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The World Bank Document of The World Bank Report No: GEF PROJECT BRIEF ON A PROPOSED GRANT FROM THE GLOBAL ENVIRONMENT FACILITY TRUST FUND IN THE AMOUNT OF USD 7.18 MILLION TO THE FEDERATIVE REPUBLIC OF BRAZIL FOR THE INTEGRATED MANAGEMENT OF AQUATIC RESOURCES IN THE BRAZILIAN AMAZON PROJECT (AQUABIO) April 18, 2005 CURRENCY EQUIVALENTS (Exchange Rate Effective December 13, 2004) Currency Unit = Real (R$) R$2.75 US$1.00 FISCAL YEAR January 1 – December 31 ABBREVIATIONS AND ACRONYMS ACTO Amazon Cooperation Treaty Organization AM State of Amazonas AMA Monitoring and Analysis Project (under the Rain Forest Program) ANA National Water Agency APA Environmental Protection Area APNA Novo Airão Fishers Association APPs Permanent Preservation Areas ARPA Amazon Region Protected Areas Project AquaBio Integrated Management of Aquatic Resources in the Brazilian Amazon Project BRAMAB II Brazilian Biosphere Reserves Consolidation II Project CAS World Bank Country Assistance Strategy CBD Convention on Biological Diversity CEPNOR Fishing Research and Management Center for the Northern Region – IBAMA CONABIO National Biodiversity Commission CNPM National Center of Satellite Monitoring Research – EMBRAPA DCBIO National of Biodiversity Conservation Program Directorate– MMA DIFLOR Forestry Directorate – MMA ELETRONORTE Northern Brazil Electric Energy Utility Company EMPAER Rural Extension and Research Company of Mato Grosso FAO UN Food and Agriculture Organization FASE Association of Organizations for Social and Educational Assistance FEMA State Environmental Foundation of Mato Grosso FVA Vitória Amazônica Foundation GEF BA Integrated and Sustainable Management of Transboundary Water Resources in the Amazon River Basin Project (GEF/UNEP ACTO Amazon project) GIBRAH Integrated Management Approach to the Conservation and Sustainable Use of Freshwater Biodiversity GOB Government of Brazil GTA Amazon Work Group (Association of Amazon NGOs) IABIN Inter-American Biodiversity Information Network IBAMA Brazilian Institute for the Environment and Renewable Natural Resources INPA Amazon National Research Institute IPAM Environmental Research Institute IPÊ Ecological Research Institute ISA Socio-Environmental Institute KFW German Development Bank MCT Ministry of Science and Technology MDA Ministry of Agrarian Development MMA Ministry of Environment M&E Monitoring and Evaluation System MT State of Mato Grosso MOU Memorandum of Understanding NEP II Brazil Second National Environmental Project (WB Loan 4524-BR) NGO Non-Governmental Organizations NBP National Biodiversity Policy NFP National Forest Program OAS Organization of American States OEMA State Environmental Agencies ONGARA Environmental Organization for the “Roncador Araguaia” Area PA State of Pará PAG Action Programs for GIBRAH PD/A Type A Demonstration Projects (under the Rain Forest Program) PDO Project Development Objective PEPE State Program of Strategic Preservation of Riparian Forests in the State of Mato Grosso PIX Xingu Indigenous Park PMU Project Management Unit POA Annual Operational Plan PPA Multi-Year Plan of the Brazilian Government PPDS-JUS Community Plan for the Sustainable Development of the Area Downstream from the UHE Tucuruí Dam PPG7 (or Rain Pilot Program to Conserve the Brazilian Rain Forest Forest Program) PROAMBIENTE Socio-Environmental Development Program for Smallholder Agriculture PROBIO National Biodiversity Project ProManejo Forest Resources Management Project (under the Rain Forest Program) PRONABIO National Biodiversity Program ProVárzea Brazil Amazon Floodplain Natural Resources Management Project RFT Rain Forest Trust Fund SBF MMA's Secretariat of Biodiversity and Forests – MMA SCA Coordinating Secretariat for the Amazon – MMA SDS Amazon State Secretariat of the Environment and Sustainable Development SEAIN Secretariat for International Affairs - MP SIBA Freshwater Biodiversity Information System SIG Geographic Information System SIGMA Environmental Administration Information System (MIS used by MMA) SIPAM Amazon Protection System SIVAM Amazon Surveillance System SNUC National System of Conservation Units SPRN Natural Resources Policy Project (under the Rain Forest Program) UC Conservation Unit or Protected Area UFAM Federal University of Amazonas UFPA Federal University of Pará UNEMAT State University of Mato Grosso UNESCO United Nations Educational, Scientific, and Cultural Organization UNFIP The United Nations Fund for International Partnerships Vice President: Pamela Cox Country Manager/Director: Vinod Thomas Sector Manager: Abel Mejia Task Team Leader: Maria Isabel Junqueira Braga BRAZIL Integrated Management of Aquatic Resources in the Amazon Region - AquaBio CONTENTS Page A. STRATEGIC CONTEXT AND RATIONALE ................................................................. 7 1. Country and sector issues....................................................................................................7 2. Rationale for Bank involvement ......................................................................................... 9 3. Higher level objectives to which the project contributes.................................................. 10 B. PROJECT DESCRIPTION ............................................................................................... 11 1. Lending instrument ........................................................................................................... 11 2. Project development objective and key indicators............................................................ 11 3. Project components........................................................................................................... 11 4. Lessons learned and reflected in the project design.......................................................... 13 5. Alternatives considered and reasons for rejection ............................................................ 13 C. IMPLEMENTATION ........................................................................................................ 14 1. Partnership arrangements.................................................................................................. 14 2. Institutional and implementation arrangements................................................................ 15 3. Monitoring and evaluation of outcomes/results................................................................ 16 4. Sustainability and Replicability ........................................................................................ 17 5. Critical risks and possible controversial aspects............................................................... 18 6. Loan/credit conditions and covenants............................................................................... 19 D. APPRAISAL SUMMARY ................................................................................................. 20 1. Economic and financial analyses...................................................................................... 20 2. Technical........................................................................................................................... 21 3. Fiduciary ........................................................................................................................... 21 4. Social................................................................................................................................. 21 5. Environment...................................................................................................................... 24 6. Safeguard policies............................................................................................................. 24 7. Policy Exceptions and Readiness...................................................................................... 25 Annex 1: Country and Sector Background .............................................................................. 26 Annex 2: Major Related Projects Financed by the Bank and/or other Agencies ................. 30 Annex 3: Results Framework and Monitoring ........................................................................ 31 Annex 4: Detailed Project Description...................................................................................... 40 Annex 5: Project Costs ............................................................................................................... 53 Annex 6: Implementation Arrangements ................................................................................. 56 Annex 7: Economic and Financial Analysis ............................................................................. 64 Annex 8: Safeguard Policy Issues.............................................................................................. 65 Annex 9: Documents in the Project File ................................................................................... 66 Annex 10: Incremental Cost Analysis....................................................................................... 75 Annex 11: STAP Roster Review ................................................................................................ 87 Annex 12: Maps of the Project Area......................................................................................... 90 A. STRATEGIC CONTEXT AND RATIONALE 1. Country and sector issues Sector issues The Amazon basin covers an area of approximately 7,000,000 km2, of which about 58% (4,100,000 km2) is located in Brazil. From a biodiversity perspective, the Amazon basin is unequalled; it is home to the world’s
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