Document of
The World Bank
FOR OFFICIAL USE ONLY
Report No: 66831-MV
Project Paper
for
PROPOSED grANT
US$ 3.83 Million
TO THE
Republic of Maldives
in support of the
Wetland Conservation and Coral Reef Monitoring
for Adaptation to Climate Change (P128278, TF011853)
MALDIVES: Climate Change Trust Fund (P120337, TF071418)
April 19, 2012
Sustainable Development Department
Environment, Water Resources and Climate Change Sector
Maldives Country Management Unit
South Asia Region
This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.CURRENCY EQUIVALENTS
(Exchange Rate Effective {Date})
Currency Unit / = / US$US$1 / = / Maldivian Rufiyaa (MVR) 15.2
FISCAL YEAR
July 1 / – / June 30ABBREVIATIONS AND ACRONYMS
ii
AusAID Australian Agency for International Development
CAS country assistance strategy
CBD Convention on Biological Diversity
CBWMPs Community-Based Wetland Management Plans
CCAC Climate Change Advisory Council
CCTF Climate Change Trust Fund
COREMAP Indonesia Coral Reef Rehabilitation and Management Project
CP Community Participation
CQS Consultants’ Qualifications
DC Direct Contracting
EU European Union
EIA Environmental Impact Assessment
EPA Environment Protection Agency
ESAs environmentally sensitive areas
ESDD Environmental and Social Due Diligence
FBS Fixed Budget Selection
FM financial management
FMA Fisheries Management Agency
GDP gross domestic product
GOM Government of the Maldives
IBRD International Bank for Reconstruction and Development
ICB International Competitive Bidding
IDA International Development Association
IEC information education communication
IUFRs interim unaudited financial reports
LCS Least Cost Selection
LGA Local Government Authority
LSA Land and Survey Authority
MCS Monitoring Control and Surveillance
MEMP Maldives Environment Management Project
MMA Maldivian Monetary Authority
MOE Ministry of Education
MOFA Ministry of Fisheries and Agriculture
MOTAC Ministry of Tourism, Arts and Culture
MOU memorandum of understanding
MVR Maldivian Rufiyaa
NBSAP National Biodiversity Strategy and Action Plan
NAPA National Adaptation Programme of Action
NCB National Competitive Bidding
NEAP National Environmental Action Plan
NGIS National Geographic Information System
NOAA National Oceanographic and Atmospheric Administration
NPC National Planning Council
OP Operational Policy
PDO Project Development Objective
PMU Project Management Unit
QBS Quality-Based Selection
QCBS Quality- and Cost-Based Selection
RAPs Resettlement Action Plans
SAP Strategic Action Plan
SLDG Strengthening Local Democracy and Governance
SRFP standard request for proposal
SSS Single-Source Selection
SST sea surface temperature
TOR Terms of Reference
UNDP United Nations Development Programme
WCCM Wetland Conservation and Coral Reef Monitoring (for Adaptation to
Climate Change Project)
ii
Regional Vice President: / Isabel M. GuerreroCountry Director: / Diarietou Gaye
Sector Director: / John Henry Stein
Sector Manager: / Herbert Acquay
Task Team Leader: / Priti Kumar
ii
Table of Contents
I. / Strategic Context and Rationale…….……………………………...... / 1A. / Country and Sector Background…….………………………………...... / 1
B. / Rationale for Bank Involvement…….………………………………...... / 7
C. / Higher Level Objectives to which the Project Contributes…….…...... / 8
II. / Project Description…….……………………………………………...... / 9
A. / Project Development Objective and Key Indicators…….………...... / 9
B. / Project Components…….……………………………………………...... / 10
1. Component 1: Wetland Conservation…….……………………...... / 10
2. Component 2: Coral Reef Monitoring…….……………………...... / 12
3. Component 3: Project Management…….………………………...... / 13
C. / Project Costs…….……………………………………………………...... / 14
D. / Lessons Learned and Reflected in Project Design…….……………...... / 14
III. / Implementation…….………………………………………………...... / 15
A. / Institutional and Implementation Arrangements…….………………...... / 15
B. / Monitoring and Evaluation of Results…….………………………...... / 15
C. / Sustainability…….……………………………………………………...... / 16
IV. / Key Risks and Mitigation Measures…….…………….……………...... / 17
V. / Project Summary …….………………………………………………...... / 18
A. / Economic Analysis / Justification…….………………………………...... / 18
B. / Fiduciary…….………………………………………………………...... / 19
C. / Environment and Social Due Diligence…….…………………………...... / 24
D. / Policy Exceptions…….………………………………………………...... / 26
Annex 1. / Results Framework…….………………………………………………...... / 27
Annex 2. / Detailed Project Description…….………………………………………...... / 30
Annex 3. / Institutional Arrangements. …….………………………………………...... / 40
Annex 4. / Risk Matrix…….………………………………………………………...... / 41
Annex 5. / Implementation Support Strategy……………………………………………...... / 45
Annex 6. / Team Composition…….………………………………………………...... / 47
Annex 7. / Disbursement Table...... / 48
References and Endnotes…….…………………………………………...... / 49
ii
ii
DATA SHEETRepublic of Maldives
WETLAND CONSERVATION AND CORAL REEF MONITORING FOR
ADAPTATION TO CLAIMATE CHANGE (P128278, TF011853)
Project Paper
.
South Asia Region
Environment, Water Resources and Climate Change
Sustainable Development Department
Maldives Country Management Unit
.
Basic Information
Date: / April 19, 2012 / Sectors: / General water, sanitation, flood protection (100%)
Country Director: / Diarietou Gaye / Themes: / Climate Change – 30%
Biodiversity – 30%
Water Resource Management – 30%
Environmental Policies and Institutions -10%
Sector Manager/Director: / Herbert Acquay/John Henry Stein / EA Category: / B – Partial Assessment
Project ID: / P128278
Instrument: / TAL
Team Leader(s): / Priti Kumar
.
Recipient: Ministry of Finance and Treasury, Ameenee Magu, Male’ 20379, Republic of Maldives, Phone: +960 3349226, Fax: +960 3324432
Executing Agency: Ministry of Housing and Environment, Ameenee Magu, Male’ 20392, Republic of Maldives,
Contact: / Mr. Saleem Ahmed / Title: / Permanent Secretary
Telephone No.: / +960 3004100 / Email: /
.
Project Implementation Period: / Start Date: / April 15, 2012 / End Date: / September 30, 2014
Expected Effectiveness Date: / May 1, 2012
Expected Closing Date: / September 30, 2014
.
Project Financing Data(US$M)
[ ] / Loan / [X] / Grant / [ ] / Other
[ ] / Credit / [ ] / Guarantee
For Loans/Credits/Others
Total Project Cost : / US$ 3.83 m / Total Bank Financing :
Total Cofinancing : / US$ 0.08 m / Financing Gap :
.
Financing Source / Amount(US$M)
BORROWER/RECIPIENT / US $ 0.08
IBRD
IDA: New
IDA: Recommitted
Others / US$ 3.83
Financing Gap
Total / US $ 4.91
.
Expected Disbursements (in USD Million)
Fiscal Year / FY 12 / FY 13 / FY 14 / FY 15
Annual / 0.3 / 1.0 / 1.6 / 0.93
Cumulative / 0.3 / 1.3 / 2.9 / 3.83
.
Project Development Objective(s)
· To strengthen institutional capacity of MOHE and local councils for planning and demonstration of community based wetland and water resources management, and
· To implement a coral reef monitoring system.
.
Components
Component Name / Cost (USD Millions)
Wetland Conservation and Water Resources Management / 2.13
Coral Reef Monitoring / 1.03
Project Management / 0.46
Compliance
Policy
Does the project depart from the CAS in content or in other significant respects? / Yes / [ ] / No / [ X]
.
Does the project require any exceptions from Bank policies? / Yes / [ ] / No / [ X]
Have these been approved by Bank management? / Yes / [ ] / No / [ X]
Is approval for any policy exception sought from the Board? / Yes / [ ] / No / [X]
Does the project meet the Regional criteria for readiness for implementation? / Yes / [ X] / No / [ ]
.
Safeguard Policies Triggered by the Project / Yes / No
Environmental Assessment OP/BP 4.01 / X
Natural Habitats OP/BP 4.04 / X
Forests OP/BP 4.36 / X
Pest Management OP 4.09 / X
Physical Cultural Resources OP/BP 4.11 / X
Indigenous Peoples OP/BP 4.10 / X
Involuntary Resettlement OP/BP 4.12 / X
Safety of Dams OP/BP 4.37 / X
Projects on International Waters OP/BP 7.50 / X
Projects in Disputed Areas OP/BP 7.60 / X
.
Legal Covenants
Name / Recurrent / Due Date / Frequency
Description of Covenant
.
Team Composition
Bank Staff
Name / Title / Specialization / Unit / UPI
Priti Kumar / Senior Environmental Specialist / Environment / SASDI / 210231
Anupam Joshi / Environmental Specialist / Environment / SASDI / 327894
Sumith Pilapitiya / Lead Environmental Specialist / Environment / SASDI / 80629
Darshani De Silva / Environmental Specialist / Environment / SASDI / 333145
Sunethra Chandrika Samarakoon / Procurement Specialist / Procurement / SARPS / 333182
Poonam Pillai / Senior Environmental Specialist / Environment / SASDI / 202048
Supul Chamikara Vijesinghe / Financial Management Specialist / Financial Management / SARFM / 349165
Marinela E.Dado / Senior Operations Officer / Procurement Specialist / SASDI / 15400
Name / Title / Specialization / Unit / UPI
Marie Florence Elvie / Team Assistant / Program Support / SASDO / 192664
Lakshmi Narayanan / Team Assistant / Program Support / SASDO / 286858
Mary Ann Ashra Fernando / Team Assistant / Program Support / SASDO / 384428
Non Bank Staff
Name / Title / Office Phone / City
Kalyani Kandula / Consultant / 09949854440 / Hyderabad
Vani Kurup / Consultant / 9810965992 / New Delhi
Henry Opdam / Consultant / +31 62 232 7570 / Nijmegen, Netherlands
.
Locations
Country / First Administrative Division / Location / Planned / Actual / Comments
I. Stratecic Context and Rationale
A. Country and Sector Background
1. The Republic of Maldives is a collection of small islands to the south-west of Sri Lanka in the Indian Ocean. It comprises about 1,190 islands grouped into 26 atolls forming a chain of over 820 kilometers in length and spread over an area of more than 90,000 square kilometers. These islands are built, protected and sustained, almost entirely, by living coral. Only 33 of the 290 inhabited islands have a land area of more than one square kilometer.[1] The islands are low lying with an average elevation of only 1.5 meters. The total population of Maldives in 2009 was 324,992.[2] In terms of area and population, it is the smallest Asian country. The human development index for Maldives is 0.602 placing it above the South Asia regional average of 0.516.[3] The two most important economic sectors of the Maldives are tourism and fisheries, contributing to nearly 80 percent of the country’s gross domestic product (GDP).
2. Vulnerability to Climate Change: The Maldivian islands are regularly exposed to multiple natural hazards and the disaster risk scenario for the country is described as “moderate” due to a low probability of hazard occurrence and high vulnerability from exposure to geographical, topographical and socio-economic factors.[4] Its unique geography makes this archipelagic small-islands nation particularly vulnerable to projected adverse consequences of climate change,[5]–[6] including sea-level rise, as well as increases in sea surface temperature, ocean acidification[7] and frequency/intensity of droughts and storms. For example, sea levels are projected to rise within the range of 10 to 100 centimeters by year 2100, threatening submergence of the entire country in the worst-case scenario. Extreme rainfall events are likely to occur at twice the current frequency by 2050.[8] Higher ocean temperatures increase the rate of coral bleaching and increase the risk of massive coral die-off during the local ocean temperature spikes that occur during El Niño events (the severe 1998 El Niño raised sea surface temperatures around the Maldives by as much as 5°C).[9]
3. Overview of Wetland and Coral Ecosystems: In the Maldives, there are natural depressions or wetlands (locally known as Kulhi) situated within or partly along the coast. These wetlands are either brackish or freshwater, may be linked to lagoons, and almost always support mangroves. Of the 1,190 Maldivian islands only 41 islands have wetlands,[10] making conservation of these ecosystems a priority. The Maldives has the seventh largest coral reef system in the world. It is estimated to contain 3.14 percent of the total coral reef area of the world.[11] These reefs, while not as diverse as those in the coral triangle in south east Asia, are amongst the richest in the world in terms of species diversity and aesthetic appeal, and host over 1,900 fish species, 187 coral species and 350 crustaceans.
4. Importance of Wetland and Coral Ecosystems to Economy: The wetland and coral ecosystems of the Maldives make a significant contribution to its economy. A 2009 study of the economic value of biodiversity to the Maldives[12] indicated that 71 percent of national employment (78,500 jobs), 49 percent of public revenue (MVR 2.5 billion), 62 percent of foreign exchange (US$435 million), 98 percent of exports (MVR 1.7 billion) and 89 percent of GDP (MVR 135 billion) are biodiversity dependent.
a) Wetlands: Qualitatively, the Maldivian wetlands are considered to be highly productive ecosystems that provide several goods and ecological services. They reduce the outflow of silt, nutrients and sand onto house reefs. The low-lying, richer soils support numerous species of mangrove. Wetlands contribute to groundwater recharge and support livelihoods of local communities by providing wood (used in boat building, house building, fencing, and as firewood for cooking and smoking fish), supporting agriculture (taro, chillies, banana, etc.), contributing to fish yield, supplying plants for traditional medicine and supporting tourism.[13]
b) Coral reefs: Ecosystem goods and services derived from coral reefs include reef food fishery, live-bait fishery that underpins the environment-friendly pole-and-line fishery, coral sand that sustains the beaches of the Maldives, physical defence from erosion and storm surge, tourism attraction as well as cultural and aesthetic value. Coral reefs are a major driver for key economic sectors such as tourism and fisheries. A 2007 conservation investment study[14] for the Maldives showed that an average visitor would undertake 1.42 and 3.76 times more trips during the next five-year period with improvement in fish abundance and coral quality, respectively. The fisheries sector creates 14,500 jobs and produces 99 percent of all visible export earnings. Reef fishery accounts for about 18 percent of the total fish production of the Maldives.[15]
5. Significance of Wetland and Coral Ecosystems in Climate Change Adaptation: Sustaining wetlands and coral reefs is a cost-effective strategy for climate change adaptation with strong benefits for disaster mitigation, poverty reduction and biodiversity conservation.
a) Wetlands: The carbon sequestration potential of wetlands is not significant in the Maldives due to their extremely small size. However, these in-land ecosystems help in climate change adaptation[16] through their role in flood and soil erosion control, groundwater recharge, freshwater storage and livelihood support. They lessen the effect of flooding during high rainfall events and storm surges and also provide water security during low rainfall periods.