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29835 Public Disclosure Authorized GLOBAL ENVIRONMENTAL FACILITY Philippines and Indonesia Public Disclosure Authorized Marine Aquarium Market Transformation Initiative (MAMTI) Public Disclosure Authorized GEF Project Document January 2004 Public Disclosure Authorized KEY ACRONYMS AND TERMS ACF Asian Conservation Foundation ADB Asian Development Bank AKKII Indonesia Coral Shell and Ornamental Fish Association (Asosiasi Koral, Kerang, dan Ikan Hias Indonesia) BFAR Philippines Bureau of Fisheries and Aquatic Resources BFARMC Barangay Fisheries and Aquatic Resources Management Council BMT Bohol Marine Triangle BSAP Biodiversity Strategy and Action Plan Bupati Head of Regency in Indonesia CAMP Collection Area Management Plan (required by MAC EFM Standard) CAS Country Assistance Strategy CBD Convention of Biological Diversity CCIF Conservation and Community and Investment Forum CFH Collection, Fishing and Holding Standard (MAC Core Standard 2) CI Conservation International CITES Convention on International Trade in Endangered Species of Wild Fauna and Flora COREMAP Coral Reef Rehabilitation and Management Program CRM coastal resource management CRMP Coastal Resources Management Project DENR Philippines Department of Environment and Natural Resources DKP Indonesia Ministry of Marine Affairs and Fisheries (Departemen Kelautan dan Perikanan) EFM Ecosystem and Fishery Management (MAC Core Standard 1) FAO Philippines Fisheries Administrative Order FARMC Philippines Fisheries and Aquatic Resources Management Council FASPO Philippines DENR Foreign-Assisted and Special Projects Office FRMP Philippines Fisheries Resource Management Project GCRMN Global Coral Reef Monitoring Network GEF Global Environment Facility GOI Government of Indonesia HHT Handling, Husbandry and Transport (MAC Core Standard 3) ICRAN International Coral Reef Action Network ICRI International Coral Reef Initiative ICM integrated coastal management ICRM integrated coastal resource management IFC World Bank International Finance Corporation IMA International Marinelife Alliance ITMEMS International Tropical Ecosystem Management Symposium IUCN World Conservation Union IUCN/SSC IUCN Species Survival Commission Kabupaten Indonesia Regency KKP Kabang Kalikasan ng Pilipinas (WWF Philippines) LGU local government unit MAC Marine Aquarium Council MAMTI Marine Aquarium Market Transformation Initiative MAQTRAC Marine Aquarium Trade Coral Reef Monitoring Protocol MAO Municipal Agricultural Officer MFI Micro Finance Institution MMAF Indonesia Ministry of Marine Affairs and Fisheries (DKP) i MPA marine protected area M & E monitoring and evaluation NGO Non-Governmental Organization PAWB Philippines DENR Protected Areas and Wildlife Bureau PCSD Philippines Palawan Council for Sustainable Development PENSA IFC Program for Eastern Indonesia SME Assistance PHKA Indonesia Directorate General of Forest Protection and Nature Conservation (National Park Authority) PTFEA Philippine Tropical Fish Export Association RC Reef Check SME small and medium enterprise TNC The Nature Conservancy UNDP United Nations Development Programme UP-MSI University of the Philippines – Marine Science Institute USAID United States Agency for International Development WRI World Resources Institute WSSD World Summit on Sustainable Development WWF Worldwide Fund for Nature ii PROJECT BRIEF 1. IDENTIFIERS: PROJECT NUMBER: 506049 PROJECT NAME: Marine Aquarium Market Transformation Initiative (MAMTI) DURATION: Five (5) years IMPLEMENTING AGENCY: International Finance Corporation (World Bank) EXECUTING AGENCY: Marine Aquarium Council (MAC) REQUESTING COUNTRY OR COUNTRIES: Philippines, Indonesia ELIGIBILITY: Philippines: CBD Ratification on 8 October 1993 Indonesia: CBD Ratification on 23 August 1994 GEF FOCAL AREA: Biodiversity GEF PROGRAMMING FRAMEWORK: OP2: Coastal, Marine and Freshwater Ecosystems 2. SUMMARY: The Philippines and Indonesia support globally significant marine biodiversity on coral reefs that are being degraded by many factors, including destructive fishing practices used by the marine aquarium trade. Market transformation through international Marine Aquarium Council (MAC) Certification can ensure the marine aquarium industry is sustainable and responsible and create incentives for achieving global benefits of biodiversity conservation, reef management, protected areas and reef restoration - thereby contributing to poverty alleviation, sustainable livelihoods and food security. The MAMTI project will mainstream this transformation by: 1) building the capacity of community stakeholders to develop certified ecosystem management, 2) ensuring there is scientific assessment and monitoring of coral reefs and marine ornamentals stocks for management, 3) establishing no-take zones and reef and stock restoration, 4) building the capacity of marine ornamentals collectors to become certified, 5) increasing the financial resources and business skills for collectors to participate in a sustainable trade, 6) increasing the participation of exporters, importers, and retailers in certification, and 7) raising the awareness of, and demand for, certified marine ornamentals among consumers. 3. COSTS AND FINANCING (MILLION US): Sources of Funds: GEF: Preparation (PDF B): 0.295 Project: 6.620 Sub-Total GEF: 6.915 Co-Financing: Preparation (PDF B): 0.368 Donor/Sponsor Contributions: 6.924 Industry Investment: 8.074 Sub-Total Co-Financing: 15.366 Total Project Cost without Project Preparation: 21.618 Total Project Cost with Project Preparation: 22.281 4. OPERATIONAL FOCAL POINT ENDORSEMENT: Name: Mr. Rafael E. Camat, Jr. Title: Assistant Secretary Organization: Foreign-Assisted and Special Date: 15 December 2003 Projects Office, DENR, Philippines Name: Mr. Effendy A. Sumardja Title: Special Assistant Minister for Intl. Relations iii Organization: Ministry of Envt., Indonesia Date: 10 December 2003 5. IA CONTACT: Sam Keller, IFC Projects Officer Tel. +1 202 473-2891 [email protected] TABLE OF CONTENTS Page 1. PROJECT SUMMARY 1.1 Background 1 1.2 Transforming the Marine Aquarium Market 3 1.3 Barriers to Transforming the Marine Aquarium Market 5 1.4 Rationale 6 1.5 Objectives 8 1.6 Activities and Outputs 8 1.7 Outcomes 16 1.8 Beneficiaries 18 1.9 Indicators 19 1.10 Risk Assessment 21 1.11 MAMTI Management 24 2. COUNTRY OWNERSHIP 2.1 Country Eligibility 27 2.2 Country Drivenness 28 2.3 Country Endorsement 31 3. PROGRAM AND POLICY CONFORMITY 3.1 Conformity with GEF Operational Program 31 3.2 Project Design 32 3.3 Sustainability 33 3.4 Replicability 37 3.5 Stakeholder Involvement 38 3.6 Monitoring and Evaluation 40 4. FINANCING AND COST EFFECTIVENESS 4.1 Project Budget 42 4.2 Monitoring and Evaluation Costs 44 4.3 Co-financing and Leverage 44 4.4 Cost Effectiveness 44 4.5 Alternative Project Approaches Considered 44 5. INSTITUTIONAL COORDINATION AND SUPPORT 5.1 Core Commitments and Linkages 45 iv ANNEXES Page 1. Project Design Log Frame 48 2. Detailed Project Description of Activities 53 3. Detailed Project Timeline 71 4. Detailed Site Project Timeline 73 5. Site Selection Criteria 74 6. Site Capacity Building Module Flow Chart 76 7. Project Budget and Co-Financing 77 8. Project Staffing 82 9. Cost Effectiveness Analysis 86 10. Incremental Cost Analysis 87 11. Stakeholders Involved in Project Design 95 12. Map: Philippines Marine Aquarium Trade and Initial Project Sites 98 13. Map: Indonesia Marine Aquarium Trade Initial Project Sites 99 14. Year 1 Sites: Philippines and Indonesia 100 15. Supporting Documents from the Project Partners 120 16. Summary of MAC Business Plan 121 17. Analysis of Certified Supply Generation 128 18. Response to Government Focal Point Review of PDF-B 129 19. Response to IFC Issues Raised during PDF-B Phase 132 20. Frequently Asked Questions (FAQs) On Transforming the Marine Aquarium Trade 137 21. IUCN Scientific Review 147 22. Response to IUCN Scientific Review 150 23. STAP Technical Review and Response to STAP Review 154 v 1. PROJECT SUMMARY 1.1 Background 1.1.1 Global significance of marine biodiversity in Indonesia and the Philippines Coral reefs are the second most diverse ecosystem on earth. They provide global benefits, including genetic material for drugs, coastal protection from storm waves, coral sand beaches and diving for millions of tourists, subsistence and commercial food supplies (e.g. providing food to over 350 million people in Asia alone), and the basis of a global fishery for marine aquarium organisms. Coral reefs are facing a global crisis due to overfishing, destructive fishing, pollution and sedimentation. The world’s most extensive, diverse and threatened reefs are in the Philippines and Indonesia, and these countries supply more than 80% of marine aquarium fish and (for Indonesia) much of the live coral in trade. Almost all of this is for export, with reports indicating only 1-2% of the harvest is for the domestic market. Southeast Asia is the global center of marine diversity. It contains more than one third of all the world’s coral reefs, and over 600 of the 800 reef-building coral species in the world. A greater variety of species exist on a single island in this region than on all the coral reefs in the Caribbean. Indonesia and the Philippines together hold 77% of the region’s coral reefs, including the majority of South East Asia’s best-preserved reefs. These reefs of the Wallacea Bio-Region have been identified by the major conservation NGOs (TNC, WWF, WRI and CI) as a global priority conservation area. The 24,000+ islands in Indonesia and the Philippines make up the world’s
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