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79397-89388 Payment for Watershed Services.Pdf United Nations Development Programme Country: China PROJECT DOCUMENT Payment for Watershed Services in the Chishui River Basin for the Project Title: Conservation of Globally Significant Biodiversity UNDAF Outcome 1: Government and other stakeholders ensure environmental sustainability, Outcome(s): address climate change, and promote a green, low carbon economy Expected CP Outcome(s): Outcome 4: Low carbon and other environmentally sustainable strategies and technologies are adapted widely to meet China’s commitments and compliance with Multilateral Environmental Agreements; and Outcome 5. The vulnerability of poor communities and ecosystems to climate change is reduced Expected CPAP Output (s): Output 4.1 Policy and capacity barriers for the sustained and widespread adoption of low carbon and other environmentally sustainable strategies and technologies removed, and Output 5.1 A strengthened policy, legal, institutional framework for the sustainable use of land, water, the conservation of biodiversity, and other natural resources in fragile ecosystems is enforced. Executing Entity/Implementing Partner: Ministry of Environmental Protection Implementing Ent ity/Responsible Partners: Environmental Protection Department of Guizhou Brief Description The Chishui River is one of the most important tributaries of the upper Yangtze River, because of its diverse landscapes, richness in biodiversity and abundance in water resources. It is the only major tributary of the Upper Yangtze that remains free-flowing without a mainstream dam. The Chishui River Basin (CRB) is an important storehouse of biodiversity, lying within the Upper Yangtze Freshwater Ecoregion and the Guizhou Plateau Broadleaf and Mixed Forests Terrestrial Ecoregion. The basin also lies on the eastern margin of the Mountains of Southwest China biodiversity hotspot, and contains part of the China Danxia World Heritage Site. The basin has globally significant fish populations, with 112 species of which 28 are endemic to the Upper Yangtze (27.2% of its endemic fish diversity). Significant environmental degradation has taken place in the Chishui River Basin, due in large part to unsustainable land use practices with marginalized farming communities increasingly cultivating steep slopes, resulting in deforestation, soil erosion, sediment and nutrient loading of the river, hydrological impacts and loss of biodiversity. The Guizhou Provincial Government and riparian municipalities have already made significant investments towards achieving environmental protection in the CRB to ensure clean water supply to downstream industries. However, this has been inadequate to address the extensive watershed degradation. As a result, both water quality and dry season flows have been impacted, affecting downstream users. The long term solution proposed by this project is to operationalise and mainstream a market-based system for Payment for Watershed Services (PWS) within China’s existing eco-compensation policies and programmes that will support large scale changes in land use over the long term, coupled with integrated watershed management that takes account of biodiversity and ecological functions as well as development needs. However, two principal barriers currently hamper the realisation of this long term solution: the weak enabling framework and institutional capacity for PWS implementation and upscaling; and insufficient know-how for the establishment and implementation of viable PWS mechanisms for biodiversity conservation. In the GEF alternative scenario, the accomplishment of river basin management objectives that include sustaining and restoring ecosystem services and biodiversity, rural poverty alleviation, sustainable land use management as well appropriate economic development, will be enabled by the introduction of a PWS PRODOC 5096 PWS in Chishui River Basin, China 1 Table of Contents SECTION I: Elaboration of the Narrative ................................................................................................. 7 PART I: Situation Analysis ..................................................................................................................... 7 Introduction .................................................................................................................................... 7 Context and global significance ..................................................................................................... 8 Threats, Root causes and Impacts ................................................................................................ 26 Long-term solution and barriers to achieving the solution ........................................................... 31 Introduction to Project site interventions ..................................................................................... 33 Stakeholder analysis ..................................................................................................................... 34 Baseline analysis .......................................................................................................................... 37 PART II: Strategy .................................................................................................................................. 42 Project Rationale and Policy Conformity ..................................................................................... 42 Project Goal, Objective, Outcomes and Outputs/activities .......................................................... 46 Project Indicators.......................................................................................................................... 61 Risks and Assumptions ................................................................................................................ 64 Incremental reasoning and expected global, national and local benefits ..................................... 68 Cost-effectiveness ........................................................................................................................ 71 Project consistency with national priorities/plans: ....................................................................... 72 Country Ownership: Country Eligibility and Country Drivenness .............................................. 74 Sustainability and Replicability ................................................................................................... 75 PART III: Management Arrangements ............................................................................................... 77 Implementation Arrangements ..................................................................................................... 77 Project Management ..................................................................................................................... 78 PART IV: Monitoring and Evaluation Plan and Budget ................................................................... 80 Monitoring and reporting ............................................................................................................. 80 PART V: Legal Context ......................................................................................................................... 85 SECTION II: STRATEGIC RESULTS FRAMEWORK (SRF) AND GEF INCREMENT ............... 86 PART I: Strategic Results Framework, SRF (formerly GEF Logical Framework) Analysis ......... 86 Indicator framework as part of the SRF ....................................................................................... 86 Part II: Incremental Cost Analysis ....................................................................................................... 92 SECTION III: Total Budget and Workplan ............................................................................................ 97 SECTION IV: ADDITIONAL INFORMATION .................................................................................. 102 PART I: Other agreements ................................................................................................................. 102 PART II: Organogram of Project ....................................................................................................... 104 PART III: Terms of Reference for key project staff ......................................................................... 105 Project Manager ......................................................................................................................... 105 Project Assistant ......................................................................................................................... 107 Overview of Inputs from Technical Assistance Consultants ..................................................... 108 PART IV: Stakeholder Involvement Plan ......................................................................................... 114 Project Annexes......................................................................................................................................... 122 Annex 1. Endemic Fishes of the Upper Yangtze River in Chishui River ........................................ 122 Annex 2. Protected Areas of the Chishui River Basin ....................................................................... 123 Annex 3. Institutional Functions of Key Stakeholder Agencies ....................................................... 126 Annex 4. Additional Information on Eco-compensation Schemes ................................................... 130 Annex 5. Community Consultation Record,
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