Report No. PID7028 Project Name Middle East and North Africa- Implementation... of the Strategic Action Program for the Red Sea and Gulf of Aden Region Middle East and North Africa Region Africa Region Sector Environment Project ID 5MGE63717 GEF Grant Amount US$19.0 million World Bank managed funds US$5.61 million Beneficiaries Djibouti, Egypt, Jordan, Saudi Arabia Northern Somali Coast, Sudan and Yemen Implementing Agency Regional Organization for the Conservation of the Environment of the Red Sea and Gulf of Aden (PERSGA) PO Box 1358 Jeddah 21431 Kingdom of Saudi Arabia Tel./Fax. 966 2 651 4472 Email: persga@computec.com.bh Date this PID Prepared November 1, 1998 Appraisal Date December 1998 Project Board Date January 1999 Background 1. With the support of the Global Environment Facility (GEF), the Regional Organization for the Conservation of the Marine Environment of the Red Sea and Gulf of Aden (PERSGA), which serves as the Secretariat for the Jeddah Convention, initiated and coordinated the preparation of the Strategic Action Program for the Red Sea and Gulf of Aden (SAP). Members of the PERSGA SAP Task Force included representatives of Djibouti, Egypt, Jordan, Saudi Arabia, northern coast of Somalia, Sudan and Yemen. The SAP process was jointly supported by the three GEF partners--UNDP, UNEP and World Bank--and the Islamic Development Bank, which is based in Jeddah. The SAP was adopted by the PERSGA Council of Ministers in 1997 and issued by PERSGA in 1998. Project Objectives 2. The global environmental objective of the Project is to implement the SAP through a series of concrete interventions (see paragraph 5 below); thereby helping to safeguard the coastal and marine environments of the Red Sea and Gulf of Aden Region and to contribute to sustainable use of its resources. 3. The Project's development objective is to design and implement interventions around specific thematic components that improve the capacity of PERSGA and cooperating countries to undertake preventive and curative actions at the regional, national and local level to manage the coastal and marine environment. The Project supports the cooperating countries in implementing the provisions of the Jeddah Convention, other international agreements and national policies and legislation. Project Description 4. The Project includes seven complementary components to be managed by UNEP, the World Bank, and UNDP respectively. Those components are: - Component 1 - Institutional Strengthening to Facilitate Regional Co- Operation (UNEP); - Component 2 - Reduction of Navigation Risks and Maritime Pollution (World Bank;); - Component 3 - Sustainable Use and Management of Living Marine Resources (UNDP); - Component 4 - Development of a Network of Marine Protected Areas-MPAs (UNDP); - Component 5 - Support for Integrated Coastal Zone Management-ICZM (World Bank); - Component 6 - Enhancement of Public Awareness and Participation (UNDP); and - Component 7 - Monitoring and Evaluation of Program Impacts (UNDP). 5. The GEF-Bank supported elements of the SAP include Component 2 - Reduction of Navigation Risks and Maritime Pollution and Component 5 - Support for Integrated Coastal Zone Management (ICZM). The key elements of these components are as follows: (a) Component 2 - Reduction of Navigation Risks and Maritime Pollution. This component will support measures to identify and overcome constraints by cooperating governments in signing, ratifying, and implementing major maritime conventions and agreements. It will also facilitate establishing a regional framework for Port State Control. These policy measures will be complemented by institutional strengthening measures, through the activities of the Navigation Working Group, to provide specialized seminars, training and information on these issues to decision makers and personnel concerned with regional maritime affairs. Additionally, this component will, working with the national maritime authorities, install new aids to navigation and facilitate the establishment of new Traffic Separation Schemes (TSS) supported by hydrographic surveys of areas of high traffic density in the Red Sea and Gulf of Aden. (b) Component 5 - Support for Integrated Coastal Zone Management (ICZM). At the regional level the ICZM Working Group will work to promote and exchange good practices in coastal zone management. In the four southern countries--Djibouti, Sudan, northern coast of Somalia and Yemen--this will be further supported by preparing national "ICZM Frameworks," and undertaking "Model ICZM Plans" to demonstrate these approaches at the national and local level. Seminars and training activities under this component are planned to support the establishment of basic institutional capacities concerning this issue by improving planning, management and enforcement of existing regulations. Project Cost and Financing -2- 6. The total cost for the two Bank-implemented components is estimated to be US$6.23 million, of which GEF will finance US$5.61 million (90%), with US$3.5 million and US$2.11 million for Components 2 and 5 respectively. The GEF grant will finance all foreign and local investment costs and part of the recurrent costs. PERSGA will provide from its operational budget and cooperating governments will provide in kind contributions estimated to be US$0.62 million. The PERSGA contribution will finance part of the recurrent costs including office space, salaries of PERSGA staff members, and some overhead costs. Project Implementation 7. Executing Agency. The Project will be implemented by PERSGA, which gained experience in project planning and management during the preparation process for the SAP. This included regular interaction with representatives of the GEF Partners. PERSGA, with the support of UNDP, has already internationally recruited a Chief Technical Advisor who worked on preparation of the SAP, and an individual with experience in international project management to serve as the Procurement and Finance Specialist. The Navigation Advisor and the Lead Specialists responsible for implementation of the GEF- supported components must have professional training, practical experience and language skills. These individuals will be appointed by PERSGA in formal consultation with the GEF Partners. 8. Project Management. The Program Management Team (PMT) has been established by PERSGA and already has taken an active role in the preparation of the Project Implementation Plan (PIP). Some personnel assigned to the PMT gained earlier experience through their work on preparation of the SAP. To ensure that the PMT will have the required capacity to carry out Project implementation, technical assistance in project planning, procurement, disbursement, accounting, auditing and project monitoring has been included in Project design. Special training efforts will be undertaken during the first year of implementation to allow all members of the PMT to gain an understanding of project management skills and requirements. In addition, a Riyadh-based UNDP-Program Coordinator has been regionally recruited who has previous experience with UNDP and GEF projects and will be able to provide support to the PMT on a range of issues. Project Sustainability 9. Government and Stakeholder Commitment. The cooperating Governments have demonstrated their commitment to regional cooperation for conservation of coastal and marine resources though their ratification of the Jeddah Convention, establishment of PERSGA and participation in development of the SAP. The development of the SAP has been a participatory process demonstrating the broad-based commitment of a wide range of stakeholders in conservation of the Red Sea and Gulf of Aden. 10. Financial Sustainability. Member countries have provided annual contributions in cash to support the work of PERSGA, including implementation of the SAP. The budget of PERSGA for fiscal year 1996 included contributions of US$930,000 from member countries. This was complemented with supplemental support from various international and regional sources. The Kingdom of Saudi Arabia also provides PERSGA with offices and covers selected operational costs. The anticipated support of SAP implementation by the Jeddah-based -3 - Islamic Development Bank, an international financial institution, provides a regionally based source of support for the Project. The planned participation of the European Commission in SAP implementation brings the experience and resources of the European Union to support proposed priority actions. As noted in the SAP, there also exists significant potential for participation of internationally and regionally based private sector organizations through contributions in cash and kind. All operational components of the Project include activities to develop appropriate resource mobilization measures to allow for full or partial funding of routine operational costs. Lessons Learned from Previous Bank Involvement 11. To support preparation of the SAP, the Bank prepared a review of the "lessons learned" from regional environmental programs and evaluated their specific application to the work of PERSGA. The review included evaluation of the experience from planning and implementation of regional environmental programs for the Baltic Sea, Black Sea and Mediterranean Sea and also benefited from experience with the Aral Sea and Danube River Basin Programs. This was supplemented with a detailed review of lessons learned by the Helsinki Commission and World Bank for the updating of the Baltic Sea Environment Program. In addition, the Bank, in cooperation with UNEP and the Mediterranean Action Plan (MAP), prepared an in-depth review of the experience of ICZM in the Mediterranean region. Preparation also included review of recent documents concerning the management of transboundary waters resulting from German and World Bank cooperation--the "Petersberg Declaration" and the "Berlin Recommendations." These reviews indicate three key features for preparation and implementation of a successful program. They include: (a) sustained commitment--demonstrated by the regionally funded operation of PERSGA and willingness of countries to prepare and implement the SAP; (b) a shared vision--provided by the cooperatively-developed SAP which was based on regional and country level studies; and (c) broad-based partnership--provided by the well-established cooperation between PERSGA, the cooperating countries, GEF partners and IsDB. Environmental Aspects 12. The proposed Project has been placed in environmental assessment screening category "C" consistent with the provisions of World Bank Operational Directive 4.01, "Environmental Assessment." Activities for reduction of marine navigation risks, oil spill management and ICZM are focused on planning, management and training activities that will not have an adverse environmental impact. Project-supported studies for installation of a regional Vessel Traffic System (VTS) and model ICZM plans will include preparation of environmental reviews to support integration of these concerns into their design. The establishment of the VTS may require the construction of a small building and support structures which would have minimal impact. Implementation of the model ICZM plans would not involve construction activities. An environmental data sheet is attached. Participation Arrangements 13. The SAP was prepared using an active participatory process and GEF support for SAP implementation includes a component for "Enhancement of Public Awareness and Participation." This component will be implemented by UNDP with support from local nongovernmental organizations and will facilitate work with stakeholders and civil society. The two Bank-managed components of - 4 - the SAP have been designed to provide social benefits to regional populations: (a) Component 2 will assist national governments and local populations in supporting preventive measures to avoid potential adverse impacts associated with navigation accidents and marine pollution. Actions under this component will focus on the reduction of oil spills in coastal and marine areas and lower the incidence and severity of accidents associated with the shipment of oil and other hazardous types of materials through regional waters. (b) Component 5 will provide support on a regional basis, and on a national basis in the four southern countries, to improve participation of communities in management of coastal and marine resources and to improve social welfare by promoting sustainable use of these critical and fragile resources. Special attention will be given to the needs of individuals involved in locally based commercial and artisanal fishing operations. Project Benefits 14. The primary benefit from implementation of the SAP, with support from GEF, will be the long-term conservation and management of the coastal and marine resources of the Region. The benefits of Bank-implemented components will result from actions to strengthen regional, national and local management capacity, and preventive measures to reduce navigation risks and maritime pollution and to promote adoption and application of ICZM. By investing in preventive measures to manage the coastal and marine resources of the Region, the cooperating countries will save much needed resources which would likely be required for future curative actions and reduce the need to address emergency situations. Specific beneficiaries include: (a) Maritime Community will benefit from clearer navigation guidelines and improved conditions and safety of vessel traffic. Nearshore communities will benefit from a reduced threat of spilled oil affecting living marine resources. (b) Coastal Communities. Will begin to see benefits from more coherent and better standardized development practices that follow logical zoning, and make use of environmental assessment and other regulations to provide coastal residents with needed services while protecting them from significant environmental impacts. (c) Tourism Interests. Will benefit from a positive recreation experience that emphasizes the natural resource and cultural values of the Red Sea and Gulf of Aden's coastal environment, which directly contributes toward a sustainable tourism industry. (d) Fishing Communities. Should benefit as the resource base is sustainably managed over time; therefore, it can continue to be relied upon as a way of life. These are among the lowest income populations in the region and special efforts will be undertaken to support their interests in the four southern countries. Contact Point: The InfoShop The World Bank 1818 H Street, N.W. Washington, D.C. 20433 Telephone No. (202)458 5454 Fax No. (202) 522 1500 - 5 - Task Team Leader: Mr. Stephen F. Lintner Tel: 1 202 473 2508 Fax: 1 202 522 0367 Email: slintner@worldbank.org Contact Person at PERSGA: Dr. Nizar I. Tawfiq Secretary General PERSGA P.O. Box 1358 Jeddah 21431 Kingdom of Saudi Arabia Tel./Fax: 966 2 651 4472 Email: persga@computec.com.bh Note: This is information on an evolving project. Certain activities and/or components may not be included in the final project. Processed by the InfoShop week ending November 13, 1998. - 6 -