EQUEST FOR
LOCK
A
GENCY
’
S
P
ROJECT
ID: 3690
GEFSEC P
ROJECT
ID:
C OUNTRY : Uruguay
C
OUNTRY
E
LIGIBILITY
: Uruguay ratified the
UNFCCC on July 22, 1994
P ROJECT T ITLE : Implementing Pilot Climate
Change Adaptation Measures in Coastal Areas of
Uruguay
GEF A
GENCY
: UNDP
O
THER
E
XECUTING
AGENCY (IS):
D
URATION
: 5 months
GEF F
OCAL
A
REA
(
S
): Climate Change
GEF O
PERATIONAL
P
ROGRAM
(
S
):
GEF S
TRATEGIC
PRIORITY: SPA
E
STIMATED
S
TARTING
D
ATE
: April, 2006
FOR
FINANCING PLAN (US$)
GEF P
ROJECT
PDF A
Sub-Total GEF
C
O
-
FINANCING
GEF Agency
National Contribution
In Cash
In Kind 5.000
Others
Sub-Total Co-financing:
Total PDF Financing:
R ECORD OF ENDORSEMENT ON BEHALF OF THE G OVERNMENT :
Name, Position, Ministry Date
25,000
5,000
5,000
30,000
This proposal has been prepared in accordance with GEF policies and procedures and meets the standards of the GEF Project Review Criteria for PDF Block A approval.
Project Contact Person
Oliver Page
Regional Technical Advisor
Tel.: (507) 302-4548
E-mail: oliver.page@undp.org
and Officer-in-Charge
UNDP/GEF
Date: March 3, 2006
Yannick Glemarec
Deputy Executive Coordinator
1

1.
GLOBAL SIGNIFICANCE AND PROBLEM STATEMENT
1.
The coastline of Uruguay is approximately 680 km long. Seventy percent of the
Uruguayan population resides in coastal zones, placing ever increasing development pressures on them. Some of the most valuable real estate in Uruguay lies in the coastal zone. Coastal areas play a critical role in the Uruguayan economy as 78% of the country’s Gross Domestic Product
(GDP) is generated in connection with activities taking place in those areas. Every year, the country’s beaches attract millions of visitors from the region and overseas, mainly from
Argentina.
2.
Wetlands occupy 3% of Uruguay's total territory, which are significantly concentrated in coastal areas. In all of Uruguay's natural environments, wetland ecosystems are among the richest in terms of diversity and wild flora and fauna. Among the most important wetland in
Uruguay, the following are important for buffering the impacts of climate change and of land based sources of marine pollution:
3.
The Bañados del Este in Eastern Uruguay is a complex mosaic of habitats of global importance, including mudflats, coastal dunes, estuaries, rivers, coastal wetlands and coastal lagoons
(both freshwater and brackish), inland marshes, palm swamps, grasslands, and riparian habitats.
Without doubt, Bañados del Este is principal conservation area for Uruguay in terms of ecosystem size and continuousness, and is the only place where native Uruguayan habitats can still be found in a wilderness state in a large extension. This strip includes various water surfaces and surrounding tidelands of river-sea junctions incorporating the Rocha lagoon, the Castillos lagoon, the Negra lagoon and the Uruguayan part of the Merín lagoon.
4.
The Santa Lucia River also housed wetlands of importance, which have the particularity of being located at the outskirts of Montevideo’s metropolitan areas and close to the coast. These wetlands are probably among the most vulnerable in Uruguay to urban sprawl, pollution and saltwater intrusion. Other important wetland is Esteros de Farrapos wetland, with an area of more than six thousand hectares located on the Rio Uruguay floodplain, which is of governmental property since 2001. The MVOTMA acquired this wetland aiming to manage it as a natural protected area, in the framework of the Protected Areas National System.
5.
The high productivity of these water-dominated ecosystems supports very large populations of wildlife, especially mammals, birds, and fish, as well as large extensions of unique botanical communities dominated by grasslands, macrophytes and palms.
Bañados Del Este wetlands continue to be under serious threat because of historic unsustainable land-use practices that have deteriorated its ecological integrity, many of which continue today.
Wetland loss and degradation have occurred because of the large-scale development of rice fields, and the coastal areas have been deteriorated because of tourism encroachment and urban development (Canevari et al. 2001).
6.
The habitats present in Uruguay do not occur in isolation from each other but are marked by localized geographic features including rocks, hills and small ravines. This contributes to a highly-branched hydrological network and the importance of coastal wetlands is due to the high biological productivity taking place there. The diversity of habitats and the complex array of
2

transitional areas result in large diversity of species. Low-lying coastal areas and tidal flats are also particularly vulnerable to climate change as storm surges and tides can impact inland freshwater bodies and groundwater. Similarly, coastal waters linked to the Mar del Plata estuary are also increasingly vulnerable to the impacts of increased freshwater discharge and of land based sources of marine pollution.
2. PROJECT LINKAGE TO NATIONAL PRIORITIES , ACTION PLANS AND PROGRAMMES AND
CP / GCF / RCF , CCA AND UNDAF SITUATION ANALYSIS
7.
As a party to the United Nations Framework Convention on Climate Change (UNFCCC) and the Kyoto Protocol, Uruguay is carrying out a wide scope of activities to fulfill its commitments. A Climate Change Unit (UCC) was created in 1994, within the framework of the
National Environment Directorate (DINAMA) of the Ministry of Housing, Territorial Regulation and Environment (MVOTMA), with the objective of advancing Uruguay’s efforts in this area.
Since its creation, the Climate Change Unit has conducted several national exercises to fulfill
Uruguay’s commitments under the UNFCCC. In addition, in 2000, the General Environmental
Protection Act was passed which provides a formal framework for environmental management and protection and incorporates specific provisions for climate change. Those include the identification of climate change adaptation and mitigation measures, the regulation of the release of greenhouse gas emissions, and the coordination of the responsibilities and efforts of other public and private entities related to those issues, by MVOTMA.
8.
The submission of the National Communications is one of the country’s main commitments under the UNFCCC. As a result of more than 10 years of capacity building activities carried out and coordinated by the Climate Change Unit, an Initial National Communication to the UNFCCC was submitted in 1997 followed by the country’s Second National Communication in 2004.
Uruguay was the first developing country in submitting its Second National Communication, prepared in accordance with the latest guidelines approved by the Parties in COP 8. Both communications well reflect the efforts of the country in exploring strategies that would allow it to deal with the effects of climate change while generating benefits to both the local and global environments. One such strategy was the comprehensive Program of General Measures for
Mitigation and Adaptation to Climate Change in Uruguay (PMEGEMA) which developed into, and was incorporated into Uruguay’s Second National Communication. The PMEGEMA was developed in coordination with all relevant stakeholders, through the establishment of inter institutional and multidisciplinary working groups. On November 2003, the implementation of the measures listed in the PMEGEMA was declared of Ministerial Interest by MVOTMA.
9.
Adaptation to climate change is thus a major policy objective for Uruguay. In the preparation of its Third National Communication to the Convention, the MVOTMA is working to address the priorities identified in previous communications. Climate change adaptation in the sectors of water resources, coastal resources, and agriculture were among the sector priorities identified. Although other sectors (e.g. agriculture) are also sensitive to climate change and need to consider adaptation, these three are particularly critical in terms of both development and vulnerability to climate change. For the purpose of this submission for a Medium Size Project to the GEF, this project will concentrate on adaptation measures necessary to preserve and restore coastal wetlands, and the sustainable use of coastal resources, one of the main environmental assets of the country.
3

10.
Through the PMEGEMA, the Uruguayan government defined concrete adaptation measures for various exposed systems. Referring to Coastal Resources, three measures were identified: a) To promote the integrated management of Coastal Areas of Uruguay, through interagency and inter-institutional coordination in vulnerable segments of the Coast to the impacts of climate change.; b) Establishment of a systematic monitoring system for tidal surges and beach profiles; c) Study of degraded coastal areas with a practical proposal for the restoration and the reduction of future climate risks for coastal ecosystems and infrastructure.
11.
Addressing adaptation in these sectors is fully consistent with other national actions.
Moreover, a significant level of synergy is evident with existing policies, plans, and programs including the Water Act passed in 1978, the Soil Conservation Act of 1982, the Forestry
Promotion Law of 1987, the Environmental Impact Assessment Act of 1994, the General
Environmental Protection Act of 2000, and the Protected Areas Act of 2000. With the designation of Uruguay’s “Eastern Wetlands and its Coastal Zone” as a Ramsar site and the ongoing regional GEF-supported projects like PROBIDES, a significant conservation baseline has been built for the lakes and coastal lagoons of the eastern wetlands system called Bañados del
Este. The project has also involved a series of partners including international NGOs such as
IUCN, and local organizations.
12.
Larger regional initiatives have also been undergoing on international waters with a large
UNEP-GEF project called “Formulation of a Water Resources Management Framework of the
Plata River Basin”. Another regional project is the “Environmental Protection of the Rio de la
Plata and its Maritime Front”, a UNDP/GEF International Waters project, referred to as
FREPLATA , which centers on the prevention and control of pollution and the restoration of coastal habitats, as a binational ecosystem and international waters.
13.
FREPLATA identifies in its overall assessment of coastal resources in the Rio La Plata
International watershed, a sharp increase, during the past decades, of tourism, fishery activities and marine traffic, as well as the growth of human settlements and industrial activities, and the building infrastructures that are being planned in the basin area, are all factors that have and will have a significant impact on the coastal zone of the Rio de la Plata In its assessment of the impacts of climate change and human induced environmental change in the Rio La Plata watershed its maritime front between Argentina and Uruguay, FREPLATA identified two cross cutting environmental impacts: 1) Land based sources of marine and freshwater pollution, and 2)
Changes in the structure and productivity of coastal and marine ecosystems, due to changes in salinity, turbidity and composition of this estuarine system. The FREPLATA project has developed up to 2004 a Trans-boundary Assessment (ADT), which has led to propose a Strategic
Action Program (PAE). As part of its scientific assessments of the land-based sources of marine pollutants, FREPLATA identified that the 35,000Km2 watershed of the Rio La Plata receives a sediment load of 260,000 Tons/day from the Rio Paraná and 20,000 Tons/day from the Rio
Uruguay watershed. The greatest impacts of these changes affect the flora and fauna of the coastal and marine ecosystems of the lower Rio La Plata. In particular, due to sharp increases in precipitation and runoff, the maritime front-the limit between outgoing freshwater and seawater is reseeding eastwards. This change in hydrology, partly attributable to climate variability, is also affecting Large Marine Ecosystems linked to the Maritime Front of the La Plata Estuary.
4

14.
Another important initiative at the national level is the Project ECOPLATA, with support from the Canadian research organization IDRC and UNDP, which has also documented the
Uruguayan coastal ecology of the Río de la Plata. ECOPLATA is a programme aimed at supporting research and management, to sustain, preserve and use the natural resources of the coastal zone of the Rio de la Plata and its ocean front Similarly, the MVOTMA Land Use
Planning Directorate has developed over past years a National Coastal Policy which was linked to phase 3 of the ECOPLATA project, and which defined zoning rules and designated critical coastal management zones.
15.
Much of the information generated by these two regional projects (ECOPLATA,
FREPLATA) provide an particularly solid scientific baseline upon which to build an adaptation project, focusing on the relationship between climate change and its impact on environmental change in international waters and coastal resources in Uruguay. This baseline is important in defining the Global Environmental Benefits which this project will aim for, which are directly linked to reducing the impacts of climate change in the coastal ecosystems of Uruguay, as part of the larger international water system of the Rio La Plata.
16.
Uruguay has been the first Latin-American country to complete its enabling activity for the
National Capacity Self-Assessment for Global Environmental Management (NCSA), which has provided an important overview of the country’s activities in fulfillment of its obligations under the United Nations Framework Convention on Climate Change (UNFCCC), the United Nations
Convention to Combat Desertification (UNCCD) and the Convention on Biological Diversity
(CBD), as well as a roadmap to increase national capacities. Capacity enhancement derived from the execution of this climate change adaptation project will fulfill some of the capacity needs identified in the NCSA project. In particular, among the most important needs identified are those related to inter institutional coordination, information-sharing and to raising awareness on these issues among decision-makers and stakeholders.
17.
Uruguay is also among the first Latin American countries to obtain GEF funding, in the framework of the six-year UNDP/UNEP joint proposal to fund 130 climate change enabling activities in support of National Communications, to prepare its Third National Communication
(TNC) to the UNFCCC. Building on the achievements of prior national communications, the
TNC project proposal sets out to identify measures geared to mitigation of and adaptation to climate change applicable to those activities and sectors with great importance due to economic and environmental criteria, which were not sufficiently addressed in the previous studies developed for the submitted national communications. Since the coastal resources are among the most exposed systems to climate change in Uruguay, the TCN project proposes an evaluation of the vulnerability of Uruguay’s coastal zone to different climate change scenarios recently developed using the PRECIS model to conduct the downscaling of Global Circulation Models. It proposes the economic valuation of the coastal resources under climate change threat, while conducting the economic assessment of adaptation measures to be identified.
18.
Finally, the adaptation measures proposed by this project are also in line with the recommendations outlined in the Buenos Aires program of work on adaptation and response measures released at the 10 th
Meeting of the Conference of the Parties of the UNFCCC (Buenos
Aires, Argentina, December 2004). Decision 1/CP.10 “ insists that action relating to adaptation follow an assessment and evaluation process, based on national communications and/or other
5

relevant information, so as to prevent maladaptation and to ensure that adaptation actions are environmentally sound and will produce real benefits in support of sustainable development
”.
3. STAKEHOLDERS AND BENEFICIARIES INVOLVED IN PROJECT
19. The successful implementation of adaptation options faces significant barriers, mainly related to institutional factors that hinder coordination across stakeholder groups. Therefore, efforts are required to successfully engage those. Adaptation must be demand-driven, because those affected by climate are in the best position to understand their own needs and priorities.
Working with the stakeholders that would be directly involved in implementing adaptation actions would ensure a successful outcome.
20.
Efforts to engage stakeholders in the development of the proposed pilot adaptation projects will target multiple levels of governance (local, municipal, and national). Other anticipated stakeholders include civil society groups, local communities, universities, and private sector actors. The tourism sector and those agents in charge of planning urban development, land use planning and coastal development will be directly engaged through partnerships with the
National Directorate of Land Use Planning at the MVOTMA (DINOT) and the National
Directorate of Environment at the MVOTMA (DINAMA).
21.
Consultations at the regional and international level will also be carried out in order to secure support for the project from donors and other sources of funding. This PDF Block A grant would be used to identify the main partners and stakeholders in the targeted pilot adaptation program.
4.
RATIONALE FOR GEF INVOLVEMENT AND FIT WITH GEF OPERATIONAL PROGRAMMES
AND STRATEGIC PRIORITIES
22.
Coastal resources and human settlements along Uruguay shoreline are a major development asset, as most tourism activity concentrates in coastal areas. Initial results from scientific studies, such as the LA-32 project of the AIACC (Assessing Global Change Impacts, Vulnerability, and
Adaptation Strategies for Estuarine Waters of the Rio de la Plata) and the ECOPLATA project mentioned above, point to the relatively high degree of vulnerability of coastal resources to changes in precipitation and river discharges, increased coastal erosion, changes in salinity and turbidity of coastal waters, with a greater incidence of algal blooms. These projects have already identified a sharp increase in precipitation of 23% in the Rio de la Plata lower watershed over the past 30 years, which is already reducing salinity of coastal waters and compounding the impact of floods and tidal surges on coastal infrastructure. These studies provide an important baseline on which to build a strategy to protect these international waters and coastal resources from the future impacts of climate change.
23.
Although a minor contributor to global warming, Uruguay is likely to be severely affected by global climate change and may face serious problems in achieving sustained and environmentally sound economic and social development given the link between the country’s natural resources and its economic performance. Studies conducted for the SNC indicate that the most significant impacts are projected to be on its water resources, coastal resources, and
6

agricultural sector. Natural resource management therefore is a critical issue in Uruguay’s efforts to adapt to climate change. Uruguay’s main human settlements are also sensitive to climate change, particularly in terms of changes in river discharges and mean sea level. Climate change thus poses considerable development challenges to the country’s economy which need to be addressed.
24.
Sea level rise in Uruguay could have a wide range of impacts due to its low lying coastline.
Direct impacts include shoreline erosion (i.e. beach deterioration), increased flood risk, saltwater intrusion of surface and ground waters, and destruction of important wetlands. The increase in mean precipitation in the Rio de la Plata region also will contribute to increased runoff and with it more likely scenarios for Land-Based Sources of Marine Pollution. Their magnitude depends not only on the amount of sea-level rise but also on land use and management approaches.
Therefore, indirect impacts would include damage to coastal infrastructure, tourism, and recreation services. The predicted loss of land from sea-level rise would have a major impact on the tourism industry.
25.
This project will seek funding from the GEF Strategic Priority on Adaptation, under the
Climate Change and International Waters focal areas. The key objective of this PDF Block-A activity is to develop a proposal aimed at the pilot implementation of selected adaptation measures in coastal areas of Uruguay. By first identifying those coastal ecosystems most sensitive to the impacts of climate change, the project will define the range of measures needed to abate or reduce climate related risks for coastal wetlands and activities related to their sustainable use.
26.
The Project’s General Objective is to promote adaptation measures necessary to protect coastal wetlands and international waters of the Rio La Plata Estuary from the impacts of climate change, through the sustainable use of coastal resources, one of the main environmental assets of the country. The proposed adaptation measures will be aimed at increasing the resilience of coastal resources to climate change, by building upon climate change vulnerability and adaptation assessments already carried out as part of Uruguay’s national communications and national studies, and are included in the country’s PMEGEMA and Second National Communication to the Convention.
27.
The global environmental benefits derived from successful adaptation measures in international waters and coastal areas in Uruguay are linked to the conservation and wise use of wetlands of international importance, and to the sustainable management of international waters, as part of the lower Rio de la Plata Basin. More specifically, among the impacts of climate change already being felt in the region is the sharp increase in precipitation since 1976, which has been estimated at 30% of annual averages for the Rio La Plata watershed. This increase in rainfall is already producing more frequent floods, more storm surges and damages to coastal infrastructure and natural resources. In particular, the potential for an increase in land-based sources of marine pollution is a major concern linked to climate change, as more floods mean a greater risk of POPS and nutrient loading of international waters. Scientific report from projects such as FREPLATA and ECOPLATA have already indicated an incidence in algal blooms of dinoflagelates related to nutrient loading in coastal waters off Uruguay’s southern and eastern coastline.
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28.
Among the Global Environmental Benefits sought by this project we can mention: a.
Restoration and sustainable use of wetlands of international importance in coastal areas as a buffer for extreme climate events, and a means of storage of excess runoff. b.
Control of nutrient runoff and pollutant transport into coastal and international waters, through sectoral and local campaigns to protect coastal waters. These GEB are related to OP9 on Persistent Organic Pollutants, in the reduction or control of release of
POPS into freshwater and marine ecosystems. c.
Reduction of the risks related to recurrent floods and coastal erosion along Uruguay’s south coast, through the integrated management of coastal resources.
29.
As a project geared to designing adaptation measures to the impact of climate change, this project will also seek to enhance existing environmental assets in Uruguay, by increasing the resilience of coastal ecosystems to increased precipitation and runoff. These adaptation measures cannot be divorced from a development context, as adaptation policies would need to be further designed so as to ensure an adequate integration into national economic planning. These pilot demonstration adaptation projects also fit the objectives of Gaff’s strategic priority in the climate change focal area for “Piloting an Operational Approach to Adaptation” since their implementation would enable the country to comply with multilateral environmental agreements and other focal areas of the GEF while fostering sustainable development.
30.
The proposed measures focus on “win-win” situations, those that yield net benefits irrespective of climate change. They would help minimize climate change impacts while, at the same time, being justified for the sustainable development of coastal areas in the country, through land use planning and adaptive zoning practices. Adaptation in this sector would allow more flexibility and resiliency to a full range of future stressors, including adverse effects of climate change on human settlements and tourism infrastructure along the coast. Decision makers in climate-dependent sectors are usually more concerned about short-term concerns rather than longer-term issues such as climate change. From that point of view, the selected measures will be also effective, since they take into account both time scales.
31.
The project will set out to develop a three level approach to adaptation in
Uruguay’s coastal areas. a.
Information Gathering, Identification and Monitoring of critical exposed elements of coastal ecosystems and human settlements, including the provision of timely climate risk information, the identification of critical “hotspots” or priority areas for the application of adaptation measures geared to monitor and reduce land-based sources of marine pollution, to increase the resilience of exposed assets and infrastructureparticularly in the tourism industry and to protect and restore critical coastal ecosystems- particularly wetlands from the impact of climate change. b.
Identify barriers to adaptation in coastal areas of Uruguay, design policy interventions for their effective and efficient removal, for the improved understanding of current and future climate risks and design pilot adaptation measures and capacity development packages for priority sectors and key stakeholders. c.
Incorporate Adaptation Policy into existing National Sustainable Development Policy, through targeted approaches to key sectors such as the tourism industry and other
8

potentially vulnerable sectors to the impacts of climate change in Uruguay. Contribute to a National Adaptation Strategy for Coastal Areas in Uruguay, with an Action Plan designed to promote adaptation measures for critical exposed systems.
32.
Such a national strategy will build on the existing scientific baseline on the state of coastal and marine resources developed by prior GEF projects such as ECOPLATA and FREPLATA.
The project will establish strategic partnerships with National Universities and research organizations should include not only the acquisition of information on the sensitivity and vulnerability to climate change of native species and habitats, but also the acquisition of information of the threats to the ecosystems and to populations and sector dependent of their productivity. Critical exposed systems will be identified during the PDF A phase in order to prioritize adaptation measures aimed at protecting sensitive sites and species. Where a particular threat is limited to a single pollutant or industry, and then direct mitigation or protection may be possible. Where the threat is associated with a general regional ecological trend towards dominance by alien species, or driven by diffuse anthropogenic pollution (for instance, elevated nutrient levels), then localized protection and mitigation might not be feasible. The design of the monitoring programme should therefore take into account that sensitive sites and species are part of a complex set of interactions. If an indirect impact is a consequence of a long-term or largescale trend, then the appropriate mitigation actions may be neither obvious nor immediate.
33.
A second element of the monitoring and control of potential sources of marine pollution from land-based sources will include a Rapid Assessment of Pollution Sources (RAPS), point and diffuse, along the coast in those critical priority areas defined beforehand with National partners.
The assessment will be carried out using the methodology developed by the GEF Global
International Waters Assessment Project (GIWA), combined with a GIS database to enable pollution loadings in the proximity of sensitive fisheries and critical areas to be assessed and pollution hot spots identified. The RAPS results will be validated by on site investigations and cross checking against official data, and in the case of diffuse sources water sampling and analysis. The RAPS will be a primary input into a National Adaptation Strategy and Coastal Zone
Development Plan to be developed in conjunction with on going programs such as the 3 rd
phase of the ECOPLATA program.
34.
A capacity development package will also be designed to be applied to key stakeholders in a series of pilot adaptation projects in critical coastal areas in Uruguay. This package will be based on the existing methodologies developed by UNDP in its Adaptation Policy Framework
(APF), as well as complementary approaches developed locally by Uruguayan research institutions and NGOs. In particular, interesting stakeholder engagement approaches have been tested in the Santa Lucia watershed, in some of the most vulnerable wetlands close to Uruguay’s capital, Montevideo. These tested approaches will be incorporated in the Pilot Adaptation
Projects during the PDF A phase of project design. A monitoring and evaluation component will also be set up during the PDF A phase, in which specific indicators of impacts of the project on freshwater and coastal ecosystems will be developed. Two sets of indicators will be needed: 1)
Vulnerability and Adaptation Indicators will be needed to measure the project’s capacity to reduce the vulnerability of exposed ecosystems, increasing the resilience of coastal resource to the impacts of floodwaters, as well as by controlling runoff of pollutants and nutrients, and through the efficient management and wise use of wetlands in Uruguay. 2 ) Global Environmental
Benefits Indicators , which will identify the impact of these adaptation measures on the health of
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the International Waters of the Rio La Plata, in terms of reduced incidence of algal blooms, and other bio-indicators of marine pollution.
35.
The Project will also contribute to improve the existing national policy framework linked to
Climate Change in Uruguay. In particular, the project will strive to influence national and local development policy, in particular in the tourism industry and the coastal zone management. The housing of the project in the Ministry of Housing, Environment and Territorial Planning is appropriate, and key linkages will be sought with local authorities responsible for land use zoning and planning. Critical lessons will be drawn from this policy integration approach. Since lessons learned from Uruguay would be relevant to many other developing countries with exposed coastal ecosystems and wetlands and could serve as a model for application around the World, this is also the project’s global (GEF) environmental benefit to be achieved from the implementation of this project. As part of this global learning curve, this project will contribute to the global UNDP GEF project of the Adaptation Learning Mechanism (ALM). The ALM systematically assess the experience gained by the GEF family during the development and implementation of the GEF adaptation pilots, as well as capture project-level lessons emerging from a range of other sources at the national, sectoral and local levels. In this sense, several
UNDP GEF projects in adaptation are focusing on coastal areas and this project Uruguay could prove to be a key learning opportunity for other countries across the world through the ALM.
5. EXPECTED GOAL , OBJECTIVES AND OUTCOMES OF FINAL PROJECT AND
RELEVANCE TO OUTCOMES OF CPD AND UNDAF
36.
As a result of this PDF Block-A activity, a proposal in required UNDP GEF format for a
Medium Sized Project will be done, for the pilot implementation of adaptation measures identified in Uruguay’s Second National Communication to the UNFCCC, in priority coastal areas. Then, main outcomes of the MSP will include:

Implementation of the pilot adaptation measures proposed as a result of the PDF Block-A activity execution.

Enhanced capacity for the identification of barriers to adaptation and the design of effective and efficient interventions to remove them.

Enhanced capacity for the planning, stakeholder engagement, implementation, monitoring and evaluation of adaptation measures in Uruguay, to specifically address the sustainable development of coastal areas.

Timely information on changes in climate conditions, runoff and river discharges, coastal morphology and ecosystem health of wetlands in Uruguay, made available in useful form to decision-makers at the national and local level.

Identified opportunities to mainstream adaptation to climate change into current and future decision-making processes, national policies, planning efforts, projects, particularly in the tourism sector.
10


Identified options available for transferring adapted technologies so as to meet the challenges of sustainable development of coastal areas in Uruguay by promoting the development of resilient society, economy, and ecosystems.

Improved understanding by decision makers in the selected sectors (tourism, coastal resources, wetlands, water resources) on the importance of incorporating climate change considerations into decision-making and planning processes not only at the relatively short time scale (climate variability) but also at longer scales since climate change could cause the patterns of climate variability to differ from historical trends.
6. DESCRIPTION OF PREPARATORY INCEPTION STAGE
37. Activities planned during the PDF A to achieve expected outcomes include the following:

Start-up phase: overall planning of the project, identification of consultants to be engaged in the project, preparation of terms of reference for the consultants, and preparation of terms of reference for the pilot projects to be developed.

Follow up and assistance throughout the planning process.

Links to conclusions of NCSA process and to priorities fixed by the TNC formulation process.

Identify exposed ecosystems and critical infrastructure and resources along coastal areas of
Uruguay; prioritize these in terms of their relative vulnerability to climate related hazards, and to potential impacts of land-based sources of marine pollution.

Select key partners and local municipal partners in critical coastal areas.

Design monitoring and evaluation (M&E) system for the project with impact indicators on
GEB.

Design pilot adaptation measures and capacity development packages for local stakeholders

Development of the selected pilot adaptation projects in critical spots along Uruguay’s coast

Follow up and assistance at pilot project preparation.
 Development of other MSP’s components, related to: i) capacity development activities, ii) decision makers and other stakeholders awareness, based on an strategic information management and iii) integrate adaptation into national and local policies, particularly in the tourism and coastal development sectors.

Consolidated project document finalized.

Translation of final document prior to submission to funding agencies.
38. For the development of each pilot demonstration project:

In-depth analysis of the selected adaptation measure as reported in Uruguay’s Second
National Communication (SNC). Links to key sectors and priority areas for the TNC.

Identification of the region within the country that would be the focus for the development of the pilot adaptation measure (a deteriorated coastal area in the case of coastal resources or a wetland vulnerable to change in sea level rise and increased run-off. ).

Design approach for pilot adaptation measures to reduce marine pollution risk and impacts to coastal ecosystems due to the direct and indirect effects of climate change.
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
Several workshops will be held with key stakeholders in conjunction with individual consultations, in order to discuss the site selection for the pilot project, the development of the proposal, and the implementation strategy.
 Identification of potential barriers to the implementation of the adaptation measures, and ways to overcome them.

Assessment of the feasibility of the proposed pilot project, including its relevance for funding purposes.

Development of the implementation strategy building on the analysis above and including the following components: identification of lead and cooperating institutions, key steps to implementation and schedule of activities, identification of human and financial resources, outreach activities to build support for the measure and promote awareness and involvement, monitoring, and evaluation.

The strategy should also ensure the compatibility of these adaptation measures with other plans and policies, by building on the capacity needs identified during the NCSA process recently concluded in Uruguay.
39. The project will engage national consultants in charge of developing the pilot field projects as well as a national coordinator for the management of the program. Technical meetings will be convened as needed in order to carry out consultations with interested parties. Some travel may be involved for the identification of the project sites and the development of the pilot projects.
EXPECTED OUTCOMES
/
COSTS AND COMPLETION DATES OF THE PDF A
Output
GEF funding (US$)
Government funding (US$)
Completion date
Start-up phase (planning)
Sectoral consultancies for the development of pilot adaptation project
2,000
15,000
2,000 January 30, 2006
3,000 April 15, 2006
Overall coordination
Amalgamation into a final, consolidated product
Translation of final document
5,000
2,000
1,000
June 15, 2006
June 30, 2006
June 30, 2006
TOTAL 25,000 5,000
Government funding is in kind.
40. “Sectoral consultancies” and “Overall coordination” items include consultancy fees, consultations and workshops to discuss the pilot project concept and development, and travel costs if needed.
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7.
TOTAL WORK PLAN AND BUDGET
AWARD
:
TBD
AWARD TITLE : PIMS 3690 CC : PDF A URUGUAY ADAPTATION
PROJECT ID
:
TBD
PROJECT TITLE : PDF A / IMPLEMENTING PILOT CLIMATE CHANGE ADAPTATION MEASURES IN
COASTAL AREAS OF URUGUAY
GEF
Outcome/Atlas
Activity
Responsible
Party
Source of
Funds
Atlas Code ERP/ATLAS Budget
Description/Input
Amount
(USD)
Amount
(USD)
2006
GEF
GEF
71300 National consultants
71200 International consultants
13,000
OUTCOME 1:
MSP prepared through consultative process
UNDP
GEF
GEF
GEF
GEF
72100 Contractual Services
71600 Mission costs and Travel
74200 Audio Visual & Print Costs
74500 Miscellaneous Expenses
4,000
2,000
5,000
1,000
TOTAL 25,000
Total
(USD)
13,000
4,000
2,000
5,000
1,000
25,000
8.
MANAGEMENT ARRANGEMENTS
Name : Ministry of Housing, Territorial
Regulation and Environment,
MVOTMA (National Directorate of
Environment, DINAMA)
Type : Governmental organization
Date of Establishment, Membership, and Leadership : June 8, 1990
Sources of Revenue : National budget.
41. Mandate: The national executing agency of the project is the National Directorate of
Environment (DINAMA), at the Ministry of Housing, Territorial Regulation and Environment
(MVOTMA), which is responsible for the development, implementation, supervision, and evaluation of national environmental protection plans and programs. As such, MVOTMA is in charge of the implementation of UNFCCC and the Kyoto Protocol in Uruguay and the fulfillment of the commitments emerging from those. In this sense, the General Environmental Protection
Act (Nº 17.283), provides a formal framework for environmental management and protection and incorporates specific provisions for climate change. Those include the identification of climate change mitigation and adaptation measures and programs, the regulation of the release of GHG emissions, and the coordination of the responsibilities and efforts of other public and private entities related to those issues, by MVOTMA. The main commitment emerging under the
UNFCCC is the elaboration and submission of the National Communications to the Conference of the Parties in the UNFCCC. The rationale of the present project was identified in the framework of Uruguay’s Second National Communication and the outcomes and outputs will be a contribution to the Third National Communication.
42. Recent Activities/Programs in Uruguay, in particular those relevant to GEF:
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 Enabling activity: Uruguay’s Second National Communication to the UNFCCC:
Programs of General Measures and Voluntary Greenhouse Gas Emissions Reduction.

National Capacity Self-Assessment (NCSA) for Global Environment Management.
 Enabling Activities for the Stockholm Convention on Persistent Organic Pollutants
(POPs): National Implementation Plan for Uruguay.

Environmental Protection of the Rio de la Plata and its Maritime Front (ECOPLATA
– a regional project).
 Environmental Protection and Sustainable Integrated Management of the Guaraní
Aquifer (regional project).

Formulation of a Water Resources Management Framework of the Plata River Basin
(FREPLATA- a regional project).
43. Project Linkage to Implementing Agency program(s)
The project is of high priority for the UNDP as falls squarely in the priorities of the current of
Cooperation Framework for Uruguay. This indicates that: the UNDP will support the harmonization of the environmental policies and the management of the territory, including the revision and elaboration of regulations within this topic; the design and implementation of plans for managing areas of particular environmental, social and economic relevance such as the coastal zone, water resources, singular ecosystems and cities; the strengthening of institutional capacities and the formation of human resources in the Central Government, the Municipalities and local communities; the promotion of environmental co-responsibility in the private sector; the prevention and management of environmental emergencies
”.
44. The UNDP office in Uruguay shows a solid experience in the implementation of projects in the GEF focal areas of International Waters and Climate Change. Among these recently concluded programs, are: “Environmental protection program of the Río de la Plata and its
Maritime Front (FREPLATA); the support to the integrated coastal zone management in the
Uruguayan coast of the Río de la Plata (ECOPLATA); the project “Capacity building for Local
Development” in the Quebradas del Norte Region of Uruguay; the Program for the conservation of biodiversity and sustainable development in the Eastern Wetlands (PROBIDES). UNDP has also provided support for the enabling activities related to the National Capacity Self Assessment in Uruguay, and will channel resources for its Third National Communication to the UNFCCC.
All these will constitute the baseline upon which this GEF project alternative will be built.
9.
MONITORING AND EVALUATION
45. Project monitoring and evaluation will be conducted in accordance with established UNDP and GEF procedures and will be provided by the project team and the UNDP Country Office
(UNDP-CO) with support from UNDP/GEF. The Logical Framework Matrix provides performance and impact indicators for project implementation along with their corresponding means of verification . These will form the basis on which the project's Monitoring and Evaluation system will be built.
The following sections outline the principle components of the Monitoring and Evaluation Plan .
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MONITORING AND REPORTING
46. Monitoring responsibilities and events
A detailed schedule of project reviews meetings will be developed by the project management, in consultation with project implementation partners and stakeholder representatives and incorporated in the Project Inception Report. Such a schedule will include: (i) tentative time frames for Tripartite
Reviews, Steering Committee Meetings, (or relevant advisory and/or coordination mechanisms) and
(ii) project related Monitoring and Evaluation activities.
47.
Day to day monitoring of implementation progress will be the responsibility of the Project
Coordinator, Director or CTA (depending on the established project structure) based on the project's Annual Work plan and its indicators. The Project Team will inform the UNDP-CO of any delays or difficulties faced during implementation so that the appropriate support or corrective measures can be adopted in a timely and remedial fashion.
48.
Periodic monitoring of implementation progress will be undertaken by the UNDP-CO through quarterly meetings with the project proponent, or more frequently as deemed necessary.
This will allow parties to take stock and to troubleshoot any problems pertaining to the project in a timely fashion to ensure smooth implementation of project activities.
49.
Project Monitoring Reporting
The Project Coordinator in conjunction with the UNDP-GEF extended team will be responsible for the preparation and submission of the following reports that form part of the monitoring process.
(a) Inception Report (IR)
50.
A Project Inception Report will be prepared immediately following the Inception
Workshop. It will include a detailed Firs Year/ Annual Work Plan divided in quarterly timeframes detailing the activities and progress indicators that will guide implementation during the first year of the project. This Work Plan would include the dates of specific field visits, support missions from the UNDP-CO or the Regional Coordinating Unit (RCU) or consultants, as well as time-frames for meetings of the project's decision making structures. The Report will also include the detailed project budget for the first full year of implementation, prepared on the basis of the Annual Work Plan, and including any monitoring and evaluation requirements to effectively measure project performance during the targeted 12 months time-frame.
51.
The Inception Report will include a more detailed narrative on the institutional roles, responsibilities, coordinating actions and feedback mechanisms of project related partners. In addition, a section will be included on progress to date on project establishment and start-up activities and an update of any changed external conditions that may effect project implementation.
52.
When finalized the report will be circulated to project counterparts who will be given a period of one calendar month in which to respond with comments or queries. Prior to this
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circulation of the IR, the UNDP Country Office and UNDP-GEF’s Regional Coordinating Unit will review the document.
(b) Quarterly Progress Reports
53. Short reports outlining main updates in project progress will be provided quarterly to the local UNDP Country Office and the UNDP-GEF regional office by the project team. See template attached.
(c) Technical Reports (project specific- optional)
54. Technical Reports are detailed documents covering specific areas of analysis or scientific specializations within the overall project. As part of the Inception Report, the project team will prepare a draft Reports List, detailing the technical reports that are expected to be prepared on key areas of activity during the course of the Project, and tentative due dates. Where necessary this Reports List will be revised and updated, and included in subsequent APRs. Technical
Reports may also be prepared by external consultants and should be comprehensive, specialized analyses of clearly defined areas of research within the framework of the project and its sites.
These technical reports will represent, as appropriate, the project's substantive contribution to specific areas, and will be used in efforts to disseminate relevant information and best practices at local, national and international levels.
(d) Project Publications (project specific- optional)
55. Project Publications will form a key method of crystallizing and disseminating the results and achievements of the Project. These publications may be scientific or informational texts on the activities and achievements of the Project, in the form of journal articles, multimedia publications, etc. These publications can be based on Technical Reports, depending upon the relevance, scientific worth, etc. of these Reports, or may be summaries or compilations of a series of Technical Reports and other research. The project team will determine if any of the Technical
Reports merit formal publication, and will also (in consultation with UNDP, the government and other relevant stakeholder groups) plan and produce these Publications in a consistent and recognizable format. Project resources will need to be defined and allocated for these activities as appropriate and in a manner commensurate with the project's budget.
Audit Clause
56. The Government will provide the Resident Representative with certified periodic financial statements, and with an annual audit of the financial statements relating to the status of UNDP
(including GEF) funds according to the established procedures set out in the Programming and
Finance manuals. The Audit will be conducted by the legally recognized auditor of the
Government, or by a commercial auditor engaged by the Government.
10.
LEGAL CONTEXT
57. This Project Document shall be the instrument referred to as such in Article I of the Standard Basic Assistance Agreement between the Government of Uruguay and
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the United Nations Development Programme, signed by the parties. The host country implementing agency shall, for the purpose of the Standard Basic Assistance
Agreement, refer to the government co-operating agency described in that Agreement.
58. The UNDP Resident Representative in Uruguay is authorized to effect in writing the following types of revision to this Project Document, provided that he/she has verified the agreement thereto by the UNDP-GEF Unit and is assured that the other signatories to the Project
Document have no objection to the proposed changes: a) Revision of, or addition to, any of the annexes to the Project Document; b) Revisions which do not involve significant changes in the immediate objectives, outputs or activities of the project, but are caused by the rearrangement of the inputs already agreed to or by cost increases due to inflation; c) Mandatory annual revisions which re-phase the delivery of agreed project inputs or increased expert or other costs due to inflation or take into account agency expenditure flexibility; and d) Inclusion of additional annexes and attachments only as set out here in this Project
Document
11. M
ANDATORY
A
NNEXES
Annex 1:
Annex 2:
TOR for key staff
Government GEF Operational Focal Point Endorsement Letter
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UNDAF Outcome(s)/Indicator(s):
(Link to UNDAF outcome. If no UNDAF, leave blank)
Expected Outcome(s)/Indicator (s):
SIGNATURE PAGE
Country: URUGUAY
_____________________________________
(CP outcomes linked t the SRF/MYFF goal and service line)
Measures of climate change mitigation and adaptation and of risk reduction have been implemented. Production and use of sustainable energies has increased.
Expected Output(s)/Indicator(s):
(CP outcomes linked t the SRF/MYFF goal and service line)
Proposals to reduce climatic and environmental vulnerability formulated, discussed and agreed among relevant stakeholders. Adaptation measures implemented.
Implementing partner: Ministry of Housing, Territorial Planning and the
Environment (MVOTMA), GOU
(Designated institution/Executing agency)
Other Partners:
(Formerly implementing agencies)
_________________________
_________________________
Programme Period: January- July 2006
Programme Component:
Project Title: Implementing Pilot Climate Change
Adaptation Measures in Coastal Areas of Uruguay
Project ID:
Project Duration: 6 months
Management Arrangement: NEX
Budget 30,000
Allocated resources:


Government
Regular

Other:
5,000 (In kind) o
Donor 25,000 (GEF) o
Donor o
Donor o

In kind contributions
Agreed by (Government): ___________________ ____________________________________
Agreed by (Implementing partner/Executing agency) : ________________________________
Agreed by (UNDP):___________ __________________________________________________
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