Hariyo Ban Program Terms of Reference Preparation of PES Implementation and Monitoring Plan in Phewa Watershed 1 Introduction The USAID-funded Hariyo Ban Program is a five-year program that started in August 2011. Hariyo Ban’s overall goal is to reduce adverse impacts of climate change and threats to biodiversity in Nepal. The Hariyo Ban program is working in two landscapes: Terai Arc Landscape (TAL) and ChitwanAnnapurna Landscape (CHAL). Climate vulnerable communities and natural resource management groups from the two landscapes, particularly poor and excluded groups including women, Dalits and highly marginalized Janajatis, will benefit from the program activities. In addition, selected ministries, departments, district offices, civil society organizations, academic institutions, and private sector organizations will contribute to and benefit from the implementation of the program. One of the main objectives of the program is to build the structures, capacity and operations necessary for effective sustainable landscape management, with a focus on reducing emissions from deforestation and forest degradation (REDD+) readiness. Establishment of Payment of Ecosystem Services (PES) is one of the major mechanisms for sustainable landscape management. Hence, the Hariyo Ban Program will support establishment of Mechanisms for Payments for Ecosystem Services in its working landscapes by reviewing and documenting existing practices of PES and advocate for establishing PES mechanisms and identifying possible beneficiaries with the ability to pay for these services. PES and REDD+ are important in reducing the drivers of deforestation and forest degradation as they offer opportunities for immediate financial benefits at local level. The Program supports the preparation and implementation of a PES Implementation and Monitoring Plan in consultation with the local authorities and other stakeholders. PES feasibility studies have been conducted to identify possibilities for payments for ecosystem services in the Phewa Watershed of Chitwan Annapurna Landscape (CHAL). Phewa is the largest lake in Pokhara valley and contributes to livelihoods in several ways. The lake has multiple uses including tourism, hydroelectricity, irrigation, fishery and a boating facility. Studies indicate that Phewa Lake’s environment is degrading particularly due to siltation and sedimentation, waste and sewage disposal, encroachment, infrastructure development and eutrophication resulting in water hyacinth invasion. Sedimentation and decrease in lake area and depth due to poor management of the upstream area are some of the major problems identified in the feasibility study report. The big and active landslides in Andheri Khola, Singare Landslides of Betini Khola and Lauruk Khola and the changing river courses and hapazard road constructions without proper soil management are major problems attributing to siltation in Phewa Lake. Disposal of waste and sewage and irrigation canal at Hallan Chowk, Gauri ghat through Phirke khola and near Phewa Dam are contributing to Nitrogen and Phosphorus accumulation. The high use of chemical fertilizers and its leaching has resulted in growth of Jalkumbhi (Hyacinth). With all these factors Phewa is degrading rapidly and shrinking in its size too. These problems are felt and realized by both the upstream and downstream population and are all eager to step in for any actions to save Phewa Lake. With series of consultations/discussions and formal and informal meetings with representatives from the Regional Hotel Association of Nepal in Pokhara and other Tourism Entrepreneurs, have realized the problems and have expressed their willingness to support improved upstream catchment management for sediment retention so that the life and health of the Phewa Lake can be increased. Similarly the upstream communities too are enthusiastic to save the lake through promotion of conservation activities. As an initiation feasibility study on the PES mechanism for sediment retention in the upstream for the conservation of Phewa Lake is already conducted by Hariyo Ban. The feasibility study report has also recommended formation of Phewa Management Authority with full roles and responsibilities to lead this PES process. Thus, this assignment will develop to develop PES implementation and monitoring plans in Phewa watershed including development of sustainable funding mechanism and formation of Phewa Management Authority to lead the process. 2 Objectives: The overall objective of the assignment is to develop a participatory PES implementation (Sediment Retention) and monitoring plans with strategies for sustainable source of funding for the implementation of the plan. Specific objectives are to: 3 Prepare PES implementation Plan with strategies for sustainable funding mechanism to ensure regular payments are made when ecosystem services are delivered Propose Phewa Management Authority with clear roles and responsibilities. Prepare a Monitoring, Reporting and Verification (MRV) plan for PES Implementation Prepare MOU between upstream and downstream stakeholders (service providers and service receivers) Supervision and Coordination The overall assessment will be supervised Program Officer, WWF/ CHAL Hariyo Ban Program. Sustainable Landscape Coordinator of Hariyo Ban Program, WWF will provide technical guidance. CHAL Field Coordinator will also coordinate the assessment and provide technical inputs and support from Pokhara. 4 Activities/Methodology a. Desk literature review: The desk literature review will involve review published and unpublished reports and studies related to PES and its implementation mechanisms practiced in Nepal and other countries too. And collect any other relevant information useful to accomplish the assignment. b. Stakeholder Consultation: Different stakeholders should be consulted before the plan preparations. This might be in the form of formal/informal discussions, workshops, interview with the key informants and focus group discussion including, but not limited to, the following: Regional Hotel Association of Nepal, Paschimanchal/ Tourism Entrepreneurs. District level government agencies including DDC Upstream communities for their willingness for conservation c. Valuation sediment retention ecosystem service using appropriate Ecosystem Service Valuation Tools d. Field visit: Visit to upstream and downstream areas is important to develop the plan. e. Develop PES Implementation and monitoring Plans: The plan should be prepared incorporating the inputs received from stakeholders' consultation and with active participation of upstream and downstream communities. The PES Implementation Plan should incorporate the strategies and responsibilities for carrying out the activities for PES, monitoring the activities, reporting the impacts of the activities in comparison to the baseline scenario and a process for verifications. The plan should also help identify m sustainable sources of funding and a pricing mechanism for sustaining PES with clear mention of roles and responsibilities of an authority. The plan should also recommend and or identify strategies for the use of funds generated from PES through an appropriate governance mechanism under the proposed authority. Participatory monitoring plan of the PES implementation should also be developed. f. Develop template for a MOU between the service receivers and service providers: MOU between in the service receivers and service providers for PES should be developed with close consultations with above mentioned stakeholders. g. Sharing of Plan: The plan and MOU should be separately shared with upstream and downstream communities and with the government line agencies too. h. Final District level sharing of the plan: the plan should be shared at district level stakeholders to get consensus to mechanize PES in Phewa watershed. 5 Deliverables Inception report with detailed with detailed outline of the study and the background information needed for PES(one week of signing the contract) Meeting Reports of focal group discussions and District Level Workshops PES Implementation and MRV Plans of Phewa Watershed along with Strategy for Conducting activities, Monitoring, Reporting and Verifying the results, identifying sustainable source of Funding, Pricing Mechanism and Recommended use of funds. Financial report on completion of the task 6 Duration and Time Frame: May 1, 2014-July 30, 2014 7 Location The Consultants should be based in Pokhara but will travel to different communities in Phewa Watershed and to Kathmandu for consultations. 8 Qualifications and experience NRM or Forest Management Expert The individual should have at least Master's Degree in Natural Resource Management/Forestry/Ecology with experience in Payments for Ecosystem Services in natural resource management. Economist: The individual should have at least Master's Degree in Economics or any other development field with specialization in socio-economics and experience in natural resource management. Understanding Eco-system Services valuation would be an added value. 9 Proposal Submission Details Technical and Financial proposals, along with application letter, need to be submitted via post or hand-delivered in a sealed envelope to the following address no later than 5:00 PM, 28 March, (Monday), 2014: Program Officer Chitwan Annapurna Landscape/Hariyo Ban Program/WWF Nepal Lekhnath Marga, New Road, Pokhara, Nepal The following additional documents are required to be submitted together with the proposal: i. ii. iii. iv. v. vi. vii. viii. ix. x. Copy of organization profile Copy of registration certificate Copy of VAT registration Latest tax clearance certificate Copy of Latest Renewal (for NGOs) Copy of PAN registration (for NGOs) Copy of Latest Audit report (for NGOs) Copy of Social Welfare Council Affiliation (for NGOs) Roster Enlistment with minimum comparison of three consultants Statement of Work with Budget Breakdown from Technical Officer