PROJECT IDENTIFICATION FORM (PIF) * Full-sized Project UNDER THE Least Developed Countries Fund GEFSEC PROJECT ID: 3406 IA/EXA PROJECT ID: 3950 COUNTRY: Eritrea COUNTRY ELIGIBILITY: UNFCCC Ratified on 24 April 1995; NAPA submitted to UNFCCC. PROJECT TITLE: Integrating climate change risks into community based livestock management in the northwestern lowlands of Eritrea GEF IA/ExA: UNDP OTHER PROJECT EXECUTING AGENCY(IES): Ministry of Agriculture PROJECT DURATION: 4 years GEF FOCAL AREA: Climate Change - Adaptation GEF-4 STRATEGIC OBJECTIVES: Not Applicable GEF OPERATIONAL PROGRAM: LDCF EXPECTED DATE OF WP INCLUSION: June 2008 EXPECTED DATE FOR CEO ENDORSEMENT: August 2008 EXPECTED STARTING DATE: FSP - November 2008 EXPECTED STARTING DATE (PPG): July 2007 PROJECT CONTACT: Pradeep Kurukulasuriya, UNDP-GEF, Tel: +1-212-906 6843; Email: pradeep.kurukulasuriya@undp.org (through Bo Lim, UNDP-GEF) DATE OF SUBMISSION: May 2007 FINANCING PLAN ($) PPG Project GEF Total 100,000 3,000,000 Co-financing GEF IA/ExA 7,500 Government 2,500,000 Others 900,000 Co-financing 7,500 3,400,000 Total Total 107,500 6,400,000 PART I - PROJECT IDENTIFICATION A - PROJECT SUMMARY 1. Eritrea’s NAPA highlights that the livestock production system and related livelihood opportunities of pastoralists are highly vulnerable to long-term climate change, including variability. The productive and reproductive efficiencies of the pastoral system have been declining progressively due to a number of baseline issues (see section C). However, these pressures will be compounded by additional stress due rapidly changing climatic factors. With crop cultivation and animal husbandry accounting for 60 percent of rural incomes, while in specific regions such as the lowlands incomes from livestock become even more important, anticipated climate change will have serious repercussions on rural poverty and well-being. This proposal, for a NAPA follow-up project in Eritrea, focuses on integrating climate change risks into livestock management by pastoralists in vulnerable rangelands in the northwestern lowland region of Eritrea. 2. Evidence of observational and projected climate change, including variability, especially in the frequency of drought in Eritrea is well documented in the country’s NAPA (2007) and Initial National Communication (INC, 2001). The occurrences of dry spells and seasonal and multi-year droughts are more frequent and increasingly severe in terms of impacts (animals lost, etc). The INC highlights that in the event of a more than likely doubling of global CO2 levels, mean temperature in Eritrea will rise by 4.1 o C by approximately 2050. Rainfall projections vary, with reductions in lowland regions and increments in highlight regions. Resultant impacts will be felt on water resources and agriculture inter-alia. Vulnerability assessments in the Mereb-Gash basin suggest a decrease in runoff by 29.5% (relative to baseline conditions). The resultant impacts on the livestock production system from these changes will worsen and compound pressures brought about by high evapotranspiration rates such as diminishing soil moisture. These changes will hasten the decrease in rangeland productivity. This process has already resulted in high levels of household food insecurity, malnutrition, dependence on food aid and the exodus of rural populations into urban centers in search of alternative sources of income. 3. Over the years, pastoralists have evolved a production system that adapts to the fluctuations in feed and water supply availability. The major river basins and the areas with relatively higher rainfall and soil fertility of the rangelands serve as the dry season camp, while the open grazing land of the drier areas form the wet season camp. The routes that pastoralists, including their livestock, use to travel between seasons are well defined and based on Project Identification Form.doc Rev February 15, 2007 1 known water points, feed and tree shade. The movement involves mainly the larger animal species, but in areas where heat stress is acute all livestock species are forced to move seasonally. Over time, this traditional coping practice has been disturbed by a number of factors (see section C), and the most recent of these is increasing climate variability including the occurrence of extreme weather events such as drought. Northwestern rangelands (wet season camp) are especially most sensitive. Recurrent droughts and high temporal and spatial variability of rainfall produces negative impacts on the water resources availability by depleting underground water through evaporation. Inadequate recharge of underground aquifers of rangelands results in lower drinking water availability for livestock and reduces livestock productivity as a result of lower biomass productivity. In effect, the rangelands are already under severe pressure from drought. Recent records showed that frequent droughts and inter-annual precipitation variability between 1992 and 2004 have contributed towards the annual deaths of thousands of livestock species such as cattle and camels. Thermal stress is increasingly exceeding thresholds that animals can tolerate, leading to shortening of grazing hours that most of grazing takes place during night time or early morning, decreased feed intake and interference with animal productive and reproductive functions. Without adaptation interventions, the linkage between pastoralists and land will be adversely affected and lead to adverse economic impacts, changes in social structure, cultural identity, and even political instability. 4. This project will support adaptation to changing climatic conditions of pastoral communities in the rangelands of Eritrea in the areas of livestock and water management. The project will enhance technical capacity in climate change risk management of key stakeholders at the community and national/sub-national levels, implement priority demonstration climate change risk management activities (based on activities identified through the NAPA process), and provide support for the diversification towards less climate change sensitive livelihood opportunities for rangeland communities. 5. The proposed project is aligned with UNDP’s comparative advantage in improving capacity building, providing technical and policy support as well as expertise in project design and implementation in relevant areas such as sustainable land management and water governance at global level and in East Africa in particular. UNDP is also able to draw on its experience of designing GEF funded adaptation to climate change projects, as well as from conducting the NAPA process in the sub-region. It will draw on technical assistance from the Drylands Development Centre, which specializes in assisting countries in development projects in the drier parts of the world, as well as the Water Governance Facility (a joint UNDP-SIDA initiative which seeks to advance socially equitable, environmentally sustainable and economically efficient management of water resources). Through its network of technical staff, country office presence in additional to operational expertise in designing similar Council approved SCCF and LDCF projects in arid regions of Africa (Kenya, Mozambique, Zimbabwe, Ethiopia, Tanzania, Niger, and Namibia), UNDP is well positioned to assist Eritrea to design and implement this LDCF proposed project. B – PROJECT OBJECTIVE 6. The goal of this project is to “enhance resilience of pastoral communities in Eritrea to climate change including variability-induced adverse impacts.” As a contribution to the achievement of this goal, the project objective is to “enhance adaptive capacity of livestock production systems in the Kerkebet area”. This arid region, which represents the drylands of the northwestern lowland, is among the most vulnerable to climate change. The NAPA process identified this area as the geographic focus for interventions through this pilot project. In order to achieve the project objective, the following three outcomes will be achieved. Outcome 1: Livestock management systems that are effectively integrate climate change risk management techniques piloted 7. This outcome will focus on implementing activities that will reduce vulnerability of livestock management to climate hazards. This includes climate-resilient water management practices and forage management systems reduce climate perturbations on livestock. Without GEF Intervention 8. Currently, the pastoral communities in the northwestern lowland are supported with livestock and human health delivery system, irrigated horticulture and crop agricultural activities, crop and livestock extension services, water supply and nutrition programmes under five age and pregnant and lactating mothers. 9. Besides Government supported irrigated agriculture, rural water supply, a livestock and human health delivery system and crop and livestock extension services (which amounts to $ 2,500,000 for activities in the northwestern lowland), there are three other ongoing projects that are of relevance to the proposed NAPA follow up adaptation project. The “Integrated Rural Development Project (IRDP)”, “Lutheran World Federation Nutrition Project” and Project Identification Form.doc Rev February 15, 2007 2 “Gash Barka Livestock and Agriculture Development Project” are community development initiatives that cover the northwestern lowland. The objectives of these ongoing projects and the Government activities are to contribute to the livelihood of the populations engaged in traditional livestock production and increase the contribution of the agricultural sector to the national economy by improving productivity of crop, livestock and community. The main strategies taken to achieve these objectives are (a) strengthening the animal health delivery system through the provision of drugs, vaccines, and veterinary supplies; (b) rehabilitating the regional laboratory for diagnostic and vaccine production at the NVC through the provision of buildings, equipment, technology and initial supplies; (c) provide other agricultural including livestock extension services; (d) increase crop and horticulture through irrigation; and (e) provide basic social services to the community. With GEF Intervention 10. The above baseline activities do not account for risks associated with climate change, including variability, on rangeland and livestock management systems. With GEF intervention, the baseline will introduce improved water and forage management systems that incorporate climate risks into their design, as well as enhanced community capacity to address climate risks such that the productive and reproductive efficiencies of livestock are maintained and/or enhanced. The explicit incorporation of climate risks in pastoral systems, in addition to baseline development activities, will contribute towards the reductions in the proportion of population classified as food insecure relative to projected baseline estimates without adaptation interventions. It is anticipated that 3 villages (with roughly 200 households/village and 10,000 ha of rangeland) will be covered by the interventions through this project. 11. LDCF funds will contribute to meeting the additional cost of achieving outputs which specifically address climate change, including variability, driven risks including: (a) Demonstration activities that integrate climate risks into water (including irrigation) and livestock management in pilot areas implemented. Specific activities will be based on a strategic plan that will be formulated during the preparatory phase. Priorities identified as part of the NAPA priority profile such as improved irrigation practices will be evaluated for their feasibility for implementation; (b) Pastoral communities and relevant stakeholders trained on identifying and supporting implementation of climate resilient rangeland management priority practices; (c) Communication linkages between short- to medium-term climate forecast centers and pastoral communities strengthened for timely management decisions to be made (linked to capacity development outcome –see below); (d) Implementing measures that will facilitate the pursuit of alternative livelihood options (based on an assessment and analysis of developing climate resilient alternative livelihoods in the pilot areas to be undertaken during the preparatory phase). Outcome 2: Technical capacities of communities and relevant institutions on integrating climate change risks into livestock and water management enhanced. Without GEF Intervention 12. The Government places priority on livestock management in the context of the national economic prosperity. To this end, the Government strategy has focused on ensuring that “research and extension services will work closer with each other and more directly with the farmers: to better understand their problems; to respond more directly to them with applied programmes of training; to provide access to information and technologies; and to develop solutions to farming issues where none other exist. The means by which forage and fodder can be produced from different types of production systems, and the manner in which animals can better be managed to make best use of available nutrition, has received specific attention. The Farmers Agricultural Services (FAS) provides the vehicle for this integrated support and its development and initiation across the country is a priority for Government.” The FAS is currently funded at approximately US$ 50,000/year. With GEF Intervention 13. With LDCF funds, UNDP will draw upon its experience in human resources development, institutional strengthening, and non-governmental and community participation to support training programmes at various levels including at the community and relevant national and sub-national institutions (such as agricultural extension). The focus will be develop better understanding and capacities to manage livestock and water in rangelands in the context of pressures due to climate change, including variability. This will include not only awareness raising initiatives but targeted capacity building initiatives that will develop skills of key stakeholders to systematically integrate climate change risks into pastoral land and water management in the context of agricultural and food security-related strategies, polices, measures (be at the national/sub-national or community level). In addition, in support of the Project Identification Form.doc Rev February 15, 2007 3 promotion of alternative livelihood options under outcome 1, LDCF funds will be channeled to develop skills in alternative livelihood options (including training and establishing technical and institutional support services) that will enable pastoralists to pursue less climate sensitive livelihood options. 14. Specific outputs include personnel trained in forage conservation techniques and in managing and distributing water based on available climate information, improved knowledge on reseeding of the rangeland with climate resilient varieties, extension support services and other relevant stakeholders trained in climate change risk management, awareness of climate change risks and needs pertaining to livestock and water management in rangelands improved for policy makers, and development of a rangeland management plan incorporating climate change risks over the next 30 years. Outcome (3): Lessons learned and acknowledgement management component established. 15. The LDCF provides an opportunity to pilot and operationalize interventions that, among other aims, improves adaptive capacity to climate change. The achievement of the above outcomes will contribute towards lessons on improving resilience to climate change. These lessons will form a crucial input to informing Eritrea’s plans and strategies to adapt to climate change, over the coming years. 16. The objective of the project and outcomes are well aligned with the UNDP-GEF M&E framework for adaptation to climate change projects in the agriculture and food security thematic area. C – PRIORITY THREATS/ROOT CAUSES AND BARRIERS TO BE ADDRESSED 17. As with any multi-faceted problem, reducing the vulnerability of the livestock sector to climate change, including variability, necessarily involves also addressing the linkages between agriculture and water resources as well as barriers to livestock management in Eritrea which have little to do with climate change. Traditional coping practices have been affected by land and ground water use change, desertification, poverty, and border conflicts. Land and ground water use change is occurring in most of the rangelands and in particular in those areas with higher rainfall (such as the southwestern lowland and the riverine areas). The conversion of some rangelands into rain-fed cropping (even in areas with low rainfall to grow crops) while others are converted into irrigation is placing pressure on livestock as grazing regions are increasingly confined to marginal areas. The movement of livestock is increasingly restricted due to land fragmentation. In the more arid rangelands, the process of desertification is also increasing pressure on rangelands. Desertification has caused conversion of perennial grasslands to savanna dominated by annual grasses. The above issues are being tackled to varying degrees of success through government and donor projects and programmes and this project will be linked to ongoing efforts. 18. At the same time, this project will specifically address barriers such as limited technical capacity and understanding of the sector-specific implications of climate change amongst relevant stakeholders. It will provide an opportunity for stakeholders to practice specific coping measures which in turn will set the foundation for adaptation. It will provide the tools through which communities and policy makers can take it upon themselves to better inform and implement climate change risk management options for livestock and water management. In this regard, the NAPA project profile that underpins the outcomes of this proposal will be assessed, evaluated and a plan for implementation will be formulated (using an adaptive capacity approach as recommended by UNDP-GEF’s Adaptation Policy Frameworks document) during the preparatory phase. Additional measures necessary to ensure the sustainability of the proposed interventions, including those that focus on management and technical capacity, will be identified and incorporated into the project design. The project design will be informed by an indepth rootcause analysis of the climate change risks which will be guided by the principles of UNDP-GEF’s Adaptation Policy Framework. This approach will ensure that the implementation of the NAPA priority profile is not undertaken in isolation but contributes to ongoing activities by government and other donors who are actively working towards developing the agriculture sector. D – GLOBAL ENVIRONMENTAL BENEFITS EXPECTED, OR ADAPTATION BENEFITS (if LDCF or SCCF project) 20. The adaptation benefits of the proposed project will primarily be in terms of the number of pastoralists practicing climate resilient livestock and water management practices. This will contribute towards the reduction of the proportion of populations classified as vulnerable to climate change impacts on food production. In turn, the project will contribute by way of lessons that can be scaled up to support the achievement of the Millennium Development Goals (MDGs), especially the goal of halving the proportion of people living on less than a dollar a day and those who suffer from hunger. The project will also help achieve benefits in terms of lessons from the pilot areas which can be replicated in other similar parts of the country (e.g. eastern lowland). The project will also be useful for promoting adaptation to climate change and variability not only in Eritrea, but the entire dry land of East Africa Project Identification Form.doc Rev February 15, 2007 4 where extensive pastoralist livestock production is practiced. The project will contribute to the GEF portfolio on adaptation through UNDP-GEF’s Adaptation Learning Mechanism (ALM). E – FIT WITH FOCAL AREA STRATEGY 21. This project reflects the first “urgent and immediate” project profile in Eritrea’s NAPA based on the guidance from the UNFCCC and LEG. The project is linked to baseline programmes of Government funded agricultural activities and the ongoing projects including IRDP, Lutheran World Federation Nutrition Project and Gash Barka Livestock and Agricultural Development Project. 22. The project is well aligned with Eritrea’s UNDAF for the period 2007-11. UN support for Eritrea will be in six major areas including food security, sustainable agriculture, environmental protection and natural resources development. It is also well aligned with a major portion of Eritrea’s Interim Poverty reduction Strategy Paper (2007) focuses on a statement of the Government’s commitment to poverty reduction. The preparatory phase of the project will outline in detail the key linkages. F – POTENTIAL RISK AND MITIGATION 23. National level policies on livestock and agriculture in the context of natural resource management are not adequately prepared and implemented. Legislation to regulate and monitor natural resources and the economic sectors are not in place or not completely enforced. The institutions with the mandate to promote environmental protection, to facilitate sustainable agriculture and livestock development, and to regulate utilization of natural resources lack sufficient capacity. During the preparatory phase, a detailed mitigation strategy will be formulated. One solution to mitigate some of these risks is to develop concurrently capacity and technical skills within Eritrea on the adverse impact of climate change including awareness raising for civil society at large on the risk posed by climate change Government support for this project is also likely to mitigate some risks although the full size proposal will need to articulate in detail specific measures. G – ADDITIONAL COMMENTS 24. The baseline financing of existing Government sponsored activities in the northwestern lowland and ongoing projects financed by Word Bank, Lutheran World Federation and International Fund for Agricultural Development (IFAD) respectively will serve as co-financing for the implementation phase of this proposed project. The Governmental budget line for agricultural activities during the life time of this proposed adaptation project which will serve as co-financing is US$2,500,000. Similarly, partnerships will be developed with the World Bank, Lutheran World Federation and IFAD whose on-going projects and programmes could contribute co-financing of approximately US$ 900,000. During the preparatory phase, Ministry of Agriculture, which is the implementing body, will support office space amounting to USD 10,000. UNDP country office in Asmara has contributed US$ 3,000 for the preparation of this PIF. 25. The executing agency for the preparatory phase of this project will be the Ministry of Agriculture through its regional office and its structure. During the project formulation phase, an in-depth analysis will be undertaken of the capacity of the Ministry of Agriculture and/or other appropriate local institutions that could implement the full size project. The communities and the local government will participate in preparing the strategy design, implementing and monitoring and evaluation. The full project will be designed following UNDP-GEF procedures. PART II - FINANCING PLAN 1) ESTIMATED PDF MANAGEMENT BUDGET (IF PLANNED) Estimated Staff Component weeks Locally Recruited Personnel 24 weeks Internationally recruited consultants Training Office equipment Travel Miscellaneous GEF($) 5,000 Other Sources ($) 3,000 Project Total ($) 8,000 10,000 10,000 1,000 13,000 19,000 1,000 6,000 2)- TIMETABLE FOR THE PROJECT Implementation Project Identification Form.doc Rev February 15, 2007 Start Date July 2007 PPG Completion Date March 2008 5 Start Date November 2008 Project Completion Date December 2012