Increasing resilience and adaptation of the communities in the Poopó and Katari watersheds

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Bolivia Inter-American Development Bank (IDB)

8 March 2018 Increasing resilience and adaptation of the communities in the Project/Programme Title: Poopó and Katari watersheds

Country(ies):

National Designated Ministerio de Planificación del Desarrollo Authority(ies) (NDA):

Accredited Entity(ies) (AE): Inter-American Development Bank

Date of first submission/ [2018-02-14] [V.1] version number:

Date of current submission/ [2018-03-06] [V.2] version number

Please submit the completed form to [email protected], using the following name convention in the subject line and file name: “CN-[Accredited Entity or Country]-YYYYMMDD”

PROJECT / PROGRAMME CONCEPT NOTE Template V.2.2

Notes • The maximum number of pages should not exceed 12 pages, excluding annexes. Proposals exceeding the prescribed length will not be assessed within the indicative service standard time of 30 days. • As per the Information Disclosure Policy, the concept note, and additional documents provided to the Secretariat can be disclosed unless marked by the Accredited Entity(ies) (or NDAs) as confidential. • The relevant National Designated Authority(ies) will be informed by the Secretariat of the concept note upon receipt. • NDA can also submit the concept note directly with or without an identified accredited entity at this stage. In this case, they can leave blank the section related to the accredited entity. The Secretariat will inform the accredited entity(ies) nominated by the NDA, if any. • Accredited Entities and/or NDAs are encouraged to submit a Concept Note before making a request for project preparation support from the Project Preparation Facility (PPF). • Further information on GCF concept note preparation can be found on GCF website Funding Projects Fine Print.

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A. Project/Programme Summary (max. 1 page) ☒ Project A.2. Public or ☒ Public sector A.1. Project or programme ☐ Programme private sector ☐ Private sector Yes ☐ No ☒ A.3. Is the CN submitted in ☒ Confidential If yes, specify the RFP: A.4. Confidentiality1 response to an RFP? ☐ Not confidential ______

Mitigation: Reduced emissions from:

☐ Energy access and power generation

☐ Low emission transport

☐ Buildings, cities and industries and appliances A.5. Indicate the result ☐ Forestry and land use areas for the Adaptation: Increased resilience of: project/programme ☒ Most vulnerable people and communities

☒ Health and well-being, and food and water security

☒ Infrastructure and built environment

☐ Ecosystem and ecosystem services A.7. Estimated 42 municipalities will A.6. Estimated mitigation adaptation impact benefit directly from the Mitigation potential is currently impact (tCO2eq over (number of direct project. That is being identified lifespan) beneficiaries and % of approximately 14.7% of population) Bolivia’s population A.8. Indicative total project Amount: USD 390.3 A.9. Indicative GCF Amount: USD 122.00 cost (GCF + co-finance) funding requested A.10. Mark the type of financial instrument ☒ Grant ☐ Reimbursable grant ☐ Guarantees ☐ Equity requested for the GCF ☐ Subordinated loan ☒ Senior Loan ☐ Other: specify______funding a) disbursement period: 2019 – A.12. Estimated This refers to the total A.11. Estimated duration 2022 project/ Programme period over which the of project/ programme: b) repayment period, if applicable: lifespan investment is effective. TBD Yes ☒ No ☐ A.13. Is funding from the ☐ A or I-1 Project Preparation Other support received ☒ If so, by A.14. ESS category3 ☒ B or I-2 EXPECTED 2 who: Inter-American Development Facility requested? ☐ C or I-3 Bank A.15. Is the CN aligned A.16. Has the CN been with your accreditation Yes ☒ No ☐ Yes ☒ No ☐ shared with the NDA? standard?

Yes ☒ No ☐ A.18. Is the CN A.17. AMA signed (if If no, specify the status of AMA included in the Entity Yes ☒ No ☐ submitted by AE) negotiations and expected date of Work Programme? signing:

This project addresses the following identified challenges: (i) the need to conceive water A.19. Project/Programme security from a systemic approach (ii) Limited capacity for adaptation management planning rationale, objectives and at the watershed level; (iii) Need to generate and collect data for the design and approach of implementation of evidence-based public policies which address the consequences of programme/project (max climate change at the municipal level; (iv) Increased vulnerability of the communities in the 100 words) Katari and Poopó basins to climate change impacts on the availability and quality of water; (v) the need to consolidate and strengthen a programmatic investment framework to

1 Concept notes (or sections of) not marked as confidential may be published in accordance with the Information Disclosure Policy (Decision B.12/35) and the Review of the Initial Proposal Approval Process (Decision B.17/18). 2 See here for access to project preparation support request template and guidelines 3 Refer to the Fund’s environmental and social safeguards (Decision B.07/02)

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respond to climate change adaptation needs, within the scope of integrated watershed management. B. Project/Programme Information (max. 8 pages) B.1. Context and baseline (max. 2 pages) 1. The socioeconomic and geographical characteristics of the Plurinational State of Bolivia (PSB), its high poverty (55%) and extreme poverty (33%) rates in rural areas (INE, 2016) combined with its heavy dependence on natural resources (ECLAC, 2015), and existing information gaps for the sustainable management of natural resources result in an extremely high degree of vulnerability to the effects of climate change (Ibish et al., 2003). Thus, the observed and expected hydrological changes in the patterns of hydro-climatic variables (UNEP, 2014) and glacial retreat (Francou et al., 2000; Kaser, 1999) together with exponential population growth, and an over-reliance on vulnerable aquifers (CEAM, 2011), generate serious climate-threats to Bolivian rural communities that are especially sensitive to temperature variability (INE, 2016). 2. To address the urgencies and stress caused by climate change, the Plurinational State of Bolivia (PSB) launched the National Watershed Plan (Plan Nacional de Cuencas or PNC) under the Ministry of Water and the Environment (MMAyA.) The PNC aims to function as a comprehensive umbrella programme which coordinates all activities with the aim of executing integrated watershed management policies throughout the country. As such, particular interest is vested upon the fourteen most vulnerable watersheds in Bolivia. Further to the PNC, the PSB’s Nationally Determined Contribution identify the water sector and the need to develop holistic adaptation measures as a national priority. 3. Within the direct area of intervention of this programme, MMAyA estimates the direct needed funding for adaptation at approximately USD 250 million for the next five years, out of a total of USD650 million needed to address all water related concerns. This programme is conceived to build upon Bolivia’s existing activities and seeks to pilot and verify the validity of a working methodology that lays the foundations of a bottom-up multi-sectorial intervention to successfully execute integrated watershed management policies. The goal for the PSB is to execute the most urgent adaptation driven activities which will result in an increased resilience while also strengthening integrated watershed management capacity in the most vulnerable territories. Along these lines, the ambit of the proposed programme is the Bolivian TDPS (Titicaca-Desaguadero-Poopó-Salar de Coipasa) endorheic system. Given its high vulnerability, interventions will specifically be focused in its two principal watersheds, namely the Katari and Poopó basins. The programme is aimed at generating practical and applicable local know-how on adaptation at the watershed level, for further scaling-up in other economically and socially important watersheds of the country. 4. Bolivia is located in the South American Central Andean region. Because of its greatly varied topography, the country hosts several ecological zones including the high-Andean puna, the puna valleys, and plains, including the chaco plain (Montes de Oca, 2005), which have a semi-arid climate, and make-up almost 50% of the national territory (CAN, 2009). This results in a natural predisposition to climate-induced threats, as the environment is naturally subject to a series of risks whose main cause is climate variability. Thus, climate change acts as a “threat multiplier” by aggravating local vulnerability in these regions (UNDP, 2011), and particularly, by affecting watershed water balances. The Titicaca-Desaguadero-Poopó-Salar de Coipasa (TDPS) endorheic system is of particular economic importance for the country, which is composed by , Alto Desaguadero, Bajo Desaguadero, Mauri, Lake Poopó and Salar de Coipasa. It encompasses a total area of 140,000 square kilometers (CAN, op.cit.) and represents one of the largest ecosystems in the region (SDC, 2006). The TDPS is located in the puna within the enormous endorheic basin of the (over 4,000 meters above sea level or masl), covering part of the Departments of and Oruro as well as two important cities within, ( and Oruro) as well as approximately one hundred communities, which depend mostly on water coming from glaciers, surface water and very limited groundwater (Seth, Thibeault & García, 2009.) 5. Rainfall is the primary water management factor of a region (Ward, et al., 2000). The hydrology of TDPS is defined by high spatial and temporal variability of precipitation (Garreaud et al., 2003), which can be aggravated by global warming through the increasing frequency of the El Niño (Wenju et al., 2015). Studying precipitation trends in the Lake Titicaca watershed, Lavado et al. (2012), conclude that quantity in the lower parts is almost constant and decreases towards the upper parts. Furthermore, the outputs from the Model for Interdisciplinary Research on Climate, version 5 (MIROC-5) for the TDPS region and the moderate scenario RPC26 for the 2041-2060 period indicate a major change in precipitation from east to west, from 7% to -5% (IPCC, 2013, Watanabe et al., 2010). The Titicaca region may tend to be humid, with a current average of 800 mm year-1 (Roche et al., 1992); while to the south of the TDPS it could be arid, with an average of 350 mm year-1 (Pillco & Bengtsson, 2006). Indeed, a review of the literature indicates that, in this latitude, the El Niño phenomenon is mostly related to droughts and La Niña is related to floods (Thompson et al., 1984, Aceituno, 1988; Lenters and Cook 1999, Vuille et al., 2000a; Arnaud et al., 2001) and, other times, they may be correlated to inter-annual variability (Ronchail, 1995, Garreaud et al., 2003; Pillco et al., 2007). In the case of the Altiplano, a tendency towards dry conditions was identified, not only due to atmospheric demand as a result of the increase in actual evapotranspiration, but also this phenomenon was identified as a potential occurrence under climate change scenarios (Serrano et al., 2014).

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6. Inter-tropical glaciers in this area contribute significantly to surface runoff available in micro-basins, reaching up to 27% of the total available runoff in some cases during the dry season (Sologuren, 2012). This important source of water has been declining rapidly in recent decades. The glaciers’ rapid retreat is linked to the sustained increase in temperature over the last half century (Brecher et al., 1993; Francou et al., 2000 and Díaz et al., 1996), affecting water supply particularly in the cities of La Paz, El-Alto and neighbouring communities (Ramírez et al., 2001). According to Lopez et al. (2015), Tmax and Tmin trends show generalized warming across the Altiplano of 0.15 °C and 0.25 °C per decade, respectively. In addition, climate models project warmer climate, with an increase between 4-5 C by the end of this century for the Altiplano (Bradley et al., 2006; Urrutia and Vuille, 2009). These scenarios, in systems such as the one described above, will allow for an increase in vapor pressure deficit, with the resulting increase in potential evaporation of surface and sub-surface water, the other sources of water that allow to meet water demand and particularly so in the Poopó basin region. 7. Moreover, demographic pressure in the region is another relevant factor that can exacerbate the availability of water, especially in a context of climate change. According to data from the Bolivian National Institute of Statistics (INE, 2012), the population growth of the La Paz metropolitan area has been of 6.8% over the last 20 years (with an annual average of almost 0.4%). The growth in the city of El Alto, which is part of La Paz, has been more dramatic since it has grown exponentially at an intercensal rate of 31%. In the case of Oruro, growth has been relatively lower (3.06%), but since 2015, the population has tripled in urban areas, while it has declined dramatically in rural areas. Considering that demographic pressure is inversely proportional to water availability, pressure has been reduced in rural areas and has increased in urban areas. The water imbalance accompanied by the ENSO phenomenon (IPCC, 2007b) has strong implications on population density, causing rural-urban migration, as well as negative changes in food security —the World Food Programme (2008) classifies all municipalities of the TDPS under VAM (Vulnerability Analysis and Mapping) categories 4 and 5—, with the most vulnerable group being rural dwellers, who already have a 70% chance of living in extreme poverty (OXFAM, 2009). 8. In this regard, the erosion caused by intense rains and droughts in dry times, determines the loss of people’s livelihoods. As an example, MMAYA studies have identified that in 2016, droughts affected more than 177,000 families with damages of approximately 125 USD million. Within the scope of intervention of this programme, over 31,000 families in were affected, with financial losses estimated at approximately USD 68 million. Humanitarian aid contributions of USD 6 million were received for agricultural restoration and USD 14 million for health and food security. This situation established the dependence of rural communities on the endorheic basin in terms of health and employment, as well as in commercial and food security terms (VIDECI, 2016). 9. Under this programme, the urgent need to address the water deficit issue in the Poopó and Katari basins implies first and foremost, focusing on its respective municipalities within it. These are characterized by their high vulnerability. The former (the basin) is located in the northern part of the system, and depends largely on glaciers, groundwater and surface water. The latter (Poopó Lake basin) is located in the southern part of the system, and relies on groundwater, mainly during the dry season and, to some extent, on surface water. A few minor, disjointed pilot adaptation activities have already been developed. However, a series of limitations have hindered the enabling of evidence-based and measurable policy interventions results so far. Institutional constraints, the lack of more scientific data on climate impacts, as well as the disconnect between the lessons learned in the field and the watershed management plans, for instance. The lack of knowledge to fully address risks also prevent the systematic development of large-scale activities to lessen the vulnerability of municipalities and communities. The consequent further reduction in the availability of the water resource is expected to significantly exacerbate current poverty levels while continuing to weaken fragile ecosystems.

B.2. Project/Programme description (max. 3 pages)

1. In order to meet the challenges of climate change in the Katari and Lake Poopó basins (pilot basins), it is necessary to devise a strategy to integrate land management and integrated water resources management criteria with the adaptation and risk management plans developed by the most vulnerable municipalities. Watershed master plans offer an opportunity to strategically connect these tools so that basins can increase their resilience to climate change. In this sense, the proposed program seeks to strengthen both planning and implementation of these plans through their Watershed Management Units. This promotes the coordinated management of the landscape and its natural resources in order to maximize economic and social welfare without compromising the sustainability of ecosystems (GWP 2000). The design of a plan that incorporates the full range of social and economic activities, water conservation and use, intersectoral management and the integration of multilevel and multiscale decision-making policy instruments will enable an adequate adaptive response (Conca, 2006). This will also provide important lessons learned opportunities, while avoiding permanent damage in the local ecosystems’ capacity to provide water harvesting and cleaning services to the local communities of the Katari River and Lake Poopó basins. 2. Therefore, the proposed programme seeks to address the following challenges which have been contextually identified above: (i) the need to conceive water security from a systemic approach (ii) Limited capacity for climate change adaptation management planning at the watershed level; (iii) Need to generate and collect data for the design

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and implementation of evidence-based public policies which address the consequences of climate change at the municipal level; (iv) Increased vulnerability of the communities in the Katari and Poopó basins to climate change impacts on the availability and quality of the water resource; (v) the need to consolidate and strengthen a programmatic investment framework to respond to climate change adaptation needs, within the scope of integrated watershed management. 3. To address the challenges outlined above, the programme’s main objective is to reduce climate change vulnerability of the communities located in the Katari River and Lake Poopó basins. The proposed solution consists in an integrated and participatory approach that includes capacity building for water management and adaptation. Delivery of the solution will be rendered through: (i) investments in integrated and specific socio-economic and ecosystem conservation activities for both watersheds, which may serve as a model for an adaptive management of resources, and (ii) capacity building activities at the three major levels of governance: national, regional and municipal. These activities will be designed to provide better decision-making capacities, including the gathering, evaluation and sharing of lessons learned as part of a participatory, continuous and progressive adaptation process for these areas. To this end, the programme will adopt the Integrated Watershed Management approach with a view to adaptive management of ecosystems, accounting for the existing specific socio-economic relationships in the area to enable a climate-resilient evolution. 4. The Katari River and Lake Poopó basins provide a very similar intervention context in terms of magnitude, intensity and seasonality. Combining the identified climate change impacts with the socio-economic vulnerability of the system, and particularly the two basins and the 42 prioritized municipalities in the proposal provides the main justification for this intended intervention. Indeed, expected climate change impacts on the availability and quality of the water resource in both watersheds are of similar magnitude, intensity and seasonality. The 42 municipalities prioritized for the study are home to approximately 1.6 million Bolivians, or nearly 14.7% of the population of the Plurinational State of Bolivia (PSB). Given the socio-economic and vulnerability similarities in the two basins, similar components conform the activities to be carried out in both areas. However, each area also harbours climate stress induced geographic, socio-economic and ecosystem limitations. These have been expressed by local stakeholders who have helped to create projects that address specificities in each of these basins. As a result, the work in both locations will be complementary and will generate synergies at the level of basins for rapid scalability throughout the entirety of the Bolivian TDPS system. 5. Along with the interventions at the municipal level, institutional strengthening activities should also be implemented at the national level to build adaptive capacity. These activities, including for example the enhancement of a hydro- meteorological monitoring network, are justified by the economies of scale that permit this level of intervention, as well as the potential use of this information to replicate similar interventions within the framework of other projects in the TDPS system and other areas of the region with similar climatologic characteristics. 6. Given the magnitude of the issue, as well as the complexity of the required response, the proposed programme is being designed to effectively complement the other interventions already being implemented by Bolivia and its international partners in the same field, both within the TDPS system and in other areas of the country. 7. The following are the activities for each of the proposed programme’s four components: Component 1. Institutional strengthening for climate change adaptation management 10. Strengthening activities will be carried out at different levels so that they can influence policy at the national level while also bolstering planning and implementation of development projects at the sub-national and, especially, at the municipal level. 11. At the national level, technical and hydro-climatologic data management capacities will be strengthened in specialized agencies such as the National Weather and Hydrology Service of Bolivia (SENAMHI), the Bolivian Space Agency (ABE) and the National Institute of Hydrology (IHH.) All activities will be executed under the coordination of the Ministry of the Environment and Water (MMAyA) and its relevant offices, such as the Authority for Oversight and Social Control of Drinking Water and Basic Sanitation (AAPS). These activities seek to complement the country's current efforts to generate the necessary data and information so that all relevant sectors can achieve the adaptation goals set out in its Nationally Determined Contribution (NDC.) 12. The proposed programme fully embraces an evidence-based policy making process-driven approach. As such, it seeks to bolster institutional capacity to generate and use reliable, and current scientific data in the definition of public policies to achieve climate-resilient and sustainable development. In this sense, and while the country has made progress in this regard, it is still necessary to enhance not only the generation of more detailed data, but also its direct application to policy-making and decision-making, both locally and nationally. Work will be undertaken with the institutions mentioned above to strengthen these capacities and increase opportunities for development of the national climate information system (SNICA.) 13. At the local level, work will be carried out with the 42 identified municipalities that make up the Katari River and Lake Poopó basins with the objective of attaining a more coordinated decision-making process which will enable local authorities to better face the consequences of climate change. This will be achieved through participatory

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engagement to enable municipal adaptation and risk management strategies that integrate seamlessly with the socio- economic needs laid out in municipal development plans. 14. Finally, a third level of this intervention is focused on financing training activities for the indigenous communities of Lake Poopó (the poorest and most vulnerable communities.) This specific approach will build on local ancestral knowledge to bolster the adaptive process process, with a strong emphasis on gender equality. Thus, the programme seeks to effectively include the most vulnerable people in an adaptive process of the territory with a longer-term inclusive vision. 15. The programme also provides for a MMAYA-led intervention the creation of local groups for knowledge management with the participation of the MMAyA, academia and international research centers. This in order to conduct specialized studies to gain a better understanding of climate change impacts on the water resource and how to respond to them. The programme seeks to ensure the dissemination of knowledge in order to facilitate the replicability of adaptive activities in other basins with similar issues. 16. All these activities are designed to improve the adaptive capacity of the communities and productive sectors that are part of the decision-making processes for sustainable development management in the Katari River and Lake Poopó basins.

Component 2. Implementation of replicable adaptation measures in the Katari River and Lake Poopó basins

17. The interventions to be funded will aim to reduce the vulnerability of local communities to water stress, which is exacerbated by climate change. Thus, it seeks to ensure water security. Attention will be given to the status and use of the corresponding aquifers. Specifically, they seek to promote better use, management and control of the land and water resources of both basins, considering the observed and anticipated climate change impacts on the availability and quality of the water resource. Details of the proposed activities for both basins are attached in the annexed table (Annex I). 18. It is important to point out that most people in the intervention areas are engaged in agricultural activities and, therefore, the proposed projects aim to improve groundwater management, rainwater harvesting, underground dams, and use of modern irrigation techniques. 19. This component also includes a group of activities to preserve the services provided by local ecosystems in terms of water harvesting and cleaning. These include revegetation in water recharge areas and restoration of totora reed beds (Schoenoplectus genus) for phytoremediation, and as a source of income and food for animals. Alternative economic activities such as ecotourism for educational and demonstration purposes are also considered, to enable the design of sustainable options in a drier and warmer future. 20. Finally, this component is designed to build upon existing activities being financed by the IDB in the PSB, and in the same region of intervention as this programme. These activities reflect the joint PSB-IDB Investment Strategy to address the problems of the Titicaca region, and amount to approximately US$ 400 Million in the Water and Sanitation sector. This main group of projects that complement proposed programme includes: (i) USD 133 Million (USD 62 million in loans) Multi-purpose water supply and irrigation program for the Municipios of and (under execution); (ii) USD 85 Million (USD 77.3 million in loans) Lake Titicaca clean-up program (under execution) (iii) USD 100 Million (USD 50 million in loans) Expansion and improvements Programme for a sustainable and resilient water supply for cities, (under preparation); and (iv) USD 79 Million loan: Water and Sanitation Program for small towns and rural communities, (under execution).

Component 3. Management, coordination, monitoring-evaluation and learning activities

21. This component will finance the creation of a programme management team within MMAYA. The team will be structured to ensure a smooth and coordinated execution of funds, while also ensuring that activities are correctly coordinated with other initiatives and projects currently implemented by MMAyA. In this regard, the proposal includes a small core coordination group in La Paz, together with two watershed management units: the Katari Watershed Management Unit or UGCK and the Poopó Watershed Management Unit or UGCP. These units will be responsible for the implementation of all relevant activities at the local level. They will also be responsible for all administrative and procurement procedures including, but not limited to, the preparation of terms of reference, procurement of goods, contract management, payment processing, as well as the preparation of semi-annual and annual reports in line with the requirements of both the MMAyA and the Inter-American Development Bank Group (IDBG). These units will also have a technical team which will monitor and supervise all activities funded by the program, in order to ensure compliance with the intended objectives and IDBG’s environmental and social safeguards. 22. Although the UGCK is currently established and is in charge of coordinating the implementation of the Watershed Master Plans that are related to it and were created within the framework of the National Watershed Program (PNC), this programme will seek to strengthen this unit. At the same time, the UGCP will be created to handle the Lake Poopó basin. The PSB plans to create, in due course, watershed management units dedicated to each of the

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country's fourteen (14) main watersheds. In this sense, the knowledge generated learned from the strengthening of the UGCK and the creation of the UGCP will serve in the scaling up of this public policy. To identify the specific complementary needs of the UGCK, IDBG will conduct an implementation capacity assessment during the preparation of the project to identify areas that require additional strengthening for the implementation of the proposed programme. 23. This component will also fund general dissemination and awareness activities to share good practices and lessons learned. Thus, the programme will systematize operational knowledge gained from the implementation of an adaptive process at the level of a watershed, with the end-objective of enabling replication amongst the other priority watersheds at a national level. In addition, the component will also fund a programme evaluation at the end of the implementation period. Component 4. Exchange risk volatility mitigation mechanism (edging) 24. A fourth and final component is suggested to mitigate currency fluctuation risk and is suggested as a conditional TC contingent on a depreciation of pertinent exchange rates for the acquisition (importation) of relevant goods and services needed to be acquired during the project execution phase. 25. The programme’s intervention logic is described under Annex II which provides a theory of change.

B.3. Expected project results aligned with the GCF investment criteria (max. 3 pages)

1. The project has direct impact potential to address the quality and availability of the water resource in the two basins. This has direct and indirect impacts on the quality of life of the affected populations as they will be benefited from improvements in their adaptive capacity with greater resilience, including a better understanding and management of ecosystem services. 2. The following is an indicative set of quantitative and qualitative indicators that will be defined in more detail during the program preparation period. In this phase, the methodological approach used to measure adaptive capacity as well as vulnerability will also be identified. • Core indicator #1 o Total number of people benefited from the project (disaggregated by gender and by investment priority or IP. o Number of beneficiaries relative to the population of the two basins (disaggregated by gender and IP.) o Increased resilience and enhanced livelihoods of the most vulnerable people (outcome indicator.) o Number of males and females benefiting from the adoption of diversified, climate resilient livelihood options (including fisheries, agriculture, tourism, etc.) • 2.0 Increased resilience of health and wellbeing, and food and water security o Number of males and females with year-round access to reliable and safe water supply despite climate shocks and stresses. o Number of additional cubic meters of water harvested for human consumption. o Number of additional cubic meters of water harvested/ stored for agricultural use. • 4.0 Improved resilience of ecosystems and ecosystem services • 4.1 Coverage/scale of ecosystems protected and strengthened in response to climate variability and change Project/Programme Outcomes

• 4.0 Improved resilience of ecosystems and ecosystem services o Improved climate resilience of ecosystem services for harvesting and phytoremediation of the water resource provided by key ecosystems of the Katari and Poopo basins. • 5.0 Strengthened institutional and regulatory systems for climate responsive planning and development o 5.1 Institutional and regulatory systems that improve incentives for climate resilience and their effective implementation. o 5.2 Number of technologies and innovative solutions transferred or licensed to promote climate resilience funded through the program. o 5.3 Number and level of effective coordination mechanisms to effectively mainstream climate risk within sustainable development. • 6.0 Increased generation and use of climate information in decision making o Strengthening of SENAMHI and early warning capacity increased for policy makers. o Development of space-based water availability analytical services, through the strengthening of the Bolivian Space Agency.

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o Improved communication and work between national and local organizations for the exchange of hydro- climate data. • 7.0 Strengthened adaptive capacity and reduced exposure to climate risks o Average increase in income of the beneficiary population (disaggregated by gender and IP.) • Innovation 3. In addition to the use of conventional techniques and devices for collecting and harvesting water such as water tanks, tunnels and retention ponds, the programme will also fund the implementation of a smaller-scale group of pilot projects. These will use more innovative technologies not yet available in the country like underground dams, and pilot initiatives for the artificial recharge of aquifers, among others.) Specifically, these pilot initiatives seek to improve water resource availability, its collection and local management capacity. Some of these interventions are also based on the improvement in ancestral practices. Additionally, and as a complement to water collection activities, financing will also be provided for a series of pilot projects for wastewater phytoremediation using totora-based (genus:Schoenoplectus) local ecosystems, widely abundant in the area of Lake Titicaca. Although totora reed beds have been the focus of several research studies, there still aren’t demonstrative pilot projects with sufficient scale that can attest to its benefits in cleaning contaminated water bodies. This pilot holds great potential in regard to the reduction of pollution levels in water bodies, thereby reducing ecosystem vulnerability to temperature rises caused by climate change. This pilot also holds great potential with clear developmental co-benefits for local communities and their livelihoods. 4. At the national level, the strengthening of the SENAMHI hydro-meteorological network in the TDPS system will include the construction of low-cost open-sourced stations. These will use new production techniques such as 3D printing for components without intellectual property limitations. They will also include programming equipment and open-source software articulated through Raspberry Pi type modules. This will enable of for a greater level of detail in monitoring hydrological changes in the Katari and Poopó basins and the TDPS system. The technology and technical know-how for these pilot stations may also be employed throughout the world, if the demonstrator confirms what has been tested so far. 5. Likewise, the program seeks to fund specialized studies with the participation of international research institutions, while promoting the development of local capacities to face climate change challenges in the territory. As such, the combination of research, monitoring, practical knowledge from traditional autonomous adaptation techniques at the watershed scale and proposed new technologies will contribute together to building climate resilience in line with more sustainable development in the two basins. • Potential for scaling-up and replication (e.g. multiples of initial impact size) 6. The program will be implemented in 42 municipalities located in the Katari and Lake Poopó basins. The implementation of the proposed adaptation activities will provide important lessons learned opportunities for subsequent replication at the basin-wide scale, given the geographical, social, economic and demographic similarities of the Altiplano Bolivian TDPS system. • Potential for knowledge and learning 7. The program presents a series of activities based on the use of new innovative technologies, which will be transferred locally for development, improvement and replicability, thus increasing the adaptive capacity of local communities. 8. At the same time and from a broader perspective, the project will generate lessons learned that may be used in similar regions, and by national organizations within their monitoring and evaluation plans, as part of a learning and sharing process. 9. It will also include the development of base scientific data with the support of local academia, to enable the dissemination of created knowledge, as well as its replication. • Contribution to the creation of an enabling environment 10. Components 1 and 3 focus specifically on creating a framework to develop evidence-based policies to address the water related urgent challenges of climate change. 11. In addition, the programme will also develop the relevant actors at the local level, with the double purpose of: (i) ensuring the systematization of the knowledge acquired from the implementation of pilot adaptation projects at the basin level, and (ii) increasing the response capacity of municipalities and related entities. This approach is necessary to ensure the sustainability of an adaptive process in a geographical area that has recently been hit by severe droughts. • Contribution to the regulatory framework and policies 12. The training and interventions included in the programme to be implemented with government representatives at the national level will be oriented to supporting the definition of regulations that address the issue of climate change from a local perspective. These will be supported by academia and will include a plethora of other relevant actors. The

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activities of the proposed programme are also expected to generate relevant information for the Bolivian policy- maker as regulatory reforms related to water resource management are under consideration. Specifically, cooperation with the AAPS will provide the necessary information to update the provisions related to the regulation of water use. 13. The interventions of the programme have a systemic approach and will be undertaken in the Lake Poopó and Katari watersheds, which are part of the TDPS system. As a result, there are several direct and indirect co-benefits in the area. 14. Specifically, quantitative data will be provided once the feasibility studies have been conducted Economic co-benefits - Number of local jobs created by the programme (disaggregated by gender and IP) - expected % of improvement in crop productivity - Improved trade in the region - Expected poverty reduction - Improved predictability of droughts • Social co-benefits - Improved health - Better indicators of multidimensional poverty - Improvement in education through training (disaggregated by gender and IP) - Equal Access to women to water resources - Local participation in the development of solutions • Environmental co-benefits - Improved water quality - Improved soil quality - Aquifer recharge - Effective removal of metals from the Katari waters draining into Lake Menor (Katari sub-basin) • Gender-sensitive development impact (OECD DAC indicators) - Reduced water collection time - Increased women's participation in economic activities resilient to climate change - Increased women’s participation in decision-making due to the programme

B.4. Engagement among the NDA, AE, and/or other relevant stakeholders in the country (max ½ page)

1. The implementation of the programme will be supervised by MMAyA in coordination with the Ministry for Development Planning (MPD) who acts as Bolivia’s NDA. This will contribute to the technical and practical understanding of adaptation at the basin-level decision-making process. Both actors are actively engaged in this program. 2. MMAyA will be in charge of the main implementation of activities through the Watershed Management Units. At the municipal level, work will be undertaken with the municipal authorities and representatives of the following 42 municipalities: 3. For the Katari watershed, the following 24 municipalities: El Alto, , Laja, Pucarani, , , , Comanche, , , Batallas and , Tito Yupanqui, Tiahuanacu, and , , San Andrés de Machaca, Jesús de Machaca, Taraco, Huatajata, , and Copacabana 4. For the Poopó watershed, the following 18 municipalities: , , Soracachi, Santiago de , Toledo, Oruro, El Choro, , , Machacamarca, Villa Poopó, Antequera, Pazña, Santiago de Andamarca, Pampa Aullagas, , Santiago de Huari, 5. MMAyA with its UGCs, as well as with the relevant municipal and regional authorities, keeps a working relationship with all communties within both basins, and has defined a well detailed understanding of immediate and long-term needs. This relationship is key when considering the needed elaboration of water vulnerability scenarios for the different watershed. This type of work is carried out specifically with municipal and social representatives (including indigenous communities) of the municipalities involved.

C. Indicative Financing/Cost Information (max. 3 pages) C.1. Financing by components (max ½ page) Please provide an estimate of the total cost per component/output and disaggregate by source of financing.

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Component/Outp Indicative cost GCF financing Co-financing ut (USD) Amount Financial Amount Financial Name of (USD) Instrument (USD) Instrument Institutions Component 1 11.50 11.50 Grant 49.55 49.55 Grant Component 2 50.45 50.45 Loan Component 3 6.50 6.50 Grant Component 4 2.0 2 Grant (conditional) Indicative total 122 122 268.3 in complimentary activities, using a cost (USD) modular approach.

For private sector proposal, provide an overview (diagram) of the proposed financing structure.

C.2. Justification of GCF funding request (max. 1 page)

Rationale for intervention

1. Green Climate Fund participation in this program is extremely necessary given Bolivia’s vulnerability, its high poverty and inequality rates, and its limited capacity to access financing at competitive rates, because of the large number of priority areas that need immediate attention, as well as by the country’s fiscal space. Without a highly concessional credit facility and a grant to catalyse identified activities, it will prove very challenging (if at all possible) for the Plurinational State of Bolivia to obtain loans to strengthen the resilience of rural populations to climate change. 2. Another important point to emphasize is the catalysing role of the requested funds. Not only are many of the components of this intervention intended to facilitate replicability in similar interventions, but the programme is built to complement and give a new dimension to the approach and activities identified under the PPCR multipurpose programme of the Climate Investment Funds together with the World Bank and the Inter-American Development Bank (USD 268.3 million.)

C.3. Sustainability and replicability of the project (exit strategy) (max. 1 page) 1. In terms of sustainability, the project seeks to frame intervention activities within the areas already identified as a priority by both the MMAyA and the Ministry of Development Planning (MPD) in its budget planning exercises and in its Economic and Social Development Plan. At the same time, this programme is structured to incorporate decision- makers from various levels of public management (national, regional and municipal) in order to ensure awareness and engagement of all actors in public policy formulation and management processes. D. Supporting documents submitted (OPTIONAL) ☐ Map indicating the location of the project/programme ☒ Diagram of the theory of change ☐ Economic and financial model with key assumptions and potential stressed scenarios ☐ Pre-feasibility study ☐ Evaluation report of previous project ☐ Results of environmental and social risk screening

Self-awareness check boxes

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Are you aware that the full Funding Proposal and Annexes will require these documents? Yes ☒ No ☐

• Feasibility Study • Environmental and social impact assessment or environmental and social management framework • Stakeholder consultations at national and project level implementation including with indigenous people if relevant • Gender assessment and action plan • Operations and maintenance plan if relevant • Loan or grant operation manual as appropriate • Co-financing commitment letters

Are you aware that a funding proposal from an accredited entity without a signed AMA will be reviewed but not sent to the Board for consideration? Yes ☒ No ☐