•gef GLOBAL ENVIRONMENT FACILITY INVESTING IN OUR PLANET Naoko Ishii CEO and Chairperson June 11,2014 Dear Council Member, The Food and Agriculture Organization of the United Nations (FAO) as the Implementing Agency for the project entitled: Ecuador: Integrated Management of Marine and Coastal Areas of High Value for Biodiversity in Continental Ecuador (GEF ID 4770), has submitted the attached proposed project document for CEO endorsement including a project amendment prior to final Agency approval of the project document in accordance with FAO procedures. The Secretariat has reviewed the project document. The amendment includes: (i) expansion of the project to mangrove ecosystem conservation, which places more emphasis on integrated coastal management approach; (ii) increase project coverage to a total of 96,000 hectares; (iii) increase the capacity development; and (iv) increase the support to long sustainable financing mechanism. The required inputs have been adjusted accordingly. The original approved GEF grant amount of $3,058,788 would be increased to $4,258,788, which is available in Ecuador's GEF-5 BD STAR allocation. We consider these changes to be major amendment to the original project document approved by Council on June 7, 2012. In keeping with GEF procedures, the Secretariat has reviewed the proposed changes and has ascertained their appropriateness in light of the project's objectives. However, given the impending closing of the GEF-5 period, approval and allocation of funds for projects need to be completed before June 30, 2014 to be included in the GEF-5 approval, we are seeking an expedited circulation to Council for two weeks, instead of four, so that the CEO endorsement of the project can be completed before the end ofFY 2014. We have today posted the proposed project document on the GEF website at www.TheGEF.org for your review. We would welcome any comments you may wish to provide by June 25, 2014 before I endorse the project document as amended. You may send your comments to [email protected]. 1818 H Street, NW • Washington, DC 20433 • USA Tel: +1 (202) 473 3202- Fax: +1 (202) 522 3240 E-mail: [email protected] www.thegef.org Council Member 2 June 11, 2014 lfyou do not have access to the Web, you may request the local field office ofUNDP or the World Bank to download the document for you. Alternatively, you may request a copy of the document from the Secretariat. If you make such a request, please confirm for us your current mailing address. Sincerely, f#~t Chief Executive Officer and Chairperson Attachment: Project Document Copy to: Country Operational Focal Point, GEF Agencies, STAP, Trustee FAO/GLOBAL ENVIRONMENT FACILITY PROJECT DOCUMENT PROJECT TITLE: INTEGRATED MANAGEMENT OF MARINE AND COASTAL AREAS OF HIGH VALUE FOR BIODIVERSITY IN CONTINENTAL ECUADOR PROJECT SYMBOL: GCP/ECU/084/GFF Recipient Country/ies: Ecuador Resource Partner: Global Environment Facility (GEF/GEF) FAO project ID: 615692 GEF/LDCF/SCCF Project ID: 4770 Executing Partner(s): Ministry of the Environment (MAE), Conservation International Foundation CI, Humanist Institute For Cooperation HIVOS Expected EOD (starting date): June 2014 Expected NTE (End date): June 2018 Contribution to FAO’s a. Strategic objective/Organizational Result: OE 2 (LO-1, LO2) Strategic Framework b. Regional Result/Priority Area: Sustainable management and use of fisheries resources and aquaculture c. Country Programming Framework Outcome: PRIORITY AREA 4: Contribute to the consolidation of environmental public policy through conservation, assessment and sustainable management of biodiversity and natural resources as a strategic resource of the State and to ensure ecosystem services, and develop strategies for adaptation and mitigation to tackle climate change and ensure food sovereignty. GEF Focal Area/LDCF/SCCF: Biodiversity GEF/LDCF/SCCF Strategic Objectives: BD-1, BD-2 Environmental Impact Assessment Category (insert √): A B C√ Financing Plan: GEF/LDCF/SCCF allocation: USD 4,258,788 Co-financing: Ministry of Environment USD 9,524,597 Conservation International USD 1,881,171 National Institute of Fisheries USD 263,787 HIVOS USD 550,900 FAO USD 250,540 FAN USD 802,796 MAGAP USD 2,000,000 GIZ USD 500,000 Prefecture of Guayas USD 300,000 Wildaid USD 250,000 CEDEAL USD 150,000 UNHCR USD 77,000 Mangrove concessionaries USD 2,856,356 Subtotal Co-financing: USD 19,407,147 Total Budget: USD 23,665,935 EXECUTIVE SUMMARY Ecuador has a high diversity of marine and coastal ecosystems, including nesting beaches for four species of sea turtles (Chelonia mydas, Lepidochelys olivacea, Eretmochelys imbricata and Dermochelys coriacea) and extensive mangrove areas (148,230 hectare in 2006). Significant progress has been made to conserve marine and coastal biodiversity, such as the creation of a network of 16 0 marine protected areas (MPAs) covering 332,968 hectares, and the use of mangrove concessions to traditional users, so they protect areas in exchange for sustainable exploitation of the resources already there. However, coastal environments are primarily threatened by the mismanagement of the waterfront in areas of high biodiversity value, the limited local capacity to efficiently manage mangrove areas and the intense pressure of artisanal fishing on MPAs. These factors are causing degradation of nesting beaches of sea turtles, mangrove deterioration, and severe decline in coastal fishery resources. MPA management is not aligned with municipal management and has not been able to control and manage the fishing activities of local groups and poachers. Additionally, not all concessions have achieved full management of the areas in custody and concessionaires are limited to invest in capital goods. The proposed project is a joint effort of the Ministry of Environment, CI- Ecuador, HIVOS, other local stakeholders, FAO and the GEF to reinforce the conservation of coastal areas of high biodiversity value. The project will focus on protecting sea turtles nesting beaches, strengthen development of mangrove concessions granted to of local groups, and improve rights based mechanisms to sustainably manage fisheries within marine protected areas and mangrove concessions; all supported by reinforcement of the regulatory framework for conservation and management of marine and coastal biodiversity. The Global Environment Objective is to develop an integrated management approach for the use and conservation of coastal and marine areas of high biodiversity value, by establishing conservation areas, strengthening mangrove concessions and integrating biodiversity conservation in fisheries management within conservation areas. The Project Development Objective is to improve and sustain livelihood conditions for coastal communities depending on near shore fisheries, in particular fishermen and women catching red and brown shell crab for a living in the Gulf of Guayaquil and estuary of Cayapas - Mataje.. The project has four components: • Component 1. Integrated management of coastal areas of high-value for biodiversity • Component 2: Conservation of biodiversity in fisheries management. • Component 3: Strengthening of the regulatory framework for the conservation and management of marine and coastal biodiversity. • Component 4: Monitoring, evaluation and dissemination of information. The expected results are: (1) Four new coastal-marine conservation areas (c.a., 15.000 ha) will be under integrated and effective management (at least 50/90 points in the management effectiveness tracking tool of GEF, METT) leading to stabilizing or increasing the detection of green turtle, olive ridley sea turtle and leatherback turtle nesting sites (<15 % variation); (2) Conservation of integrated biodiversity in the management of at least 96,000 hectares of mangroves given under concession to community groups, which leads to stabilization or increase in the abundance of species in the ecosystem (crab, dark clam) and threatened species hawksbill turtle (Eretmochelys imbricata) and the coast crocodile (Crocodylus acutus ) (<15% change); (3) 144,000 hectares of marine protected areas (REMACAM, REMGSF, RMEP, rivet and REVISMEM ) and at least 25,000 hectares under mangrove concessions are under sustainable fisheries management, which leads to stabilization or increase in the main fish resource catches (i.e. crab Ucides Occidentalis, dark clam Anadara tuberculos, lobster Panulirus gracilis and P. penicillatus, Pacific bearded brotula Brotula clarkae and octopus Octopus spp); and (4) Conservation measures for the sustainable use of coastal marine biodiversity mainstreamed in regulatory framework for mangrove concessions, fisheries in MPAs, and for the municipal management of coastal zones. 1 TABLE OF CONTENTS GLOSSARY OF ACRONYMS ............................................................................................... 4 SECTION 1 – RELEVANCE (STRATEGIC FIT AND RESULTS ORIENTATION) .... 7 1.1 GENERAL CONTEXT ......................................................................................... 7 1.1.1 Justification ................................................................................................. 18 1.1.2 FAO’s comparative advantages ................................................................ 33 1.1.3 Participants and other stakeholders ......................................................... 34 1.1.4 Lessons learned from past and related work, including evaluations ..... 34 1.1.5 Links to national development goals, strategies, plans, policy and legislation, GEF and FAO’s