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African Development Bank Group AFRICAN DEVELOPMENT BANK GROUP MULTINATIONAL CAMEROON, NIGER, NIGERIA, CENTRAL AFRICAN REPUBLIC, CHAD AND LCBC Public Authorized Disclosure THE GLOBAL ENVIRONMENT FACILITY FOR THE PROGRAMME TO REHABILITATE AND STRENGTHEN THE RESILIENCE OF LAKE CHAD BASIN SYSTEMS (PRESIBALT) RDGC/PGCL DEPARTMENTS July 2018 Public Disclosure Public Authorized REQUEST FOR THE BANK AS EXECUTING AGENCY FOR THE GLOBAL ENVIRONMENT FACILITY (GEF) TO PROVIDE ADDITIONAL FINANCING IN THE PROGRAMME TO REHABILITATE AND STRENGTHEN THE RESILIENCE OF LAKE CHAD BASIN SYSTEMS (PRESIBALT) Management hereby submits the following request to approve a GEF financing of USD 20.3 million as co-financing in the Programme to Rehabilitate and Strengthen the Resilience of Lake Chad Basin Systems (PRESIBALT). 1. INTRODUCTION The fragility that characterizes the Lake Chad Basin stems from complex problems relating to intertwined environmental, security, social, economic, humanitarian and political issues. Food insecurity, natural resource degradation and a difficult humanitarian situation are being exacerbated by a changing climate. The scale of the problem requires a regional approach, including the improvement of socio-ecological systems. Within this context, the Bank proposed the Program to rehabilitate and strengthen the resilience of Lake Chad Basin systems (PRESIBALT), which is consistent with the Five-Year Investment Plan (2013-2017) of the Lake Chad Basin Commission (LCBC) and is geared towards enhancing the resilience of vulnerable populations in Cameroon, Niger, Nigeria, Central African Republic (CAR) and Chad, who depend on the basin’s natural resources. The Lake’s surface area remains well below its “normal” level of 25,000 km² in the 1960s which is putting livelihoods at risk. This is further compounded by wind and water erosion, desertification, shrinking pastures, poorly valued production and inadequate governance of natural resources. The extreme vulnerability of the basin ecosystems and of communities requires development efforts to centre on rehabilitating the productive capacities of ecosystems; strengthening resilience in vulnerable segments of the population, especially women and youth; developing value chains; and establishing stronger regional cooperation. PRESIBALT was approved by the AfDB Board in January 2015. The total program cost stands at UA 71.23 million, of which UA 53.82 million is from ADF resources. PRESIBALT will be implemented over five years and is comprised of three components: (i) Preservation and development of water resources; (ii) Development of ecological services and value chains; and (iii) Institution capacity building and programme management. In May 2012, the GEF approved USD 20,313,084 for the Lake Chad Basin Regional Program for the Conservation and Sustainable Use of Natural Resources and Energy Efficiency (LCB-NREE), coming in as additional financing to AfDB investment in PRESIBALT. Since the Bank is acting as GEF executing agency, the GEF investment is subject to the approval by AfDB Board of Directors, and satisfactory legal documentation. This proposal has been processed in accordance with the Memorandum of Understanding (ADB/BD/WP/2004/130 and ADF/BD/WP/2004/164) signed between the Bank and the Secretariat of the GEF which allows the AfDB Group to acquire the status of an implementing agency. 2. RATIONALE FOR GEF FINANCING With its underlying aims to ensure integrated management of water resources, preserve the basin’s productive and ecological functions, and improve food security and livelihoods, the GEF program is fully aligned with the LCBC Investment Plan and the GEF 2020 Vision. Together, AfDB and GEF support will work to improve and sustain regional and national governance of the Lake Chad basin, integrated water 1 resources management, institutional strengthening, monitoring and data, and livelihood interventions which reduce pressure on basin resources and ecosystems. Specifically, the GEF financed program will build on the PRESIBALT and address additional enabling conditions for the collective management of the Lake Chad transboundary water system and actions towards the sustainable and integrated management of basin natural resources. As a program, interventions have been elaborated into six “child” projects submitted to the GEF, one regional and five national projects. The five projects at national level are primarily focused on reducing and reversing land degradation and deforestation, conserving basin biodiversity, and promoting renewable and low carbon energy alternatives that reduce pressure on ecosystems. Activities are in line with the GEF focal areas of Land Degradation, Biodiversity, Climate Change and Sustainable Forest Management. In addition, the regional project, which falls fully under the GEF International Waters strategy, is based on improving basin-wide governance and sustainability of basin ecosystem services, and promoting cooperation of this transboundary lake. The AfDB has been accredited as a GEF implementing agency since 2007 as per its Memorandum of Understanding and has mobilized a total of USD 315 million GEF funding as of November 2017 and around USD 2.8 billion in co-financing. The financial arrangements will follow the Financial Procedures Agreement terms signed between the AfDB and the Trustee of the GEF Trust Fund, the International Bank for Reconstruction and Development, which governs the arrangements for the administration, commitment and disbursement of all GEF resources allocated to each project. Below is the Financing Plan for the PRESIBALT, with inclusion of the GEF funds: Table 1: PRSEIBALT financing plan SOURCE (UA Million) (CFAF Million) DEV ML Total DEV ML Total % ADF 32.00 21.82 53.82 24,165.99 16,480.49 40,646.48 75.6 GEF 8.22 5.46 13.68 6,209.04 4,122.51 10,331.55 19.2 UNESCO 0.13 0.10 0.23 94.79 78.94 173.73 0.3 LCBC 0.06 0.05 0.11 45.47 38.33 83.80 0.2 Cameroon 0.51 0.37 0.88 385.59 277.66 663.25 1.2 Niger 0.14 0.10 0.24 105.35 75.90 181.26 0.3 Nigeria 1.02 0.74 1.76 773.52 556.75 1,330.27 2.5 Chad 0.22 0.15 0.37 162.39 116.76 279.15 0.5 CAR 0.08 0.06 0.14 61.83 43.90 105.73 0.2 TOTAL 42.38 28.85 71.23 32,003.97 21,791.25 53,795.22 100.0 2 Table 2: Summary of Cost Estimates by Expenditure Category (GEF funding) Total Chad Niger Cameroon Nigeria CAR LCBC EXPENDITURE CATEGORY $ '000 $ '000 $ '000 $ '000 $ '000 $ '000 $ '000 I. Investment Costs A. WORKS 8,392 1,260 1,620 729 2,040 1,260 1,482 B. GOODS Vehicles 85 11 14 6 17 11 26 Equipment 1,444 182 234 105 294 182 447 Subtotal 1,529 193 248 111 312 193 473 C. SERVICES - Trainings 272 34 44 20 55 34 84 Technical assistance 151 19 24 11 31 19 47 Contractual services 6,405 603 775 349 976 603 3,098 Audit 47 6 8 3 10 6 15 Subtotal 6,875 662 852 383 1,072 662 3,243 Total Investment Costs 16,797 2,115 2,720 1,224 3,425 2,115 5,199 II. Recurrent Costs A. PERSONNEL Contractual staff 28 4 5 2 6 4 9 Monthly allowances 1,269 160 205 92 259 160 393 Subtotal 1,297 163 210 94 264 163 401 B. TRAVEL ALLOWANCES 15 2 2 1 3 2 5 C. MAINT. OPERATION. & REPAIRS Vehicles 13 2 2 1 3 2 4 Equipment 1 0 0 0 0 0 0 Subtotal 14 2 2 1 3 2 4 D. OVERHEADS 33 4 5 2 7 4 10 Total Recurrent Costs 1,359 171 220 99 277 171 421 Total Base cost 18,156 2,286 2,940 1,323 3,702 2,286 5,619 Physical Contingencies 1,041 131 169 76 212 131 322 Price Contingencies 1,116 141 181 81 228 141 345 Total Programme cost 20,313 2,558 3,289 1,480 4,141 2,558 6,287 3. RECOMMENDATION It is recommended that the Boards of Directors approve the proposed financings mobilized by the Bank on its capacity as a GEF executing agency, namely: (i) for Cameroon: a grant equivalent to USD 1,479,952; (ii) for Niger: a grant of USD 3,288,782; (iii) for Nigeria: a grant of USD 4,141,429; (iv) for CAR: a grant of USD 2,557,942; (v) for Chad: a grant of USD 2,557,942 and (vi) for the LCBC (regional): a grant of USD 6,287,037; to finance PRESIBALT, subject to the conditions stipulated in this report. 3 APPENDIX 1: GEF CEO Endorsement Letters I II III IV V VI VII VIII .
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