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3. PDR GEF Ecuador (W-Out Annex 9) for Resubmission (CD-26-11)

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3. PDR GEF Ecuador (W-Out Annex 9) for Resubmission (CD-26-11) Republic of Ecuador. Sustainable Management of Biodiversity and Water Resources in the Ibarra-San Lorenzo Corridor Document of the International Fund for Agricultural Development (IFAD) and the Global Environment Facility (GEF) Republic of Ecuador SUSTAINABLE MANAGEMENT OF BIODIVERSITY AND WATER RESOURCES IN THE IBARRA-SAN LORENZO CORRIDOR Project Design Report Main Report, Annexes, and Appendixes Latin American and the Caribbean Division Environment and Climate Division Programme Management Department December 2010 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without the authorization of the International Fund for Agricultural Development (IFAD)/Global Environment Facility (GEF) Republic of Ecuador. Sustainable Management of Biodiversity and Water Resources in the Ibarra-San Lorenzo Corridor REPUBLIC OF ECUADOR SUSTAINABLE MANAGEMENT OF BIODIVERSITY AND WATER RESOURCES IN THE IBARRA-SAN LORENZO CORRIDOR TABLE OF CONTENTS EXECUTIVE SUMMARY INTRODUCTION I. SITUATION ANALYSIS ...................................................................................................... 12 A. INSTITUTIONAL, LEGAL, AND ORGANIZATIONAL CONTEXT.................................. 12 A.1. Institutional aspects ....................................................................................................... 12 A.2. Legal aspects ................................................................................................................. 14 B. SOCIOECONOMIC CONTEXT ............................................................................................. 15 C. ENVIRONMENTAL CONTEXT ............................................................................................ 18 C.1. National environmental context .................................................................................... 18 C.2. Description of the problem. Environmental pressures and their causes ........................ 19 C.3. Threats to biodiversity and the productive potential of the natural resource base ........ 19 C.4. Obstacles and barriers to rational environmental management ..................................... 20 D. PROJECT AREA AND TARGET GROUPS .......................................................................... 21 D.1. Project area .................................................................................................................... 21 D.2. Target groups ................................................................................................................. 24 E. ENVIRONMENTAL PROBLEMS IN THE PROJECT ZONE .............................................. 26 E.1. Biophysical features of the project zone: A. Andean region (Carchi, Imbabura) ......... 27 E.2. Biophysical features of the project zone: B. Coastal region (Esmeraldas) .................... 28 E.3. Present situation: Baseline ............................................................................................. 31 F. PROJECT FORMULATION PROCESS. INSTITUTIONS AND ORGANIZATIONS INVOLVED ............................................................................................................................ 33 II. PROJECT STRATEGY ........................................................................................................ 35 A. PROJECT JUSTIFICATION AND DESIGN ..................................................................... 35 A.1. Design of the operation ................................................................................................. 35 A.2. Consistency with GEF policies and strategies ............................................................... 37 A.3. Consistency with national policies and strategies ......................................................... 39 A.4. Project value added ....................................................................................................... 42 B. ELIGIBILITY .......................................................................................................................... 44 B.1. Country commitment ..................................................................................................... 44 B.2. Project ownership .......................................................................................................... 46 C. PROGRAMME OBJECTIVES AND DESCRIPTION ........................................................... 48 C.1. Project goal .................................................................................................................... 48 C.2. Project objective ............................................................................................................ 48 C.3. Components and activities ............................................................................................. 48 C.4. Indicators ....................................................................................................................... 51 D. EXPECTED ENVIRONMENTAL BENEFITS ...................................................................... 54 D.1. Expected benefits at global level ................................................................................... 54 D.2. Expected benefits at national level ................................................................................ 55 D.3. Other expected benefits at local level ............................................................................ 55 E. LINKAGES BETWEEN THE PROJECT AND OTHER SIMILAR INITIATIVES ............. 56 Republic of Ecuador. Sustainable Management of Biodiversity and Water Resources in the Ibarra-San Lorenzo Corridor E.1. GEF regional and national projects ............................................................................... 56 E.2. Other significant natural resource management projects in the project zone ................ 59 F. RISKS AND MITIGATION MEASURES .............................................................................. 61 F.1. Risks of political instability and insecurity ................................................................... 61 F.2. Risks associated with climate change ............................................................................ 61 F.3. Institutional shortcomings ............................................................................................. 61 F.4. Risks related to social participation ............................................................................... 61 F.5. Financial risks ................................................................................................................ 62 F.6. Difficulties related to innovative schemes .................................................................... 62 G. SUSTAINABILITY AND REPLICABILITY ......................................................................... 63 G.1. Institutional and social feasibility .................................................................................. 64 G.2. Environmental feasibility .............................................................................................. 64 III. INSTITUTIONAL FRAMEWORK AND MANAGEMENT MECHANISMS ............... 66 A. BASIC COMMITMENTS AND LINKAGES ......................................................................... 66 B. INSTITUTIONAL FRAMEWORK FOR PROJECT MANAGEMENT ................................ 67 C. ARRANGEMENTS FOR PROJECT EXECUTION AND THE WORK PLAN .................... 68 C.1. Aspects related to the procurement and contracting processes ..................................... 68 C.2. Administrative and financial structure of the STPE ...................................................... 69 C.3. Operating arrangements................................................................................................. 69 C.4. Technical and managerial compatibility with national systems .................................... 69 C.5. Interface for coordination with the GEF-financed project ............................................ 70 IV. PROJECT COSTS AND FINANCING ............................................................................... 71 A. ACCOUNTING AND FINANCIAL MANAGEMENT .......................................................... 71 A.1. Accounts and accounting management ......................................................................... 71 B. FINANCING AND INCREMENTAL COST ......................................................................... 72 B.1. Financing ....................................................................................................................... 72 B.2. Incremental cost ............................................................................................................ 73 C. PROCUREMENT, ACCOUNTING AND AUDITS............................................................... 75 C.1. Procurement ................................................................................................................... 75 C.2. Auditing ......................................................................................................................... 75 V. SUPERVISION, MONITORING AND EVALUATION ................................................... 76 A. SUPERVISION ........................................................................................................................ 76 B. MONITORING AND EVALUATION .................................................................................... 76 B.1. Objectives .....................................................................................................................
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