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Document of The World Bank Public Disclosure Authorized Report No: 17437-ZIM PROJECT APPRAISAL DOCUMENT ON A PROPOSED CREDIT Public Disclosure Authorized IN THE AMOUNT OF SDR 46.3 MILLION AND A GEF TRUST FUND GRANT IN THE AMOUNT OF SDR 3.7 MILLION TO THE REPUBLIC OF ZIMBABWE Public Disclosure Authorized FORA PARK REHABILITATION AND CONSERVATION PROJECT APRIL 30, 1998 Public Disclosure Authorized Transport Operations Eastern and Southem Africa Africa Region CURRENCY EQUIVALENTS (Exchange Rate Effective April 9, 1998) Currency Unit = Zimbabwe Dollar (Z$) Z$1.00 = US$.0619 US$1.00= Z$16.15 FISCAL YEAR January 1 to December 31 (FY98 is transition year: July 1, 1997-December 31, 1998) ABBREVIATIONS AND ACRONYMS CAS = Country Assistance Strategy CAMPFIRE = Communal Areas Management Programme for Indigenous Resources CBA = Cost-Benefit Analysis CIDA = Canadian International Development Agency CITES = Convention on the International Trade of Endangered Species COP = Conference of the Parties to the Convention on Biological Diversity DNPWLM = Department of National Parks and Wild Life Management EA = Environmental Analysis ERR = Economic Rate of Return GEF = Global Environment Facility GNP = Gonarezhou National Park GRZ = Government of the Republic of Zimbabwe IC = Incremental Cost ICB = International Competitive Bidding IDA = International Development Association GFC = International Finance Corporation IUCN = International Union for Conservation of Nature MOF = Ministry of Finance MMET = Ministry of Mines, Environment and Tourism MPCNH = Ministry of Public construction and National NCB = National Competitive Bidding NORAD = Norwegian Agency for International Development NGO = Non-Governmental Organization NPV = Net Present Value NSB = Net Social Benefit PIP = Project Implementation Plan PPA = Project Preparation Advance PSC = Public Service Commission SA = Special Account SOE = Statement of Expenditure SBD = Standard Bidding Document SWR = Shadow Wage Rate TCA = Transfrontier Conservation Area TOR = Terms of Reference QCBS = Quality-Cost-Based Selection Vice President: Callisto E. Madavo Country Director: Barbara Kafka Sector Manager: Yusupha Crookes Task Manager: Imogene Jensen Zimbabwe Park Rehabilitationand ConservationProject CONTENTS A. Project DevelopmentObjective 2 1. Project developmentobjective and key performanceindicators 2 B. Strategic Context 2 1. Sector-relatedCAS goal supportedby the project 2 2. Main sector issues and Governmentstrategy 3 3. Sector issues to be addressedby the project and strategic choices 4 C. Project Descripticn Summary 4 1. Project cormponents 4 2. Key policy and institutionalreforms supported by the project 6 3. Benefits and target population 6 4. Institutionaland implementationarrangements 7 D. Project Rationale 7 1. Project alte:rnativesconsidered and reasons for rejection 7 2. Major related projects financedby the Bank and/or other developmentagencies 9 3. Lessons learned and reflected in proposed project design 9 4. Indicationsof borrower commitmentand ownership 10 5. Value adde(dof Bank support in this project 10 E. SummaryProject Analyses 10 1. Economic 10 2. Financial 11 3. Technical 15 4. Instituticnal 16 5. Social 17 6. Environmentalassessment 18 7. Participatoryapproach 18 F. Sustainability and Risks 20 1. Sustainability 20 2. Critical risks 20 3. Possiblecontroversial aspects 22 G. Main Credit Conditions 23 1. Effectivenessconditions 23 2. Other 23 H. Readiness for Implementation 23 I. Compliancewith Bank Policies 23 Annexes Annex 1. Project Design Summary 24 Annex 2. DetailedProject Description 27 Annex 3. EstimatedProject Costs 33 Annex 4. Cost-BenefitAnalysis Summary,or 34 Cost-EffectivenessAnalysis Summary Annex 5. Financial Summaryfor Revenue-EarningProject Entities, or 51 Financial Summary Annex 6. Procurementand DisbursementArrangements 64 Table A. Project Costs by ProcurementArrangements 66 Table B. Thresholdsfor ProcurementMethods and Prior Review 67 Table C1. Allocationof Credit Proceeds 67 Table C2. Allocationof GEF Grant Proceeds 68 Annex 7 EnvironmentalAnalysis 69 Annex 8. Project ProcessingBudget and Schedule 72 Annex 9. Documents in Project File 73 Annex 10. Statementof Loans and Credits 74 Annex 11. Country at a Glance 76 Annex 12. Letter of Sector DevelopmentPolicy 78 Annex 13. Park and Wild Life ConservationFund Constitution 87 Maps: (i) Location of National Parks IBRDNo. 29269 (ii) South East Lowveld IBRD No. 29301 ProjectAppraisal Document PageI Zimbabwe:Park Rehabilitation and ConseeNation Project INTERNATIONALBANK FOR RECONSTRUCTIONAND DEVELOPMENT INTERNATIONALDEVELOPMENT ASSOCIATION Africa Regional Office AFC03 Project Appraisal Document Date: April 30, 1998 Task Team Leader/Task Manager: Imogene Jensen Country Manager/Director: Barbara Kafka Sector Manager/Director:Yusupha Crookes ProjectID:ZW-PA-3318 Sector: Environment Program Objective Category: EnvironmentallySustainable Development GEF Supplement ID: ZW..GE-3261 Focal Area: Biodiversity Lending Instrument: SpecificInvestment Credit and GEF Program of TargetedIntervention: [ Yes [X] No Grant Y ProjectFinancing Data []Loan [X] Credit [ Guarantee [[X ] Grant [] Other [Specify] For Loans/Credits/Others: Amount(US$m/SDRm): $62.5 million/SDR46.3 million Proposed terms: [X] Multicurrency [] Single currency, specify Grace period (years): 10 [O StandardVariable [ Fixed [ LIBOR-based Years to maturity: 35 Commitmentfee:: 0 Service charge: 0.75% Financing plan (US$75.0 m): Source Local Foreign Total Government 7.5 0 7.5 IDA 24.7 37.8 62.5 GEF 2.7 2.3 5.0 Total 34.9 40.1 75.0 Borrower: Republic of Zimbabwve Recipient: Republic of Zimbabwe Guarantor:N/A Responsible agency(ies): Ministry of Mines, Environment and Tourism,Department of National Parks and Wild Life Management Estimated disbursements (Bank FY/US$M): 1999 2000 2001 2002 2003 2004 2005 Annual 2.5 13.1 13.5 12.0 11.2 6.2 4.0 Cumulative 2.5 15.6 29.1 41.1 52.3 58.5 62.5 EstimatedGEF disbursements(B3ank FY/US$M) Annual 1.0 1.5 1.0 0.5 0.5 0.5 Cumulative 1.0 2.5 3.5 4.0 4.5 5.0 Project Implementationperiod: 6.5 years Expected effectivenessdate: 10/01/98 Expected closing date: 09/30/05 Project Appraisal Document Page2 Zimbabwe: Park Rehabilitation and Conservation Project A: Project Development Objective 1. Project developmentobjective and key performanceindicators (see Annex 1): The basic objective of the project is to enhance the Governmentof the Republic of Zimbabwe's (GRZ) ability to protect wildlife populationsand their habitats and to develop the parks and wildlife sector, by rehabilitating or improving essential elements of infrastructure, and by strengthening the institutional capacity of the agencies responsible for ensuring the sustainabilityof investments and for formulating policy and implementingwildlife programs. The global environmentalobjective is to improve biodiversityconservation in GonarezhouNational Park and nearby SouthEast Lowveldareas. Key features of biodiversityconservation and managementwill be protection of adequate range for mobile wildlife populations in this semi-arid and periodicallydrought- prone region, protection of vegetation from destruction by fire and other human-caused impacts, protection of water resources,re-establishment of migration corridors,protection of wildlife from illegal killing, and minimizationof conflict between wildlife and agricultureor other land uses outside the park. B: Strategic Context 1. Sector-relatedCountry Assistance Strategy (CAS)goal supported by the project (seeAnnex 1): GASdocument number: 16541 - ZIM Date of latest CAS discussion: May 27, 1997 The primary development objective identified in the Bank's Zimbabwe Country Assistance Strategy (CAS) is to raise per capita income and reduce poverty. The CAS focuses on four elements to accomplish this objective: (1) macroeconomic reform; (2) rural development and natural resource management;(3) privatesector development;and (4) developmentof human capital. The CAS notes that this project will be a key operationfor one of the three major componentsof the rural developmentand natural resources management element, namely, the component directed at reducing vulnerability to drought and ensuring that economic development in rural areas is environmentallysound. This project will contribute to this componentby seeking to ensure that the infrastructureof parks and related eco- tourism resources are sustainably managed to the benefit of neighboring rural communities, thereby enhancingthe managementof wildlife, forestry and other natural resources. Elements of a coherent rural development strategy are addressed by the Rural District Council Pilot Capital Development Project (Credit No. N-0190-ZIM), the proposed Community Action Project and the proposed Agriculture Services ManagementProject. As the third highest foreign currency earner, behind agricultureand mining, tourism is important to the Zimbabweaneconomy. Since independencein 1980, the number of visitors to Zimbabwe has increased an average of about 10% per year through the 1980s and 23% per year through the 1990s. In 1996, 1.4 million visitors spent nearly US$150 million in Zimbabwe. Estimates have placed the contribution of tourism to GDP in the order of 3%, with estimates of current employmentin tourism ranging from 20,000 to 37,000 (see Annex 4). Most of this tourism is wildlife-based(the number of registeredtour and safari operators, guidesand huntersapproximately tripled from 1985to 1992). The entireNational Parks Estate comprises approximately 13% of Zimbabwe's land area, with national parks
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