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World Bank Document Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: 36172-BR PROJECT APPRAISAL DOCUMENT ON A PROPOSED GRANT FROM THE Public Disclosure Authorized GLOBAL ENVIRONMENT FACILITY TRUST FUND IN THE AMOUNT OF US$7.18 MILLION TO THE FEDERATIVE REPUBLIC OF BRAZIL FOR THE INTEGRATED MANAGEMENT OF AQUATIC RESOURCES Public Disclosure Authorized IN THE AMAZON REGION PROJECT (AQUABIO) May 15,2006 Environmentally and Socially Sustainable Development Sector Management Unit Brazil Country Management Unit Latin America and the Caribbean Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Public Disclosure Authorized Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective December 3 1,2004) Currency Unit = Real (R$) R$2.75 = US$1 FISCAL YEAR January 1 - December 31 ABBREVIATIONS AND ACRONYMS ACTO Amazon Cooperation Treaty Organization AM State of Amazonas AMA Monitoring and Analysis Project (under the Rain Forest Program) ANA National Water Agency AP Action Program for integrated management of aquatic resources APP Permanent Conservation Area ARPA Amazon Region Protected Areas Project CAS World Bank Country Assistance Strategy CBD Convention on Biological Diversity CEPNOR Fishing Research and Management Center for the Northern Region - IBAMA CONABIO National Biodiversity Commission DIFLOR Forestry Directorate - MMA ELETRONORTE Northern Brazil Electric Energy Utility Company EMPAER Rural Extension and Research Company of Mato Grosso FASE Association of Organizations for Social and Educational Assistance SEMA State Secretariat of Environment ofMato Grosso FVA Vitbria Amaz6nica Foundation GEF BA Integrated and Sustainable Management of Transboundary Water Resources in the Amazon River Basin Project GOB Government of Brazil GTA Amazon Working Group (Association of Amazon NGOs) IABIN Inter-American Biodiversity Information Network IBAMA Brazilian Institute for the Environment and Renewable Natural Resources INPA Amazon National Research Institute IPAM Environmental Research Institute IPfi Ecological Research Institute ISA Socio-Environmental Institute KFW German Development Bank MCT Ministry of Science and Technology MDA Ministry of Agrarian Development MMA Ministry of Environment MT State of Mato Grosso NBP National Biodiversity Policy NEP I1 Brazil Second National Environmental Project NRPP Natural Resources Policy Project, Rain Forest Program OAS Organization of American States OEMA State Environmental Agencies ONGARA Environmental Organization for the “Roncador Araguaia” Area PA State ofPara PCU Project Coordination Unit PD/A Type A Demonstration Projects, Rain Forest Pilot Program PEPE State Program of Strategic Preservation of Riparian Forests in Mato Grosso PIX Xingu Indigenous Park POA Annual Operational Plan PPA Multi-Year Plan of the Brazilian Government PPDS-JUS Community Plan for the Sustainable Development of the Area Downstream from the UHE Tucurui Dam PPG7/RFT Pilot Program to Conserve the Brazilian Rain Forest PROAMBIENTE Socio-Environmental Development Program for Smallholder Agriculture PROBIO National Biodiversity Project ProManejo Forest Resources Management Project (under the Rain Forest Program) PRONABIO National Biodiversity Program ProVarzea Brazil Amazon Floodplain Natural Resources Management Project RESEX Support to Extractivist Reserves I1Project RFT Rain Forest Trust Fund SBF MMA‘s Secretariat of Biodiversity and Forests - MMA SDS Amazon State Secretariat of the Environment and Sustainable Development SIBA Freshwater Biodiversity Information System SIPAM Amazon Protection System SIVAM Amazon Surveillance System SNUC National System of Conservation Units uc Conservation Unit or Protected Area UFAM Federal University of Amazonas UFPA Federal University of Para UNEMAT State University of Mato Grosso UNESCO United Nations Educational, Scientific, and Cultural Organization Vice President: Pamela Cox Country ManagedDirector: John Briscoe Sector Manager: Abel Mejia Task Team Leader: Maria Isabel Junqueira Braga / Adriana Moreira FOR OFFICIAL USE ONLY This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not be otherwise disclosed without World Bank authorization. BRAZIL Integrated Management of Aquatic Resources in the Amazon Region .AquaBio CONTENTS Page A . STRATEGIC CONTEXT AND RATIONALE ................................................................. 6 1. Country and sector issues .................................................................................................... 6 2 . Rationale for Bank involvement ......................................................................................... 8 3 . Higher level objectives to which the project contributes .................................................... 8 B. PROJECT DESCRIPTION ................................................................................................. 9 1. Lending instrument ............................................................................................................. 9 2 . Project development objective and key indicators .............................................................. 9 3 . Project components ............................................................................................................. 9 4 . Lessons learned and reflected in the project design.......................................................... 13 5 . Alternatives considered and reasons for rejection ............................................................ 13 C . IMPLEMENTATION ........................................................................................................ 14 1. Project Implementation Strategy ....................................................................................... 14 2 . Partnership arrangements .................................................................................................. 16 3 . Institutional and implementation arrangements ................................................................ 16 4 . Monitoring and evaluation of outcomes/results ................................................. 18 5 . Sustainability and Replicability ........................................................................................ 19 6 . Critical risks and possible controversial aspects ............................................................... 20 7 . Loadcredit conditions and covenants ............................................................................... 20 D. APPRAISAL SUMMARY ................................................................................................. 21 1. Economic and financial analyses ...................................................................................... 21 2 . Technical ........................................................................................................................... 21 3 . Fiduciary ........................................................................................................................... 22 4 . Social ................................................................................................................................. 22 5. Environment ...................................................................................................................... 24 6 . Safeguard policies ............................................................................................................. 24 7 . Policy Exceptions and Readiness...................................................................................... 24 Annex 1: Country and Sector or Program Background......................................................... 25 Annex 2: Major Related Projects Financed by the Bank and/or other Agencies ................. 32 Annex 3: Results Framework and Monitoring ........................................................................ 33 Annex 4: Detailed Project Description...................................................................................... 42 Annex 5: Project Costs ............................................................................................................... 60 Annex 6: Implementation Arrangements ................................................................................. 61 Annex 7: Financial Management and Disbursement Arrangements ..................................... 67 Annex 8: Procurement Arrangements ...................................................................................... 71 Annex 9: Economic and Financial Analysis ............................................................................. 75 Annex 10: Safeguard Policy Issues and Indigenous People’s Strategy .................................. 77 Annex 12: Documents in the Project File ................................................................................. 91 Annex 13: Statement of Loans and Credits .............................................................................. 92 Annex 14: Country at a Glance ................................................................................................. 96 Annex 15: Incremental Cost Analysis ....................................................................................... 98 Annex 16: STAP Roster Review .............................................................................................. 110 Annex 17: Map ofthe Project
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