GLOBAL ENVIRONMENT FACILITY
PROPOSAL FOR PROJECT DEVELOPMENT FUNDS (PDF)
BLOCK B GRANT
Country
Chile
Eligibility:
Ratified Biodiversity Convention, September 9, 1994
GEF Focal Area:
Biological Diversity, OP #2 Freshwater Ecosystems1
Project Title:
Water Resources and Biodiversity Management
Requesting Agency:
World Bank
Country Implementing Agency:
Ministry of Public Works
Total Project Cost:
US$ 50.0 - 60.0 million
Financing Plan (tentative):
US$ 20.0 - 30.0 million, World Bank
US$ 10.0 - 12.0 million, GEF
US$ 20.0 - 30.0 million, Government of Chile (GOC)
Project Duration
Five years
Preparation Costs:
US$ 1.74 million
PDF Block B Funds Requested:
US$ 330.000
PDF Co-financing:
US$ 451,700 (GOC)
US$ 960,000 (PHRD)
Block A Awarded:
No
1. BACKGROUND
1.1. Introduction
The CAS for Chile has not been updated since 1995. However, the Government of Chile’s
(GOC) policy, which is fully consistent with Bank’s policies and best practices, aims at
rationalising the use and development of water resources in the country through the
preparation and implementation of integrated water resources management programs that
take the river basin as the basic management unit. This approach is based on full
participation of stakeholders in the decision making process and promotes the development
of strengthened water markets to improve the allocation of water resources. With budgetary
constraints increasingly becoming a permanent feature of public finance, government must
1
In the context of an integrated management of water resources in selected watersheds, certain project
intervensions could also encompass elements of OP #1 (Arid and Semi-Arid Zone Ecosystems); OP #3
(Forest Ecosystems); and OP #4 (Mountain Ecosystems).
1
seek to rationalise the use of their financial resources as well as to incorporate the private
sector in the development of new water works. An integrated river basin approach to water
resources management would enable the Government to adopt a more comprehensive
strategy for public investment in water resources development, including surface and
groundwater interactions, and address inter-sectoral water conflicts in an efficient, economic
and equitable manner. Furthermore, by including water users' associations in the new river
basin institutions or authorities, it is expected that the real participation of users in the
decision making process and investment financing would be ensured and that the
participation of other sources of private investment in the water sector would be encouraged.
A comprehensive river basin development approach would also facilitate solutions to water
quality problems and promote better natural resource management and conservation in
general.
1.2. Global Importance of Biodiversity in Chile
Chile is a biogeographical “island” within South America’s southern cone. To the east, it
is isolated by the Andes Mountains; to the north by the Atacama Desert; and to the west
by the Pacific Ocean. In addition, it comprises extensive latitudinal and altitudinal ranges
that result in immense climatic variability. In part, these characteristics have contributed
to the country’s rich biological diversity and high levels of endemism (77% of
amphibians, 58% of reptiles, 51% of higher plants and 37% of mammals are endemic).
Regarding the country’s aquatic resources, Chile contains an extensive complex of rivers
(about 230 watersheds), Andean and coastal wetlands. The “Directory of Neotropical
Wetlands” lists 34 Chilean aquatic environments (lakes, bays, lagoons, estuaries, salares,
etc.) as sites of greatest importance according to the criteria of the Convention on
Wetlands of International Importance2. In addition, a recent analysis of freshwater
biodiversity conservation priorities for the Latin American and Caribbean region
recognizes the very high degree of biological distinctiveness (measured in terms of
endemism rates and species richness) as well as high degree of threat of Chilean
freshwater ecosystems. The combination of these two characteristics (high biological
importance and high degree of threat) implies that the totality of the freshwater
ecosystems found in Chile are either priorities or high priorities for conservation action
for the LAC region. Noteworthy among these are the following freshwater ecoregions: (i)
Valdivian; (ii) Chiloe island; (iii) North Mediterranean Chile; (iv) Arid Puna; and (v)
Other indicators of Chile’s unique contribution to global biodiversity include the following: (i) Central
Chile has been classified as one of the world's 18 regions or “Hot Spots” of plant endemism In total, these
18 regions contain approximately 49,955 endemic plant species, or 20% of the world’s plant species, in just
746,400 km2, or 0.5% of the Earth’s land surface (Source: Myers, N. 1990. The biodiversity challenge:
expanded hot-spots analysis. The Environmentalist 10:243-256); (ii) in terms of biological diversity, the
country has an estimated 32,000 species (approximately 1,800 species of vertebrates, 16,000 species of
invertebrates, and 12,000 species of plants, fungi and lichens) (Source: Simoneti et al. (editors), 1995.
Biodiversidad Biológica de Chile. Comité Nacional de Diversidad Biológica, Santiago); and (iii) the
estimated 1,027 fish species (5.3% of the world’s total), 456 species of birds (5% of the world’s total), and
147 species of mammals (3.6 % of the world’s total illustrate Chile’s rich faunal diversity).
2
2
South Mediterranean Chile.3 Additionally, of the 55 terrestrial ecoregions of Latin
America and the Caribbean (LAC) which are considered of maximum priority from the
viewpoint of biodiversity conservation in LAC, 5 are found in Chile.4
1.3. Chile’s National Protected Areas System (Sistema Nacional de Áreas Silvestres
Protegidas del Estado, SNASPE)
The SNASPE was created in 19845 with the following objectives: protection of the
nation’s biological diversity, preservation of nature, and conservation of the nation’s
natural patrimony. The primary responsibility for managing the SNASPE rests with the
Ministry of Agriculture, through the National Forest Corporation (Corporación Nacional
Forestal, CONAF). This responsibility was re-confirmed by the General Framework Law
for the Environment issued in 1994. Within CONAF, a Wildlife Heritage Program
(Unidad de Gestión del Patrimonio Silvestre) was established for managing the SNASPE.
The System protects around 14 million hectares, 19 % of the national territory. It covers
92 Protected Areas (PAs), which are broken down into the following categories: 32
National Parks, 47 National Reserves, and 13 Natural Monuments. In addition, there are
proposals to establish 73 PAs on private property, to be subjected to the same obligations
and duties as those belonging to the SNASPE.
Despite these achievements, 20 ecosystems (out of a total of 85) are not represented in
the SNASPE. This disparity is particularly significant with respect to the country’s
aquatic ecosystems, more specifically those located along the coast and in the bioclimatic Mediterranean regions. In addition, the inclusion of both coastal wetlands and
Andean aquatic systems (including “salares”) in the SNASPE would be of particular
importance for the protection of migratory birds and flamencos respectively. Moreover,
the SNASPE does not equitably represent a number of the country’s terrestrial and
freshwater ecoregions considered to be of international significance in terms of their
biodiversity6.
1.4. Conservation Status and Threats to the Biological Resources
Notwithstanding the global significance of the country’s biological resources, their
unsustainable use and over-exploitation continues at an increasing rate. It has been
estimated that, due to habitat loss and fragmentation, a number of species are already
3
Source: Freshwater Biodiversity of Latin America and the Caribbean (WWF / USAID / Biodiversity
Spupport Program / Wetlands International, 1998).
4
The following terrestrial ecoregions found in Chile are considered of highest priority at regional scale for
biodiversity conservation: (i) Chilean winter-rain forests; (ii) Valdivian temperate forests; (iii) Central
Andean dry puna; (iv) Patagonian steppe; and (v) Chilean matorral. Source: Dinerstein et al.
A Conservation Assessment of Terestrial Ecoregions of LAC (the World Bank & The World Wildlife
Fund, Washington, 1995).
5
Although the SNASPE was legally created in 1984, the first two protected areas were established in 1906
and 1927, respectively.
6
Examples of poorly represented terrestrial ecoregions are the Chilean winter-rain forests, the Chilean
matorral (particularly the central part), and the Valdivian temperate forests (except for the mountain range),
particularly the latter two. Underrepresented freshwater ecoregions include the South Mediterranean Chile
and the Arid Puna.
3
extinct, endangered or declining (see table below). Data from this table show e.g. that
close to 100% of the country’s endemic freshwater fish taxa are under threat.
Conservation status of plants and vertebrates in native vegetation of Chile:
Class
Woody flora
Vertebrates:
Freshwater
Higher
plants
Amphibians
fishes
Reptiles
Birds1
Mammals1
1
Number of Taxa
124
Endemic
-
Threatened
28
d
% Threatened
23
44
40
96
462
141
44
23
58
11
42
43
25
32
54
42
98
63
33
12
30
One mammal and one bird species are extinct, respectively.
Sources: “Libro Rojo de la Flora Terrestre de Chile”. CONAF (1989); and “Libro Rojo de los
Vertebrados de Chile”. CONAF (1993).
The main threats to biological diversity are listed below:
Freshwater Ecoregions
North Mediterranean Chile
South Mediterranean Chile
Valdivian
Major Threats to biodiversity loss
Over-exploitation of groundwater affecting
wetlands habitats; water pollution from mining and
agriculture
Mining effluents and hazardous wastes, fire,
removal of fuelwood, over-grazing, aquaculture,
increasing pressure to convert natural habitats into
settled areas and agricultural lands; pollution from
domestic and industrial sources; agricultural runoff, poaching; natural lakes degradation associated
with tourism
Aquaculture, removal of fuelwood, increasing
pressure to convert native forest into agricultural
lands and exotic plantations, fire, illegal logging;
draining of wetlands in forest areas due to
encroachment of agricultural and livestock
activities
2. RATIONALE
Chile is rich in biodiversity of global importance but a significant number of species are
under threat. The country has shown its commitment to aim for the protection of critical
biodiversity through the promotion of stand alone protection initiatives (public and
private protected areas), the ongoing preparation of a national biodiversity strategy and
the strengthening of the EIA system to incorporate environmental considerations into
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new investment projects (see "eligibility and country commitment" section for more
details). There is a great opportunity to strengthen existing conservation efforts by
promoting the integration of biodiversity considerations into the general management of
natural resources upon which biodiversity conservation is directly dependent.
With the general policy objective of developing an integrated river basin approach to water
resource management, GOC requested World Bank assistance to support its efforts in
formulating a possible Water Resources Management (WRM) Project. The cost of
preparation, which started in 1999, is being partially financed through a PHRD fund,
managed by the World Bank. The WRM Project would have the following main objectives:
(i) improve water resources management through the development of an institutional
framework to implement a decentralised management system, which would take the
watershed as the basic management unit and would guarantee full participation of all
water users; (ii) strengthen water markets to improve water allocation; (iii) promote the
development of new water resources and hydraulic infrastructure, within an acceptable
framework of environmental conservation and protection, through the utilisation of both
public and private resources; (iv) develop sustainable irrigation within the framework of the
new integrated water resources management strategy; and (v) establish a comprehensive
monitoring and evaluation system.
While a project with these objectives would generate domestic benefits and incorporate
environmental concerns associated with water resources management at the local and
national level, the GOC subsequently identified an opportunity to increase the scope of
project intervention in order to capture global environmental benefits in line with its
commitment to the Convention of Biological Diversity. Therefore, a revised project concept
has been defined which would enable the country to achieve both domestic benefits from
integrated water resources management and global benefits resulting from the promotion of
an integration of biodiversity considerations into the approach to water resources
management. GEF funding would be requested to cover the incremental cost of this
integrated project.
Increasing the scope of the WRM project would allow the GOC to promote integrated
watershed management, taking into account land-aquatic interactions in selected river
basins. Specifically, the new Water Resources and Biodiversity Management Project
would promote (i) improved water resource management, (ii) protection of freshwater
biodiversity of global significance, and (iii) mainly through coordination with other
programs focused on terrestrial biodiversity, promote the conservation and sustainable
use of terrestrial biodiversity of global significance where this has direct impacts on
downstream aquatic resources. In the light of the country’s significant biodiversity
resources considered to be of global importance, and growing threats to these habitats and
to aquatic species, GEF funding is warranted. The GEF support would build on the
original components of the WRM Project, expanding biodiversity conservation activities
and consolidating watershed protection. The emphasis of GEF interventions would be on
protecting biodiversity directly related to the management of water resources.
5
In terms of geographic focus, GEF supported activities are expected to be located in the
eight watersheds selected for activities to be financed under the baseline investment
program, (i.e. Lluta-San José, I Region; Huasco, II Region; Elqui and Limari, IV Region;
Petorca-La Ligua, V Region; Mataquito, VII Region; Itata, VIII Region; and Imperial, IX
Region) thereby maximizing the integration of biodiversity considerations into the
management of water resources at the watershed level. Exceptionally, support of critical
water related biodiversity conservation activities in watersheds other than those covered
under the baseline investment program could be also included if specifically requested by
government. A list of potential priority sites has been identified and their biological
significance assessed (see Matrix I attached), which would be further refined during
project preparation.
3. PROJECT OBJECTIVES AND DESCRIPTION
3.1. Project Objectives
The goal of the proposed WRBM project would be to improve water resource
management, mainstreaming biodiversity consideration into water resource management.
The environment objective would be to conserve biodiversity of global importance.
3.2. Project Description
To achieve the aforementioned objectives, the WRBM would be implemented over a five
year period. The definition of project components is tentative at this stage, and further
refinement of the ideas described below would be carried out during preparation, giving
particular attention to definition of baseline-financed activities as well as additional
information on conservation priorities and opportunities.
Project components are expected to include: (1) institutional strengthening; (2)
development of water resource management instruments; (3) watershed development
investments; (4) biodiversity conservation investments; and (5) monitoring and
evaluation. World Bank resources would be targeted at (a) rationalizing the use and
development of water resources in the country through an integrated approach to water
resources management, (b) addressing inter-sectoral water conflicts, (c) incorporating the
private sector in the development of new water works, and (d) increasing participation of
users in the decision making process and investment financing. GEF resources would be
reserved for those activities protecting biodiversity conservation which are incremental to
the baseline sustainable development program. There would be two broad types of
intervention financed by the GEF grant: "cross-cutting" interventions, targeted at
incorporating biodiversity concerns into the framework of water resource management
nationwide; and specific biodiversity conservation interventions to protect particular
habitats.
In the component descriptions below, baseline and GEF activities are presented
separately to facilitate the identification of what is incremental in the WRBM unified
project proposal.
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Component 1: Institutional Strengthening
The WRBM project activities would cover the following areas:
(i)
(ii)
(iii)
(iv)
development of a legal and institutional framework to improve water resource
management at the watershed level and increase water users participation,
strengthening of existing water users’ associations and other relevant
stakeholders, GEF funds would finance:

development of an environmental education/training/awareness
programme which focuses on community-based watershed biodiversity
protection,

capacity building of water users’ associations and other local institutions
by providing basic environmental management tools to mainstream
biodiversity considerations into the decision making process of new water
related infrastructure projects, and
technical assistance and training in water resources and biodiversity management
to institutions at the central, regional and local levels; GEF funds would finance:
strengthening of the Water Resources Department (Dirección General de Aguas,
DGA) of the Ministry of Public Works (Ministerio de Obras Públicas, MOP) to
monitor and manage biodiversity conservation in WRM, strengthening of
CONAF’s capacity to manage the conservation of freshwater biodiversity and
terrestrial biodiversity directly related to downstream aquatic resources, and
GEF funds would also support the creation of private protected areas and aquatic
biological corridors.
Component 2: Development of Water Resource Management Instruments
Baseline project activities to improve water resource management instruments are
expected to include:
(i)
(ii)
(iii)
development of a national water resource management strategy;
studies on financing options for WRBM, including tariffs and pollution charges;
fostering of water users’ participation in the definition of priorities at the
watershed level;
(iv)
preparation of watershed development plans, with GEF funds used for promoting
mainstreaming of biodiversity considerations into the development of river basin
plans starting with the baseline WRM watersheds;
(v)
promotion of private sector participation in the development of water resources;
(vi)
strengthening of the existing market for water rights;
(vii) establishment of an environmental control and monitoring mechanism and
additional measures to solve water quality problems at the watershed level,
including a system of economic incentives and penalties;
(viii) preparation or updating of water resource inventories at the watershed level; with
GEF funds financing the compilation of biodiversity inventories in the selected
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(ix)
(x)
watersheds (of global significance) to be incorporated into the National
Biodiversity Information System of the National Environment Commission
(Comisión Nacional del Medioambiente, CONAMA);
preparation of hydrological simulation models and river basin plans for water
resource development in each watershed in the programme, with GEF funds used
for the development of guidelines a) to incorporate ecological instream flows in
the decision making process for water allocation to guarantee the survival of
endemic and threatened freshwater species, b) to establish maximum allowable
variations in the level of natural lakes affected, or potentially affected, by
upstream developments to protect aquatic biodiversity in critical habitats, and c)
to protect critical aquatic habitats (particularly wetlands – humedales y bofedales)
affected by groundwater extraction;
complementary GEF financed activities under this component would assist with
the development of mechanisms to incorporate biodiversity consideration in the
management of inland fisheries and aquaculture.
Component 3: Watershed Development Investments
With the aim to develop sustainable water resource infrastructure, the WRM project
would support the following activities:
(i)
(ii)
(iii)
(iv)
(v)
(vi)
feasibility studies for particular investments to be undertaken in the context of the
program;
design of a national safety strategy for water resource infrastructure;
baseline studies for the development of integrated watershed management;
preparation of a manual to evaluate the hydraulic impact of water infrastructure
on rivers and basins;
construction of water infrastructure, such as dams, irrigation systems, erosion and
flood control projects, protection of river banks and river training. All
infrastructure investments would be subject to World Bank EIA policies, and
would incorporate mitigation plans, as appropriate; and
development of a system to provide technical assistance to irrigation farmers.
There would be no activities supported by GEF under this component.
Component 4: Biodiversity Conservation Investments
This component would support strategic actions at the local level to promote, on the one
hand, conservation of critical aquatic biodiversity and, on the other, terrestrial
biodiversity directly linked to water resource management in the selected watersheds, but
only in those cases when terrestrial biodiversity is not included already in some of the ongoing GEF projects currently under preparation (see Section 5). As outlined in the
rationale section above, potential priority sites have been identified (see matrix attached)
but will be further refined during project preparation. In principle, activities under this
component could be broadly split into two categories: (i) public sector actions to enhance
8
effective protection of critical sites; and (ii) community investments related to
conservation and sustainable use of aquatic biodiversity.
(i) Public Sector Actions would include:
preparing, updating and implementing management plans of protected areas and other
priority aquatic conservation sites or terrestrial sites which have a direct impact on
downstream aquatic resources;
strengthening enforcement of forest protection regulations in sites which protect critical
aquatic biodiversity downstream; and
strengthening the “National Fire Prevention And Control Program” in sites which protect
critical aquatic biodiversity downstream.
(ii) Community investment projects: the project would finance (through a mechanism to
be identified during preparation) technical assistance and works for beneficiaries'
proposed activities related to aquatic biodiversity conservation. GEF would only finance
incremental costs associated with global benefits of biodiversity conservation
investments. Counterpart funding for baseline costs would be provided by GOC and
beneficiaries.
Component 5: Environmental Monitoring and Evaluation
Under baseline funding, this component would develop and implement a monitoring
system for water resources and an evaluation system for economic, social and
environmental impacts of the new water resources management approach. GEF funds
would complement these activities by extending the monitoring systems to measure
changes in existing biodiversity, aquatic ecosystems, and vegetation cover in the program
area and evaluating the impact of the integrated approach to water resources management
and its specific activities on biodiversity resources. Activities to capture lessons learned
and to disseminate these findings, in order to support future replication of the water
resources and biodiversity management approach, would also be implemented.
4. ELIGIBILITY AND COUNTRY COMMITMENT
Chile ratified the Convention on Intenational Trade in Endangered Species of Wild Fauna
and Flora (CITES) in 1975, the World Heritage Convention in 1980, the Convention on
the Conservation of Migratory Species of Wild Animals in 1981, the Ramsar Convention
in 1981, the Desertification Convention in 1994, and the Convention on Biological
Diversity in 1994. The proposed project is consistent with the GEF Operational Strategy
in that it supports the long-term protection and sustainable use of biodiversity. The
project supports GEF's Operational Program #2 (Coastal, Marine and Freshwater
Ecosystems). In the context of an integrated approach to water resources management
some project interventions would comply also with OP #1 (Arid and Semi-Arid
Ecosystems), OP #3 (Forest Ecosystems), and OP #4 (Mountain Ecosystems). It would
promote in-situ conservation and sustainable use of globally important biodiversity, and
9
support participatory management mechanisms at the local level for integrated
management of water resources, including biodiversity.
The project is closely linked to GOC’s water resources and environmental policy agenda.
The 1980 Constitution explicitly declared that it is the duty of the State to promote nature
preservation. It contains three dispositions that are directly related to the environment.
This implies that, the environment must be approached as a State duty and consequently,
specific legal restrictions shall be established for the exercise of determined rights and
liberties, such as the conservation and protection of the natural heritage. In 1994,
Parliament approved the General Environmental Framework Law (Law 19,300), which
created CONAMA as a decentralized Public Service agency, whose objective is to
promote environmentally sustainable development and coordinate policy-driven actions
and strategies defined by the government on environmental matters. The aforementioned
Law 19,300 explicitly mandated the State: (i) to administer the SNASPE, (ii) to
encourage and promote the creation of protected wildlife areas in private property (to be
subjected to the same obligations and duties as those belonging to the SNASPE), and (iii)
set forth procedures for the classification of species in accordance to conservation
categories, i.e. extinct, endangered, etc. (draft regulations for such procedures have
already been prepared). Country commitment to biodiversity conservation was further
demonstrated through the issuing of the 1996 Law for the Regulation of Hunting (Ley de
Caza), whose principal objective is to limit hunting to sustainable levels thereby
permitting the conservation of species.
The 1998 National Environmental Policy for Sustainable Development is the GOC’s
major policy instrument for dealing with biodiversity conservation and land degradation
control. Among the principles of this policy are the participation of civil society in
environmental management and the country’s responsibility before the international
community, reaffirming its commitment to maintain the ecological services in conformity
with the international treaties and conventions to which it is a party. One of the specific
objectives of this policy is to finalize (by June 2000) the preparation of the National
Biodiversity Strategy and its related Action Plan which includes a plan for the
conservation of wetlands7. Finally, it should be pointed out that, regarding
implementation of the Convention on Wetlands (Ramsar), a series of institutions are in
charge of its implementation, but in particular the Ministry of Foreign Relations,
CONAMA, and CONAF, the latter being the focal point for the Convention in Chile8.
The country has in its territory 7 Ramsar sites.
Also, the following concrete on-going actions demonstrate the country’s commitment to
biodiversity conservation: (i) promoting the creation of protected wildlife areas in private
property in order to increase the representation in the SNASPE of ecosystems of national
7
Also relevant within the framework of the Biodiversity Convention have been the Registry and Evaluation
Project of Native Vegetation (carried out recently by CONAMA/CONAF), whose principal objective was
to obtain basic information necessary for the generation of conservation policies for Chilean native forests.
8
The administration of the Ramsar Convention is assisted by the National Wetlands Committee, composed
by a number of Goverment and non-Government organizations: CONAMA, CONAF, DGA,
SERNAPESCA, CONAF, SAG, SERNATUR, CODEF, Universidades, ONGs, etc..
10
and global importance; and (ii) the significant strengthening of the EIA system, whose
objective is the incorporation of environmental considerations into new investment
projects and activities in the country. In addition, the aforementioned environmental
policy declares that, among the priority actions to be taken by the State to conserve
biodiversity is the strengthening of the current system of enforcement and compliance of
conservation laws and regulations. These inter-related initiatives provide the framework
for the development of future biodiversity programs in the country. To this end, the Chile
GEF focal point has endorsed this project as an activity of a national priority.
5. COORDINATION WITH OTHER IMPLENTING AGENCIES
In relation to the activities mentioned in the previous section, the GOC is currently
preparing, in addition to the proposed Water Resources and Biodiversity Management
Project, three large scale projects for presentation to GEF, with UNDP as the requesting
agency. Two of these projects9 are aimed at the conservation of biodiversity in some of
the priority land ecoregions (i.e. Valdivian temperate forest, puna, Chilean winter rain
forest and Chilean matorral) while the third project10 would promote the conservation of
biodiversity of coastal marine areas. The Government gave priority to the Valdivian
Temperate Forest because of the need to address both the pressure that expanding logging
activities were having on terrestrial biodiversity and the increasing destruction of forest
by fires. The National System of Public Protected Areas (SNASPE), on the other hand,
was developed in order to ensure the conservation of those areas of global importance,
other than the Validivian Temperate Forest, which were under pressure from the
expansion of mining and forstry activities as well as urban development. The
development of a Marine Protected Areas System was promoted as complement to the
SNASPE, thus allowing the creation of a complete and integrated system of protected
areas that would include both continental land and marine biodiversity.
The “Valdivia Temperate Forest” proposal would focus on the ecoregion of the Valdivia
temperate forst of Chile, which means that the activities related to the conservation of the
non-aquatic ecosystem of the region would be covered exclusively by this project.
Outside this region, the SNASPE proposal would be implemented on a nation-wide scale
and would encompass three ecosystems of gobal importance (puna, Chilean winter rain
forest and Chilean matorral), although it does not cover entire ecoregions.
Within this context, the proposed Water Resources and Biodiversity Management would
have a leading role in the conservation of continental aquatic biodiversity. The four
projects currently under preparation would have a clearly defined area of influence from
the viewpoint of both geographical areas and type of biodiversity, thus guaranteeing that
there is no overlapping between these initiatives. However, given that the project for
"Strengthening of the National System of Public Protected Areas" would not cover entire
ecoregions and would use a limited number of instruments (e.g. parks, corridors), there
would be areas where the WRBM Project could complement its activities by promoting
9
These projects are: "Conservation of Biodiversity of Global Importance in the Valdivian Temperate
Forest Ecoregion" and "The Strengthening of the National System/Public Protected Areas".
10
"Marine Protected Areas System".
11
also the conservation of terrestrial biodiversity directly related to downstream aquatic
resources. The participation of CONAMA in the preparation of all these projects would
further ensure that no overlapping occurs.
6. DESCRIPTION OF PDF ACTIVITIES
Project Preparation resources have been secured for baseline project activities. However,
funds are not sufficient to address all the global issues now raised in the expanded
WRBM project scenario. A PDF Block B grant will thus be requested to support
complementary preparation work that cannot be covered by the PHRD grant. Block B
grant resources would be used primarily to refine the aforementioned concept,
components, and implementation strategy of the proposed project, support public
consultation and fund several specific studies.
Activities to be financed by the PDF grant fall under the broad categories of:
"cross-cutting" interventions,
specific biodiversity conservation interventions, and
other activities.
Specific activities to be supported within these broad categories are outlined below.
"Cross-cutting" Interventions (National Components)
In addition to the preparation of specific biodiversity protection and conservation
interventions, the PDF grant would also be requested for preparation of "cross-cutting"
activities to be financed by GEF.
Activity 1: Institutional / Stakeholder Analysis
As part of an institutional analysis, the following studies should be undertaken:
Institutional/Legal and Management assessment of DGA, CONAF, and CONAMA
activities related to biodiversity conservation;
Participation/Relationship Analysis (analysis of partners’ relationships with each other
and with the project / purpose / objective). Potential project partners would include
government agencies, NGOs and community organizations.
Activity 2: Project Preparation Workshop ("cross-cutting" components)
Conduct a workshop with national stakeholders and local representatives of specific
interventions to elaborate the "cross-cutting" interventions components.
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Specific Biodiversity Conservation Interventions (Biodiversity Conservation
Investments Component)
Specific interventions to receive GEF support would be located in the 8 watersheds
selected for activities to be financed under the baseline. However, support of critical
water related biodiversity conservation activities in watersheds other than those covered
under the loan could also be considered if requested by Government during preparation.
Within those 8 watersheds, the proposed PDF Block B grant would support the following
activities:
Activity 3: Definition of specific interventions to be supported by GEF funding
The sites to receive GEF support would be defined through the following sequence of
activities:
(i)
(ii)
(iii)
(iv)
Biodiversity diagnostic:
-Characterize biodiversity significance, their underlying threats and
opportunities in the selected watersheds that will include baseline project
activities (including endemism, threatened species, global significant
aspects, etc.), and
-Based on existing information identify unique aquatic ecosystems and
habitats of international importance.
Develop criteria for selecting potential sites/hotspots for GEF interventions in the
baseline supported watersheds.
Select potential GEF specific aquatic biodiversity protection intervention.
Conduct a workshop to present and validate the preliminary selection of GEF
interventions (participants would be MOP, CONAMA, CONAF, relevant
representatives from the scientific community and key NGOs).
Activity 4: Social-economic, institutional and environment appraisal of the selected sites
Undertake baseline studies and surveys in the field (rapid appraisal) to compile social,
economic, institutional, legal and a specific environmental/biodiversity situation analysis
of the selected sites that will lead to an identification of the problem field.
Verify findings of the study with the involved communities, through focus groups and
other participatory methodologies.
Activity 5: Beneficiaries Workshop (Biodiversity Conservation Investments Component)
Conduct a regional workshop with the identified beneficiaries of all project intervention
sites and stakeholders of horizontal interventions to elaborate a specific component on
biodiversity conservation investments and to identify inputs to the development of the
Project Planning Matrix (LOG Frame).
13
Other Activities
Activity 6: other activities to be carried out during the preparation phase include:
Studies
(i)
a) Design of environmental education/training/awareness programme focussing
on community-based watershed biodiversity protection;
b) Design capacity building program for water user's associations and other local
institutions by providing basic environmental management tools to mainstream
biodiversity considerations into the decision making process of new water related
infrastructure projects;
c) Develop a conceptual framework for information management to identify how
a data base on project generated biodiversity information should be structured,
organized and linked to regional and national databases;
d) Develop a strategy to mainstream biodiversity considerations into the
development of river basin plans and the management of inland fisheries and
aquaculture;
e) Identification and preparation of a sample of biodiversity conservation
community investment projects;
(ii)
Elaborate an incremental cost analysis
(iii) Develop the Project Planning Matrix (LOG Frame)
(iv)
Identify and develop most effective implementation arrangements
(v)
Elaborate M&E Plan
(vi)
Elaborate Plan of Operations
(vii) Final preparation of the Project Appraisal Document
(viii) Prepare Operation Manual.
The PDF activities and project preparation will be coordinated and administered by MOP
and the existing WRBM Project Preparation Unit.
7. PREPARATION BUDGET AND ACTIVITIES TO BE FINANCED
The following table summarizes the funding sources for the preparation activities:
14
Table 1. Project Preparation Costs (in US$)
COMPONENT
PREPARATION ACTIVITY
PDF
PHRD
GOC
TOTAL
......................................................US$....................................................
Institutional Strengthening
Institutional and Management analysis of national
stakeholders and Participation Analysis
48000
8173
27404
83577
Central and local institutions
4000
13462
9615
27077
Water users organizations
25000
67308
28846
121154
Institutional strengthening component :
Water Resources Management
Hydrological Information System :
Instruments
Biodiversity Information System
1923
8823
Hydrological Resources Information System
6900
10000
10000
Simulation models
7500
7500
1923
14423
1923
10577
3846
31846
Guidelines ecological flows and protection of aquatic habitats
12500
Environmental Assessment Improvement
Investment Component
8654
Biodiversity Activities:
Selection of sites
38000
Identification of Site Investment Proposals
15000
15000
Participatory Socio-economic, environmental/
biodiversity assessment of selected sites
28000
Mainstr. Biodiversity in Watershed Plans
15000
Workshop Biodiversity Investment Proposals
40000
Feasibility Studies WRM Investment Proposals
77802
43354
159156
15000
40000
551923
265385
817308
Community Biodiversity Conservation Investments
24000
Technology Transfer and T. A. to beneficiaries
6000
30769
3846
40615
Monitoring and Evaluation
Preparation of M&E System
18000
61538
17981
97519
Project Preparation Unit
Coordination,final report writing, and Workshops
32750
116538
23352
172640
Logistical Support and Travel
16850
23692
4808
45,300
TOTAL
330000
959860
451706
1741565
15
24000
MATRIX I
Chile
Water Resources Management Project
Potential sites for GEF activities
No.
Freshwater
Ecoregions11
Region
1
Arid Puna,
Atacama
Desert and
Deserts of
Pacific Coast
(Atacama and
Sechuna)
I
2
Arid Puna and
Atacama
Desert
I
Name of River
Basin
(Level of Threat 1
to 3)12
Basin of San José
River (1-2)  Lluta
River and Lauca
River
Tamarugal basin
without sea outlet
(1-2)
11
Name of Site13
Biological Wealth
Lauca National
Park (Chungará
Lake and Las
Vicuñas National
Reserve
Endemic fish, abundant
wildlife, especially
aquatic birds (for
example, Fulica
gigante), plants unique
to altiplano sub-region;
Huasco and
Coposa salt
marshes
Vegetation and wildlife
of pre-cordillera
scarcely represented in
the National System of
State Protected Plant
and Wildlife Areas
(SNASPE)
Highland salt marshes
with sites for nesting
and native fish, scarcely
represented in the
SNASPE
Classification of Ecoregions in accordance with the publication: Dinerstein, et al., Freshwater
Biodiversity of Latin America and the Caribbean (WWF / USAID / Biodiversity Support Program /
Wetlands International, 1998)
12
Level 1 represents the river basin with greatest importance in biological terms (diversity and endemic
species) and levels 2 and 3 in decreasing order under the same criteria..
13
Location of priority sites according to the publication, “Libro rojo de los sitios prioritarios para la
conservación de la diversidad biológica en Chile” (Red book on priority sites for conservation of
biological diversity in Chile), CONAF ed. 1996.

River basins on which feasibility studies have already been carried out by IDB.
16
3
Arid Puna and
Chile’s
Northern
Mediterranean
Region
III
Copiapo River
basin (3)
Negro Francisco
Lagoon and
Santa Rosa
Lagoon
Las Juntas of the
Copiapo River
Highly endemic reptiles
and insects of the desert
steppe. Wetlands
observed (Maricunga
salt marsh and
Pedernales salt marsh).
Endemic plants (23%).
Important nesting area
(flamingoes). Horned
Coot (Fulica cornuta),
and Phoenicoparrus
andinus). Not
represented in the
SNASPE.
4
Chile’s
Northern
Mediterranean
Region
III
Basin of Huasco
River
(3)
Quebrada de
Pinte
Last population of
Acacia caven
5
Chile’s
Northern
Mediterranean
Region
IV
Basin of Elqui
River
Punta Teatinos,
sub-basin of the
Cochiguaz River
Highly endemic zone
(48% of plants and 20%
of wildlife): species
threatened by strong
trend of urbanization
and tourism complexes.
6
Chile’s
Northern
Mediterranean
Region
Chile’s
Northern
Mediterranean
Region
Chile’s
Southern
Mediterranean
Region
IV
Limarí River
Las Chinchillas
National Reserve
(Auco River)
Mountain slopes
Peñuelas Lake
Nesting sites of aquatic
birds
Estero El Yali
and El Rey,
Matanzas and
Colejuda
Lagoons
Conservation of the
“Estero El Yali”
wetland for protection
of endangered birds and
vulnerable wildlife
(amphibians, reptiles
and birds).
7
8
9
10
Chile’s
Southern
Mediterranean
Region
Chile’s
Southern
V
VI
Maipo macrobasin. Yali coastal
basin
VII
Basin of Mataquito
River
Los Quenes
VII
Basin of Maule
River (1) 
Maule Lagoon,
Radal Siete
17
Nesting site of various
bird species of the
central zone.
Boundary of plants
representative of winter
rainforest (endemic
species).
Endemic species of fish
and amphibians. 54%
Mediterranean
Region
Tazas, Altos de
Vilches, Robles
del Maule,
expansion of Los
Ruiles National
Reserve,
Hornillos, Ancoa
River Sector,
Bulilleo and
Suárez Lagoon
VII
12
Chile’s
Southern
Mediterranean
Region
Chile’s
Southern
Mediterrean
Region and
Valdivia
13
Valdivia
IX
Basin of Imperial
River (2) 
12
Valdivia
X
Basin of Callecalle Cruces River,
River – Basin of
sector between
Callecalle River (1) Choshuenco
Volcano and
Pirehueico Lake
11
VIII
Coastal Basin of
Reloca River and
Tregualemu River
(1)
Basin of Itata River
18
Tregualemu,
Ramadillas and
Río Reloca
Sub-basins of the
Ñuble (Ñuble
National
Reserve) and
Chillan River
basins and the
western slope of
the coastal
cordillera
Wetlands
complex (14.000
ha) and
Budi Lake (5.200
ha)
of endemic plant
species.
Hornillos: 48% of
endemic plants.
Endangered species in
winter rainforests;
Viches: archeological
sites and diversity of
birds. Plant formations
within the area that are
not represented in the
SNASPE;
Robles del Maule:
northern boundary of
distribution of many
species.
Endemic plant species.
Highly endemic insects
and other invertebrates.
Representative species
of winter rainforest
(endemic).
Endemic aquatic
species in Budi Lake
(cited in priority
wetlands at
international level):
species that withstand
high concentrations of
salinity; fish endemic to
the zone
(microppogonias
furnieri); refuge habitat
of wild birds of
continental waters; sole
reproductive residence
of black-necked swan in
IX Region. Principal
zone of araucarias
Mainly aquatic wealth,
diversity of wealth and
aquatic mammals.
Araucarias and one of
the largest raulí forests.
19