United Nations Development Programme Country: Bosnia and Herzegovina PROJECT DOCUMENT Project Title: Technology transfer for climate resilient flood management in Vrbas River Basin Project Title: Technology transfer for climate resilient flood management in Vrbas River Basin UNDAF Outcome(s): Outcome 5: By 2019 legal and strategic frameworks are enhanced and operationalized to UNDAF Outcome(s): Outcome 5: By 2019 legal and strategic frameworks are enhanced and operationalized to ensure sustainable management of natural, cultural and energy resources. ensure sustainable management of natural, cultural and energy resources. UNDP Strategic Plan Primary Outcome: 1. Growth and development are inclusive and sustainable, incorporating UNDP Strategic Plan Primary Outcome: 1. Growth and development are inclusive and sustainable, incorporating productive capacities that create employment and livelihoods for the poor and excluded. UNDP Strategic Plan productive capacities that create employment and livelihoods for the poor and excluded. Output: 1.4 Scaled up action Output: 1.4 Scaled up action on climate change adaptation and mitigation across sectors which is funded and on climate change adaptation and mitigation across sectors which is funded and implemented implemented Expected CP Outcome(s): Expected CP Outcome(s): Outcome 5: By 2019 legal and strategic frameworks are enhanced and operationalized to ensure sustainable Outcome 5: By 2019 legal and strategic frameworks are enhanced and operationalized to ensure sustainable management of natural, cultural and energy resources. management of natural, cultural and energy resources. Expected CPD Output (s) Expected CPAP Output (s) Lead output: Output 5.2: Subnational actors implement climate change adaptation (CCA) and mitigation measures, Lead output: Output 5.2: Subnational actors implement climate change adaptation (CCA) and mitigation measures, sustainable energy access solutions, and manage natural resources sustainably. sustainable energy access solutions, and manage natural resources sustainably. Complementary Output 5.1: Harmonized policies and legal frameworks enforced in accordance with international Complementary Output 5.1: Harmonized policies and legal frameworks enforced in accordance with international obligations. obligations. Complementary Output 3.2: UNDAF outcome 3. By 2019, there is effective management of war remnants and Complementary Output 3.2: UNDAF outcome 3. By 2019, there is effective management of war remnants and strengthened prevention and responsiveness for man-made and natural disasters, Output 2. Legal and policy strengthened prevention and responsiveness for man-made and natural disasters, Output 2. Legal and policy frameworks in place supporting implementation of disaster and climate risk management measures, including gender frameworks in place supporting implementation of disaster and climate risk management measures, including gender perspective perspective Executing Entity/Implementing Partner: UNDP Executing Entity/Implementing Partner: UNDP UNDP Environmental Finance Services Page 1 Brief Description Bosnia and Herzegovina (BiH) is a middle income country with an estimated 3.8 million inhabitants, which is still recovering from the 1992-1995 war which had a devastating impact on its human, social and economic resources, leading to enormous challenges of the post-war reconstruction and economic and social recovery. This challenge has been further compounded by the transition towards market economy requiring structural reforms and improved governance. The slow rate of the post-war economic recovery of Bosnia and Herzegovina has been compounded by the negative impacts of climate change on key sectors such as agriculture, energy (hydropower), the environment and, in particular, the frequency and magnitude of flood disasters, which have tripled in frequency in the last decade.. In May 2014, Bosnia and Herzegovina experienced its worst flooding in 150 years which resulted in 23 deaths and $2.7 Billion USD worth of damages which is 15% of GDP, and is expected to result in a 1.1 percent contraction in the economy this year, compared to the growth of 2.2 percent that had been predicted before the flood. BiH is significantly exposed to the threats of climate change, but has very limited capacity to address and adapt to its negative impacts, in particular the frequency and magnitude of floods from its major rivers. The Vrbas River basin is characterized by a large rural population comprised of the poorest and most vulnerable communities in BiH, including war returnees and displaced people, with high exposure to flooding and its devastating impacts. The SCCF funds will be used to enable the communities of the Vrbas basin to adapt to flood risk through the transfer of adaptation technologies for climate resilient flood management, upgrade and rehabilitation of the hydrometric monitoring network, development of a flood forecasting system and early Implementing Entity/Responsible Partners: Ministry of Spatial Planning, Construction, and Ecology of warning system, development of emergency response plans, and provision of training in flood-specific civil protection. Importantly, the project will provide targeted training on climate-induced FRM to over 100 Republika Srpska, Ministry of Foreign Trade and Economic Relations of Bosnia and Herzegovina practitioners and decisions makers, and will develop an institutional capacity development plan for the long-term development of capability and capacity in Flood Risk Management (FRM). The project will work closely with affected communities to introduce climate resilient community-based non-structural measures and provide training to local communities in climate resilient FRM. This will include the introduction of agro-forestry, community-based early warning systems, reforestation and introduction of financial instruments such as index- based flood insurance and credit deference schemes as a means of compensating for flood damages for agriculture. The enabling environment will be enhanced by embedding climate change into key sector policies, strategies and plans to enable climate resilient flood risk management within sectors that impact flood risk significantly, including land use and spatial planning, forestry, agriculture and energy sectors. Specifically, the project will introduce floodplain management regulations that will enhance zoning of development and activities away from high risk areas. Hence, the project will help the government of BiH and the population of the targeted region to develop adaptive capacity and embark on climate resilient economic activities. Implementing Entity/Responsible Partners: Ministry of Spatial Planning, Construction, and Ecology of Republika Srpska, Ministry of Foreign Trade and Economic Relations of Bosnia and Herzegovina Programme Period: 2014-2018 Total resources required 82,260,000 Atlas Award ID: 00083690 Total allocated resources: 82,260,000 Project ID: 00092036 Regular UNDP 1,500,000 Other: PIMS # 5241 o GEF 5,000,000 Start date: April 2015 o Government 75,700,000 End Date April 2020 o In-kind Management Arrangements DIM o Other PAC Meeting Date 26 Feb 2015 In-kind contributions UNDP 60,000 Agreed by (Government): Date/Month/Year Agreed by (Executing Entity/Implementing Partner): UNDP Date/Month/Year UNDP Environmental Finance Services Page 2 Table of Contents List of Acronyms ..................................................................................................................... 4 1. Situation analysis ............................................................................................................ 7 1.1. Climate change - induced problem .................................................................................. 7 1.2 Vulnerability of Vrbas River Basin communities ...............................................................11 1.3 Existing legislative, policy and institutional framework related to water and flood risk management in BiH ...............................................................................................................15 1.4. Long-term solution and barriers to achieving the solution ..............................................21 2 Strategy ..........................................................................................................................24 2.1. Country ownership: country eligibility and country drivenness .......................................24 2.2. Project rationale and policy conformity ...........................................................................25 2.3. Design principles and strategic considerations ...............................................................26 2.4. Project Objective, Outcomes and Outputs/activities ........................................................32 2.5. Gender and vulnerable groups .......................................................................................62 2.6. Key indicators, risks and assumptions ............................................................................64 2.7. Cost-effectiveness ........................................................................................................64 2.8. Sustainability ..................................................................................................................65 2.9. Replicability ....................................................................................................................66 2.10. Stakeholder involvement plan .......................................................................................66