the successful identification and
adoption of any alternative livelihood activities.
Additional lessons to also be taken into account during program
preparation and design include: i) ensuring on going stakeholder
consultation and participation so as to promote ownership and identify
issues and concerns early on; ii) facilitating dialogue and coordination
amongst government and other key implementation partners so as to promote
synergies and reduce conflicts; iii) building flexibility into program
design so it can readily be adapted to respond to lessons learned during
implementation and/or changing national circumstances; iv) keeping the
burden placed on national budget and counterpart contributions to a
minimum; v) ensuring early on that sufficient administrative and financial
management capacity is in place (including familiarity with WB/GEF
procedures and guidelines); vi) taking a programmatic approach that
coordinate donor support so as to avoid overlaps and gaps; and vii)
establishing a supportive institutional and legal framework, including
putting in place mechanisms that ensure coastal and biodiversity
management issues are taken into account in broader decision-making.
9. Environment Aspects (including any public consultation)
Issues     :  The overarching objective of the program is to
strengthen Guinea Bissau's management of coastal biodiversity for both
conservation and sustainable development ends, with an emphasis on local
communities. As such, the program seeks to maintain or improve
environmental quality, particularly with regard to ecosystem health and
its related biodiversity of global significance. A detailed EA will be
conducted to identify more specifically the potential positive and
negative impacts, and any mitigating measures. Program design will be
modified accordingly.
It should be noted that the current absence of environmental and social
safeguards leaves Guinea Bissau extremely vulnerable to negative
externalities with respect to development of the petroleum and fisheries
sectors, amongst others.
10. Contact Point:
Task Manager
Michel Simeon
The World Bank
1818 H Street, NW
Washington D.C. 20433
Telephone: 1 202 473 5513
Fax: 1 202 473 8185
11. For information on other project related documents contact:
The InfoShop
The World Bank
1818 H Street, NW
Washington, D.C. 20433
Telephone: (202) 458-5454
Fax:        (202) 522-1500
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Web: http:// www.worldbank.org/infoshop
Note: This is information on an evolving project. Certain components may
not be necessarily included in the final project.
This PID was processed by the InfoShop during the week ending
October 25, 2002.
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