1 Fao/Global Environment Facility Project Document
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FAO/GLOBAL ENVIRONMENT FACILITY PROJECT DOCUMENT Project title: Reducing vulnerability and increasing adaptive capacity to respond to impacts of climate change and variability for sustainable livelihoods in agriculture sector in Nepal Project Symbol: GCP/NEP/071/LDF Recipient Country: Nepal Resource Partner: Global Environment Facility (GEF) FAO Project ID: 616181 GEF Project ID: 5111 Government/other counterparts: Ministry of Agricultural Development (MOAD), Department of Agriculture (DOA), Department of Livestock Services (DLS), Nepal Agricultural Research Council (NARC) and Department of Hydrology and Meteorology (DHM) Expected OED (Starting Date): January 2015 Expected NTE (End date): December 2018 Contribution to FAO’s Strategic objective/Organizational Result: SO2: Increase and improve Strategic Framework: provision of goods and services from agriculture, forestry and fisheries in a sustainable manner. Organizational Outcomes 1 (output 1.1 and 1.2) Country Programming Framework Outcome: 4.3 (CLIMATE CHANGE): Institutional and technical capacities for adaptation to climate change in agriculture strengthened and adaptive capacity of vulnerable communities enhanced. GEF Focal Area/LDCF/SCCF: Least Developed Country Fund GEF/LDCF/SCCF Strategic Objectives: CCA1: Reducing vulnerability – Reduce vulnerability to the adverse impacts of climate change, including variability, at local, national, regional and global level CCA2: Increasing Adaptive Capacity: Increase adaptive capacity to respond to the impacts of climate change, including variability, at local, national, regional and global level CCA3: Adaptation Technology Transfer: Promote transfer and adoption of adaptation technology Environment impact assessment Category: A B C √ Financing Plan: GEF/LDCF/SCCF allocation USD 2,689,498 Co-financing FAO/UTF USD 8,620,000 FAO/MTF USD 1,170,000 Government USD 3,200,000 Sub-total Co-Financing: USD 12,990,000 1 EXECUTIVE SUMMARY Nepal is one of the most vulnerable countries to climate change impacts. Climate and its variability is already affecting Nepal’s agriculture sector. The climate related hazards like floods, drought, hailstorms, heat and cold waves; and pests and diseases, soil erosion, deforestation, desertification are recurring and pose severe threats to the sector. The poor and marginalized groups of people residing in the rural areas are usually hit hardest by the consequences of climate change and increasing frequency of natural hazards. Increasing trends of extreme climate events and natural disasters due to climate change could undermine future food security. Although the Government of Nepal has constantly responded to climate risks, a renewed focus on reducing vulnerability and increasing adaptive capacity to respond to impacts of climate change and variability is crucially needed to save agricultural livelihoods. In response to the request from the Government of Nepal, FAO has prepared the proposal aimed at strengthening institutional and technical capacities for reducing vulnerability and promoting climate- resilient practices, strategies and plans for effectively responding to the impacts of climate change and variability in agriculture sector. The project components include: (1) Strengthening of technical and institutional capacities and integrating adaptation into food and agriculture policies, strategies and plans; (2) Assessment, monitoring and providing advance early warning information on vulnerabilities,risks of climate change and agrometeorological forecasts to assist better adaptation planning; (3) Improving awareness, knowledge and communication on climate impacts and adaptation; (4) Prioritizing and implementing local investment for strengthened livelihoods and sources of income and transfer of relevant adaptation technology for reducing climate risks in agriculture. The LDCF project focuses four districts in two development regions: Eastern Development Region (Udayapur and Siraha) and Western Development Region (Argakhanchi and Kapilbastu). In general, the focus districts represent two eco-regions - mid-hills (Udayapur and Argakhanchi) and terai (Siraha, Kapilbastu). The project will employ a participatory learning and doing approach through farmer field schools at the local level to reduce the vulnerability and promote adaptive capacity to effectively respond to climate change impacts. The direct beneficiaries of the project are 120 farmer groups (~3000 farmers) in 24 selected Village Development Committees (VDC). The national level staff of MOAD, Department of Agriculture (DOA) and Department of Livestock Services (DLS) and district staff from DOA, DLS, Local Development, Department of Irrigation and Non-governmental Organizations (NGO)/Community Based Organizations (CBO) is the second level of beneficiaries through capacity development programmes. The project contributes to national priorities under National Adaptation Programme of Action (NAPA), National Agriculture Sector Development Priority (NASDP) and the Priority Framework of Action (2011 – 2020) (PFA) on Climate Change Adaptation and Disaster Risk Management of the Ministry of Agricultural Development (MOAD) and recently developed Agriculture Development Strategy (ADS) 2013. The project focuses the key elements of GEF LDCF objective CCA-1 on reducing vulnerability to adverse impacts of climate change and objective CCA-2 on increasing adaptive capacity to respond to the impacts of climate change and CCA-3 on adaptation technology transfer. The project is consistent with GEF Agency’s (FAO) Strategic Objective 2 (SO2): Increase and improve provision of goods and services from agriculture, forestry and fisheries in a sustainable manner, and Country Programming Framework (CPF) Outcome: 4.3 (climate change): Institutional and technical capacities for adaptation to climate change in agriculture strengthened and adaptive capacity of vulnerable communities enhanced. The project will be implemented for a period of 48 months (4 years) with a total budget of USD 15,679,498 of which USD 2,689,498 with GEF LDCF resources. 2 TABLE OF CONTENTS SECTION 1. RELEVANCE (STRATEGIC FIT AND RESULTS ORIENTATION) ...... 5 1.1 GENERAL CONTEXT .................................................................................................... 5 1.1.1 Rationale .................................................................................................................. 19 1.1.2 FAO’s comparative advantage ............................................................................ 2524 1.1.3 Participants and other stakeholders ..................................................................... 2625 1.1.4 Lessons learned from past and related work including evaluations .................... 3029 1.1.5 Links to national development goals, strategies, plans, policy and legislation, GEF/LDCF/SCCF and FAO’s Strategic Objectives .................................................... 3231 SECTION 2 – PROJECT FRAMEWORK AND EXPECTED RESULTS .................. 3534 2.1 PROJECT STRATEGY ............................................................................................. 3534 2.2 PROJECT OBJECTIVES .......................................................................................... 3534 2.3 EXPECTED PROJECT OUTCOMES....................................................................... 3534 2.4 PROJECT COMPONENTS AND OUTPUTS .......................................................... 3534 2.5 ADAPTATION BENEFITS ...................................................................................... 4443 2.6 COST EFFECTIVENESS (ALTERNATIVE STRATEGIES AND METHODOLOGIES CONSIDERED) ............................................................................ 4544 2.7 INNOVATIVENESS ................................................................................................. 4544 SECTION 3 – FEASIBILITY ........................................................................................... 4645 3.1 ENVIRONMENTAL IMPACT ASSESSMENT....................................................... 4645 3.2 RISK MANAGEMENT ............................................................................................. 4847 4.1 INSTITUTIONAL ARRANGEMENTS .................................................................... 4948 4.2 IMPLEMENTATION ARRANGEMENTS .............................................................. 5855 4.3 FINANCIAL PLANNING AND MANAGEMENT ................................................. 6461 4.3.1 Financial plan (by component, outputs and co-financier) ................................... 6461 4.3.2 GEF/LDCF/SCCF inputs .................................................................................... 6461 4.3.3 Government inputs .............................................................................................. 6461 4.4.4. FAO inputs ......................................................................................................... 6462 4.4.5 Other co-financiers inputs ................................................................................... 6562 4.4.6. Financial management of and reporting on GEF/LDCF/SCCF resources ......... 6562 4.4. PROCUREMENT ..................................................................................................... 6663 4.5 MONITORING AND REPORTING ......................................................................... 6664 4.5.1 Oversight and monitoring responsibilities ..................................................... 6764 3 4.5.2. Indicators and information sources ...................................................................