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Sustainable Financing and Benefit-Sharing Strategy For Sustainable Financing and Benefit-Sharing Strategy for Conservation and Management of Puttalam Lagoon For the Project: Ecologically and Socio Economically Sound Coastal Ecosystem Rehabilitation and Conservation in Tsunami Affected Countries of the Indian Ocean – Sri Lanka Component Thushara Ranasinghe March 2010 Sustainable Financing and Benefit-Sharing Strategy for Conservation and Management of Puttalam Lagoon ECOSYSTEMS AND AND LIVELIHOODS LIVELIHOODS GROUP, GROUP ASIA ASIA, IUCN Sustainable Financing and Benefit- Sharing Strategy for Conservation and Management of Puttalam Lagoon For the Project: Ecologically and Socio Economically Sound Coastal Ecosystem Rehabilitation and Conservation in Tsunami Affected Countries of the Indian Ocean – Sri Lanka Component Sustainable Financing and Benefit- Sharing Strategy for Conservation and Management of Puttalam Lagoon For the Project: Ecologically and Socio Economically Sound Coastal Ecosystem Rehabilitation and Conservation in Tsunami Affected Countries of the Indian Ocean – Sri Lanka Component Thushara Ranasinghe March 2010 This document was produced under the project ‘Coastal ecosystems rehabilitation and conservation in Sri Lanka and Thailand’ carried out with financial support from the German Federal Ministry for Economic Cooperation and Development (Bundesministerium Für Wirtschaftliche Zusammenarbeit - BMZ). The designation of geographical entities in this technical report, and the presentation of the material, do not imply the expression of any opinion whatsoever on the part of IUCN or BMZ concern- ing the legal status of any country, territory, or area, or of its authorities, or concerning the delimitation of its frontiers or boundaries. The views expressed in this publication do not necessarily reflect those of IUCN or BMZ. Published by: Ecosystems and Livelihoods Group Asia, IUCN, International Union for Conservation of Nature and Natural Resources. Copyright: © 2010, International Union for Conservation of Nature and Natural Resources. Citation: Ranasinghe, T (2010). A Sustainable Financing and Benefit - Sharing Strategy for Conservation and Management of Puttalam Lagoon Colombo: Ecosystems and Livelihoods Group Asia, IUCN. viii + 62 pp. Reproduction of this publication for educational or other non-commercial purposes is authorized without prior written permission from the copyright holder provided the source is fully acknowledged. Reproduction of this publication for resale or other commercial purposes is prohibited without prior written permission of the copyright holder. Cover Photo: Sand Mining in Kala Oya Estuary, Sri Lanka © Thushara Ranasinghe Produced by: Ecosystems and Livelihoods Group Asia, IUCN. Sustainable Financing and Benefit-Sharing Strategy Table of Contents Executive Summary vii 1. Introduction 1 2. Socio-economics and environmental profile of the project area 4 2.1. Socio-economics profile 4 2.2. Land use profile 5 2.3. Lagoon ecosystems and their importance 8 2.4. Issues and threats for the sustainable management for lagoon ecosystems 13 2.5. The project investment 15 2.6. A summary of the institutional analysis & mapping 28 3. Sustainable financing and benefit sharing framework 32 3.1. Necessary steps (Saima Baig 2010) 33 3.2. Legal and Institutional Framework for Sustainable Financing 34 3.3. Coalition building 36 3.4. Investment priorities 37 3.4.1. Short term investment priorities 37 3.4.2. Medium and long term investment priorities 39 3.5. Gap analysis and setting annual goals 40 4. Sustainable financing opportunities 41 4.1. Short term 42 4.2. Medium and Long term 44 5. Benefit sharing 48 5.1. Assessment of benefits, needs and niches for benefit sharing 50 6. Conclusion and Recommendations 52 References 55 Annexes 58 List of Tables Table 1: Shrimp farms in Puttalam 6 Table 2: Land use types and area 7 Table 3: Protected areas around Puttalam Lagoon 9 Table 4: BMZ Investments in Puttalam 20 Table 5: National Government agencies, mainly responsible for CZM activities 25 Table 6: Provincial Government agencies, mainly responsible for CZM activities 26 Table 7: Fisheries Cooperative societies 26 List of Figures Figure 1: Land use pattern in the project area 7 Figure 2: Mangroves in Puttalam lagoon 11 Figure 3: Spatial Distribution of the Project Activities 18 Figure 4: Institutional Map 29 Figure 5: Disaggregating natural resources and their beneficiaries in economic valuations 52 iii Sustainable Financing and Benefit-Sharing Strategy List of Acronyms AD Assistant director ADB Asian Development Bank AUSAID Australian Government’s Overseas Aid Programme BMZ Federal Ministry for Economic Corporation and Development CBOs Community Based Organizations CCD Coast Conservation Department CEA Central Environmental Authority CEJ Centre for Environmental Justice CES Compensations for Ecosystem Services CFL Compact Fluorescent Lamp CIDA Canadian International Development Agency CSR Community Social Responsibility CZMP Coastal Zone Management Plan DANIDA Danish International Development Agency DDSP District Disability Action Plan DFID Department for International Development (UK) DOF Department of Forest DSD Divisional Secretariat Division DWLC Department of Wildlife Conservation EFL Environmental Foundation Limited EU European Union FAO Food and Agriculture Organization FI Fisheries Inspectors FMA Fisheries Management Authority GEF Global Environmental Facility GIS Geographic Information System GSMB Geological Survey and Mines Bureau HICZMP Hambantota Integrated Coastal Zone Management Project IDP Internally Displaced People IDRC International Development Research Centre ISB Industrial Service Bureau IUCN International Union for Conservation of Nature JICA Japan International Cooperation Agency LMA Lagoon Management Authority SLLRDC Sri Lanka Land Reclamation and Development Corporation MBI Market Based Instruments MDG Millennium Development Goals MENR Ministry of Environment and Natural Resources MF&AR Ministry of Fisheries and Aquatic Resources MFF Mangroves for Future MPPA Marine Pollution Prevention Authority MTRB Motorized traditional boats NAQDA National Aquaculture Development Authority NARA National Aquatic Resources Development and Research Agency NBSB Beach seine boats NGOs Non Government Organizations iv Sustainable Financing and Benefit-Sharing Strategy NORAD Norwegian Agency for Development Cooperation NPA National Plan of Action NTRB Non motorized traditional boats NWPC North Western Provincial Council OFRP Out board FRP boat PEA Provincial Environment Authority PES Payment for Environmental Services PILF Public Interest Law Foundation PLCMP Puttalam Lagoon Conservation Management Plan PMOF Provincial Ministry of Fisheries RETA Regional Technical Assistance Rs Sri Lankan Rupee (US$1=Rs114) SAM Sustainable Area management SDC Swiss Development Cooperation UDA Urban Development Authority UNDP United Nations Development Programme UNEP United Nations Environmental Programme UNESCO United Nations Educational, Scientific and Cultural Organization USAID United States Agency for International Development WDA Wayamba Development Authority v Sustainable Financing and Benefit-Sharing Strategy Acknowledgments The author wishes to acknowledge the support of the Federal Ministry of Economic Cooperation and Development, Germany (BMZ) for providing the financial support for the development of this strategy. Thanks are also due to the support, input and backstopping provided by Shamen Vidanage, Coordinator IUCN Sri Lanka Programme; Diana De Alvis, Kapila Gunarathne and Dilhari Weragodatenna from the IUCN Sri Lanka Office; Maeve Nightingale, Regional Coordinator IUCN Asia Coastal and Marine Programme; Saima Baig Co-coordinator, IUCN Asia Regional Environmental Economics Progremme; Sanjeewa Lelwala, Programme Officer, IUCN Asia Regional Species & Biodiversity Programme; Shehani Peris, intern and Ali Raza Rizvi, Head Ecosystems and Livelihoods Group II IUCN Asia. Thushara Ranasinghe Senior Programme Officer Regional Environmental Economics Programme (REEP) Ecosystems & Livelihoods Group, Asia IUCN - The World Conservation Union 4/1 Adams Avenue, Colombo 4, SRI LANKA, E-Mail: [email protected] www.iucn.org vi Sustainable Financing and Benefit-Sharing Strategy Executive Summary The Sri Lanka component of the Ecologically and Socio-economically Sound Coastal Ecosystem Rehabilitation and Conservation in Tsunami Affected Countries of the Indian Ocean project aimed at facilitating coastal ecosystem rehabilitation and conservation activities at Puttalam Lagoon. The communities living in these areas are extensively dependent on the resources provided by the surrounding coastal, lagoon and terrestrial ecosystems for their livelihoods and other economic activities. To achieve the objectives of this project, a set of activities were designed, planned and implemented. The project activities set the stage for strengthening the management of restored ecosystems which would help to offset future threats and pressures. The decrease in government financing and international donor funding for natural resource management has prompted the need to develop additional sustainable financing mechanisms for the long term conservation management of natural resources. Therefore, under this project a sustainable financing and benefit sharing strategy has been developed to describe the mechanism of ensuring continuous funding for implementation of the Puttalam Lagoon Conservation Management Plan (PLCMP) after the project period ends. The main purpose of the PLCMP is to address some of the
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