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MaintainingBiological IntegrityofCritical BiodiversityHabitats AssociateCooperativeAgreementNo.687-A-00-04-00090-00

JANUARY 1, 2008– DECEMBER 31, 2008

This publication was produced for review bythe United States Agencyfor International Development. Itwas prepared byConservation International (CI),Wildlife Conservation Society(WCS),and World Wide Fund for Nature (WWF). Maintaining Biological Integrity of Critical Biodiversity Habitats ANNUAL PROGRESS REPORT 2008

PROJECT SUMMARY

ProjectName: MIARO

Projectactivity: MaintainingBiological IntegrityofCritical BiodiversityHabitats

CooperativeAgreement No.: 687-A-00-04-00090-00

Projectperiod: May17,2004– March 31, 2009

Implementing Organization: ConservationInternational – MadagascarinpartnershipwithW CS andW W F

Reporting Period: January1, 2008– December31, 2008

Page 2 Maintaining Biological Integrity of Critical Biodiversity Habitats ANNUAL PROGRESS REPORT 2008

TABLE OF CONTENTS

LIST OF ACRONYMS ______4

I. Introduction______6

II. ProjectActivities ______9 ACTIVITIES LINKED W ITH RESULT MODULES ______9 Result Module 1: Ecological linkages established and maintained ______9 Result Module 2: Management effectiveness for conservation areas improved ______26 Result Module 4: Sustainable Financing Mechanisms Mobilizedand Operational ______33

USAID ALLIANCE ACTIVITIES ______42

III. Problems andconstraintsencountered ______43

IV. Recommended solutions______45

V. Discussions ofobjectives notachieved ______47

VI. Lessonslearned ______48

VII. AchievementTable______50

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LIST OF ACRONYMS

ACCE Association Conservation Culture Environnement AMNH American Museumfor Natural History ASE Association pourla Sauvegarde de l’Environnement BBOP Business and Biodiversity Offset Program BIMP BirdlifeInternational Madagascar Programme BP/BPC Business Planning for Conservation BRD Bioclimate Research and Development C2D Contrat Désendettement Développement CAG Conservation Action Grants CAZ Corridor Ankeniheny Zahamena CBD Conférence pourla DiversitéBiologique CCBS Climate, Community and Biodiveristy Standards CCD Communal Development Committees CCEE Centre pourla Conservation et pourl’Education Environementale CDFIDE Comitépourle Développement des Instruments de Financement Durable pourl’Environnement CEG Centre d’Enseignement Général CEL Centre Ecologiquede Libanona CEP Commission Environnement – Pêche CI Conservation International CIMF ComitéInter-Ministériel Mines Forêts CMP ComitéMultilocal de Planification CNRE Centre National pourla RechercheEnvironnementale COAP Code des Aires Protégées COBA Communautéde Base COFAV Corridor Fandriana-Vondrozo COGE Comitéde Gestion DEAP Droit d’EntréeauxAires Protégées DGEF Direction Générale de l’Énvironnement et des Forêts DPRH Direction de la Pêcheet des Ressources Halieutiques DREFT Direction Régionale de l'Environnement,des Forêts et duTourisme DSAP Direction de l’AppuiauxSystèmes des Aires Protégées EIA Environmental Impact Assesment EP3 Madagascar'sEnvironmental Program Phase 3 EPP Ecole Primaire Publique FAPBM Fondation pourles Aires Protégées et la BiodiversitéàMadagascar FSC Forest Stewardship Council GDRN Gestion Durable des Ressources Naturelles GEF Global Environment Fund GERP Groupe d'Etudes et de Recherches pourles Primates GHG Greenhouse Gas GIS Geographic Information System GOM Government ofMadagascar IDA International Development Association IEFN Inventaire EcologiqueForestier National IEG Indice d’Efficacitéde Gestion IUCN International Union for Conservation ofNature and Natural Resources KfW Kreditinstalt fÜr Wiederaufbau LCM Land Change Modeler MAP Madagascar Action Plan MATE Man and The Environment MaVoa Madagasikara Voakajy MBG Missouri Botanical Garden MEFT Ministry ofEnvironment, Forests and Tourism MEM Ministère de l’Energie et des Mines MENRS Ministère de l’Education Nationale et de Recherche Scientifique MFPAB Madagascar Foundation for Protected Area and Biodiversity MNP Madagascar National Parks MPA Marine Protected Areas NGO Non-governmental organization

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NPA NewProtected Areas OLEP Organe de Lutte contre l’Evenement de Pollution Marine par les hydrocarbures ONE Office Nationale de l’Environnement ONTM Office Nationale duTourisme àMadagascar PA Protected Area PAG Plan d’Aménagement et de Gestion PBZT Parc Botaniqueet Zoologiquede Tsimbazaza PCD Plan Communal de Développement PDD Project Development Design PES Payment for Ecosystem Services PGESS Social and environmental management plan development PIN Project Information Note POW PA Program ofWorkon Protected Areas PTA Plan de Travail Annuel QMM QIT Madagascar Minérals S.A. RAPPAM Rapid Assessment and Prioritization ofProtected Areas Management REBIOMA Réseaupourla Biodiversitéde Madagascar REDD Reducins Emissions fromDeforestation and Degradation REPC Réseaud’Educateurs Professionnels pourla Conservation RTM Reggio TerzoMondo SAPM Système des Aires Protégées de Madagascar SAGE Service d'Appuiàla Gestion de l'Environnement SPF Service de Pérennisation Financière STTA Short-term technical assistant SW AP Sector Wide Approach TAMS Tetik’Asa Mampody Savoka TBD To be determined TDY Temporary Duty TFT Tropical Forest Trust TNC The Nature Conservancy UCFB Unitéde Coordination Foresterie Biodiversité UNEP United Nations Environment Programme UNFCCC United Nations FrameworkConvention on Climate Change USAID United States Agency for International Development W CS WildlifeConservation Society WWF World Wide Fund for Nature ZOC Zone d’Occupation Concertée ZUC Zone d’Utilisation Concertée

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I. INTRODUCTION

This report covers activities for the period from January 1 to December 31, 2008 for the USAID MIARO Program under the “Maintaining Biological Integrity ofCritical Biodiversity Habitats,” Leader Award No. LAG-A-00-99-00046-00. This is the main program through which Conservation International, WWF and the WildlifeConservation Society provide coordinated technical support to the creation and effectivemanagement ofthe Madagascar Protected Area System (SAPM).

In 2003, the Ministry responsible for Environment and Forests began a massive effort to expand its protected area system to coverapproximately 10% ofthe country’s surface. Since that time enormous progress has been made in turning that vision into a reality. In December 2008, most ofthese new protected areas have been identified and are actively being created by a wide variety ofcivil society partners. This achievement has already been an enormous task that has required unparalleled collaboration among diverse organizations from government ministries, conservation NGOs and rural development partners all the way down to the communities living around the new protected areas. A new protected area system (SAPM) has been designed, datasets on biodiversity distribution havebeen compiled and analyzedto identifythe most important sites to protect, the concept ofprotected areas in Madagascar has been redefined to allow for more flexible management options and new governance arrangements, new models for engaging communities in conservation havebeen conceivedand tested, new tools for improving management effectiveness and monitoring havebeen developed and adopted, and new financial resources havebeen found and putto workto conserveMadagascar’s uniquenatural heritage.

The conservation community in Madagascar is currently engaged in the largest taskit has everfaced. In the field, the promoters ofthe new protected areas are in the process ofdetailed negotiations with stakeholders to agree on the path ofover 10,000kilometers ofprotected area limits, access and resource use rights and zoning. They are identifying the rural development needs ofthe country’s most marginalized communities and establishing the foundation for good governance starting with sound natural resource management. At the policy level there is still workto do to provide a legal framework that supports and reflects the policies for protected areas that haveemerged from the past several years ofdebate. Defining the final priority sites to include within the SAPM is also essential. As the most obvious biodiversity-rich areas are protected, the choice ofthe final sites to include in the protected area system to ensure that it conserves the full representation ofMadagascar’s biodiversity will become more difficult. As the SAPM becomes a reality, new actors are getting involved in conservation and their capacity needs to be built up. Similarly, new finance is needed to pay for the expanded system and the government and conservation organizations need to leverage money from previously untapped sources. The current challenges for SAPM haveensured that the year 2008has been a busy, but very productive,period for the MIARO program.

During 2008, several new guides and management tools were developed for the SAPM, namely the guides for protected area management plans and for social, environmental impact assessments and production ofsocial safeguard plans. This period was also characterized by the adoption by the Assembly and the Senate ofthe new COAP law (Code des Aires Protégées), which updates the legislation to include new protected area categories and governance types. Many new areas are included for addition into the law, suchas the sustainable use ofnatural resources, zoning and marine protected areas. The several application decrees (Décret d’Application) related to this new version ofthe COAP are currently under development.

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Moreover, the inter-ministerial executive order No 18633/2008/MEFT/MEM guarding both new protected areas under creation and priority sites for biodiversity from mining activities, was signed by the Ministry ofEnvironment, Forests and Tourism (MEFT) and the Minister ofEnergy and Mines on October 17th 2008. The national priority setting map prepared by the priority setting group ofthe SAPM commission is annexedto this executiveorder.

Perhaps evenmore than elsewhere, climate change has become an important issuein Madagascar. The country has already measured significant changes within the last 50years and climate models for the region predict further substantial drying and temperature increases, particularly in the south ofthe country. As a first step towards sharing Madagascar-specific data with a wide audience, a Climate Change workshop was held in Antananarivo in January 2008. This was a first opportunity to bring together a forumofinternational and national experts with national policy makers to analyzethe threats on biodiversity and human livelihoods. The workshop provided a set ofrecommendations for building climate change resilience and for developing adaptation measures that are already being used to set research and future workpriorities

The system ofmarine and coastal protected areas has developed less quickly than for the terrestrial sites, but progress has been made on several fronts during this year. Two main documents were produced to help the promoters to moveforward, the “document d’orientation” and the “manuel de procedure”. A database ofmarine biodiversity distribution has also been created and will form the basis ofpriority setting likethat done for the terrestrial sites. The Marine grouphas been revitalized with the leadership ofthe Directorate for the Protected Area System (DSAP) to start the priority setting process and facilitate the establishment ofnew marine protected areas.

Specific to USAID Ecoregions, the management plan for CAZ is being finalized. A local management structure has been established in several areas through a variety ofmechanisms including management transfers, direct conservation contracts and management contracts between local associations and the government. For COFAV, local consultations havebeen completed for 47communes and are ongoing. As in CAZ, some local management units have been supported through conservation contracts and others already exist in management transfers. In Anosy, Tsitongambarika and Ambatotsirongorongo are moving forward toward definitiveprotection status.

MIARO has continuedthe support to new protected area promoters and managers, particularly for the adaptation ofguides and software to SAPM, to help the development ofmanagement plans and to evaluate management impacts. The management plan development process is facilitated by the introduction ofnew software called Miradi, for which training has been provided for many ofthe partners involved in producing management plans. The RM2 team provided technical support to develop management plans for several sites with the use ofthe new Miradi software. These sites include CAZ, Menabe-Antimena, Ranobe, Ankodida, Ifotaka and Montagne des Français. Governance and sustainability issuesare being addressed through the planning process and all ofthe new protected areas that MIARO is supporting are developing similar governance models that include local communities as key actors in the management decisions and implementation ofthe site.

Further progress has been made towards developing sustainable financing mechanisms. Technical support continued to be provided to both ofMadagascar’s environmental Foundations. Support provided by the MIARO team in earlier years paid offwith an important contribution to the Protected Areas and Biodiversity Foundation from a debt swap agreement with the French Government. Important progress was made on leveraging funding for existing and new forest carbon projects and building the capacity ofpartners, including government institutions, to implement suchprojects.

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Efforts to support Tany Meva have continued with the development ofits five year investment strategy. In the field, capacity building is being reinforced with training on community forest carbon project development with the support ofPlan Vivo.

MIARO has continued to work with the Foundation for Protected Areas and Biodiversity of Madagascar (FAPBM) in developing the documents and strategies needed to be fully functioning. In addition, MIARO is currently finalizing the selection and prioritization criteria for protected area funding mechanisms of the Foundation. During the reporting period the commitments to the FAPBM’s capital surpassed the original target of$50million that was supposed to be attained by the end of2008.

This period has seen a great step forward from the Ministry ofEnvironment, Forests and Tourism. The Sustainable Financing Unit (SPF) has been officially set up and replaced the CDFIDE, showing the commitment ofthe Ministry to the issue. MIARO has reinforced this unit by providing technical assistance to develop a sustainable financing strategy for environmental actions in Madagascar. MIARO has also carried out further studies related to watershed based PES mechanisms and Green Fees. The long awaited C2D debt reliefcontract that MIARO supported is finally complete and provides for 13 million euros to be contributed into the capital ofFAPBM.

MIARO partners have continued to develop forest carbon projects and carbon financing on several levels. MIARO participated in a REDD workshop that was organizedto widen the discussion about the potential ofREDD projects in Madagascar. At the site level, important progress was made at Makira with the signing ofan agreement between WCS and the GoM that provides WCS with a long- term mandate to sell carbon emission reductions generated by the protected area. For CAZ, CI facilitated the signing ofa contract between the GoM and the Biocarbon fund for $1.5 million that provides an important revenue source for the protected area for the next several years. CI also continues to provide technical support and funding for the Mantadia habitat restoration projectthat MIARO has supported and for which the GoM has also signed an agreement with the BioCarbon Fund for approximately $800,000that will provide long term funding for the restoration activities beyond the end ofEP3. MIARO has also made good progress toward developing a carbon projectfor COFAV and buyers havebeen identified. On another front, WWF, in partnership with Good Planet, has been able to raise $5million for forest conservation activities in Madagascar as part ofAir France’s corporate responsibility strategy for offsetting carbon emissions. At the technical level, consultants from Winrock International came to Madagascar to support the development ofthese carbon projects. The objective is to prepare the ProjectDesign Documents for each site and to establish the carbon baselines needed for each ofthe projects. For that, Winrockprovided training on carbon measurement in the field and project design document development. The teams ofMalagasy technicians that were trained are now in the field at several sites collecting the data needed for these projects. Data from the field has been combined with state-of-the-art deforestation modeling to provide well-founded estimates for carbon dioxide emissions expected from CAZ and similar estimates will soon be available for COFAV and Makira. The activities relating to carbon projects have been integrated into the management plans of each protected area, especially as regards carbon monitoring.

MIARO has also been supporting the development of an Ecotourism concession policy for Madagascar, and the concession frameworkdocuments suchas the concession contract and its “cahier de charges” were completed and adopted during the year. The follow-on identification ofsites for concessions and potential concessionaires is being led by IFC as agreed in the MOU signed between the MIARO program partners and IFC.

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II. PROJECT ACTIVITIES

ACTIVITIES LINKED W ITH RESULT MODULES

Result Module 1: Ecologicallinkages established andmaintained

Through RM1, the MIARO program has continuedto provide central support to the new Directorate for the Protected Areas System (DSAP) on key issues involving priority setting, development of appropriate policy and practical guides explaining these policies, development ofnew governance models, and communication ofprogress in implementing the SAPM. The direct activities to create and effectively manage new protected areas in the Ankeniheny-Zahamena and Fandriana-Vondrozoforest corridors havealso made good progress under this results module.

SUB RESULTS MODULE: 1.1. Promotethe definitionofpolicyand legal parametersforthe establishmentofnew protected areas a. SAPM Policydocuments/tools MIARO has continued to ensure that previously developed policy documents that were developed with the SAPM commission are distributed to promoters ofprotected areas and other stakeholders who need them. These documents include: i. a general guidance document on the categories and types of governance possible within the SAPM, ii. a guide for the establishment ofnew protected areas, iii. a guide for conducting environmental and social impact assessment, iv.a guide for land use planning v. guidelines for ensuring social safeguards during protected area creation.

In addition to the existing policy documents, MIARO supported the development ofnew policy documents this year:

1.Guide to sustainable natural resource use The development ofthe Guide to Sustainable Natural Resource Use began with a focuson legislative issues. However, a robust guide must also include technical issuesthat address the practical aspects of field implementation. For the technical aspects, a consultant will be recruited to complete the following tasks: ° In collaboration with protected area promoters, GDRN commissions, and local communities, define the technical directives for each type ofnatural resource use activity; ° Using parameters such as productivity, regeneration capacity, and viability, determine authorized harvest levels for concerned timber species that meets current and future needs; ° Provide guidelines for developing management plans for the resources in question.

A call for proposals was published in newspapers and proposals are expected in the upcoming weeks.

2.Reconciliation of thevarioustools produced by theSAPMcommission,their validation and publication Subsequent to their validation, the tools produced by the SAPM commission will be reconciled and collected into a single binder and CD.

With the support ofGTZ/PGDRN, DSAP assembled all ofthe technical tools developed into a single reference document that will be used for creation and management ofprotected areas. The consultants working on this have already presented the document to the SAPM commission. Comments were provided and the consultants are now finalizethe document.

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3.Guide for developing thesocial safeguard plan This guide was developed with participants ofthe training on social safeguard plans held in April 2008. It is a synthesis document that includes both a summary ofthe World Banksocial safeguard policies linkedto the creation or extension ofprotected areas, as well as clarifications regarding the application ofthese requirements to the implementation ofsocial safeguard plans.

The Operational FrameworkofProcedures, which is the basis for this document, provides the general orientations, processes, and principles for determining measures to safeguard the interests of communities affected by the creation ofa protected area. The guide is meant to accompany the Operational Framework that focuses on the organization and content ofthe action plans for each project. It provides information and suggestions to facilitate the implementation ofthe general orientations, processes, and principles ofthe Operational Framework.

4.SAPM/Land Tenure A series ofmeetings between MCA/PNF and variousenvironmental partners were held to discuss land tenure reform and protected areas. A decree to clarifythe land tenure options that are possible within protected areas is being developed to provide guidance for projects involved in issuing land tenure certificates. Only land within Controlled Occupation Zones (ZOCs) will be eligible for land titling. b. Legal aspects 1.COAPAmendment After consultation with partners in the environment sector and other affected sectors such as Land Use, Justice, Agriculture, Fisheries, and Mining, an initial draft ofa revision to the COAP was developed. In September 2008, a consultant from the IUCN (Mr. Laurent Granier) was recruited by MIARO to help the DSAP to finalizethe revisions to the COAP. Mr. Granier also helped to identify “textes d’application” needed to operationalizethe revised COAP.

The revised COAP includes the following: ° Application ofthe Durban Vision ° The Ministry in charge of protected areas, assisted by a consultative body, defines the orientations and ensures the coordination ofSAPM ° Formalization ofthe statusofprotected areas in conformity with the 6categories ofthe IUCN ° Creation ofthe System ofProtected Areas ofMadagascar in terms ofecosystems, tenure, and governance ° Definition ofgovernance types ° Governance principles ° Sustainable use ofnatural resources ° Protected area management tools ° Threat reduction

Additional issues: ° The overlap with other sectors ° Economic valuation ofnatural resources ° Sustainable development tools

The revised law was passed by the Senate and was presented to the National Assembly on November 13,2008.

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2.“Decrets d’application” The “decrets d’application” will provide additional detail on the items outlined in the law. Barring any significant changes to the law, the “decrets d’application” related to the following are planned and are currently being prepared: ° Marine protected areas ° Protected area categories, Co-management ofprotected areas, voluntary protected areas, and management responsibilities ° Protected area management tools: management plans, community management agreements, management delegation agreements, “cahier des charges” and safeguard measures ° Creation, temporary protection, change in statusand protected area limits ° Sustainable use ofnatural resources, linkswith other sectors such as mining, oil, and land tenure

3.Interministerial order on global temporary protection for sites referred to in theinterministerial order No.17914of 18 October 2006,whichsuspends theissuance of newmining and forestry permits for certain sites Interministerial order No. 18633,signed by the Ministry ofEnvironment, Forests and Tourism and the Ministry ofEnergy and Mines on 17October 2008, ensures temporary protection of new protected areas under creation, priority conservation sites, and priority sustainable forest sites until the release ofthe protected area classification decree. According to this arête the existing mining and forestry activities require the application of specific conditions and requirements articulated in the legislation. This order has been communicated to the forest administration at the regional level, as well as to the other affected sectors.

Additional interministerial orders will be developed with sectors such as agriculture and land use. With these orders, temporary protection orders will no longer be necessary for each new protected area. However, promoters will still need to follow the defined protected area creation process and submit a “cahier des charges” to DEAP with a detailed monitoring plan.

4.Management delegation The DSAP will issuea ministerial decision to name new protected area promoters. The decision will name the DREFTs as the managers ofnew protected areas, and they are responsible for spearheading and coordinating the creation process. However, the day-to-day operational process for creation will be led by a promoter for each site. This is the process that has been adopted until now for most ofthe new protected areas, however the DSAP intends to put the relationship on a more formal footing. Each promoter will have their rights and responsibilities laid out in a cahier de charge. A draftofthe cahier de charge defining the terms ofthe collaboration between managers and technical and financial promoters is already complete and these agreements should be signed soon between the DSAP and the promoters. c. Governance fornew protected areas Several protected areas have already developed a governance structure. During the protected areas governance workshop held in October 2007, it was suggested that a networkbe created to facilitate exchange and learning among promoters and other actors regarding protected area governance.

As a first step, a workshop among the promoters and stakeholders ofthe large corridor protected areas – CAZ, COFAV, Makira, and Menabe – was held in December 2008 to promote exchange and reflection on governance issues. This workshop resulted in the creation ofa networkamong the actors at these sites that haveseveral points in common (large surface area, co-management model and they are relatively advanced in the creation process).

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Results and decisions ofthis workshop included the following: ° The networkwill serveto facilitate exchange and information sharing to improvethe efficiency and effectiveness ofPA creation and management, as well as to define orientations ofthe methodologies and approaches to be used when establishing protected areas. ° The network will be attached to MEFT/DGEF/DSAP/SAPM Commission at the national level. The secretariat will be filled by ESSA and the terms ofreference for this workare under development. A focal point will be designated for each site. ° The secretariat will facilitate communication among members, liaise with MEFT/DGEF/DSAP, prepare networkmeetings, and manage information and data. The focal points will serve as liaison between the members and the secretariat as well as organizelocal exchange/sharing meetings.

Specific themes to be addressed by the network have been identified: management plans, environmental and social impact assessments (management tools), protected area governance, safeguards, economic development opportunities around protected areas, forest control, financing and sustainability.

In the future, the network will have a website, focal points will be named, and other sites may be included (e.g., Mikea, Mahavavy-Kinkony). d. Impactofclimatechangeonbiodiversityandlivelihoods inMadagascar A three-day workshop “Assessingthe ImpactsofClimateChange onMadagascar’sBiodiversity and Livelihoods” was held in Antananarivo, from January 28 – 31, 2008. The workshop was organized by CI, WWF, USAID and the Government ofMadagascar. It brought together 130experts from more than 50 national, regional and international organizations across a wide spectrum of expertise. The workshop’s objectivewas to provide a forumfor policy makers and experts from various disciplines – climate science, oceanography, marine and terrestrial ecology, conservation, and rural development – to examine the threats to marine and terrestrial biodiversity and livelihoods in Madagascar, and to generate recommendations for building resilience and adapting to the likely impacts of climate change. Of particular importance in the context of the MIARO program were recommendations related to priority setting for areas to protect because oftheir potential resilience, vulnerability or for the key ecosystem services that they provide. In addition, important recommendations were made related to ecological restoration in strategic areas where natural corridors need to be maintained or restored to provide the possibility for species to shift their ranges in adaptation to climate change. Many ofthe recommendations havealready servedto orient activities of the main partners that were involved in this workshop. USAID itselfhas started the workof“climate- proofing” the mission’s activities and produced communication materials explaining ongoing workthat climate change adaptation. The MIARO partners (CI, WWF and WCS) also developed a successful funding proposal that was accepted by the MacArthurFoundation. This program will allow several of the main recommendations for building resilience to be initiated. e. REDD W orkshopheld onApril1-3, 2008 At the UN climate change negotiations in Bali in December 2007, the issue of20% ofglobal CO2 emissions coming from the loss oftropical rainforests finally received the attention it deserves. Mobilizing revenues from carbon markets for Reducing Emissions from Deforestation and Degradation (REDD) is a major opportunity for tropical countries to address this pressing problem whilst advancing their rural development agendas. CI helped GTZ and the World Bank’s BioCarbon Fund to organizea workshop on REDD on April 1-3, 2008. Stafffrom MIARO presented the two REDD pilot projects, approaches to modeling carbon offsets and mechanisms to ensure that global carbon benefits can be channeled to rural communities. The MIARO project also supported many

Page 12 Maintaining Biological Integrity of Critical Biodiversity Habitats ANNUAL PROGRESS REPORT 2008 other REDD related activities during 2008butthese were related to sustainable financing issues and so are presented in RM4.

SUB RESULTS MODULE: 1.2. Identifyand promote potential new Protected Areas in consultationwithregional andlocal actors a. ConservationActionGrants(CAG) MIARO made available Conservation Action Grants to promoters with the aim ofadvancing SAPM. Twenty-two activities were financed through CAG, the majority ofwhich contribute to the creation of new protected areas in USAID priority regions: CAZ, COFAV and Anosy. Additional sites such as Tsimembo-Manambolomaty, Bealanana, Tambohorano, were included and already receive other support from USAID. Sites that already havetemporary protection statussuch as Ibity and Analalava were also supported. Individual project reports are annexedto this document.

Summarytable ofCAG funding:

Project/Site Promoter Situation Morarano: Natural ACCE Target species are identified. Preparation ofbiological inventory, resources management socio-economic study, and delimitation forsustainable development Ranomay/Onilahy: Association This community protected area will be one management unit Creation ofa community Culture et within the Amoron’I Onilahy protected area. Consultations with sacred protected area and Conservation local communities for zoning and delimitation were undertaken. ecotourism development Toliara The business plan and the tourism plan havebeen developed. ACCT requested and were accorded an extension through the end ofFebruary 2009to complete the work. Andatabo/Bay ofSt. ASE This community protected area will be a management unit within Augustin: Creation ofa the Amoron’I Onilahy protected area. The terrestrial delimitation community protected and zoning are complete. The draftmap is available. The area (terrestrial and management plan and the impact assessment are underway. A marine) DINA has been developed and the TAMIA association has undergone training on natural resources management. Village tree nurseries havebeen created and restoration activities at Antabo havebegun. Mandrare: Feasibility CEL The CEL Libanona team conducted an exchange visit at Mananara study and consultations Nord. Consultations havebegunwith the private sector. A forthe creation ofa stakeholder workshop tookplace in November 2008and Biosphere Reserve community consultations are being organized. CAZ : Transfert de NGO 7of12 transferts de gestion at Didy were evaluated with the objective Gestion evaluation at Tolotanana ofrenewing the agreements and making any modifications Aloatra Mangoro necessary to bring them in line with the protected area management objectives Vohidahy: Establish RTM Community association and organization trainings were conducted. governance structure and Forest inventories of286samples in two transferts de gestion were conduct forest restoration completed. The forest zoning map will be developed based on this information. Fivecommunity nurseries will be created before the end ofthe project and parcels offorest thickening and restoration are currently being planted. Awareness building activities were undertaken regarding income-generating activities to motivate people to create associations. Fourassociations currently exist. Securing critical habitat of MATE Ambinanitelo and Fohisokina, the two most important habitats for the Harlequin frog, this critically endangered species (global population is less than 50 Mantella cowani individuals) havebeen delimited and mapped. The objectives of

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the management contract havebeen approved by appropriate authorities as well as by traditional leaders and landowners. The management contract with the DREFT Amoron’I Mania was approved by the Chefde Region. Ambohilero: Integration Federation The limits ofthe protected area havebeen negotiated with into CAZ and improved Fitokisana communities. communication on CAZ Maromizahaconservation GERP A management plan for the Maromizahaforest was developed and biological inventories conducted.

Temporaryprotectionofthe followingsites was supported byCAG:

Site Promoters Status Tsimembo The Peregrine Consultations in 20villages (3communes) were completed and Fund the management plan developed. The communal validation workshop was held as well as a regional workshop. Letters of engagement for the creation ofthe PA havebeen collected. Bombetoka Fanamby The draftmanagement plan is available as well as a draftofthe textrelated to the OPCI. Anadabolava MBG Technical documents were validated at the communaland regional levels. The temporary protection request was submitted to DSAP and DGEFT on October 6,2008. Angavo Fanamby Socio-economic studies and the biological studies are being prepared. Negotiation with Koloala formore detailed delimitation ofconservation and production areas is underway. Ambondrombe DURRELL The draftmanagement plan is complete and validated by the communes and districts. Negotiations on the overlap with Koloala are complete. The temporary protection request was submitted to DREFT, DSAP and SG/MEFT. Mangabe MaVoa The communal map with a proposal forthe limits ofthe PA is available, as well as letters ofapproval from the district, region, and a technical letter from the DREFT. Fivecopies ofthe protection request were submitted to MEFT. Ampananganandehibe/ MaVoa The temporary protection requests were submitted to DSAP and Beasina, Analalava, SG/MEFT. Mahialambo and Ambakoana Ambakoana and MaVoa The collaboration letter between ACCE/MAVOA and Analabe FANALAMANGA is being prepared, as well as the request for legal certification from the Service des Domaines. The overlap between the new protected area and mining permits is being resolved.

The preliminary creation step has already been undertaken for additional sites suchas Ranobe PK32, Mahabo Mananivo, Orangea, Itremo, Analavelona, Makirovana, Complexe Mangoky- Ihotry, Ambodivahibe, Velondriake, Ambalabe. b. Prioritysettingatthe national level (terrestrial) The most recent and detailed analyses on biodiversity priority setting were completed and used to obtain permanent protection orders to stop mining and forestry permits being approvedin these zones. A map ofthese conservation priority sites was developed by the priority-setting group ofthe SAPM commission to clearly explain the progress that has been made. This map has been widely distributed and identifies 6important areas for biodiversity conservation: ° Madagascar National Parks(MNP) -managed protected areas

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° Extensions to the MNP-managed networkofprotected areas (both new sites and extensions of previously-existing PA) ° Protected areas that havealready receivedprovisional protection status ° New Protected Areas outside ofthe MNP networkwith promoters and funding ° Priority sites according to promoters/DREFT/Region that will be included within SAPM ° Other potential sites identified by the priority-setting group

Species that were not originally protected or only weakly protected under the original map (and arreté) produced in 2006have been included in categories 1-4 ofthe priority sites above. Although the 6th category will likely not be included with the SAPM, this information on priority biodiversity areas will still be usefulfor other planning, for example for identifying the conservation zones within Koloala and transfert de gestion sites outside ofprotected areas. It will also be useful for environmental risk assessments and for regional land-use planning initiatives.

The final version ofthe map was annexedto the interministerial order No. 18633ofOctober 17,2008. This map and the list ofsites will be used for negotiations with MAP and Land Use Planning. c. Program ofWorkonProtected Areas In view ofimplementing the CBD’s program ofworkon protected areas (POWPA) a meeting was held in August 2008 between DSAP and members ofthe scientific and conservation community. The objective ofthe meeting was to inform all stakeholders ofthe POW and the associated activities, to analyze Madagascar’s progress, to identify priority activities among the 13 eligible activities for UNDP/GEF under the POWPA Action Grant funding, and to discuss how to prepare a proposal for these priority eligible activities.

Selected activities (in order ofpriority) include the following: ° 3.1.1 By 2006,identifylegislativeand institutional gaps and barriers that impede the effective establishment and management ofprotected areas, and by 2009, effectively address these gaps and barriers. ° 3.1.2 Conductnational-levelassessments ofthe contributions ofprotected areas, considering as appropriate environmental services, to the country’s economy and culture, and to the achievement ofthe MillenniumDevelopment Goals at the national level; and integrate the use ofeconomic valuation and natural resource accounting tools into national planning processes in order to identifythe hidden and non-hidden economic benefits provided by protected areas and who appropriates these benefits. ° 3.1.6Identifyand establish positiveincentives that support the integrity and maintenance of protected areas and the involvement ofindigenousand local communities and stakeholders in conservation. ° 3.2.1 By 2006complete national protected-area capacity needs assessments, and establish capacity building programs on the basis ofthese assessments including the creation ofcurricula, resources and programs for the sustained delivery ofprotected areas management training. ° 3.4.1 Conduct a national-level study by 2005 ofthe effectiveness in using existing financial resources and offinancial needs related to the national system ofprotected areas and identify options for meeting these needs through a mixture ofnational and international resources and taking into account the whole range ofpossible funding instruments, such as public funding, debt for nature swaps, elimination ofperverse incentives and subsidies, private funding, taxes and fees for ecological services . ° 4.1.2 Develop and implement an efficient, long-term monitoring system ofthe outcomes being achieved through protected area systems in relation to the goals and targets ofthis work program.

Page 15 Maintaining Biological Integrity of Critical Biodiversity Habitats ANNUAL PROGRESS REPORT 2008 d. Communicatethe resultsofprioritizationatnational level The “SAPM Atlas” (working title) is now available in beta format and was presented for comments to the SAPM commission and partners. Accompanying documents, including GIS meta-data and a technical report describing the context, methodology and process adopted by the priority setting Group of the SAPM Commission during the period from 2004-2008 will be completed at this time (information collecting, assembling and writing). This digital productwill provide detailed information on the SAPM. e. Refinemarineconservationprioritysites based onnew species distributiondata At the beginning of 2008, WCS engaged a short term technical consultant Faratiana Ratsifandrihamanana to continue to build the marine species distribution data needed for the priority setting process. Faratiana is working on managing and updating existing data including the database built by Pierre Vasseur on reeffishes. The database compiled in an Excel spreadsheet has been transferred to Access database format in order to facilitate its usefulness. The dynamic and updateable database – a combined effort ofexperts in marine biology, GIS, and the REBIOMA project – will serve to help identifypriority marine conservation sites in Madagascar based on species distribution data. Climate change resilience is an additional factor, beyond the scope ofthis specific subactivity that is currently being integrated into MPA priority selection under separate funding.

Coral reeffishdatabase update– This database on Malagasy coral reeffish, organized in Excel table format, includes all available species level data including geographical coordinates ofeach study site to facilitate the establishment ofa species distribution map. The species name and its synonyms havealso been updated according to the Fish Base 2006reference list. The database has also been formatted so as to facilitate transferinto a MicrosoftAccess relational database – Darwin Core format.

Coral reeffishdatabase presentation– On August 8, 2008a meeting was held at the Ministry responsible for fisheries to provide an introduction to the Madagascar coral reeffish database, its utility as a search engine for marine species information, and its utility in prioritizing MPAs.

Prioritymappingwiththe database – Andavadoakain the southwest and the North West Coast ofMadagascar havebeen mapped using available data concerning the biodiversity level ofcoral reef species, coral cover, fish species number, fish biomass, resilient factors, and ecological services. This mapping exercise allows for the identification ofpriority marine conservation sites. In conjunction with the MIARO-supported work, the REBIOMA projecthas recently recruited a database manager whose responsibility will be the coordination ofdata collection and leading the analysis ofmarine conservation prioritization. Funding for this recruitment was secured from funding to the REBIOMA program. f.Supportthe developmentofthe “Documentd’orientation”formarineandcoastal PA

In April 2008WCS contracted STTA (Resolve) under the supervision ofan IUCN expert to draftthe ‘Document d’Orientation pourla création et la gestion des Aires Marines Protégées àMadagascar’and the ‘Manuel de Procédure pourla création et la gestion des Aires Marines Protégées àMadagascar’. This workis a continuation of the efforts ofIUCN Marine Conservation expert Dr. Charlotte De Fontaubert and Dr. Herilala Randriamahazo, Director ofthe Marine Program for WCS. Drs. De Fontaubert and Randriamahazo have been working with the Commission Environnement Pêche (CEP) to develop a national strategy for MPAs in Madagascar. The objectivewas to provide a written strategy for MPAs to inform the revision ofthe COAP and its decrets d’application. Both documents were submitted in final draftform to the SAPM commission in October 2008and were circulated to marine sector partners for final comments. The current versions ofthe two documents represent best knowledge in MPA prioritization, howeverit

Page 16 Maintaining Biological Integrity of Critical Biodiversity Habitats ANNUAL PROGRESS REPORT 2008 is anticipated that these draftdocuments will continueto be revised and improved upon. Stakeholders from all the sectors involved must contribute to the improvement ofthese documents. g. Continue tobuild governmentcapacitytomanage MPAs including developmentofa national strategyforMCPA incorporation intocurrentnational PA managementstructure (COAP) In November 2008Dr. Caleb MacClennen, Director ofWCS Global Marine Conservation was invited to Madagascar to offerexpertise on MPA prioritization as relates to climate change resilience and to introducethe ideas ofa western Indian Ocean Coral Triangle Initiative.Dr. McClennen reported on the successes in establishing a Coral Triangle Initiativein sixSoutheast Asian island nations. The initiative focuses on fiveobjectives: (i) seascape scaled conservation, (ii) ecosystems-based fisheries management, (iii) marine protected areas establishment, (iv)climate change, and (v)targeted threatened species. The initiative has been successful in developing cross-sector policy among the 6 nations, as well as in securing international financing for site and policy workin the sixnations. A similar model to the Coral Triangle Initiativewas proposed for the western Indian Ocean – centered on Madagascar. h. Communication Through CI’s communications department, MIARO putsignificant emphasis on communication of SAPM activities during 2008using media including TV, radio, newspaper articles, environmental events (World Days/International Days), meetings/conferences and printed materials. One ofthe most important and successfulapproaches has been the provision oftrainings, information sharing, and facilitation ofcontacts between journalists and protected area promoters. This has resulted in many articles on new protected areas and related environmental issues that are currently in the printed and audiovisual press.

Several films were produced locally to explain the protected area creation process and the involvement by local communities in planning and management: ° A 26-minute film was produced in Malagasy that explains the SAPM process. It is illustrated with footage that was takenduring public consultations in Antenina in the CAZ. The film was used for public meetings during public consultations, broadcast by TVM and shown during World Environment Day in Moramanga, Fianarantsoa, and Antananarivo. ° An educational tourfor journalists to Ialamarina in COFAV resulted in a 13-minute film producedby MBS, a national television station, in addition to 3newspaper articles in national papers (Midi, Taratra, le Quotidien) and an online news site (Aody.mg). ° A collaboration with the popular “Preuvepar six”television show resulted in six6-minute news reports on new protected areas, each ofwhich was shown multiple times. The show is a competition between teams ofyoung journalists whom each cover a story. MIARO provided stories, background information and worked with partners to facilitate the logistics for the 6 teams. The sixprotected areas that were covered were Mahavavy-Kinkony, Daraina, Andranovato (COFAV), Menabe, restoration activities linking forest fragments within the CAZ, and Anjozorobe. Each report focused on the benefits ofprotected areas to the local community.

A concise document and map presenting the SAPM and the progress made towards making it a reality was produced for the distribution at the Convention on Biological Diversity meeting in Bonn. The document was also used for distribution to participants at the MAP meeting organized by the Presidency on June 9-10,2008.

The MEFT’s communication strategy developed in 2005for new protected areas focused initially on raising awareness among all stakeholders and the general public regarding the SAPM policy and the approach to achieving the Durban Vision.

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This included the following steps: ° Developing the message with the EP3communication commission ° Training field communication agents ° Developing a strategy at the field level ° Developing communication tools ° Implementing the communication campaign ° Training journalists on SAPM (Tana, Fianar, Diego, Toamasina) ° Coverage ofthe progress at certain sites ° Monitoring the communication campaign ° Evaluating the messages, exchanging experience, and reorienting for the future ° Populating the MEFT website ° Holding press conferences

In December 2008, MEFT and MIARO organizedan evaluation and learning workshop regarding this SAPM communication strategy and the approaches that havebeen used by different promoters. The following are the main findings ofthe participants ofthe evaluation workshop: ° The majority ofpeople understand the concept ofthe new protected areas and the importance ofmaintaining a healthy environment. Yet, certain segments ofsociety (eg. women, children) need to be targeted specifically, as well as those who still havedoubts, concerns, or misunderstandings. ° Awareness building is an ongoing activity, not a punctual one. ° Activities are ongoing to demonstrate behavior change among people. People are consciousof the importance ofthe environment butfaced with poverty, they are forced to depend on the forest and other natural resources. ° The most effectivecommunication vectors are meetings, films, events, and interpersonal contact ° Messages in local dialects are well received. ° Future communication campaigns should focuson specific themes such as NPA management, the relationship between NPA and human well-being, climate change, etc.

Future communication activities will require additional training for field communication agents, improved communication tools and vectors, specific activities targeting sub-groups such as women, children and immigrants, and environmental education that accompanies communication efforts to ensure ownership ofan environmental ethic. The existence ofvoluntary communication agents is desirable as was achieved at Bongolava. Monitoring ofcommunication impacts is important and each groupofcommunicators should include this in its suite ofactivities. i.Rebioma database isfurtherdeveloped and used forconservationplanningatnational and regional scales insupportofthe SAPM creationprocess REBIOMA worked with the priority setting groupofthe commission SAPM to update and finalizethe map ofprotected areas with temporary status, as well as those planned for establishment.

Toward this end, the SAPM groupworkedwith REBIOMA and international consultant Tom Allnutt on the following activities: ° Work with the priority setting group to develop the ‘Digital Conservation Atlas, DCA’ for sharing with the region. This activity focused on presenting the results ofnational conservation planning exercises using the spatial conservation planning software packages Marxan and Zonation. ° Workon synthesis ofand comparison between prioritization results: MARXAN, ZONATION, KBAs and define methodology to help the priority setting groupto produceone map ofthese results.

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° Support the priority setting group in updating the biodiversity analysis and facilitating a workshop with Malagasy biologists to validate the map ofpriority sites for the creation ofnew protected areas. This workshop was held in mid-June 2008 and included participation from experts in varioustaxonomic groups (birds, mammals, freshwater fish, amphibian and reptilian) as well as the ‘promoteurs’ from the identified priority sites. ° Support the process to update and renew the interministerial arrêtéon mining in NAPs in October 2008.

Details ofadvances in the “SAPM Atlas”, the atlas report, composite map development, biodiversity analyses updates and regional priority setting can be found in the technical report submitted by Tom Allnutt.

SUB RESULTS MODULE: 1.3. Establish new Protected Areas (outside ofUSAID priority zones)

During 2008, the MIARO program continued to expand support to the new protected areas throughoutthe country according to the priorities defined by the MIARO partners, USAID and DSAP. This support was mostly technical assistance drawing on the lessons learned in conservation planning with ANGAP/Madagascar National Parks (see RM2 for details) as well as lessons learned from the main sites that the MIARO partners havebeen supporting directly in USAID’s priority “ecoregions”– CAZ, COFAV and several small sites in Anosy. However this year we also used small Conservation Action Grants (CAGs) to direct financial resources to the field through a network of local implementing partners and thereby help to catalyzethe SAPM process at priority sites. These sites also receivedtechnical assistance as needed from MIARO staff.

Financial andtechnical supporttopromoters

Activities leading to obtention ofprotection statuswere supported by CAGs at the following sites: Site Promoters Status Complexe The Peregrine The CAG funds were used to create a single protected area at the Tsimembo- Fund Tsimembo-Manambolomaty Complex.This is a small expansion Manambolomaty on the protected area that was originally funded by USAID from non-MIARO funds. Tambohorano/ The Peregrine Local consultations are complete for Mandrozo. The total Mandrozo Fund surface area remains unchanged butthere was a slight modification to the zoning. A regional workshop tookplace at Maintirano to validate the management plan and to establish the orientation and evaluation committee. The management plan is currently being finalized. Bemanevika/ The Peregrine Communal consultations are complete in 2 communes for Bealanana Fund Bealanana. The regional validation workshop ofthe management plan occurred in December 2008. The overlap with Koloala has already been resolvedwith DREFT. Ibity MBG Public consultations completed and the documents necessary for provisional protection statuswere submitted to DSAP Ambalabe MBG Consultations were completed at all levels. The map oflimits and zoning has been validated by local communities and the orientation committee. Finalization ofthe management plan and social and environmental impact plan are underway. The management committee is in place and operational. Tree nurseries with nativeand exotic species havebeen established

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and reforestation success rate is at 75%. The environmental education program is also progressing as planned. Analalava MBG Public consultations completed and the documents necessary for provisional protection statuswere submitted to DSAP

In addition, technical support was provided by MIARO stafffor the following sites and activities: ° Montagne des Français: Local consultations are complete. The global management plan is being finalized and the social and environmental management plan, including safeguards, has been approved. ° Bongolava: Local consultations are complete and the global management plan is being developed. The environmental and social management plan will follow. ° Mahavavy-Kinkony Complex:Definitiveprotection status is nearing as the management plan, the results ofthe social and environmental impact assessment, and the governance structure are almost complete.

SUB RESULTS MODULE: 1.4. Refineconservationpriorities inUSAID priorityeco-regions

ANKENIHENY-ZAHAMENA CORRIDOR (CAZ)

CAZ is moving toward definitive protection status thanks to the efforts ofthe regional technical committee.

Technical committee meetings The regional technical committee meets every 2 weeks to monitor the progress ofactivities toward definitiveprotection status. Among the issuesaddressed havebeen: ° Protected Area limits ° Integration with Aloatra-Mangoro SRAT ° Evaluation ofthe 12 transferts de gestion in Aloatra Mangoro ° Renegotiation oflimits in Ampasimpotsy Gara, Morarano, Manakambahiny Est, Didy and Ambohibary (post-consultations) ° Finalization ofCAZ map and maps by commune ° Management plan, social and environmental management plan, and governance structure

Managementplandevelopment The management plan was developed in a participatory manner with the support ofthe MIARO/RM2 team. The process included identifying conservation targets, learning the Miardi software, and creating sub-groups for drafting sections ofthe plan. Two draftversions were created and a third version is being finalizedafter comment from the DSAP and the 3DREFTs.

Governance structure Three governance scenarios were developed and discussions focused primarily on the roles and responsibilities ofeach level ofthe structure. The CAZ manager has not yet been identified, but the minimumcriteria the manager must fulfill havebeen identified. The technical committee will dissolve after the definitiveprotection statusis obtained and will be replaced by the Orientation and Monitoring Committee.

Social andenvironmental managementplandevelopment(PGESS) Given that the government has signed an agreement with the Biocarbon Fund for a REDD projectat CAZ, it was agreed that the development ofthe safeguards plan would be financed with these funds in accordance with the requirements ofthe World Bank. A MEFT representativehas been named focal

Page 20 Maintaining Biological Integrity of Critical Biodiversity Habitats ANNUAL PROGRESS REPORT 2008 point for this project (UCFB Mr. Abdoul Cheik). A draftofthe TOR for this activity has been developed and is being finalizedfor review by the World Bank.

All the required information coming from local consultations and other processes are currently being compiled for submission to MEFT/DSAP.

FANDRIANA-VONDROZO CORRIDOR (COFAV)

MIARO activities in Fianarantsoa focused on creating the new protected area, COFAV, which primarily involved communal-level consultations. These consultations include varioussub-activities: ° Information sharing on the evolution ofCOFAV during USAID Alliance meetings ° Developing and adapting the guide on the new protected area creation process (including local consultations) and providing training on the use ofthis guide to partners. ° Training on safeguard measures ° Creating maps for local consultations ° Collecting socio-economic and ecological data ° Holding local consultations at the communal level ° Defining the governance structure for the protected area

Socio-EconomicDatacollection Field-level socio-economic data collection is a crucial step before local consultations and informs the development ofvariousprotected area management documents (eg. the management plan, zoning plans and the environmental and social impact assessment). Three local consultants (Haona Soa, Accademis and Sahala) havebeen selected to carry outthis data collection which has now been completed for most ofthe 60communes in COFAV. This data provides a good understanding ofthe socio-economic contextand the consultations havebeen organizedsuchthat they validate the collected data and/or identifyinformation gaps.

Local consultations Representativesofthe fokontany, associations, NGOs, and local authorities participated in local consultations at the communal level. The main objectiveofthe consultations is to ensure stakeholder appropriation ofthe COFAV creation process. After objectives and the process are communicated to all, participants are divided into small groups. Each groupdiscusses the following points: ° Identifying resource use and/or settlements in areas to be part ofthe protected area; ° Refining protected area boundaries ° Refining the management vision for the protected area including zoning and management rules at the local level ° Identifying livelihood projects/safeguard measures

Groupworkis reported to all participants and synthesized. After validation, representativesofeach entity sign the minutes ofthe meeting. Currently, consultations for 47/60communes are completed. The 13remaining communes in Amoron’Mania Region will be supported by IDA/EP3funds. The open bids havebeen publicized.

Conservationcontracts CI has developed and implemented conservation contracts in 5 pilot zones ofthe COFAV (and with another 5 communities at CAZ). The objectiveis to ensure conservation action at the local level, empower local communities to do conservation, and to provide incentivesfor this work.These pilot activities are generating positiveresults and are likely to be one ofthe main mechanisms for engaging communities in conservation activities at the local management unit levelofthese protected areas.

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EIA/Safeguardplan The EIA/Safeguard plan development is an activity funded by the World Bankand coordinated by the DGEF/DSAP. Terms ofreference were developed and the recruitment ofthe consultants was done by the DSAP. A firm called “Land Resources” has been selected to do the workfor that should be finished by June 2009.

A first meeting was held on December 11th with “Land Resources” and the COFAV technical regional team (Secretariat Technique). The proposed methodology and timeline from Land Resources was reoriented in line with the process ofpublic consultations being carried out. Land Resources will review this methodology and present a new version in a meeting on January 13-14 in Fianarantsoa.

Governance – Two Working sessions have been organizedby the regional Technical Secretariat to discuss and define the governance structure ofthe COFAV protected area. Two scenarios havebeen defined and need to be discussed and refined in detail in coherence with the management plan.

ANOSY REGION Supportthe managementofAmbatotsirongorongoProtected Area PA managementplan – The draftfinal version ofthe Ambatotsirongorongo PA environmental impact assessment has been validated by the partner organizations ofthe PA steering committee - DREFT Anosy, Service des Mines, 4 Mayors, ONE Anosy, QMM, Comitéde gestion). The EIE was then sent to ONE for final validation in September 2008. The ComitéTechniqueEnvironnementale (CTE) led an evaluation in the field followed by exchanges and discussions with the concerned communities. The cahier des charges environnementales on the Ambatotsirongorongo NAP creation was signed by the DGEF and ONE in November 2008. The Environmental License is planned to be delivered in December 2008– delegated management authority is to be givento the regional direction ofMEFT.

With the aim to comply with the procedures ofcreation ofprotected areas and following the SAPM Manuel de Procédures de Création des AP Terrestres, a new document “le Plan d’Aménagement et de Gestion (PAG)pourla Nouvelle Aire Protégéed’Ambatotsirongorongo” is being drafted. This document on installation and management ofthe Ambatotsirongorongo NPA supplements the SAG documents validated by partners in 2006and the management plan validated by partners in March 2007.

Buildingthe capacityofthe ManagementCommittee (COGE) Membersand developmentof anannual workplan– The result ofthe COGE 2007PTA evaluation haveshown that less than half ofthe planned activities were realized for the first quarter. The main reason was that the COGE was only at its first steps of management and some of the members were not familiar with their responsibilities. To address this limited functionality ofthe COGE, a permanent facilitator was hired to workwith the COGE on management ofthe PTA.

This facilitator has worked with the COGE on developing a practical and achievable PTA for 2008. The COGE rose to the challenge to realizein 2008 what they could not achieve in 2007. Now that impromptuand intermittent field visits to follow up implementation ofthe PTA and to motivate the COGE members were held periodically throughoutthe year, the COGE has realizedmore than halfof its 2008PTA.

A ‘cahier de charge’ for the utilization ofPA ZUCs and ZOCs has also been developed. This cahier de charge helped the COGE in its supervisory and monitoring workas well as in participatory ecological monitoring within the NPA. Some problems havecropped upon a regular basis, mainly in relation to the management committee having trouble dealing with infractions. Each time, the facilitator proved to be central in resolving such issues.

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Forest restoration – Work has focused on monitoring the established tree nurseries. The establishment ofthese community managed tree nurseries is the first step in initiating a 5 year forest restoration program that aims to restore over 300ha offorest in the critical corridors between the principal forest blocksofAmbatotsirongorongo, Ambohisampa, and Lavasoa.

Restoration is on the order of60ha per year (10ha ofwhich are MIARO funded) and includes the planting of60,000saplings. The 13fokontany in Ambatotsirongorongo haveprepared 70planting beds and cultivated 100,000seedlings; 76,000ofwhich havemet the standard quality required by the forest restoration project. As some seedlings were too small to be viable, several planting sessions havebeen planned to buyall villagers viable plants. The nextone is dueto occurin February 2009.

As the identified sites for restoration have been visited and community teams established, the first planting began in June 2008. A total of76,000saplings were planted on an area of76ha, including 51 nativespecies from 31families.

The program continuesto be based on a 5 year restoration effort, with significant in-kind support from the UK-based organization Restore UK

Additional outreach and communitysupport– Efforts to workwith local partner organizations in the development ofadditional outreach activities to support communities engaged in management of the PA continue. Activities include: training on improved agricultural practices, alternative income generating opportunities, improved health and livelihood activities including family planning and AIDs awareness, identifying and securing funds for needed community infrastructure improvements. Support to the COGE in their efforts to secure seedlings for restoration and reforestation programs has also been provided through JARIALA/DREFT and SNGF.

Facilitatethe establishmentofTsitongambarikaNPA Governance – As previously reported, the management structure for the Tsitongambarika NPA has been identified -- co-management comprised ofthree committees: • Le comitéde Pilotage (COP) • Le comitéd’Orientation et Suivi (COS),and • Le comitéde Coordination pourla Gestion de la forêtde Tsitongambarika.(KOMFITA) • For local-level management, an autonomous management structure at each commune will be integrated into the Voamieran’ny tontolo iainina (Environment Group) as part ofthe existing Communal Development Committees (ComitéCommunal de Développement CCD)

Terms ofreference for the 3committees havebeen completed, as well as an organizational chart for the overall management structure.

Since the last reporting period the Arrêtéde Protection Temporaire for TGK has been signed.

StakeholderCoordination– Workcontinueson the establishment ofthe TsitongambarikaPA. Chloë Webster has served as the MIARO point person in the Anosy region throughout the year, as well as member ofthe TGK taskforce and the new Regional PA taskforce – as ofJuly 2008. Local actor organizational meetings continueto be held monthly; JenniferTalbot ofQMM/BirdLifetaking the lead until July. ChloëWebster acted as interim coordinator for both taskforces until October 2008. National NGO Asity has since recruited a TGK coordinator who is now in place. In May of2008, JackTordoff ofBirdLifeInternational traveled to Madagascar to hold organizational meetings at both the national and local levels; the objectivesofTordoff’s visit were to (i) outline nextsteps, roles and responsibilities among partner organizations and (ii) begin drafting the full proposal to the EU for funding to establish

Page 23 Maintaining Biological Integrity of Critical Biodiversity Habitats ANNUAL PROGRESS REPORT 2008 the TGK PA. The proposal was ultimately rejected for EU funding. BirdlifeInternational has since submitted new funding proposals to support establishment ofTGK.

EstablishmentofPA – Despite the setback ofnot securing EU funding for establishment and management ofTGK, Asity has obtained some immediate funding to continue the process of establishing the TGK PA, including a Conservation Action Grant (CAG). These funds have allowed the initiation several programs ofworktoward the establishment ofTGK as a protected area: (i) a full environmental impact assessment ofTGK was started on 24 November 2008; this EIA will be completed by the second weekofJanuary 2009. (ii) The community consultation process to define the internal zoning ofthe PA – specifically the core protected zone – also has been undertaken and the validation workshop is scheduled for the third weekofDecember 2008. (iii) Delimitation ofthe forest limits in the third parcel ofTGK has been initiated.

SUB RESULTS MODULE: 1.5.Developforestrestorationfunctionsand procedures inUSAID priorityeco-regions

1.5.1. Help toimprovepolicyand/orinstitutional conditionsas necessaryinfavorofrestoration ortoreduce potential constraints,and review potential contributionofforestrestorationto conservationobjectives inUSAID priorityareas

Activity: Supportthe DGEEF todefinea national strategyforforestrestoration

Through W W F, MIARO has been supporting the development ofa national forest restoration strategy by the DGEF. National workshops held in 2007and in December 2008defined priorities for the strategy. The following issueswere identified:

a- Reinforce forestrestorationas a meansforre-connectingforestblocksandcorridors

This includes the following: • Create “biological corridors” with native species and extension ofconservation areas for ecosystem viability. • Ensure the continuation ofthe supply ofecosystem services • Reconstitute disturbed ecosystems according to the scale and the levelofperturbation.

b- Develop alternatives and createnew plantations withnative species as well as fast- growingspecies tosatisfyneeds forwoodyandnon-woodyproducts.

This includes: • Afforestation /reforestation (to be integrated to PCD) • Rehabilitation (agroforestry complex), soil conservation

Under the leadership ofthe DGEF, a meeting was planned at the end ofthe year to finalize these strategic priorities with all stakeholders.

1.5.2.Through field-testing, refine approaches toreforestation(nativeforestre-establishment, enrichmentplanting using native species, fast growing forest cover establishmentusing pioneerspecie) toreconnectorimprovedegraded connections/corridors

Various techniques and approaches are currently being implemented throughout the country. The national workshop organizedlast year by MIARO was an opportunity to present those methodologies

Page 24 Maintaining Biological Integrity of Critical Biodiversity Habitats ANNUAL PROGRESS REPORT 2008 and share them with interested partners. These different methodologies will be integrated into the national forest restoration plan. a. Developmentofan actionplan forreforestationinthe Antongilbay (Masoala/Makira) landscape based on10yearsofexperience inMasoala.

As reported in the 2008 semiannual report, during March 2008, international consultant Louise Holloway was contracted to carryout an evaluation ofrestoration efforts in the Makira-Masoala landscape. Louise has vast experience in the area ofcommunity forest resource management, and has been working on and offin the Antongil Bay region for over 10 years. The objectives ofLouise’s consultancy were to (i) to evaluate the activities ofMasoala National Parkcorridor restoration and protection efforts ten years after they were started; (ii) to extract technical lessons that can be replicated in other prioritizedforest corridor sites; and (iii) to develop/update a frameworkfor prioritizing critical forest corridor sites in the Masoala/Makira landscape and propose measures to restore/maintain these corridors.

The consultancy was successfully completed, and the consultant has submitted the final technical report. The report was validated by WCS and submitted to Conservation International in November 2008. b. MantadiaForestRestorationproject(TAMS) A more refined version ofthe techniques used at Masoala havebeen designed by Louise Holloway under the MIARO program and are being implemented under the TAMS (Tetik’Asa Mampody Savoka) project that aims to re-establish over3000hectares offorest to reconnect the Mantadia National Park with Analamazoatra and the Maromizaforest. Over150local nativespecies are now being producedin locally-runtree nurseries. The initial plantation of1,049 hectares ofland is underway with World Bank funds from the PE3(for tree planting) and CI (for the associated sustainable livelihood activities). Post PE3,revenuesgenerated from carbon credits are planned to support the activities.

During the later halfof2007and early 2008, CI hired an international consultant (note – not on MIARO funding) to help re-stimulate the Sustainable Livelihood Activities (SLAs) ofTAMS, mainly in implementing SLAs which had previously been designed by Louise Holloway with MIARO support. The consultant also workedwith communities to help them target existing sources offunding. As a result, the activity proposal submitted to the nodes small grants by fourkoloharena ofAndranolava village was approvedand is currently being implemented under the monitoring ofthe newly recruited SLA team.

CI has provided a grant to ANAE to coordinate the SLA activities at Andasibe in collaboration with the 7local implementing associations. In addition to the original SLAs, ANAE is testing the feasibility ofthe zero-tiling techniqueoften called SCV in the TAMS zone. The harvest ofrice and corn produced with these new techniques in 2008was promising compared to the tavyyield on the same type ofland.

1.5.3. Establish an actionplan forthe prioritysites and supportlocal communities, and civil societygroups inattractinginvestmentforreforestation

This year was markedby the evaluation ofhabitat rehabilitation actions that were previously organized by MIARO at Didy-Ambohilero in partnership with the local Koloharena associations.

The evaluation conducted this year lookedat mechanical solutions such as anti-erosiveactions and tree planting by Avotra in 2006.

Page 25 Maintaining Biological Integrity of Critical Biodiversity Habitats ANNUAL PROGRESS REPORT 2008

The following are the main findings ofthe evaluation: ° the vegetation (native species) planted alongside gullies caused by the illegal logging has developed and helped prevent soil erosion as expected. ° tree planting activities by the local agent mandated by Latitude Timber were not satisfactory because ofa lackoftechnical capacity in suchwork. ° other mechanical solutions were as expected (eg. wood blocksto stabilizethe soil). ° bypass channels for water diversion in cleared areas are still functional butnot enough for the whole area. ° in some areas, the re-establishment ofthe natural vegetation has developed very slowly because ofthe lackofhumidity in the soil. ° 1,500young plants exist that can be putinto soil.

Opportunities for future collaboration (post-project) with the DREFT and the local federation of COBAs and Koloharena are being discussed to ensure long-term implementation and monitoring of the action plan for Didy – Ambohilero.

1.5.4. Promoteinformationandexperience exchanges betweenpractitioners

Organize regularexchange workshops withkey actors;supportthe creationofa learning networkofpractitionersonrestoration

No formal exchange workshops were organized this year 2008. However, direct exchange and information collection were conducted among partners and implementers such as AmabatovyProject and WWF Forest Landscape Restoration.

Result Module 2: Managementeffectiveness forconservationareasimproved

During 2008, MIARO RM2 focused the provision oftechnical assistance to new protected areas (NPAs) ofthe SAPM. In addition, the guide for the protected areas management planning has been finalized and presented to DSAP and all promoters. Also, a proposed system to evaluate the management effectiveness ofprotected areas has been developed.

SUB RESULTS MODULE: 2.1. Develop and/orrefine conservationmanagementplans and otherthematicplansforProtected Areas a. Guide forthe elaborationofmanagementplanforSAPM Thanks to support provided by a senior consultant, Jean-Pierre d’Huart – who is very familiar with Madagascar National Parks(MNP) planning system – the guide on management plan development has been finalized, presented to Miaro partners and delivered to the DSAP. This guide is based on the conservation planning methodology developed by TNC, “5S”.

The guide provides guidance on the following: • instructions for each step ofthe planning process; • examples oftexts and illustrations; • internet linksto other resources; • references to technical documents

The guide also provides as accompanying documents: • a management plan template • the Miradi software (see nextsection).

Page 26 Maintaining Biological Integrity of Critical Biodiversity Habitats ANNUAL PROGRESS REPORT 2008

The structure ofthe guide was simplified and takesinto account some new issues not directly addressed by the Madagascar National Parksmanagement planning process, The new aspects are a) culture and traditions ofcommunities living around protected areas, b) the rural economy’s particular dependence on natural resources, and c) the integration ofprotected areas in regional planning. The governance and management modes are among keyaspects that are clarified in the guide. b. Miradi:AnAdaptativeManagementSoftwareforConservationProjects The RM2 team introduced new software, Miradi, which is based on TNC’s 5-S approach and gives essentially the same results as 5-S butis muchsimpler to use. WWF acquired the license for it and can transfer, according to the license rules, the rights to all partners.

Miradi is a user-friendly program that allows nature conservation practitioners to design, manage, monitor, and learn from their projects to more effectively meet their conservation goals. The program guides users through a series ofstep-by-step interview wizards, based on the Open Standards for the Practice ofConservation. As practitioners go through these steps, Miradi helps them to define their project scope and design conceptual models and spatial maps oftheir project site. The software helps teams to prioritizethreats, develop objectives and actions, and select monitoring indicators to assess the effectiveness oftheir strategies. Miradi also supports the development ofworkplans, budgets, and other tools to help practitioners implement and manage their project. Users can export Miradi project data to donor reports or, in the future, to a central database to share their information with other practitioners. The main difference between 5-S and Miradi is (i) the user interface and (ii) its flexibility.

As mentioned above, Miradi has a more accessible and comprehensible interface compared to 5-S. Moreover, Miradi offers some options that were absent in 5-S. As an example, viability analysis can be carried outin two ways, with ecological attributes or in the simple mode. This is an important feature for many protected areas in Madagascar, which require precise and appropriate data often lacking.

The use ofMiradi has been fully tested through the support that Miaro RM2 team provided to promoters in Diana, Anosy, Sofia, Atsinanana (CAZ) and Southwest Regions. Those promoters were trained in the use ofthe software. c. Environmental Education toolkits foruse by PA managementand teachers inpark peripheries Efforts continue to center on development of a national environmental education strategy that promotes the SAPM, and the production and distribution ofteaching aid materials to be used by regional education authorities, teachers, and environmental clubs in the peripheral zones ofprotected areas. In the first halfof2008, MIARO engaged Tali Klien as an STTA to assist in the development of these materials. Ms. Klein’s contract ended in July 2008, and development ofthe modules and materials is ongoing with a completion date planned for March 2009.

Toward defining and developing a national strategy for environmental education, a national workshop was held on April 9 at OLEP with the direct collaboration ofthe “Direction duDéveloppement duReflexe Environnemental” at MEFT and the “Bureau Programme Education Environnementale” at MENRS. The objectivesofthe workshop were to (i) identifythe environmental education resources already available from and used by partner organizations, (ii) identifythe strengths and weaknesses ofthese various materials, (iii) makethese materials available in a more standardizedforum, (iv)identifyareas in need of improvement or areas were there is currently a lackofmaterial/information. The workshop included 32 participants from 22 organizations. Participating organizations, associations and/or institutions included MEFT, MENRS, ONE, MNP, GTZ, ARPEGE, PBZT, WWF, CCEE, MBG, Madagascar Voakajy, CAS, GERP, Programme ANKOAY, TANY MEVA, CI, WCS, REPC, UNESCO, WORLD BANK, and USAID. As a result ofthis workshop, the participating ministries MEFT and MENRS

Page 27 Maintaining Biological Integrity of Critical Biodiversity Habitats ANNUAL PROGRESS REPORT 2008 stated their intent to create a National Committee on the Education Related to the Environment CNRE that will facilitate the exchange ofinformation in the area ofenvironmental education.

Teaching aid materials improvedand or developed during this reporting period include:

Material Content Objective Posters on water cycle, Update and improve upon materials Demonstrate the Carbon cycle, and food produced by WWF through the series ‘Ny interdependence between chain Voary’ ecological and human systems, and improve general knowledge in the areas of environment, ecological systems, and human activities. Botanical flip charts A flip chart bookthat provided information Improve the understanding of to schools and clubs on the floral diversity Madagascar’s unique floral unique to Madagascar. The book will select diversity 20representativespecies Nature guides Various guides that can be used by teachers Promote increased outdoor labs and environmental clubs to organize and as an educational tool for carry out nature visits – out door lab teachers and increase awareness experience. Les encadreurs de clubs et ofMadagascar’s SAPM enseignants seront les bénéficiaires. Le contenu décrira ce qu’il faut faire avant, pendant et aprèsla visite nature.

As reported in the semi-annual report, the environmental education activities that focused specifically in the Anosy region in 2008included: ° The creation ofand support to 4 environmental youth clubs in the peripheral zone of Ambatotsirongorongo AP - l’EPP Mitriaky,EPP Sarisambo, EPP Ankaramena et CEG de Ranopiso. The clubs focused on primary and secondary school students and method of establishment and support follow from the experiences ofyouth clubestablishment in the Antongil Bay region where there are now over 15 established youth clubs. ° Support to schools toward better integration ofenvironmental eduction modules in class curriculum. Efforts included development ofeducation modules focused specifically on conservation themes, holding environmental themed contest, education outreach on improved nutrition and human hygiene, establishment ofschool nurseries, establishment ofschool gardens, realizing nature visits with primary and secondary school students – through the youth clubsystem. ° An environmental education program planning workshop was held during May 5-12. The workshop servedto (i) introduceplanned activities for this calendar year to local partner organizations and community authorities ; (ii) mobilizeschools toward the creation of environmental clubs ; (iii) initiate a program ofenvironmentally themed contests among the schools, (iv)inform the community and school authorities ofthe recruitment ofa permanent animateurfor Ambatotsirongorongo. ° Following from this planning workshop, each school and clubwas askedto producea program ofworkfor the nextschool year. The POWs will be focused on restoration efforts, tree nursery establishment and community gardens. For Ankaramena et Manisy 04ha ofcommunity land will be targeted for restoration – with assistance from QMM and DREEFT – with efforts beginning in June. The EPP ofAnena and Sarisambo will develop community gardens. Three (3)courses on biodiversity are planned for incorporation into the curriculums ofEPP Sarisambo, EPP Anena, EPP Ankaramena, EPP Midriso, EPP Manisy and CEG Ranopiso. The

Page 28 Maintaining Biological Integrity of Critical Biodiversity Habitats ANNUAL PROGRESS REPORT 2008

developed themes will focuson general environmental issues, flora and fauna of Ambatotsirongorongo and forest conservation. d. A marine ecological monitoringtechnical frameworkforMadagascarNational Parks In August 2008, training on scuba diving tookplace in Maroantsetra for 16ANGAP/MNP agents working in the 4 existing marine parksmanaged by Madagascar National Parks– Nosy Hara, Mananara, Masoala, and Sahalamalaza. The training was led by certified dive instructor, Bemahafaly Randriamanantsoa, and divegear kits were purchased to provide needed equipment during the training. Ofthe 16Madagascar National Parksagents participating, 12 passed the examination ofcertification - the remaining 4 agents will be retrained in early 2009. Future planned trainings for Madagascar National Parksagents includes: training on data acquisition and analysis, and data storage and management.

As a direct result ofMIARO support, an all-Malagasy team offully trained divers was created who are able to carry outa full range ofMPA monitoring activities, withoutthe need for any outside assistance. This team is equipped with top ofthe line diveequipment, which is maintained by WCS/MIARO staff to be used at cost for any MPA monitoring activities in Madagascar. A schedule has been established for the annual monitoring ofall Madagascar National Parks-runMPAs, which will include a significant component ofcapacity building.

In parallel, a workshop on MPA monitoring was held in September 2008. The workshop brought together all Malagasy stakeholders involved in MPA management to better cooperate on monitoring activities. International experts expounded on the concepts of ecological and socio-economic monitoring during three days. This first workshop ofits kind in Madagascar raised many issues on monitoring practices. A standard model ofmonitoring methodology is now available for marine ecological monitoring and for socio-economic monitoring. e. Continue todevelop adaptiveecological monitoringpractices forPAs and NPAs including integrated community-based ecological monitoring In follow up to field-based training in ecological monitoring protocols introduced in the Makira and Ambatotsirongorongo PAs, monitoring practices are now focused on developing protocols for community based monitoring (COBA). Several partner organizations, including the Centre Valbio, Durrell, CI and WCS have developed protocols ofvarying similarity, and a system ofmore scientific verification ofthe COBA’s monitoring in now necessary. To this end, a training and methodologies workshop was held on December 16-17in Antananarivo. The workshop servedto set upa networkof sharing experiences on community based ecological monitoring. Efforts continue in partnership with WWF to further help the DGEF monitoring team develop and set upa uniform monitoring protocol for NAPs.

Efforts continueto refine the ‘biodiversity profile’ ofMadagascar National Parksnetworksites. A book on the gap analysis ofthe current Madagascar National Parks networkon faunal biodiversity is now finalized – detailing how far the current Madagascar National Parks network ofprotected areas contributes to biodiversity conservation for identified target species. For 15 selected National Parks that represent the major Madagascar ecoregions, detail is given on faunal biodiversity, level of protection and threats, and recommendation are offered to improvethe management ofthese faunal species.

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SUB RESULTS MODULE: 2.2. Improve and fully implementannual programmaticwork plansforProtected Areas a. AssistDGEF /DSAP indevelopingevaluationsystem forSAPM. At the international level, many tools are available to assess the effectiveness ofthe management of protected areas. More precisely, the frameworkofthe WCPA- IUCN provides the directivesto evaluate the effectiveness ofthe management ofa protected area. The RAPPAM, a methodology developed by WWF, assesses the efficiency ofa web ofprotected areas, and the PAMETT (WWF- World Bank)that provides managers the opportunity to conduct a self-assessment ofthe management effectiveness of their protected area.

To date, one unique system to assess the management effectiveness ofa protected area is used for Madagascar. It is known as the “management effectiveness index”. The management effectiveness indexis used by the Madagascar National Parks system. However, this system covers only protected areas classified in the categories I, II, IV. Therefore it is important to find a single system that can be used for the other categories (III, V, VI) as well.

A tool based on the PAMETT was developed by a consultant from IUCN to include specific information for the new protected area categories (III, V, VI). The difference between the previous questionnaire and this new one is that the number ofquestions increased (31 to 43questions). The concern now is that the information gathered is not comparable dueto the different questions the two versions include.

This tool was presented to DSAP and promoters on December 1, 2008. Two main points were raised: • the need for comparability between sites, and • the need for continuity with the current management effectiveness index used by Madagascar National Parks

It was recommended that: • the two systems will both be used (in parallel) to evaluate the management effectiveness of each protected area. On the one hand, the management effectiveness indexwill help to compare sites and then help to havesomething comparable within the system ofprotected areas. On the other hand, the proposed tool will aim to assess one protected area according to its category (I, II, III, IV, V or VI). • capacity building be undertakenthat aims to present and teach how to use the management effectiveness indexor the new system, because ifthe management effectiveness indexis well known by Madagascar National Parks, the other operators are not aware ofthis assessment.

For the SAPM, the system is composed ofsites managed by Madagascar National Parks (definitive status) and new protected areas. Madagascar National Parksalready applies this assessment tool to its protected areas. Now there is a need to use the same system for the other, new protected areas. It should be noted that the management effectiveness indexis one ofthe official MAP indicators and therefore this system is required throughoutthe SAPM. b. Continue todevelop trainingmodules forPA and NPA managersbased ontrainingneeds expressed byMadagascarnational ParksandMEFT In-service training and capacity building initiativesfor the Malagasy government entities most involved in conservation, for instance Madagascar National Parks (MNP) and the General Direction of Environment and Forests (DGEF), consists mainly ofrelatively brieftraining workshops, with the aim ofdelivering specific sets oftechnical skills over short timeframes. These courses usually address

Page 30 Maintaining Biological Integrity of Critical Biodiversity Habitats ANNUAL PROGRESS REPORT 2008 specific, focused needs (suchas training in the use ofsoftware packages, etc.). In most cases, such short courses cannot provide a larger conceptual framework within which to evaluate biodiversity conservation problems.

To address this issue, Phase II ofREPC from 2008-2010aims to (i) create opportunities for broad exchange ofinformation and strategies among conservation educators and practitioners; (ii) develop a series of multi-component training modules, with each module containing both technical and theoretical background and examples ofpractical application ofa particular topic; (iii) develop and support long term in-service training for government conservation professionals more specifically MNP and DGEF.

REPC workplan for this year concerns two main activities: • Develop and disseminate training modules on biodiversity conservation • Improvetraining programs in biodiversity conservation within government institutions such as MNP and DGEF with all DREFTs

Training Modules – Module development is linked to priority topics identified by Madagascar National Parks and DGEF such as protected area design, planning and management, community resource management, rural poverty and biodiversity conservation, ecological restoration, control of invasivespecies, and geographic information system. In addition, since consortiummembers WCS and CI (along with WWF) havebeen working in Madagascar with funding from the MacArthurFoundation to organize and hold a national-level workshop on the impacts ofclimate change on Malagasy biodiversity, REPC has developed modules and case studies based on the outcomes ofthis workshop. By the end ofthis year the following modules developed in collaboration with MIARO will be available for Madagascar National Parks, DGEF and all REPC partners from academic and professional institutions: ° Protected area design, and planning, ° Protected area management, ° Ecological restoration, ° Control ofinvasivespecies, ° Geographic information system

Since 2005, REPC set up sixresources centers in sixex-provinces ofMadagascar. Resource centers serveto dispatch free printed and electronic versions ofmodules to partners. From May to September 2008, REPC distributed printed and electronic versions to more than 80institutions in Antsiranana, Mahajanga, Toamasina, Maroantsetra and Toliara. Each professional institution received a printed version of20 existing modules, a CD with electronic versions ofmodules, and pdfpapers on biodiversity conservation. TrainingPrograms – Additional activities related to training programs undertaken by REPC with support from MIARO include:

Partnership with DGEF and MNP: Since January 2008REPC organised several meetings with DGEF and MNP to develop partnerships. As result, REPC collaborated with The General Secretary ofthe Ministry ofthe Environment and DGEF to implement the DGEF training plan published in 2007. REPC will be in charge ofbuilding capacity on biodiversity conservation, and drafts ofa collaboration agreement havebeen produced at the MNP and DGEF level.

Supporting MNP and DGEF in-service training: REPC is supporting DGEF to develop an in-service training system. A core of15 trainers was identified at DGEF to serveas an initial capacity building unit. This unit will be in charge ofupdating a training plan and training technicians from DREFTs. At MNP, REPC is working with the existing in-service training at the department ofhuman resources.

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Training oftrainers and implementation oftraining plan: From July 1st REPC, in collaboration with the DGEF training unit, updated the training plan by integrating new needs resulting from new structure and attribution ofeach department ofDGEF. REPC has trained trainers on activetraining approaches, helped them to understand REPC training module content and components, adapted modules to fit needs oftrainees, and developed training tools.

Training oftechnicians at DREFT and regional direction ofMNP: During September 2008, REPC trained 30technicians from DREFTs ofSAVA, DIANA and SOFIA on sustainable use ofresources and biodiversity conservation. A field trip to Ankarana National Park allowed trainees to identifydifferent habitats and to illustrate alpha and beta diversity. It was an opportunity to discuss with parkmanagers aboutdaily management activities. A one-day training with local associations at Antsahampano mangroves informed trainees ofthe importance and value of ecological services, and ofthe challenges and constraints in community management systems in Madagascar.

From December 8 to 12, REPC trained agents from DREFTs in Androy and Atsimo Andrefana Regions on conservation ofthe biodiversity ofthe south. c. Provide supporttopriorityNPA indevelopingoverall managementplans, monitoringand evaluationsystems. There has been a progressive and interesting evolution in methodology in how NPA issues are addressed. Beginning with Menabe-Antimena, essentially all stakeholders were involved at the initial analyses stages, but this narrowed to scientific and technical expertise only when we movedinto 5-S. The final document is shaping up very well and the Fanamby/Durrell team is in the phase of incorporating last missing information on the “transfert de gestion” scheme. A final workshop aiming to mold the final version is scheduled in July 2009.

Then, this experience was used to develop the Ifotaka-Nord and Ankodida plans, and a mechanism was set in place by local WWF staffto discuss the results and proposals regularly with the region and local communities.

For the new northern sites, SAGE and CI helped to establish three commissions: (i) biodiversity and threats, (ii) social, economic and cultural and (iii) management and governance. Important workhas been done on analyses during two missions, and the analyses seem to be essentially complete. All three commissions meet and share ideas at least once on every mission.

The Region has been present for most ofour analyses. At least two ofthe focal NPAs face a serious charcoal problem and all recognize that only a regional initiative could solve this issue. In addition, several commune mayors in the north joined ourteam periodically and askedfor similar support from us for additional sites that are sacred, in good shape and biologically significant. These requests were unsolicited and at least one mayor received DREFT endorsement. This seems to us an excellent opportunity to have MIARO help Diana develop a regional vision for biodiversity that could be integrated into its MAP. For each ofthe three commissions, a person that will write down all the analytical processes has been identified. They will then submit their writings to a PA expert consultant that was hired specially to consolidate all the appropriate information needed for the drafting ofthe document. Dealing with the analysis per se, the biodiversity commission has finished developing the conceptual model for the Montagne des Français PA and has initiated the threat ranking process. The commission will issue a memo that will highlight the implication ofthe social, economic and cultural issues in the deterioration ofthe conservation targets. This paper is very helpfulin providing the SEC

Page 32 Maintaining Biological Integrity of Critical Biodiversity Habitats ANNUAL PROGRESS REPORT 2008 commission with bridging elements on which it will ground its in-depth analysis. In this way, the two commissions will not driftaway from each other in their approaches.

Thanks to the inclusive visions ofall ofthe NPAs team, the management plans that are emerging at present are also very inclusiveand capture the spirit ofgrassroots participation and co-management. To that end, the management plan design can still be improved.

Environmental Impact Assessment (EIA) of Ankodida and Ifotaka Nord protected areas were conducted and the environmental and social management plans (PGESS) were also produced. ONE as the environment regulation body in Madagascar will follow upand conductevaluation mission. d. Settingupintegrated managementofworld heritagesites ofhumidforestofAtsinanana Support has been provided to the MEFT and Madagascar National Parks to develop the Integrated Management Plan for the Ala Atsinanana World Heritage Sites. During June, the process ofupdating the conservation targets, threats and strategic priorities for Andohahela national parkwas completed. The same process will be adopted at the other 4 parksin the World Heritage cluster. The Interregional Direction ofMadagascar National Parks in Toliara very recently also solicited support for the Mikea Protected Area Management Plan and MIARO RM2 certainly will comply.

Result Module 4: Sustainable Financing Mechanisms Mobilized and Operational

SUB RESULTS MODULE: 4.1. Expand and develop managementcapacityofMalagasy Environmental TrustFunds/Foundations

4.1.1 - LONG-TERM SUPPORT & TECHNICAL ASSISTANCE TO TANY MEVA FOUNDATION FOR INSTITUTIONAL DEVELOPMENT, STRATEGIC PLANNING, AND DEVELOPMENT OF NEW SUSTAINABLE FINANCING MECHANISMS

For the 2008calendar year the MIARO contribution continued to focuson the increase ofTany Meva resources such as money, skills, information and networking. Specific results achievedduring 2008are the following: a. Assistnew boardas required tosupportitsoperations and ensurethateffectivegovernance structureisinplace. Provide trainingandassistance as needed During the last calendar year, the Tany MevaBoard was presented with a draftinvestment strategy that updates the current approach, which is not delivering optimum returns. The strategy outlined moves the Board should consider to improvethe returns on Tany Meva’s capital and protect it against erosion ofvalue. Draftterms ofreference were written to permit the contracting ofa management firm to review Tany Meva’s current structure and operations and recommend structural changes and develop manuals consistent with the new operational thrust. A consultant was hired by Tany Meva– under the recommendation ofthe newly formed Tany Mevaboard and with the support ofMIARO – to assist in the drafting ofa new 5-year strategic plan for the foundation. Since the last reporting period this strategic planning document has been completed and adopted by the Tany Mevaboard. b. Provide training and orientationtoecosystem service markets,especially the emerging marketforvoluntaryemissionreductions. As reported in the semi-annual technical report for MIARO, Tany Meva hosted a forest carbon workshop during May 13-21 with the UK-based organization Bioclimate Research and Development (BRD) and their program Plan Vivo. Plan Vivooffers a methodology for developing community-based forest carbon projects as well as access to markets and buyers. Given the Plan Vivo structure and

Page 33 Maintaining Biological Integrity of Critical Biodiversity Habitats ANNUAL PROGRESS REPORT 2008 potential for capacity building, development ofa Plan Vivoprojectmay be a usefulapproach for Tany Meva as part ofits sustainable financing portfolio. The program would fit well with the current reforestation thrusts ofthe organization and take advantage ofTany Meva’s status as a trust fund.

Details ofthe Plan Vivo workshop are provided in the semi-annual technical report. Since the workshop, Tany Mevahas been working on the development ofa portfolio ofPlan Vivoprojects that Tany Mevaintends to submit for evaluation. While this portfolio is still in development, Tany Mevahas submitted several project information notes (PINs) to the UNEP CASCADe program for community conservation related to forest and land use management. The PINs focused on community restoration and reforestation projects (3PINs), REDD projects (2 PINs) and renewable energy sources (2 PINs). Tany Mevawill hear backon these submitted PINs before the end ofthe year. The 3PINs submitted for restoration and reforestation projects can be adapted for consideration by Plan Vivo. Tany Meva has also submitted PINs to USAID for Climate Change and Microfinancing through the USAID Development Grant Program. The PINs involve an expansion of microfinancing work already underway in the Antongil Bay Landscape.

In July 2008Tany Mevajoined other Madagascar partner organizations in attending the KATOOMBA Group training workshop in Tanzania. Organized by the Ecosystems Market Place Group and the WCS-led Translinksprogram, the workshop focused on PES projects and advances in Africa. c. Provide additional supporttoenhance the qualityofthe TanyMevawebsitetobringittoan international standard Technical assistance continues to be provided to Tany Meva for media materials and website development.

4.1.2 LONG-TERM SUPPORT AND TECHNICAL ASSISTANCE TO MADAGASCAR FOUNDATION FOR PROTECTED AREAS AND BIODIVERSITY (MFPAB) FOR INSTITUTIONAL DEVELOPMENT

The keyresults are: ° The Foundation has secured the approval and management ofthe debt reliefagreement between the Government of France and Government of Madagascar, thus current commitments surpass the foundation’s self-set goal of$50Million capital. ° Development ofDraftPrioritization Plan pending finalization. ° Development ofDraftStrategic Plan pending finalization. ° Development ofDraftCommunication Document pending finalization.

Finalization of a communication strategy depends largely on the Strategic Plan as well as the prioritization criteria and will bolster the implementation ofboth. This is also an update ofa prior communication plan (from 2005) that was launched for the initial years ofthe Foundation and is intended to lay the basis for the coming years. Based on the communication plan, communication and marketing priorities havebeen drafted through the end ofthe year 2008.

Develop prioritizationpolicy:Finalizingand implementingselectionand prioritizationofPAs forFoundationsupport.

MIARO provided technical assistance to the Foundation to develop a frameworkthat assesses each protected area based mainly on three criteria: (1) biodiversity and viability (2) management and governance, and (3) labels. Following these three categories, an analysis was conducted for all the protected areas ofthe SAPM that had already obtained final (ie. MNP managed sites) and temporary status.

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For the protected areas with final statuswe used the three criteria, whereas for the protected areas with temporary status, we only used two criteria (biodiversity and viability, and labels) because for the protected areas in advanced stage ofcreation the management and governance effectiveness can not yet be judged.

The data we used for this evaluation comes from different sources such as the databases ofMIARO, IEFN data, Forest Cover, Key Biodiversity Areas, Important Birds Areas, Madagascar National Parks reports and surveys ofoperators working with new protected area sites. However, for the new protected areas there is a need to improvethe data, as knowledge on species is increasing through more complete species inventories and better databases.

The results ofthis analysis provide the Foundation with a ranking system for their investments in protected areas that can be applied to both the MNP networkand the other new protected areas as needed..

SUB RESULTS MODULE: 4.2.Build oneffortsmade and cooperatewithotherEP3 actorsto strengthenpotential sources ofincome forforesthabitatconservation

4.2.1. TECHNICAL SUPPORT TO THE WORKING GROUP ON SUSTAINABLE FINANCING – DEVELOPMENT OF A SUSTAINABLE FINANCE FRAMEWORK FOR THE DEVELOPMENT OF INITIATIVES FOR FINANCING FOREST CONSERVATION IN A RANGE OF PROTECTED AREAS AND IMPLEMENTATION OF ACTIVITY

The responsibilities ofthe Comité CDIFiDe have largely fallen to the new Service de Pérennisation Financière (SPF) that is directly under the SG in MEFT and is tasked with ensuring the financial sustainability ofthe environment activities that are under the leadership ofMEFT.

The Chefde Service, AbdoulCheikhAbdallah, Directeurdes Etudes and CoordonnateurGénéral des Projets ofthe former Ministry ofTourism, has been appointed. Three highly motivated agents from the Department ofWater and Forest and from the Ministry ofTourism havejoined the team.

MIARO hired a technical assistant, Henri Rabesahala, to advise and accompany the SPF team in coordinating the many environment sustainable financing initiatives. The objectives ofthe team are twofold: to make sure the funding needs ofthe MAP’s environment commitment are met and to increase the percentage offunding from sustainable financing instruments.

The immediate targets ofSPF include the consolidation ofall actions for the development of sustainable financing instruments, the identification ofthe costs and available funding ofthe MAP activities, and the development ofa strategy to fill in funding gaps. Theses constitute the nextsteps of the unit.

The main challenges ofthe consultant pertain to the setting up ofthe unit, including securing its budget, supplying equipment for the office and training the team. Besides, the limited access to the Minister and the Secretary General could sometime become an impediment to a fast decision making process. MIARO will continueto provide technical assistance as well as separate training for the SPF.

The main achievements ofSPF to date:

ACTIVITIES ACHIEVEMENTS OBSERVATIONS 1. 1. SPF concept developed
Collaboration based on solid working relationships Administrativeand 2. PE3’s 221b budget revised
Appropriation ofobjectives by the unit with TA from consultant financial installation 3. SPF office installed

Page 35 Maintaining Biological Integrity of Critical Biodiversity Habitats ANNUAL PROGRESS REPORT 2008 ofSPF 4. Staffrecruited
Need to empower SPF to collaborate directly with partners and 5. Stafftrained donors
SPF operations is important and urgent
Need long-term commitment ofSPF team
Need for training ofsustainable finance team 2. 1. Search for similar policies from
Sustainable Financing Policy: Strong sign ofcommitment by the Revision of other countries Minister Sustainable
Need for transparent and participatory process Financing policy 3. 1. Individual meetings with
Strong expectation from partners that Ministry will takethe lead Coordination of sustainable financing actors to coordinate actions sustainable 2. Participation at SWAP meeting
Willingness ofpartners to support Ministry to coordinate financing activities 3. Proposal to organizethe
Sustainable financing is an important issuein SWAP process governance ofSWAP 4. 1. Participation in USAID Criteria and choice ofinstruments refined, namely potential Sustainable stocktaking exercise revenues and their sustainability financing status 2. Identification ofopportunities External study on each instrument selected board based on stocktaking results 5. 1. Support for BioCarbon Fund
SPF agent specialization on one or more instruments Operationalization CAZ project
Collaboration with one or two partners for each instrument ofsustainable 2. Development ofthe
Appropriation by SPF ofeach instrument financing management and administrative
instruments guide for the BioCarbon Fund CAZ Project 3. Support for WWF to develop green tax 4. Discussions with Tany Mevaon BBOP 6. 1. Contact with MAP secretary
Variation in estimation ofcosts Financial needs and general to discuss the evaluation
Need to evaluate real costs ofEP3and the actors’ capacity to resources status method used absorb funds board

4.2.2. UNDERTAKE BIODIVERSITY ECONOMIC ANALYSES AND ORGANIZE FORUMS TO INCREASE UNDERSTANDING OF THE VALUE OF CONSERVATION IN MADAGASCAR a. PaymentsforEcosystem Services An analysis ofecosystem service valuesand the potential for developing ecosystem service payments in the Antongil Bay was completed and submitted in early 2008. WCS also produced a short film on the valueofMadagascar’s natural capital and its contribution to the economic development ofthe country. The film was projected during the recently held ‘Presidents Round Table’ on private sector investment to the country. Two hundred copies ofthe film were also made available for distribution to all participants ofthe round table meetings.

Through the participation in meetings on PES in Madagascar (sponsored by CI) and the Katoomba group in Tanzania (some participants were sponsored directly by USAID), a more comprehensive understanding ofPES activities has been developed and included in a broad assessment ofPES capacity in Madagascar.

In September 2008, CI and the University ofVermont (UVM) Ecoinformatics Collaboratory & Gund Institute for Ecological Economics organizeda 3-day workshop to present the Artificial Intelligence for Ecosystem Services (ARIES) decision making tool. ARIES is a web-based tool to assist in rapid ecosystem service assessment and valuation. During an ARIES session, users can develop an environmental asset portfolio that details the spatial distribution ofecosystems and ecosystem services in the area, their potential and realized economic values, possible trends for future values, and the causal relationships that linkthe valuesto each other and to actual or potential policies. The directions

Page 36 Maintaining Biological Integrity of Critical Biodiversity Habitats ANNUAL PROGRESS REPORT 2008 and type ofoutcomes ofan ARIES session are entirely decided by the user. The workshop convened a groupofpotential ARIES users including keyUSAID alliance members from the priority ecoregions to discuss the applications ofARIES in Madagascar and to receive input for improving the tool. In addition to focusing on the ARIES tool, the workshop provided an opportunity for different participants to present the work done to date on PES around the country. Discussion ofthe data needed for ARIES also helped to clarifyfuture research needs on PES within Madagascar. b. PA-BAT assessment. The Poverty Assessment-BAT is a new tool developed by WWF, Equilibrium and partners aiming to help collate information on the full range ofcurrent and potential benefits ofindividual protected areas. It is a contributory methodology for the overall Arguments for Protection series, but is also a stand- alone tool that will be ofwider use to the protected areas community. The PA-BAT has been primarily designed for use by protected area managers to workwith stakeholders to identifyimportant values and the benefits that they bring to a range ofstakeholders, from local to global.

The PA-BAT can also be used by local communities to identifyvalues/benefits and by protected area advocates, suchas NGOs, to help promote the range ofbenefits a protected area can bring.

We translated the questionnaire in French so that it could be easily used by managers ofprotected areas. An Excel version is already available and ready to use and for dissemination for the assessment ofeach protected area. MIARO plans to provide training in the use ofthis tool so that it can be adopted in tandem with the Management Effectiveness Indexmonitoring tool (see RM2).

4.2.3. DEVELOPMENT OF CARBON RELATED PROJECTS FOR FOREST RESTORATION AND FOREST CONSERVATION

MIARO, through CI and WCS, puta major emphasis on developing site-level REDD projects during 2008, to ensure that the demonstration projects that havebeen started at Makira, CAZ and COFAV are designed to the highest possible standards. As part ofthis work, MIARO and CI engaged Winrock International to provide training on taking field-level carbon measurements and for assistance in developing project design documents acceptable for Voluntary Carbon Standard certification. VCS verification is critical to establishing a recognized REDD project. The training was brokenin two parts: ° Classroom training where all the participants were briefed on carbon forest project background, financing and implementation. Information was then presented on how to carry out baseline carbon measurements in the field – the methodology used is the methodology for ‘Mosaic’ type deforestation developed by the BioCarbon Fund. ° Field training followed, this was conducted in the Makira Forest Protected Area. One weekof field workwas dedicated to practice and in-depth explanation ofevery step in the methodology.

Following this training field teams are collecting the information that is necessary for the projectdesign documents and the BioCarbon fund and CI have submitted the methodology as applied to CAZ for comment by VCS (see section on CAZ below for more details). Once these comments have been received, the ProjectDesign Documents for the three projects can be completed and submitted for validation. a. MakiraForestProtected Area In preparation for selling verified emission reductions (VERs) from Makira, WCS collaborated with CI to bring WinrockInternational to Madagascar as described above.WCS currently has field teams collecting the forest carbon measurement data that is required for the PDD development.

In parallel to this, WCS continuesto workwith SmartWood ofthe Rainforest Alliance to complete the

Page 37 Maintaining Biological Integrity of Critical Biodiversity Habitats ANNUAL PROGRESS REPORT 2008 project design verification using Climate, Community and Biodiveristy Standards (CCBS). A pre- evaluation ofthe Makira projecthas been completed by SmartWood, and field-based verification efforts are now planned to takeplace before July 2009.

In June, a landmarkarrangement between the GOM and WCS was signed that givesWCS – through the Makira Carbon Company – the authorization to market an estimated 9.1 million tons ofCO2 equivalents (CO2e). This agreement will result in at least 75% ofall proceeds going to support conservation and community development in the Makira region. In addition the objective is to use funds to strengthen Government capability as well as the carbon financing capabilities ofTany Meva. WCS also has received significant interest from a variety ofbuyers in the marketing ofMakria’s CO2e. b. Carbonmonitoringtechniques inCAZ andCOFAV MIARO and CI are also supporting the MEFT to establish REDD projects in CAZ and COFAV, by evaluating carbon stocksand developing the Project Design Documents (PDD) necessary for VCS certification. The method that is going to be used was developed jointly by BioCF and Conservation International, based on the guidance document ofthe Voluntary Carbon Standards. The method encompasses 9 steps towards projectvalidation: ° Step 1. Definition ofthe boundaries ofthe proposed REDD project activity: spatial boundaries, temporal boundaries, carbon pools, and sources ofgreenhouse gas emissions. ° Step 2. Analysis ofhistorical land-use and land-coverchange in the reference region, leakage belt and project area going backabout10-15 years from present. ° Step 3. Analysis ofagents, drivers and underlying causes ofdeforestation, and sequencing of the typical chain ofevents leading to land-use and land-coverchange. ° Step 4. Projection ofthe rate and location offuture deforestation in the reference region, ° leakage belt and project area in the withoutproject case. ° Step 5. Identification offorest classes in the areas that will be deforested under the baseline scenario and ofthe land-use classes that will replace them. ° Step 6. Estimation ofbaseline carbon stockchanges and, where forest fires are included in the baseline assessment, ofnon-CO2 emissions. ° Step 7. Exante estimation ofactual carbon stockchanges and non-CO2 emissions under the project scenario. ° Step 8. Exante estimation ofpossible leakage dueto GHG emissions associated to leakage prevention measures and displacement ofbaseline activities. ° Step 9. Exante calculation ofnet anthropogenic GHG emission reductions.

Although most ofthe steps can be done simultaneously, some haveto follow a specific order as the nextstep depends on the previousone. Step 1 is intricately linkedto the zoning ofthe protected area and to the management plan and has therefore been completed. Data for step 2 exists already for three dates from the deforestation analysis undertaken by CI for the Jariala project; however we will also obtain and use 2008satellite images to improvethe data available.

Modeling(steps 3, 4 and5) Steps 3and 4 were completed in-house. Modeling offuture deforestation and its location was determined using the Land Change Modeler (LCM) module ofthe IDRISI software. Projections were based on several deforestation agents such as proximity to roads, proximity to settlement, proximity to rivers. Detailed maps ofprojected deforestation patterns overthe next30years havebeen producedfor several scenarios

Field datacollection(step 6) CI contracted 6local consultants to help collect the data in the field. They followed the training provided by WinrockInternational and havecompleted data collection in the CAZ corridor (unless

Page 38 Maintaining Biological Integrity of Critical Biodiversity Habitats ANNUAL PROGRESS REPORT 2008 comments from VCS determine that more sampling is required) and will be completed in COFAV in the first quarter of2009.

ProjectDesignDocument(steps 7-9 plusa descriptionofall steps andthe managementplan) A draftofthe PDD for CAZ has been written and submitted for comment on nmethodological issues to the VCS. It is being revised in parallel with updates in the management plan and with updated field carbon measurements now that the data is available.

Workon the CAZcomponent is almost finished, we will be doing the same process for COFAV corridor starting early 2009. c. TAMS restorationcarbonproject Developmonitoringsystem – monitoringmethodologyiscreated forTAMS The BioCarbon Fund is currently developing the TARAM tool, which will serveto (1) translate the PDD into an Excel file that is user friendly, and (2) evaluate the projectachievements and results. TAMS has been dialoguing with BioCarbon Fund to provide comments on the tool and to ensure its applicability to TAMS.

Develop/updateprojectdocuments– TAMS andCAZ PDD Subsequent to the visits by the BioCarbon Fund and the CI/DC team, the PDD needs to be revised to include the new definition ofthe project area, the document format, projectemissions considerations, etc. The document revision is currently ongoing in parallel with the development ofother essential documents/tools, such as the map ofthe project area and the agreement between the government and the land owners. The TAMS PDD should be finalized by the end ofApril 2009.

Provide supporttothe GOM as needed MIARO plays an activerole in supporting GOM for variouscarbon-related and climate change-related activities. For instance, MIARO has supported the preparation ofthe R-Plan for Madagascar, as well as played a key role in preparing COP 14 that was held in Poznan, Poland. d. UNFCCC COP 14 inPoznan/Poland As a signatory to the United Nations FrameworkConvention on Climate Change since 1998, the Government ofMadagascar is engaged in finding and implementing climate change mitigation and adaptation measures. The Ministry ofEnvironment, Forests and Tourism (MEFT) has been particularly focused on forests since their loss is an important source ofemissions and their existence provides environmental services that are the main ingredients needed to adapt to future change. To advance its position in the global forum relating to climate change and further develop a national strategy to address climate change, a Madagascar Government Delegation attended the UNFCCC 13th Conference ofParties held in Bali Indonesia in December 2007.To further advance the Government’s program of work toward implementing climate change mitigation and adaptation measures at the national and subnational levels, MEFT created a Climate Change Service in 2008 and a working group of government and non government partners focusing specifically on REDD. Madagascar currently has several subnational demonstration projects that advance variousaspects ofa REDD approach to forest conservation and climate change. Following on these advances made, and in order to stay involved in the global forum on REDD and climate change adaptation and mitigation measures, a Madagascar Government Delegation attended the UNFCCC 14th Conference ofParties held in Poznan Poland during December 1-12th.

MIARO is a significant partner in the Government’s efforts to develop a national climate change mitigation and adaptation strategy. The development ofa national REDD strategy that brings lessons learned from the subnational (site) level to bear on national strategy and policy is a principal

Page 39 Maintaining Biological Integrity of Critical Biodiversity Habitats ANNUAL PROGRESS REPORT 2008 component to these efforts. The Makira and CAZ Forest Projects offer functioning models on protected area design, community engagement in protected area management and sustainable financing that serves to inform national level decision making.

4.2.4. ASSIST THE GOM DEVELOP OTHER NEW FINANCIAL INSTRUMENTS FOR FOREST HABITAT CONSERVATION INCLUDING THE INTRODUCTION OF GREEN TAXES TO FINANCE THE ENVIRONMENTAL SECTOR

The MIARO contribution helped to further develop the implementation ofgreen taxes to finance the environmental sector through transferoffunds for use ofecosystem services ofthe country.

In preparation of implementing green surcharge to finance the environmental sector, MIARO continued to work with the government and experts to develop a strategy, relevant studies and consultations and an updated action plan. A consultant, Joy Hecht, arrived in January to carry out a follow-up study related to tourism based surcharge to support protected areas and/or biodiversity. A surcharge on air transportation was identified as the priority mechanism in a first report and was taken as the basis for follow-up. Further consultations with the MEFT led to the development ofan action plan to assess willingness-to-pay oftourists and operators, modalities to introduce the surcharge including legislation into the Finance Law.

Preparation oflegal assessmentdocuments as necessarysuch as "Decree" and / or Amendmentto"Loides finances" includingtranslationintoMalagasy The legal assessment for a "Decree"and/or "Amendement"to Loi de Finance is still necessary but requires more details on income management, distribution and investment. Some ofthe answers will result from current studies including price responsiveness and parktourism management costs. Dueto the considerations for the further studies, developing a legal text was seen to be premature. Further, collaboration with ONTM revealed that they are also targeting a fee on air transportation for budgetary support and a review oflegislativeconsiderations is part ofthat study.. The development oflegislative textwill follow the studies and further discussions with members ofthe Government.

Follow-up studies tosupporttourism related airtransportstudies torationale forairtransport surcharge

In agreement with the MEFT, MIARO continued to workon building the case for green surcharge. Exchanges with tourism sector including ONTM and other donors were successfully developed and several studies were co-financed, which ensured greater coordination and integration. To build on previous experience and to identify information gaps, MIARO researched and gathered previous studies carried out in Madagascar and comparable examples around the world. This was the basis to develop terms ofreference aiming at assessing the financial linkbetween protected areas, biodiversity and tourism sector development in Madagascar as well as developing partnership with the PIC – WB to interview visitors at the airport. This study will need to be completed with an assessment ofpark tourism management costs as well as more detailed propositions regarding how to manage, distribute and invest income.

4.2.5. ENABLE ENVIRONMENTAL ACTORS TO OBTAIN INCREASED BUDGETARY ALLOCATIONS FOR THE ENVIRONMENTAL SECTOR THROUGH HIPC/PRSP BUDGETARY ALLOCATIONS AND NON-HIPC DEBT BILATERAL DEBT FOR NATURE SWAPS

MIARO facilitated the signing ofan agreement (C2D-Contrat Désendettement Développement) between the Government ofMadagascar and the Government ofFrance completed in June 2008. This agreement provides ¤ 13 million over 5 years to the endowment ofthe MFPAB (Madagascar Foundation for

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Protected Areas and Biodiversity), meaning support for the protected areas'recurrent costs will be available long term. This achievement should be recognized as the largest debt-for-nature swap agreement in Madagascar history. Negotiating this type ofdeal requires consistency, great coordination within actors including the two countries - with the different ministries, with civil society; and very specific political, financial and technical conditions in place. This option was identified under MIARO project in 2005and carried a lot ofuncertainty. MIARO embarkedin a long journey to cross barriers step by step and bring the different actors to consider a potential allocation to the protection of biodiversity. The MFPAB was instrumental in the closing ofthe agreement. This achievement is the success ofthe environmental actors supported by MIARO since the beginning.

SUB RESULTS MODULE: 4.3. Stimulateinvestmentforbiodiversityconservation

4.3.1. PROMOTE SITE- BASED FUNDING FOR AP PARTICULARLY W ITH “NON-TRADITIONAL DONORS"(ZOOS AND ZOO CONSORTIA) LINKED WITH MARKETING STRATEGIES AND BUSINESS PLANS OF THE TWO CONSERVATION FUNDS AND THE PROTECTED AREAS

WCS continuesin its collaboration with Zoo Zurich in its support ofthe Masoala National Park.Zoo Zurich has recently renewed its agreement with the GOM as well as with WCS for continuedsupport ofthe Park,which provides a minimumpayment of$100,000per annum.

4.3.2PROMOTE GREATER PRIVATE SECTOR PARTICIPATION IN CONSERVATION THROUGH DEBT AND EQUITY FINANCING FOR COMMERCIALLY VIABLE BIODIVERSITY BUSINESSES AND ENTERPRISES IN MADAGASCAR

WCS has continued to develop a community-integrated program to produce conservation cotton in peripheral landscape ofthe Mikea National Park, southwest Madagascar. This program was partly funded by MIARO in its early start-upphase. WCS, with assistance from the World Bank,also recently submitted a large funding proposal to the Japanese Social Development Fund to allow for the continuation for this multiyear program. WCS has learned in the last 6weeksthat this funding request was approved.

WCS continues to engage with the association ODER – a Malagasy managed cotton producing organization that has significant experience with organic cotton production in the Southwest ofthe country. A WCS team is situated in the Tulear region, and has begun development of(i) a training center, (ii) a community outreach and engagement program, and (iii) 60ha ofland for organic cotton production - during this nextcoming cultivation season. The 5-year program will establish production of organic cotton as a means of promoting sustainable land use management and reduced anthropogenic threats to the forest ofthe southwest. The program aims to ensure both production of cotton as well as the manufacture ofa Malagasy conservation cotton t-shirt for export. WCS is collaborating with Edun, Organic Exchange and a host ofother partners.

In collaboration with JariAla, WCS has supported the the ‘MusicWood Coalition’. With an interest in promoting private sector support to conservation, the MusicWood Tour was a first-step initiative to establish a program for commercial harvest ofprecioushard woods to be used in the construction of musical instruments. The harvest would be based on a certification scheme introduced through the Tropical Forest Trust (TFT). The visit was co-sponsored and co-financed by the USAID-funded JariAla project which supports reforms in Madagascar to improvesustainable forest management. The manufacturers are all members ofthe Greenpeace Music Wood Coalition who are working together to increase the availability oftraditional woods used by musical instrument manufacturers that can be certified to the exacting management standards ofthe Forest Stewardship Council (FSC). The Tropical Forest Trust worksdirectly with businesses to linkthem with sustainably sourced timber products and

Page 41 Maintaining Biological Integrity of Critical Biodiversity Habitats ANNUAL PROGRESS REPORT 2008 certifiable supply-chains. The mechanism oftransparent, certified, sustainably extracted hard woods would bring a revenue return directly backto the COBAs that engage in the program. MusicWood partners include: Greenpeace, TFT, and representatives ofMatin Guitars, Gibson Guitars, and Taylor Guitars. This program ofworkis still underway.

DEVELOP AND PROMOTE DIVERSE, QUALITY ECOTOURISM PRODUCTS THAT REPRESENT A VISION OF THE GLOBAL ECOTOURISM STANDARD IN AND AROUND KEY PROTECTED AREAS IN MADAGASCAR. The main achievement overthe reporting period was the completion ofthe concessioning framework documents (concessioning contract and its cahier des charges), and their presentation during two workshops, on the 5th and the 8th ofMay.

The objectives ofthe workshops were to: ° Present and discuss the proposed concessioning contract and its cahier des charges (specifications) to the Ministry (restricted technical workshop ofthe 5th ofMay) and to representatives ofthe private sector (public workshop ofthe 8th ofMay). ° Present the site selection process and the proposed priority pilot sites for high quality ecotourism investments.

The first restricted workshop was convened between the MEFT and all direct partners in the promotion ofthe concessioning initiative (MIARO members, IFC, Madagascar National Parks). The second workshop included, in addition to the 5th ofMay’s participants, representatives ofthe local private sector, identified as potential concessionaires. The content ofthe concessioning framework documents raised no objection either by the MEFT or the representativesofthe local private sector.

With regards to the priority parks, fiveclusters ofparkshavebeen identified: ° Eastern Cluster (Masoala/Nosy Mangabe; Mananara-Nord/Nosy Atafana); ° Northern Cluster (Ankarana/Montagne d’Ambre); ° Central Cluster (Andasibe-Mantadia); ° Northwestern Cluster (Îles Radama/Sahamalaza); and ° Southern Cluster (Kirindy Mitea)

Following the ranking ofthe parksin priority order, two field missions were successfully undertakenby IFC, CI, WCS and Madagascar National Parksto identifysites at the parklevel, in Mantadia-Andasibe, Ankarana-Montagne d’Ambre and Îles Radama-Sahamalaza(IFC and Madagascar National Parksonly), for each type oftargeted investor (Segment 1: high-end, low-volume ecotourism operators; Segment 2: high-end, medium-volume hotel operators; Segment 3: “best-of-range” local operators). Several sites were identified in each ofthe assessed parks.

USAID ALLIANCE ACTIVITIES

USAID Alliance activities during this year focused on activities related to new protected areas establishment with the regional technical committees, namely in the development ofthe management plan and the governance structure for CAZ, the public consultations and the Environmental Impact Assessment in COFAV.

This year 2008was also characterizedby the stocktaking process undertakenby USAID, in which the regional alliance teams actively participated. In the stocktaking exercise, MIARO team is actively contributed to articles, including reflection on the development ofseveral themes in working groups, and taking the lead on articles related to SAPM. At the national level, fourthemes related to the SAPM

Page 42 Maintaining Biological Integrity of Critical Biodiversity Habitats ANNUAL PROGRESS REPORT 2008 development were defined: “Priority setting”, “Sustainable financing”, “New categories and governance types” and “Benefits to communities”.

III. PROBLEMS AND CONSTRAINTS ENCOUNTERED

RESULT MODULE 1: ECOLOGICAL LINKAGES ESTABLISHED AND MAINTAINED

° Interministerial order 18633/2008 regarding the temporary protection offuture protected areas and priority conservation sites was signed by the Ministry ofEnvironment, Forests, and Tourism. The order, however, is not sufficient to ensure protection vis-à-vis other sectors. We must accelerate discussions between DSAP and MAEP and the Ministry of Land Use to ensure protection ofthese sites.

° National levelconservation planning has been extremely successful, although it has mostly been used to “validate” known priorities, rather than to select new priority areas as intended. At the regional level, the primary constraint has been the fact that the protected area “promoteurs” often havelocal data and preferred methods for conservation planning at the regional scale, and may see the national level data as counter-productive to their efforts.

° In terms ofmarine priority setting, the greatest problem encountered is the relative insufficiency of the information for target sites. Additionally, there were some complications with data formatting – particularly GPS location points – that created some difficulties when transferring information from Excel to Access.

° Several new protected areas are at the state ofdeveloping their management plans and their social and environmental management plans. The guides for these havebeen developed by MIARO, ONE, and the World Bank. However, several promoters still require additional technical assistance to help implement these documents.

° Definitive protection status for CAZ and COFAV has been delayed beyond the original timeline MIARO had envisioned. This is due to the fact that establishing these large protected areas in a participatory manner is new for Madagascar, and requires consultation, negotiation, and coordination at variouslevels and with multiple actors.

° Defining protected area governance structures is fairly new for Madagascar, especially as concerns the new protected area categories and governance types. Dueto the variety in the new protected areas, whether regarding their physical characteristics or their management objectives, it is very difficult to have a standardized governance structure for all sites. However, exchange networkshavebeen putin place to facilitate learning and best practices, for instance among sites in the southwest and also among the large sites CAZ, COFAV, Makira and Menabe.

° One ofthe big challenges for the new protected areas is to define the managers. By default, the manager should be the DREFT, butthey haveneither the resources nor the capacity to ensure management as needed. Further focus on the issue ofgovernance ofthese new protected areas will be required in the years to come.

° Several priority sites for conservation do not yet havepromoters or funding.

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° The Commission Environment Pêche is in temporary demise these last months as the two principals who had been leading it (one from DPRH and one from SAGE) have been movedto new positions. As a result the Commission no longer convened on a regular basis and this has caused delays in advancing on marine protected areas.

° The national forest restoration strategy has been developed slowly because ofthe change in the structure ofthe Ministry ofEnvironment, Water and Forests. In addition, the person in charge ofthis component in Miaro was nominated as the DGEF. This was an opportunity but he tooktime to be acquainted in his new important position before starting again to consider the forest restoration issuein his department.

RESULT MODULE 2: MANAGEMENT EFFECTIVENESS FOR CONSERVATION AREAS IMPROVED

° RM2 has been solicited to be more extensivein NPA support, taking on more sites. These include the three USAID focal ecoregions, including CAZ and COFAV. In addition, several commune mayors in the North (Region ofDiana) joined the team periodically and asked for similar support from MIARO for additional sites that are sacred, in good shape and biologically significant. These requests were unsolicited and at least one mayor received DREFT endorsement.

° Develop and disseminate training modules on biodiversity conservation – It has been difficult to find local consultants to develop training modules. Module development requires scientific knowledge ofa topic and consultants should be familiar with the Malagasy context ofthe topic with the practical aspects and available tools. Most ofthe time, qualified local consultants do not have time to develop modules. Consequently, MIARO staffhavebeen requested to finalise modules in collaboration with authors.

° Improve training programs in biodiversity conservation within government institutions – Developing a partnership with DGEF is a challenge because of the ever changing institutional structure at the ministry level, the lackofa unit in charge ofcapacity building at DGEF, and the heavyadministrativeprocesses.

RESULT MODULE 4: SUSTAINABLE FINANCING MECHANISMS MOBILIZED AND OPERATIONAL

° Implementing a watershed PES mechanism is quite complicated. Many discussions with people experienced with PES projects highlighted the importance ofhaving a strong basis for implementation, socially, scientifically and economically to ensure an effective project. These discussions clarified the process butalso illustrated that there are still many steps in the assessment process before getting to implementation. Ensuring an effective plan for assessment and implementation is, however, more complicated than initially thought and will add unexpected time delays. The studies carried out by consultants revealed that the sites initially identified surrounding Fianarantsoa do not appear to be practical for a pilot study. The identification ofalternative sites has caused significant delay in advancing with studies.

° Coordination is keyto properly implementing financial mechanisms such as the green fees butprovokes some delays in the initial plan.

° There was a significant delay in the “installation” ofthe new service de pérennisation financière (department ofsustainable financing) that was part ofthe broader restructuring process for the Ministry as a whole that set backthe process somewhat. This process is quite political in

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some dimensions and complicated and requires a high degree of collaboration with partners.

° Gathering all relevant information and studies that support implementation ofGreen feesis needed but lengthy. In addition, ONTM is launching a similar study into the possibility of using a feeon air transportation to fund ONTM and tourism related activities that require more coordination on the environment part. The need to carry outfurther studies in order to select the most appropriate income-generation mechanism and income management has delayed the process for introduction until 2009. Studies are underway.

IV. RECOMMENDED SOLUTIONS

RESULT MODULE 1: ECOLOGICAL LINKAGES ESTABLISHED AND MAINTAINED

° Regarding Order 18633/2008, we need to encourage DSAP to accelerate the establishment ofthe ‘cahier des charges” with each promoter to ensure ownership in the creation ofthe new protected areas.

° Communicating the content ofOrder 18633/2008 at the regional level is very important. The Forest Administration at both the national and regional levels will be responsible for communicating with other sectors.

° Additional resources are needed to update and standardizethe data necessary for priority setting (threats, etc). Training needs to be provided and documents produced.

° Continueto promote the valueofnational leveldata and methods to assist promoters in the design and zoning oftheir protected areas,. For example, several researchers are currently developing methods that allow the identification ofthe areas needed for animal dispersal under projected climate change and such information could be invaluable for designing truly viable protected areas.

° The compilation document will be much more useful as a guide that describes how the varioustools should be used. The SAPM Commission tools will become part ofa toolbox with the guide and will be made available to DREFT.

° The variousSAPM tools need to be put into a single binder and distributed to DREFTs and other stakeholders. This should happen by March 2009.

° Now that the new COAP has been ratified by the Senate and National Assembly, its contents need to be communicated to all stakeholders at the national, regional, and local levels.

° In the marine priority setting process, additional complementary studies for identified priority sites are needed particularly coral reeffish inventories, associated information on environmental layers and resilient factors, as well as related information on socio-economic trends.

° More coordination is still needed and the political process around MPAs need to be re- energized. Internet exchanges made it possible to gather ideas from MPA-experienced stakeholders with an aim to finalizethe frameworkfor putting in place MPAs as well as the

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governance ofMPAs. This frameworktakes into account the local context, decentralization and the development ofthe producing sectors, namely fishery, aquaculture, tourism, oil and mining exploration, and maritime transport.

° Miaro tookadvantage the nomination ofthe new Director General ofthe Environment and Forests (DGEF) to restart activities under RM1.5. We organized regular meetings and contact with the DGEF. In addition, we recruited temporary staff(local STTA) to coordinate activities on forest restoration in Didy. This person helped coordinate the implementation ofthe action plan at Didy – Ambohilero and facilitated the development of the strategic lines for the forest restoration.

RESULT MODULE 2: MANAGEMENT EFFECTIVENESS FOR CONSERVATION AREAS IMPROVED

° Concerning CAZ, the issuesseem to be very similar to those in Diana. MIARO prioritizes and the RM2 team will attempt to provide support, based on directives. There is an excellent opportunity to haveMIARO help Diana develop a regional vision for biodiversity that could be integrated into its MAP. Finally, based on experience gained through the planning process, RM2 is also looking forward to improving the PG design.

° Develop and disseminate training modules on biodiversity conservation – Assistance from members of the REPC consortium such as stafffrom CBC AMNH, Conservation International, WCS and Durrell WildlifeTrust will help largely in developing quality modules on time. More training tests will improvecontent ofthe modules before dissemination.

° Improve training programs on biodiversity conservation within government institutions – REPC should be discussed at a larger forumsuch as at the Ministry ofForest and Environment rather than at specific ministerial departments such as DGEF. Such an approach will avoid redundancy in the activities and will help develop a better structure for capacity building in a short time.

RESULT MODULE 4: SUSTAINABLE FINANCING MECHANISMS MOBILIZED AND OPERATIONAL

° Having a clear understanding ofthe many facets ofa watershed-based PES project has allowed for the development ofmore targeted Terms ofReference and Action Plan. Through these efforts, progress will be more focused on attaining results that contribute to project implementation and will assist in future progress.

° There has been close collaboration with the service de perennisation financière,the office responsible for sustainable financing in the Ministry responsible for the Environment that has resulted in the revision ofthe Green Fees Action Plan. There has been close collaboration with the service since that has resulted in the revision ofthe Action Plan. Re-orienting activities, in collaboration with the service, will facilitate progress especially with activities that involvethe government. In addition, the technical assistant hired as part ofthe MIARO projectfor sustainable financing has provided further support and been actively involved in the process. Ensuring a solid base of study and argument on all relevant subjects should ease the process ofimplementation and should be pursued. Collaboration with ONTM, the national tourism office, has provided access to the tourism sector and valuable insight into making the fee more acceptable to tour operators. This will assist in making a stronger case for the surcharge. Partnership with PIC for a survey oftourists at Ivato airport has further strengthened the ties with the tourism sector allowing for a more robust proposal for the green fee.

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° The intervention ofa senior member ofMIARO seems necessary to push for decision-making at the Ministerial level, especially if,as projected, the first investment by a Segment 1 tourism operator is to be secured by December 2008.

V. DISCUSSIONS OF OBJECTIVES NOT ACHIEVED

RESULT MODULE 1: ECOLOGICAL LINKAGES ESTABLISHED AND MAINTAINED

° MIARO is working to complete the guide on sustainable natural resource use with a technical component (in addition to the legal component that already exists). A request for proposals was put out but none ofthe proposals was satisfactory. The team is now in the process of contacting consultants that have experience in sustainable use and requesting proposals from them. We hope to begin this activity in January 2009.

° The social and environmental impact study as well as the safeguard plan for CAZ will be developed with funding from the BioCarbon Fund ofthe World Bank. As such, this activity comes squarely within the purview ofMEFT and is being led by the BioCarbon Fund focal point and head ofthe sustainable financing unit at the MEFT, Mr. Abdoul Cheik. Terms of reference for this activity were originally developed by MIARO and the regional team provided input. MEFT/SG will now proceed with recruitment ofconsultants who will develop these documents.

° Public consultations at COFAV have been completed in 47 of60communes. A planning meeting with DREFTs and other stakeholders will takeplace in mid-January 2009to schedule the remaining consultations as well as to plan the development ofthe management plan, the safeguards plan, and to establish the governance structure. The MEFT has consistently asked that the public consultations ofthe last 13 communes and the development ofthe environmental and social impact assessment/safeguard plan be funded from their PE3/World bankallocation. MIARO can therefore provide technical assistance as needed but we are not well to deal with the administrativedelays.

° The Décret definitiveto classifythe Ambatsirongorongo NAP is postponed dueto the delay in the issuance ofthe environmental permit and in the elaboration ofthe PAG document. In fact, the PAG document still has to go through the SAPM commission for validation. ° The physical boundaries definition ofthe Ambatotsirongorongo NPA could not be realized before the promulgation ofthe projet définitifde création.

° The national strategy on forest restoration was not formally finalized and adopted by the Ministry ofEnvironment, Forest and Toursim due to the delay in activities under RM1.5 on Forest Restoration. It was however noted that the DGEF will continue the development and adoption ofthe strategy as soon as possible.

RESULT MODULE 2: MANAGEMENT EFFECTIVENESS FOR CONSERVATION AREAS IMPROVED

° For the management planning guide, it is important to lookforward to the appropriation of promoters and DGEEF /DSAP ofthe current system and methodology before finalizing this important tool. In addition, NPAs are currently taking advantage ofthe introduction ofthe new software (Miradi) and RM2 would like to capitalize the use ofthis, and then integrate the program as a standard accompanying element to the management planning process.

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° The development oftwo following modules “Tools to prioritizeareas for conservation” and “Marine protected area in practice” has been discarded because workdeveloped by consultant did not satisfyREPC in terms ofscientific content and timing. It has been difficult to find a replacement for these consultants so REPC decided to leave the topic for next round of module development.

RESULT MODULE 4: SUSTAINABLE FINANCING MECHANISMS MOBILIZED AND OPERATIONAL ° The workon PES is advancing howeverit is more complicated than first expected. A team sent to Fianarantsoa was delayed significantly and the feasibility of a watershed based-PES mechanism in Fianarantsoa will be very challenging to implement. In light ofdelays, a second site has been identified in the Eastern Region ofMadagascar for follow up, which is being prepared. The incorporation oflocal information into the matrixofPES mechanisms adds an important dimension ofunderstanding to the overall picture ofPES possibilities in Madagascar and the updated matrixis pending finalization.

° The portfolio ofcommunity carbon PINs for submission to Plan Vivo has been delayed. Conversely, Tany Meva has submitted several PINs for community forest carbon projects to the UNEP CASCADe program. The PINs submitted to CASCADe can be reformulated for submission to Plan Vivo.

° The BBOP workshop planned for the forth quarter ofthis year has been postponed until the first quarter of2009 – February. The scope for the workshop has already been drafted and circulated for comment.

VI. LESSONS LEARNED

RESULT MODULE 1

° Weaknesses in information flow within MEFT, problems ofcoordination and leadership among decentralizedunits in the SAPM process. ° The development aspects at the community levelare not sufficiently taken into consideration ° Need for capacity building program in the medium and long term for new protected area managers giventhe complexity (new categories, co-management, etc) and the size(corridors) of sites. An example is MNP, which as 18 years ofexperience already. ° Need to facilitate exchange between Tana (DSAP, SAPM Commission) and the field; important role ofan exchange platform to facilitate this. ° Given the diversity ofgovernance scenarios possible, it is difficult to develop a standard matrix of governance types by category. However, all the promoters/managers should share a common vision. ° Need to develop an information system across regions/at regional level ° Develop partnership with education sector to address literacy at the community level ° Open an exchange platform beyond the environment sector but that includes sectors such as agriculture, mining, energy, justice, and defense ° Need to maximize the experience ofMNP in terms ofprotected area management and governance ° It was not easy to collect the experience ofpartners for the forest restoration as they are actually learning by doing. In addition, the impacts offorest restoration activities were not immediate butneed generally a long time.

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RESULT MODULE 2:

° The Diana Region experience has been interesting, in part because oflessons learned in previous planning exercises. A good integration oflocal stakeholders has been noted and helpful.

° It is however clear that due to the staffshortage in MIARO for the support to NPAs management planning process; it is difficult to satisfyall the needs within the setting upofthe SAPM.

RESULT MODULE 4: a. Supporttothe Sustainable Finance UnitatMEFT :

MEFT is conscience ofthe fact that sustainable financing initiativesshould be coordinated by the Malagasy Government through a ministry and within the frameworkofthe Paris Declaration (e.g., Appropriation, Alignment and Harmonization). The government’s appropriation was manifested in the creation ofa sustainable finance unit within the MEFT, which is important for the long-term sustainability ofenvironmental actions.

Sustainable FinancingPolicy:strongsignofappropriationandengagementbythe Ministry The first objectiveofthe SPF is to update the sustainable financing policy. Validation ofthis policy will symbolizethe commitment ofthe government to sustainable financing, as well as the alignment of donors and partners. In addition, the policy will allow the ministry to articulate its vision while taking into account the variousinitiatives currently ongoing in Madagascar. This will reduce the likelihood of isolated or competing initiatives.

Partnersexpectthe Ministrytotakeresponsibilityforthe leadershipandcoordinationof actions The creation ofSPF has sollicited favorable reactions from donors and other financial partners in the sector. This type ofgovernment leadership has been desired by partners for some time. The policy is also seen as a positivesign ofthe government’s appropriation ofsustainable financing for environmental actions. Partners havecommitted to support the ministry in this new role, not only in financial terms butalso in terms ofalignment.

Sustainable financingas animportantissue inthe SW AP process AAH for the environment sector will manifest itselfthrough the SWAP (Sector Wide APproach). This initiativesupported by the World Bankis based on the government’s coordination ofall environmental activities. The process will require in-depth knowledge ofthe resources brought to the entire program, which only the Sustainable Finance Unit is capable ofholding. Thus, the important role for this unit during the SWAP process.

Difficultyinestimatingcostsofeach component Cost estimates for Commitment 7ofthe MAP and the associated environmental activities is ongoing. To date these costs havenot been finalized dueto the changes in methodologies used, butalso dueto the workconducted to refine the trueneeds ofeach Challenge. In addition, the relativeweek absorption capacity ofcertain partners makes projecting the cost ofcertain activities rather difficult. b. C2D ° Time and coordination are essential to the success ofdeveloping financial mechanisms such as in the case ofthe signing ofthe C2D debt reliefcontract this year butinitiated in 2005.

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° The “buy-in” of the government of Madagascar is imperative to launching successful government campaigns. In this regard the development ofthe sustainable financing service can be viewed as a significant achievement. The process is often as important as the result. In the case ofgreen fees it is recommended to watch the process to ensure that the respective government persons are on board. However, over time, having the support ofthe government is intrinsic to success. c. PES - In relation to developing a PES activity based on watersheds has shown that establishing the linkbetween a “consumer” ofwater and a natural resource that can be managed by a target audience is very complicated. The process is further complicated ifconsumers are relatively poor. The scientific linkhas been understood to be a critical part ofthe process and is not as evident as one might initially imagine. There is still significant potential for the development ofsucha project butensuring the right conditions for implementation has been deemed a crucial element ofthe process.

VII. ACHIEVEMENT TABLE

This table summarizesall activities related within the workplan 2008submitted at the beginning ofthe year.

RESULT MODULE 1: ECOLOGICAL LINKAGES WITHIN AND BETWEEN LANDSCAPES ESTABLISHED AND/OR MAINTAINED BYEXPANDING BIODIVERSITY HABITAT CONSERVATION

SubRM Activities Performance Annual Target Achieved 2008 Indicator 2008 1.1 Promote the Categories and Category and The trend ofthe category and governance ofthe definition ofpolicy and management options governance ofat newprotected areas is determined legal parameters for the ofnew protected least 5 new establishment ofnew areas which form the protected areas protected areas “systeme d’aires determined protégées” implemented Definitive“Decret de 1,3million ha of - The amended COAP lawis adopted by the creation” for the new protected Senate and the Assembly “systeme d’aires areas have The “decrets d’application” are being developed protégées de definitivestatus - Inter-ministerial executiveorder MEFT/MEM Madagascar” 18633promulgated to secure protected areas in promulgated creation process and potential sites

Stakeholders at Regions, A communication on SAPM was organized for provincial, regional communes the Region ofVakinankaratra, the Region of and local level well DIANA (Ambodivahibe and Orangea), in informed on” Anosy, Itremo, Melaky, Sofia and for CAZand Systeme d’Aires COFAV regions Protégéede Madagascar” and “land use planning” 1.2. Identifyand Map ofurgent At least 2 terrestrial The “ schema global d’amenagement” ofthe promote potential new conservation priority sites, marine/ZH following new protected areas are available and protected areas in available and validated by stakeholders: Ambodivahibe, consultation with validated by Orangea, Anadabolava regional and local actors stakeholders (regional and local level)

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Priority site list The map ofpriority sites for the creation ofnew (terrestrial, marine protected areas is validated and annexed to the and freshwater) inter-ministerial executiveorder MEFT/MEM improved for all 18633 Madagascar by using MPA: Coral fish data base updated appropriate analytical tools for planning and database ofkey biodiversity Reportage conducted At least 1 film on 3films on SAPM were produced and one for all new protected new protected reportage by radio and television area created areas established Elaborating and 1 basis of 1 Capitalisation workshop on communication updating ofkey communication on organized messages System of protected areas updated Training and 2 trainings completed with journalists information for 3training or different vectors of workshops in new communication on protected areas newprotect areas system General awareness - Leaflet completed and distributed in English raising on new and French protected areas 1 poster creation conducted at 1 leaflet different levels (National, Regional and Local) 1.3.Establish new Biodiversity At least 2 terrestrial “Schémas d’aménagement” developed and protected areas conservation sites, marine/ZH validated for Anadabolava, Tsitongambarika, priorities validated Ambondrombe, Tsimembo, mangabe, Angavo through the process and Bombetoka ofconsultation with local partners Newprotected areas At least 2 terrestrial - The preparation ofthe Decree ofcreation is in outside USAID sites, marine/ZH progress for the following new protected areas priority ecoregions outside USAID priority ecoregions: Lokia- created manambato, Makira, Corridor Anjozorobe- Angavo, Menabe Central, Montagne des Français. - Support through Conservation Action Grants for the following sites: Tsimembo, Manambolomaty, Tambohorano, Bemanevika, ibity, AnalalavaFoulpointe, Angavo, Bombetoka Capacity needs for At least 4 terrestrial The frameworkofassessment ofthe the management of sites, marine/ZH management was applied for some new newprotected areas protected areas, even ifthey had not already the identified finally statusofprotection Guide for “new Guide The folder oftools for “new protected areas” protected areas” implemented creation and management elaborated and creation and available management elaborated and available

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1.4. Refine conservation Vision ofbiodiversity - Public consultations completed for CAZ and priorities in USAID conservation available still ongoing for COFAV (47/60done) priority eco-regions and biodiversity conservation priorities validated through the process ofconsultation with local partners Plan de gestion of - PAG for CAZ being finalized corridor elaborated - Category and Governance structure identified and implemented for CAZ - ToR for EIA/safeguard plan submitted to MEFT Newprotected areas - The preparation ofthe Decree ofcreation is in in USAID priority progress for the following new protected areas ecoregions created in USAID priority ecoregions: CAZ, Kodida, Ifotaky, Ambatotsirongorongo.

1.5. Develop forest Forest restoration Recruitment ofthe consultant to develop the restoration functions strategy established document ongoing and procedures in Action plans TBD Forest restoration activities continued in USAID priority eco- developed in pilot Ambohilero regions zones A networkofforest 3workshops in the 1 practioner’s workshop organized restoration region practitioners established Number offield 2 exchanges organized exchange between 4 practitioner's

RESULT MODULE 2: MANAGEMENT EFFECTIVENESS FOR PROTECTED AREAS MANAGEMENT IMPROVED SubRM Activities Performance Annual target Achieved 2008 Indicator 2008 2.1. Develop and/or Number ofPAs with - Guide for protected area management refine conservation updated plans developed for the overall SAPM management plans and completed - Management effectiveness evaluation system other thematic plans for for SAPM proposed to DSAP 52 protected areas. - with 6additional management plan developed in 2008, 36havemanagement plans

2.2. Improveand fully Number ofPAs with - Training and Support to NPA for developing implement annual monitoring and management plan and using Miradi tool: programmatic workplans evaluation systems in Corridor Ankeniheny-Zahamena, Nord for protected areas place Ifotaky, Kodida, Ambatotsirongorongo, Menabe Central, Corridor forestier Bongolava, Montagne des Francais

RESULT MODULE 4: SUSTAINABLE FINANCING MECHANISMS OPERATIONAL SubRM Activities Performance Annual Target Achieved 2008 Indicator 2008 4.1. Expand and develop Increased investments Additional funds TanyMevafoundation management capacity of in and conservation mobilized to - Strategic plan is being developed with a Malagasy Environmental impacts ofTany Meva support models for consultant Trust Funds/Foundations and ofthe Madagascar managing additional - Training workshop on Plan Vivo Biodiversity and “sites de MFPAB

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Protected Areas Trust conservation” - Increase of capital secured through the C2D Fund agreement - First draft of Prioritization Plan, Strategic Plan and Communication Document developed

4.2. Build on efforts made Increased revenues for One additional - Support to the newly created SPF through and cooperate with other forest habitat mechanism in place the hire of an expert in sustainable financing EP3 actors to mobilize conservation, from and operational by consultant potential sources of diverse sources and the end of the year - Capacity building for the SPF staff income for forest habitat financing mechanisms - Development of the sustainable financing conservation and for the concept within the SWAP process système des aires - Support coordination for carbon projects protégées (outside - PES study in selected sites around ANGAP parks) Fianarantsoa - PES workshop held - Test of the PA BAT Tool - Pre-evaluation of the Makira carbon project by SmartWood - Signing of agreement between the GOM for the sale of up to 9 million tons of CO2 - Negotiation of an upfront of $300,00 for the CAZ avoided deforestation upon the achievement of the payment conditionality - Carbon Monitoring methodology developed with Winrock - Carbon baseline measurement completed for CAZ - First drat of the PDD/REDD for CAZ submitted - Carbon REDD strategy developed with the GOM. - Signing of the C2D agreement for an amount of ¤26M dedicated to environment sector - Air transport surcharge assessments carried out 4.3. Stimulate investment Increased private Two additional - Renewal of agreement between GOM and for biodiversity sector investment in conservation/ecoto the Zoo Zurich conservation environmental urism-related - Engagement of ODER to manages organic conservation businesses cotton production operational - Organization of the MusicWood Tour - Concession framework policy validated and pilot site selected

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