PIMS 3254 Revised Concept for Pipeline 18

PIMS 3254 Revised Concept for Pipeline 18

PROJECT CONCEPT

Request for Pipeline Entry Approval

Agency’s Project ID: PIMS 3254

GEFSEC Project ID:

Country: Cuba

Project Title: Mainstreaming and Sustaining Biodiversity Conservation in three Productive Sectors of the Sabana Camaguey Ecosystem

GEF Agency: UNDP

Other Executing Agency: The Lead Ministry will be the Ministry of Science, Technology and EnvironmentCITMA, supported by other line ministries

Duration: FSP 5 years

GEF Focal Area: Biodiversity

GEF Operational Program: OP2; Coastal, Marine and Freshwater Ecosystems

GEF Strategic Priority: BD-2 Mainstreaming Biodiversity in Production Landscapes and Sectors

Estimated Starting Date:

Estimated WP Entry Date: May 2005

Pipeline Entry Date:October 2004

Financing Plan (US$)
GEF Project/Component
Project (estimated) / 4,000,000
Co-Financing (estimated) / 17,000,000
PDF A*
PDF B** / Tbd
PDF C

Sub-Total GEF

Project Co-financing(estimated)

Government / 16, 000,000
Bilateral / 400, 000
NGOs / 600, 000
Others
Sub-Total Co-financing: / 17,000, 000
Total Project Financing: / 21, 000,000
PDF Co-financing (tbd upon pipeline entry
Total Project Financing:

* Indicate approval date of PDFA

**If supplemental, indicate amount and date of originally approved PDF

Record of endorsement on behalf of the Government:

(Enter Name, Position, Ministry) / Date: (Month, day, year)
This proposal has been prepared in accordance with GEF policies and procedures and meets the standards of the GEF Project Review Criteria for Concept approval.

Yannick Glemarec
IA/ExA Coordinator / Helen Coles de Negret
Project Contact Person
Date: 11 November 2004 / Tel. and email: (52-55) 52639816

PART I - PROJECT Concept

A – Summary

The Sabana-Camagüey Ecosystem (SCE) occupies a strip of approximately 465 km along the central north zone of Cuba. It includes a group of watersheds along the northern mainland (19,400 km2) as well as the archipelago. This archipelago is composed of the adjacent shallow marine shelf (8,311 km2), the oceanic Exclusive Economic Zone (43,800 km2) and 2,515 keys covering 3,400 km2 and representing 60% of all the Cuban keys and the largest system of keys in the Wider Caribbean. Mangrove swamps and seagrass beds are well distributed between the keys and along the adjacent marine shelf and mainland coast. The keys, beaches and coral reefs of the region are well known for their natural quality and beauty, and the larger keys are populated with diverse plant formations. This variety of habitat supports a great diversity of marine and terrestrial biota and a high level of terrestrial endemism, which places this zone among the richest in biodiversity in Cuba and the Caribbean.

The national and global significance of the outstanding wealth of the Sabana Camaguey ecosystem and seascapes has long been recognized and was endorsed through the early commitment of GEF to support a three-phase Program for its conservation. This constituted three sequential interventions evolving from the definition of priorities, to the building of capacities and consolidation of processes, to finally enhancing prospects for long-term sustainability. Phase 1 identified problems and opportunities, completed bio-geophysical, economic and social characterization of the SCE and developed a Strategic Plan. Phase 2 secured the conservation of particularly sensitive or high biodiversity value areas in a network of protected areas that covers 20% of the SCE. It also made impressive progress in promoting an ecosystem-based approach within a traditionally centralized and sector-driven development-planning framework, strengthening cross-sector linkages, encouraging participation at various levels, and building environmental awareness levels and management capacities.

Implementation of Phase 1 and 2 of this Program were rated as highly satisfactory in independent evaluations. For the first time, the five provinces that share the SCE have a common goal, partnerships have been built and new doors opened for environmental authorities to convoke other sectors and ensure environmental compliance. Now these key elements are in place, there is a need, and an opportunity, to work outside protected areas and focus on biodiversity across the productive land and seascape promoting changes in the key productive sectors in the SCE.

The GoC is seeking pipeline entry for the current Concept to complete the sequentially phased intervention, in recognition of the critical role that GEF support and technical assistance from UNDP can provide in enabling them to advance these sectoral reforms. The proposed FSP would be the third and final phase of the Program and would promote operational changes within the tourism, fisheries and agriculture sectors to ensure biodiversity conservation across the sea and landscape that make up 80% of the archipelago. This will be achieved through four main Outcomes as follows: (i) A strengthened enabling environment will exist for the financial, institutional and ecological sustainability of biodiversity conservation in the tourism, fisheries and agriculture and livestock sectors in SEC; (ii) The coastal tourism sector develops in accordance with the ecological needs of the archipelago; (iii) Sustainable fisheries are practiced in the archipelago so that the fish populations and marine ecology is maintained and reef habitats are not damaged by fishery practices; ( iv) The declining sugar cane industry transitions into sustainable land use practices, which do not have negative impacts on the coastal region.

B – Country ownership

1. Country Eligibility

Cuba is eligible for UNDP assistance and signed the United Nation Convention for the Conservation of Biological Diversity (UNCBD) in 1992, UNCCD in 1994, and UNFCCC in 1992. The GEF Focal Point has played an active role in the preparation of the Concept Paper through the Environmental Agency (of the Ministry of Science, Technology and Environment - CITMA), and closely accompanied the development and negotiation of this Concept and fully supports its submission to the GEF.

2. Country Drivenness

Cuba has an extensive legal framework supporting environmental regulations and guidelines that have a bearing on the proposed project and that would provide the background for its successful implementation. In 1975, the new Constitution of the Republic of Cuba recognized the need to protect the environment, and in 1977 the National Commission for the Protection of Environment and Natural Resources (COMARNA) was created. It was the first Cuban institution specifically engaged with environmental issues, and produced the most important regulatory documents of that time. In 1994, as a result of increasing awareness on the importance of the environment for the economy, the Ministry of Science, Technology and Environment (CITMA) was created. This includes the Environment Agency (AMA) with a variety of relevant institutions[1], the CITMA’s Provincial Delegations (with their respective Environmental Units), the National Center for Protected Areas (CNAP), the Environmental Management and Auditing Center (CICA), and the Environmental Information, Management and Education Center (CIGEA). These institutions, their personnel, and the regulations developed through them, have been a key strength in building Cuban capacity for environmental management.

In this context, the main elements of the environmental legal framework developed since 1994 include amongst others: the Environmental Law 81, 1997, Decree-Law for the Coastal Zone, 2002; Decree- Law on Protected Areas, 2002; National Biodiversity Strategy and Action Plan;Declaration of the first group of 33 Protected Areas of the National Protected Area System including 11 in the SCE project area; Resolutions on Special Zones of Use and Protection (marine no take-areas), twenty four of which have already been designated; Resolutions (143, 111) Management of Special Regions of Sustainable Development, and Access to Biodiversity Resources; Decree-Law on Fishing and the Fishery Inspection Corps; Resolution 77 on Environmental Impact Assessment, 1995; Establishment of a National System of Environmental Recognition and the Decree272 on Regional and Urban Planning and Urbanism

Cuba also has a National Environmental Strategy and a National Environmental Program that constitutes the Cuban adaptation of the UNCED Agenda 21. These provide guidance to sectoral activities. In addition specific Sectoral and Regional Environmental Strategies also exist as a way to involve stakeholders from different economic sectors and regions of the country in the solution of their environmental problems. The socioeconomic development of ecologically sensitive areas, such as the Sabana-Camagüey Ecosystem (SCE), has evolved gradually in the last years within this framework. By working closely with the main productive sectors of the SC ecosystem, promoting the adoption of sustainable uses across the productive land and seascape, the proposed project is clearly inline with county priorities and directives for environmental conservation.

Cuba employs a comprehensive nested system of land-use planning at national, provincial and municipal levels. Planning is carried out by the Institute of Physical Planning within the Ministry of Economy and Planning. As apart of a program to strengthen the enabling environment to support the changes in sectoral practices, the project will support the lead institution for inter-sectoral coordination in the SCE in its work with line Ministries. This Institution is the Integrated Coastal Zone Management Authority created in Phase 2 of the Program. It is designed as a nested system that is functional at national, regional and local levels and as such is in line with the established approaches to land use planning in the area.

The Sabana Camguey ecosystem plays an important role in the national development frameworkwith three of the country’s productive sectors being highly represented in the project area. These are tourism, fisheries and agriculture. Cuba government has indicated its willingness to explore reforms in these sectors to enhance their contribution to biodiversity conservation. By working with the tourism and fisheries sectors in SC to maximize links between biodiversity conservation, the proposed project can help shape the long-term sustainability of a key element of national development while capturing significant benefits to globally significant biodiversity.

C – Program and Policy Conformity

1. Program Designation and Conformity

The project is eligible under the GEF BD 2 “Mainstreaming Biodiversity in Production Landscapes and Sectors”. It will mainstream biodiversity conservation into the tourism, fisheries and agriculture sectors, promoting changes in the practices of these sectors and provide an enabling environment for supporting these changes. It will include specific components geared to induce the changes in each of the relevant productive sectors. Strengthening the enabling environment to support these changes will also provide the financial, institutional and ecological sustainability of the impacts achieved over the entire Program. These will include strengthening of inter-institutional coordination through systemic and institutional capacity building, the development of sustainable financing mechanisms for biodiversity conservation and the linking of protected areas to the management of sectoral activities across the landscape.

The proposed project also complies with other GEF eligibility criteria. The main objective is aligned with national policies as shown in Part I-Section B. GEF resources would be sought to cover the incremental costs of overcoming barriers that currently impede productive sectors in the SCE mainstreaming biodiversity conservation practices in their practices. Project design to date has included representatives from the diverse stakeholder groups that have been involved with Phase 2 of the 3 phase Program and further development of the proposal would include participation workshops and extensive consultation. Global biodiversity benefits would clearly be captured in coastal and marine ecosystems and as such the proposed project would be slated as Operational Programme 2; Coastal, Marine and Freshwater Ecosystems.

2. Project Design

Project Rationale

The global significance of the Sabana Camaguey ecosystem marine and coastal biodiversity has long been recognized and is described in section A- Summary and in Annex 1. This was illustrated through the early commitment of GEF to support a three-phase intervention for the conservation of this outstanding archipelago, designed to evolve over a long-term horizon from building capacities and consolidating processes to the development of specific arrangements for enhancing prospects for sustainability.

This three-phase GEF Program (hereafter referred to as Program) was approved in 1992. The 1st phase (1993-1997) focused on the identification of problems and opportunities, completing bio-geophysical, economic and social characterization of the SCE and developing a Strategic Plan that included a proposal for a SCE protected areas network and guidelines for the sustainable development of tourism in 4 priority keys. The second phase project (1999-2004) focused on the implementation of key priorities from the Strategic Plan, including priority protected areas, developing a framework for Integrated Coastal Zone Management, setting up biodiversity monitoring and expanding sustainable tourism guidelines to the strategic planning level in 13 keys, and to a detailed planning level in 4 keys.

This second phase is in its final stages and has recently completed its terminal evaluation (see Annex 4). Rated in this evaluation as being highly satisfactory, Phase 2 secured the conservation of particularly sensitive or high biodiversity value areas and made impressive progress in promoting an ecosystem-based approach within a traditionally centralized and sector-driven development-planning framework. By strengthening cross-sector linkages for planning and monitoring, and encouraging participation at various levels, and building environmental awareness levels and management capacities, for the first time, the five provinces that share the SCE came under a common goal. The second phase was also strategic in opening new doors for CITMA and strengthening its ability to convoke other sectors and ensure environmental compliance.

Now these key elements are in place, there is a need, and an opportunity, to work outside protected areas and focus on biodiversity across the productive land and seascape, promoting changes in the key productive sectors in the SCE. If long-term conservation is to be achieved, this boarder approach to conservation is essential given the tight interrelations common in archipelagos and coastal and marine habitats. The GoC has expressed willingness and interest in advancing these reforms, and in view of the centralized planning system, they have the ability to implement them. These sectoral reforms would not only provide unquestionable global biodiversity benefits but, in the particular case of tourism, could provide a conservation friendly sun and sand tourism model that could be replicated throughout Cuba and the broader Caribbean, capturing further benefits in this significant region.

The GoC is looking to GEF and UNDP as partners to assist them in this new path. It seeks pipeline entry for the current Concept to complete the sequentially phased intervention and ensure that impacts of the entire Program are sustained beyond GEF involvement. As such this third phase will focus on implementing sustainable practices in key productive sectors, addressing threats at their sources to sustain biodiversity conservation across the broader sea and landscape representing 80% of the archipelago. In addition to components geared to achieving reforms in each of three selected productive sectors, this phase will also strength the enabling environment for supporting these changes in the long-term and beyond the life of the GEF intervention. This in turn will further address sustainability issues and enhance the long-term benefits of the previous two phases of the entire Program.

The proposed Project would constitute the third and final phase of the GEF-supported Program. It offers the opportunity to implement activities beyond the Ministry of Environment and work with the Ministries of Tourism, Fisheries, Agriculture and the Provincial governments, to overcome barriers that currently impede the incorporation of biodiversity conservation in their practices. In the light of the continued economic constraints in Cuba, without the support of GEF it is unlikely that these barriers will be fully overcome and an opportunity for encouraging biodiversity friendly development in an area of outstanding global significance will have been lost. Furthermore, without this final intervention, the sustainability of achievement to date will be undermined. Indeed, “the central recommendation of the terminal evaluation of phase 2 is that a third-phase project be developed and undertaken in keeping with the original vision” so that sustainability of impacts beyond GEF intervention can be ensured, including financial, technical and institutional sustainability issues.

Immediate Threats to Biodiversity in the SCE and Baseline Scenario

The disintegration of the EuropeanSocialist Block and the USSR in the early 90s severely impacted the Cuban economy. To facilitate economic recovery, an increase in foreign enterprises was permitted and the monetary legal framework was softened. Most investments were focused on the development of aspects of the economy with minimum impact on national social objectives. Although economic conditions have improved significantly, economic growth is still a major national priority. Sectors like tourism and mining were prioritized, with a subsequent opening to foreign investment. In spite of the great priority that the Government assigns to the protection of biodiversity and sustainable development, these strong economic pressures can still force short-term revenue decisions that could compromise biodiversity protection. This is accentuated when the productive sectors involved are not aware of the importance of biodiversity for the maintenance of their activities, or of existing sustainable development alternatives

The main economic activities in the SCE are tourism, fisheries and agriculture. The principal pressures on biodiversity come from these sectors through inducing habitat and landscape changes; over-harvesting specific species; provoking changes in the species and ecosystem structure, causing pollution mainly from organic matter. The principal sources of threats in the marine realm are fisheries (over-fishing, harmful fishing gears and practices, illegal fishing and hunting of endangered marine species), tourism (diving, nautical activities, potential marine based pollution, furtive fishing and collection of marine organisms) and coastal and watershed development (agriculture, human settlements, industries, cattle raising). The main threats in terrestrial areas (keys and coastal land area) are tourism (e.g., landscape modification, vegetation clearing, habitat fragmentation, introduced alien species, land filling, etc.), agriculture and cattle raising activities, inappropriate urban development in coastal villages and tourist resorts.