The World Bank Securing Uganda’s Natural Resource Base in Protected Areas Project Information Document/ Identification/Concept Stage (PID) Public Disclosure Copy Concept Stage | Date Prepared/Updated: 26-Oct-2020 | Report No: PIDC225076 Oct 26, 2020 Page 1 of 10 The World Bank Securing Uganda’s Natural Resource Base in Protected Areas BASIC INFORMATION A. Basic Project Data Environmental and Project ID Parent Project ID (if any) Social Risk Project Name Classification Moderate Securing Uganda’s Natural P174337 Resource Base in Protected Areas Region Country Date PID Prepared Estimated Date of Approval AFRICA EAST Uganda 26-Oct-2020 Financing Instrument Borrower(s) Implementing Agency Public Disclosure Copy Uganda Wildlife Investment Project Republic of Uganda Authority, National Financing Forestry Authority PROJECT FINANCING DATA (US$, Millions) SUMMARY -NewFin1 Total Project Cost 2.30 Total Financing 2.30 Financing Gap 0.00 DETAILS -NewFinEnh1 Non-World Bank Group Financing Trust Funds 2.30 UK-DFID Trust Fund to Support Uganda's NDP 2.30 B. Introduction and Context Country Context Uganda is a low-income country in East Africa with a land area of 238,535 square kilometers and estimated population of 44.3 million people in 2019. In 2019, Uganda’s Gross Domestic Product (GDP) was US$34.4 billion. Uganda’s economy remains heavily reliant on renewable natural resources. Uganda’s long-term development vision is enshrined in the country’s Vision 2040 that seeks to transform Uganda to a modern and prosperous country. The Government of Uganda (GoU) aims to drive economic Oct 26, 2020 Page 2 of 10 The World Bank Securing Uganda’s Natural Resource Base in Protected Areas development through the implementation of a series of six five-year National Development Plans (NDPs). The Third NDP started in July 2020 - it includes a strong focus on sustainable environmental management, jobs, and employment. Uganda has sustained steady economic growth over the last two decades. Under the first two NDPs, the economy expanded more than two times, from UGX64 trillion in FY 2010/11 to UGX128 trillion in FY2018/19 in nominal terms. Over the NDP 1 and NDP 2 period, the economy has remained relatively resilient in spite of a challenging global economic environment, geopolitical challenges, and the deepening impacts of climate change, as evidenced by the rebound in real GDP growth in FY2017/18 to 6.2 percent. GDP per capita has grown from US$807 in FY2015/16 to US$878 in FY 2018/19. Poverty reduction has not yet achieved set targets. The percentage of people living below the national poverty line (US$1 per day) was 21.4 percent in FY2017/18 compared to the NDP 2 target of Public Disclosure Copy 14.2 percent. For the first time in more than a decade, there was a reversal in the poverty levels in 2017, largely due to droughts and crop failures. Average life expectancy is 63 years, and the fertility rate is among the highest in the world. Uganda ranked 127th out of 162 countries in the 2018 Gender Inequality Index. Prevalence rates of gender-based violence (GBV) in Uganda are high compared to both global and regional averages. The Government of Uganda recognizes GBV as a serious problem and approved a National Policy on the Elimination of GBV in October 2016. Poor and vulnerable people typically live in rural areas, have large families, and derive their income predominantly from farming, with high dependency on forests. One in four rural Ugandans lives in poverty compared to just one in ten urban Ugandans. Rural poverty has become further entrenched as a disproportionate percentage of the population remains trapped in subsistence agriculture. A heavy reliance on rain-fed and subsistence agriculture continues to expose the economy to risks from adverse weather, and these risks are likely to grow under most scenarios for future climate change. Sectoral and Institutional Context The Ministry of Water and Environment (MWE) has the mandate for forest sector policy and development and wetland resources. Under the MWE, the Forest Sector Support Department is responsible for formulating forest policies, legislation, and standards, and the Wetlands Department is responsible for wetlands policy and regulation. The National Forestry Authority (NFA), within the MWE structure, manages CFRs. The Ministry of Tourism, Wildlife and Antiquities (MTWA) has a responsibility to sustain tourism, wildlife, and cultural heritage. The Uganda Wildlife Authority (UWA), within the MTWA’s structure, has the responsibility for managing wildlife PAs in form of NPs and WRs as well as for measures to combat illegal wildlife trade and manage human-wildlife conflicts. District local governments (DLGs) are also responsible for providing advisory services to the owners of private forests. Oct 26, 2020 Page 3 of 10 The World Bank Securing Uganda’s Natural Resource Base in Protected Areas Key legal and policy documents governing the sector are the National Environment Act (2019), the National Forestry and Tree Planting Act (NFTPA) (2003), the National Forestry Policy (2001), the Wildlife Act (2019), the Local Government Act (1998), and the Land Act (1998). Participatory forest management approaches, including collaborative and community forest management, are provided for in the national policy framework. Such approaches have been effective in many countries, but in Uganda, they have been adopted rather slowly. There is increased interest in participatory forest management, driven by increasing scarcity of forest products and services, shortage of private land, desire to access land within forest reserves, and emerging realization of the benefits that participatory forest management can bring for local communities.[1] Uganda’s natural forests are being lost and degraded at one of the highest rates in the world despite their importance for tourism and the role they play in supporting other natural resource-based activities. The Public Disclosure Copy total net loss of Uganda’s forests during 2000–2015 was estimated at 1.8 million ha, equivalent to an average annual loss rate of 4 percent. In 2000, forests covered 19.4 percent of the land area, but this had reduced to 12 percent by 2015.[10] Uganda’s recent submission on REDD+ to the UNFCCC[11] indicates that the absolute annual loss of forest has reduced in the 2016-2017 period as compared to the 2000-2015 reference period, from annual average of 50,147 ha to annual average of 28,095 ha. This reduction in the absolute rate of deforestation is due to the overall decline in forest cover (and forest available). Environmental degradation and climate change pose significant challenges to Uganda's economic growth and to livelihoods, especially those of the poorest and vulnerable groups, particularly women. Women in poverty are most reliant on natural resources for their livelihoods and have fewer resources to cope with and adapt to climate shocks and natural hazards. Furthermore, increased scarcity of wood fuels requires women to travel further distances to collect these supplies, which increases their risk of exposure to GBV, and also takes their time away from other economic and household activities. Uganda is also vulnerable to climate change, and its impacts are already being experienced in the region. Forests, wetlands, and protected areas are important for the development of rural areas, for mitigating impacts of climate change, and for building resilience of rural communities to climate change effects. It is estimated that Uganda’s natural capital contributed almost 40 percent to overall wealth in 2014, but forests and wetlands in particular are being lost and degraded rapidly. These resources provide wood fuel, timber, fish, and wetland products and also support tourism. Forests, wetlands, and protected areas (PAs) help reduce vulnerability to economic shocks and climate change, for example, by protecting water resources, slowing down soil degradation, and providing goods and services that support livelihoods and provide safety nets during extreme changes. Many PAs include important wetlands, including riverine wetlands in Katonga Wildlife Reserve (WR), which are considered of national importance, and others protect wetlands of international importance, including those designated under the Ramsar Convention. Natural resources, including land and forests, are critical to recovery from COVID-19. Natural capital is needed more in times of crises as workers who lost jobs and livelihoods in urban areas return to villages, Oct 26, 2020 Page 4 of 10 The World Bank Securing Uganda’s Natural Resource Base in Protected Areas increasing population pressure on forests and natural resources; losses of wage incomes increase dependency of rural populations on natural resources, including agricultural and forest products. Infectious diseases and viruses can have profound consequences for the most vulnerable citizens, most of whom reside in rural and forested areas as poverty is predominately a rural phenomenon. At the same time, these areas are increasingly vulnerable to the spread of zoonotic diseases such as COVID-19, as around three-quarters of all new human diseases emerge from animals. This increased vulnerability could be a combined result of habitat loss as forests have been degraded, as well as the hunting of wildlife. Restoring natural habitats, engaging in community-based information and outreach campaigns, and supporting communities on developing viable alternatives to forest dependency can be vital in preventing and slowing contagion in the case of a pandemic, while providing meaningful support to efforts aimed at preserving biodiversity in the target areas and reducing human exposure to zoonotic diseases. Forests play an important role in the resilience of local communities. Sustainable forest management and Public Disclosure Copy access to services and benefits from forest and wildlife PAs can help vulnerable communities to better absorb and adapt to the impacts of shocks and stressors, among them, climate change. Uganda’s Nationally Determined Contributions to the Paris Climate Agreement place a strong emphasis on adaptation to ensure that all people and communities are resilient to climate impacts. Relationship to CPF The proposed project contributes to the World Bank Group’s (WBG) twin goals of ending extreme poverty and boosting shared prosperity in a sustainable manner. The project is also closely aligned with the Uganda Country Partnership Framework (CPF) (FY16–21, World Bank. 2016. Country Partnership Framework for the Republic of Uganda for the Period FY16–21. (Report #101173-UG). Specifically, the project concept is aligned to support the CPF Strategic Focus Area B: Raising Incomes in Rural Areas and seeks to strengthen natural resources management and build resilience, with particular attention to growing incomes of women. C. Project Development Objective(s) Proposed Development Objective(s) To improve sustainable management of, and increase benefits to communities from, target protected areas in response to COVID-19 impacts. Key Results Beneficiaries of job-focused interventions (number, including women) (CRI): definition - The indicator measures the number of beneficiaries reached by interventions that contribute to the jobs agenda in operations supported by the World Bank. Oct 26, 2020 Page 5 of 10 The World Bank Securing Uganda’s Natural Resource Base in Protected Areas Protected areas under effective management (with project support) (Hectare(Ha)): definition - This indicator measure total area of protected areas (national parks and central forest reserves) that receive support for effective management from the project. Area re / afforested and restored (Hectare(Ha)): definition - This indicator measures the outcomes of reforestation and assisted regeneration undertaken by the NFA within central forest reserves. D. Preliminary Description Activities/Components The proposed project will have two components. Geographically, project activities will be implemented in Public Disclosure Copy selected locations with highest existing pressures, with the focus on the Murchison Falls NP, Queen Elizabeth NP, and Toro-Semliki Wildlife Reserve areas for UWA and the Budongo Forest Range for the NFA. Component 1. Improved management of protected areas Sub-Component 1 – 1.1. Improvement of infrastructure and equipment for the management of forest protected areas (US$0.95 million) - will support UWA and NFA protection and forest restoration activities, including monitoring and patrolling activities, activities aimed at prevention of human-wildlife conflict, and restoration of forest cover through enrichment planting, using community labor as per standard procedures in use by these agencies. This component will also support development of design documentation for some of the infrastructure that will be supported under IDA financing under the Investing in Forests and Protected Areas for Climate-Smart Development Project – initiating development of civil works designs early will allow fast track start of the actual construction. Specifically, the following activities will be financed:  Enhanced monitoring of target protected areas (including national parks and central forest reserves) – including provision of protective gear and food rations to patrolling team and fuel for patrolling vehicles. For the NFA, the project will also provide for purpose for three motorbikes for improved patrolling in Budongo, Bugoma and Kalinzu CFRs.The project will not finance salaries of UWA and NFA staff which are covered by the Government of Uganda.  Human-wildlife conflict prevention – using the approaches that have been piloted and tested in Uganda, including, where appropriate, construction of trenches (using community labor), planting of live fences using Mauritius thorn, planting of animal-repellent crops such as chilli and tea, and establishment of bee hives. These activities will have the double advantage of contributing to reduction of problem animal issues and providing paid employment and alternative livelihoods to the communities.  Fire prevention and fire management activities, in cooperation with communities, including reviewing fire management plans (including community consultations) and opening new fire breaks. Oct 26, 2020 Page 6 of 10 The World Bank Securing Uganda’s Natural Resource Base in Protected Areas  Restoration of forest cover through enrichment planting (in Bugoma and Kasyoha-Kitomi CFRs).  Community awareness on need and importance forest conservation.  Civil works design for priority infrastructure investments. Sub-Component 1.2 –Increasing the involvement of local communities in the management of forest and wildlife areas by increasing their access and benefits from these areas (US$1.3 million) – will support livelihoods and employment opportunities in forest-adjacent communities, through provision of inputs for alternative livelihoods (both natural-resource based and not) and occupational / vocational training in non-tourism fields (in partnership with NGOs where possible) – to create innovative income streams for these communities and support job creation, using ender-inclusive approaches. The project will work through established community groups under the Collaborative Forest Management (CFM) and Collaborative Resource Management (CFM) arrangements under NFA and UWA respectively. Public Disclosure Copy Specifically, the following activities will be financed: For implementation by NFA:  Review, re-negotiation, and signing of expired CFM agreements using the same terms as in the previously negotiated agreements (with approximately 10 groups around Bugoma, Kasyoha-Kitomi, and Budongo CFRs).  Support to development of bee-based value chain within 10 CFM groups, including provision of inputs and training of the communities on bee keeping, value addition, and business skills.  Support to communities for establishment of commercial tree nurseries, using mixed tree and fruit species (10 CFM groups).  Promotion and support to craft making projects among women groups, including training of women groups on craft making and business skills and provision them with craft inputs. For implementation by UWA:  Support at least two problem animal hotspot sub-counties around each of the three target PAs to develop and implement land use plans.  Support established CRM groups with alternative wood and nutritional requirements, through establishment of mixed tree and fruit nursery in each PA for free seedling distribution and provision of inputs and training on rabbit farming;  Training of approximately five CRM groups in honey packaging and marketing from each PA.  Training of approximately two CRM groups from each PA in wood craft designs and market dynamics.  Training of 20 CRM group members from each PA in income generating practical skills like soap and candle making.  Support to valuation of monetary value equivalents for community resource access (as support for planning processes). Oct 26, 2020 Page 7 of 10 The World Bank Securing Uganda’s Natural Resource Base in Protected Areas  Establishment and support to community wildlife scout groups to deal with problem animals outside PAs.  Support to ecotourism community groups, including existing groups that protect natural habitats of chimpanzees and existing private conservation-livelihood model initiatives along the Murchison- Queen tourism road. Component 2 – Project monitoring (US$0.05 million) – will support overall project management and monitoring, environmental and social risk management, financial management and procurement, including cost of field supervision by UWA and NFA headquarters staff. Public Disclosure Copy Environmental and Social Standards Relevance E. Relevant Standards ESS Standards Relevance Assessment and Management of Environmental and Social ESS 1 Relevant Risks and Impacts ESS 10 Stakeholder Engagement and Information Disclosure Relevant ESS 2 Labor and Working Conditions Relevant Resource Efficiency and Pollution Prevention and ESS 3 Relevant Management ESS 4 Community Health and Safety Relevant Land Acquisition, Restrictions on Land Use and Involuntary ESS 5 Not Currently Relevant Resettlement Biodiversity Conservation and Sustainable Management of ESS 6 Relevant Living Natural Resources Indigenous Peoples/Sub-Saharan African Historically ESS 7 Not Currently Relevant Underserved Traditional Local Communities ESS 8 Cultural Heritage Relevant ESS 9 Financial Intermediaries Not Currently Relevant Legal Operational Policies Safeguard Policies Triggered Explanation (Optional) Projects on International Waterways OP No 7.50 Projects in Disputed Areas OP 7.60 No Oct 26, 2020 Page 8 of 10 The World Bank Securing Uganda’s Natural Resource Base in Protected Areas Summary of Screening of Environmental and Social Risks and Impacts Environmental risks and impacts will be moderate, most of which localized and temporary. The project will contribute to improved sustainable management of natural resources, thus increasing benefits to communities from, target protected areas. Notwithstanding, activities under Component 1 are likely to cause low to moderate environmental and social risks and impacts relevant to the World Bank Environmental and Social Standards (ESSs). Anticipated risks and impacts will include spread of invasive species in the conservation areas and national parks, uncontrolled forest fires, soil erosion and disturbance from trench digging, land clearance and fauna disturbance as well as low to moderate OHS risks to the community workers. TA activity may include supporting the development, detailed technical designs for priority infrastructures to be implemented under an ongoing operation. While the TA activity will not per se have direct environmental and social implications, when implemented TA outcomes will lead to substantial risks and impacts that will require proper consideration. Such risks and impacts will mostly occur during construction of the infrastructure investments and it will include soil, vegetation and fauna disturbance and Public Disclosure Copy degradation due to earth movements for preparation of trenches, soil and water bodies contamination through uncontrolled earth movements; waste generation and handling (both solid and sewage); air, soil and water bodies contamination due to civil works debris. CONTACT POINT World Bank Contact : Nigel Ross Hughes Title : Senior Natural Resources Manag Telephone No : 5358+6153 / Email : Borrower/Client/Recipient Borrower : Republic of Uganda Implementing Agencies Implementing Uganda Wildlife Authority Agency : Contact : Sam Mwandha Title : Executive Director Telephone No : 00 Email : sam.mwandha@wildlife.go.ug Implementing National Forestry Authority Agency : Contact : Tom Okello Title : Executive Director Telephone No : 00 Email : tomokello@yahoo.co.uk Oct 26, 2020 Page 9 of 10 The World Bank Securing Uganda’s Natural Resource Base in Protected Areas FOR MORE INFORMATION CONTACT The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 473-1000 Web: http://www.worldbank.org/projects Public Disclosure Copy Oct 26, 2020 Page 10 of 10