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Project Summary……………………………………………………………………………...Iv Results Based Logical Framework…………………….……………………………………...Vi Project Time Frame………………………………………………………………………….Viii

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Project Summary……………………………………………………………………………...Iv Results Based Logical Framework…………………….……………………………………...Vi Project Time Frame………………………………………………………………………….Viii AFRICAN DEVELOPMENT BANK GROUP TANZANIA/MALAWI: STRENGTHENING TRANSBOUNDARY COOPERATION AND INTEGRATED NATURAL RESOURCES MANAGEMENT IN THE SONGWE RIVER BASIN RDGS/AHWS/PGCL May 2019 TABLE OF CONTENTS Currency Equivalents…………………………………………………………….…………….i Acronyms and Abbreviations………………………………………………………………….ii Loan Information…………………………………..…………………………………………iii Project Summary……………………………………………………………………………...iv Results Based Logical Framework…………………….……………………………………...vi Project Time Frame………………………………………………………………………….viii 1. STRATEGIC THRUST & RATIONALE .......................................................................... 8 1.1. Project linkages with country strategy and objectives ................................................ 8 1.2. Rationale for Bank’s involvement............................................................................... 9 1.3. Donors coordination .................................................................................................... 4 2. PROJECT DESCRIPTION ................................................................................................ 6 2.1. Project Description ...................................................................................................... 6 2.2. Technical solution retained and other alternatives explored ..................................... 13 2.3. Project type .................................................................................................................. 7 2.4. Project cost and financing arrangements ..................................................................... 7 2.5. Project’s target area and population ............................................................................ 9 2.6. Participatory process for project identification, design and implementation ............ 10 2.7. Bank Group experience, lessons reflected in project design ..................................... 17 2.8. Key performance indicators ...................................................................................... 11 3. PROJECT FEASIBILITY ................................................................................................ 12 3.1. Economic and financial performance ........................................................................ 12 3.2. Environmental and Social impacts ............................................................................ 12 4. IMPLEMENTATION ...................................................................................................... 20 4.1. Implementation arrangements ................................................................................... 14 4.2. Implementation Schedule .......................................................................................... 15 4.3. Financial Management and Disbursement Arrangements ........................................ 15 4.4. Procurement Assessment........................................................................................... 16 4.5. Monitoring ................................................................................................................. 16 4.6. Governance................................................................................................................ 18 4.7. Sustainability ............................................................................................................. 18 4.8. Risk management ...................................................................................................... 19 4.9. Knowledge building .................................................................................................. 20 5. LEGAL INSTRUMENTS AND AUTHORITY .............................................................. 20 5.1. Legal instrument ........................................................................................................ 20 5.2. Conditions associated with Bank’s intervention ....................................................... 21 5.3. Compliance with Bank Policies ................................................................................ 21 6. RECOMMENDATION .................................................................................................... 22 Appendix I. Country’s comparative socio-economic indicators.............................................. 22 Appendix II. Table of ADB’s portfolio in Tanzania and Malawi ............................................ 24 Appendix III. Key related projects financed by the Bank and other development partners ..... V Appendix IV. Map of the Project Area .................................................................................... 26 Currency Equivalents1 August, 2018 [1 GBP] = [1.316308747 USD] [1 EURO] = [1.173600321 USD] Fiscal Year [Fiscal year beginning – end] Weights and Measures 1metric tonne = 2204 pounds (lbs) 1 kilogramme (kg) = 2.200 lbs 1 metre (m) = 3.28 feet (ft) 1 millimetre (mm) = 0.03937 inch (“) 1 kilometre (km) = 0.62 mile 1 hectare (ha) = 2.471 acres 1 https://www.afdb.org/en/documents/document/august-2018-exchange-rate-103265/ i Acronyms and Abbreviations PS Borrower’s Procurement System CPAR Country Procurement Assessment Report CSP Country Strategy Paper DDIPP Detailed Design and Investment Preparation Phase DPG Water Development Partner Group for the water sector ESMF Environmental and Social Management Framework FEWS Flood Early Warning System GAP Gender Action Plan CAG Controller Auditor General (Tanzania)_ GEF Global Environmental Facility GEF CEO CEO of the Global Environmental Facility HPP Hydropower plant INRM Integrated Natural Resource Management IPCC Intergovernmental Panel on Climate Change IUCN International Union for Conservation of Nature IS-SRBC Interim secretariat of the Songwe River Basin Commission IW International Waters JTE Joint team of Experts LCBC Lake Chad Basin Commission M&E Monitoring and Evaluation MoFP Ministry of Finance and Planning MIS Management Information System MSL Mean Sea Level NEPAD New Partnership for Africa’s Development O&M Operation and Management PIF Project Identification Form PME Participatory monitoring and evaluation PMU Project Management Unit PPRA Public Procurement Regulatory Authority PPPD Public Procurement Policy Division PSPTB Procurement and Supplies Professionals and Technicians Board PMU Procurement Management Units PPAA Public Procurement Appeals Authority RBMP River basin management plan RMC Regional Member Country RTC Real time control SADC Southern African Development Community SLM Sustainable Land Management SBD Standard Bidding Documents SoB State of the Basin STAP Scientific and Technical Advisory Panel of the GEF SRBC Songwe River Basin Commission SRBDP Songwe River Basin Development Program S- SRBC Secretariat of the Songwe River Basin Commission STCINRM Strengthening transboundary cooperation and integrated natural resource management in the Songwe River Basin SWAp Sector Wide Approach TDA/SAP Transboundary Diagnostic Analysis/ Strategic Action Planning UNCITRAL United Nations Commission on International Trade Law model. ii Grant Information Client’s information RECEIPIENT: Republic of Malawi & United Republic of Tanzania EXECUTING AGENCY: Songwe River Basin Commission Financing plan Amount Agency Currency Amount Remarks [USD] GEF Trust Fund USD 6,392,694 6,392,694 Grant Government of Malawi USD 1,000,000 1,000,000 Grant Government of Tanzania USD 1,000,000 1,000,000 Grant Climate Resilient Grant (In Kind Infrastructure Development GBP 200,000 263,262 Contribution) Facility (CRIDF), Stockholm International Grant (In Kind Euro 100,000 117,360 Water Institute (SIWI) Contribution) Loan (to be African Development Bank USD 8,650,000 8,650,000 approved in 2019) Total 17,423,316 Exchange rate August 20182 ADB’s key financing information Loan / grant currency (USD) Interest type* Not applicable Interest rate spread* Not applicable Commitment fee* Not applicable Other fees* Not Applicable Tenor Not applicable Grace period Not applicable FIRR, NPV (base case) Not applicable EIRR (base case) Not applicable *if applicable Timeframe - Main Milestones (expected) GEF PIF approval September 2016 Project approval (GEF IW financing) May, 2019 Signing of Grant Agreement (GEF IW financing) May, 2019 Effectiveness (GEF IW financing) June, 2019 Mid-term Review (GEF IW financing) June, 2020 Completion date (GEF financing) March 2023 Closing date June, 2023 2 https://www.afdb.org/en/documents/document/august-2018-exchange-rate-103265/ iii Project Summary 1 Project Overview. The Songwe River Basin (SRB) covers an estimated area of 4,200 km2 and is part of the wider Zambezi River basin. The river forms part of the formal border between Malawi and mainland Tanzania. Increasing competition for space, water and natural resources is degrading the Songwe River Basin. Both riparian countries ratified in 2017 the convention creating the Songwe River Basin Commission (SRBC) to sustainably manage the basin natural resources and implement the Songwe River Basin Development Programme (SRBDP). The ‘Strengthening transboundary cooperation and integrated natural resource management in the Songwe River Basin’ (STCINRM project is critical to prepare the ground for the implementation of the ambitious SRBDP by addressing the problem of environmental degradation. (The heart of the SRBDP is a multipurpose dam (115 m high, 330 Mm3) which will supply water for a 180 MW hydropower plant, 3000 ha of irrigation scheme in each country and control floods in the lower part of the basin. It will also provide water for 86 000 dwellers. Details of
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