48871 Paper number 117 ENVIRONMENT DEPARTMENT PAPERS Natural Resource Management Series Environment Department Public Disclosure Authorized THE WORLD BANK 1818 H Street, NW Washington, D.C. 20433 Telephone: 202-473-3641 Facsimile: 202-477-0565 Plans, and Projects Policies, Resources in Water Environmental Flows Environmental Flows in Water Resources Policies, Plans, and Public Disclosure Authorized Projects Case Studies Rafik Hirji and Richard Davis April 2009 Public Disclosure Authorized Public Disclosure Authorized Sustainable Development Vice Presidency Printed on recycled paper stock, using soy inks. cover 117 Env flows.indd 1 4/16/2009 4:56:49 PM THE WORLD BANK ENVIRONMENT DEPARTMENT Environmental Flows in Water Resources Policies, Plans, and Projects Case Studies Rafik Hirji and Richard Davis April 2009 Papers in this series are not formal publications of the World Bank. They are circulated to encourage thought and discussion. The use and citation of this paper should take this into account. The views expressed are those of the authors and should not be attributed to the World Bank. Copies are available from the Environment Department of the World Bank by calling 202-473-3641. Environmental flow 4-9-09.indd 1 4/9/09 12:44:47 PM © The International Bank for Reconstruction and Development/THE WORLD BANK 1818 H Street, N.W. Washington, D.C. 20433, U.S.A. Manufactured in the United States of America First printing January 2008 Design: Jim Cantrell Cover photo: Gas flaring, natural gas being burned to CO2 during oil production: Simone D. McCourtie/World Bank Photo Library © The International Bank for Reconstruction and Development/THE WORLD BANK 1818 H Street, N.W. Washington, D.C. 20433, U.S.A. Manufactured in the United States of America First printing April 2009 Design: Jim Cantrell Cover images: left: Chinese fisher, Shutterbox Images LLC right: The Lower Kihansi Hydropower Plant and bypass release valve, Tanzania; Dr. Fadhila H A Khatibu, National Environment Management Council Environmental flow 4-9-09.indd 2 4/9/09 12:44:47 PM Contents Foreword v Acknowledgments vii Acronyms ix Summary xiii I Case Study Criteria 1 Selection of Case Studies 3 Case Study Characteristics 3 Case Study Assessment 5 II Policy Case Studies 9 Australian Water Reform 11 European Union Water Framework Directive 21 South Africa National Water Policy and Legislation 31 Tanzania National Water Policy 41 Florida Water Management Policy 51 III Basin/Catchment Plan Case Studies 59 Kruger National park and Catchments 61 Mekong River Basin 71 Pangani Basin Environmental Flow Assessment 81 Pioneer Catchment 87 IV Project Case Studies 93 Restoration of the Northern Aral Sea 95 Berg Water Project 101 Bridge River Water Use Plan 111 Restoration of Chilika Lagoon 121 Lesotho Highlands Water Project 129 Lower Kihansi Gorge Restoration Project 137 Senegal River Basin 145 Tarim Basin 153 Institutions and Governance Series iii Environmental flow 4-9-09.indd 3 4/9/09 12:44:48 PM Environmental Flows in Water Resources Policies, Plans, and Projects — Findings and Recommendations Tables A.1 Characteristics of Case Studies 4 11.1 Condition Ratings for the Berg River 102 11.2 The Yield, Cost, and other Implications of Environmental Release Scenarios 108 16.1 Value of Floodplain Production under Pre-dam Conditions 147 Figures A.1 Location of Case Studies 4 2.1 Status options for water bodies in the WFD 22 13.1 Total Fish, Prawn, and Crab Landings in Chilika Lagoon, 1995–2005 122 Boxes A.1 Assessment Criteria for In-Stream Flow Programs in the United States 5 A.2 Drivers for Environmental Flows 7 A.3 Drivers for Water Resource Policy Reform and Inclusion of Environmental Flows 8 1.1 ARMCANZ/ANZECC National Principles for the Provision of Water for Ecosystems 12 1.2 Interpreting Environmentally Sustainable Levels of Extraction 15 2.1 Wetlands and Environmental Flows in Spain 27 3.1. Development of Environmental Flow Methods in South Africa 34 4.1 Tanzania Water Management Conflicts 42 5.1 Minimum Flows and Levels 52 6.1 Transboundary Water Management 61 6.2 Instream flow Requirements and the Building Block Methodology 63 7.1 The Tonle Sap Ecosystem 71 8.1 Water Use Conflicts in the Pangani Basin 81 11.1 The Trans-Caledon Tunnel Authority (TCTA) 104 12.1 The Stl’atl’imx First Nation 116 iv Environment Department Papers Environmental flow 4-9-09.indd 4 4/9/09 12:44:48 PM Foreword nvestments in infrastructure provide opportunities The World Bank’s 2003 Water Resources Sector for economic growth and poverty alleviation. Many Strategy calls for investing in “high risk” infrastructure developing nations face the major development projects (such as dams) in an environmentally and challenge of providing the infrastructure to meet the socially responsible manner. It calls for a new business Igrowing demand for water for domestic consumption, model for developing high risk water infrastructure that agriculture, energy and industry and to buffer against takes full account of both upstream and downstream the vulnerabilities to floods and droughts. Climate environmental and social impacts of the infrastructure change is likely to heavily impact water supply and in a timely, predictable, and cost effective manner. demand and worsen extreme events. Adaptation to Apart from reducing uncertainties associated with climate variability and climate change may require project decision making and financing, this socially a suite of solutions including investments in water and environmentally responsible approach will help resources management policies, plans and institutions, sustain ecosystem services on which many poor people demand management, conservation and protection in developing countries rely. The formation of the of watersheds, lakes, wetlands and aquifers as well as Sustainable Development Network in 2007 has further rehabilitation, upgrading and construction of new elevated environmental responsibility as a core element on-stream and off-stream abstractions, small and large of the World Bank’s work. dams, and interbasin transfers as well as conjunctive use of surface and ground water. The global food crisis has The World Bank’s own analysis and the far-reaching refocused attention on improving agriculture, including report of the World Commission of Dams have investment in irrigation infrastructure among other both shown that dam developments have not always actions in developing nations, while the global energy been planned, designed or operated satisfactorily. crisis has drawn attention to accelerating investments in Even though dams generate considerable benefits in energy production, including hydropower development. aggregate, these benefits have not always been shared The current global financial and economic crisis equitably. Dams have often been developed without is adding weight to the argument for increasing adequate consideration for either the environment or investments in infrastructure in the water, transport, the people downstream of the dam who rely on local and energy and other sectors in both developed and ecosystem based services. developing nations both as a solution to and buffer The World Bank’s knowledge and experience in against the uncertainties associated with the economic addressing impacts upstream of dams has advanced downturn. In all cases, SDN’s challenge will be how considerably over recent decades. However, its experience and at what pace to increase infrastructure investments in addressing the downstream impacts of water resources while maintaining the necessary measures required for infrastructure, although growing, remains limited. economic, social and environmental sustainability. Institutions and Governance Series v Environmental flow 4-9-09.indd 5 4/9/09 12:44:48 PM Environmental Flows in Water Resources Policies, Plans, and Projects — Findings and Recommendations Environmental flow work within the Bank has been development. It focuses on the integration of shaped by the evolving global knowledge, practice and environmental water allocation into integrated water implementation of environmental flows. The Bank resources management (IWRM) and so fills a major has also contributed to this growing international gap in knowledge on IWRM. It also contributes to experience particularly through its support for the broadening our understanding of benefit sharing Lesotho Highland Water Project, the restoration of from risky infrastructure development. This report is the downstream parts of the Tarim River, and the an output of an important collaboration between the restoration of the Northern Aral Sea and the Senegal Bank’s Environment Department and Energy, Transport River basin. It has also supported environmental and Water Department to promote and mainstream flow initiatives in Central Asia, China, Ecuador, sustainable development. India, Mexico, Mekong River, Moldova and Ukraine, Tajikistan, and Tanzania, and has produced knowledge products and support material including a series of technical notes on environmental flows. James Warren Evans This report further contributes to international Director knowledge about environmental flows and sustainable Environment Department vi Environment Department Papers Environmental flow 4-9-09.indd 6 4/9/09 12:44:49 PM Acknowledgments his report titled, “Environmental Flows in Water (NHI), Kisa Mfalila (WWF, UNDP, UNEP), and Mike Resources Policies, Plans and Projects: Case Acreman (IUCN, IWMI). studies” was prepared by Rafik Hirji (ETWWA) The authors wish to acknowledge the following staff and Richard