TABLE OF CONTENTS ACRONYMS AND ABBREVIATIONS .................................................................................................................... 3 1. SITUATION ANALYSIS ............................................................................................................... 5 PART 1A: CONTEXT ................................................................................................................................................... 5 1.1 Geographic and biodiversity context .......................................................................................................... 5 1.2 Climate change context .............................................................................................................................. 9 1.3 Socio-economic context .............................................................................................................................. 9 1.4 Legislative, policy, and institutional context ............................................................................................ 12 PART 1B: BASELINE ANALYSIS ................................................................................................................................ 14 1.5 Threats to biodiversity and ecosystem services of the EGREE ................................................................. 14 1.6 Management of the CWLS ................................................................................................................... 16 1.7. Trajectory of production activities in the landscape surrounding the CWLS ...................................... 17 1.8. Desired long-term solution and barriers to achieving it...................................................................... 19 2. PROJECT STRATEGY ............................................................................................................... 22 2.1 Conformity with GEF Policy .................................................................................................................... 23 2.2 Country Ownership: Country Eligibility and Country Driven-ness ......................................................... 24 2.3 Project Goal, Objective, Outcomes and Outputs ...................................................................................... 25 Outcome 1: Sectoral planning in the EGREE mainstreams biodiversity conservation considerations ..................... 25 Outcome 2 Enhanced capacity of sector institutions for implementing biodiversity-friendly sector plans including monitoring and enforcement of regulations .................................................................................................................... 31 Outcome 3: Community livelihoods and natural resource use are sustainable in the EGREE ................................. 34 2.4 Key Indicators, Risks and Assumptions .................................................................................................... 36 2.5 Incremental Cost Assessment ................................................................................................................... 38 2.6 Cost-effectiveness ..................................................................................................................................... 40 2.7 Sustainability ............................................................................................................................................ 40 2.8 Replicability .............................................................................................................................................. 41 3. PROJECT RESULTS FRAMEWORK ...................................................................................... 43 4. TOTAL BUDGET AND WORKPLAN ...................................................................................... 49 5. MANAGEMENT ARRANGEMENTS ....................................................................................... 54 5.1 Project Implementation Arrangements ..................................................................................................... 54 5.2 Coordination with related initiatives ........................................................................................................ 57 5.3 Audit arrangements .................................................................................................................................. 58 5.4 Use of institutional logos on project deliverables .................................................................................... 58 6. MONITORING FRAMEWORK AND EVALUATION ........................................................... 58 7. LEGAL CONTEXT ...................................................................................................................... 61 8. ANNEXES ..................................................................................................................................... 62 2 of 118 ACRONYMS AND ABBREVIATIONS APCZMA Andhra Pradesh Coastal Zone Management Authority APPCB Andhra Pradesh Pollution Control Board APFD Andhra Pradesh Forest Department APR Annual Project Review ATLAS UNDP’s Enterprise Resources Platform AWP Annual Work Plan BSAP Biodiversity Strategy and Action Plan CB Conservation Biologist CBD Convention on Biological Diversity CDR Combined Delivery Report CO Country Office COS Communication and Outreach Specialist CP (UNDP) Country Programme CPAP (UNDP) Country Programme Action Plan CPCB Central Pollution Control Board CRZ Coastal Regulation Zone CSR Corporate Social Responsibility CTCT Community to Community Training CWLS Coringa Wildlife Sanctuary CZMP Coastal Zone Management Plan EB Executing Body EDC Eco-Development Committee EGREE East Godavari River Estuarine Ecosystem EIA Environmental Impact Assessment EPA Environmental (Protection) Act, 1986 EqTAP Development of Earthquake and Tsunami Disaster Mitigation Technologies and their Integration for the Asia- Pacific Region FA Financial Assistant FAA Financial and Administrative Assistant FD Forest Department GB Governing Body GEF Global Environment Facility GF Godavari Foundation GoI Government of India Ha Hectares IBA Important Bird Area IC Incremental cost ICZM Integrated Coastal Zone Management IGCMP India GEF Coastal and Marine Programme IP Implementing Partner IR Inception Report IUCN World Conservation Union IW Inception Workshop JFM Joint Forest Management KMC Kakinada Municipal Corporation KSPL Kakinada Sea Port Limited LLPMU Landscape-Level Project Management Unit LPAC Local Project Appraisal Committee M&E Monitoring and Evaluation MMU Mangrove Mangement Unit MoEF Ministry of Environment and Forests MPEDA Marine Products Export Development Authority MSSRF M. S. Swaminathan Research Foundation NaCSA National Centre for Sustainable Aquaculture NBAP National Biodiversity Action Plan NGO Non-government Organization 3 of 118 NPD National Project Director NPMU National Project Management Unit PA Project Associate PAs Protected Areas PCCF Principal Chief Conservator of Forests PCPIRs Petroleum, Chemicals and Petrochemical Investment Regions PIMS Project Information Management System PIR Project Implementation Review PC Project Coordinator PM Project Manager PPG Project Preparation Grant PRIs Panchayati Raj Institutions PSC Project Steering Committee RCU Regional Coordination Unit SADA Shore Area Development Authority SBAA Standard Basic Assistance Agreement SE Subject Expert SELS Socio-economic and Livelihoods Specialist SEZ Special Economic Zone SHG Self-Help Group SO-2 (GEF’s) Strategic Objective 2 (under the Biodiversity Focal Area) SPD State Project Director SPMU State Project Management Unit SPSC State Project Steering Committee SRF Strategic Results Framework TAG Technical Advisory Group TOR Terms of Reference TPR Tri-partite Review TTR Terminal Tri-partite Review UNDAF United Nations Development Assistance Framework UNDP United Nations Development Programme UNDP-CO United Nations Development Programme – Country Office UNDP-GEF United Nations Development Programme – Global Environment Facility Unit USD United States Dollar VLI Village Level Institutions VSS Van Samrakshana Samiti 4 of 118 1. SITUATION ANALYSIS Part 1A: Context 1.1 Geographic and biodiversity context 1. India has a coastline of about 7,500 kilometers of which the mainland accounts for 5,400 kilometers, the Lakshadweep Islands account for 132 kilometers, and the Andaman & Nicobar Islands for 1,900 kilometers. The coastline is endowed with a wide range of ecosystems such as mangroves, coral reefs, sea grasses, salt marshes, sand dunes, estuaries, lagoons and natural habitats. The abundant coastal and offshore marine ecosystems include about 6,740 square kilometers of mangroves, including part of the Sundarbans, the Bhitarkanika, the Pichavaram, and the Coringa, which are among the largest mangroves in the world. These habitats and ecosystems store and cycle nutrients, filter pollutants, protect shorelines from erosion and storms, play a vital role in regulating hydrological functions and modulating climate as they are a major carbon sink and oxygen source, and, in addition, sustain livelihoods of coastal communities. 2. The coastal region that is a focus of the proposed project, namely the East Godavari River Estuarine Ecosystem (EGREE), is located on the eastern side of the Indian peninsula, in the State of Andhra Pradesh. The long coastline of Andhra Pradesh stretches over 973.7 kilometers (12% of India’s total coastline), and covers 9 districts from Srikakulam to Nellore. A prominent