Document o f The WorldBank FOROFFICIALUSEONLY ReportNo: 32512-TD PROJECTAPPRAISAL DOCUMENT ONA PROPOSEDGLOBALENVIRONMENTALFACILITYTRUST FUNDGRANT INTHEAMOUNT OFUSD6 MILLION TO THE REPUBLICOFCHAD FORA COMMUNITY-BASEDECOSYSTEMMANAGEMENTPROJECT May 31,2005 Environmental, Rural and Social Development Central Africa Country Department 07 Africa Regional Office This document has a restricteddistribution andmaybe usedbyrecipients only inthe performance oftheir official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective May 2005) Currency Unit = CFA Franc (FCFA) FCFA 1 = US$0.002 US$l = FCFA500 FISCAL YEAR January 1 -- December 31 ABBREVIATIONS AND ACRONYMS ASPOP Agncultural Services andProducer Organizations Project APL Adaptive Program Lending BSAP Biodiversity Strategic Action Plan CBEM Community-Based Ecosystem Management FACIL Local Initiatives Fund(Fonds dgctions Concertkes d'lnitiative Locale) FADN Fight Against DesertificationNational Plan FOSAP Population Support Fund(Fonds de Soutien awc Activitks de Population) GOC Government of Chad IEM IntegratedEcosystem Management LPMU LocalProject Management Unit LDP LocalDevelopment Plan MA MinistryofAgriculture MATUH MinistryofLandManagement, UrbanismandHabitat ME MinistryofLivestock MEW MinistryofEnvironment andWater MD Ministryof Decentralization MIS MonitoringInformation System MPED MinistryofEconomic PromotionandDevelopment MTP Ministryof Transport NEAP National Environmental Action Plan PIDR RuralDevelopment Support Program (Programme d'lntewention pour le Dkveloppement Rural) P I M Project ImplementationManual P M U Project Management Unit PROADEL LocalDevelopment Program Support Project PRODABO Assoungha, Biltine andOuara Decentralized RuralDevelopment Program PRODALKA Lake Lere, Mayo-Dallah andKabbia Decentralized Rural Development Program PSAP Agricultural Services Program sc Steering Committee Vice President: GobindNankani Country Director: Ali M.Khadr Sector Manager: JosephBaah-Dwomoh Task Manager: Valerie Layrol FOROFFICIAL USEONLY CHAD COMMUNITY-BASEDECOSYSTEMMANAGEMENTPROJECT CONTENTS A. Project Development Objective Page 1, Project development objective 2 2. Key performance indicators 3 B. Strategic Context 1. Sector-related Country Assistance Strategy(CAS) goal supported by the project 4 2. Main sector issues and Government strategy 5 3. Sector issues to be addressedby the project and strategic choices 9 C. Project Description Summary 1. Project components 10 2. Key policy andinstitutionalreforms supportedby the project 13 3, Benefits andtarget population 14 4. Institutionaland implementation arrangements 18 D.Project Rationale 1. Project alternatives considered andreasons for rejection 22 2. Major relatedprojects financed by the Bank andor other development agencies 23 3. Lessonslearned andreflected inthe project design 23 4. Indications o fborrower andrecipient commitment andownershp 26 5. Value added o f Bank and Global support inthis project 26 E. Summary Project Analysis 1. Economic 28 2. Financial 28 3. Technical 28 4. Institutional 28 5. Environmental 30 6. Social 31 7. SafeguardPolicies 33 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not be otherwise disclosed , without World Bank authorization. F. Sustainability andRisks 1. Sustainability 34 2. Critical risks 36 3. Possible controversial aspects 37 G. Main Conditions 1. Effectiveness Condition 37 2. Other 37 H. Readinessfor Implementation 37 I.CompliancewithBankPolicies 38 Annexes Annex 1: Project Design Summary 39 Annex 2: DetailedProject Description 45 Annex 3: Estimated Project Costs 51 Annex 4: Incremental Cost Analysis 52 Annex 5: Financial Summary 67 Annex 6: Procurement and Disbursement Arrangements 68 Annex 7: Project Processing Schedule 84 Annex 8: Documents inthe Project File 85 Annex 9: Statemento f Loans andCredits 86 Annex 10: Country at a Glance 87 Annex 11: Flow o f funds 89 Annex 12: Review by Expert from STAP Roster 90 CHAD Community-Based Ecosystem Management Project ProjectAppraisalDocument Africa Regional Office AFTS3 Date: May 31,2005 Team Leader: Valerie Marie Helene Layrol Sector Manager: JosephBaah-Dwomoh Sector@): General agriculture, fishingandforestry sector Country Director: Ali Khadr (100%) Project ID: PO78138 Theme(s): Biodiversity (P), Water resourcemanagement FocalArea: M- Multi-focal area (S), Other environment andnaturalresourcesmanagement (SI For LoanslCreditslothers: GERMANY:BMZ 16.00 6.00 22.00 LOCAL COMMUNITIES 3.60 0.00 3.60 FRANCE: FRENCH AGENCY FOR DEVELOPMENT 2.45 3.00 5.45 GLOBAL ENVIRONMENT - ASSOCIATED IDAFUND 34.43 5.33 39.76 Responsibleagency: MINISTRY OF LANDMANAGEMENT,URBANISM AND HABITAT Address: Ministkre de l'Am6nagement duTerritoire, de 1'Urbanisme et de 1'Habitat Route de Farcha sis enceinte du Ministere des Travaux Publics, B.P. 436 N'djamena, Tchad Tel: 235 51 78 59 Fax: Email: Other Agency(ies): Cellule Permanentede Suivi de la Table Ronde de Genkve IV Address: B.P. 750,N'Djamena, Tchad Contact Person: Mr Abakar Souleymane Tel: (235) 52.07.49 Fax: Email: Ministkre de 1'Environnementet de 1'Eau Address: N'Djamena, Chad Contact Person: Mahadie OuthmanIssa Tel: (235) 52 66 41 Fax: Email: PO78138 Estimated Disbursements( Bank FY/US$m): Annual1 0.50 1.20 1.70 1.90 0.70 Cumulative( 0.50 II 1.70 II 3.40 II 5.30 1I 6.00 11 Project implementationperiod: 4 years Expected effectivenessdate: 0913012005 Expected closing date: 0313112010 A. Project DevelopmentObjective 1. Projectdevelopment objective: (see Annex 1) In 2004, the World Bank approved a Local Development Program Support Project (PROADEL) to assist the Government of Chad to complete the decentralization framework andto designand implement a decentralized, participatory financing mechanism that can empower local communities and decentralized authorities to manage funds for local development. PROADEL will achievethese goals by: (i)strengthening the capacity and responsibility o f local communities and decentralized authorities, (ii) implementingdemand-dnven subprojects, and (iii) supporting the emergmg process of decentralization. PROADEL is viewed by the Government as the key mechanism to support decentralization and community development under the framework o f its Rural Development Support Framework (PIDR). Under the umbrella of the PIDR, the World Bank is also addressing agricultural productivity growth, marketing, and cotton sector reform through the complementary Agricultural Services and Producer Organizations Support Project (ASPOP), while the German Cooperation i s supporting decentralized rural development through more targeted programs in particular geographical sub-regions (e.g. the PRODALKA andPRODABO programs). The GEF Community-Based Ecosystem Management Project under the Local Development Program Support Project, will complement all of the four components o f the PROADEL, as well as some associated aspects of the other baseline projects ASPOP, PRODABO and PRODALKA. As the PROADEL i s structured as an APL, the elaboration of GEF activities has been designed to follow a parallel approach that is structured, yet long-term inoutlook andphasedinstages. Therefore, while this Project Brief outlines the parameters of a first phase o f GEF interventions, it is assumed that in subsequentphases an expansion and replication of these would be developed, covering a much larger cross-section o f the country's most fragile ecosystems, and that a consolidation of institutional and policy reforms as well as environmental monitoring capacity could be supported. This parallel phasing also takes into account a shared strategy with the Government of Chad that the integration o f ecosystem management approaches and methodologies into community-based planning will not only improve the design o f individual PROADEL components, but also serve as durable framework under which a range o f new interventions and collaborations canbe coordinated at the nationallevel. Specific development Obiectives o fthe GEF Proiect: The objective of the GEF Community BasedEcosystem Management Project is to restore some of the Recipient's most fragile ecosystems by enabling local communities to better fight desertification, rehabilitate degraded lands and protect biodiversity. It will be fully integrated into the design and implementation o f the first phase of the PROADEL, whose development objective is to reduce poverty, promote sustainable rural development, and establish a participatory, decentralized financing mechanism for community-dnven development initiatives. The primary vehicle to achieve this objective will be financial and technical support for community-driven, integrated environmental management plans and subprojects that can simultaneously address local development needs and both local and global environmental challenges. The project will also contribute to buildingnational capacity to monitor ecosystem quality and trends, particularly as they relate to biodiversity and land degradation. - 2 - These objectives would be achevedthrough the following activities: co-financing of demand dnven community-based subprojects that improve or restore local ecosystems and that promote better natural resource management, with an emphasis on activities that promotebiodiversity conservation andlandmanagement ; support for the adoption and dissemination o f new technologies andpractices relevant to integrated ecosystemmanagement,biodiversity protection, and soil fertility andrestoration ; elaboration o f participatory management schemes for targeted ecosystemsthat include measures to enhancethe integntyo fkey protected areas inpriority GEF zones ; training and pilot programs to build capacity and know-how, particuarly among riparian communities inpriority interventionareas ; efforts to create a conducive enabling environment for community-based ecosystem management, including improvements to the regulatory andlegislative framework ; technical and material support to improve the environmental monitoring and enforcement capacity of local actors, including decentralized agents o f the Ministryof Environment andWater ; implementation o f a monitoring and evaluation system and integration o f land degradation and biodiversity protectionindicators into the Chadian rural sector monitoring scheme. 2. Key performance indicators: (see Annex 1) Very specific key performance indicators for the project's global biodiversity protection (e.g., level o f threat o f endangered species reduced by at least one category) and sustainable land management objectives (e.g. number o f hectaresunder active reforestation or sustainable forest management) will be developed and tailored for each o f the GEF priority zones. These site-specific key indicators will include the following broad parameters: (i) the number of hectares o f land protected from environmental threats (e.g., deforestation, soil degradation, brushfires); (ii)changes inthe populations of, or level o f threat posed to, targeted species o f global importance, and (iii) evidence o f improved or renewed ecosystem health (e.g., water quality, soil fertility, vegetative cover). Progress toward the project development objective will be also measured by more process-oriented key performance indicators: percentage of targeted communities integrating IEM principles and activities into local development plans (LDPs); number o f types o f different ecosystems under effective, participatory management; number o f communities and intra-community associations capacitated to manage their ecosystems; percentage o f LDPs in targeted areas that actively promote conservation o f globally significant biodiversity or joint management of protected areas; rate o f incremental adoption of sustainable agncultural techniques intargeted areas. More detailed indicators are provided inAnnex 1. Inaddition, the followingindicators willbeusedas triggers for the secondphase : 0 At leastthreeecosystemmanagementschemes havebeenconceived ; 0 At least 40% of the subprojects approved for GEF incremental financing have received their first tranche o f financing ; - 3 - At least 10% of the Local Development Plans (LDPs) in the targeted priority zones contain subprojects eligble for GEF grant co-financing ; At least 2 legal texts are adopted, signed and made publicly available: the application of Law 14 uponwhich project success depends, andthe Law 16 on forestry, fauna and fishing ; The feasibility study for the National Observatory for Natural Resources Monitoring has been completed and approved ; Well-definedparameters andmethodologies for integrating soil degradation andbiologcal diversity into the monitoring and evaluation system of the PIDR are inplace. B. Strategic Context 1.Sector-related Country Assistance Strategy (CAS) goal supported bythe project: (see Annex 1) Document number: 26938-CD Date of latest CAS discussion: December 11,2003 The World Bank Group's Country Assistance Strategy presented to the Boardon December 11, 2003, aims to help Chad make the best possible developmental use o f its new oil revenues (and public resources more broadly) notably by (i) strengthening governance, including institutional arrangements for public resourcemanagementand service delivery; and (ii) enhancing non-oil economic opportunities while reducing sources of vulnerability, notably for the poor. The PROADEL and the proposed Community Based Ecosystem Management Project squarely supports the Bank's CAS, which among other things emphasizes reducing poverty through more sustainable natural resource management and agricultural production. The project would support the two CAS pillars by expanding opportunities for the poor, empowering communities to formulate their needs and to better manage their lands and environments. Through this project, the Bank seeks to contribute to the following result: at least 50 subprojects benefiting communities and addressing natural resources management issues are implementedbasedon their approved Local Development Plans. Moreover, the project will contribute to the decentralization process, animportant element o f the first pillar o f the CAS. la. Global Operational strategyprogram objective addressed by the project: The project's global environmental objective is to enable local communities to combat desertification and rehabilitate degraded lands and to preserve globally-significant biodwersity. As global environmental benefits in multiple focal areas are expected to be generated in some o f the country's most fragile ecosystems-particularly in the area of biodiversity conservation and sustainable land management-the project's global operational strategy is aligned to support the aims and targets o f GEF's OP Objective #12, and its successful implementation will bolster GEF's overarching priorities as outlined inthe Strategic Business Plan. Specifically, the project will contribute to OP#12 Strategic Priorities by increasing institutional andlocal capacity to implement integrated ecosystemmanagement, and through community-based investments based on stakeholder participation and needs that can deliver both domestic and global environmental benefits. Inpromoting (or introducing, inmany cases) holistic approaches to environmental management, the project will also contribute to GEF strategic priorities under the biodiversity focal area, stabilizing fragile ecosystems and catalyzing community participation in the management and monitoring of biodiversity in indigenous areas. The integrated ecosystemmanagement approach aims to reach a balance inthe interlinked objectives of: conservation; sustainable use; andthe fair andequitable sharing o f the benefits arisingout o f the utilization o f natural resources. In t h s way, the project will advance the Government o f Chad's commitments under a - 4 - number o f international environmental conventions, particularly the UN Convention on Biologxal Diversity (UNCBD), the UN Convention on Desertification (UNCCD), and the UN Framework Convention on Climate Change (UNFCCC). 2. Main sector issues and Government strategy: Main sector issues Issue 1: F r a ~ l ecosystemsand loss o fbiodiversitv. Lying at the convergenceo f four major continental e ecological zones (ie., the West African Sahara, the Sahel, the Sudanian zone, and the Central African Forest), Chad's ecosystems are globally significant. They serve as permanent habitats, safe migration harbors, and assimilation zones for a multitude o f unique, threatened species from across the Afncan Continent (e.g., large mammals and reptiles, migratory birds, fish, and unique desert, savanna, and forest vegetation formations). Likewise, the Logone-Chari river system emptying into Lake Chad i s a watercourse o f great global and regional importance. Most o f Chad's critical ecosystems are either not formally protected, or ineffectively protected due to a lack o f resources; moreover, whle environmental protection is a national priority, for much o f the population, meeting basic needs is a more urgent priority. As a result, these unique ecosystems are at risk of serious and irreversible degradation, stemming from poor management of water resources, the progressive depletion and decliningfertility of apcultural soils, the extensification o f apcultural production, and the encroachment o f human settlements on natural habitats. For example, the Lake Chad Basin, which supports a mosaic o f societies and cultures to sustain agricultural and pastoral activities, has been under markedpressure from desertification and environmental degradation accelerated by demand for land and water. Other rivers, lakes, and oases provide key habitats for numerous species, many of whch are endemic and endangered. According to the UNEP World Conservation Monitoring Center, 6 animal species are currently critically endangered (including the addax, the northem white rhinoceros and the black rhinoceros), 6 are endangered(including the Addra and Rhim gazelle, the giant otter, the saker falcon, the African wild dog, and the elephant) and 16 are vulnerable, whle 1i s now extinct in the wild (the Sahara oryx). In the Saharan zone, natural migrations o f addax and oryx have been disturbed by poaching and the effects o f drought. In the Sahelian zone, elephants, ostriches and certain waterfowl species have almost disappeareddue to the loss of vegetation intemporary streams and overgrazing by small ruminants. In the Sudano-Sahelian zone, feline populations (lions and panthers) and large antelopes (Derby Elands) are disappearing due to increased human pressure on their habitat. In the Sudanian zone, where buffalos, giraffes and rhinoceros are threatened, unique vegetal associations combining woody species, shrubs and grasses are found in great variety, but are threatened by expanding agricultural activity. In addition, poor management of fish resources has led to the near-disappearance o f certain fish species (eels, capitaines, etc.) due to overexploitation and water pollution. Issue 2: Desertification, land degradation, and land-use conflicts. Desertification, soil degradation, deforestation and decline in the quantity and quality o f water resources are phenomenon that have worsened in Chad over the last thirty years. The seriousness o f these threats is mounting and their socioeconomic effects are becoming increasingly evident. Although Chad signed and ratified the UNCCD and has elaborated an accompanying National Action Plan (NAP) partially integrated into key rural development strategies, financing, capacity, and coordination barriers have checked a scale up in the implementation o f activities that could generate a measurable reversal in land degradation trends. Land-use conflicts betweenpastoral andagricultural activities have intensified, contributing to migration pressures and undermining social cohesion. Production capital is threatened and in some cases already compromised by land degradation and soil erosion, deforestation, and desertification, subjecting the population in several areas to precarious economic conditions and sometimes forcing - 5 - them to migrate. The perpetuation of open-access land-use policies threatens the integrity and sustainability o f Chad's natural assets, particularly its forests, woodlots, and pasturelands. Brushfires, an unsystematic distribution o f water points, and lack of respect for existing grazing corridors are threatening biodiversity inthe pasturelands. With population growth and migration (particularly in the Sudanian zone), natural vegetation in wetlands, prairies, and woodlands are being systematically cleared for food production. Demographic pressures and the growing pains o f economic development are creating a vicious cycle o f mounting ecological damage and low rural productivity. To meet basic human energy needs, almost the entire population depends upon the unsustainable consumption of wood fuel and charcoal. And the rural production o f firewood and charcoal contributes little to the communities where the resources are located, because a supportive regulatory framework and local management structures are lacking. As a result, "rings" o f desertification and deforestation have developed around major population centers (e.g., N'Djamena, Moundou, Ati, Abtcht, and Bongor); moreover, these practices add to Chad's net greenhouse gas emissions and reduce the fertility and carbon storage capacity o f its soils. These pattems are reinforcing poverty and curbing the future economic growth potentialof the country, particularly inthe ruralsector. Issue 3: Weak organization of rural communities and limitedinvolvement in decisions concemine:their development. The range of environmental challenges impeding Chad's sustainable economic development are intimately connected to weak local govemance structures, particularly in the domain o f natural resources management. While Chad's development priorities emphasize the imperative to ensure the long-term health and productivity o f its natural resourcebase, and the Government o f Chad supports policies that integrate natural resource management into decentralized structures and plans, the processof decentralization is still inits early stages. Only a few projects have set up informallocal development decision bodies, but they remain in the pilot stage and depend on donors for financial support. A weak framework for decentralized environmental govemance has contributed to a rise in conflict over land use, particularly between demand for agricultural activities and existing wildlife and protected areas. Likewise, the Chadian legal framework regarding environmental management discourages participatory environmental management schemes and could benefit from some additions or modifications, especially those pertainingto landtenure andsecurity. Issue 4: Weak local capacities. and limited technical and environmental knowledge base. National capacity to manage natural resources and ecosystems, particularly protected areas and their buffer zones, i s very limited.One o f the principal constraints to the protectiono f Chadian ecosystems includes weak capacity for monitoring and enforcement of the protection of protected areas, including lack of equipment o f personnel of the Ministry o f Environment and Water (MEW). Fewer than 500 agents in the Ministry o f Environment and Water are charged with environmental andor water management in the entire country, and budgetary constraints are severe. Training decentralized agents o f the MEW and traditional authorities in the management of ecosystems is minimal, and there are few means to undertake surveys and inventories o f indigenous species and other natural assets. While climatic and demographc factors are among the root causes o f desertification and biodiversity loss, lack o f appropriate natural resources management skills confounds the situation. Available techmques for reducing soil erosion, improving soil fertility, and increasing woody biomass could be used widely given adequate support for capacity building. Such techniques would also have a positive impact on reducing greenhouse gas emissions and promoting carbon sequestration. Exacerbating this is the limited informationbasis for long-term environmental monitoring and decision-making, particularly in the rural space. Only basic data on protected areas is available, while wildlife censuses in many areas are often more than 25 years old. N o ongoing scientific observation o f desertification is takmg place, and most decisions and interventions are made on limitedlocal and oftenbiased mformation, leading to poor resource rationalization. - 6 - Additional information regarding the main challenges and barriers to promoting decentralized natural resourcesmanagementand community-based IEMis provided inAnnex 4 (Incremental Cost Analysis). Government'sstrategy The Poverty Reduction Strategy. With 80% o f the population living on less than $1a day, Chad is one o f the poorest countries inthe world. Poverty is most prevalent inrural areas, where about 80% o f the population resides; rural areas must be the primary target o f interventions aimed at reducing poverty andincreasing growth. The Government of Chadadoptedits Poverty ReductionStrategy Paper (PRSP) in June 2003. The GEF project is designed to support the implementation of the PRSP, whose five axes touch upon many o f its core objectives, including promoting good governance and the restoration and conservation of fragile ecosystems.The project will advance participation o frural communities in local development and the establishment of linkages between decentralization and ecosystem management, whch is a strategic objective o fthe PRSP. Rural Develoument Strategy. The Government's rural development strategy was presentedto donors at the Geneva IV Sectoral Consultation on Rural Development in June 1999. Its objective is to increase production in a sustainable way that preserves the environment while reinforcing institutional and human capacities. The key elements o f the rural development strategy are: (i) increasing agricultural productivity in a sustainable manner; (ii) supporting development o f competitive suply chains; (iii) promoting sustainable management and development o f natural resources; (iv) improving promoting the rural sector; (v) and improving the efficiency of the public sertor. Concerning the promotion of natural resources and rural productivity, the strategy emphasizes the following aspects: (i)the consultation and consensus-building with rural communities; (ii) promotion o f better soil and water the management; (iii) the participatory management o f the rural space, conservation o f biodiversity, and prevention o f desertification and deforestation under an integrated ecosystem management approach; and (iv) the integration of priority national actions and strateges under major international environmental conventions inlocal andregional development plans. National EnvironmentalAction Plan NEAP). The NEAP, elaborated with the assistanceo f UNDP and the World Bank, defines the Government o f Chad's broad strategic principles and establishes its long-term priorities for environmental protection. The NEAP seeks to establish a collaborative framework for the implementation o f activities by the Government, international partners, andNGOs, while raising awareness and increasing the participation of all stakeholders in sustainable natural resourceutilization. Through a comprehensive analysis o f the state o f the environment inall domains, Chad's NEAP advocates several measures to enhance the management o f the country's fragle ecosystems. The NEAP is expected to be executed on the ground through local village, cantonal and departmental development plans, taking into account local needs through cross-sectoral planning. Indeed, a number of the priorities covered under the NEAP would be addressedinthe implementation of the GEF Community-Based Ecosystem Management project and selected aspects o f the baseline projects under the PIDR. The NEAP andrelevant associatedlegslationwill soonbe adopted as official government policy. - 7 - National Biodiversiw Protection Strategy and Action Plan (BSAP). The Government o f Chad ratified the UNCBD in 1994, and under the direction o f the High National Committee on the Environment subsequently developed a National Biodiveristy Protection Strategy and associated Biodiversity Strategic Action Plan (BSAP). The overall thrust o f these are to ensure for the sustainable exploitation of biodiversity in Chad, taking into account the development aspirations o f the population and reconciling the objectives of local economic development with those of biochversity conservation. The BSAP highlights the urgent need to develop and apply innovative and holistic approaches toward the management o f environmental resources, attitudes, behaviors and initiatives. Its five core objectives are to: (i)improve knowledge and monitoring o f biological diversity; (ii)inventory ecosystems and threatened species andreduce criminal acts (inparticular bushfires) inand around protected areas; (iii) increaseuse o f substitution resources, including consumption o f wood energy; (iv) adopt techniques for a more sustainable exploitation o f agnculture, fisheries, and forests in order to conserve biodiversity; and (v) promote a more equitable sharing of the benefits of biodiversity exploitation and promotion of collective responsibility and community-based actions to promote biodiversity conservation. National Action Plan Against Desertification (NAP).The Government o f Chad signed the UNCCD in September 1997 and adopted its National Action Plan (NAP) to combat desertification (Plan d'Action National de Lutte Contre la DCsertification) in September 2002. The NAP aims to safeguard Chad's most important and threatened ecosystems, while improvingnational policies and capacity to preserve the production potential of land and water and to mitigate the effects of drought. The NAP has four overarching objectives: (i)to protect, restore and develop Chad's productive potential to achieve sustainable agriculture and livestock production, protected and enhanced fisheries, and to promote human habitat planning in a manner respectful o f the environment; (ii)to protect and safeguard important and threatened ecosystems, inparticular, Lake Chad, Lake Fitri, the Ouadis, the oasis and the koro lands ; (iii) buildhuman capacities and adapt legal and institutional frameworks to combat to desertification, particularly among rural populations, NGOs, andpublic agencies ;(iv) to manage risks and uncertainties exacerbating the fragility of ecosystems and human-induced drivers o f land degradation. A National Coordination Committee and focal point attached to the Cabinet o f the MEE (established by decree N o 0041MET/DG/95) ensures the coordination, implementation and follow-up of urgent actions. Regional and local committees have also begun to formulate regional action plans. Through the GEF project, national and regional NAP priorities will be better integrated into local development plans inpriority areas. Ramsar Convention on Wetlands. Under the Ramsar Convention, which the Government o f Chad ratified in 1990, three wetlands whose ecologxal services are o f global significance and national importance were identified in the country: the Chadian part o f the Lake Chad, the Logone River flood plains, and Mayo-Kebbi watershed basin. With the assistance o f WWF, an inventory o f these areas was carried out in 2000. As a Party to the Convention, the Government o f Chad is obliged to support the conservation and the rational use of these wetland areas, some of which are contained within the GEF project's priority interventionzones. - 8 - 3. Sector issuesto be addressed by the project and strategic choices: Activities under the project would address the main issues describedinB.2, as follows: Issue 1:Fragile ecosvstems and loss o fbiodiversity. The natural resource management practices o fthe communities participating in the PROADEL and other decentralized development programs under the PIDR have the potential to positively or negatively impact some o f the country's most environmentally fragile areas. The project will support investments and capacity-building activities that will improve the conservation of key ecosystems and the implementation of community-based integrated ecosystem management plans that address biodiversity conservation and land degradation (e.g., community forestry, pilot pastoral projects, soil erosion management, and fertility enhancement techniques). Through activities geared towards increasing the fertility and management o f agncultural and pastoral lands, the project will complement baseline poverty-reduction and vulnerability-reducing activities, a root cause of ecosystem deterioration. The project would also support the planning, financing, and implementation of intercommunity, environmental management schemes, such as jointly-managed protected areas andwatershedmanagementplans. Issue 2: Desertification, land degradation. and land-use conflicts. Capacity buildingand investments in disseminating improved land management technologies and practices will enhance soil fertility, reduce erosion and water run-off, improve carbon retention in soils, and improve landscape planning and management. Targeted research in the project preparation phase has identified the most appropriate, economically viable sustainable land management interventions in each priority intervention zone. In the area of Mondou, the secondlargest city, sustainable woodfhel management andcommerce through the introduction of user fees/taxes will be promoted, as well as alternative energy carriers and more efficient cook stoves. Landtenure issues andlegislationwould receive special attention inthe design of intercommunity ecosystemmanagementschemes. Issue 3: Weak organization of rural communities and limited involvement indecisions concerning their development. Currently, only limited funding mechanisms exist to support natural resource management and integrated ecosystem management processes at local levels and few micro-finance programs have ever focused on environmental issues. The project would finance physical, socioeconomic and productive investments identified and managed by local communities to improve their local ecosystems, while buildingthe managerial andplanningcapability o f those communities and increasing transparency and accountability at the local level. The involvement o f women and other underprivilegedgroups (youth, transhumant herders) intheir community's development planningwould receive particular attention. Project activities will address sustainability constraints by "institutionalizing" decentralized development funding mechanisms for environmental management activities, including micro-investments eligible for support under fhture oil revenue-sharing plans. In addition, the project would support reforms to the legislative and regulatory framework to promote the transfer o f natural resource management to communities and strengthening the capacity o f decentralized technicians responsible for environmental protection to work with communities on joint conservation activities. The project would also assist recognized decentralized entities to adopt sound economic and fiscal frameworks to sustain the protection and restoration o f fragile ecosystems. - 9 - Issue 4: Weak local capacities, and limited techmcal and environmental knowledae base. A unique training strategy has been developed to involve communities and marginalized groups in natural resource managementandbiodiversity conservation, andto ensurethat local actors have the capacity to contribute to the design o f ecosystemmanagement planningand implementation. At the national level, the project would establish an environmental information management system and adopt a regulatory and fiscal framework to encourage protection and restoration of natural resources. The project would expand the scope and national coverage o f existing environmental management information systems, promote new tools for monitoring and evaluating the ecosystem trends (i.e. national Geographic Information System panel database). Inaddition, support will be provided to integrate key parameters onbiodiversity conservation and land managementinto the Rural Development MonitoringSystem. Key strategic choices made duringproject preparation and design were to: Mainstream IEM into participatory, decentralized development planning;by linluna GEF incremental activities to PROADEL. The GEF project has been designed to complement and support the Government's Rural Development Support Program (PIDR), by overlapping IEM approaches into community-based development planning. Ths strategy will create synergies with, and is fully consistent with the implementation strategies of, Chad's NEAP and other key environmental policies relating to biodiversity conservation and ecosystem management. A participatory approach toward project preparation and implementation will demand decentralized powers and resources at the lowest level o f intervention. The core thrust o f GEF activities run in parallel to all the four components of PROADEL: (i) co-financing integrated ecosystem management sub-projects, mainly in GEF `priority zones' and excluding any projects on the `negative list'; (ii) integration o f IEM into local planning exercises and capacity building in natural resources and ecosystem management in targeted communities; (iii)assessment and potential modifications of the regulatory framework to promote community-based IEMandjoint managementof protected areas; and (iv) M&E of ecosystemtrends, in particularly biodiversity loss and land degradation, inthe context o f the rural development monitoring system. Maintain appropriate balance between a `top-down' and `bottom-up' approach toward interventions. Local development plans formulated by communities and accompanying capacity buildingwill be the project`s primary vehicles to balance tensions between `top down' and `bottom up' approaches to ecosystemmanagement. Through sensitization programs andparticipatory diagnosis andmonitoring o f local ecosystems, communities will have input into the design o f scientific studies and potential legal and regulatory reforms undertaken at more `top down' levels. In addition, conventions or charters established among riparian communities will ensure that communities are fully vested and can coordinate in the identification and implementation of eligible subprojects at both the community and communal levels. C. Project Description Summary 1. Project components (see Annex 2 for adetailed description andAnnex 3 for a detailedcost breakdown): The project has four components: (i) Financial support for community-based ecosystem management subprojects, (ii)capacity building for integrated ecosystem management, (iii) for an enabling support environment for community-based ecosystem management, and (iv) management and monitoring support. -10- Component 1: Financial supportfor community-based ecosystem managementsubprojects The GEF project will co-finance subprojects to support community-based ecosystempreservation and natural resouce management activities within the GEF Priority Zones. Eligibility will be restricted to activities that are requestedby communities and fit into their LocalDevelopment Plans (preparedunder the baseline) and the ecosystem management schemes (prepared under Component 2). Some of the activites likely to be eligible include, inter alia: the reforestation and rehabilitation o f gallery forests; development o f grazing corridors; community co-management of protected areas; introduction of ago-forestry techniques; development o f local drought management plans and bushfire awareness and control programs; and pilots to demonstrate or disseminate more sustainable, alternative energy technologies and practices, such as more efficient cooking stoves. To avoid capture o f resources by elites, the project would ensure that every process (subproject identification, selection, and implementation) is participatory and management o f resources is transparent. To ensure sustainability o f investments, beneficiary contributions would be mandatory, with local maintenanceresponsibility. Component2: Capacity buildingfor integrated ecosystemmanagement Subcomponent 2.1:IntegratedEcosystem Management Schemes The GEF grant will support collaboration between key stakeholders to pursue integrated ecosystem managementpriorities at larger scales and to prepare sustainable andlong-term ecosystemmanagement schemes in GEF priority zones, through the provision o f technical and organizational assistance. This will include (i) charters or conventions between ripariancommunities that codify their intent to binding cooperate and co-manage fragile ecosystems in partnership with local government, traditional local authorities, and decentralized agents o f the MEW, and (ii) identifyingbeneficial subprojects that could be implemented at the community level. Subcomponent 2.2: Training of actors The project will support training activities to the benefit of the communities and technical service agencies on ecosystem management. Specific training will be elaborated, such that the conceptualization o f subprojects (i.e. those aimed at reducing soil erosion, maintaining forest cover, promoting local tourism) can address biodiversity conservation andbroader ecosystem challenges, such as watershed management. The project would disseminate an Integrated Ecosystem Management Guideline Document as a capacity building tool for consolidating approaches in local development planning. Component3: Supportfor an enabling environmentfor community-basedecosystemmanagement Subcomponent 3.1: Improvement o f the legal andregulatory framework This would consist of analytical support to establish a sound legal and regulatory framework for community participation inenvironmental management andjoint managemento fprotected areas. Some o f the more ugent priorities are to support the application o f the Law 16 on Forestry, Fauna and Fishing, its extension on the taxation of forest resources to the other cities o f the country, and the finalization o f the decrees o f Law 14/98. The project will also assist in the validation, awareness raising, and support for campaigns to advocate for these reformsby andamong communities. - 11 - Subcomponent 3.2: Institutional support Support would be extended to better identify capacity needs and fiscal reforms necessaryto implement the legal and regulatory reforms advanced in subcomponent 3.1, particularly among the relevant line ministries. As with subcomponent 3.1, advocacy campaigns to effect more decentralized in environmental governance and the validation by communities o f selected reform measures would be supported on a demand-driven basis. Inaddition, institutional andtechcal capacities o f MEW would be strengthenedunder this sub-component, to improve skills, monitoringandenforcement powers. Subcomponent 3.3 : Sustainablefinancing This subcomponent will support the promotion o f partnerships between communities and external sources of financing outside o f the GEF to sustain ecosystem management schemes. The project will prioritize (i) support to the Government for the definition and implementation o f a National Fund the for the Environnment, and (ii) support for the development o f a framework for community the parnterships that could assist communities to identify long-term co-financingof ecosystemmanagement activities, enhance cooperation with international foundations and NGOs, manage their legal and financial interests vis a vis potential international partners and private companies, and design pilot projects eligible for international investment under emergmg environmental market schemes, such as carbon finance. Component4: Management and monitoring support Subcomponent4.1: Support to proiect manapement Day-to-day management o f project activities would be assured by the PMU o f the PROADEL and additional staff would be recruited by the Ministry o f Land Management, Urbanism, and Habitat: a GEF Specialist, an assistant for monitoringand evaluation, andanGEFaccountant. Subcomponent4.2: Support to proiect monitoring andevaluation Ths subcomponent will finance the monitoring and evaluation of the project's impacts as well as the outcomes of its investments incommunity basedecosystemmanagementsubprojects. Subcomuonent4.3: Monitoringo f ecosystemmanagementat the national level The project will strengthen the monitoring and evaluation system of ecosystem management at the national level, through inter alia supporting a feasibility study for the establishment o f a National Observatory o fNaturalResources. - 1 2 - The table below shows the allocation of the grant proceeds among project component. These allocations do not include the US$ 23 million of the IDA Grant to which this GEF project is partially blended. Indicative Component costs %of (USSM) Total _i Financialsupport for communitybased ecosystem 2.70 32.1 2.50 41.7 managementsubprojects Capacitybuilding for integratedecosystem 1.60 26.7 management I Support for an enablingenvironmentfor 0.70 11.7 ~~ community-based ecosystemmanagement Management andmonitoring support 2.12 1.20 20.0 Total Project Costs 100.0 6.00 100.0 Total FinancingRequired 100.0 6.00 100.0 2. Key policy and institutional reforms supported by the project: As the underlyingbasis for economic growth inChad continues to improve with the transition to the oil era, it is critical that conservation and sound natural resource use frameworks are more effectively integrated into development planning, thereby precluding irreversible environmental damage and to sustain the natural capital basis upon which the country's rural population depends. Toward this end, the Government of Chad is bolstering its laws and regulations pertaining to both local environmental management and national and sub-regional protection o f critical ecosystems. At the same time, the Government has been assistedby the Bank and other donors in undertaking an ambitious program o f decentralization. The GEF project would accompany and support both the decentralization and the environmental protection agendas. The project will help to secure a sound regulatory framework for decentralized environmental govemance as compelled by the Chadian Constitution, and the integration of natural resource management with rural development policies andplanningprocesses. Specifically, the project aims to implement interventions through decentralized development plans and subprojects conceived under the framework of the PIDR.The project will support the review of the existing legal framework for decentralized environmental govemance, and promote the elaboration o f decrees o f application o f National Law No. 14 on Environmental Protection, including regulations pertaining to exploitation and conservation o f forests, wildlife and fisheries. Specifically the project will also support t h s policy reform through: 0 promulgating laws transferring some naturalresource management prerogatives to users; 0 implementing the National Environmental Action Plan (NEAP) and associated legislation and reforms at the community level; 0 strengthening the institutional capacity of agencies responsible for naturalresource management; 0 establishing an environmental information system; and 0 consolidating community plans for improving household energy management in connection with -13- biodlversity conservation initiatives, 3. Benefitsand target population: The primary target populationof the GEF project is the same as those of the baseline projects, namely rural communities. Communities are defined as people living in one or several villages, districts, ferricks, or encampments, sharing use o f the space and surrounding natural resources. Service providers would be contracted to support communities in participatory assessments and Local Development Plan preparation and implementation. Marginalized groups, including women, transhumant herders, and other underprivileged groups would be actively targeted to ensure that they: (i) theirshareofbenefitsfromprojectactivitiesand(ii) abletoeffectivelyparticipatein receive are decisions affecting the program and the development o f their community. Other beneficiaries be strengthened by the project would be decentralized authorities, non-govemmental organizations (NGOs), and service providers. For strategic reasons and resource limitations, integrated ecosystem management activities will be prioritized in a limitednumber o f GEF priority zones inthe first phase. These zones were selected in partnership with Chadian stakeholders and development partners at appaisal from among a longer shortlist, basedupon an evaluation o f each site against pre-defined criteria, including: 0 Coverage o f major environmental challenges and root causes o f unsustainable development, and diversification o fmajor ecological zones inthe country; 0 Presence o f globally significant biodiversity assets andvulnerability o f local ecosystems (including evidence of extensive landdegradation); 0 Equitable geographcal distribution of project activities and likely diversity o f various types of eligible subprojects; 0 Assurance that GEF activities supplementand do not duplicate efforts of other projects; Ready ability to adopt a community-based approach; 0 Community expressionorjustification o f immediate needs; 0 Ability to quickly acheve replicable andcost-effective scale-up o fresults onthe ground. The GEF priority intervention zones are: Lac Weye and the Moundou Charcoal Supply Basin; Binder-LCrC Wildlife Reserve and Lac LCrC; Bahr el Gazal; the Ouaddai-Biltine Watershed System; andthe Mandelia Fauna Reserve (see additional details on these sites below). These areas encompass significant protected areas and peripheral buffer zones that harbor globally significant environmental assets andhighlythreatenedspecies, such as the manatee, addax, orxy, andDerby eland. Sudanian Zone/Southwestem Chad-Binder-LCrCWildlife Reserveand Lac LCrC Located in the PRODALKA intervention zone, this area in the Southwestem comer bordering Cameroon envelopes the Binder-LCrCWildlife Reserve in which Lac LCrC and Lac TrenC are situated, as well as other protected areas, including the Yamba-Bert6 Forest Reserve. Inaddition, a network o f small lakes, swamps, and flood plains along the Kebbi and Kabia Rivers serve as important buffer - 1 4 - zones against encroaching desertification. Withinthe two lakes andthe Binder-Ltrt Wildlife Reserve, a diverse number o f species can be found, including: crocodile, hippopotamus, elephant, antelope, eland, red hartebeest, rare turtles, warthog, lion, ostrich, gazelle, giraffe, buffalo, and panther. Perhaps the most threatened species is the manatee, which has been spotted in the two lakes. While the area has been subject to some limited ecosystem management planning and interventions under the previous German Cooperation-financed project PCGRN (Projet de Conservation et de Gestion des Ressources naturelles duns Mayo-Kebbi Ouest), the ecosystems in the area remain highly fragile, threatened by erosion and siltation and subject to mounting ecological pressure from the expansion o f agricultural and other subsistence activities, including over-grazing, poaching, and unregulated brick and charcoal production. An integrated watershed management approach, llnking the two environmental objectives o f land degradation and biodiversity protection, would appear to be able to ameliorate the lake ecosystem. The site already profits from the existence o f Local Authorities Decision Committees established under PCGRN or PRODALKA to ensure stock management o f piscicultural species, but these have not yet undertaken any concerted activity for the protection o f the water resources or the promotion of integrated watershed management. Among the community-based ecosystemmanagement activities that could be anticipated in this zone include: (i)stabilization o f the banks of the two lakes and possibly along the Mayo-Kebbi Rwer tributary, efforts to control siltation carried from as far as the Gauthiot Falls, and measures to combat soil erosion related to agricultural activities; (ii) agroforestry, afforestation, and sustainable charcoal production activities; (iii)techcal training and provision o f material equipment to intensify monitoring against fish overexploitationandpoaching; (iv) actions to support ecotourism, preparation o f a tourist map depicting localbiologicaldiversity, training o f guides and wildlife guardians; (v) sensitizing populations to avoid destruction o f habitats o f wild fauna, such as elephants; (vi) redefinition o f the system o f monitoring and control over resource exploitation; (vii) installationo fregulationsystems andtechnology to avoid pollutiono f the lakes. SudanianZoneISouthwestem Chad-Lac Weve andMoundou Charcoal Suuulv Basin Located in the intervention zone o f PROADEL in the vicinity o f Moundou, Lac Weye is strongly threatened by pollution and land pressures. Given its proximity to the city o f Mondou, its banks are eroded and its shores are being rapidly deforested to supply wood fuel to the city. Forest cover i s declining and indigenous species are threatened (Derby eland, giraffe, buffalo, hippopotamus, tortoise, monkey, khaya). Despite being classified as a forest, biomass species have not been inventoried, and the area has been reduced to a state of gallery forest and scatteredthicket as a result of bushfres and clearing by the local population. Ago-fishermen and pisciculturists are already organized and have profited from pilot projects in fisheries management. GEF activities would develop a concerted integrated ecosystem management scheme to conserve biodiversity whle improving water and soil management, as well as better rationalizing domestic energy production and consumption, such as putting in place sustainable forest management plans. Community forest management, agroforestry, and the introduction o f more sustainable agricultural and charcoal production techniques could bring a variety o f local benefits inthis zone. - 15- Sahelo-Sudanian ZonelWestem Chad-Mandelia FaunaReserve The Mandelia Fauna Reserve of 138,000 ha in the periphery o f NdjamCna was originally created to protect the elephant populations. However, over time, the Reserve has been increasingly subject to humanoccupation and cattle migrations, which has challenged its very integrity. The elephants have taken refuge in a frontier park in Cameroon, but annually return and face the hostility o f the local populations. The Reserve does not benefit from any particularly strong protection measures, but the Rural Development Support Project (PADER) has carried out some mapping studies in the area. A local association is worlung to protect the forest and some private parties are interested inpromoting the site for recreational purposes and eco-tourism. Sahelian ZoneiNorthem Chad-Bahr El Gazal PROADEL envisages intervening for its t h d year in this zone, whose dryland ecosystems are mainly degraded by concentration of transhumant cattle. Pastoral management pilots have been reasonably successful in this area in the past, but have yet to be scaled-up. Several potential sites exist for rehabilitation o f salt curing, restoration o f degraded pasture zones in the south o f Moussoro, or the stabilization o f the dunes close to Chaddra. Collaborations are also envisioned with local NGOs developing a new inter-community approachfor the environmental protectiono f the ouaddis. SahelianZoneEastem Chad- Ouaddai-Biltine Watershed System Located inthe PRODABO interventionarea inthe far eastem area o f the Sahel, the ouadis are home to most o f the human settlements in the region and currently under pressure from an increased influx o f refugees from the Darfur region o f the Sudan. A system o f intersecting watersheds can be regarded as the veritable life veins of these settlements. The GEFpriority zone will encompassthe Batha Riverand flood plains, augmented during the rainy season by the Ouadi Hamrah and Ouadi Saria. This watercourse winds through the Cantons of Abker, Korio, and Kognere, eventually flowing toward Lake Fitri. In the dry season, the watershed is threatened by its use as a corridor for transhumant pastoralists, a land transport artery for agricultural products, and as a settlement area for refugees. These activities are intensifyingthe degradation o f river banksand the siltation o f the river bed. Gallery forests have been cleared to make room for agriculturalproduction, with an average exploitationperiod of plots o f just two years, as well as for wood fuels. Likewise, unique biomass species such as the Seyal Acacia have been pruned for fodder. Other threatened biodiversity include warthogs, desert rodents, gazelles, andsavannababoon. The intervention area is also inthe proximity of a proposednew protected area, the Goz-Beida Forest. -16- Table 1: TentativePriorityGEFInterventionZones andKey EnvironmentalThreatsto be Addressed Ley environmental ;EF Priority epartmentsin iepartmentsin Departments hreats nterventionZones IEFPriorityZones :EF Priority nGEF nder PROADEL ones under PriorityZones RODABO under PRODALKA 0 Weak protected Mandelia Fauna 0BarhSignaka areas management Reserve 0Loug-Chari systems. 0 Water management 0 Soil erosion inhilly areas. 0 Soil infertility. 0Lac Weye an 0Lac Weye 0MayoDallah MoundouCharcoal. 0Lac Ltre 0 Richbiodiversity 0Kabia and critical habitats Supply Basin not well protected. 0Binder-Led Wildlife Reserve 0 Landandforest clearing and marsh andLac Lere draining. 0 Water managemenl and pollution control. 0 Encroaching 0 BahrElGazal 0 BahrElGazal 0 Ouara desertification. 0 Assoungha 0 Ouaddai-Biltine 0 DjoufAl-Ahmi 0 Oryxandaddax 0 Biltine specieshighly 0 Watershed Systerr threatened. 0 Droughts, soil erosion, deforestation, and bushfires - 17 - Expected benefits Expectedbenefits of the project are: Strengthened local capacity for integrated ecosystemmanagement: (i) toplan,implement,andmonitorLocalDevelopmentPlansandassociatedIEMandnatural Ability resourcemanagement subprojects; (ii) replicablelessonsincommunity-basedIEMgainedthroughfullyparticipatoryprocesses; Globally (iii)Improvedandmore durable environmental dormation management systems. Strengthened institutional capacity et the central level: (i)Productiono f environmental legaltexts andtheir diffusion at the decentralized level; (ii)Productiono f legal texts to transfer natural resourcesmanagement to decentralized authorities. Preservation of natural resources and ecosystems: (i) Restoration, protection, and conservation of globally-significant ecosystems and habitats and key biodiversity assets therein; (ii) Increaseinlandareaunder formal or informal ecosystemmanagement schemes; (iii)Benefits from global biodiversity use more equitably shared and indigenous knowledge incorporated into conservation efforts. 4. Institutional and implementation arrangements: Since the GEF project will be fully integrated into the PROADEL, the Ministryo f LandManagement, Urbanism, and Habitat (MATUH) shall have institutional responsibility for the project. MATUH would therefore be responsible for administrative, financial and accounting management o f the project and would in particular ensure (i) consistency with contractual documents (Development Grant Agreement, Project Implementation Manual, Project Administrative, Accounting and Financial Manual, Project Monitoring and Evaluation Manual, Procurement Plan) and (ii) provision o f financial management reports and completion o f annual audits. The Ministryo f Environment and Water will be accountable for technical quality through a CBEM Scientific and Technical Committee establishedby Arrite' No 023/PR,!PM/MEE/SG/O. More details on implementationarrangements are detailed inthe Project ImplementationManual, the Project Administrative, Accounting and Financial Manual and the Project Monitoring andEvaluationManual. Interveningstructures for the project's orientation, execution andfollow-up include: 0 The PROADEL Steering Committee, which is a techcal committee to monitor and follow up all PIDR projects. It (i) examines and approves the balance sheet o f the previous period's activities and (ii) adopts the action programs andbudgets. - 1 8 - 0 The CBEM Scientificand TechnicalAdvisory Committeewillreview the technical elements o f the project's activities havinga national scope, guarantee the coherence and scientific quality o f activities, and take part to the monitoring, and evaluation o f the project from a technical standpoint. 0 The PROADEL Project Management Unit, would be responsible for coordinating the implementation o f the project. 0 Local project management units o f each o f the relevant baseline projects under the PIDR. Three sub-regional local management units for the PROADEL comprise an administrator, a monitoring and evaluation specialist, a capacity-building and communication specialist, an environmental and social specialist, and an accountant. They would be responsible for (i) the implementation o f capacity buildingactivities at the local level, (ii) monitoringthe management o f funds transferred to beneficiaries to cofinance subprojects, (iii) monitoring andevaluation o f activities at the local level, and (iv) distributinginformation to the local stakeholders and the PMU. Inthe sites covered by the PRODALKA and PRODABO, this support will be ensured by their project coordination units. Follow-up and support of subprojects related to soil fertility, will be handled by the Inter-regional Coordination andManagement Units o f ASPOP. This collaboration will be done within the framework of conventions whose objectives and terms will be studied by the persons in charge for the various projects and by the various financial contributors. 0 Decentralized Project Approval Committees for each of the relevant baseline projects. SubprefectoralDepartmental Decision and Approval Committees are organs that have been created under the framework o f the PROADEL and would examine and approve subprojects elaborated and proposed by PROADEL eligible beneficiaries in GEF priority zones in PROADEL project area. These committees consist o f representatives of: (i)deconcentrated line ministries concerned with submitted subprojects; (ii) NGO chosen by his or her peers; an (iii) ruralorganizations;and(iv)community-basedorganizations.IntheGEFintervention local zones covered by PRODALKA and PRODABO, this function will be ensured by the appropriate local decision committees o f the PRODALKA and PRODABO. Subprojects related to soil fertility and restoration will be examined by the local decision selection committees o f ASPOP. More details are available inthe PIM. 0 Local Communities,with farmers, stockbreeders, fishermen, community associations, etc. at their core. Individuals inrural communities would form community-based organizations, where all local shareholders would meet with a secretariat to organize meetings andwrite reports. The meetings would allow communities to assess their needs andprepare Local Development Plans in a participatory manner. Local communities will submit for approval their proposals for co-financing micro-investments inthe GEF priority intervention areas to various existing local decision committees, as described above. During the approval process, requests are reviewed by local project management units to check on conformity with the project's guidelines. Upon approval, they are forwarded to the PMU which transfers funds to beneficiaries to finance the subprojects. The project would subcontract with service providers to support beneficiaries in subprojects implementation. -19- Program Management andMonitoring Day-to-day management o f project activities would be assured by the PROADEL's Project Management Unit (PMU) in N'Djamena, with members recruited by MATUH and under the direct supervision o f the PROADEL National Coordinator. The National Coordinator works in close cooperation with the GEF Specialist and the Financial Management Specialist (FMS). The PMU is responsible for: (i) coordinating overall implementation o f the project, (ii) managmg project activities implemented at the central level, (iii) ensuring availability of funds, (iv) maintaining the books and accounts o f project activities and producing financial reports, (v) monitoring and evaluating implementation and impacts o f the project, (vi) reporting results to various stakeholders (administration, donors, civil society, projects, Decision Committees), and (vii) providing guidance and technical assistance to decentralized PROADEL teams inKoumra, Moundou, andN'Djamena and staff inthe baselineprojectsASPOP, PRODALKA andPRODABO. Additional staffhavebeenor wouldbe recruited withn the PMU for the implementation o f GEF activities: (i) GEF Specialist, (ii) a an Assistant inMonitoringandEvaluation, (iii) a GEF Accountant, (iv) a Secretary, and(v) two drivers. A comprehensive Project Implementation Manual, Project Monitoring and Evaluation Manual, and a Project Administrative, Financial and Accounting Manual prepared by the Government o f Chad were reviewed by the Bank during negotiations. The Project Implementation Manual defines procedural arrangements for implementing the project and includes guidelines for identifying, approving, implementing, supervising, and evaluating subprojects. The detailed configuration o f the PMU, the profile of the staff, andtheirjob descriptions are also described inthe Project ImplementationManual. FinancialMechanisms andFlow o f Funds (see annex 11) Financing o f the the project's expenditures will be based upon the GEF Grant Account opened at the level of the World Bank inWashington. The Special accounts A and B (respectively for the financing of community subprojects on the one hand, and other operational and capital expenditures on the other hand) and the National Counterpart Funds Account will be maintained inN'Djamena. Thus, resources necessaryfor financing the activities will come from: e GEFGrant Account openedinWashington, DC for Authorized Withdrawal andthe Replenishment o f Special Accounts A andB, and for direct-payments to suppliers ; e Special Accounts A and B (open ina Commercial Bank considered to be acceptableby The Bank) for all the expenditure in front o f on the spot financed inthe country by the resources o f the GEF; and e National Counterpart Funds Account (open in a Commercial Bank acceptable by The Bank), for expendituresto be financed by the Government. FinancialManagement Arrangements The financial management will be ensured by the PROADEL's FMS in collaboration with the GEF Accountant. Expenditures will be budgeted by the P M U o f the PROADEL, and more especially the GEF Specialist and its Accountant. All the payments will be made upon the triple signature of the National Coordinator o f the PROADEL, the FMS o f the PROADEL and the GEF Specialist. Daily accounting and financial operations and the preparation o f Disbursement Requests will be carried out by the GEF Accountant under the supervision of the FMS of the PROADEL. The system of fmancial -20- managementbasedon a requirement of triple signature will guarantee (i) technical responsibility o f the the MEW for technical decisions made by the GEF Specialist in conjunction with the Scientific and Technical Advisory Committee, (ii) moral and financial responsibility o f MATUH to ensure the supervision o f all the measureso f the PROADEL through the Coordinator and the FMS. 1. CapacityAssessmentof thePMU A PMU with a competent and experienced staff, including a coordinator, an administrative and financial management specialist, a principal accountant, a GEF Specialist to be complemented by a GEF accountant, have already been recruited through a competitive process acceptable to the Bank. Adequate provision would be made to train the accounting and financial staff. The PMU includes an experianced procurement specialist. At the field level, there are three LPMUs, comprising inparticular an administrator, a monitoring and evaluation specialist and an accountant. The project would benefit from the extension o f the financial management system, already acceptableto the Bank, whch has been established for the PROADEL. The system would provide the Recipient and the Bank with accurate andtimely informationonresourcesandexpenditures. The financialmanagementsystemwould include budgetary accounting and financial reporting for internal control device and auditing elements. The PMU would be responsible for project administrative and techmcal coordination and financial managemento f the project. 2. Accounting The PMU would maintain the books and accounts o f the project activities and ensure that the annual financial statements are produced ina timely manner. The PMUwould be responsible for consolidating project accounts. The computerized accounting and financial management system installed for the PROADEL will be extended to include the GEF activities. T h ~ swould also include the preparation o f guidelines for using the software, in accordance with procedures in the Project Administrative, Accounting and Financial Management Manual to be approved by the Bank. The accounting and financial management staff will be trained accordingly on the operation o f the computerized accounting system. The PMU would maintain its accounts in accordance with international accounting standards, keeping all documentation related to project expenditures and following sound accounting practices for all financial records. These accounts would be consolidated with records to be made available to Bank missions and independent auditors. The accounts o f the project would be audited annually. Financial Monitoring Reports The FMS o f PROADEL with the support of the GEF Accountant would be responsible for preparing the Financial Monitoring Reports, according to procedures laid out in the Project Administrative, Accounting and Financial Management Manual. The National Coordinator o f the PROADEL would be responsible for ensuring that the reports are provided to the Bank on a timely basis. Financial Management Reports would show (i) whether funds disbursedto subprojects are used for the intended purpose; (ii) whether project implementation is on track; and (iii)whether costs remained within budget. Financial information would be explicitly linked with the project's progress andprocurement. The quarterly financial monitoring reports would include (i) discussion o f project progress, (ii) sources and uses of funds, (iii) uses of funds by expenditure type, (iv) an output monitoring report, and (v) a procurement report. The computerized accounting system would be customized to generate the Financial Monitoring Reports as indicated in"Financial Monitoring Reports for World Bank-Financed Projects: Guidelinesfor Borrowers:" with a statement showing cashreceipts by source, expenditures by main classification, beginning and ending cash balances of the project, and supporting schedules -21 - comparing actual and planned expenditures. Adequate financial management arrangements, including the ability to produce a timely Financial MonitoringReport, would be inplace by credit effectiveness. A separate module of the PROADEL financial management and accounting systemwill be createdto account for the financial and techmcal data for the activities financed by the GEF. This will make it possible to produce financial management reports andtechmcal reports for the project activities. Auditing The audit o f the project's activities, including preparation activities under the PDF-B grant, will be carried out by the independent firm already selected by competitive recruitment for the PROADEL. Project records and accounts would be audited in accordance with intemational audit standards. The audit reports would be submitted to the Bank no more than six months after the end of the Government's fiscal year. In addition to a standard short-form report with an opinion on the annual financial statements, the auditors would be required to: (i) review all statementsof expenditure and the intemal control procedures goveming their preparation for the period under audit and express a separate opinion on them; (ii) review the management and use of the special account and the project account and express a separate opinion on each; and (iii) review the intemal control system of the project-to identify its major weaknesses and shortcomings-and propose practical recommendations for improvement. Auditors would also perform interim audits (nine months into the fiscal year) to review the intemal control system, includingmanagementperformance, andissue reports no more than one month from the end of their work. The findings and recommendations of the interim reports would be addressedby management without delay (no more than six months from the end of the fiscal year) before the final audit. D. Project Rationale 1. Project alternatives considered and reasons for rejection: The following altemative projects havebeenconsideredandrejected: Blended versus stand-alone project. As a stand alone GEF project, the project would have had a much more limited impact and geographic scope due to resource constraints and hgher risks. As a blended operation, the PROADEL will benefit from better targeted IEM capacity-building tools and activities, andadditional funding to manage longer-term local, national and global environmental issues that contribute to the perpetuation o f rural poverty. The GEF project, in tum, will benefit from a national and cross-sectoral framework o f great breadth anddepth, as well as decentralized management structures and logistics. It is unlikely that without the structure and resources lent through a blended operation, sufficient capacity would be builtto monitor ecological processesat ever larger geographical scales, or that subprojects supported by other donors would be able to generate in the aggregate the same degree o f broad, multiple benefits to diverse stakeholders. Since PROADEL and associated baseline activities will contribute to supporting the basic needs o f communities, the likelihood of success for GEF activities will be higher, as they will be in a better position to address longer-term issues related to ecosystem management and biodiversity conservation. Moreover, the APL approach adopted by the baseline project allows for the Government to readily advance with an incremental scale-up to all departments in a subsequent phase, and to develop a sound, long-term program, based on the concrete lessons fi-om the first phase o f interventions. - 22 - Top-down centralized programs. The Government of Chad has started decentralization, vowing to disengage from the management of development activities and to increase the active participation o f rural residents inthe planning and the implementation of development activities. As in other countries, projects managed at the central level have been ineffective and failed to adequately respond to local needs. This is particularly the case for environmental protection activities. An alternative approach would have been to design a more traditional "command and control" biodiversity conservation project, aimed at delineating new areas to be protected, adopting the necessary regulations, and formulating conservation management plans to be implemented. However, experience has shown that such an approach has limitedchance of succeeding, because it does not provide sufficientlystrong incentives to local communities to comply and participate in monitoring and enforcement o f conservation schemes. Moreover, an approach would run counter the Government's position on the desirability o f implementing the NEAP and BSAP through community-based and decentralized structures. To the contrary, the project takes into account the need to contextualize interventions in the context of rural poverty reduction. I t aims at integrating natural resource management activities into landuse planning andapcultural andlivestock activities 2. Major related projects financed by the Bank and/or other development agencies (completed, ongoing and planned). Sector Issue I Implementation Development Bank-financed Progress (IP) Objective(DO) Apculture ASPOP Agricultural Services S I s & ProducersOrganizations Project Cr 38370, active Apculture PSAP Agricultural and Pastroal S S Services, Cr 26850, closed Energy Petroleum sector management S S i s capacity building, Cr 33730, active Energy HouseholdEnergy Project, Cr 38020, closed S Other development agencies Afncan Development Bank naturalresource management French Development Agency ruralhydrology European Commission naturalresource management GermanDevelopment Cooperation - naturalresource management, GTZ/KfW/DED decentralization P/DO Ratings: HS (HighlySatisfactory),S (Satisfactory),U (Unsatisfactory),t I (Highly Unsatisfactory) 3. Lessons learned and reflected in the project design: Lessonsfrom theBank's experiencein Chad Through implementation o f community-based decentralized development funds (FOSAP, PSAP, -23 - FACIL), the Bankhas learnedthat: If local groups are adequately trained and monitored, they are capable of managing the entire subproject cycle, from needsassessmentthrough payment o f service providers. Disbursementefficiency is paramount inacquiring andmaintaining localinterest anddynamics. The GOC cannot protect or manage biodiversity in general, and protected areas in particular, without the endorsement and participation o f local communities and the strengthening o f local management capacities. Communities will not accept the additional costs (in time or money) imposed by sound natural resources management including conservation o f biodiversity and ecosystem functions if they do not understandthe benefits. The interconnected mix o f environmental and socio-economic threats to the preservation o f Chad's globally significant environmental assets demands holistic approaches that can balance the ecological, economic, social, and financial needs o f communities and the imperative o f poverty reduction. However, these approacheshave heretofore been very limitedor lacking. Household Energy Project (CR 30820 CD, closed on June 30, 2004) aimed to create local management structures at the village level to manage wood resources. Some 100 villages now manage their resources and generate sustainable income from a woodfuel tax andthe sale of woodfuels. With considerable effort, it is possible to develop adequate management capacity at the village level. It is necessary to involve all possible stakeholders in the process, even those not directly involved. The project had four components: (i)establishing village-based natural resource management--ths component builds the capacity to design simple long-term village land-useandwood exploitationplans for villages in the N'Djamena wood fuel catchment area by funding the technical assistance for nongovernmental organizations, forestry agents, and villagers to develop a master plan and thereafter manage and control fuelwood use; (ii) buildingthe capacity of the Agency for Household Energy and Environment (AEDE) to monitor and control wood product flow through charging collecting user feesltaxes; (iii) improving the efficiency of household fuel use by commercializing efficient cooking stoves (firewood, charcoal); and promoting the use o f low-cost kerosene and liquid petroleum gas (LPG) stoves with publicity and NGO-sponsored promotional activities as well as testing, product development, and monitoring o f stove performance; and (iv) capacity buildingand training as a part o f project management. Pilot programs show that it is possible to implement systems o f collection and marketingof the wood fuel which benefit communities and allow for sustainable regeneration of wood resources. However, it is important to closely follow the environmental impact, so that communities do not have incentives for excessive deforestation. This conclusion was also made by the Decentralization Project and Local Governorship o f Ferlo in Senegal. The project entertains a key role for AEDE in facilitating communities to achieve a sustainable replication o f the results acquired inthe N'Djamena area to the Lac Weye andMoundou Charcoal Supply Basin zone. West African Pilot PastoralProject (Programme PastoralPilote Ouest Africain PPPOA). This- project demonstrated the viability in Chad o f participatory community-based approaches to improved natural resource management, in pastoral habitats, and the desirability o f llnking these to other community demands (e.g., social services) under a more holistic approach. A number of important lessons were learned that have been incorporated into the design o f the project. Crophivestock interactions should be hamessedto a greater extent in order to maximize the economic returns to rural - 24 - subprojects. It is important for project success that the procedures for preparation o f local development plans and sustainable community-based natural resource management are extremely simplified. Likewise, the institutional architecture andprocedures for obtaining financing should be as transparent, autonomous, non-complex, and expedient as possible. Particularly in the initial phases, technical experts and extension agents should focus their assistanceto demonstrate and disseminate the lessons from successfulpilot approaches, whde the ultimate elaboration of projects should rest inthe hands of communities. It is important that real capacity for using analytical tools be built at the outset o f the project within communities, andthat facilitators and extension agents play a hands-offrole. Inaddition, monitoring and evaluation systems and frameworks need to be designed with a very practical orientation, inorder for local stakeholdersto compile reliable data whch can persuasively demonstrate positive outcomes. Local capacity must be built inmonitoring methods, and indicators should include indicators related to rural productivity as well as ecosystem health. Among the most frequently articulated needs from pastoral communities included: access to water, a veterinary pharmacy, a vaccination park, a collection place for milk, and access to credit. In addition, the Chadian National Livestock BreedingProgram o f 1994 showed that it was possible to arrangepastoral spaces inzones o f exploitation controlled below load capacities and that areas under management not only make it possible to ensure good quality pasture, but for increased productivity o f livestock, soil fertility regeneration, andbiodiversity conservation. Lessonsfrom the Bank's experiencein other countries The design of the project also incorporates experiences acquired inother countries inthe Wedcentral Afncan region, including: Niger Natural Resources Management Project. This project demonstrated a solid record o f success and proved that communities have substantial capacity for local development in the area of natural resourcesmanagement. The project was given "satisfactory" ratings across-the-boardupon completion, and the sustainability of its interventions was rated as "likely," particularly as a large share of communities involved inthe project indicated their intention to self-finance subprojects identified under the project. Simplified community-based procurement procedures were introduced and implemented after the midtermreview, andthe new procedures were successfully implementedby all communities in the project, even with the handicap o f a sparse network o f bank agencies (as in Chad). This is an important precedent for the Chad project, as the socio-economic and environmental contexts are quite similar, particularly in the rural sphere: fragile ecosystems, weak local communities, inefficient provision ofbasic services, and slowly emergingdecentralization. , Senegal: Sustainable and Participatory Energy Management Project (SPEMPPROGEDE). This US$20 million IDNGEF project is aimed at helping Senegal meet its rapidly growing demand for household fiels without the loss o f forest cover, while enhancing and diversifying local incomes and empowering rural women. A sustainable system capable o f producing more than 400,000 tons of fuelwood per year has been established, and deforestation in the Tambacounda and Kolda regions has been reduced by some 30,000 hectares per year through community-based management plans. The incremental annual income inthe project zone from the sale o f sustainable fielwood andthe promotion o f complementary new agricultural and animal husbandry products has reached more than US$9.5 million. Moreover, an incremental market penetration o f 83,000 improved charcoal stoves and o f 11,500 kerosene stoves has been achieved. - 25 - 4. Indications of borrowerand recipientcommitmentand ownership: 0 The Government o f Chad signed a Rural Development Policy Letter on October 27, 2003, expressing its commitment to some sector-based measures, particularly the allocation of oil revenues to rural development and the financing o f subprojects identified by the participative processes plannedinthe framework o f the PIDR. 0 Recognizing that its economy is highly dependent on natural resources, the Government o f Chad has adopted a number o f environmental policies to address ecological threats to its security, to promote more integrated approaches to ecosystem management, and to strengthen environmental protection and the sanctity o f protected areas. Building on its core National Environmental Protection Law 13lPRl94, the Government o f Chad has adopted a National Environmental Action Plan (NEAP) as well as a National Biodiversity Strategy and Biodiversity Strategic Action Plan (BSAP) in the last few years. The BSAP promotes a community-based biodiversity management framework. The NEAP will ensure that environmental objectives are integrated into all economic development planning. Finally, more specific legislation has been introduced to regulate hunting, fishing, and timber and non-timber forest product extraction. Chadhasratifiedthe UNFramework Convention on Climate Change (1994), the Convention on Biological Diversity (1994), the Convention to Combat Desertification (1997), and the Ramsar Convention on Wetlands (1990). Chad is also a signatory to the Yaoundd Declaration on Tropical Forests. The Govemment has created two national parks (Manda and Zakouma), biospheres (Fitri), wildlife reserves (Abou Telfane, Bahr Salamat, Binder-LCrC, Fada Archei, Mandelia, Ouadi RimC-Ouadi Achim, and Siniaka-Minia), andclassified forests, andpromulgated legislationregulatinghunting, extraction of forest products, and fishing. The proportion of Chad's territory under formal protection approaches international norms with about 13.3% o f its total area theoretically under formal protection. However, the Government lacks the means to effectively enforce these areas under legal protection. 0 A letter of endorsement for the GEF Community Based Ecosystem Management Project was obtained from the GEF Focal Point on 03102104. 5. Value addedof Bankand Globalsupport in this project: Svnergies between Development Obiective and Global Environmental Obiective GEF activities closely parallel and complement each of the four components of the PROADEL, as well as some associated aspects o f the Apcultural Services and Producer Organizations Project (ASPOP) and the PRODABO and PRODALKA decentralized development programs, all o f which are part o f the PIDR. Inthis way, the integration o f holistic community-based ecosystem management approaches and methodologies vetted by the GEF into local development planning will improve the design of PROADEL and by extension the other projects o f the PIDR, while serving as an umbrella framework under which a range of interventions and collaborations can be coordinated. %s overarching structure, particularly in focusing on local and decentralized implementation, will facilitate a more systematic implementation o f the NEAP and create synergies with other key national strategies relating to biodiversity conservation and land management. The project will benefit from a national and cross-sectoral framework, as well as decentralized management structures and logistics. Since baseline activities will contribute to supporting the basic needs of communities, the likelihood of success of GEF activities will be higher, as they will be in a better position to address longer-term issues contributing to the perpetuation o fpoverty. - 26 - Catalytic role o f GEF The GEF is uniquelypositioned to supportthe project's objectives and it is unlikelythat these wouldbe achieved in the absence o f GEF support. Without incremental GEF finance, integrated ecosystem managementis not likely to be emphasizedinany coherent way indecentralized development planning, or articulated as a priority inlocal development plans. As a result, habitats o f global importance could suffer from irreversible degradation. It is also improbable that a purely demand-dnven rural development project could effectively address Chad's multiple environmental challenges, nor, gven Chad's high level o f rural poverty, that communities would prioritize investments in sustainable land andnaturalresource managementwithout incremental GEF funding for capacity buildingandpiloting. The provision o f basic services and food security are so important in Chad that, even if there is a shared agreement that biodiversity protection and land management are important to rural communities, only scattered attention would be given to this critical issue without a more coherent framework for interventions. GEF resources will also be used to catalyze support from the donor community in future phases to sustain and broaden project activities. The project will also create synergies with other ongoing GEF-supported activities in Chad and the West'Central Afnca region, thereby bolstering the global environmental objectives achieved. Among these synergistic projects include: Reversal o f Land and Water Degradation Trends in the Lake Chad Basin Ecosystem (GEF / UNDP andIBRD); Participatory Conservation in the Manda National Park, Moyen Chari Region in Southeastern Chad (GEF / UNDP); Building Scientific and Techcal Capacity for Effective Management and Sustainable Use of DrylandBiodiversity inWest Afncan Biosphere Reserves (GEF / UNEP); Institutional Strengthening and Resource Mobilization for Mainstreaming Integrated Land and Water Management Approaches into Development Programs inAfrica (GEF / IBRD); Rural Policy Design, Planning andMonitoring Support Project (PAEPS). Donor coordination The Bank plays an important role in donor coordination in Chad, having established a network with major donors and a common approach to rural development under the PIDR. The GEF project will extendthe Bank's partnerships with bilateral donors under the PROADEL, which is co-financed by the French Development Agency (AFD), by joining forces with the German Development Cooperation. The latter's efforts to promote natural resource management and community based ecosystem management intwo critical areas o f the country under the PRODALKA and PRODABO programs are focused on two critical sub-regions o f Chad (Mayo-Dallah, Lac L6rC and Kabia inthe Southwest, and the Biltine-Ouara regions inthe Far East o f the country). This arrangement will ensurethat investments on the ground can proceed more rapidly and that a common vision among donors can begin to be formed regarding the expansion o f community based ecosystem management approaches across a wider area o f the country. Formal cooperation with the German Development Cooperation will be supplementedby other informal collaborations with ongoing related programs inChad. Twice a year, the donors will meet and take joint strategic decisions on project performance and to monitor the achievement o f global objectives. -27- E. Summary ProjectAnalysis (Detailed assessmentsare inthe project file, see Annex 8) 1. Economic(see Annex 4): 0 Costbenefit NPV=US$million; ERR= % (see Annex 4) 0 Costeffectiveness 0IncrementalCost Other (specify) 2. Financial(see Annex 4 and Annex 5): NPV=US$ million; FRR= % (see Annex 4) Fiscal Impact: 3. Technical: The assessment o f institutional and technical capacities conducted as part o f PDF-B activities, generated valuable information on the capacity of the stakeholders in integrated ecosystem management. A comprehensive training planhas been developed and would be implemented rapidly in order to ensure success o f the project. The project would emphasize capacity building and training throughout its implementation. Inaddition, the project will contract intemational technical assistance to help programmingand implementation o f integratedecosystemmanagement activities. 4. Institutional: 4.1 Executing agencies: Project Steering Committee At the central level, a single Steering Committee has been established to monitor and guide implementation o f PIDR projects, including PROADEL, ASPOP, PRODABO and PRODALKA. The Steering Committee consists of: 0 Representatives o f ministries (MATUH,MPED, MA, ME, MEW, MTP, MD, and others); 0 Representatives o f civil society (community-based organizations, NGOs, and producer organizations); 0 Representativeso f the project team as observers, when concerned; 0 Representativeso f donors as observers. The Steering Committee will be supported by a CBEM Scientific and Technical Advisory Committee, that will be charged with ensuringconformity o f the project to GEF guidelines. - 28 - Implementation Decentralization is evolving. The project would support the decentralization agenda, but decentralization is still in its early stages, and its effective implementation i s linked in particular to politicalvariables. Therefore, implementationarrangements of baseline projects the GEF project would rely on have been designed to function independently of decentralization. Elected committees would be established at the sous prqecture or dLpartement level and would be in charge of development plans and subproject evaluation and approval. Though supported by the Government of Chad, the participatory approach is still at an early stage, particularly inthe accountability o f technical and administrative entities. This issue would be addressed inthe capacity-building component. 4.2 Project management: Limited managerial capacity is a serious constraint at the central and the decentralized levels and staff have been recruited through a competitive and transparent process and would receive training through the project. 4.3 Procurement issues: All procurement decisions will be supervisedby the procurement specialist inthe PROADEL PMU in coordination with the GEF Specialist, under the supervision o f the National Coordinator o f PROADEL. On the basis o f the evaluation o f procurement capacity carried out at appraisal, a two-pronged action plan was proposed and accepted: (i) development o f an action plan and budget for the activities to be carried out inthe first eighteen (18) months o f the project; and (ii) preparation o f a procurement plancorresponding to this period. 4.4 Financialmanagementissues: To better manage the project and ensure sound and effective financial management, the financial management system developped for the PROADEL would be extended to cover the GEF activities. This system comprises (i)Project Administrative, Financial, and Accounting Management Manual to a be finalized before effectiveness and (ii)a computerized information, monitoring and evaluation, accounting, and financial management system to provide accurate and timely information on the status o f the project. The system which is (i) user friendly and adaptable over time, takes into account the progressive geographical extension o f the project; (ii) use o f a transparent accounting and allows financial management system ; (iii)allows capture o f the flow o f funds; and (iv) has adequate arrangements for cost monitoring for all project expenditures. The project's financial management staff, whch would comprise the PROADEL RAF, the Principal accountant and the GEF accountant would be adequately trained to handle the system, ensure good financial management, andproduce all requiredreports and statementsontime. - 29 - 5. Environmental: Environmental Category: B (Partial Assessment) 5.1 Summarize the steps undertaken for environmental assessmentand EMP preparation (including consultation and disclosure) and the significant issues and their treatment emerging from this analysis. Under PROADEL, an Environmental Assessment was completed prior to its appraisal, with local stakeholders involved in the preparation. The final environmental assessment included an Environmental and Social Management Framework and a Resettlement Policy Framework and was received by the Bank on November 5, 2002, and have been available in Chad and at the Bank's Infoshop since November 21,2002. Consultants have met with local associations, local authorities, and NGOs in several dkpartements representative o f each agroecological zone (sudanian, sahelo-sudanian, and sahellian) to identify and appreciate subprojects that would be requested by communities and fundedbythe project. The consultantscould therefore evaluaterelatedpotentialenvironmental impacts. However any subproject could affect the environment and they would be systematically reviewed in advance, and appropriate measures would be taken to fully disclose potentially negative environmental impacts. For subprojects identifiedunder ASPOP, ASPOP safeguarddocuments would apply: anEnvironmental Analysis had been also prepared which included as well a Pest Management Plan, a Resettlement Policy Framework and a Dam Safety Analysis. All of them have been preparedby consultants on a participatory manner with strong consultations with representatives o f NGOs, techcal services o f ministries, producer organizations, andhave beendisclosed inNovember 2002. 5.2 What are the main features of the EMP and are they adequate? The Environmental and Social Management Framework for environmental impact assessment is founded on PROADEL's design. Therefore : (i) environmental andsocialspecialistofthePROADELinthePMUwillberesponsiblefor the monitoring social andenvironmental impacts o f the GEF project activities; (ii)hewouldbeassistedbytheenvironmentalandsocialspecialistsoftheLPMUs; (iv) the social and environment assessment capacity of the approval committees (PROADEL, ASPOP, PRODABO andPRODALKA) would be strengthened. Considerable training would be needed to make the framework operational. This training would be provided by PROADEL and shouldbe planedandexecutedby the P M Uat the national level. 5.3 For Category A and B projects, timeline and status of EA: Date o f receipt o f final drafi: 11/05/2002 This refers to PROADEL Environmental Assessment. - 30 - 5.4 How have stakeholdersbeenconsulted at the stage o f (a) environmental screening and (b) draft EA report on the environmental impacts and proposed environment managementplan? Describe mechanisms o f consultation that were usedand which groups were consulted? Following an information campaign, the consultants visited various dkpartements between April 17, 2002, andMay 19, 2002. They went to the chief town o f dkpartements, sousprkfectures, andcantons. Local political authorities, civil society representatives, producer organization representatives, women's groups, and community associations were invitedto express themselves on local difficulties impeding the sustainable development of their communities. For ASPOP EA, consultants visited several areas inNovember 2001to discuss the activities with local stakeholders andconsultations have then beenorganized duringthe June-July 2002 technical mission. 5.5 What mechanismshave beenestablishedto monitor and evaluate the impact of the project on the environment? Do the indicators reflect the objectives and results o f the EMP? The monitoring and information system o f the project would include environmental assessment monitoring. The environmental and social specialist o f the PMU would be responsible for following up on environmental indicators. Furthermore a larger natural resources monitoring system would be designed under the project. It would provide surveillance of renewable resources to aid local stakeholdersindecisionmalung. 6. Social: 6.1 Summarize key social issues relevant to the project objectives, and specify the project's social development outcomes. Measures for the inclusion of marginalized groups-particularly women, youth, HIV-AIDS-affected people, and transhumant herders. Women, youth, HIV-AIDS-affected households, and transhumant herders are traditionally excluded from economic choices concerning communities (poor women constitute a particularly weak group), andfrequent conflicts betweenherdersandfarmers inthe sudanianandsahelian zones oRenprevent the involvement o f those groups. Inclusion o f marginalized groups must be effective both at the decisionmaking level (Decision Committees) and at the subproject level (benefit from investments). Information campaigns and sensitization efforts would strongly focus on these issues. Compositionof Decision and Approval Committees Having Decision andApproval Committees at the intervillage level, where people know each other and share the same cultural background, would facilitate the process. But there are many areas in Chad where traditional and decentralized administrative authorities may have difficulty coming to agreement. The project would subcontract trained animateurs to assist communities intheir needsassessments. -31 - 6.2 Participatory Approach: How are key stakeholdersparticipating inthe project? The project has been designed during the elaboration o f the NEAP and the PIDR thereby capitalizing upon these meetings and workshops. The following major stakeholders on biodiversity conservation andenvironmental managementhavebeeninvolvedinthe preparationofthe GEFproject: Administration: Ministry o f Environment and Water, Ministry of Amculture, Ministry of Livestock, Ministry o f Land Management, Urbanism and Habitat and others concemed by rural development (Energy, Health, Transport, Education); Information centers / Research institutions: National Center for Research Support (CNAR), Training and Study Center for Development (CEFOD), Veterinary ResearchLaboratory o f Farcha, N'Djamkna Univesity's Library, Committee for the Lake Chad Basin (CBLT); Beneficiaries: representativeso f producers organizations like the "Plateforme Paysanne" (Peasants' Platform), representatives of women organizations (CELIAF - Cellule de Liaison et d'Information des Femmes du Tchad), members o f the private sector (Cotton Chad), andalsojust beneficiairies; International institutions: the donor community (UNDP, GEF, France, World Bank, Germany, Japan, EC, etc.) and intemational NGOs (mostly WWF). Stakeholdershave been included inthe project design since its earliest stage o f preparation and would be involvedinimplementation at severalpoints: An information workshop was held on July 20, 2004 to introduce GEF and the project to various project coordinators andtechnicians inChad; A seminar was held on September 9-10, 2004 for technical specialists, NGOs, representatives UNDP andthe World Bank, andrelevant staff o fbaseline projects to review the preparation o f the project; A technical workshop was held in November 2004 to validate the logframe, the intervention strategy, a list o f eligible subprojets and the study on soil fertility with the participation o f about thirty representativesofkey actors impliedinproject planning; An appraisal workshop was held inFebruarylMarch 2005 with broad participation o f government representatives, civil society groups, and technical specialists to validate the final project document and accompanying implementationstrategies; Stakeholders would name their own representatives to local Decision Committees through a participatory processpreceded by an information campaign ; Specific procedures have been put inplace to make sure that women and other marginalizedsocial' groups are involved in project preparation and implementation, including the development of a specific training plan and monitoring and evaluation plan that elaborates measures and recommendations for inclusion o f marginalized groups. - 32 - 6.3 How does the project involve consultations or collaboration with NGOs or other civil society organizations? NGOs and civil society have been consulted extensively throughout the project's preparation. During implementation, collaboration with NGOs would be a key element o f success, because NGOs can (i) act as intermediaries for communities; (ii) provide services to the project, such as needs assessments, training workshops, and project monitoring; (iii)help to implement subprojects; and (iv) be elected to Decision Committees as representativesof civil society. 6.4 What institutional arrangements have beenprovidedto ensurethe project achieves its social development outcomes? The project would work in close collaboration with national institutions to make sure that financed investments are fully supported and staffed. The Monitoring and Evaluation system will capture the performance o f the project toward the achievement o f the social development outcomes included in subprojects. 6.5 How will the project monitor performance interms of social development outcomes? Social outcome indicators would be includedinthe monitoring system and linkedto poverty reduction efforts. Some indicators would be in common with the Poverty Monitoring System set up under the PRSP process. 7. SafeguardPolicies: I Forestrv(0P * \ 0No I PestManagement(OP 4.09) 0Yes 0No CulturalProperty(OPN 11.03) 0 Yes 0No IndigenousPeoples(OD 4.20) 0Yes 0No InvoluntaryResettlement(OPBP 4.12) 0Yes 0No Safetyof Dams(OP 4.37, BP4.37) 0 Yes 0No ProiectsinInternationalWaters (OP 7.50. BP7.50. GP 7.50) 0Yes 0No 7.2 Describe provisions made by the project to ensure compliance with applicable safeguardpolicies. The environmental assessments o f PROADEL and ASPOP conducted during preparation have given a good indication of the cumulative environmental impacts to be expected from the project's generic investments. By identifyingissues inadvance, proposing measuresor changesintechnology or construction materials, and recommending methods for monitoring environmental indicators (through local-level institutions and structures) commonly affected by project-funded investments, the time and effort required for specific environmental and social assessments of subprojects would be greatly reduced. To ensure compliance with the applicable safeguardpolicies : 0 An environmental and social screening, evaluating, andsupervising mechanism would be maintained to ensure that funded subprojects are environmentally and socially sound and sustainable and that - 33 - any adverse environmental or social consequences are recognized early inthe project cycle. Such a mechanism would allow foreknowledge o f the major environmental and social issues and impacts of individual subprojects, the set o f measures to avoid them or mitigate those that are unavoidable, and the estimated costs o f those measures. Community awareness would be raised about the environmental and social impact o f project-funded activities and promoting ways to mitigate or avoid negative effects. This would be done through the project`s information, education, and communication activities, which would assist in disseminating information related to good practices. Other information about appropriate construction materials andmethods inenvironmentally sensitive areas, site selection criteria, and other measuresto mitigate likely adverseimpacts couldbe disseminatedthrough technical handbooks or other means. New methods would be found for supporting improved natural resource management through the project`s community-based interventions. The project would facilitate community understanding of the relation between natural resources and well-being, the need to improve both, and the need for action to grow out o f understanding and be based on the community's own commitment and local structures. Because poor communities often lack the impetus and initial capital necessary to get started, environmental problems often have to be proactively targeted at the community level. The project would have an active role promoting and supporting projects aimed at improving communities' management o f the natural resources that they control and depend on for their livelihoods. A Dam Safety Analysis has been prepared among the ASPOP safeguard documents. It includes generic dam safety measures and training proposals for the purpose o f enabling producers organizations to manage the safety of their small dams. An Integrated Pest Management Plan has been as well prepared under ASPOP to ensure that producers organizations apply appropriate pest management approaches under their subprojects. Finally a Resettlement Policy Framework has been also prepared. These Dam Safety Analysis, Pest Managment Plan and Resettlement Policy Framework will be applied inthis project when needed. F. Sustainability and Risks 1. Sustainability: The project's long-term vision is a sound enabling environment for community-based ecosystem management using public resources that are managed in a participatory and decentralized manner. While the project will establish transitory structures to this end that rely on donor financing, particular attention would be paid to the institutional and financial sustainability o f interventions. The Government has provided clear assurances to guarantee the sustainability o f project interventions, and actions and commitments to advance decentralization, co-management o f protected areas, and more equitable land tenure and natural resourcesmanagement structures have already been taken. The Law on Oil Revenue Management envisions a progressive integration o f a percentage of oil revenues or Heavily Indebted Poor Country (HIPC) Debt Initiative hnds into decentralized public resources management frameworks. In this way, the most typical barrier to sustainability-long-term funding-will be addressed by the project's efforts to "institutionalize" more decentralized funding mechanisms for environmental management activities and to establish a pipeline o f community conceived and vetted subprojects. - 34 - The strategic approach of the project rests on the assumption that early direct engagement and empowerment o f communities is fundamental to creating proper incentives for socially and environmentally sustainable natural resource exploitation and that environmental subprojects must be analyzed in the context o f their economic feasibility and contribution to livelihoods. Sustainability o f subproject investments i s primarily ensuredby the participation of beneficiaries inall decisions and by their financial and other in-kindcontributions. Beneficiaries would be responsible for defining their priorities, supervising implementation, and managing and maintaining such investments. Furthermore, sustainability o f all investments financed under the project is a key criterion for approval. Beneficiaries must have developed a maintenance plan outlining responsibilities, management, and financing arrangements, andavailability o f necessaryhumanresources. Additional arguments for the sustainability o fproject interventions includethe following: The long-term, phased approach of the PIDR and specific PROADEL activities, which affords flexibility, continuous feedback, and a regular schedule o f periodic adjustments inits targets, is a sound framework inwhch to guaranteethe sustainability o f interventions. 0 Inforging collaboration among stakeholders, including civil society and localresearchinstitutions, the project will facilitate a shared vision of roles and responsibilities inIEM and build a durable partnership to sustain the achievements o f the program. la. Replicability: Interventions to be advanced under the project appear to have great potential for replicability, not only within Chad, but on the rest of the Afncan continent. That participatory or co-management of natural resources and protected areas is critical to sustainability still remains a novel concept. While a few CDD operations inChad inthe past have partially adopted these principles, the implementationo f the full suite of GEF incremental activities will enable amainstreaming ofthis newconcept. The project's implementation model pivots around the scale-up and replication in all o f Chad's departments o f subprojects and other interventions based on widespread dissemination o f good practice incommunity-based IEM.This will be advancedthrough consultations, workshops, outreach materials, and other public and inter-country exchanges. These lessons will be publicized and made available worldwide through the PROADEL web site. Moreover, the attention being paid to the economic feasibility o f the environmental projects and their relationship to sustaining rural livelihoods also augurs well for replication; the positive returns from locally appropriate sustainable resource practices, such as water harvesting and soil fertility replenishment techniques, will be visible and other communities and farmers will seek to achieve similar benefits. Local training will facilitate a sharing o f experiences and best practices from other countries, such as Niger, that have successfully implementedsimilar programs. Meanwhile, dissemination o f best practices in Chad to other countries in and outside the regon will be promoted by project staff and stakeholders, facilitated by an earmarked budget for outreach. Participatory M&E information management will also enable the extraction o f important lessons from the project that will be a key element o f successful replicationinother areas. - 35 - 2. CriticalRisks (reflecting the failure o f critical assumptionsfound inthe fourth column ofAnnex 1): Risk Risk Rating Risk Mitigation Measure From Outputs to Objective heffective decentralization of natural M f i e project recognizes that the promulgationof resource management :ertain legislationandtheir enforcement will be iecessaryto ensure for more effective lecentralized managemento fnaturalresources. 4ctions to address this risk are incorporated into he project design. Localpopulations are not interested inthe M f i e project has made provisions for incitative realization of community-based ecosystem neasures such as sensitization campaigns and managementactivities ;pecific trainings, as well as realistic level o f :ommunity contributions. Availability o f Counterpart funding from S 3ilrevenueswouldbeearmarkedfor these the Government :nvironmental activities as environment is one of the priority sectors. From Components to Outputs Beneficiaries do not have enough M Guidelines for the conditions o f local resourcesto co-finance subprojects contributionhave been set at a reasonable level andare comparable to those of similar projects inChad. Formostofthe subprojects,allthe contribution can be inkindor labor. Localdecision committees suffer from M Specify rule and conditions ingrant agreement, political interference and cannot operate including "social audits," full andtransparent autonomously disclosure. Competent service providers and M A careful selection o ftargeted interventionareas sufficient resources are not readily has beenmade, andadequate training can be available. provided andinternational invitationsto bid launched. A scientific committee made upo f multi-sector specialists will support the implementation o f activities. Lack o f commitment o f local communities M Comprehensive integrated ecosystem to uphold regimes and charters for managementregimes andintercommunity integrated ecosystemmanagementand charters will be prepared under the project joint managemento fprotected areas through a highlyparticipatory approach and mechanisms will be establishedfor ongoing stakeholder consultation. Strategies will be designed under these regimes to promote revenue generationandnew employment opportunities throughout the project area. Overall Risk Rating M 3sk Rating- H (High Risk), S (SubstantialRi I, M (Modest Risk), t Negligibleor Low Risk) M - 36 - 3. PossibleControversialAspects: G. Main Grant Conditions 1. EffectivenessCondition The conditions o f effectivenessof the GEF grant will be: 0 The Project Implementation Manual, the Project Administrative, Financialand Accounting andthe Project Monitoring andEvaluationManualhave beenadopted, all inform andsubstance satisfactory to the Bank ; 0 A financial managementandaccounting systemacceptableto the Bankhasbeen installed; 0 The Project Account has beenopenedandthe initial contributionofFCFA 100 millionhas been depositedinit; 0 The PROADEL ImplementationArrdtC (Arr2te'No. 008/MATUWSG/03 dated October 14,2003) has been amendedto reflect the recruitment o f the personnel necessary for the implementation of the GEF Project. 2. Other [classify according to covenant types used in the LegalAgreements.] H. Readinessfor Implementation 0 1.a) Theengineeringdesigndocumentsforthefirstyear's activitiesarecompleteandreadyforthestart o fproject implementation. IXI 1.b) Not applicable. [xi 2. The procurement documents for the first year's activities are complete and ready for the start of project implementation. 3 3. The Project ImplementationPlanhasbeenappraisedandfound to berealistic and of satisfactory quality. 04. Thefollowingitemsarelackingandarediscussedunderloanconditions(SectionG): - 37 - I. Compliance with Bank Policies B 1.Thisproject complieswith allapplicableBankpolicies. u, i?2.The followingexceptions to Balk policies are recommended for approval. The project complies with,/ all other applicable Bank policies. 0') d-9 ' I .~ Valerie Marie Helene Layrol /-<&eph B&-bwomoh Ali Khadr - Team Leader Sector Manager Country Director - 38 - Annex I:Project Design Summary CHAD: Community-Based Ecosystem Management Project Key Performance Indicators Critical Assumptions Sector-related CAS Goal: iector Indicators: rom Goal to Bank Mission) Enhancing non-oil economic 0 Improved income o ftargeted 0National statistics 0 Political stability, for the opportunities while reducing ruralbeneficiaries; development and successful sources o fvulnerability. UpdatedCAS execution of the strategieso f 0 Increasedcapacity for the sectors andthe environmental management 0Legislation pertaining to continuation o f and compliance to related environmentalmanagement decentralizationand local safeguards at national and and decentralization. democratization regional levels; 0PRSPsurveys 0 Increaseo f agricultural productivity o f land (inthe 0Reporton the monitoringof project areas). rural sector GEF Operational Program: 3utcome I Impact #ndicators: To achieve multipleand local, 0 Improved stability and national, and global benefitsby functioning o f critical, promoting the widespread globally significant adoption o f farming and resource ecosystemstargetedby the exploitation practices that project; integrate ecological, economic and social goals (OP 12) 0 Interest o f communities anc other actors not directly involved inPhase 1 o f project to replicate and get involved inthe GEF activities. - 39 - Key Performance 2ata Collection Strategy Hierarchy of Objectives Indicators Critical Assumptions 3utcomeI Impact roject reports: P komObjectiveto Goal) ndicators: The GEF project's development 0 Nbhectaresprotected Participatory monitoring by ibsence o f major environmental objective is to restore some of the against deforestation, land communities lisaster(s) Recipient's most fragile degradation, andbushfires. ecosystems by enabling local Supervision missions idequatepolitical and budgetary communities to better fight 0 At least 50 villages inthe upport to the decentralization desertification, rehabilitate Moundouwoodfuel supply RuralDevelopment Sector .genda degraded lands and protecl basin sustainably manage MonitoringUnit reports biodiversity. their wood resources. iufficient number andbroad Report ofthe PRSPI lase o f communities profit from 0 Levelo f endangerment o f Poverty MonitoringSystem heproject inteventions to have a endemic mammals, birds naterially significant impact at and plant species reduced xosystem level by at least one category in GEF priority zones (flora, Fuelwood and charcoal rargetedpopulation actively fauna to be determined in usage statistics and AEDE :ooperates on environmental baselinediagnostics and reports :oncems surveys, site-specific M&E plans). 0 Durable environmental ECOSIT householdsurvey =100,000), amount: US$O.9 million Post Review(<100,000) Less than $100,000 CQ PostReview (TORSprior review) 4. Financial and Less than $100,000 LCS PriorReview Technical Audits 5. Individual $50,000 or more PriorReview Consultants or sole source (amount: US$0.2million) 3 cvs Less than$50,000 Post Review I Total value of contracts subject to prior review: US$1.4 million Overall Procurement Risk Assessment Average Frequency of procurement supervision missions proposed: One every 6 months(includes special - 76 - procurementsupervisionfor post-review/audits) 'Thresholds generally differ by country and project. Consult OD 11.04"Review of Procurement Documentation" and contact the Regional ProcurementAdviser for guidance. - 77 - Disbursement Allocation of grant proceeds (Table C) The computerized financial management system in place for the management o f the Local Development Program Support Project, assessed acceptable to the Bank, will be extended and used for the GEF operations. 1)Arrangements regarding GEFGrant (a) Statement o f Expenditures: Disbursements for all expenditures should be against full documentation except for items o f expenditures under contracts o f less than: (a) US$ 250,000 for goods; (b) US$ 100,000 for consulting firms, (c) US$ 50,000 for individual consultants as well as (e) all training and operating costs, whch will be claimed on the basis o f Statement o f Expenditures (SOEs). All supporting documentation for SOEs will be retained at the PMU and will be readily accessible for review by periodic Bank supervision missions andexternal auditors; Inthe case ofFinancial Support for the Community-Based EcosystemManagement subprojects,there will bepre-financingo f expenditures, as communities are unlikely to start contracting without the assurance of funds. All disbursements against expenditures under this component will be subject to ex post financial andphysicalaudits, on a sample basis, to be carriedout bythe external auditors o fthe project. (b)Accounts and DisbursementProcedures:The followingBankaccountswillbemaintained: - Two GEF Special Accounts (A andB) denominated inCFAF ; - Project Account also denominated in CFAF. Counterpart funds from the Government of Chad will be deposited into this account. These accounts will be maintained in a Commercial Bank acceptable to the Bank. GEF funds will be disbursed to finance activities based on traditional disbursement procedures (transaction-based disbursements) i.e, direct payments, reimbursements, and the use o f the special accounts. The project will be eligible to use report-based disbursements after providing Financial Monitoring Reports (FMRs) satisfactory to Bank and maintaining a satisfactory project rating. FMRs that are required under FMR-based disbursements will be prepared by Project Management Unit. They will be used to assess progress towards meeting the requirements of FMR-based methods of disbursement. At the time of conversion, the project will prepare a reconciliation o f project expenditures, hsbursements received, and Special Account movements up to the proposed date o f the conversion. Other details for the conversion will be worked out closer to the time of conversion between the project team and Bank. The two GEF Special Accounts (SA) denominated inCFAF will be opened ina commercial bank basedin N'Djamena, on terms and conditions acceptable to The Bank. The first Special Account (SA-A) will be usedexclusively to finance all the subprojects inform of Grants, the second Special Account (SA-B), will be usedto finance items and activities such as goods and vehicles, consultant services and audits, training, seminars and workshops and project operating costs. The authorized allocation for SA-A will be CFAF 250 million and will cover about four months o f eligible expenditures. The authorized allocation for SA-B will be CFAF 250 million and will also cover about four months o f eligible expenditures. Upon Grant effectiveness, The Bank will deposit the amount o f CFAF 250 million in SA-A, representing the total allocation for that account, and CFAF 125 million inSA-B, representingapproximately 50 per cent o f the authorized allocation o f this Special Account. The remaining balance will be made available when the - 78 - aggregate disbursementsunder categories 1, 2, 3 and 5 will exceed USD 1.5 million. The Special Accounts will be used for all payments in an amount below 20% o f the initial deposit to the Special Account. Replenishment applications will be submittedmonthly. Further deposits by the Bank into Special Accounts will be made against withdrawal applications supportedby appropriate documents. Under the report-based disbursements, the advance to the special account will be based on a forecast o f expenditures for a period not exceeding 6 months. Replenishments will be made quarterly on the basis of FMRsshowing expenditures made duringthe previous quarter, together with a forecast ofexpenditures for the upcoming 6 monthperiod and reconciledbank statements. Project account. The Borrower will open a Project Account (counterpart funds account) ina Commercial bank,inaccordancewithterms andconditions acceptable to the Bank, inorder to receive the compensation fundnecessaryto cover the part ofthe Borrower with respect to the total cost ofthe Project and under the differentcategorieswhenever necessary. Beforethe effectiveness ofthe Project the Government will deposit an initial contribution of FCFA 100million inthe Project Account and within six months of Effectiveness Date, deposit into the Project Account an additional contribution of FCFA 100million andkeep it afloat in time up to the amount of the initial deposit (FCFA 200 million), or whenever the balance of the account is lower than FCFA 100 million. The Government will make ensure that amounts deposited in the Project Account are used exclusively for the expenditures relating to goods, services and works as part o f the different components of the Project. 2) Flow of funds. Resources needed for financing of program activities will flow from (i) GEF Grant Account for Direct the Payments to be made by the Bank to suppliers, (ii) the GEF Special Accounts A and B maintained in commercial banks in N'Djamena and acceptable to the Bank and (iii) Project Account for the the counterpart funds. The Financial Management Specialist (FMS) o f the PROADEL and the GEF Accountant will be incharge o f the financial managemento f the project. The Coordinator of the PROADEL, the GEF Specialist, and the FMS o f the PROADEL will countersign all the checks for the payments to be made under the Special Accounts A, B and the Project account. In case o f absence of the Coordinator of PROADEL andor the FMS, the Monitoring and Evaluation Specialist and the Principal Accountant (the Accountant o f the PMU), together with the GEF Specialist will countersign all the checks for payments to be made on these accounts. Incase of absence of the GEF Specialist, the Ministry o f Environment and Water will designate somebody to countersign all the checks. Inall case, all the three signaturesarerequired. Under the supervision of the project FMS, the GEF Accountant will prepare all the supporting documents for the replenishment of the Special Accounts to be submitted to the Bank through the Ministry o f Planning. The Project Account will receive counterpart funds in compliance with the terms o f the GEF Grant Agreement. - 79 - Flow of funds scheme (see Annex 11of PAD) Table C: Allocation of Development FinancingProceeds IExpendituresCategory IGrant Amount in FinancingPercentage US% I Vehicles andEquipments 300,000 1 100%of foreign expenditures 82% o flocal exDenditures Consultant Services, Audits and Studies 1,400,000 82% Trainings, Seminars & Workshops 900,000 100% Grants for Sub-projects 2,500,000 100%o f amount disbursed OperatingCosts 600.000 78% Unallocated 300,000 Total GEF Grant 6,000,000,00 FinancialManavementArranvements 1)AccountingSystem, AccountingPoliciesandProcedures (i) computerized financial.managementsystem inplace for the management of the Local The Development Program Support Project, assessed acceptable to the Bank, will be extended and used for the GEF operations; (ii)The accountingactivities for GEFoperationswillbeundertheresponsibilityofthe FMSofthe PROADEL who will be helped by a GEF Accountant to be recruited specifically to handle the accounting activities of the GEF funds; (iii)specificGEFSpecialisthasbeenappointedontermsofreferenceacceptabletotheBank, A (iv) The production of a Project Administrative, Financial andAccounting Manual for GEF funds. The systemto beput inplace. The followingdevices willbeputinplace: 0 A Steering Committee (Comite' d'Orientation et de Pilotage,COP) composed of different ministries involved inthe project implementation; 0 A Project Management Unit (PMU) responsible for the day to day operations of the project, composed in particular by the PROADEL National Coordinator, the GEF Specialist, the PROADEL FMS and the GEF Accountant ; 0 Capacity building activities in financial management to cany out to the benefit of Communities (Community-Based Organizations and Producer Organizations) by NGOs or Private Sector Agencies; - 80 - 0 A Project Administrative, FinancialandAccounting Manual for the PMUandthe LPMUs; A simplified financial management procedures manual for Community-Based Organizations (CBOs) andother localinstitutions ; 0 The opening of the two GEF special accounts in a commercial bank inN'djamena to be managed bythe Coordinator o fthe PROADEL, the FMS ofthe PROADEL and the GEF Specialist; 0 The opening of the GEF project account ina Commercial Bank inN'djamena to be managed as above. 2) RiskAssessment Country Risks Refer to the annex 6: PROADEL PAD Project Risks Refer to the annex 6: PROADEL PAD 3) Booksof Registry In addition to the computerized accounting system installed, and the books needed to maintain an accurate andcomplete record o f transactions, the GEF accountant will maintain a set o f additionalbooks o f registry, for GEF operation. 4) Budgeting The project annual budget will have to be approved by the Committee. Counterpart funds will have been inscribed in the Government annual budget and therefore, budgeting for project counterpart funds will follow the Government budget cycle. 5) FinancialReporting Separate financial statements will be prepared for the GEF activities. They will comprise: (i)statement a o f source and application o f Funds for the project during the current financial year and cumulative since the start o f the project; and(ii)balance sheet. These two financial statementswill be prepared annually. a Inaddition, the project management unit will submit quarterly Financial Management Reports (FMRs) including financial reports, physical progress reports andprocurement/contracts reports, withn 45 days of the end ofthe reportingperiod. 6) Audit Arrangements Financial Audit. The financial statements o f the GEF activities will be audited for each fiscal year by PROADEL auditor in accordance with standards on auditing. Audit reports o f reasonable scope and detail will be submittedto the Bank within six months of the end o f the audited period. The auditor will provide an opinion on: (i) project financial statements (statement o f Source and Application o f Funds the and Balance Sheet); (ii) statementof expenditures (SOE); and(iii) special account. the the -81 - Technical Audit. Contracts with beneficiaries, whose templates are appended to the PIM, refer to micro-project techcal audits. They are ordered and managed systematically or randomly by the PMU or the LPMUs. For this purpose, the Project canhire firms. 7) Staffing and Training The Coordinator ofthe PROADEL, the PROADEL FMS andthe GEF Specialist will be responsible for the management of the GEF Grant. The FMS o f PROADEL will oversee all accounting and financial management duties and will be assistedby a GEF Accountant.. 8) Training Plan The Financial Management staff will attend workshops and training sessions on the new financial management computerized system before project effectiveness. The FMS, the GEF Accountant, the Procurement Specialist and the GEF Specialist will all be trained in procedures relating to the use o f GEF funds (that is Special Accounts, SOEs, Procurement, FMR, etc.) and in Financial Management including intemal controls, information systems andcomputer applications. 9) Monitoring and Supervision Project monitoring will take the following forms: 0 Monthly and quarterly and half-yearly monitoring reports; 0 Annual extemal audit o f the Project. Supervision will be carried out by the Project Financial Management Specialist (FMS) at least twice a year but also before effectiveness and all along the implementation period. Half- yearly reports and also annual audits and Management letters from the extemal auditors will be reviewed by the FMS. Close supervision will also be performed by the field-based FMS, to ensure that the PMU financial management system is operating adequately. - 82 - 10) FinancialManagementAction Plan Task Responsibility Completion date 1.Financial, Administrative andAccounting Manual. PROADEWGCE Done 0 Preparation o f TOR PROADEL/GCE Done 0 Selection o f consultant Consultant Done 0 Preparation of the draft manual PROADEL/GCE & Before Effectiveness 0 Review andvalidation o fmanual Comitk Techruque PROADEL/GCE and Before Effectiveness 0 Finalization and submission to IDA. ComitCTechruque 2. ImplementationManual. PROADEWGCE Done 0 Preparation o f TOR PROADEL/GCE Done 0 Selection o f consultant Consultant Done 0 Preparation of the draft manual PROADEL/GCE Before Effectiveness 0 Review andvalidation of manual Comitk Technique Before Effectiveness 0 Finalization and submission to IDA. PROADEL/GCE and Comitk Technique Open and make initial deposit in the Project Account PROADEL/GCE Before Effectiveness (counterpart funds account). - a3 - Annex 7: ProjectProcessingSchedule CHAD: Community-BasedEcosystem Management Project ProjectSchedule Planned Actual ITimetaken to preparethe project(months) IFirst Bank mission(identification) 1 Appraisalmissiondeparture 1II III 02/28/2005 III ~~ Negotiations 05/02/2005 05/09/2005 PlannedDate of Effectiveness 09/30/2005 Prepared by: The project has beenprepared by a multi-disciplinary team with representatives from the Government as well as from the civil society. It was supervisedby Mrs Mahadie OuthmanIssa, from the Ministry o f Environment andWater. Preparationassistance: PDFbfunds for US$250,000. Bank staff who worked on the proiect included: Name Iity Franqois Rantrua SFRSI, Senior Corporate Strategy Officer Noel Chabeuf AFTS3, Livestock and Pastoralism Valerie Layrol AFTS3, Rural Development Officer, Task Team Leader Soulemane Fofana AFTS3, Operations Analyst Ousmane Seck AFTS3, Senior Agncultural Specialist Glenn Hodes AFTS4, Environmental Specialist Nathalie Munzberg LEGAF, Counsel Emile Finateu AFTFM, Sr. Financial Management Specialist Hugues Agossou AFTFM, Sr. Financial Management Specialist Wolfgang Chadab LOAG2, Finance Officer Chloe Milner AFMTD, RuralDevelopment Specialist Korotimi Sylvie Traore AFTS3, Language Program Assistant Pierre Morin AFTPC, Sr. Procurement Specialist Henri Aka AFTPC, Procurement Specialist Charles Donang AFTPC, Procurement Specialist Enos Esikuri ENV, Technical Specialist Thomas Walton AFTSD, Leadregional Coordinator - 84 - Annex 8: Documents in the Project File* CHAD: Community-BasedEcosystem ManagementProject A. Project ImplementationPlan 0 Manuel d'extcution volet GCE (avril2005) ; 0 Manuelde suivi et &valuation(avril2005) ; Manuelde Proctdures Administratives, Financieres et Comptables (mai 2005) B. Bank Staff Assessments 0 (( Aide-mCmoire de lamission d'identification duPIDR (March 2001) ; D 0 (( Aide-mtmoire de la mission d'tvaluation du PROADEL (December 2002) ; )) 0 Decisionmeetingminutes(February2005) ; 0 ((Aide-mtmoire de lamissiond'tvaluation du volet GCE duPROADEL )) (March 2005). C. Other 0 H Etude d'impact socio-environnementale du PROADEL (November 2002) ; >) 0 ((Etude d'impact socio-environnementale duPSAOP (November 2002) ; )) 0 ((Protectiondes barrages duPSAOP (November 2002) ; )) 0 ((Plan de gestion des pesticides duPSAOP (November 2002) ; )) 0 Various techtllcal documents on PRODABO andPRODALKA. *Including electronic files - 85 - Annex 9: Statement of Loans and Credits CHAD: Community-Based EcosystemManagementProject 23-May-2005 Differencebetweenexpected and actual OriginalAmountin US$ Millions disbursements' Project ID FY Purpose IBRD IDA Cancel. Undisb. Orig Frm Rev'd PO66998 2005 TD-LocalDev ProgSupAPL (FY05) 0.00 0.00 0.00 24.07 0.00 0.00 PO74266 2004 TDAgr Services& POS SIL (FY04) 0.00 20.00 0.00 19.97 -1 39 000 PO77240 2003 TD CRITICALELEC& WATER Services 0.00 54.80 0.00 37.51 2422 000 PO00527 2003 EducationSector Reform 0.00 19.13 0.00 45.05 783 422 PO72226 2002 2nd Pop &AIDS 0.00 24.56 0.00 15.77 354 -1 49 PO35672 2001 TD Nat Tramp ProgramSupportProject 0.00 67.00 0.00 44.11 37 13 000 P062840 2000 TD-PetroleumEconomyMgmt (FYOO) 0.00 17.50 0.00 1.55 093 000 P044305 2000 TDiCMPIPELINE 39.50 0.00 0.00 3.05 -1 78 000 PO48202 2000 TD-Petroleum Sec Cap Bldg Pq (FYOO) 0.00 23.70 0.00 0.95 7 41 0 00 PO55122 2000 HealthSector Support 0.00 41.51 0.00 15.88 1266 -1 89 Total: 39.50 268.20 0.00 207.89 90.55 0.85 CHAD STATEMENT OF IFC's Held and Disbursed Portfolio May - 2005 InMillions USDollars Committed Disbursed IFC IFC FY Approval Company Loan Equity Quasi Partic Loan Equity Quasi Partic 2002 FinadevTchad 0.00 0.19 0.00 0.00 0.00 0.00 0.00 0.00 2003 Financial Tchad 1.28 0.00 0.00 0.00 1.28 0.00 0.00 0.00 2000 TOTCO 13.90 0.00 0.00 13.90 13.90 0.00 0.00 13.90 Total Portfolio: 15.18 0.19 0.00 13.90 15.18 0.00 0.00 13.90 Approvals PendingCommitment FY Approval Company Loan Equity Quasi Partic 2002 Finadev Tchad 0.28 0.00 0.00 0.00 Total PendingCommitment: 0.28 0.00 0.00 0.00 -86- Annex IO: Country at a Glance CHAD: Community-Based Ecosystem Management Project Sub- POVERTYand SOCIAL Saharan Low- Chad Africa income 2003 Population, mid-yearfmillions) 8.6 703 2,310 Life expectancy GNI percapita(Atlas method, US$) 240 490 450 GNi (Atlasmethod, US$ billionsJ 2.1 347 1,038 Average annual growth, 1997-03 7 Population(%J 3.0 2 3 1 9 Laborforce (%J 3.1 2 4 2 3 3NI Gross Der primary Most recent estimate (latest year available, 1997-03) =pita nroliment Poverty(% ofpopulationbelownabonalpovertyline) UrbanpopulationI%of totalpopulation) 25 36 30 Lifeexpectancyat birth (years) 48 46 58 1 Infantmortality(per 1,000livebirths) 117 103 82 Child malnutntion(% of children under5) 28 44 Accessto improvedwater source Access to an improvedwater source (% ofpopulation) 27 58 75 IlliteracyI%ofpopulationage f5+) 54 35 39 Grossprimaryenrollment I%of school-agepopulabon) 73 87 92 Male 90 94 99 -Chad Low-income group Female 57 80 85 KEY ECONOMICRATIOSand LONG-TERMTRENDS 1983 1993 2002 2003 Economicratios* GDP (US$ billions) 0 83 1.5 2 0 2 6 Grossdomesttc investmenVGDP 2 7 9.8 61 9 53 1 Exportsof goods and servicedGDP 164 13.3 122 20 6 Trade Grossdomesticsavings/GDP -44 -6.2 9 8 21 0 Gross nationalsavings/GDP -3 5 -5.2 104 14 1 Currentaccountbalance/GDP -9.1 -15.0 -51 5 -39 0 InterestpaymentdGDP 0.0 0.5 0 4 0 4 TotaldebffGDP 26.4 52.7 83 8 56 9 Totaldebt service/exports 1.o 8.5 102 8 5 Presentvalueof debffGDP 30 4 Presentvalue of debffexports 244 1 Indebtedness 1983-93 1993-03 2002 2003 2003-07 (average annualgrowth) GDP 3.8 4.3 10.5 9 7 110 Low-incomegroup GDP percapita 1.1 I.I 7.3 6.6 17.8 STRUCTUREof the ECONOMY 1983 1993 2002 2003 (% of GDP) Agriculture 39.2 32.5 38.7 45.6 industry 13.3 14.1 15.4 13.5 Manufacturing 11.1 11.2 13.5 11.5 Services 47.6 53.5 Privateconsumption 98.3 96.2 Generalgovernment consumption 6.1 10.0 Imports of goods and services 23.5 29.3 64.2 52.6 1983-93 1993-03 2o02 2003 (average annualgrowth) Growthof exportsand imports(%) Agriculture 3.8 4.9 9.5 31.0 150 Industry 2.7 6.9 I.3 -3.7 1w Manufacturing Services 3.9 3.4 13.0 0.4 50 Privateconsumption 1.9 4.0 13.6 5.0 Generalgovernment consumption 5.8 I.6 9.7 3.0 50 Grossdomesticinvestment 9.7 26.5 56.7 -16.6 -Exports *Imports Importsof goods and services 2.7 15.6 51.2 -12.3 - 87 - Chad PRICESand GOVERNMENT FINANCE 1983 1993 2002 2003 Domesticprices (% change) 15 Consumer prices -7.0 5.2 -1.8 10 ImplicitGDPdeflator 0.0 -1.3 3.9 -0.5 5 Governmentfinance 0 (% of GDP, includescurent granfs) 5 Currentrevenue 2.7 7.9 7.8 8.0 -10 Current budgetbalance -4.6 -2.0 -1.6 1 WGDPdeflator I Overallsurpluddeficit -CPl , -12.3 -5.4 -5.8 TRADE 1983 I993 2002 2003 (US$mi//ions) Exportand import levels(US$ mill.) Total exports (fob) 152 172 455 Cotton 57 48 71 T Cattle 44 75 107 750 Manufactures 0 Total imports (cif) 423 812 830 5w Food 6 Fueland energy 4 27 36 250 Capital goods 125 0 Export price index (1995=100) 115 64 105 97 98 99 00 01 02 O3 1 Importprice index (1995=100) 134 63 74 Termsof trade (1995=100) 86 101 143 BALANCEof PAYMENTS 1983 1993 2002 2003 (US$ millions) Currentaccountbalanceto GDP (Oh) Exportsof goods and services 102 195 245 543 0 Imports of goods and services 177 429 1,295 1.388 Resource balance -74 -234 -1,050 -845 -10 Net income 1 -12 -30 -272 -20 Netcurrenttransfers -3 26 43 89 -30 Current account balance -76 -219 -1,038 4,029 -40 Financingitems(net) 94 187 1,104 981 5 0 Changes in net reserves -17 32 -67 48 Memo: ReserveshClUdhggold (US$ millions) 213 165 Conversion rate (DEC, locai/US$) 381.1 283.2 696.0 581.O EXTERNALDEBTand RESOURCEFLOWS 1983 1993 2002 2003 /US$millions1 Compositionof 2003 debt (US$ mill.) Total debt ouistanding and disbursed 219 772 1,285 1,499 IBRD 0 0 9 31 F 13 23 IDA 36 284 623 773 A. ?1 Total debt service 1 17 26 46 IBRD 0 0 0 0 IDA 0 2 5 7 Composaionof net resourceflows D 420 Official grants 71 106 95 B 773 Officialcreditors 12 53 87 111 Privatecreditors 2 -1 -1 0 Foreigndirect investment 0 15 901 0 Porffoiioeauitv 0 0 0 0 C 106 World Bank program Commitments 0 56 55 79 A - IBRD E Bilateral Disbursements 0 25 73 116 B IDA - D Other multilateral . F Private PrinciDal repavments 0 0 2 2 C IMF . G Short-term --- Netflows 0 24 71 114 interestpayments 0 2 4 5 Nettransfers 0 22 67 109 Development tconomics lull 3/04 - 88 - Additional Annex I 1:[Flow of Funds] CHAD: Community-Based Ecosystem ManagementProject GEF GrantAccount CounterpartFunds InWashington (Government) GEFSpecialAccount GEFSpecialAccount SA-A [Sub-projets] SA-B I I 1 I PMU I 1 Communities Accounts Service providersI suppliers I I - 89 - Additional Annex 12: Review by Expert from STAP Roster CHAD: Community-BasedEcosystemManagementProject Dr.Ciro Gardi Professor of Geopedology University o f Parma (Italy) Department o f Environmental Science Parco Area delle Scienze, 33A 43100Parma (ITALY) Tel: +39 521 905692 Fax: +39 521906611 e-mail:ciro gardiaunipr it . . Key issues Scientific and technical soundness of the project Soil degradation process and loss of biodiversity are considered the major threat for the future o f our planet. Chad, one of the poorest countries o f the world, is facing both o f these threats. Deforestation, soil quality degradation and desertification represent a sequence o f process that in Chad is exacerbatedby the increasing demographic pressure. The unsustainableuse o f wood fuel and charcoal, and overgrazing are the factors promoting a vicious circle that lead to ecological damages and soil degradation. Within the main objective o f Chad Government to reduce poverty and to promote sustainable development, biodiversity conservation represents the priority o f the GEF Project, although other focal areas are involved. The current scientific theory o f both ecology and social science seems to be fulfilled. The ecological approach include the preservation o f both natural and agricultural biodiversity, including genetic, species and landscape diversity. The social aspects reflect the actual guidelines to promote a participatory mechanism with local communities and to shft towards a decentralized approach to natural resources management. The GEF intervention will allows better integration of environmental aspects in the ongoing development programs. The need to avoid irreversible environmental damages is essential in a transitional economy, where the change induced by the oil revenues can be very fast. Biodiversity conservation will be acheved through distinct mechanisms operating at two different scales: at local scale the co-financing mechanism of sub-project related to biodiversity conservation and support to local community for capacity building; at broader scale applying the integrated ecosystemmanagement principles, - 90 - Identification of the Global Environmental Benefits Within the sub-saharanregion, Chad has unique, globally important ecosystems that are at risk of serious irreversible degradation; firthennore the ecosystem fragility is exacerbated by demographic pressure and land-use conflicts. Even if environment and nature protection is a priority in Chad, the scarcity of governmental resources require an increase in external financing to achieve an effective biodiversity conservation policy. Within this framework the GEF project aims to integrate the environmental issues into the Chad development policy. The environmental benefits deriving from the success o f the project are clearly identifiedand concernmainly biodiversity conservation and soil protection. Fit within the context of the goals of GEF and relevant Conventions Project fits well within the goals, strategies andpriorities o f the GEF. It also fits well within the objectives o f the Biodiversity, Desertification and Climate Conventions. IfLake Chad and Lake Fitriwill be included inthe priorityzones alsothe RamsarConvention onwetlandswillbe fittedbythe activitiesproposed inthe project. Regional Context All the proposed activities will be realized within Chad, however the environmental and socio-economic conditions o f Chad canbe considered representative o f the wider area including the sub-saharan countries. Replicability of the project The fight against desertification, soil and biodiversity conservation and poverty reduction represent common issues for the sub-saharan region and for most countries of the Afncan continent. The possible achievement o f these results through a participatory approach, will allow t h s project to become a model for manyAfrican countries Sustainability of the project The sustainability of the project relies on the progressive integration of donor financing with other financing mechanism, such as: ordinary public resources; oil revenues; subproject beneficiary provision; local taxes for natural resources use; The long-term risk of PROADEL failure due to the lack of financing has beenratedas "medium". -91 - Secondarv issues Linkage to other focal areas This project is a clear case of multifocal activity. Evenif it is stated that biodiversity is the priority focal area, many of the proposal activities will improve soil quality, andpromote carbon storage inboth, soil and biomass. Consequently the project has a clear llnk with the climate change focal area and to the soil conservation issues. The reduction o f wood harvesting and the increase in soil organic carbon stocks, will significantly reduce GHGemissions. Linkage to other programs and action plans at regional or subregional level GEF activities are adequately linked with other international and national programs in Chad. Special coordination is realized between the first phase of PROADEL project and the GEF that will subsidize incremental activities which will have a positive impact on the global environment. Coordination will be realized also with other ongoing programs inChad financed by GEFAJNDP, IDA, European Commission, bilateral cooperation. The objectives of the project are inaccordancewith the National EnvironmentalPlan, Biodiversity Strategy and Action Plan andNational Action PlanAgainst the Desertification. Degree of involvement of stakeholdersin the project The project is based on the Community Driven Development (CCD) approach, according whrch a strong and effective participation of beneficiary is recommended. All over the project the importance o f strengtheninglocal capacity and increasing stakeholders involvement is emphasized. It is especially under the PROADEL component 1 (Financial support to local development subprojects) and the component 2 (Capacity building for communities) that the importance o f participatory approach is stressed. The matclung grants o f component 1 will be assigned to local community subprojects presented by groups o f stakeholders. The management o f protected areas and the identification o f new priority intervention zones will involve the participationof community leadersandthe use of indigenous knowledge. Capacity building aspects As indicated in the previous paragraph, the project includes many activities to promote and involve the indigenous knowledge and the capacity building, especially with respect to natural resources andprotected area management.Specific training and organizational support will improve the skills o f communities inthe integratedecosystemmanagement. Innovativenessof the projects The project presents many innovative aspects: coordination between a Community Driven Development approach withthe needs o f environmental protection; large scale application ofthe integratedecosystemmanagement; possibility to scale-up the project; - 92 - support to decentralization process; widespread use o f participatory approach and capacity buildingo f local community; small, localproject co-financing; involvement of local communities inthe managemento fprotected area; use o f oil revenues for ruralsustainable development; sound environmental monitoring systembasedon GIS techniques and on a set o f ecological indicators. Responseto STAP Review The project i s very well conceived and has a Replication, dissemination, and scale-up of highpotentialto improve environmental specijic techniques and interventions that management all over the country. Particularly successfully ameliorate local land and water interesting is the possibility to scale up the management as well aspromote effective interventions from local to basin or broader biodiversity conservation at the ecosystem level is scale. an explicit goal of theproject. This will be emphasized in threepriority areas Few details on the scientific andtechcal More detailed environmental studies will be aspects of the environmental measures are undertaken on ecosystems in the identijied priority provided. Selection criteria o f the proposed zones and studies of land management techniques activities inecosystempreservation, that maximize economic and environmental returns reforestation, fight against desertification, soil in each area are underway through GEFPDF-B conservation and sustainable agculture are not support. I n addition, an environmental and social articulated. For instance, is there any option for assessmentof the PROADEL has been undertaken organic agriculture? Will be a shift from cotton before appraisal aspart of the conditions of IDA basedagnculture towards a multi-crop support. As a result of these measures,final agriculture? What will be the methodology eligibility andprioritization criteriafor adopted for reforestation? subprojects that will beproposed by communities under component #Ihave been determined and will be refined for the GEFsupported subprojects and integrated into the IEM Guideline Document. Baseline activities, to include those under PROADEL, and, inparticular, ASPOP, will support communities andproducers 'organizations in theproject boundary area to diversifi their agricultural cultivation, adopt co-cropping strategies and sustainable agricultural techniques - 93 - e.g., direct seeding), and pursue iigher-value-added exports, that may include ,ertiJably organicproduce. Inareasneighboringwetland ecosystems, Through the baseline and GEF activities, particular attention should be devoted to communities will receive training on sustainable agriculture and pastoralism. Irrigation, agricultural cultivation techniques, including pesticide andfertilizer application, cropland pesticide and fertilizer management and their expansion and overgrazing are the most decisive environmental impacts. A pest management plan activity negatively influencingthe ecosystem has been prepared during preparation of ASPOP functions and biodiversity. to assess risks and propose mitigation measures. In terms of pastoral activities, one strategy that will bepromoted is theplanting of fodder grasses in buffer zones surrounding wetlands and grazing corridors in order to prevent encroachment by pastoralists into core wetland areas that can cause permanent desiccation. Given that a large share of pastoralists in Chad are migratory, redoubled efforts will be placed on raising awareness and building capacity in interchanges and respite locations. I s there any plannedactivity concerning the The objective of theproject in this domain is to evaluation or functionality of ecological Ytrengthen the managementplans of existing or "network ofprotected areas"? mminently planned protected areas in thepriority :ones, inparticular integrating community 7articipation andjoint management principles. dlthough establishing afunctional network or vider corridor or protected areas would be mportant, the GEF- supported Lake Chad Basin woject,for example, is operating at a much larger patial scale and is better positioned to tackle iome of these issues. As PROADEL is structured 1s an APL, there will be an opportunity to consider `his objective in a subsequently project, which may 5e eligiblefor additional GEFsupport at that time. Reclamation of arable landshouldbe carefully This comment will be taken into consideration in evaluated inorder to avoid irreversible soil `heProject Implementation Manual (PIM). degradation processandor of site damagesto wetlands. - 94 - Direct seeding is beneficial, but in some cases Crop rotation and cover crops can be used to require herbicides. Use o fherbicides shouldbe lnanage weeds without resorting to herbicides in avoided inareas that abut wetlands or the event that direct seeding is deemed an vulnerable areas @e. groundwater zppropriate local strategy. I t should be recalled vulnerability). "Greater access to apcultural that the majority of smallholders in Chad cannot inputs" included inGovernmental strategy can zfford agricultural inputs such asfertilizer and insome casesconflict with sustainability goals. herbicides. GEF incremental activities under the umbrella of PROADEL and ASPOP will ensure that use of these inputs, where desirable and xonomicallyfeasible, follows bestpractices for wvironmentalsustainability. Some o f the key performance indicators could Underproject componentfour, theproject will be tacked usingremote sensing techniques. rtrengthen environment information and analysis `n thepriority areas, which will include the use of pemote sensing and GISpanel data. Forest :overage and water resource availability will be wonitored inparticular. Could you give more details on the sustainable With GEFBlock-B support, targeted research is agnculture techques that should be adopted? 5eing undertaken to identi&, spec$cally, the most The effective environmental benefit of these zppropriate, economically viable, and technique should be evaluated on a case-by-case znvironmentally beneficial agricultural techniques basis, paying attention to possible negative 2nd land management interventionsfor each of the side-effects. `argetedpriority zones. Thus, these vecommendations will be carried out on a :ase-by-case basis. The assessments will consider rome of thefollowing techniques: direct seeding, "cordons pierreux", integrated crop-livestock dots, better crop management, rainwater harvesting, integrated plant nutrition management, 2nd better residue and manure management. 4lthough many of these measures increase soil brtility and soil organic carbon retention, other yotential negative social and environmental ride-effects will be taken into account during Yroiect imdementation. "Open-access" land-use policies represent a Both the baselineand GEF incrementalactivities threat for natural resources conservation. How support highly participatory processesfor local c a n this be addressed w h l e avoiding conflict engagement and active management of shared natural with local traditions and cultures ? resources,land being aforemost concern. These processes will include the integration of indigenous knowledgeand traditional leaders in local developmentplanning that takes into accountIEM principles. In creating incentivesfor local managementand collective responsibilityfor renewable natural resources,it is believedthat conflict can be minimizedand resourceuse will be - 95 - better rationalized. The evaluationprocess of LDPs and subproject Representatives of technical ministries would be on proposals is very articulated and starts from a the committees in charge of reviewing LDPs and local level (sub-prefectoral), I s there any riskof subprojects proposals, thereby helping to ensure "particularism" due to this method o f consistency with national policies and standards. evaluation? Technicians in charge of assisting communities in thepreparation of LDPs and subprojects would work in close collaboration with local Project Management Units and use common tools such as the IEM Guideline Document. Thesetools, will among other things, establish apositive list of eligible subprojects, thus avoiding any particularity in subprojects or LDPs.Finally, Departmental Development Frameworks integrating all strategies and taking into consideration all current development activities will beprepared under PROADEL to ensure better consistency between local and centralized activities. How is it determinedwhen anareabecomes Thekey performance indicators have been reJined "protected from degradation"? What are the since STAP submission and this is not longer an criteria? indicator. - 96 - MAP SECTION