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United Nations Development Programme Project Document United Nations Development Programme Project Document template for projects financed by the various GEF Trust Funds Project title: Mainstreaming biodiversity conservation into the tourism sector in Bhutan Country: Bhutan Implementing Partner (GEF Executing Execution Modality: National Entity): Tourism Council of Bhutan (TCB) Implementation (NIM) Contributing Outcome (UNDAF/CPD, RPD, GPD): Outcome 4: By 2023, Bhutan’s communities and its economy are more resilient to climate-induced and other disasters and biodiversity loss as well as economic vulnerability (Output 4.1: Inclusive, risk-informed systems and capacities in place to enable people to benefit from conservation and sustainable management of natural resources, and reduced environmental and health risks; Output 4.2: National policies foster innovative financing, an inclusive business environment, and improved livelihoods through climate-resilient and nature- based solutions) UNDP Social and Environmental Screening Category: UNDP Gender Marker: Moderate 2 Atlas Award ID: 00094492 Atlas Project/Output ID: 00098610 UNDP-GEF PIMS ID number: 6319 GEF Project ID number: 10234 LPAC meeting date: TBC Latest possible date to submit to GEF: 14 December 2020 Latest possible CEO endorsement date: 14 June 2021 Planned start date: July 2021 Planned end date: June 2026 (60 months) Expected date of Mid-Term Review: March 2024 Expected date of Terminal evaluation: May 2026 Brief project description: This project seeks to mainstream biodiversity conservation into tourism development in Bhutan as a long-term strategy for mitigation of threats to biodiversity and to generate sustainable conservation financing and livelihoods. The project will achieve this through establishing Bhutan as a model ecotourism destination, to generate livelihood opportunities, sustainable financing for landscapes within and outside protected areas, facilitate human-wildlife coexistence, and mitigate the negative impacts of increasing tourism on Bhutan’s socio-cultural heritage and globally significant biodiversity. The project demonstration approaches will focus on landscape-scale covering two protected areas (PAs) of Bumdeling Wildlife Sanctuary (BWS) and Sakteng Wildlife Sanctuary (SWS) in eastern Bhutan as well as in the five Dzongkhags (districts) of 1| P a g e Lhuentse, Mongar, Trashigang, Trashi Yangtse and Zhemgang. These locations represent the eastern and south- central parts of Bhutan. Given the astounding biodiversity and prevalence of high Human-Wildlife Conflict (HWC) incidences in the project demonstration landscape, ecotourism will be used as a tool for long-term conservation gains through the management of co-benefits and trade-offs. Livelihood benefits will be enhanced through ecotourism products and services that mitigate HWC, offset its financial impact on farmers, reduce threats to biodiversity, generates sustainable financing for biodiversity conservation (including PAs) and promote the sustainable wildlife-based economy. Doing so will help the government to address the current challenges by showcasing ecotourism as a strategy to strengthen biodiversity conservation across the landscape through inclusive community engagement, ecotourism enterprise development, and employment generation. However, barriers to establishing ecotourism in Bhutan that effectively incentivizes and mainstreams biodiversity conservation include a) inadequate enabling national policy environment and weak institutional coordination and governance for ecotourism development that facilitates the integration of biodiversity considerations within tourism development; b) Lack of sustainable financing, innovation, and diversification of ecotourism products and limited integration of ecotourism value chains into local community engagement and development and overall limited consideration of sustainable financing structures; c) Insufficient ecotourism knowledge, capacity, and awareness at national and local levels on ecotourism best practices. The project strategies are as follows 1) Effective policy and institutional framework for ecotourism that incentivizes and integrates biodiversity conservation into the tourism sector; 2) Introduce biodiversity-friendly ecotourism strengthens biodiversity conservation, livelihoods, and enhances human-wildlife co-existence; 3) Institute Effective capacity, marketing, and knowledge exchange to establish Bhutan as a model ecotourism destination. The project is a child project of the GEF-7 Global Wildlife Program. (1) FINANCING PLAN GEF Trust Fund USD 4,854,128 UNDP TRAC resources USD 0 Confirmed cash co-financing to be administered by UNDP USD 0 (1) Total Budget administered by UNDP USD 4,854,128 (2) CONFIRMED CO-FINANCING Tourism Council of Bhutan USD 2,938,000 Ministry of Agriculture and Forests USD 524,000 Bhutan for Life USD 3,756,500 Bhutan Trust Fund for Environmental Conservation USD 500,000 WWF USD 1,195,884 UNDP USD 158,178 (3) Total confirmed co-financing USD 9,072,562 (4) Grand-Total Project Financing (1)+(2) USD 13,926,690 2| P a g e SIGNATURES: Signature: print name below Agreed by Government Date/Month/Year: within 25 days of GEF Development CEO endorsement Coordination Authority Signature: print name below Agreed by Implementing Date/Month/Year: within 25 days of GEF Partner CEO endorsement Signature: print name below Agreed by UNDP Date/Month/Year: within 25 days of GEF CEO endorsement Key GEF Project Cycle Milestones: Project document signature: within 25 days of GEF CEO endorsement First disbursement date: within 40 days of GEF CEO endorsement Inception workshop date: within 60 days of GEF CEO endorsement Operational closure: within 3 months of posting of TE to UNDP ERC Financial closure: within 6 months of operational closure 3| P a g e TABLE OF CONTENTS TABLE OF CONTENTS ............................................................................................................................. 4 COMPLETE LIST OF ANNEXES .................................................................................................................. 5 I. DEVELOPMENT CHALLENGE ........................................................................................................... 8 II. STRATEGY ................................................................................................................................ 21 III. RESULTS AND PARTNERSHIPS ....................................................................................................... 10 (i) Expected Results: ................................................................................................................. 10 (ii) Partnerships: ....................................................................................................................... 35 (iii) Risks: ................................................................................................................................... 39 (iv) Stakeholder Engagement and South-South Cooperation:................................................ 48 (v) Gender Equality and Women’s Empowerment: ................................................................ 53 (vi) Innovativeness, Sustainability and Potential for Scaling Up: ........................................... 56 IV. PROJECT RESULTS FRAMEWORK ................................................................................................... 60 V. MONITORING AND EVALUATION (M&E) PLAN ............................................................................... 66 VI. GOVERNANCE AND MANAGEMENT ARRANGEMENTS ....................................................................... 68 VII. FINANCIAL PLANNING AND MANAGEMENT .................................................................................... 73 VIII. TOTAL BUDGET AND WORK PLAN ................................................................................................ 76 IX. LEGAL CONTEXT ........................................................................................................................ 86 X. RISK MANAGEMENT .................................................................................................................. 86 XI. MANDATORY ANNEXES .............................................................................................................. 90 Annex 1: GEF Budget Template ........................................................................................ 91 Annex 3: Project map and Geospatial Coordinates of project sites and demonstration landscape ...................................................................................................................... 108 Annex 4: Multi-Year Work Plan ...................................................................................... 116 Annex 5: Monitoring Plan ............................................................................................... 121 Annex 6: UNDP Social and Environmental Screening Procedure (SESP) ............................ 142 Annex 7: UNDP Atlas Risk Register ................................................................................. 169 Annex 8: Overview of technical consultancies/subcontracts ........................................... 179 4| P a g e COMPLETE LIST OF ANNEXES Mandatory Annexes A. The following Annexes are included within this Project Document that is signed by the relevant parties: 1. GEF budget template 3. Project Map and geospatial coordinates of the project area 4. Multiyear Workplan 5. Monitoring Plan 6. Social and Environmental Screening Procedure (SESP) 7. UNDP Atlas
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