Agency’s Project ID: 3306

GEFSEC Project ID:

Country: Bosnia and Herzegovina

Country Eligibility: Bosnia and Herzegovina signed the Convention on Biodiversity on August 26, 2002.

Project Title: Biodiversity Conservation in Livanjsko Polje

GEF Agency: UNDP

Other Executing Agency: N/A

Duration: 6 months

GEF Focal Area(s): Biodiversity

GEF Operational Program: OP2 Coastal, marine and freshwater ecosystems

GEF Strategic Priority: SP2 Mainstreaming BD into Productive Landscapes

Estimated Starting Date: February 2005

Financing Plan (US$)
GEF Project
PDF A / 50,000

Sub-Total GEF

/ 50,000

Co-financing

GEF Agency / 32,582
National Contribution
In Cash
In Kind
Others
Sub-Total Co-financing: / 32,582
Total PDF Financing: / 82,582

Record of endorsement on behalf of the Government:

H.E. Mr. Dragan Doko / Date: 15 October 2004
Minister,
Ministry of Foreign Trade and Economic Relation of Bosnia and Herzegovina/

GEF Political and Operational Focal Point

This proposal has been prepared in accordance with GEF policies and procedures and meets the standards of the GEF Project Review Criteria for PDF Block A approval.

Mr. Frank Pinto
Executive CoordinatorMr. Yannick Glemarec
IA/ExA Coordinator / Ms. Natalia Olofinskaya
Regional Coordinator a.i.
Tel: +421 2 59 337 328
Date: 23 February 2005Date: /

PROJECT DEVELOPMENT FACILITY

Request for PDF Block A for MSP


PART I: Project information

1. Project linkage to national priorities, action plans and programs

The country, with the assistance of the World Bank, has developed a National Environmental Action Plan which identifies the main priorities and actions in the area of the environment[1]. The priorities of the NEAP include integrated management of water and land resources, the protection of biological and landscape diversity and sustainable development of rural areas. The NEAP also identifies specific actions:

·  The need to develop integrated river basin management plans

·  The need to develop spatial planning and development programs

·  The need for balanced management of biodiversity, geodiversity and landscape diversity

The mid-term development strategy (PRSP) of Bosnia Herzegovina for 2004-2007 highlights the significance of environment and natural resource sectors in the country's development.

The PRSP describes environmental issues with a need for reforms in land, water, forest, and energy sectors. In this discussion, the PRSP is largely relying on the priorities defined by the NEAP as described above, stressing the importance of enhancement of the systems of land management and soil protection, establishment of a system of integrated land management, particularly for rural areas, in line with EU standards and accepted international obligations. The policy document particularly focuses on degradation, deforestation, erosion, overgrazing and mining issues, with a clear recognition of their linkages with poverty in the country. For the agricultural sector the PRSP stresses the importance of environmental protection through the promotion of sustainable agriculture, the improvement of access to financial services and the strengthening of cooperatives and associations in the sector. For the water sector PRSP stresses the improvement of integral and inter-sectoral planning of exploitation of water resources.

2. Project Rationale and Objectives

Bosnia i Herzegovina can be broadly characterized as a mosaic of huge Karst Poljes and high mountains, with Poljes covering about 30 % of the country’s surface. Poljes are large closed depressions draining underground, with flat floors across which there may be intermittent or perennial streams. Poljes may be liable to flood and become lakes, and their floors make a sharp break with parts of surrounding slopes. Polje is the local word for “field”, which means also flat and very fertile ground where people may plant vegetable and harvest hay for the winter - in contrast to the Karst hills.

In their original status as grasslands or wetlands, poljes often harbor biodiversity of global importance, including migratory species and grassland bird species in general. At the same time, poljes are often exploited unsustainably for peat, agriculture, water and other economic goods and services.

Given the extent of coverage nationally, poljes represent an important element of landscape and biological diversity, as well as a significant factor in the country’s economy. At the present time, Bosnia i Herzegovina lacks the policy, legal and regulatory frameworks, the fiscal and market incentives, the institutional capacities and other required ingredients to ensure conservation of the globally significant biodiversity of the country’s poljes, while using their resources for economic development. To be realistically effective, these elements should be derived from local experience and lessons learned, with the benefit of international inputs. By focusing on the country’s most important polje, the project proposed here will generate experience, lessons learned and good practice with the aim of producing national level policy inputs to affect sustainable use of poljes throughout the country.

Livanjsko Polje, one of the best-preserved karst poljes of Bosnia and Herzegovina (BiH)[2], is situated in the Hercegbosanska Zupanija (Livno district) at the border with Croatia. The massif of the Dinara Mountain (1839 m) separates the region from the Adriatic Sea, only 30 km away.

According to the Ramsar Convention, Livanjsko Polje is the largest wetland in the country and the largest Karst Polje worldwide. It has been estimated that the regular floodplain comprises at least one third of the Polje, with more than 10,000 hectares. Livanjsko Polje is an excellent example of a well preserved “Temperate Grassland”, a biome which is under represented in the protected area systems world wide, according to the United Nations List of Protected Areas (Chape, et al, 2003). According to the EU Bird Directive, Livanjsko Polje is an Important Bird Area, and it is of unique international value for the Corncrake. For the Balkan Peninsula, the site is of great conservation interest as it has maintained unique bog, marsh and grassland habitats important for several breeding birds, such as Montague´s Harrier, Lesser-spotted Eagle, Redshank, Snipe and Great Bittern. According to the criteria in Tucker & Heath (2000), the site fulfils the criteria A1, B2, B3.

The factors endangering the ecological and hydrological functions of Livanjsko Polje are

1.  Peat excavation. The most serious impact comes from the excavation of peat in the northern part of Livanjsko Polje. This is an area that emerged from the combined effects of typical flooding of Karst Poljes and the processes of high bog formation. The area has maintained a unique mosaic of habitats but these have been already transected by canals and dikes. The Croatian firm responsible for peat excavation regulates and drains the high bog and flooded swamp complex and heavily impacts not only the unique flora and fauna of this site but also the entire hydrological system including the water supply in Croatia[3]. The bog areas are important natural water storage systems, which should be maintained. Drainage will lead to mineralisation processes that will release nutrients from the swamps as well as carbon dioxide. In addition, shortage of water in summer will increase desiccation of Dinara cave systems as well as the remaining Croatian wetland sites.

2.  Planned ameliorations. For a number of years, the authorities of BiH have been planning the total regulation of the water regime in Livanjsko Polje. However, none of these projects has been implemented thus far. These projects, still in the pipeline, were promoted as the only and best solution for the development of the area. As none of the projects has progressed, environmental impact assessments are needed for the review of these plans in order to identify impacts on the areas habitat and species diversity.

3.  Use of the water for energy production. Water from Livanjsko Polje flows to the hydroelectric dam at Orlovac, or, depending on the intensity of annual flooding, water may flow to the Lipa Reservoir inside Buško Blato. That is, the water from the project target area is a critical source for energy generation, but during high floods, the excess is channeled to a buffer reservoir outside the polje. The long-term impact of this regulation on Livanjsko Polje is not known, especially concerning the duration, frequency and height of floods. It is important to understand this impact and ensure that it does not affect the future conservation of the still relatively intact central and northern parts of the Polje.

4.  Reduced traditional grassland management. While in the central and eastern part of the Polje mowing and grazing is present over large areas, the meadows in the northern part are no longer in use. While the bog areas have natural vegetation, which requires protection, the grassland ecosystems would benefit from an increased rate of use. This is important for the preservation of the high populations of grassland birds as Corn Crake, Redshank and Snipe. The biodiversity of grasslands in the Balkans is directly related to the pattern and length of traditional use.

The project goal is the conservation of polje biodiversity through integration of biodiversity principles and practices into polje land use systems in Bosnia i Herzegovina. the conservation of biodiversity in the Livanjsko Polje and the generation of knowledge applicable to the conservation and sustainable use of similar ecosystems in Bosnia and Herzegovina.

The project objective is the generation of knowledge applicable to the conservation and sustainable use of polje ecosystems in Bosnia i Herzegovina through the demonstration of conservation practices and techniques in the Livanjsko Polje.

3. Expected Outcomes

The project expected outcomes are the following:

1.  Extractive activities in the Livanjsko Polje, specifically peat and water extraction, neither affect the long-term sustainability of the project site nor its habitat value

2.  Development works, such as further amelioration activities, do not affect the habitat value of the Livanjsko Polje

3.  Agricultural activities in the Livanjsko Polje maximize habitat value for species of global significance

4.  Selected sections of the Livanjsko Polje enjoy high protection status in accordance with their biodiversity values

5.  Lessons and best practices from Livanjsko Polje are identified, codified and disseminated to policy and decision makers in the form of analyses, reports, and/or proposals for policy reform

4. Planned Outputs to Achieve Outcomes

The planned outputs to achieve outcome are the following:

1.  A landscape plan for the Livanjsko Polje and adjacent areas under implementation. The landscape plan would regulate land use and promote the establishment of a mosaic of productive activities that maximize the habitat value of the site. The plan would include a decrease of peat extraction activities until they are considered as not threatening the conservation of the target area.

2.  Development projects, such as the proposed amelioration activities, undergo environmental impact assessments to identify potential impacts on habitat and species diversity. The project would support a revision of the pipeline of development projects and assess their impact on the conservation of the Polje. In close collaboration with local authorities, and with inputs from the public, there would be a shortlist of projects that comply with the landscape planning in (1) above and are compatible with the long-term conservation of the site.

3.  Agreement with the Croatian electric company (Hrvatska elektroprivreda) on water use in the Livanjsko Polje. At present, the use of water for energy generation purposes does not appear to have affected the still relatively intact central and northern parts of the Polje, though the long-term consequences of the current water management regime need to be further explored. The project would provide a forum for discussion and agreement among local authorities and the energy company to ensure that the future water extraction regime meets energy needs while continuing to maintain the current duration, frequency and height of floods in the central and northern parts of the Polje. The project would also define mitigation measures and biodiversity management for the Eastern part and Busko Plato as a permanent important wetland in the region.

4.  An established trademark for the Livno Cheese, increased production of this product, and increased access to non-traditional markets. The area already has a traditional product based on the sustainable use of the Polje. This is the “Livanjski Sir”, a famous cheese from the Livanjsko Polje. At present, this cheese is sold mainly in the internal market and/or exported to Croatia. Cheese production is the preferred activity of farmers because it provides an attractive return[4]. When farmers are asked whether they would like to increase production of the cheese, the unanimous answer is yes, though there are a number of barriers to doing so. One is that there is Livno cheese in the market that does not meet the traditional standards of quality associated with this product. The second is that access to the traditional export market, Croatia, has been severely restricted following the disintegration of Yugoslavia in the 90s. Most of the cheese that crosses the border is simply smuggled through. The third is lack of credit.

The project would provide technical support to establish a trademark for the Livno Cheese that would safeguard the quality standards traditionally associated with this product. The project would also provide technical support to access non-traditional markets; specifically, it would provide support in achieving production volumes and quality standards as well as the establishment of links with distributors in the Balkans and Europe. Finally, the project would enter into a partnership with an established institution to facilitate microcredit to local farmers. All these project activities would have a positive effect on the habitat value of the site. Increased cheese production would demand an increased use of pastures, which, if managed appropriately, would be particularly beneficial to the NW part of the polje. This would also reduce the risk of water pollution from agricultural chemicals. These activities offer an important and worldwide-accepted tool for developing a conservation scheme for the region based on its typical natural and geological assets.

5.  A strengthened Farmer Association. The establishment of the trademark for the Livno Cheese, its increased production and access to non-traditional markets will require the presence of a functional farmer association. This is because of the need to agree on quality standards, monitoring of standards and the need to pool production to meet the volumes required to access non-traditional markets. The project would provide technical support and minimum required office equipment to the existing farmer association.