CONCEPT PAPER for a FULL SIZED GEF PROJECT
1 Project
title:
Regional Partnership for Prevention of Transboundary Degradation of the Kura-Aras river
2
GEF Implementing Agency: United Nations Development Programme
3
Country or countries in which the project is being implemented: Armenia, Azerbaijan, Georgia, Islamic
Republic of Iran and Turkey
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GEF Focal Area(s): International Waters
5
Operational Program/Short-term measure: Waterbody-based Operational Programme (OP8)
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Country Drivenness (Project linkage to national priorities, action plans and programs):
The Kura-Aras1 river system is critical to sustainable development of the South Caucasus countries - Armenia,
Azerbaijan and Georgia. It is the principal source of water for industry, agriculture, residential uses and energy.
Accordingly, the management and protection of the river system is reflected in the national development and
environment policies and plans of the three countries. The rivers are also important to sustainable development for
sizeable populations in the two upstream countries - Iran and Turkey. The rivers run into and impact the Caspian
Sea, therefore affecting all communities using the Sea, in particular those of Iran and Azerbaijan.
Regional cooperation is a key long-term aim of all five countries, and cooperation on shared water resources is an
intrinsic component of such cooperation. The Kura and Aras rivers are important to regional cooperation as they
cross many borders and constitute lengthy parts of the borders.
National Policies
Armenia lies fully within the Kura and Aras river basins and sustainable development of the country depends fully
on these waters. The 1998 Armenian National Environment Action Plan (ArNEAP) gives high priority to the water
sector. This is demonstrated by the fact that the Integrated Water Resource Management Plan is the only component
of the ArNEAP on which significant progress has been made. Armenia has also prepared the Lake Sevan
Environmental Action Plan (Lake Sevan is a major water resource within Armenia) targeting the sustainable and
integrated management of the lake's resources.
Azerbaijan. Sustainable use of the Kura and Aras rivers is particularly important to Azerbaijan. Azerbaijan relies on
surface waters for 90% of its water supply, and most of the surface water comes from the Kura/Aras. According to
the Azerbaijan National Environment Action Plan "pollution of the main rivers and the Caspian Sea is a very
serious problem". Azerbaijan is also very committed to international cooperation on water issues. It has ratified the
Helsinki convention on Trans-boundary watercourses and has approved the Hague Declaration on Water security in
21st century.
Georgia's National Environmental Action Plan (GeNEAP) gives priority to water resource management and lists
the Kura river as one of the most polluted watercourses in Georgia. The GeNEAP indicates that protecting the Kura
requires immediate and concerted action both at national and regional levels. Georgia is committed to regional co-
operation in the management of Trans-boundary surface waters. In 1999, the Government of Georgia signed the
protocol to the Helsinki convention on Trans-boundary watercourses at the Ministerial Conference on Health and
Environment. At the meeting of the parties to the Convention in March 2000 at the Hague, Georgia signed the
Ministerial Declaration on the principles of integrated water resource management, including the Trans-boundary
context
1 Kura is the name of the river in Russian, the language commonly used and understood by all countries of the South
Caucasus. The river is called Kur in Armenian and Azeri, Mtkvari in Georgian. The Aras river is known as the Araks
river in Armenia.
1
Turkey Water resources management and water quality protection is identified as a priority in Turkey's National
Environmental Action Plan (NEAP, 1998). The main water resource and quality issues identified in the NEAP are:
(1) deforestation and poor farming practices leading to erosion, (2) uncontrolled agricultural runoff and discharge of
fertilizers and chemical pesticides, (3) large water management projects which if improperly managed can cause
population displacement, climatic changes, loss of biodiversity and salinization, (4) diffused responsibility and
authority for managing water bodies involving many organizations operating under a variety of laws which reduce
effectiveness of water resources management. The Aras river is identified as one of the 26 major water basins in
Turkey with a precipitation area of 27,548 km2.
Iran The Iranian National Strategy for Sustainable Development identifies the following relevant actions among its
list of priority actions and investments:
· Implementing projects to protect biodiversity...and international water pollution mitigation.
· Implementing a priority investment programme for "win-win" projects...investments that have both
environmental and economic benefits...(such as) projects for watershed and forestry management.
· Addressing water pollution problems from urban households and industrial sectors through modification of
water pricing, institutional framework, and efficient investments...Along with investment preparatory
work, water sector studies should be launched and the comprehensive water plan updated.
The National Biodiversity Report of the I. R. Iran recognises that managing the rivers that flow into the Caspian is
vital to protecting the Caspian Sea ecosystem.
The Islamic Republic of Iran has ratified several global and regional conventions including: Convention on
Biological Diversity (CBD), Convention on Transboundary Movement of Hazardous Waste (Basel), and is
cooperating in regional international waters initiatives in the Caspian Sea and Persian Gulf at present.
Sub-regional Policies and Cooperation
Following the break-up of the Soviet Union, mechanisms for cooperation, joint water management, and information
sharing ceased to function. In 1997, the Ministry of Environment in Georgia took the initiative to promote regional
cooperation, notably with the support of the EU TACIS programme. Bilateral co-operation agreements were
developed between Armenia and Georgia and between Azerbaijan and Georgia and were signed in 19982. Articles
6,7, and 8 of these agreements state an urgent need for the protection of transboundary ecosystems and migratory
species. In a related initiative, in 1997 the Hydrometeorological Departments of Armenia, Azerbaijan and Georgia
signed a co-operation agreement governing the exchange of information
At project, technical and bilateral levels, there is a growing number of inter-country initiatives in the environmental
field, including:
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the establishment of the Regional Environmental Centre (REC3);
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the GEF MSP Arid and Semi-Arid Ecosystem Conservation in the Caucasus (see later in this document for
further details) by Armenia, Azerbaijan and Georgia;
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informal cooperation on the USAID funded project South Caucasus sustainable water management project.
Turkey has also officially observed some of the activities in this project.
See Annex 2 for more information on related inter-country projects 4.
2 The "Agreement on Environmental Protection between Georgia and Azerbaijan" and the "Agreement on Environmental
Protection between Georgia and Republic of Armenia".
3 The REC was established under the Environmental Action Programme for Central and Eastern Europe (EAP) in 1999. Its
mission is to assist in solving environmental problems in the Caucasus region by encouraging co-operation among non-
governmental organisations, governments, businesses, and other environmental stakeholders, by supporting the free exchange of
information and by promoting public participation in environmental decision-making. The founders are the authorised
representatives of the European Commission (DGXI) and Armenia, Azerbaijan and Georgia (their ministries of environment).
4 The information in Annex 2 was provided by Development Alternatives Incorporated who are responsible for
implementing the previously mentioned USAID project.
2
Despite the above-mentioned agreements and the many projects listed in Annex 2, recent political tensions (between
Armenia and Azerbaijan, and between Armenia and Turkey) have limited cooperation in the sub-region. The
concerned countries are working to address these political issues, and progress has been made recently.
7 Context
Regional Importance of the Waters
The Kura-Aras river system is an internationally significant river system, which is seriously degraded and continues
to be threatened. Integrated and trans-boundary responses are necessary to address the threats to the river system,
and to address their underlying causes.
The Kura River originates in the Kizil-Giadik mountain range in Ardahan province in Northeast Turkey, winding its
way through mountainous regions in Turkey, Georgia and Azerbaijan into the Caspian Sea. Tributaries from
Armenia flow north into the Kura in Georgia and Azerbaijan. The Aras River originates in Erzurum province in
eastern Turkey. It flows along the Turkey-Armenia border, along the Iran-Armenia border, along the Iran-
Azerbaijan border, before flowing into Azerbaijan where it joins the Kura near the Caspian. Tributaries from
Armenia flow south into the Aras. The Aras divides just before meeting the Kura, and one branch flows directly into
the Caspian. The total length of the Kura river is 1515km and the total area of the Kura-Aras basin 188 000km2,
occupying the greater part of the South Caucasus. This area is distributed amongst the five countries as follows: Iran
40 000 km2; Turkey 28.900 km2; Azerbaijan 52.900 km2; Armenia 29.800 km2; and Georgia 36.400 km2.
The population in this largely mountainous area is approximately 7 million (see Maps in Annex 1).
The rivers and their tributaries cover almost all of Armenia and Azerbaijan, and a sizeable part of the populated and
urbanized parts of Georgia. The waters in the rivers are therefore essential to sustainable development of these three
countries. Whereas they are less crucial, at a national level, to Iran and Turkey, they are nevertheless important to
the economy and communities living in the catchment areas. The South Caucasus have been identified by
Conservation International (CI) as one of the world's 25 biodiversity hotspot, and the area identified by CI
corresponds closely to the catchment area of the two rivers. This demonstrates the ecological importance and
fragility of this area. The Aras is home to one of the last natural sturgeon breeding grounds, there are important and
unique dry-land riparine forests along the Kura, and the delta where the Aras and Kura rivers flow into Caspian
contains many important wetland sites. The Caucasus region is also well known for its diversity of natural
landscapes, climate, unique and ancient cultural heritage, archaeology and ethnography.
General Status of the Waters
Man's activities in the second half of the twentieth century had a drastic effect on the quality and quantity of the
water in the rivers. A range of factors, including industrial pollution, domestic waste, agricultural pesticides, large-
scale irrigation/flood control/hydropower schemes and watershed degradation have affected the waters. All countries
have contributed to this situation. However, as many countries in the region experienced a significant economic
decline in the last decade, the stress on water quality in some parts of the river has decreased temporarily. In the
future, as the economies in the region grow, and as some industrial activities are restored, the most likely scenario is
that the threats to the water quality will also again grow. Water quantity problems have generally not decreased in
the past decades, with increasing droughts and floods. A good example of how mismanagement can cause
irreversible damage to the ecosystem is the disappearance of the Tugai forest in Azerbaijan. Inefficient irrigation
used the water needed by the forests, and the forests were unable to survive.
The further downstream, the greater the deterioration in water quality and the increases in water quantity challenges.
This downstream progression is due to the increasing levels and aggregation of pollution emissions, the increasing
demands for water, and the fact that the downstream areas are naturally drier. The Kura-Aras rivers also have a
major impact on the Caspian Sea. At present, the river is the second largest flowing into the Caspian, providing
approximately 10% of the total inflow. It is possible that it provides an even greater share of the Caspian's
3
pollutants5. In order to sustainably manage the Caspian Sea, it will be necessary to manage the quality and quantity
of the inflow from the Kura Aras.6
Generally speaking, capacity to manage natural resources in the region is limited. Each country has limited
institutions and tools to manage water, and lacks funds due to poor economic performance in recent years.
Monitoring and information systems are weak in each country. Each of the countries has a growing but incomplete
legislative system to manage water resources, including laws, decrees, guidance, fees and charges. Enforcement
levels are mixed. Each country also has a small but growing NGO community, particularly Georgia and Armenia.
Previously, the three downstream countries were part of the Soviet Union and since the break-up of the Soviet Union
there are almost no mechanisms for regional cooperation.
National Contexts
Armenia lies upstream on the Kura and Aras Rivers. Armenia has considerable water reserves, both underground,
surface and in over 50 man-made reservoirs. Irrigation accounts for an estimated two-thirds of water usage, and
water resources are also used for industry, hydropower, recreation, domestic use, and waste disposal. Hydropower
accounts for 35% of total energy production. Existing data suggests that Armenia is a source of trans-border
pollution on the rivers, notably to Azerbaijan. Armenia experiences regular spring floods due to snow-melts and
flash floods which can cause much damage. These floods can flush out sediments in the reservoirs, including
deposits of pollutants. Finally, lake Sevan, which plays an important role in the national economy, and feeds into the
Aras river, has been shrinking in recent years.
Management of water and environment is distributed over several agencies, including the Ministry of Nature
Protection, the National Environmental Authority, the Hydrometeorological department and others. Coordination
amongst agencies is weak and there is institutional confusion, however there is a strong vertical management
structure in place.
At present, Armenia has weak relations with two of its neighbours (Turkey and Azerbaijan) and this is a barrier to
cooperation. However, cooperation on natural resource management does exist, and it is hoped that cooperation on
such technical issues as water resources will become increasingly possible. Armenia continues to have good
relations with Iran.
Azerbaijan is an arid country, totally reliant on water from the Kura-Aras for agriculture, industry and residential
use. The rivers also feed many ecosystems in Azerbaijan, including the sturgeon breeding grounds. The present
status of the rivers is a real threat to national sustainable development and to these ecosystems.
As described by the AzNEAP, "The Kura River (from Georgia) and its tributary (Aras River from Armenia) are
already heavily polluted before they cross the border to Azerbaijan. Most flora and fauna cannot survive under these
conditions. Municipal and industrial contamination sources and agricultural pesticides from inside Azerbaijan add to
the problem. Water from Kura River does not meet Azerbaijan's drinking water standards, even after conventional
treatment."
On leaving Georgia, the river Kura enters Azerbaijan and is immediately stored in the Minchechou reservoir. Vast
areas of Azerbaijan are irrigated by this reservoir. Pollutants from Georgia also collect in this reservoir, and these
pollutants are subject to being flushed out by floods.
Due to recent conflicts with Armenia, Azerbaijan is home to a large number of internally displaced persons (IDP).
The IDPs create a large pressure on the country's natural resource base, particularly on riparian forests along the
Kura in the north of the country.
5 Until recently, the Volga was by far the largest pollution source. However, economic decline along the Volga has led to major
drops in the pollution load.
6 The Caspian Sea covers 422,000 km2 and provides a livelihood for 12 million people in five countries. GEF is providing
support to the protection of the Caspian through the Caspian Environment Programme (CEP) with the involvement of the five
riparian countries and UNDP, World Bank, UNEP and EU-TACIS.
4
At the national level, responsibilities for environment and water resources are shared by the newly formed Ministry
of Environment and Natural Resources (formed from the previous State Committees for Environment, Geology,
Hydrometeorology and the Forestry Agency) and the State Water Committee.
Georgia is rich in water resources. It has two primary drainage basins, separated by the Likhi range of mountains.
The eastern basin drains into the Caspian Sea, the western into the Black Sea. The Kura is the largest river in the
eastern basin. Georgia is also rich in biological diversity due to its highly varied climatic, geologic, topographic, and
hydrologic conditions. These conditions allow Georgia to support a biota that includes up to 4,500 species of
vascular plants and 10,000 cryptograms together with other organisms. Much of this diversity is found in the Kura
watershed, and in the Kura and its tributaries
Georgia both contributes to and suffers from degradation of the Kura river. Industrial and domestic untreated waste,
coming largely from the Tibilsi region7, severely degrades the water. This is further exacerbated by inefficient
agricultural practices (large irrigation schemes and pesticide use). By the time the water leaves Georgia for
Azerbaijan it is seriously degraded. At the same time, a healthy Kura River is essential for an healthy Georgian
economy. Georgia depends on the Kura river for industry, agriculture, fishing, energy production and recreation. For
example, large areas of eastern Georgia depend on agriculture irrigated by the Kura. Also, some of Georgia's
hydropower (which supplies approximately 70% of Georgia's electricity) comes from schemes on the Kura.
Of the three lower riparian countries, Georgia probably has the strongest institutional and legislative framework. It
also has a stronger technical capacity and a developing network of NGOs.
Iran A large area of Northern Iran feeds into the Aras river. The Aras accounts for over 350 km of Iran's northern
border, and therefore the area is important for Iran's relations with its neighbours. Iran has relatively good relations
with its neighbours. The areas of Iran and Azerbaijan near the border share a common culture, which has facilitated
relations between the two countries.
The Government of Iran has a policy to develop hydropower. Details of the plans are still being prepared, but it is
considered likely that a large number (up to forty) of small and medium hydropower plants may be built on the Aras
river. At present, little is known of the use of this water in Iran, and the status of the water as it runs into the
Azerbaijan
Iran is a riparian country of the Caspian Sea and large parts of its population are dependant on the Caspian for
industry, agriculture and recreational uses. However, as noted in The National Biodiversity Report of I. R. Iran
"polluted rivers threaten the coastal ecosystems... Man-made barriers and obstacles close the migration routes of
fishes, and no fish-ways are anticipated along their migration routes, therefore many spawning grounds are
destroyed." Iran is therefore a strong supporter of efforts to improve the quality of the Caspian through the improved
quality management of inflowing rivers (notably the Kura-Aras).
Turkey The Turkish provinces of Erzurum, Ardahan, Kars and Igdir lie upstream in the Kura-Aras basin. The rivers
also make up a small part of Turkey's border with Armenia. While the environmental situation in these eastern
provinces is comparatively good; watershed degradation, erosion and agricultural pollution are issues of concern.
Existing data suggests Turkey contributes to pollution levels. Long-term efforts to manage the Kura-Aras would
require the involvement of Turkey, and Turkey is keen to cooperate in the region in the long-term.
8
Project Rationale and Objectives:
Objectives
The overall objective is to ensure that the quality and quantity of the water throughout the Kura-Aras river system
meets the short and long-term needs of the ecosystem and of the communities using the ecosystem. Related to this, a
second objective is to reduce pollution in the Caspian Sea.
7 The Rustavili industrial district, just downstream from Tibilsi, is a major source of industrial pollution
5
The immediate objectives of the project are: to foster regional cooperation; to increase national and regional
capacity to address water quality and quantity problems; and to promote changes in the economic sectors causing
pollution, water shortages and habitat degradation. The focus will be on transboundary issues.
Threats
The water quality in the Kura and Aras rivers is low, gets worse progressively downstream, and is likely to get
worse in the future. In terms of quantity, despite many efforts to manage the water flow, areas in the region continue
to experience both floods and shortages. These constraints are also likely to grow along with the demand for water
in the coming decades. Finally, the Kura contributes greatly to the degradation of the Caspian Sea. All of the major
quality and quantity challenges on the rivers have trans-border aspects.
Urban and residential threats
The 7 million or so people in the river system discharge water and other waste material directly into the river
system, with almost no treatment. This problem is widespread across the basin, and tends to accumulate
downstream. It is notably important downstream of large urban areas such as Tbilisi, spreading into Azerbaijan.
Industrial threats
Industry is common throughout the region and is generally old, highly polluting technology. All kinds of industry
are found, providing all forms of pollution. All countries also have abandoned contaminated industrial lands, which
are likely to release pollution over large time-scales. Although industrial pollution crosses all the borders, the
Rustavili industrialised region just downstream from Tibilsi is a major source of pollution for Azerbaijan. Industry is
also a major user of water, therefore affecting water quantity.
Energy-related threats
Upstream countries use dams to generate hydropower. These already affect the temporal flow of water. There are
plans to increase hydropower significantly in coming years, notably in Iran , and possibly Turkey and Armenia.
These plans will clearly affect water in all downstream countries.
Agricultural threats
Armenia, Georgia and Azerbaijan have large, inefficient and polluting agricultural systems, based on dams and
irrigation. Irrigation schemes lead to water loss and lead to salinisation, and agricultural systems add pesticides and
fertilisers to the water. These problems accumulate downstream, leading to severe water quality and quantity
problems as the rivers enter the Caspian.
Water-shed management
Deforestation and land degradation in upstream areas, notably in Turkey, Iran and Armenia, are affecting the quality
and quantity of water entering the river. Deforestation is a major contributor to changes in the temporal flow of
water, and to the sedimentation flow in the river. Deforestation along the river in Armenia and Azerbaijan is also a
major challenge.
Underlying Causes
The above threats to water quality and quantity have many underlying causes, including:
At a regional level:
· Agencies responsible for water management have little incentive to work closely with counterpart agencies
in other countries;
· There is little incentive to ensure sustainability of water quality and quantity that leaves the country;
· Government actions and action plans in each country are not coordinated with related actions in other
countries;
· Similarly, efforts by the non-governmental community (the scientific community and NGOs) are not
coordinated with efforts in other countries;
· Private sector activities in one country are not in line with plans and legislation across the border;
· Standards, legislation vary from country to country;
· Data and information on the water quality/quantity is limited, especially at cross-border points.
At the National levels:
· Government agencies do not have capacity to manage water;
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· Inter-sectoral cooperation mechanisms are inadequate;
· Lack of tools to improve water management within each sector, eg to manage pesticide use in the
agricultural sector;
· In Azerbaijan, internal migration leads to unsustainable utilization of river and riverside resources;
· Polluters face few incentives to clean up;
· Underdeveloped legislation;
· Fragmented and very incomplete system of water monitoring and unavailability of reliable data on
pollution;
· Finance and financial mechanisms to clean water or reduce pollution emissions are inadequate;
· Government and non-governmental actors (NGOs and private sector) do not pool resources.
Baseline Scenario
The concerned countries recognize the problems and are making efforts to improve water quality. The efforts tend to
be fragmented and un-coordinated, and tend to focus on the threats rather than on addressing the root causes. This
fragmentation is both within the countries, and across the countries. Given the above underlying causes, it is
unlikely that ongoing national efforts would lead to water improvements in the near future; it is more likely that
things would get significantly worse before getting better.
The international community is supporting efforts to improve the water quality, particularly in the three downstream
countries. The international community is also fostering regional cooperation amongst these three countries. Two
important planned/ongoing projects include the EU/TACIS Interstate Environment Programme (ISEP) and the
USAID Regional Sustainable Water Management project. ISEP is supporting capacity building for monitoring and
assessment. This includes the necessary institutional strengthening to improve monitoring8. The USAID project is
working with the three countries on information collection and management (including GIS), on regional political
cooperation and on initiating pilot projects. This project initially takes a series of bilateral approaches to
strengthening water management capacity.
Both of these projects start off with a rapid needs assessment.
The absence of Turkey and Iran from other initiatives means that a comprehensive, integrated approach cannot be
taken. Even in the three downstream countries, there are no strong tools to foster coordination and cooperation. Even
if tools were developed, the capacity in the countries to manage water and to cooperate regional are insufficient.
Notably, information shortages make it impossible to set priorities. Existing initiatives are limited in technical scope,
focusing on some aspects but not all aspects of the degradation, and existing initiatives do not take an integrated
approach they focus too much on the threats, not on the underlying causes.
Alternative Scenario
The present and planned efforts may slow down the deterioration of the Kura-Aras system. They are not likely to
lead to an improvement in the water quality. Without additional support, no effective national or regional
management system will be established. Lack of coordination, lack of incentives, will mean that degradation and
pollution continue.
The GEF project will set solid foundations for a long-term, regional, fully integrated and comprehensive approach to
management of the Kura-Aras rivers. It will allow for: full involvement of all countries; a thorough analysis of the
situation (technical, institutional, financial, social and economic) in terms of threats and underlying causes; the
development of thorough and integrated approach to planning and priority setting; the identification of sustainable
financial mechanisms, and; the full involvement of all partners. The GEF project will build on the findings,
information, capacity development and institutional setting of other internationally supported projects in the region,
notably the above-mentioned EU/TACIS and USAID projects, and the Caspian Environment Programme9.
8 This 4 million programme covers four rivers, and starts up in 2001.
9 The Caspian Environment Programme (CEP), supported by several international agencies including GEF, has its
headquarters in Azerbaijan. CEP is a cooperative effort amongst all states on the Caspian to revert environmental
7
Why should GEF get involved at all?
The Kura Aras river system is an internationally important waterbody seriously threatened by transboundary threats.
Protecting this waterbody is therefore beyond the scope of one country, and will have global benefits. The catchment
area is also important in terms of biodiversity, ethnic diversity and political cooperation. Finally, improving the
quality and flow of the Kura Aras is essential to protecting the Caspian sea.
Governments in the region are committed to cooperate. However, existing mechanisms to operationalise this
commitment are limited, and hindered by the tense political situation. GEF support can ensure this commitment
leads to action.
9
Expected outcomes and activities of Full Project:
The project will develop a framework for cooperation, a detailed plan to achieve that cooperation, and the tools
needed to implement the plan. Specifically, it will have the following outcomes (to be verified during a PDF stage):
Regional:
1. A transboundary diagnostic analysis of pollution sources and hot spots, habitat loss and water quantity issues in
the Kura-Aras basin. This will serve as an update and comprehensive background document for planning,
priority setting and decision-making;
2. A regional Strategic Action Programme (SAP). This will clarify the overall goals and objectives. It will set out
priorities, timelines and responsibilities for improving the regional management of basin resources. The SAP
will determine financial sources of funding. It will identify needs in terms of capacity, legislation, institutional
strengthening, as well as key infrastructure requirements. The SAP will identify measures to address all
underlying causes;
3. Inter-governmental capacity for transboundary water management. An appropriate regional approach to
management will be developed, this may be an inter-governmental committee, or river-basin authority, etc. The
possibility of an inter-country water management agreement will be explored;
4. Increased harmonization of legislation, standards and monitoring;
5. Enhanced
non-governmental regional capacity: this will cover the technical and scientific community, the
private sector, the industrial and agricultural community, and NGOs. The project may facilitate the setting up of
networks, information centers, and clearing houses;
National (the following outcomes, although observed at the national level, are essential to achieving the regional
objectives)
6. National strategic action plans for each country in the basin. Based on the SAP, these will provide detailed
guidance and implementation plans for each country. The national SAP will cover technical, legislative,
financial, economic and scientific measures, and a clear allocation of responsibilities;
7. National capacity for integrated water resource management of the basin. This will include high-level political
commitment. Each country should develop appropriate mechanism for in-country management, which feed into
and from the regional mechanism. This will include appropriate inter-departmental mechanisms, and
mechanisms for NGO and private sector participation in water resources management;
8. Raised awareness, at all levels, including high-level political levels, and strengthened NGO networks;
9. Possibly, GEF will cover the incremental costs of measures to address urgent, important transboundary water
issues;
10. Study of Minchechou lake quality (Azerbaijan only).
Wiithin the framework of the regional SAP, some bilateral activities may also take place:
11. Development of a water sharing agreement between Georgia and Azerbaijan;
Activities to achieve these outcomes are likely to include:
degradation in the Caspian. The CEP houses much information on environmental management in the region, and
through its network will contribute to the successful implementation of this Kura-Aras project.
8
1. Establishment of an international, intergovernmental project Steering Committee. All GEF Implementing
Agencies and other key donors will be invited to be members of this Committee, along with concerned
development banks;
2. Establishment of regional expert group to support the Steering Committee;
3. Establishment of inter-department decision-making bodies in each country, with support from non-government
sector;
4. Establishment of expert teams covering key sectors;
5. Undertaking a national diagnostic analysis of water quality, water quantity, water management, water related
legislation and standards, sources of pollution, and efforts to improve water quality. This will also cover
institutional and financial issues;
6. Incorporating the national analyses into a transboundary diagnostic analysis (TDA);
7. Development of draft national action plans to respond to key issues arising in TDA;
8. Incorporation of the national action plans into a region wide strategic action programme (SAP), including
financing plan;
9. Revision of national action plans in line with the regional SAP;
10. Implementation of initial elements in the SAP, including monitoring, strengthening monitoring and assessment,
training, establishing resource centers, awareness raising, strengthening NGO and NGO networks.
11. Conducting regional workshops to bring all the stakeholders together and to facilitate concerted action;
12. Establish communication and information technology systems;
13. Possibly, a small grants programme (SGP) will be developed to implement immediate priorities, and to support
NGO involvement in water quality improvement schemes in the region;
14. Strengthening of existing networks of NGOs, scientists, industrialists and agriculturalists.
Items 1,2,3 and 10 will build to a small extent on the work undertaken by USAID and EU/TACIS. Items 4 and 5 will
build more heavily on the work undertaken by USAID and EU/TACIS. Items 6, 7, 8, 9 and 11 will be fully funded
by GEF. Item 10, 12, 13 and 14 will be incrementally financed by GEF.
Additional sources of co-finances will be explored during the PDF stage and during full project implementation.
All activities will be undertaken in an iterative and participatory manner. This will ensure that feedback is
continually incorporated into outputs, that stakeholders in each country can influence, where appropriate, the
regional outputs, and will generate `buy-in' and commitment to the project.
10
Sustainability (financial, social, environmental) and replicability of the full project
The proposed project prepares a SAP and takes only limited direct action to improve water quality. Hence, the
project can only be considered sustainable if the SAP is successfully implemented and achieves its goals.
Regional government cooperation mechanisms will be established and agreements drawn up to ensure long-term
government commitment to the SAP. Project support to non-governmental networks (across the region and in each
country) will mean these networks can support implementation of the SAP. The SAP will be a comprehensive tool,
covering market and command/control instruments to change the behaviour of polluters and water-users in each
country. The SAP will focus on the underlying causes, not the direct threats. Financial constraints to implementing
the SAP will be assessed from the outset and ways to overcome them identified, including a financial strategy, with
possible financing sources identified and approached during preparation.
Partnerships and participation are key to successfully implementing the SAP. Key partners include all government
agencies, NGOS, scientific community, financial community (private and donor), other donors, GEF and all GEF
IAs.
11 Country
Eligibility:
All riparian countries are eligible for GEF support for International Waters. UNDP has a programme in each
country.
12
Stakeholders involved in project:
9
Success in a project of this nature depends on the full involvement of a broad group of actors. The project will
develop and adopt a fully participative approach. The process for preparing the TDA and SAP will generate this
participation. Other activities will also foster and benefit from this participation, such as the workshops and studies
to be undertaken. Finally, a section in the SAP will be devoted to assuring long term, broad participation.
The project will bring together representatives of the following institutions and organisations of the countries
concerned: relevant ministries and State committees and Departments and their local offices, Parliamentary
committees for environmental protection, Hydro-meteorological Departments, water users' associations, farmers,
representatives of Industries, Regional Environmental Centre (REC), NGO resource centres and NGOs,
representatives of the scientific community.
13
Information on project proposer:
The project proponents are the riparian governments of the Kura Aras Basin and all but Turkey have indicated their
abiding interest in working on the project. Signatures will be provided at PDF B submission stage, as is normal in
International Waters Projects.
The project will be implemented by UNDP and executed by UNOPS. OPS will assure neutrality, and
financial/administrative oversight. UNDP and OPS will together ensure appropriate linkages with related GEF and
other internationally supported projects, notably relations with the Caspian Environment Programme.
14
Financing Plan of Full project
GEF will finance most of the incremental costs of the project. All activities leading to the preparation of the SAP are
eligible for GEF support. However, even some of these activities will be co-financed by EU/TACIS and USAID
programmes.
- USAID/Strengthening Regional Sustainable Water Management in the South Caucasus. This $4mn project aims to
increase the quantity and quality of dialogue between countries in the region, notably Armenia, Azerbaijan and
Georgia. The activities and outputs are closely related to the outputs and objectives of the proposed GEF project.
Links between the two projects have already been established, and a draft MOU prepared. During PDF B stage,
these links will be deepened and areas of cooperation developed.
- EU/TACIS Joint River Management Programme on Monitoring and Assessment of Water Quality on
Transboundary Rivers. This 4mn project covers four rivers, including Kura. The overall objective of this Project is
to support the prevention, control and reduction of adverse transboundary pollution impact caused by the quality of
the four rivers selected for the Project. Although the focus is strongly on monitoring, the project will address related
legislative, institutional, economic and financial issues. Information generated and capacity built under this project
will be very closely related to the GEF project.
15
IA coordination and Linkages to GEF and IA programs and activities
Implementation of the SAP will require a variety of support measures and financial mechanisms. Accordingly, as
with other international waters projects, implementation of the SAP will rely on good coordination and cooperation
amongst the GEF IA and other donors. To ensure this, the IAs and key donors will be involved from the outset and
through the process to prepare the SAP.
In addition, the project will build on the institutional and informational basis of other regional GEF projects,
including:
- the MSP Arid and Semi-Arid Ecosystem Conservation in the Caucasus. This project involves Armenia, Azerbaijan
and Georgia, and aims to develop management plans for arid zones and develop demonstration pilot projects, in the
Kura catchment area. This project will generate information and data relevant for the national diagnostic analysis, as
well as provide model institutional arrangements at technical and decision-making levels.
10
- The Caspian Environment Programme (CEP). The CEP involves all countries along the Caspian and is supported
by several donors. It provides a strong information, data and technical base, which can be drawn on at both the PDF
and full project stages.
The proposed project will also be linked to the UNDP Georgia project "Capacity Building for the Ministry of
Environment".
In recent years, a broad body of experience and knowledge with preparing SAPs and enhancing regional cooperation
on international waters has developed, much of it through GEF support. The project will build on the experience and
findings of the GEF International Waters and other projects, particularly those involved in the preparation of SAPs.
16
Proposed project development strategy
A PDF B will be requested for the further development of the project. The PDF B will be implemented over 10
months, starting late 2001.
The PDF will: generate the detailed information needed to design the full project, including a preliminary TDA;
clarify fully the threats, underlying causes to water degradation, and the linkages; identify and cost-out the activities
in the full project; develop the institutional mechanisms to implement the full project; and prepare a stakeholder
participation plan.
It is anticipated that the full project brief will be submitted to GEF Council for review in late 2002.
17
Response to Reviews
No independent, formal reviews have taken place as yet.
ANNEXES
1. References
2. Maps of South Caucasus region
3. Matrix of Inter-Country projects related to water management in the South Caucasus region
11
Annex 1.1 Map of South Caucasus Region Showing Approximate Path of Kura and Aras Rivers
Arasa
12
ANNEX 1.1Map showing geographical features of the basin of Kura and Aras rivers
13
Annex 2 Matrix of Regional Projects Related to Water Management
South Caucasus
Development
2 years
USD 4m
Design and implementation of activities falling under three categories in
Regional Water
Alternatives,
(2000-
the Kura and Araks river basins: strengthening of legal and institutional
Management
Inc., Jim Wolf,
2002)
framework for transboundary management; improvement of
Project--USAID
Team Leader,
transboundary water monitoring capabilities; projects that will
946-444 (x 312)
demonstrate the benefits of inter-country cooperation.
Synergy--USAID Eurasia
began in
USD
Examples of robust 3-country cooperative efforts between NGO/private
Foundation,
1998
400,000
sector entities. Considering water management in early 2001.
George Zarubin,
923-728
Energy Linkages
Hagler Bailly,
Has a glacial melt rate component; Understanding of hydropower's role.
Project--USAID
Dean
White/Bidzina
Chkonia
TACIS Joint River
Early
1 mln
Overall objective is to support the prevention, control and reduction of
Management
spring
EUR (4 m
adverse transboundary pollution impact caused by the quality of the four
Programme--TACIS
2001 (2
EUR for
rivers selected for the project. The results will be used to recommend
years)
all four
modifications to the UN/ECE Guidelines for monitoring and assessment
basins)
of transboundary waters.
Regional
Nato Kirvalidze,
Chartered
Emphasis on capacity building and the development of regional
Environment Center
tel/fax 966-956,
1999
environmental cooperation. Objectives include increasing information
(EU-TACIS, USEPA)
877-418-171;
exchange between NGOs, governments, the scientific community and the
rec@caucasus.n
private sector, developing compatible environmental policy and strategies
et
among countries, and raising awareness about the environment.
Includes a grants program.
South Caucasus
Center for
26 mln for
Rural infrastructure rehabilitation, including irrigation; center to be
Highland and
Highland
Azerbaijan established in Azerbaijan (see Azerbaijan project matrix)
Mountain
Development--
, 23 mln
Development
Mr. Koba
for
Project--IFAD
Arabuli; 931-
Georgia
204;
arabuli@global-
ertl.net
Support for South
Markus Duerst
USD
Possible grant support to IFAD project
Caucasus Highland
253-682;
500,000
and Mountain
tblisi@edc.net
14
Development
Project--Swiss
Agency for
Development and
Cooperation
Arid and Semi-Arid
NACRES,
December
USD
The objective of this project is the protection of biodiversity in the arid and semi-
Ecosystem
Zurab Gurielidze,
1999; 24
750,000
arid zone in Eastern Georgia. The project is designed to ensure local land users'
Conservation in the
Levan Butkhuzi
months
(plus
participation in the design of alternative land uses, and their integration in its
Caucasus (CASEC)
Tel.: 8-99-56-80-
128,000 in implementation. The project will complement and enhance proposed protection
GEF/UNDP (grant)
32
kind)
activities in the target area and coordinate these with neighboring countries
Keti Chachibaia,
(Azerbaijan and Armenia) sharing sections of the ecosystem.
998-558
Biodiversity portfolio for
WWF-Georgia
1999-2000
80,000
Prioritization of activities in the region in biodiversity field. Completed.
the Caucasus
Nugzar
MacArthur Foundation
Zazanashvili
33-01-54
TEAP--TACIS
completed
Environmental
Awareness Project
Kura-Araks Coalition
NGO Little
1997
Coalition of NGOs from all three South Caucasus republics focusing on
Town--Gocha
the Kura and Araks basins. Conduct public awareness raising and
Dzamukasvili
monitoring.
(899) 572-143
Caucasus
DevTech
1999-2000 58,00
0
Promotion
of the regional environmental collaboration in the Caucasus by
Environmental NGO
Systems/
information exchange (monthly bulletin "Caucasus Environmental News" and list-
Network
Georgian Center
serves) and regional workshops in separate subjects.
USAID
for the
Conservation of
Wildlife
Peace Zone project--
Arzu
A project for a Peace Zone in the 'Red Bridge' area where Armenia, Azerbaijan
Helsinki Citizens'
Abdullayeva,
and Georgia meet. Local groups in the area will jointly campaign for a series of
Assembly
994-12-413676;
steps which could help to remove tension: - partial lifting of the Azerbaijan
assembly-
blockade on Armenia in the local Kazakh-Ejevan area - withdrawal of military
baku@azeurotel
forces to ten kilometres inside each country - de-mining - independent radio and
.com
television links between two countries - joint projects on infrastructure,
especially concerning water and agriculture - people-to-people contacts.
http://www.hca.cz/projects/baku.html)
Cooperative River
National
3 year
Pre-proposal has been submitted to NATO. Purpose of demonstration
Monitoring among
Academy of
project;
project will establish approximately 90 monitoring stations for collection of
Armenia, Azerbaijan,
Sciences
June 2001
limited data above and below major cities and farming, mining and
Georgia and the
(Armenia),
industrial areas on the Kura and Araks Rivers and their major tributaries.
15
US--NATO Science
Tbilisi State
This system will be developed cooperatively with scientists from Armenia,
for Peace Programme University
Azerbaijan, Georgia and the US, and with additional funding from the US
(Georgia), and
DOE.
Azerecolab
(Azerbaijan)
Italicized descriptions indicate that projects are in the conceptualization stage.
16
Document Outline