UNDP Project Document Government of Egypt United Nations Development Programme Executing Agency: Ministry of State for Environmental Affairs/ Egyptian Environmental Affairs Agency, Government of Egypt PIMS 3668 Atlas award 00057529; project ID 00071131: 3668 3668 Egypt: Strengthening Protected Area Financing and Management Systems Brief description Strategically situated at the intersection of three continents, Egypt’s terrestrial and marine habitats support biodiversity of substantial global significance. Even though country terrestrial species diversity is relatively low due to Egypt’s general aridity, many species are very narrowly distributed, making habitat conservation crucial to their survival. Marine biodiversity is also significant, with Egypt’s Red Sea coral reefs showing considerable endemism. There is also important genetic diversity. At least 143 species of threatened animals are to be found. Three main categories of persisting threats and associated causes of biodiversity loss have been identified. These are: (i) conversion and/or destruction of natural habitats; (ii) degradation of natural habitats, and; (iii) unsustainable utilization of biodiversity resources. Protected areas have a potentially critical role to play in reducing the above threats to Egypt’s biodiversity. Egypt’s system of protected areas (PAs) is divided geographically into five management units: Sinai, Cairo, Western Desert, Red Sea and Upper Egypt. Currently, Egypt’s 27 PAs cover 148,023 km2, or about 15% of the nation’s total land area. The proposed long-term solution for biodiversity conservation of Egypt’s protected areas is an effective and sustainable PA system operated by an autonomous NCS that has the financial wherewithal and management capacities needed for effective management. The foundation of the long-term solution is a sustainable financing system resting on the following three pillars: (i) Legal, regulatory and institutional frameworks that support sustainable PA financing; (ii) Tools and practices for revenue generation and mobilization, and; (iii) Business planning and other tools for cost- effective management. The project objective is the establishment of a sustainable protected area financing system, with associated management structures, systems and capacities needed to ensure the effective use of generated revenues for priority biodiversity conservation needs. It will achieve this objective by strengthening each of the above pillars as follows: Outcome 1: Legal, policy, regulatory and institutional frameworks that facilitate revenue generation, revenue retention and other aspects of sustainable PA financing and management are established and functional. Outcome 2: Levels of financial resource mobilization are adequate to ensure effective conservation-oriented management of Egypt’s PA system. Outcome 3: Business planning and cost-effective management systems are ensuring the effective allocation and management of mobilized resources. 1 Table of Contents SECTION I: Elaboration of the Narrative ....................................................................................4 PART I: Situation Analysis ...................................................................................................4 1.1. Context and global significance ..................................................................................4 Environmental context .....................................................................................................4 Protected area system: Current status and coverage..........................................................6 Institutional context: ........................................................................................................8 Socio-economic context ................................................................................................. 10 1.2. Threats, causes and impacts ..................................................................................... 11 1.3. Long-term solution and barriers to achieving the solution ................................ 13 1.4. Stakeholder analysis ................................................................................................. 20 1.5. Baseline analysis ....................................................................................................... 23 Part II: Strategy .................................................................................................................. 28 2.1 Project Rationale and Policy Conformity ........................................................... 28 Fit with the GEF Focal Area Strategy and Strategic Programme .................................... 29 Rationale and summary of GEF Alternative ................................................................... 29 2.2 Project Goal, Objective, Outcomes and Outputs/activities ................................ 29 2.3 Project Indicators, Risks and Assumptions ........................................................ 39 2.4 Incremental reasoning and expected global, national and local benefits ........... 43 2.5 Country Ownership: Country Eligibility and Country Drivenness ................... 49 2.6 Sustainability ........................................................................................................ 50 2.7 Replicability ......................................................................................................... 51 PART III: Management Arrangements ............................................................................. 51 PART IV: Monitoring and Evaluation Plan and Budget................................................... 52 PART V: Legal Context ...................................................................................................... 58 SECTION II: STRATEGIC RESULTS FRAMEWORK (SRF) AND GEF INCREMENT ........ 59 SECTION III: Total Budget and Workplan ............................................................................... 63 SECTION IV: ADDITIONAL INFORMATION ...................................................................... 71 PART I: Other agreements ................................................................................................. 71 PART II: Terms of References for key project staff .......................................................... 71 SIGNATURE PAGE ................................................................... Error! Bookmark not defined. 2 Acronyms BioMAP Biodiversity Monitoring and Assessment Project EEAA Egyptian Environmental Affairs Agency MSEA Ministry of State for Environmental Affairs NCS Nature Conservation Sector PA Protected area 3 SECTION I: Elaboration of the Narrative PART I: Situation Analysis 1.1. Context and global significance Environmental context 1. Strategically situated at the intersection of three continents, Egypt’s terrestrial and marine habitats support biodiversity of substantial global significance. The country is terrestrially subdivided into about 19 physio-geographic sub-regions. These sub-regions represent the basic conservation units in the country, and include the Red Sea and Mediterranean coastal areas, the Nile valley, mountain regions, and desert habitats.1 2. The country’s species representation includes at least 369 species of non-flowering vascular plants, 2,072 species of flowering plants, 10,000 species of insects, 1,422 other invertebrates, 755 fish, 470 birds, 126 mammals,2 and 118 reptiles and amphibians. 3 Even though country terrestrial species diversity is relatively low due to Egypt’s general aridity, many species are very narrowly distributed,4 making habitat conservation crucial to their survival. Marine biodiversity is also significant, with Egypt’s Red Sea coral reefs showing considerable endemism. There is also important genetic diversity, including locally adapted plant varieties in the Western Desert oases and locally adapted plant varieties found in isolated oases, on high altitude mountains and across various bio-geographical barriers (such as the Red Sea and Nile River). 3. Egypt hosts a sizeable number of endangered species recognized by IUCN as needing conservation management. At least 143 species of threatened animals are to be found in the country,5 including the highly endangered Slender Horned Gazelle (Gazella leptoceros) and the Egyptian Tortoise (Testudo kleinmanni). The flora includes 82 threatened species.6 Finally, Egypt represents a vital artery for bird migration, including 39 threatened species, and serves as a major flyway for migrating soaring birds and an important wintering ground for waterbirds. Thirty four Important Bird Areas have been listed to date by BirdLife International. 4. Egypt’s long coastline borders the Mediterranean Sea in the north, and the Red Sea in the east, and is of great environmental and economic importance. The marine habitats along these shores, together with the islands, beaches, the Nile river delta, mountains, plains and other coastal landscape elements, support substantial and critical elements of Egypt’s biodiversity. Various types of land and seascape are found within Egypt’s coastal areas, where the Red Sea and Mediterranean Sea “represent quite different marine systems, in terms of their ecology, morphology and biota”.7 The Nile Delta culminates on the Mediterranean coast, and a number of important wetlands are found around this area. The Red Sea coastal area lies at the easternmost edge of the Eastern Desert, and ranges in width from 8-35 km. 8 It is bounded by the Red Sea Mountains—a continuous chain of mountain ridges