Integrated Safeguards Data Sheet s1

INTEGRATED SAFEGUARDS DATA SHEET CONCEPT STAGE Report No.: AC2192

Date ISDS Prepared/Updated: 05/08/2006

I. BASIC INFORMATION

A. Basic Project Data

Country: Ecuador Project ID: P097687 Project Name: Galapagos and Ecuadorian Coast Natural Resources Management Task Team Leader: Roberto Chavez Estimated Appraisal Date: March 20, 2007 Estimated Board Date: May 30, 2007 Managing Unit: LCSFU Lending Instrument: Specific Investment Loan Sector: General water, sanitation and flood protection sector (30%);Solid waste management (25%);Sewerage (15%);Sub-national government administration (15%);Information technology (15%) Theme: Biodiversity (P);Municipal governance and institution building (P);Other urban development (S);Other environment and natural resources management (S);Other social protection and risk management (S) IBRD Amount (US$m.): 35.00 IDA Amount (US$m.): 0.00 GEF Amount (US$m.): 0.00 PCF Amount (US$m.): 0.00 Other financing amounts by source: BORROWER 0.00 Financing Gap 15 .00 15.00

B. Project Objectives [from section 2 of PCN] The project development objective is to support the GOE and donor community to first stabilize and then reverse the environmental and social degradation of the Eastern Tropical Pacific LME, especially the Galapagos archipelago, and to establish a policy framework and effective governance coordination that will facilitate sustainable tourism, fishing, and human development. This will be achieved through:

a) Establishing with the GOE, the donor community, and stakeholders a policy framework for conservation and sustainable development for the integrated system of the Galapagos and the mainland coast that recognizes their ecological and socio-economic connectivity and serves as a basis for comprehensive planning and monitoring purposes;

b) Implementing actions and infrastructure investments primarily on the coast to promote sustainable tourism and human development; and,

c) Implementing actions to strengthen natural resource governance and build long-term public support for conservation of the Galapagos and the Ecuadorian coast.

All World Bank studies and investments under the project will facilitate, complement, and build upon other initiatives and programs, and avoid duplicating efforts at all costs. The Bank will coordinate closely with the donor community in the project area, in particular with the Donors’ Roundtable on the Galapagos, and work with local, provincial, regional and national authorities. The legal basis for the proposed project is the Special Law for Galapagos of 1998. Through this approach, the Bank seeks to establish a comprehensive development framework for the islands and coast of Ecuador.

C. Project Description [from section 3 of PCN] A broad consultation process has been started at central, provincial, and grassroots levels to ensure local participation from the outset. Likely project components over five years from 2007 to 2012 will include:

a) Establishing with the GOE, the donor community, and stakeholders a policy framework for conservation and sustainable tourism and human development in the Galapagos and the mainland coast that recognizes their ecological and socio-economic connectivity. This will build on prior analyses, such as those of the PMRC (Coastal Resources Management Program) and the Galapagos Regional Plan, and will include policies, guidelines, and description of essential actions for the four key areas of tourism, migration, fisheries, and invasive species. Specific entry points, with their respective boundaries, will include:

i) Tourism: The growth of tourism both poses a threat to the islands while ignoring great potential on the mainland. This component will include environmental impact assessments of proposed tourism investments and the adoption of adequate mitigation measures. It will be preceded by a study of the archipelago’s carrying capacity and willingness to pay assessment. Tourism in the Galapagos depends on conserving its unique environment and biodiversity, which in turn are affected by migration, fisheries, and invasive species. These are therefore essential elements of the policy and governance framework.

ii) Migration: In accordance with the General Regulation of the Special Law for Galapagos, growth by migration must be stopped. This could be achieved by strengthening the capacity to manage the immigration/ emigration of temporary and permanent residents of Galapagos in a manner that is transparent, effective, and helps to achieve long-term population stabilization, possibly by outsourcing the migratory services managed by INGALA. Concurrently, subsidies must be gradually phased out to lower resistance to emigration, which in turn will decrease reliance on non-renewable resources in favor of sustainable and appropriate green technologies.

iii) Fisheries: Current artisanal fishing practices are one of the dangers to biodiversity in the Galapagos Marine reserve. It is necessary to promote sound management of the EPTC’s larger marine ecosystem, which includes the Galapagos Marine Reserve, Ecuador’s coastal zone, and the rest of Ecuador’s Exclusive Economic Zone. This component will consist of re-purposing the Galapagos fishing fleet and favoring non-extractive uses in Galapagos by financing incentives and technical support for change to non-extractive activities in Galapagos or on the mainland.

iv) Invasive species: The increase in tourism, migration and access points to the islands directly increase vulnerability to disease vectors and invasive species, which in turn pose one of the greatest risks to biodiversity in the Galapagos. This component will consist of mitigation measures of two types: building up the agricultural quarantine service SESA-SICGAL and the Galapagos National Park Service, which had begun with the adoption by GNPS of ISO9000.

b) Implementing actions and infrastructure investments both in Galapagos and on the mainland coast to promote sustainable tourism and human development. These will include investments to: i) Promote the alignment of state, private, and donor investment in the Galapagos and Ecuadorian Coast with GOE policy, plans and legislation regarding tourism and human development. ii) Support local ecotourism development on the mainland coast by improving basic infrastructure (visitor information centers, tourism mitigation infrastructure such as sanitation services and established camping areas); rehabilitatingthe environment of the coast through reforestation on mangroves and coastal woodlands to curtail environmental and biodiversity damage or loss; strengthening capacity for environmental management in the participating municipalities, and providing local economic development support, thereby creating job opportunities and reducing the migratory “pull” of Galapagos as the supposed land of economic opportunity. iii) Improve quarantine facilities; strengthen the management of invasive species in all ports in Galapagos and the mainland that are used for movement of cargo and passengers to and among the islands; strengthen Ecuadorian Merchant Marine capacity to provide security for tourism on the coast and patrol the islands and to enforce legislation. iv) Support the establishment of Santay Island in Guayaquil and other protected and multiple- use areas on the mainland coast as a resource for ecotourism development as well as a means to protect biodiversity and achieve sustainability of fisheries and other human uses of the coastal/marine environment.

c) Implementing actions to strengthen environmental governance and sustainable human development and build long-term public support for conservation of Galapagos and the larger marine ecosystem to which the archipelago belongs. This will include: i) Facilitate the development of a national tourism strategy for the coast to complement and balance tourism to the islands, including technical assistance and capacity building at the local, municipal, provincial, and national levels, as well as tourism communication and promotion strategies. ii) Establish an open decision-support system and strategic planning tools for the archipelago and coast to provide the GOE, PMRC, INGALA, GNP, and local and provincial governments with a comprehensive instrument panel on “who’s doing what, where” for planning and monitoring purposes. iii) Assist local governments to build technical capacity and prepare sustainable development plans that will allow for the transfer of earmarked funds from the central government for water and sanitation and community-based disaster prevention and mitigation. iv) Support reform and capacity building of institutions involved in the management of Galapagos, particularly of the GNPS, INGALA, and SESA-SICGAL; to fully enforce the legislation and to improve the natural resource governance both in Galapagos and on the mainland coast. v) Strengthen programs for the ecological and socio-economic monitoring of Galapagos and mechanisms for use of this information for adaptive management of the archipelago, in accordance with the Special Law for Galapagos and its regulations. vi) Support the improvement of educational standards in Galapagos and the coast; the development of local context specific curricula; the development of educational activities for adults and children outside of the formal education program; and the development of children, youth, and community education in environmental and cultural stewardship. vii) Develop and implement permanent targeted awareness programs primarily among youth groups in order to ensure that decisions about Galapagos and the coast are well informed and to encourage the Ecuadorian people’s wish to ensure conservation of their natural heritage. viii) Provide specialized assistance in areas such as environmental negotiation training for GOE, local governments, trade organizations, and community-based organizations; and in mediation and conflict resolution ix) Support, in collaboration with neighboring countries and existing regional bodies where appropriate, strategic assessment and planning for the larger marine ecosystem of which Galapagos and Ecuador’s Exclusive Economic Zone are part.The proposed project preparation will undertake a Strategic Environmental Assessment (SEA) specifically in the tourism, fisheries and migration sectors of the Ecuadorian coast and the Galapagos.

D. Project location (if known) Galapagos Islands and Ecuadorian Coast

E. Borrower’s Institutional Capacity for Safeguard Policies [from PCN] Moderate to weak

F. Environmental and Social Safeguards Specialists Mr George Campos Ledec (LCSEN) Ms Maria Elizabeth Dasso (LCCPE)

II. SAFEGUARD POLICIES THAT MIGHT APPLY Safeguard Policies Triggered Yes No TBD Environmental Assessment (OP/BP 4.01) X Strategic Environmental Assessment will be undertaken as part of project preparation and will define criteria for site screening, subproject selection and procedures for subproject EAs. Natural Habitats (OP/BP 4.04) X Natural habitats safeguard is triggered as the project will indirectly affect these on islands and coast. Forests (OP/BP 4.36) X Policy triggered due to presence of mangroves and coastal forests in project area. Safeguard Policies Triggered Yes No TBD Pest Management (OP 4.09) X Cultural Property (OPN 11.03) X Policy may be trigered in a few coastal municpalicites if subprojects are undertaken. Indigenous Peoples (OP/BP 4.10) X Policy may be triggered on the coast. Involuntary Resettlement (OP/BP 4.12) X The possibility of involuntary resettlement occurring due to either civil works activities or proposed policy reforms and strengthening measures will be evaluated during project preparation, and, if needed, an appropriate resettlement instrument will be developed. Safety of Dams (OP/BP 4.37) X Projects on International Waterways (OP/BP 7.50) X Projects in Disputed Areas (OP/BP 7.60) X

Environmental Category: A - Full Assessment

III. SAFEGUARD PREPARATION PLAN

A. Target date for the Quality Enhancement Review (QER), at which time the PAD-stage ISDS would be prepared: 01/15/2007

B. For simple projects that will not require a QER, the target date for preparing the PAD-stage ISDS: 03/10/2007

C. Time frame for launching and completing the safeguard-related studies that may be needed. The specific studies and their timing1 should be specified in the PAD-stage ISDS. Ideally wiil be carried out in 2006 with PHRD support (appplied for).

IV. APPROVALS

Signed and submitted by: Task Team Leader: Mr Roberto Chavez 04/17/2006 Approved by: Regional Safeguards Coordinator: Mr Reidar Kvam 04/21/2006 Comments: Sector Manager: Mr John Henry Stein 04/21/2006 Comments:

1 Reminder: The Bank's Disclosure Policy requires that safeguard-related documents be disclosed before appraisal (i) at the InfoShop and (ii) in-country, at publicly accessible locations and in a form and language that are accessible to potentially affected persons.