Global Environment Facility

Request for a PDF Block B Grant

Country and eligibility:Brazil; ratified the Biodiversity Convention on February 28, 1994

Project:Integrated Management of Freshwater Biodiversity and Water Resources in the Amazon (AquaBio)

GEF Focal Areas:Biological Diversity and International Waters

Operational Program:#OP2 (Freshwater Ecosystems) and #OP9 (Integrated Land and Water Multiple Focal Areas

Project Cost: Estimated from US$10 to US$15 million

Financing:To be determined during project preparation; contribution from GEF estimated to be between US$5 and US$8 million

Requesting Agency:World Bank

Executing Agency:Ministry of Environment

PDF Block B Request:$ 213,000

Co-financing:IBRD$ 10,000 (WB staff time and travel not included)

Donors$ 78,800

GEF $ 213,000

Government$ 85,000

NGOs$ 40,000

Block A Grant Awarded?No

GEF Alternative Objectives

Global Importance of Aquatic Biodiversity in the Amazon Basin

The report of a workshop on the Conservation of Freshwater Biodiversity in Latin America and the Caribbean[1] held in Santa Cruz, Bolivia, September 27-30, 1995, divides the region called "The Amazon Complex" into 8 distinctive ecoregions: (1) Amazon Delta, (2)Amazon Main Channel, (3) Northern Amazon Shield Tributaries, (4) Rio Negro, (5) Upper Amazon Piedmont, (6) Western Amazon Lowlands, (7) Central Brazilian Shield Tributaries, and (8) Tocantins-Araguaia basin. Ecoregions number (2), (4) and (5) were recognized as having globally outstanding freshwater biodiversity, and were recommended as "highest priority for conservation in the Latin American region" due their "vulnerable" conservation status.

Also, a joint effort by the World Resources Institute and Worldwatch Institute[2] has identified the Amazon as having the highest number of fish species among all large watersheds in the world (3,000), while the Negro and Madeira basins classify as first and third in number of fish species in the medium-sized basin category (600 and 398 described fish species, respectively). At the same time, the Amazon basin (about 6.1 million km2) has the largest number of endemic fish species among all watersheds in the world (1,800), well ahead of the second one, the Congo basin (about 3.7 million km2), with 500 species.

Global objectives/OP Fit.

The over-arching goal of the project is to promote conservation of freshwater biodiversity through the integrated management of water resources in the Amazon Basin. Due to the extension and the transboundary nature of Amazon water and aquatic resources, the project will focus on the Brazilian portion of the Amazon, and pilot, on-the ground activities, will take place in two to three sub-basins. Project results would provide the basis for future extension of this initiative to other sub-basins in Brazil, and possibly to other countries which are part of the Amazon basin. Within this vision, project global objectives would be: (a) to support theconservation of freshwater biodiversity of global importance in the Amazon River Basin, through formulation of a strategy for the sustainable integrated management of water resources and freshwater biodiversity in two to three sub-basins of the Brazilian portion of the Amazon River Basin, and (b) to generate and disseminate lessons that could be adapted towards the conservation of freshwater biodiversity in other parts of the basin, including that outside Brazil.

The proposed project is consistent with the GEF Operational Strategy, in that it supports long-term protection and sustainable use of biological diversity. The project is in accordance with the Operational Programs/OP No. 2 (Coastal, Marine and Freshwater Ecosystems) and No. 9 (Integrated Land and Water Multiple Focal Area).

Biodiversity Focal Area: Amazonian rivers and associated floodplain ecosystems, targeted by the project, contain a rich diversity of globally important freshwater flora and fauna. About 58% of the Amazon basin lies in Brazil, one of the most biodiversity-rich countries in the world, much of which is found in the Amazon basin. Preliminary data on species richness and endemism of fishes indicates that the Amazon basin supports approximately 30% of the world’s freshwater river fishes, most of which are endemic. Smaller, but still highly significant percentages of the world’s amphibians, reptiles, aquatic birds and invertebrates occur in the Amazon. The project is fully consistent with Article 8 (in-situ conservation) of the Convention on Biological Diversity (CBD) as it will focus on in-situ conservation of important Amazon natural gene pools and their ecological support systems. The project also promotes the implementation of Article 6 of the CBD, as it aims to integrate the conservation and sustainable use of biodiversity into relevant sectoral and cross-sectoral projects, plans, programs and policies.

International Waters Focal Area: The project also responds to the "Integrated Land and Water Multiple Focal Area Operational Program (#OP9) for International Waters" as it focuses on integrated approaches for the adoption of better land and water resources management practices on a basin-wide basis. The project is consistent with the aforementioned #OP9 as it proposes proactive land and water-focused interventions aimed at the protection of a transboundary river system with important biodiversity, and measures for the prevention of damage to its threatened waters.

National objectives

The Ministry of Environment (MMA), through its Secretary of Biodiversity and Forests, Secretary of Water Resources, and Secretary of the Amazon, and the National Water Agency (ANA) aim to insure the sustainable use and conservation of water resources, fisheries, and freshwater biodiversity in the Amazon Basin. These resources are the basis for a substantial part of economic activities in the region, such as commercial and subsistence fisheries, sport fishing, floodplain agriculture, tourism, energy generation, transport, and water supply. The proposed project would support this goal by:

(a) providing the necessary information for the elaboration of management models and policies for the integrated management of freshwater fisheries and water resources, especially in blackwater and clear water aquatic ecosystems in the Amazon. The information and management/policies proposals for white water ecosystems will be provided by the Várzea Project, currently under implementation.

(b) implementing the new National Water Law in two to three sub-basins. The law calls for decentralized management of water resources through river basin committees, and the Brazilian Government will use the project to test and find the best way to implement this mandate for the particular hydrological regimes of the Amazon region, combined with the different levels of human activity found throughout the region.

Government Commitment/National Level Support

The project is closely linked with GOB’s environmental agendas regarding the sustainable use and conservation of natural resources, including biodiversity and water. The major concrete actions underway that demonstrate the country’s commitment to conservation of freshwater biodiversity are: (i) Implementation of the Pilot Program to Conserve the Brazilian Rainforests (PPG7), including the Várzea Project; (ii) establishment of the National Program for Biological Diversity (PRONABIO), which develops policies; promotes research, information networks, and international cooperation; assists in the standardization of instruments and methodologies; and supports training and institutional strengthening; (iii) establishment of the GEF-supported National Biodiversity Project (PROBIO); (iv) issuing and implementation of the National Water Resources Law of 1997, which specifically mentions the obligation to integrate water resources and environmental management; (v) current formulation of a National Strategy for Biological Diversity, expected to be completed by December 2001; (vi) The National Program to Develop Sport Fisheries (PNDPA), under implementation, which aims to transform sport fisheries in Brazil into an activity that generates economic benefits while conserving the environment.

The Project Concept and the Block B Proposal was evaluated and approved by the National Focal Point (SEAIN) under the Ministry of Planning and Budget, and its endorsement letter was sent to the World Bank on February 13, 2001.

Description of GEF Alternative

Strategic Approach/timeframe

The Ministry of Environment believes this is the right time to move ahead with the proposed project because a number of pre-requisites for project success are now in place, namely: (a) the Várzea Project has been approved and is already under implementation; (b) the National Water Agency has been officially created, and the majority of staff is already in place and ready to start working on implementation of the new National Water Law all over the country; (c) the recent fiscal crisis is under control, and the various partners for project preparation and implementation are better able to make decisions regarding utilization of their own budgets for project purposes; and (d) there are already a number of completed studies on the status of freshwater ecosystems and fisheries in the Brazilian Amazon, and this information should now be used as input into decision making regarding management of these resources.

Because of the variety of aquatic ecosystems in the Brazilian Amazon, and of the different intensity and types of human activity in the region, the MMA has adopted a strategy where project implementation will take place on a pilot basis in two to three sub-basins that cover a representative sample of these these distinct situations. The lessons and experiences generated by the proposed project will be used for future implementation of integrated management of freshwater biodiversity, fisheries and water resources in the remainder of the Brazilian Amazon Basin.

Preliminary Project Cost and Financing Plan

Total estimated project cost will be between US$10 and US$15 million. The final cost will be a result of the final choices for project sites, design, and pilot activities to be determined through various workshops involving all stakeholders during the next phase of project preparation. A detailed financing plan will also be prepared, but GEF's contribution to the project is estimated to be between US$5 and US$8 million.

Proposed Components

At this very preliminary stage of project concept formulation and consultation there is insufficient information to define project components and activities in any detail. Nevertheless, it is possible to present a tentative list of likely components that would address the proposed project objectives. A detailed description of likely project activities (as per stakeholders perceived needs and project objectives) would be defined during the process of project formulation, following a participatory approach. The following five tentative components would be developed within each of the sub-basins chosen for project implementation (more details in Section 4.2.1 of the Project Concept Note):

1) Institutional Development: the outcome would be a functioning institutional and legal framework and improved capacity to manage water resources and aquatic biodiversity and to avoid/mitigate conflict between different sectors.

2) Development of plans for integrated sub-basin management of water resources and freshwater biodiversity: the outcome would be short and medium-term action plans for integrated management of water resources and freshwater biodiversity in the selected sub-basins.

3) Pilot initiatives as an input to the elaboration of sub-basin management plans: the outcome would be lessons-learned and a better understanding of land-water interactions in chosen sub-basins, as inputs into the development and formulation of sub-basin management plans.

4) Learning and dissemination: the outcome would be a series of learning and dissemination instruments and activities, such as a workshop for high level decision makers from the Amazon riparian countries to learn from and discuss past and current experiences in management of large river basins in other regions of the world; the elaboration and delivery of training modules that improve the understanding, within the various stakeholder groups, of land-aquatic interactions in the basin and the effect that current land-use practices have on the short and long-term sustainability of freshwater biodiversity, including fisheries, and water supply; and workshops, study-tours, and publications to disseminate lessons and results from the various Project Components.

5) Monitoring and evaluation: in addition to implementing a project monitoring and evaluation system, this component would develop a system for monitoring freshwater biodiversity in the project sub-basins, including the expansion of the fisheries statistics system, supported under the Várzea Project, to the chosen sub-basins. These would constitute a regionally compatible information system to be used for monitoring changes in freshwater biodiversity patterns after project completion. This component would also improve the existing hydrologic monitoring system in chosen sub-basins, within the existing larger ANEEL system for the whole Brazilian Amazon Basin.

Stakeholder Involvement

The proposed project concept has been developed based on internal review and discussions at the national and state levels. Consultations were carried out with the Secretary of Water Resources, Secretary of Biodiversity and Forests, and Secretary for Amazon Coordination (all part of the Ministry of Environment – MMA), as well as with other agencies in Brasilia, such as the National Agency for Electrical Power (ANEEL), the National Agency for Agricultural Research (EMBRAPA), and Instituto Socioambiental (ISA,an NGO). At the state level, the Project Team has carried out (a) preliminary discussions with environmental agencies in the states of Amazonas and Pará, with researchers at several research institutions (Instituto Nacional de Pesquisas da Amazonia - INPA, Museu Paranaense Emilio Goeldi - MPEG, Universidade do Pará, and Universidade do Amazonas), (b) a preliminary literature review, and (c) discussions that took place within the context of several meetings and workshops that took place over the last few years focused on aquatic ecosystems and resources in the Amazon basin, such as: various meetings as part of preparation and appraisal of the Várzea Project, the PROBIO workshop, a WWF sponsored workshop in Manausfocused on the Amazon Várzea Ecoregion in Brazil,and two WB-supported workshops focused on the Amazon estuarine region and its relation to activities in the upper basin.

A more complete list of institutions involved in the consultation process so far can be found in Annex I.

Institutional Framework

The Ministry of Environment (MMA), through its Secretary for Biodiversity and Forests, is the focal agency for project preparation activities. However, at the national level, project preparation is being coordinated by a committee which includes representatives from the Secretary of Biodiversity and Forests, the Secretary of Water Resources, the Secretary of the Amazon (all three part of MMA), and more recently the National Water Agency (ANA) and the National Institute for Environment (IBAMA). At the state level, project preparation committees will be created (one for each participating state), and are expected to include the participation of the respective State environmental management institution, the state office of IBAMA, environmental and/or indigenous people NGOs, private sector, and relevant institutions carrying out applied research in selected project areas.

Upon approval of the PDF Block B request by the GEF Focal Point in Brazil (SEAIN) and by the GEF Secretariat, project preparation will move into a new stage where consultation and preparation activities will involve a larger number of stakeholders and be decentralized as much as possible to the Amazonian states and municipalities where project implementation areas are located. Workshops are planned for each chosen sub-basin soon after the start of preparation activities to present the Project Concept Note to potential project beneficiaries and refine the project preparation plan based on the feedback obtained at these workshops. Another series of workshops will take place after the results from the rapid participatory socioeconomic and environmental assessments are available, as well as the study on potential pilot activities, to discuss those results with local communities and seek their input into finalizing the various project components.

The detailed institutional framework for project implementation will be defined during project preparation, as soon as the sub-basins for project implementation are defined and the pilot areas within them are chosen in consultation with the relevant stakeholders.

Linkage to GEF IA Programs (WB/IFC, UNDP, UNEP)

Currently the GEF is funding two projects in Brazil that include activities in the Brazilian Amazon (PROBIO and FUNBIO), and has also provided a US$ 300,000 grant to support the preparation of the Amazon Protected Areas project which will expand and consolidate the protected areas system in the Brazilian Amazon.

  • Project for the Conservation and Sustainable Use of Biodiversity (PROBIO): This $20 million project ($10 million from GEF), is financing activities restricted to the themes "research and development of demonstrative projects", and "assessments for the conservation and sustainable use of biodiversity in Brazilian biomes." Under the second theme, a workshop took place September 20-25, 1999, to evaluate and identify priority actions for the conservation, sustainable use, and equitable benefit sharing of biodiversity in the Brazilian Amazon. These issues were addressed for the various habitats within the region, and the aquatic ecosystem was discussed in a specific session. The proposed GEF project would use information produced at this workshop to help define priority sub-basins for project implementation among the various tributaries to the Amazon river.
  • Brazilian Biodiversity Trust Fund (FUNBIO): This trust fund, with a time span of 15 years, was established with a $20 million grant from GEF to support projects demonstrating the possibility of joint involvement of different agencies and social segments - both inside and outside Government - in initiatives dedicated to conservation and sustainable use of biological resources. Of the ten projects initially supported by this fund, only two are taking place in the Amazon region: (a) one in an area close to the Amazon estuary, to support the establishment of new markets for the products of an extractive reserve, and (b) another along the middle Amazon river channel, to engage about 66 communities in participatory management of fishery resources. The proposed AquaBio project does not include the area of the main Amazon river channel, so no overlapping of on the ground activities is expected. However, activities in the proposed project would be coordinated with FUNBIO, especially regarding potential pilot initiatives and monitoring of aquatic resources in project areas.
  • Support to the System of Protected Areas in the Brazilian Amazon: This project aims to support the Brazilian Government in its commitment to expand and consolidate the system of protected areas in the Amazon region to an estimated 37 million hectares (10% of that biome), including the 12 million already within existing protected areas, and to develop a system to monitor the conservation of biodiversity within and around protected areas. The proposed project would help identify priority areas for the conservation of freshwater biodiversity, within the chosen sub-basins, as input to the activities of the 10% project.

The proposed AquaBio project will coordinate with and respond to the priorities delineated by a workshop which took place September 20 to 25, 1999, and which was partially funded by the GEF-supported PROBIO. This workshop’s objectives were to evaluate and identify priority actions for the conservation, sustainable use, and equitable benefit sharing of biodiversity in the Brazilian Amazon. These issues were addressed for the various habitats within the region, and the aquatic ecosystem was discussed in a specific session.