PROJECT IDENTIFICATION FORM (PIF)
PROJECT TYPE: Full-sized Project
THE GEF TRUST FUND
Submission Date: October 14, 2008
Re-submission Date: February 4, 2009
PART I: PROJECT IDENTIFICATION
GEFSEC PROJECT ID1:
GEF AGENCY PROJECT ID:
4048
COUNTRY(IES): Pakistan
PROJECT TITLE: Mountains and Markets: Biodiversity and Business
in Northern Pakistan
GEF AGENCY(IES): UNDP
OTHER EXECUTING PARTNERS: Government of Pakistan
GEF FOCAL AREA (S): Biodiversity
GEF-4 STRATEGIC PROGRAM(S): BD SP-5
INDICATIVE CALENDAR
Milestones
Expected Dates
Work Program (for FSP)
CEO Endorsement/Approval
June 2009
March 2010
GEF Agency Approval
Implementation Start
Mid-term Review (if planned)
Implementation Completion
June 2010
July 2010
October 2012
March 2015
A. PROJECT FRAMEWORK (Expand table as necessary)
Project Objective: Sustainable production of biodiversity goods and services through community ecosystem-based enterprises.
Indicate
whether
Project
Investme
Components
nt, TA, or
STA**
1.Stimulating Market TA
Demand for
Biodiversity-Friendly
Non-Timber Forest
Products (NTFP)
Expected Outcomes
Expected Outputs
10 alliances established
with international and
national entrepreneurs
& buyers representing
preferential markets for
certified (or verified)
biodiversity-friendly
Non-Timber Forest
Products from northern
Pakistan
Urban markets for
biodiversity-friendly
NTFP expanded.
1 national partner
organization trained
(and potentially
accredited) to verify
production by
Community
Biodiversity Enterprises
(CBEs) participating in
certification scheme.
1
Project ID number will be assigned initially by GEFSEC .
PIF Template, August 27, 2007
Indicative GEF
Financing*
($)
%
645,545
28
Indicative Cofinancing*
($)
%
1,670,900
72
Total ($)
2,316,445
International export
markets for
biodiversity-friendly
NTFP from northern
Pakistan stimulated
Incentive
mechanisms (e.g.,
preferential buying
from project pilot
areas, price
premiums, and
extension services)
to promote
certified/verified
products
established.
1
2. Strengthened
capacity of local
communities to
produce and market
biodiversity-friendly
products
TA
Voluntary certification
systems established and
operational for selected
Non-Timber Forest
Products (NTFPs), and
10 Community
Biodiversity Enterprises
(CBE) participating in
the schemes.
CBE business
development support
packages developed and
delivered.
Incubator Fund for
green products
established and grants
allocated to 10 CBEs.
20% increase in net
earnings per capita of
CBE members,
improving the
individual cost benefit
calculus in favour of
sustainable use &
biodiversity
conservation over other
forms of land use that
degrade biodiversity
3. Conservation
agreements with
producers to
strengthen positive
biodiversity linkages
TA
Pilots established in
4 conservancies for
commercialization
and supply chain
management of
biodiversity-friendly
production of
a) medicinal &
aromatic plants
(MAPs)
b) edible wild foods
and spices (eg morel
mushrooms;
Chilgoza pine nuts;
goji berries (Lycium
barbarum);
28
1,669,000
72
2,314,547
1,116,600
78
1,439,372
Business planning
& management
skills of 10 CBEs
enhanced through
targeted capacity
development.
Business Plans for
10 CBEs developed,
management
systems in place,
and CBEs
registered.
30% increase over
baseline in area of
guzara or communal
land managed through a
certified biodiversityfriendly management
schemes in the
following
conservancies:
1. Kalam (NWFP)
2. Tirichmir
3. Gojal (NA);
4. Gupis (NA), an area
proposed for
conservancy status by
local communities
Increased
investment flows
from government
agencies, banks and
private sector
channeled to CBEs
that contribute to
biodiversity
conservation
objectives.
Conservation
agreements concluded
with 10 CBEs
Protocol for
independent
verification of
compliance with
certification
standards designed
and adopted.
Conservation
agreements with CBEs
reflected in relevant
Valley Conservation
Plans & Conservancy
Management Plan as
appropriate
645,547
322,772
22
2
PIF Template, August 27, 2007
Strengthened
sustainable
management of more
than 10,000 km2 of
private, community and
government lands in
NWFP and Northern
Areas, including more
than 9,000 km2 in the
buffer areas of two
globally significant
national parks,
Khunjerab National
Park and Chitral Gol
Park, both of which
contain a number of
threatened species.
The CBEs will improve
sustainable
management of at least
300,000 ha of land
within this broader
landscape including:
This would include
verification of
biodiversity benefits
arising from
conservation
agreements with
particular emphasis
on globally
significant
biodiversity.
CBE selfassessment of
compliance and
biodiversity benefits
generated through
simple costeffective M&E
system
100,000 ha of
Chilghoza pine forest
on private and
community lands under
sustainable
management.
At least 40,000 ha of
land under certified
production practices in
NWFP and Northern
Areas that meet
sustainability and
biodiversity standards
Improved status of
biodiversity indicators
in areas under certified
production of NTFP
and other areas of
natural habitat over
which CBE members
have control that have
been included in the
conservation
agreements. Specific
indicators to be
monitored by the
CBEs will be agreed
during PPG in
consultation with
government and
community
stakeholders. Possible
indicators include the
following:
3
PIF Template, August 27, 2007
- Reduced hunting and
extraction of all
globally and nationally
threatened species of
flora and fauna within
the sites
managed by the CBEs, expected to cover at least 200,00
- Sustainable habitat
management within
sites managed by the
CBEs, eg regulation of
fuelwood extraction,
grazing and other
subsistence-related
NRM activitie. These
would be monitored
against start of project
baselines.
4. Scale up &
Replication
TA
Increased producer
capacity across
mountain areas of
Pakistan for production
and marketing of
biodiversity-friendly
NTFP
40 viable CBEs
established in other
conservancies
across northern
Pakistan
0
0
1,110,000
100
1,110,000
Increased extension
services and finance
provided to producers
of biodiversity-friendly
NTFP as a result of
increased support and
interest of government
agencies, banks and
donors
5. Project
179,318
22
618,500
78
797,818
management
Total project costs
1,793,182
22
6,185,000
78
7,978,182
* List the $ by project components. The percentage is the share of GEF and Co-financing respectively to the total amount for the component.
** TA = Technical Assistance; STA = Scientific & technical analysis.
B. INDICATIVE FINANCING PLAN SUMMARY FOR THE PROJECT ($)
Project Preparation*
Project
GEF
Co-financing
1,793,182
Total
7,978,182
Agency Fee
179,318
6,185,000
Total
1,972,500
6,185,000
179,318
8,157,500
* Please include the previously approved PDFs and planned request for new PPG, if any. Indicate the amount already approved as
footnote here and if the GEF funding is from GEF-3.
Note: A PPG request for $50,000 is being prepared, including $25,000 GEF funds and $25,000 cofinancing. Thus, the total project amount
will be $8,210,000, including $2,000,000 from the GEF inclusive of the 10% agency fee and PPG funds.
C. INDICATIVE CO-FINANCING FOR THE PROJECT (including project preparation amount) BY SOURCE and
BY NAME (in parenthesis) if available, ($)
Sources of Co-financing
Government of Pakistan
UNDP Pakistan
Type of Co-financing
Grant
Grant
Amount
5,510,000
700,000
4
PIF Template, August 27, 2007
Bilateral Aid Agency(ies)
Multilateral Agency(ies)
Private Sector
NGO
Others
Total co-financing
Unknown at this stage
Unknown at this stage
Unknown at this stage
Unknown at this stage
(select)
6,210,000
D. GEF RESOURCES REQUESTED BY FOCAL AREA(S), AGENCY (IES) SHARE AND COUNTRY(IES)* N/A
* No need to provide information for this table if it is a single focal area, single country and single GEF Agency project.
PART II: PROJECT JUSTIFICATION
A.
THE ISSUE, HOW THE PROJECT SEEKS TO ADDRESS IT, AND THE EXPECTED GLOBAL ENVIRONMENTAL
BENEFITS TO BE DELIVERED:
1. This GEF project will further strengthen on-going biodiversity conservation efforts in northern Pakistan by using
market-based mechanisms to provide additional impetus to strengthening community co-management of Pakistan’s
biodiversity-rich mountain ecosystems. This will be achieved by using voluntary certification of non-timber forest
products (NTFP)2 to increase marketing and financial opportunities for local communities through community
biodiversity enterprises (CBEs). This project will build on the achievements of the recently terminated GEF/Government
of Pakistan/UNDP Mountain Areas Conservancy Project (MACP) but without duplication, as the earlier project did not
seek the comprehensive commercialization of NTFPs. It will also complement a major Government of Pakistan (GoP)
project that is being implemented to consolidate, scale-up and replicate the achievements of MACP.
2. Covering approximately 90,000 sq kms, the Hindu Kush, Karakoram and Western Himalaya mountain ranges of
northern Pakistan are renowned for their ruggedness, breath-taking splendor, and the rich and varied biodiversity that has
resulted from the immense variation in climatic and altitudinal conditions. The mountains harbour the major portion of
Pakistan's limited remaining natural forest, which covers less than 5% of the country's geographic area. Four main biomes
with high floral diversity and endemicity predominate: dry alpine valleys and snowfields; moist alpine meadows; dry
temperate coniferous forests; and holly oak scrub.
3. The region is included in WWFs Global 200 list of unique and globally significant ecoregions. One sixth of Pakistan's
6,000 vascular plant species are found here, including 80% of the country's 300 endemic plant species. The region also
harbours many economically significant trees and plants, such as wild cumin, thyme, pinenut, apricot, walnut, edible
fungi, and some 700 medicinal and aromatic plants (MAPs), including a number of rare and globally threatened species
such as Acorus calamus, Podophyllum hexandrum, Saussurea lappa, Valeriana jatamansi. The region is also home to 45
mammal species, 222 bird species, 32 reptile species and at least 6 amphibian species. Many globally threatened mammal
species still occur in significant populations in these mountains, including Snow Leopard, Himalayan Lynx, Himalayan
Ibex, Marco Polo Sheep, Blue Sheep, Ladakh Urial, Markhor, Musk Deer and the Woolly Flying Squirrel. The Western
Himalayas is classified as an Endemic Bird Area (EBA) of Urgent Biological Importance by Birdlife International.
4. Northern Pakistan is also ethnically and linguistically diverse, with numerous tribes and languages represented.
However, it is also a region characterized by high poverty, with low per-capita income, low literacy and educational
levels, and high infant and maternal mortality. Livelihood opportunities among the mountain communities are very
limited, and most of the local economy revolves around seasonal subsistence agriculture and livestock production. Only
10% of the land is arable. A variety of wild animal and plant products are harvested for subsistence use and to supplement
meagre household incomes. Historically, low human population density had limited the extent of damage to wild
biodiversity and natural ecosystems. However, as human and livestock populations have continued to grow, threats to the
natural resource base have been accelerating. The main direct drivers of mountain biodiversity degradation and loss in
Pakistan have been identified as natural habitat conversion to other forms of land use, habitat degradation due to domestic
livestock grazing, and unsustainable exploitation of wild plant and animal species for commercial and subsistence
purposes. The latter includes the exploitation of a range of NTFPs, as well as notably MAPs, wild edible fungi, along with
hunting of various animals for meat, skins and/or in retaliation for livestock predation. The trade in MAPs, wild edible
fungi and other NTFPs is largely unregulated and undocumented, apart from some studies and domestication trials of
selected species under MACP. Additionally, climate change has emerged as another factor that is likely to greatly
2
NTFP in this proposal also includes other natural products harvested from non-wooded forested areas such as alpine pastures.
PIF Template, August 27, 2007
5
influence the future composition and distribution of biodiversity as well as adversely impact human well-being and local
economic development.
5. Until recently, the Government's approach to biodiversity conservation has been largely focused on conventional
'command and control' protected areas. There are altogether some 225 such PAs covering 10.4% of the total land area.
While PAs are an important element of any biodiversity conservation strategy, PAs alone are generally unlikely to be an
effective means of achieving national or international biodiversity objectives because of limitations in system design (such
as biogeographic coverage, size of individual PAs, ecological connectivity, etc.) It is also difficult and costly for
government to effectively manage and patrol PAs and enforce restrictions on resource use in remote areas such as
northern Pakistan, particularly given the historical independence of local communities and their high economic reliance
on their natural resource base. The starting premise of MACP was that the long-term success of conservation in Pakistan
would depend on the active engagement and support of local communities. Modelled on the southern African concept of
'conservation conservancies', and implemented in the federally administered Northern Areas territory and the North West
Frontier Province, MACP sought to: 1) empower local communities and develop their capacity to conserve biodiversity;
2) enhance the relative values of wild resources as a conservation incentive by promoting their sustainable use; and 3)
create an enabling environment for community-based conservation. MACP's major achievement was to establish new
governance and institutional arrangements for biodiversity conservation and use in the form of co-managed conservancies.
MACP thus represented a paradigm shift in Pakistan's biodiversity policies from command and control conservation
approaches to community-driven, incentives-based co-management approaches. By the end of the project, 8 conservancies
had been established covering 17,607 km2, 66 valleys, and some 370 villages and 260,000 people. MACP was
tremendously successful in increasing local understanding about biodiversity values and the importance of sustainable
natural resource use for economic development as well as in strengthening local capacity for conservation and
development planning and management - no small feat in the socio-economic context of northern Pakistan, which is
characterized by socio-economic division, conservatism and a deep mistrust for both government and outsiders. By the
end of the project, there were active Valley Conservation Committees and approved Valley Conservation Plans in varying
stages of implementation across the conservancies. Additionally, Conservancy Management Committees have been
established and Conservancy Management Plans were under preparation, while legislation to clarify and secure local
people's rights to manage and use natural resources had been drafted and was under review. It is a testimony to the
project's success that GoP has approved a follow up project five-year with a budget of US$ 8 million from its own
resources for the consolidation, scale-up and replication of the MACP approach to conservation and development in
northern Pakistan. This is now fully under implementation, after delays caused by the political changes in Pakistan in the
last 18 months. Meanwhile, the principles of co-mangement of conservancies for the sustainable use of biodiversity have
been legally recognized through the revised Northern Areas Wildlife (Protection, Preservation, Conservation and
Management) Act, 2006.3 A similar law for NWFP is awaiting approval by the provincial assembly.
6. Demonstrating that local incomes and livelihoods could be improved through sustainable resource use (SRU) was an
important component of MACP, with a planned focus trophy and game bird hunting, exploitation of economically
valuable plants and ecotourism in selected field sites. Thus, MACP successfully established and institutionalized trophy
hunting schemes for ibex and markhor in both NWFP and Northern Areas with a high degree of revenue-sharing of trophy
fees with communities by government. MACP also conducted some SRU trials and market assessments of selected plant
species in selected field sites. These interventions were largely focused on demonstrating sustainable production through
cultivation and/or modification to harvesting practices, particularly of some 10 MAP species, with an emphais on species
that could also be cultivated. However, the project plan did not include comprehensive support for product
commercialization, including marketing or supply chain management at higher levels. Engagement with end consumers
and the private sector was largely absent in the conceptualization and implementation of MACP, which was very much
focused on establishing a governance framework for a government and community co-management model as well as
addressing more immediate conservation issues relating to grazing, fuelwood and timber extraction and hunting.
3
Section 17A entitled Conservancy states:
(1) The Government may declare any area, which supports or has the potential to support important biodiversity or has an
outstanding landscape as a Conservancy, which shall be managed collaboratively by the government and other stakeholders
for sustainable use of biodiversity. A conservancy may also include one or more community managed reserves.
(2) The Government or any officer authorized in this behalf may accord legal status to the by-laws of organized community(s)
for the management of natural resources and biodiversity in their jurisdiction.
6
PIF Template, August 27, 2007
7. Nonetheless, MACP has removed at least two of the critical barriers to establishing biodiversity enterprises in northern
Pakistan, namely recognition of the potential economic value of natural assets and security of tenure over these assets.
MACP also started to address knowledge and capacity barriers relating to the harvesting and cultivation of certain NTFPs
and to enhance incomes through SRU, particularly through trophy hunting. However, since ibex and markhor populations
vary in abundance and distribution, the benefits of trophy hunting are also not evenly distributed. Furthermore, poverty
remains widespread, the human population is growing at rates above the national annual average of 2%, and political
instability is increasing. Government is conscious of the need to expand and diversify environmentally sustainable
income-generating opportunities in northern Pakistan, but government budgets and technical capacity for developing and
testing new market-based mechanisms are limited. Government spending is increasingly focused on defence and national
security, while both government and donor development spending is focused on infrastructure development, health and
education. Spending on environment by both government and donors remains small relative to need. The government,
however, has shown its commitment to sustain and replicate solutions that have been successfully tested, as in case of the
MACP model. However, the many achievements of MACP will be undermined and potentially reversed without greater
efforts to tackle the problems of persistent poverty, including people's need for income. Thus, the Government of Pakistan
is interested in seeking GEF co-financing support to further expand environmentally sustainable income-generating
options for local communities in northern Pakistan through the commercialization of non-trophy based natural products
and the establishment of community biodiversity enterprises (CBEs).
8. However, there remain some barriers to the development of successful CBEs.
a) Market Barriers: While there is substantial demand for biodiversity products, the demand for biodiversity-friendly
products in Pakistan is still embryonic, and access to international outlets is hampered by the other barriers described
below. Nevertheless, there is an emerging interest in green products, particularly in urban centers, and some companies
have started small-scale programmes as part of their efforts to increase corporate social and environmental responsibility.
In the case of northern Pakistan, physical access to markets can also be a problem given the region's terrain climatic
conditions and relatively limited transport infrastructure.
b) Technical and business capacity barriers: While MACP increased local technical know-how for sustainable
harvesting, domestication and processing of a number of NTFPs, local community capacity to participate in markets for
sustainably produced natural products remains weak. Local communities have limited knowledge or experience of
business planning and management generally, let alone of biodiversity business planning and management, including new
product development, sustainable production to meet certain standards, quality control, marketing and supply chain
management. Communities have limited access and linkages to buyers wishing to purchase certified products.
Communities also have little understanding of regulatory frameworks on taxation, exports, procurement, or of certification
systems, which are complex to develop, agree and adopt.
c) Financing Barriers: The financial resources of most communities are too limited to cover the start up capital costs of a
sustainable biodiversity enterprise. However, the traditional banking sector is not well suited to provide capital to
community organisations generally, and particlarly for new businesses with which they are unfamiliar. The microfinance
market in Pakistan is small by international standards. It has so far been limited by a narrow range of products, relegating
most small-scale enterprise development to donor funding.
d) Regulatory barriers: Government support for sustainable ecosystem-based market enterprises is very limited. There
are no fiscal incentives to promote the development of green enterprises. There are also no national standards for
certification, verification and enforcement for green products. Current licensing arrangements for commercial extraction
of NTFPs is outdated and unclear.
9. The project will address these barriers to establishing viable CBEs in 3 conservancies and one proposed conservancy in
northern Pakistan targeting the following high-value products: Chilgoza pine nuts (Pinus gerardiana) in Gupis, a
proposed conservancy in Northern Areas; Morel mushrooms (Morchella species), other edible 'superfoods', such as the
Goji berry (Lycium barbarum), and MAPs in Tirichmir and Kalam conservancies in NWFP and Gojal conservancy in
Northern Areas. The project will initially focus only on products that are already harvested and sold nationally and
internationally, but not currently produced in a biodiversity-friendly fashion and therefore not marketed as such. Removal
of barriers to developing CBEs will be achieved by this project through the following components:
a) Component 1: Stimulating Market Demand for Biodiversity-Friendly Products
This component will focus on the demand side by strengthening market outreach to enhance private sector and consumer
awareness of the sustainable development and global environmental benefits of purchasing certified products from7
PIF Template, August 27, 2007
northern Pakistan and thereby develop new alliances and increase demand for higher environmental and social production
standards. The project will target the four key national and international corporations that are currently part of the
medicinal plants supply chain, namely Hamdard (WAQF) Pakistan, Qarshi, Ajmal Dawakhana and Sandoz. The project
will also forge alliances with purchasers of food products such as high-end national hotel operators to stimulate demand
for green products, as well as seek to tap into international niche markets, such as the one for organically produced
'superfoods'.
b) Component 2: Strengthened Capacity of Producers to Produce and Market Biodiversity-Friendly Products
This component will address two critical barriers: community business planning and management capacity for
establishing biodiversity enterprises for certified biodiversity-friendly products and access to finance for establishing
CBEs. Under this component, assistance will be provided for the development and implementation of viable certification
systems for selected NTFPs, including verification and enforcement options. Guidance will be sought from the Forest
Stewardship Council (FSC), which has been trialling models for community-based certification of NTFP. The project will
also work closely with local organizations such as Agha Khan Rural Support Programme and other relevant government
or private sector agencies to develop and provide a comprehensive package of business planning and management support
services to CBEs. These services will cover both technical production and certification issues and general business skills,
including planning, market assessments, product development, supply chain analysis, marketing strategies, quality
assurance, financial management, monitoring and evaluation, and overall strengthenening of the ability of CBEs to access
domestic and international markets and obtain a higher price for their products. The project will support existing local
financial institutions through an incubator seed capital window, to lower risk exposure related to conservation enterprises.
Deal flows will be facilitated between potential buyers of certified products and community enterprises, as well as
between enterprises and the financial institutions that can provide investment capital for developing small and medium
sized enterprises. In particular, the project will seek to identify socially responsible entrepreneurs, who could play a key
role in facilitating CBE access to markets through facilitating access to information, skills and financial support.
Additionallly, the project will also work with the national government and provincial entities to ensure that regulatory
frameworks on taxation, export promotion, public procurement, etc facilitate rather than hinder socially and
environmentally responsible enterprise development.
c) Component 3: Conservation Agreements with Producers to Strengthen Positive Biodiversity Linkages
This component seeks to ensure that CBEs generate real biodiversity benefits by making these more explicit and
documenting these in a legally-binding agreements linked to the relevant Valley Conservation Plans and Conservancy
Management Plans. Thus, sustainable production plans for individual biodiversity products will be embedded within a
broader agreement that clarifies how the CBE is contributing to the conservation of local biodiversity, including globally
significant biodiversity and how the CBE will measure and demonstrate its conservation achievements and address the
equitable distribution of conservation costs and benefits. These agreements will also include some kind of M&E plan with
objectively verifiable impact indicators, baselines and targets. The development of this plan and the overall agreement
will be a pre-requisite for CBEs to receive business development support at start up and satisfactory annual monitoring
and reporting of performance in relation to biodiversity objectives will form the basis for continued assistance. These
conservation agreements will be formulated within the context of the broader conservation regulatory framework,
including existing conservancy management plans and valley conservation plans.
d) Component 4: Scale up and Replication
Once the project has established successful demonstration CBEs in 4 conservancies, scale up and replication will be
undertaken through government co-financing in other parts of northern Pakistan.
10. Through the above interventions, the current project will link some of the supply side reforms initiated under MACP
to market reforms to provide a strong economic incentive for sustainable biodiversity-friendly production of NTFPs,
thereby increasing critical income-generating opportunities that hold greater potential for a larger number of households
than than trophy hunting. Specifically, the project will ensure sustainable use of specific NTFPs such as morel
mushrooms, pine nuts, Goji berries and selected MAP species in 4 conservancies with a total area of some 10,000 km 2
with targeted interventions covering some 5,000 km2 (eg the total area of Chilgoza pine forests in Gupis covers some
1,000 km2 ). The greater value captured by the CBEs from sustainable biodiversity-friendly NTFP production will
strengthen economic incentives for biodiversity conservation at the landscape level and reduce unsustainable use of rare
8
PIF Template, August 27, 2007
and threatened species, not just through changes in the production of individual products, but also through the active
management of knock-on adverse impacts on habitats and species associated with NTFP harvesting.
B. DESCRIBE THE CONSISTENCY OF THE PROJECT WITH NATIONAL PRIORITIES/PLANS:
11. The project conforms with the priorities of several national policies and plans. It is fully in line with the 1992
National Conservation Strategy which emphasizes both conservation and sustainable use of natural resources, including
improved efficiency of natural resource use to realize their potential to contribute to sustainable development without
permanently depleting the natural resource base. The NCS also recognized the importance of action at provincial and local
levels to achieve conservation objectives, as this project proposes to do. The project is also in line with provincial-level
sustainable development strategies of NWFP and Northern Areas. The project responds to several recommended
interventions and actions of Pakistan's Biodiversity Action Plan (2000), particularly on sustainable use and incentive
structures. It is also aligned with the National Environment Policy 2005-2010, which is linked to the Medium-Term
Development Framework for this same period. The NEP identifies sustainable use of biodiversity, including benefitsharing, and medicinal and economic plant conservation as piority areas for action and also recommends creating
incentives for community participation in biodiversity conservation. The project will is also in line with the Rural
Development Strategy of Pakistan's priorities on environmental sustainability. Finally, the project will complement and
build synergies with the government’s follow-on programme to MACP.
C. DESCRIBE THE CONSISTENCY OF THE PROJECT WITH GEF STRATEGIES AND STRATEGIC PROGRAMS:
12. The project is aligned with Strategic Objective 2 of the Biodiversity Focal Area: Mainstreaming Biodiversity in
Production Landscapes and Sectors, and more specifically with SP5, Fostering Markets for Biodiversity Goods and
Services. The project seeks to create market based incentives to address threats to biodiversity in northern Pakistan arising
from unsustainable commercial exploitation of NTFPs. The project will focus on supply chain management, including
development of voluntary certification systems for selected NTFP, strengthening producer capacity to comply with
standards, improvement of direct linkages between producers and markets, as well as enhancing producers' access to
finance.
D.
OUTLINE THE COORDINATION WITH OTHER RELATED INITIATIVES:
13. As described earlier, the project builds on the achievements of the completed GEF/GoP/UNDP Mountain Areas
Conservancy Project (MACP). It will also complement the GEF/World Bank Protected Area Management Project
(PAMP), which is focusing on two national parks in Northern Pakistan and the GEF/UNDP Pakistan Wetlands
Programme, which also has field sites in Northern Areas and NWFP. The project will also coordinate with various
projects undertaken as part of the Palas Valley Conservation programme by the Palas NGO with the support of Birldlife
International and other donors, as well as the work of WWF, IUCN, WCS, all of whom are engaged in community-based
conservation efforts and sustainable resource management in different parts of northern Pakistan. AKRSP will also be an
important partner. The project will not duplicate the work of these other partners and programs. Opportunities for
collaboration and building synergies with these and other organizations and agencies will be explored during the PPG. An
informal coordination task force will enhance cross-fertilization and mutual learning among these initiatives and to avoid
duplication. Similarly, the project will benefit from the experiences with sustainable use schemes promoted through two
GEF/GoP/UNDP MSPs in Balochistan, as well as link with the recently approved GEF/GoP/UNDP MSP on "Promotion
of Energy Efficient Cooking, Heating and Housing Technologies (PEECH), which intends to curb degradation of forests
in Northern Areas and Chitral and decrease CO2 emissions resulting from excessive use of timber and fuel wood for
house construction and household energy use.
E.
DISCUSS THE VALUE-ADDED OF GEF INVOLVEMENT IN THE PROJECT DEMONSTRATED THROUGH
INCREMENTAL REASONING :
14. The present project responds to the problems of persistent wide-spread poverty in northern Pakistan, which threatens
to undermine the region’s fragile environmental sustainability generally and more specifically, the conservancies that
were established under MACP. This poses a serious threat to the region’s globally significant biodiversity, including
unique ecosystems, which are being conserved through the conservancies. The government is committed to consolidating
and replicating the collaborative biodiversity management approaches piloted under MACP. However, MACP was
focused on establishing new institutional and governance frameworks for biodiversity conservation and did not seek to
develop market solutions to biodiversity conservation problems. Given, only 10% arable land in the mountainous regions 9
PIF Template, August 27, 2007
of Pakistan and populations growing at higher than 2% per year, the Goverrment of Pakistan is conscious of the urgent
need to expand and diversify sustainable employment opportunities in northern Pakistan. However, GoP has limited
technical and financial capacity to develop and test market-based solutions. Instead, government efforts to tackle the
problems of poverty in Pakistan are very much focused on health, education, agricultural improvements and infrastructure
development. Thus, in a business as usual scenario, poverty would persist leading to further environmental degradation
and loss of globally significant biodiversity. The value added of the GEF project is that it will provide the technical
capacity and financial resources to develop and test innovative market solutions to threats to biodiversity conservation,
specifically by creating strong economic incentives for sustainable production of NTFPs through developing certification
systems and removing other barriers to sustainable production and enhancing conservation values at the landscape level.
The GEF alternative will generate global environmental benefits within an area of some 10,000 km2.
INDICATE RISKS, INCLUDING CLIMATE CHANGE RISKS, THAT MIGHT PREVENT THE PROJECT OBJECTIVE(S) FROM
BEING ACHIEVED, AND IF POSSIBLE INCLUDING RISK MEASURES THAT WILL BE TAKEN:
Risk
CBEs are not effective because of internal
organizational/capacity issues including capture
of benefits by local elites
Rating
Medium
Opposition to CBEs by intermediary buyers who
may suffer reduction in their profit margins
Medium
Insufficient market demand for products from
CBEs, and other related changes in market
dynamics, eg due to global recession.
Political Instability and insecurity jeopardize
project operations
Environmental risks, including climate variability
and long-term affects production of NTFPs
Medium
Medium
Medium
Risk Mitigation Measure
Selection of well-established and functional community
organizations with a track record in sustainable use activities.
The establishment of CBEs will be conducted carefully after
understanding the local power dynamics and capacity needs of the
less powerful. Targeted capacity development will be undertaken to
strengthen negotiating and other skills needed to induce favourable
conditions for equitable benefit sharing.
Strategies to address this will be developed after undertaking more
detailed analyses of the supply chain. The project will attempt to
identify the likely positive and negative impacts of project
interventions on all relevant economic actors. The project will seek
to minimize and resolve conflicts. Some conflict may be avoided by
tapping new markets.
The project will conduct detailed feasibility studies and market
analyses, provide extensive marketing support and engage in other
demand-side interventions.
The project will work in relatively safe and stable areas within
northern Pakistan and avoid known trouble spots.
Climate variability whether due to anthropogenic long-term climate
change or natural variability is a consideration for all forms of
production that rely on the natural environment.. The extent of the
risk will vary by location and product and specific risk management
strategies will be included in CBE business plans to address this. The
project will initially focus on a only a few products while
establishing the CBEs. As capacity is developed, CBEs will be
better able to diversify products and adjust and adapt to any impacts
of climate change in the medium to long-term. The increased social,
ecological and economic resilience that will result from this project,
will help to buffer communities against the impacts of climate
change in the longer-term.
F.
DESCRIBE, IF POSSIBLE, THE EXPECTED COST-EFFECTIVENESS OF THE PROJECT:
15. The project proposes an alternative to the traditional conservation model with its emphasis on protected areas, which
is costly to administer due to the large-scale investments in infrastructure, equipment and staffing as well as high recurring
costs. By contrast, the project approach avoids most of these costs as it relies on pricing and other market incentives,
thereby distributing costs more effectively and efficiently. These incentive schemes generate benefits to local
communities and entrepreneurs, thereby creating a vested interest in conservation measures. Hence, this voluntary,
participatory approach reduces the need, and therefore the costs, of regulatory interventions. The project will be costeffective because it will use market forces, public-private partnerships and investment, and supply chain solutions that can
be self-managed and replicated by CBEs beyond the life span of the project. GEF funds will be used predominately for
higher-level interventions in the public sector, strategic engagement of the private sector and targeted capacity building
and technical assistance, analyses, training and outreach events, so as to enhance the enabling environment for
biodiversity conservation.
G. JUSTIFY THE COMPARATIVE ADVANTAGE OF GEF AGENCY:
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16. UNDP has been identified as one of the IAs with a comparative advantage in providing technical assistance in the area
of mainstreaming biodiversity including in developing markets for biodiversity products. Moreover, UNDP already has
considerable experince of working on biodiversity conservation in northern Pakistan through MACP, as well as more
broadly on rural development and NRM projects throughout Pakistan, including the GEF cofinanced Pakistan Wetlands
Project, the Baluchistan Species & Habitats project and the Junipers Project. Globally, UNDP is working with private
sector and other partners on sustainable production of both coffee and cocoa in Latin America and West Africa,
respectively, as well as on wild flower production in South Africa. UNDP also hosts a the 'Growing Sustainable Business'
Initiative which seeks to work with the private sector to develop pro-poor businesses in developing countries.
Additionally, through UNCDF and Microstart, UNDP also has a track record in microfinance initiatives in brokering
public-private sector partnerships. Finally, through its Equator Initiative, UNDP has been building up a global knowledge
base on lessons learned and best practices for successfully linking poverty reduction and community-based biodiversity
conservation, particularly through community based ecosystem enterprises.
PART III: APPROVAL/ENDORSEMENT BY GEF OPERATIONAL FOCAL POINT(S) AND GEF
AGENCY(IES)
A. RECORD OF ENDORSEMENT OF GEF OPERATIONAL FOCAL POINT (S) ON BEHALF OF THE GOVERNMENT(S):
(Please attach the country endorsement letter(s) or regional endorsement letter(s) with this template).
Mr Ishtiak Ahmad Khan, Additional
Secretary, Ministry of Environment,
Government of Pakistan
Date: 28 July 2008
B. GEF AGENCY(IES) CERTIFICATION
This request has been prepared in accordance with GEF policies and procedures and meets the GEF
criteria for project identification and preparation.
Sultana Bashir, Regional Technical Advisor,
UNDP Regional Centre in Bangkok
Yannick Glemarec
UNDP/GEF Executive Coordinator
Date: February 4, 2009
Project Contact Person
Tel. and Email: +66 2 288 2728
Sultana.bashir@undp.org
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