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United Nations Development Programme financed by the GEF/LDCF/SCCF Trust Funds Project title: Enabling transboundary cooperation and integrated water resources management in the Dniester River Basin Country: Republic of Implementing Partner: Organization Management Arrangements : Moldova and Ukraine for Security and Co-operation in IGO execution Europe (OSCE) UNDAF/Country Programme Outcome: Moldova: Outcome 3.1 - Improved environmental management in significantly increased compliance with international and regional standards Ukraine: Outcome 3 – Regulatory and legislative mechanisms for sustainable management of natural resources are created UNDP Strategic Plan Output: Primary Output 1.3: Solutions developed at national and sub-national levels for sustainable management of natural resources, ecosystem services, chemicals and waste. Indicator 1.3.1: Number of new partnership mechanisms with funding for sustainable management solutions of natural resources, ecosystem services, chemicals and waste at national and/or subnational level. Secondary Output 2.5: Legal and regulatory frameworks, policies and institutions enabled to ensure the conservation, sustainable use, and access and benefit sharing of natural resources, biodiversity and ecosystems, in line with international conventions and national legislation. Output Indicator 2.5.2: Number of countries implementing national and local plans for integrated Water Resource Management. UNDP Social and Environmental Screening UNDP Gender Marker: Category: 1 Low 1 Atlas Project ID/Award ID number: TBD Atlas Output ID/Project ID number: TBD UNDP-GEF PIMS ID number: 5269 GEF ID number: 9359 Planned start date: 1-May-2017 Planned end date: 30-April-2020 LPAC date: TBD Brief project description: The Dniester is the ninth largest river in Europe, and one of the most interesting rivers of the region with many different cultures and people having lived here. The Dniester river basin is the fourth largest river in Ukraine and the largest in the Republic of Moldova, it lies within the Black Sea basin. The total length of the river is 1,350 km, the basin area is more than 72,000 km2. Approximately 8.5 million people (5.5 million in Ukraine and 2.7 million in Moldova) live in the basin. The basin supports agriculture, aquaculture, water supply, recreation, hydro-power generation, production of building materials, woodworking industry, and mining. Today there are serious ecological challenges within the Dniester River Basin, including the impact on the water flow regime (quantity and fluctuations) and pollution (quality), loss of biodiversity, climate change and resources management which needs significant improvements. The overall objective of the project is to support ‘Integrated water resources management in the Dniester river basin to strengthen sustainable development, through the update of the TDA, development and endorsement of the SAP and initiation of its implementation,’ and has been designed to deal with important water/environment issues within Moldova and Ukraine. The main directions of work will be: Undertaking a detailed situation analysis in the transboundary Dniester basin (TDA) and agreeing on the joint Strategic Action Programme (SAP). These will support the Republic of Moldova and Ukraine to implement the EU Water Framework Directive (EU Association Agreements signed in 2014 by both countries), the National Environment Strategies for the Republic of Moldova for the period 2014 -2023 and the National Environmental Policy Strategy of Ukraine to 2020, Support to the transboundary management bodies, and to facilitate the national inter- sectoral and stakeholder dialogues, which fall under the obligations of the two states to implement the UNECE Water Convention on the Protection and Use of Transboundary Watercourses and International Lakes and the EU WFD, Addressing the issue of water quantity taking into account the needs of various upstream and downstream stakeholders (working with the hydropower sector, water balance, addressing adaption to climate change) which are reflected in the National Adaptation Strategy for the Republic of Moldova (2014), and the bilateral Strategic Framework for Adaption to Climate Change in the Dniester River Basin (2015), 2 Implementing pilot projects on some of the most burning issues on the basin: degradation of the small rivers, loss of biological diversity. Actions on these issues are prescribed by the Strategy for Biodiversity Conservation of the Republic of Moldova for 2015-2020, National Environmental Policy Strategy of Ukraine till 2020, bilateral Strategic Framework for Adaption to Climate Change in the Dniester River Basin (2015), and the management plans for several wetlands of international importance (the Ramsar sites) located along in the Dniester river. All project activities will follow a gender strategy to be developed in the inception phase and will, as a minimum, record sex-disaggregated data on all participants. FINANCING PLAN GEF Trust Fund or LDCF or SCCF or other vertical USD 1,950,000 fund (1) Total Budget administered by UNDP USD: 1,950,000 PARALLEL CO-FINANCING (all other co-financing that is not cash co-financing administered by UNDP) UNDP USD: 300,000 Government USD: 2,000,000 (Ministry of Ecology and Natural Resources of Ukraine) USD: 1,000,000 (Ministry of Environment of the Republic of Moldova) Other… USD: 1,515,000 (OSCE) USD: 1,100,000 (UNECE) USD: 134,500,000 (SDC) USD: 50,000 Regional Water Management Authority in Krakow (Poland) (2) Total co-financing USD: 19, 465,000 (3) Grand-Total Project Financing (1)+(2) USD: 21,415,000 SIGNATURES Signature: print name below Agreed by Date/Month/Year: Government of Moldova 3 Signature: print name below Agreed by Date/Month/Year: Government of Ukraine Signature: print name below Agreed by Date/Month/Year: Implementing Partner Signature: print name below Agreed by Date/Month/Year: UNDP 4 Contents 1 Situation Analysis ............................................................................................................................ 9 1.1 Environmental Context ........................................................................................................... 9 1.2 Socio-economic context ........................................................................................................ 13 1.3 Problems to be addressed .................................................................................................... 15 1.4 Threats and root causes ........................................................................................................ 16 1.5 Long-term solutions and barriers.......................................................................................... 17 1.6 Stakeholder analysis ............................................................................................................. 18 1.7 Baseline analysis ................................................................................................................... 22 1.7.1 Regional overview ......................................................................................................... 22 1.7.2 Regional and National Policies ...................................................................................... 24 1.7.3 National Projects ........................................................................................................... 27 1.7.4 Regional projects and co-operation .............................................................................. 29 1.7.5 Executing Agencies capabilities and experiences in the Dniester Basin ....................... 30 2 Strategy ......................................................................................................................................... 33 2.1 Project rationale and policy conformity ............................................................................... 33 2.2 Country ownership ................................................................................................................ 33 2.3 Design principles and strategic considerations..................................................................... 34 2.4 Project outputs and activities ............................................................................................... 34 2.4.1 Component 1. In-depth analysis of water resources, related ecosystems and their use 35 2.4.2 Component 2: Development of the policy, legal and institutional set-up, mandate and capacities of the River Basin Commission for strengthened basin-level cooperation ................. 37 2.4.3 Component 3: Strengthening of water resources and biodiversity monitoring and conservation, and information exchange in the Dniester River Basin .......................................... 43 2.5 Risks and assumptions .......................................................................................................... 47 2.6 Cost-effectiveness and incremental cost reasoning ............................................................. 48 2.7 Innovation, sustainability and potential for scaling-up ........................................................ 49 2.8 UNDP comparative advantage .............................................................................................. 50 2.9 Compliance with UNDP safeguards policies ......................................................................... 51 3 Project Results Framework ........................................................................................................... 52