FINANCING PLAN (IN US$):

PROJECT Development Facility

Request for Supplemental PDF Block B Approval

Financing Plan (US$)
GEF AllocationProject
Project (estimated)	$8,000,000
Project Co-financing (estimated)	$27,000,000
PDF A*	$25,000
PDF B** Supplemental 2004	$350,000 $350,000
PDF C
Sub-Total GEF PDF	$725,000
PDF Co-financing (details provided in Part II, Section E – Budget)
IBRD/IDA/IFC
ICEIDA /NORAD	$134,000
ICEIDA	$239,000
To be identified	$370,000
Japan	$1,000,000
Supplemental 2004 Contributions: · Governments from all 9 countries in SWIOFP · From Others	$200,000 $100,000
Sub-Total PDF Co-financing:	$2,043,000
Total PDF Project Financing:	$2,768,000

* Indicate approval date of PDFA: 2001

** If supplemental, indicate amount and date of originally approved PDF: $350,000 in January 2001

Agency’s Project ID: GE-P072202-LEN-BBGEF

GEFSEC Project ID:

Country: Regional: Kenya, Tanzania, Mozambique, Comoros, South Africa, Madagascar, Seychelles, Mauritius, (and France[1]); Mozambique is regional coordinator;

Project Title: Southwest Indian Ocean Fisheries Project (SWIOFP)

GEF Agency: World Bank

Other Executing Agency(ies): Ministries of Fisheries from the participating Countries

Duration: 15 months

GEF Focal Area: International Waters

GEF Operational Program: OP 8

GEF Strategic Priority: IW-2: "Expand global coverage of foundational capacity building addressing the two key program gaps and support for targeted learning."

Estimated Starting Date: July 2005

Estimated WP Entry Date: May 2005

Record of endorsement on behalf of the Government:

	This project concept has been endorsed at the time of pipeline entry and time of initial request of PDF B.

This proposal has been prepared in accordance with GEF policies and procedures and meets the standards of the GEF Project Review Criteria for approval.
Steve Gorman GEF Executive Coordinator, World Bank		Christophe Crepin Project Contact Person
Date: August 4, 2004		Tel. and email: 202-473-9727, ccrepin@worldbank.org

PART I - Project Concept

A – Summary and Background

The Southwest Indian Ocean Fisheries Project (SWIOFP) is one of three projects which together form the basis for the Somali and Agulhas Currents Large Marine Ecosystem Program. While the SWIOFP would be prepared and supervised by the World Bank, the other two ‘Oceanographic and Coastal Demonstrations’ projects under the Somali and Agulhas Currents LME program would be prepared and executed by UNDP with close cooperation with the World Bank. A third component of the LME relates to land-based impact on the marine environment and is the focus of an existing program implemented through the UNEP. This multi-donor initiative to build a long-term vision for sustainable management of the Agulhas and Somali marine LMEs is expected to have multiple phases that build on each other. The program requires multi-agency implementation to address all of the institutional, capacity and harvest issues inherent in management of the resources of an LME. It will also be essential to fully describe the impact of these currents on the physical/chemical/biological environment of the proposed project area (the same area as that of the SWIOFP, as well as science linkages to inshore coastal resources)

Preparation for SWIOFP began in January 2002 when a GEF PDF B grant agreement was signed between IDA (representing the GEF) and the Government of Mozambique to support partial preparation of the Southwest Indian Ocean Fisheries Project. Mozambique was nominated by the participating countries in SWIOFP (now including Kenya, Tanzania, Mozambique, South Africa, Madagascar, Comoros, Seychelles France[2] and Mauritius[3]) to be the regional coordinator of project preparation and therefore has custody of the PDF-B Special Account.

The main expected output of the SWIOFP is to prepare a defensible Transboundry Diagnosis (TDA) of regional fisheries issues and a Strategic Action Plan (SAP) defining how each of the SWIOFP countries propose individually and collectively to address any regional issues identified. This will be accomplished through a scientific program of collecting information on exploited and exploitable fish stocks in the offshore areas of the 200 mile Exclusive Economic Zone (EEZ) of participating countries. This would allow rational decisions to be made about the level (and by implication of cost) of appropriate national and regional marine fisheries management. Specifically, SWIOFP will focus on the following:

Undertake a regionally coordinated and managed assessment of the current status of commercially valuable fish stocks in the Western Indian Ocean. This would be done through a program of observers on commercial vessels supplemented by dedicated and spatially (time and geographically) coordinated “stock assessment” research cruises by leased vessels;
Undertake a fishing pressure survey by remote sensing and aerial surveys to obtain a spatial (both time and geographical) snapshot of who is exploiting the resource (legal and IUU), what type of fish are being exploited (as indicated by the type of vessel fishing), variability in the “where” and “when” of fishing effort;
Develop a preliminary level of harmonization of regulation and cooperation in management of regional and straddling fisheries that could form the basis of better and more formal regional management in the future;
Develop a “culture of regional cooperation” between fisheries research and fisheries management scientists in the Western Indian Ocean, and strengthen capacity in government agencies.

The Project Brief will differentiate between activities to be undertaken in the Aguhlas and the Somali Current LME’s. The TDA and SAP resulting from SWIOFP will present information for each LME separately.

In addition to component-based TDA’s and SAP’s (fisheries, marine environment and land-based impacts on the coastal and marine environment), there will be an integrated TDA and SAP produced for the Aguhlas and Somali Current LME’s as a whole. This integrated output will identify thematic environmental issues and how the countries within the LME Program propose to address these larger issues. UNEP will be responsible for the coordination and harmonization of input from the UNDP, World Bank and UNEP-supported components under the LME needed to produce this thematic output. UNEP will also be responsible for the reporting requirements.

PART II - Project Development Preparation

A - Description of Proposed Supplemental PDF Activities

The Supplemental PDF-B will support the activities of 5 technical working groups (TWG) tasked with preparation of the technical, financial and economic, and managerial aspects of the project. The 5 TWG’s, and subsequent Plenary meetings to review and approve their output, bring representatives of all 9 countries within SWIOFP together to make all decisions (see Section E for a description of how the current PDF-B was used to set up the technical working groups, how the countries to host each TWG were identified, and how a regional management structure for project preparation was established). Specifically, the Supplemental PDF-B would support:

· TWG meetings in South Africa, Kenya, Tanzania, Madagascar and Reunion (France) to prepare detailed descriptions of project components, subcomponents and activities to be undertaken within each component, the goods, works and services needed to accomplish each activity over the life of the Project, and associated detailed cost-tables;

· Project Pre-appraisal Plenary Session in Maputo, Mozambique, in late November or early December 2004 where each TWG will present the results of its work to senior managers of the fisheries in the respective SWIOFP countries, international donors, the IOTC, FAO and other relevant international scientific bodies and the World Bank;

· TWG follow-up meetings in South Africa, Kenya, Tanzania, Madagascar and France to finalize project design;

· The economic and financial analyses of the Project- including incremental cost assessment for the GEF;

· Project Appraisal Plenary Workshop in Maputo, Mozambique.

· Preparation of a M&E Plan

· Development of a Stakeholder Involvement Plan

B - Timetable

Activity	Action	Schedule
Legal TWG Meeting	Input into detailed Project Implementation Plan	June 2004
Project Management TWG	Identify regional coordination structure of SWIOFP	July 2004
Science TWG	Input into detailed Project Implementation Plan	August 2004
Database TWG	Input into detailed Project Implementation Plan	September 2004
Procurement/Operations TWG	Input into detailed Project Implementation Plan	October 2004
PREAPPRAISAL PLENARY	Review draft of full project design	December 2004
GEF Project Document	Present to GEF COP	February for May 2005 meeting
Legal TWG Meeting	Input into final Project design	February 2005
Science TWG	Input into final Project design	March 2005
Database TWG	Input into final Project design	April 2005
Operations/Procurement TWG	Input into final Project design	May 2005
APPRAISAL PLENARY	Finalize Project Design	July 2005
Bank Board Presentation		October 2005

The additional funds will also allow the SWIOFP to integrate and interact more closely with other, related GEF projects such as the West Indian Ocean Marine Electronic Highway (WIO MEH) Project and the Benguela Current LME ?\

Program. Coordination with the WIO MEH project is aimed at effectively monitoring vessels operating in the 200-mile exclusive economic zone to improve surveillance and enforcement of regulations for sustainable fisheries management. Coordination is aimed at testing the feasibility of using navigation technology systems to monitor movements and activities of vessels within countries’ territorial waters. Further, harmonization with the UNDP-sponsored components of the Aguhlas and Somali Current LME Program will continue.

UNDP will continue to be invited to attend all SWIOFP Working Group and Plenary Sessions, and SWIOFP anticipates and will include costs of having its Regional Project Manager of Preparation (IIP of Mozambique) all UNDP preparation activities. Formal acceptance of each others program will be sought through an exchange of official letters after the Preappraisal Mission for SWIOFP so that these can be included in submission of the Project Briefs to the GEF May 2005 Council Meeting.

C - PDF Block B Outputs

The main expected outputs of the supplemental PDF B phase are detailed documents feeding into the GEF Project Brief to be submitted to the GEF Council meeting in May 2005. Submission of the project to the Bank Board is planned for August 2005. Specific outputs are as follows:

· Agreement on the form and host for a regional project database accessible to all SWIOFP countries in “real time”;

· Agreement on the form, cost and financing of a regional project implementation coordination office;

· Adoption of all legal processes to ensure free movement of Project assets and Project staff and consultants within the study area;

· Agreement to harmonize national legislation relating to management of the fishery resource in the 200 mile EEZ of all participating countries;

· Fully costed and integrated fish stock assessment program to operate within the SWIOFP study area;

· Fully costed and integrated fishing pressure survey to operate within the SWIOFP study area;

· A staff capacity building program fully identified and costed by all participating countries;

· Agreement by all countries that the data outputs from SWIOFP will be used to develop a mutually agreeable Strategic Action Plan to address any regional fisheries issues identified.

D - Justification

The first PDF-B has established a uniquely efficient, regionally focused, project preparation process. The system (based on the NEPAD self-reliance model) has proven very resilient to external difficulties, sufficiently robust to countries wanting to join that temporarily have problems meeting project preparation responsibilities. It has also led to remarkable buy-in by the participant countries (now totaling 9 countries with a total Project area of over 29 million km²).

What remains now is to prepare the technical, financial and economic, and managerial aspects of the Project. This would be the focus of the supplemental PDF-B, which would support the TWG and Plenary meetings of the 9 countries within SWIOFP. Ultimately the additional funds would primarily be used to create the Project Brief for submission to the GEF Council meeting in May, 2005. The Project Brief will also include a detailed “Stakeholder Involvement Plan”.

E - Current Status and Process of Project Preparation

Because of the unique nature of the preparation of the SWIOFP, it was decided to break project preparation of the SWIOFP into two phases. The first phase (supported by the initial PDF-B grant) established the project preparation structure, established the information dissemination processes and products, developed links between the regional coordinator of preparation and the other 8 countries in the Project, and supported the first round of technical discussions on Project components. The second phase of the preparation (the focus of this request for a supplemental PDF-B) would target the regional preparation of the “project implementation plan” leading to presentation to the GEF Council for approval, and subsequently presentation to Bank Board.

The initial PDF Block B Grant Agreement was signed by Mozambique (as de facto representative of the other SWIOFP participating countries) and the World Bank in January 2002. The need to address procedural issues related to the regional nature of SWIOFP led to slower than expected start-up of preparation activities. In spite of these difficulties, progress has been steady. Accomplishments to date (fulfilling the expected outcomes of the first PDF-B) are:

(1) Setting up Special Account and financial transfer mechanisms with SWIOFP countries hosting working groups,

(2) hiring a project advisor,

(3) hiring an executive secretary,

(4) selecting countries to co-ordinate theme working groups (TWG),

(5) analyze plan of activities and budgets for the TWG,

(6) assist in organization of TWG workshops,

(7) create an address and web site for the project,

(8) create and circulate a newsletter, and to expose the project when participating in other regional meetings.

F – Budget

PDF B Activity	Cost Funded with GEF PDF B (US$)	Cost Funded by Co-financiers (US$)	Total Cost per Activity (US$)
Working Group Meetings	200,000	200,000	400,000
Plenary Meetings (project preparation)	100,000	100,000	200,000
Consultants	30,000		30,000
Operation of Regional Coordinator	10,000		10,000
Linkage to other LME components and externally	10,000		10,000
Total Cost	350,000	300,000	650,000

Co-financing Sources
Name of Co-financier (source)	Classification	Type	Amount (US$)	Status
SWIOFP Governments[4]	Counterpart finance	In-kind	$200,000	Committed in-kind support
Bilateral technical specialists to Plenary (NORAD, Spain, EU, etc.)	Bilateral	Grant	$50,000	Committed
IOTC, SADC, FAO and UNDP		rant	$50,000	Committed

Sub-Total Co-financing $300,000