United Nations Development Programme Country: Indonesia PROJECT DOCUMENT Project Title: PIMS No. 4392 Enhancing the Protected Area System in Sulawesi (E-PASS) for Biodiversity Conservation UNPDF Outcome(s): Outcome 5: Strengthened climate change mitigation and adaptation and environmental sustainability measures in targeted vulnerable provinces, sectors and communities. UNDP Strategic Plan Outputs: 1.3 Solutions developed at national and sub-national levels for sustainable management of natural resources, ecosystem services, chemicals and waste. Expected CPAP Outcome: 2.1 Responsible national institutions and relevant stakeholders are more effective in managing environmental resources and addressing environmental pollution Expected CPAP Output: 2.1.1 Government, private sector and CBO partners have coherent and effective policy frameworks, action plans, implementing arrangement and funding arrangement to sustainably manage terrestrial ecosystems. Implementing Agency: United Nations Development Programme (UNDP) Implementing Partner: Ministry of Forestry Responsible Parties: Directorate of Biodiversity Conservation, DG of Forest Protection & Nature Conservation, Ministry of Forestry; Directorate Forestry and Water Resources, BAPPENAS Brief Description Sulawesi (17.46 million ha) is the world’s 11th largest island that has a remarkable globally significant diversity of terrestrial flora and fauna with an impressive variety of forest ecosystems, and supports high rates of endemism and species-level biodiversity. Despite such efforts, Sulawesi’s biodiversity remains severely threatened and fast degrading due to a number of human-induced threats. Protection and management of existing PAs has not been adequate to prevent extensive encroachment and damage within PA boundaries, whilst natural areas beyond PA boundaries have been even more rapidly degraded as a result of logging, conversion, mining, fire and hunting. The long-term solution to conserving Sulawesi’s biodiversity is an improved PA system that is well integrated into its surrounding landscape, with the capacities and financial resources to safeguard biodiversity from existing and future threats. Baseline activities, although significant, are deemed insufficient to achieve the above solution. The project objective is to strengthen the effectiveness and financial sustainability of Sulawesi’s PA system to respond to existing threats to globally significant biodiversity. This objective will be achieved through three interconnected components: 1. Enhanced systemic and institutional capacity for planning and management of Sulawesi PA system; 2. Financial sustainability of the Sulawesi PA system; 3. Threat reduction and collaborative governance in the target PAs and buffer zones. The project will be implemented by the Ministry of Forestry under National Implementation Modality (NIM). Country Programme Period : 2011-2015 Strategic Plan Outputs (2014-2017) : Output 1.3 Total allocated resources : USD 6,465,000 Atlas Award ID : 00077733 • Regular (TRAC) : USD 200,000 Project ID : 00088356 • Donor (GEF) : USD 6,265,000 PIMS # : 4392 Start date : April 2015 Parallel funding: : USD 43,700,000 End Date : April 2020 • Government of Indonesia : USD 41,500,000 PAC Meeting Date : Oct 21, 2014 Management Arrangements : NIM • UNDP : USD 2,000,000 • Selamatkan Yaki (NGO) : USD 200,000 1 2 Table of Contents PART I: Situation Analysis ........................................................................................................................... 7 Introduction .................................................................................................................................... 7 Context and Global Significance ..................................................................................................... 8 Threats, root causes and impacts ................................................................................................... 18 Long-term Solution, barriers and associated baseline activities ...................................................... 24 PART II: Strategy ........................................................................................................................................ 38 Project Rationale and Policy Conformity ....................................................................................... 38 Project Goal, Objective, Outcomes and Outputs/activities.............................................................. 40 Project Indicators .......................................................................................................................... 51 Incremental Reasoning and Expected Global, National and Local Benefits .................................... 65 Cost-effectiveness ......................................................................................................................... 69 Project Consistency with National Priorities/Plans ......................................................................... 69 PART III: Results & Resources Framework (RRF) ................................................................................ 75 PART IV: Annual Work Plan and Budget ................................................................................................ 86 PART V: Management Arrangements ..................................................................................................... 130 Project Management.................................................................................................................... 133 PART VI: Monitoring and Evaluation Plan and Budget ....................................................................... 136 Monitoring and Reporting ........................................................................................................... 136 Independent Evaluations, Audits and Financial Reporting ........................................................... 140 Learning and Knowledge Sharing................................................................................................ 141 Communications and Visibility Requirements ............................................................................. 141 Audit Clause ............................................................................................................................... 142 PART VII: Legal Context .......................................................................................................................... 143 List of Annexes Annex 1: Co-financing Letter Annex 2: Supplemental Provisions to the Project Document Annex 3: Country Office Support Service (COSS) Agreement 3.1. Description of UNDP Country Office Support Services (COSS) Annex 4: Environmental and Social Screening Procedure (ESSP) Summary Report Annex 5. Capacity Development Scorecards 5.1. Directorate General of Forest Protection and Nature Conservation (PHKA), Ministry of Forestry 5.2. Natural Resources Conservation Agency (BKSDA) of North Sulawesi, Ministry of Forestry 5.3. Bogani Nani Wartabone National Park Agency 5.4. Lore Lindu National Park Agency Annex 6. BD-1 Tracking Tool, incl. METTs and Financial Sustainability Scorecard Annex 7: Landscape profiles 7.1. PA landscape profile – Tangkoko / East Minahasa 7.2. PA landscape profile – Lore Lindu 7.3. PA landscape profile - Bogani Nani Wartabone Annex 8. Ecosystem Health Index: Overview and site-level indices 8.1. A Brief Summary of the Ecosystem Health Index (EHI) Methodology 8.2. Ecosystem health indices for project demonstration sites Annex 9: Suggested Indicator Species for use at different project sites Annex 10: Biodiversity monitoring needs of demonstration sites under E-PASS 3 Annex 11: Criteria measurement of RBM performance (2012) Annex 12: Letter Establishing RBM Policy (original and translation) Annex 13. Community Stakeholder Assessment and Stakeholder Involvement plan Annex 14: Summary Stakeholder Involvement Plan 14.1. Stakeholder Engagement 14.2. Goal and Objectives for Stakeholder Involvement Annex 15: Terms of Reference for key project staffs List of Tables and Maps MAP 1: SULAWESI ................................................................................................................................................................................. 7 TABLE 1: PROTECTED AREAS OF SULAWESI BY PROVINCE AND TYPE ........................................................................ 13 TABLE 2: PERCENTAGE OF TOTAL AREA OF SULAWESI PROVINCES COVERED UNDER PROTECTED AREAS14 TABLE 3: SUMMARY OF THREATS, DRIVERS AND CAUSES FACING SULAWESI’S PAS ............................................. 20 TABLE 4: PRELIMINARY HABITAT INTACTNESS SCORES FOR 4 LANDSCAPES EAST MINAHASA, BOLAANG MONGONDOW, GORONTALO, AND LORE LINDU ................................................................................................. 22 TABLE 5: THREATS AND ECOSYSTEM HEALTH INDICES FOR PROJECT SITES ........................................................... 22 TABLE 6: THREATS FACING PROJECT DEMONSTRATION SITES...................................................................................... 23 TABLE 7: STAKEHOLDER ANALYSIS ........................................................................................................................................... 36 TABLE 11: PROJECT OBJECTIVES, OUTCOMES, INDICATORS AND TARGETS .............................................................. 52 TABLE 12: RISK ASSESSMENT GUIDANCE MATRIX USED FOR THE RISK ASSESSMENT ......................................... 64 TABLE 13: BASELINE