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WWF - GLOBAL ENVIRONMENT FACILITY PROJECT DOCUMENT Project Title: Integrated Ridge to Reef Management of the Mesoamerican Reef Ecoregion (MAR2R) GEF Project ID: 5765 WWF-US Project ID: G003 Countries: Belize, Guatemala, Honduras, Mexico Project Duration: 60 months Project Type: Full Size GEF Trust Fund: GEFTF GEF Focal Area: International Waters GEF Focal Area Objectives: IW-1, IW-2, IW-3 Project Executing Organization: Central American Commission on Environment and Development (CCAD) Executing Project Partners: Ministries of Natural Resources in Belize, Guatemala, Honduras and Mexico GEF Project Cost: $9,018,349 GEF Agency Fee: $811,651 Total GEF STAR: $9,830,000 Project Co-financing: $51,277,908 Total Project Cost: $61,107,908 WWF-US Point of Contact: Herve Lefeuvre WWF Department/Organization: WWF US Link to WWF’s Global Program Mesoamerican Reef-WWF Global Programme Framework: Framework regional priority Version Date: March 23 2017 i Table of Contents EXECUTIVE SUMMARY .......................................................................................................................... 1 ACRONYMS AND ABBREVIATIONS ..................................................................................................... 4 SECTION 1: BACKGROUND AND SITUATION ANALYSIS ............................................................. 5 1.1. Background and Context .............................................................................................................. 5 1.2. Global Significance ...................................................................................................................... 7 1.3 Overview of Threats and Drivers ................................................................................................. 8 1.4 Stakeholder Analysis ................................................................................................................. 10 1.5 Sectoral and National Policies ................................................................................................... 14 1.6 Baseline Analysis and Gaps ....................................................................................................... 18 1.7 Opportunities and Linkages (GEF and non-GEF interventions) ................................................ 27 SECTION 2: GEF INTERVENTION STRATEGY ................................................................................ 29 2.1. Project Scope and Vision (GEF Project Objective) ................................................................... 29 2.2. Conservation Targets Rationale (including GEF Global Environmental Benefits) .................... 38 2.3. Situational Analysis: Direct and Indirect Threats (Reference to Ratings Table in Appendix 2) 38 2.4. Project Strategies (GEF Project Components) and Expected Results ........................................ 41 2.5. Risk Analysis and Risk Management Measures (Project Risks) ............................................... 60 2.6. Consistency with National Priorities or Plans ............................................................................ 62 2.7 Consistency with GEF Focal Area/Fund Strategies ................................................................... 64 2.8 WWF Comparative Advantage and Consistency with WWF Programs ..................................... 65 2.9. Incremental Cost Reasoning ...................................................................................................... 66 2.10. Innovativeness, Sustainability, and Cost-Effectiveness ............................................................. 68 2.11. Communication Strategy............................................................................................................ 70 SECTION 3: INSTITUTIONAL FRAMEWORK AND IMPLEMENTATION ARRANGEMENTS ... 72 SECTION 4: STAKEHOLDER PARTICIPATION ................................................................................ 82 SECTION 5: MONITORING AND EVALUATION PLAN .................................................................. 89 SECTION 6: PROJECT FINANCING AND BUDGET ......................................................................... 92 6.1. Project Budget ............................................................................................................................ 92 6.2. Project Budget Notes ............................................................................................................... 100 ii 6.3. Project Co-financing ................................................................................................................ 137 Appendix 1: Project Map(s) .................................................................................................................. 138 Appendix 2: Threats Rating .................................................................................................................. 142 Appendix 3: Watershed Prioritization Matrix ....................................................................................... 143 Appendix 4: Conceptual Model ............................................................................................................ 144 Appendix 5: Results Chains .................................................................................................................. 145 Appendix 6: Logical Framework Matrix ............................................................................................... 150 Appendix 7: Organizational Chart ...................................................................................................... 1523 Appendix 8: Work Plan and Schedule .................................................................................................. 155 Appendix 9: Terminal Evaluation TOR ................................................................................................ 159 Appendix 10: Draft Procurement Plan .................................................................................................... 179 Appendix 11: ESIA Decision (Final Decision Disclosure) ..................................................................... 179 Appendix 12: Monitoring & Evaluation Plan (GEF Results Framework) .............................................. 180 Appendix 13: GEF Focal Area Tracking Tool(s) .................................................................................... 186 Appendix 14: Summary Budget .............................................................................................................. 186 Appendix 15: Co-Financing by Source (GEF Table C) .......................................................................... 187 Appendix 16: Co-Financing Commitment Letters .................................................................................. 188 Appendix 17: Endorsement Letters of GEF Operational Focal Points ................................................... 202 Appendix 18: Stakeholder Consultations Lists ....................................................................................... 207 Appendix 19. References ......................................................................................................................... 213 iii EXECUTIVE SUMMARY The Mesoamerican Reef Ecoregion (MAR) shared by Belize, Guatemala, Honduras, and Mexico includes the world’s largest transboundary barrier reef, spanning more than 1,000 km of coast and covering an area of 464,263 km2 of ocean, coasts, and watersheds draining into the Caribbean. Globally important habitats and ecosystems make the MAR a biodiversity hotspot; it is considered one of richest ecoregions and most diverse coral reefs in the Western Atlantic. It contains cloud and tropical forests, large rivers, karstic hydrogeological systems, fertile lowlands, coastal wetlands, lagoons, mangrove forests, seagrass beds, and coral reefs. The ecoregion provides livelihoods to communities, and contributes to the national economies of the four countries through agricultural commodities, shrimp aquaculture, commercial fishing, and a rapidly growing tourism sector, sustaining more than 12 million people. However, land use change and inadequate agricultural and development practices cause sedimentation and pollution, which in turn affect freshwater quality of rivers that originate in the mountains and lowland aquifers and make their way to the coasts and into the sea. In addition, mass tourism and associated development industries along the coast are expanding beyond control clearing mangrove forests and impacting the coral reefs while unsustainable fisheries threaten fish populations, ecosystem integrity and livelihoods. These anthropogenic threats have an impact from “ridge to reef” with consequences for freshwater, coastal and marine ecosystems compromising their ecological integrity. In 1997 the heads of the four MAR countries identified the MAR region as a shared transboundary ecoregion and declared it a priority conservation area, expressing their commitment to work together for its improved conservation and management by signing the Tulum Declaration in 1997, and reconfirmed their commitment via the Tulum+8 Declaration. In these instruments, the countries commissioned the Central American Commission on Environment and Development (CCAD) to lead their joint efforts. Despite strong political support from member countries, weak capacity and inadequate financial resources continue to limit CCAD’s leading role. Thus the MAR continues to be predominantly managed in a fragmented way, with insufficient collaboration between authorities