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Tunisia PROJECT DOCUMENT1 Project Title: Addressing Climate Change Vulnerabilities

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Tunisia PROJECT DOCUMENT1 Project Title: Addressing Climate Change Vulnerabilities United Nations Development Programme Country: Tunisia PROJECT DOCUMENT1 Project Title: Addressing climate change vulnerabilities and risks in vulnerable coastal areas of Tunisia UNDAF Outcome(s): Inclusive, sustainable and resilient model of economic and social development pillar UNDAF Pillar 1 Outcome 1 By 2019, a new fair, inclusive, sustainable and resilient model of economic and social development implemented by the Government, generating wealth and jobs\ UNDAF Pillar 1 Outcome 2 By 2019, regional authorities and Stakeholders efficiently manage and optimally operate sustainable and natural resources UNDAF Pillar 1 Outcome 3 By 2019, public authorities forecast and manage humanitarian crises and disasters in a better coordinated and more efficient manner UNDP Strategic Plan (2014-2017) Outcome 1: Growth and development are inclusive and sustainable, incorporating productive capacities that create employment and livelihoods for the poor and excluded UNDP Strategic Plan (2014-2017) Output 1.4: Scaled up action on climate change adaptation and mitigation across sectors which is funded and implemented Expected CP Outcome(s): Regional development plans elaborated, integrating land use and environmental specifications Expected CPAP Output(s): Still being drafted Executing Entity/Implementing Partner: Ministry of Equipment, Land Planning and Sustainable Development , Coastal Protection and Planning Agency (APAL) Implementing Entity/Responsible Partners: Ministry of Equipment, Land Planning and Sustainable Development APAL regional branches National Coastal Observatory Municipality of Houmet Essouk in Djerba Municipality of Sidi Ali Mekki in the northwest of the Gulf Tunis Local NGOs/CSOs 1For UNDP supported GEF funded projects, as this includes GEF-specific requirements UNDP Environmental Finance Services Page 1 Tunisia’s coast is the backbone of its economy and the confluence of competing resource uses including tourism, fishing and agriculture. Climate change and on-going anthropogenic exploitation make the coastal zone of Tunisia increasingly vulnerable due to associated impacts on agriculture and water quality. Key issues include the erosion of sandy beaches, increasing salinisation of agricultural fields and inundation of low lying wetland areas. Such impacts have resulted in a wide range of negative impacts on the services provided by these ecosystems and will be exacerbated by climate change, in particular elevated sea levels which are projected to rise up to 1m over the coming century. Currently, projections of future climate change scenarios are not considered in institutional policies and frameworks which guide coastal management in Tunisia. Coastal protection practices are generally reactive with a bias towards hard engineering works because institutional knowledge of holistic, integrated climate change risk management is limited. Exacerbating this situation is that the costs and benefits of coastal adaptation are poorly assessed and overlooked in most policy and investment decisions. Consequently, Tunisia has inadequate means to identify bankable and investment friendly coastal adaptation projects which can have cross-sectoral benefits and simultaneously reduce risks. Overall, these issues make sustainable development in the coastal zone unachievable at present. In response, this project proposes a risk-based approach to Climate Change Adaptation by enabling flexible adaptation pathways which will build resilience to climate change and provide maximum co- benefits. As tourism is a dominate source of revenue for the region, a set of economic instruments will be devised to signal the existing risks and drive future hotel and private residence development, including investments, away from vulnerable areas. With such an approach, local development plans will be made more risk-based and climate compatible. Both the public and private sectors will serve as important catalysts for adaptation interventions and in supporting coastal monitoring. Programme Period: 2014-2020 Total resources required $79,430,000 Total allocated resources: $79,430,000 Atlas Award ID: 00079688 Project ID: 00089624 PIMS ID: 4697 GEF/SCCF $ 5,500,000 Government (Grant) $ 55,800,000 Start date: September 2014 Government (Loan) $18,000,000 End Date: August 2020 UNDP (Grant) $100,000 GEI (Grant) $ 30,000 Management Arrangements NIM PAC Meeting Date 5 August 2014 TABLE OF CONTENTS 1 SITUATION ANALYSIS ................................................................................................................ 7 1.1. Climate change - induced problem ........................................................................................ 8 1.2. Problem statement .................................................................................................................. 9 1.3. Preferred solution ................................................................................................................. 10 1.4. Barriers of the project .......................................................................................................... 11 1.1.1 Existing coastal development planning and regulatory frameworks do not support anticipatory and integrated management of climate change risks ..................................................... 11 1.1.2 Limited expertise and knowledge of various risk assessment and decision support tools for adaptation planning, early responses and/or medium-term to long-term risk management .............. 11 1.1.3 Limited understanding of a Whole of Systems approach as a means to address current and anticipated climate related risks in the coastal regions. ..................................................................... 12 1.1.4 Inadequate means to mobilise funds for risk-reducing and adaptation activities on public and private levels ................................................................................................................................ 12 1.1.5 Limited Monitoring and Evaluation (M&E) of coastal protection interventions ............... 13 2 STRATEGY .................................................................................................................................... 13 2.1 Project rationale and policy conformity ............................................................................. 14 2.2 Country ownership: country drivenness and country eligibility ..................................... 17 2.3 Design principles and strategic considerations................................................................... 21 2.3.1 Baseline projects and financing .......................................................................................... 21 2.3.2 Relevant national and regional related initiatives .............................................................. 28 2.3.3 National and local benefits ................................................................................................. 31 2.4 Project Objective, Outcomes and Outputs/activities ......................................................... 34 2.4.1 Baseline Component 1 - Without SCCF Intervention ......................................................... 35 2.4.2 Adaptation Alternative Component 1 –With SCCF Intervention ........................................ 39 2.4.3 Baseline Component 2 - Without SCCF Intervention ......................................................... 43 2.4.4 Adaptation Alternative Component 2–With SCCF Intervention ......................................... 47 2.4.5 Baseline Component 3 - Without SCCF Intervention ......................................................... 55 2.4.6 Adaptation Alternative Component 3–With SCCF Intervention ......................................... 58 2.5 Key indicators, risks and assumptions ................................................................................ 65 2.6 Cost-effectiveness .................................................................................................................. 68 2.7 Sustainability of the project ................................................................................................. 75 2.8 Project replicability .............................................................................................................. 76 2.9 Stakeholder involvement ...................................................................................................... 76 2.9.1 Stakeholder baseline analysis ............................................................................................. 76 2.9.2 Stakeholder involvement plan ............................................................................................. 82 2.9.3 Expected Benefits ................................................................................................................ 82 3 PROJECT RESULTS FRAMEWORK ....................................................................................... 85 4 TOTAL BUDGET AND WORKPLAN ....................................................................................... 93 5 MANAGEMENT ARRANGEMENTS ...................................................................................... 100 6 MONITORING FRAMEWORK AND EVALUATION .......................................................... 104 7 LEGAL CONTEXT ..................................................................................................................... 109 8 ANNEXES ..................................................................................................................................... 110
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