ANNEX 2 – Matrix of Regional Projects Related to Caspian Environmental Management

Title		Contact	Project life		Budget	Description
Conservation of Wetland Biodiversity in the Lower Volga Region Project		GEF/UNDP Russia	In PDF B. 2002		$ 430,220 for PDF B. No figure for full project	Just starting PDF-B phase; to conserve region's wetland and provide for their sustainable use through strengthened planning and management capacity; improved adaptive local and regional water management practices; strengthened legal and regulatory base and enforcement capacity; development of alternative livelihood demonstration projects ; improved awareness and establishment of a sustainable financing mechanism.
Kazakhstan Wetlands Conservation with the Ural River Component Project		GEF/UNDP Kazakhstan	2002-2009		$8.7 million for full project	To conserve selected wetlands including Ural river component . PDF-B complete; Project Brief under consideration
Conservation of Iranian Wetlands Project		GEF/UNDP Iran	In PDFB. 2002		Full project around $ 6/7 m	PDF-B nearing completion, Project Brief expected by end 2002. Aims at conservation and wise use of selected wetlands including Caspian connected Miankale.
Tacis Phase III CEP Project		Tacis/Brussels	Mid-2003 to 2005		4 million EUR
TACIS Joint River Management Programme--TACIS			Early spring 2001 (2 years)		1 mln EUR (4 m EUR for all four basins)	Overall objective 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. The results will be used to recommend modifications to the UN/ECE Guidelines for monitoring and assessment of transboundary waters.
Regional Environment Center (EU-TACIS, USEPA)		Nato Kirvalidze, tel/fax 966-956, 877-418-171; rec@caucasus.net	Chartered 1999			Emphasis on capacity building and the development of regional environmental cooperation. Objectives include increasing information exchange between NGOs, governments, the scientific community and the private sector, developing compatible environmental policy and strategies among countries, and raising awareness about the environment. Includes a grants program.
Yakhkesh Mountain Conservation		GEF/UNDP Iran	In PDF A. 2002		Full project $ 650,000	PDF A near completion. Project Brief expected by end 2002. Aims at safeguarding Yakhkesh Mountain ecosystem In the Caspian Province of Mazandaran
Community based Conservation of Traditional Waterfowl Trapping practices including Siberian Crane		GEF Small Grant Programme/UNDP Iran	Under implementation		$90,000	NGO executed project in Mazandaran to protect Siberian Crane
Prevention of Transboundary Degradation in Kura-Araz River Basin		GEF/UNDP Azerbaijan	PDF B in pipeline		$ 696,000 for PDF B. No figure available for the full project	Full project will aim at improvement in the quality of water and in water managements mechanism to meet the short and long terms needs of the ecosystem and to improve quality of water inflow to the Caspian .
Integrated Environmental Management in the Volga -Caspian Region		UNEP/CIP Russia	2002		No figure available	Project aims at development of a legal instrument s for protection of the Caspian Sea and for improvement in the aquatic ecosystem management
TEAP—TACIS Environmental Awareness Project			completed
GEF supported Enabling Projects in all five countries to develop Biodiversity Protection Strategies		GEF/CBD Convention Secretariat	Various stages		Close to & 1.5 million for all five	Projects assist the littoral countries to prepared National Biodiversity Reports and the National Biodiversity Protection Strategies.
Caspian Environmental NGO Network USAID		USAID	1998-ongoing			Promotion of the regional environmental collaboration in the Caspian area by information exchange (monthly bulletin “Caspian Environmental News”) and regional workshops on environmental topics.
Water Management in the South Caucasus .Phase II		USAID/DAI	2003		No figure available	Phase I concluded in April 2001. Present phase aims at implementing activities pertaining to the management of transboundary water resources in the Kura- Araz River Basin
Cooperative River Monitoring among Armenia, Azerbaijan, Georgia and the US—NATO Science for Peace Programme		National Academy of Sciences (Armenia), Tbilisi State University (Georgia), and Azerecolab (Azerbaijan)	3 year project; June 2001			Pre-proposal has been submitted to NATO. Purpose of demonstration project will establish approximately 90 monitoring stations for collection of limited data above and below major cities and farming, mining and industrial areas on the Kura and Araks Rivers and their major tributaries. This system will be developed cooperatively with scientists from Armenia, Azerbaijan, Georgia and the US, and with additional funding from the US DOE.
IMP and IS	WMO			$ 6 million			Improved hydrological data collection monitoring in the Caspian littoral countries
Azerbaijan Urgent Environmental Investment Portfolio	World Bank			$ 20 million			Strengthening environmental management ; soil clean up in selected areas and hatchery construction

Italicized descriptions indicate that projects are in the conceptualization stage.

ANNEX 3: Brief Summary of the Caspian Transboundary Diagnostic Analysis

The Caspian Sea Transboundary Diagnostic Analysis was produced based on outputs from the various CEP programme elements, including outputs from the Caspian Regional Thematic Centres, various special studies conducted by the CEP, from four regional workshops on the TDA, and from other available literature (such as private sector reports). The TDA process identified six major perceived problems and issues (MPPI), and two emerging ones. The existing MMPI included:

Decline in certain commercial fish stocks, including sturgeon

Degradation of coastal landscapes/damage to coastal habitats

Threats to biodiversity

Overall decline in environmental quality

Decline in human health

Damage to coastal infrastructure and amenities

The two emerging issues were:

Introduced species

Contamination from offshore oil and gas activities

During the conduct of the TDA, the Introduced Species emerging issue became more urgent as Mnemiopsis was observed in the Caspian Sea, as was predicted by early studies in 1994.

The TDA then performed causal chain analysis of the MPPI. Due to sparseness of data for several of the MPPI, the causal chain was more descriptive in many cases than quantitative. However, the causal chain analysis demonstrated that the various MPPI have common root causes that can be addressed by targeted interventions in the SAP. These root causes included general issues such as lack of policy basis for many environmental issues, lack of appropriate legal basis in some instances, lack of enforcement of existing laws/regulations in many cases, lack of adoption of important international environmental conventions, weak civil society (poor stakeholder participation, education, training), lack of political will to address environmental issues, and disagreements over legal status of the Caspian.

As part of the conduct of various studies and workshops, long lists of interventions were produced, with little structure to hold them together. Instead of an action programme consisting of interventions, the CEP had a laundry list. To provide some structure to these lists, the TDA took the step of determining over-arching policy-level Environmental Quality Objectives that would serve as prioritizing tools for the list of interventions. These EQOs focused on transboundary issues. Each EQO had a series of targets assigned to it. Each target was focused, had a 5-10 year time frame assigned to it, and had a defined process indicator. However, targets are results, and so each target was populated with a series of well-defined interventions that would be necessary to achieve these targets (and hence the EQOs, on a longer time frame). Interventions included identification of national and transboundary character, type of intervention (for convenience, interventions were classified as policy/legal, capacity building, institutional strengthening, scientific investigation, data management, investment, etc.). Each intervention was also costed.

The five agreed EQOs were:

Sustainable economic uses of the natural resources of the Caspian Sea

Balanced Caspian Environment including biodiversity conservation

High quality of Caspian Sea, surface, and ground waters

Sustainable multiple use of the Caspian Coastal Environment

Strengthened civil society for purposes of environmentally sustainable development

The TDA also included a detailed Stakeholder Analysis. This analysis was a critical component of the TDA process, as it not only identified the major stakeholders and their interests for each MPPI and each root cause, but it also identified potential stakeholder conflicts that may arise when the MPPI are addressed. By identifying conflicts early, the Stakeholder Analysis allowed the CEP to craft interventions that would have the greatest potential for being able to be implemented, rather than simply blocked due to strong stakeholder interests.

The output from the TDA then consisted of an improved understanding of the major transboundary issues, which can be summarized as:

Loss of biodiversity

Pollution by POPs (particularly chlororganic pesticides) and some heavy metals

Introduced species

Decline in fisheries

The TDA produced a Preliminary SAP, which was organized along the lines of EQO/ target/ intervention. This Preliminary SAP is taken as the technical expert basis for preparation of NCAPs, and ultimately the SAP.

ANNEX 4: Structure and Components of NCAPs/SAP

Structure and Components of the

Strategic Action Programme (SAP)

The Strategic Action Programme will include a set of actions ---legal, policy and institutional reforms, and investments --- agreed to and committed to by the littoral states to address the priority transboundary problems of the Caspian Sea in an effort to protect the Caspian environment and manage its bioresources in a sustainable manner.

The SAP will draw on two main sources: the Caspian Sea Transboundary Diagnostic Analysis and the National Caspian Actions Plans. The SAP is being produced through a fully participatory consultative mechanism which will include two regional meetings tentatively planned for May and September 2002, building on previous meetings during which the SAP was discussed.

The main components of the SAP will be :

Part 1: Principles, policy direction and implementation mechanisms

Part 2: Summary of agreed priority environmental threats

Part 3: Environmental Quality Objectives and targets

Part 4: Agreed regional interventions to be undertaken in the first five year period

Interventions

Responsiblities of the parties

Support mobilization strategy

Monitoring and evaluation

Part 5: Proposed interventions to be undertaken in second five year period or accelerated as resources allow.

Interventions

Responsiblities of the parties

Support mobilization strategy

Monitoring and evaluation

Provisional SAP Structure and Components

EQO	Targets		Interventions	Estimated Cost in U.S. $	Type of Intervention	Indicators
I- Sustainable economic uses of the natural resources of the Caspian Sea	1- To reduce the oil & gas related pollution of the Caspian		-Development and endorsement of Protocols on higher environmental standards including minimum emission standards for both onshore and offshore exploitation and exploration activities, new licenses and PSAs by 2003 -Development and endorsement of Protocols on reduction of oil emissions from old installations to half of current value within 10 years -Development and endorsement of national and regional oil pollution emergency plans for ships and offshore units as well as for sea ports and oil handling facilities, including:	$ 500 K	Legislative / Regulatory at regional and national levels
			-improvement and/or de-commissioning of obsolete non-competitive on shore and offshore installations including storage facilities to ensuring elimination of their emissions -oil contaminated oil cleansing projects -protection of oil /chemical facilities under potential threat of inundation - investment towards implementation of national and regional oil emergency plans	$ 10s millions	Investment mostly at national level
			-development of monitoring and early warning system for water level rise or surges to protect facilities and installations - human resource development activities to enable region effectively implement and enforce related regional protocols	$ 1 million $ 500k	Institutional Strengthening/capacity building at both regional and national levels
	2- To ensure safe transportation for hydrocarbons and other raw materials		-development and endorsement/ accession to protocols pertaining to tanker fleet and all other shipping safety -regional agreement on minimum standards for construction and maintenance, and national licensing mechanisms for undersea pipelines	$ 200k	Legislative / Regulatory at regional level
			- establishing of a coordinated safe system of navigation and shipping control (navigation aids, buoys, lighthouses, etc.)	None available	Investment both at regional and national levels
			- risk assessments studies on means of transport	$ 1 million	Scientific investigation
	3- To abate the impact of agriculture on ecosystems of the Caspian Sea		-development and endorsement of agreement on a list of banned agrochemicals and a program to destroy stored banned products -delimitation of constrained chemical coastal zone around the Caspian Sea within which special limits are established for use of agrochemicals - regional agreement on extraction of river water and control of river flow	$ 200k	Legislative / Regulatory
	4- To ensure sustainable use of aquatic resources , with emphasis on fisheries		-Establish a five-country Commission on the management of bioresources that should include as priorities the establishment of a common Caspian-wide scientific network for all shared (migratory) bioresources and ecological problems; an agreed methodology for distributing the total allowable catch between five countries as annual catch and export quotas; an interstate Caspian Fisheries Inspectorate to verify fisheries and restocking, reporting to Commission (composition: one member of each Caspian State + international observer); and uniform methodology for pollution monitoring and its effect on aquatic organisms.	None available	Legislative / Regulatory at the regional level	Aagreement by June 2002 (deadline set by CITES parties)
			-strengthen and establish a formal system for co-ordination between national fisheries protection organizations to provide adequate compensation to the enforcement officers for their work and to provide equipment to efficiently fight poaching.	$ 10s millions	Institutional Strengthening at regional and national levels
			-identify, protect and manage natural spawning grounds and improve their accessibility through research, public awareness and improved management -Develop adapted environmentally sound fish farming projects -Purchase a Caspian Sea international research vessel for joint assessment of fisheries and biodiversity resources, hydro-biology as well as pollution.	$ 10 millions	Investment At national levels
			- Undertake research on the importance of kilka in the food chain of Caspian aquatic species in order to establish multi-species based catch quotas. -Study genetic variability at population level, particularly for sturgeon and establish a gene-bank conservation laboratory	$ 300k	Scientific investigation at regional and national levels
	5- To ensure sustainable use of rivers and freshwater		- Manage water release from hydro-electric dams in accordance with natural needs, particularly seasonal anadromous fish migration.	$ 100k	Institutional Strengthening & Legislative / Regulatory at national and regional levels
			- Manage water intake for agriculture and other uses (e.g. industry and urban consumption) in order to maintain river water level and prevent detrimental impact on the ecosystem, e.g. planktonic production and fish migration behaviour.	$ 100k	Institutional Strengthening & Legislative / Regulatory
			- Use of economic instruments to rationalize water supply systems, including metering equipment and review of pricing system, for agricultural, industrial and domestic use	$200 million in each country	investment
II- Conservation of Caspian Biodiversity	1- Development and implementation of a strategy for the protection of Caspian biodiversity				Policy	Strategy developed by 2002 and implementation by 2005
			-. Implement Biodiversity Strategy, including specie(s) specific action plans	$1,000,000	Institutional Strengthening
			-Draft and acceptance of a biodiversity protocol to the framework convention	$100k	Legislative / Regulatory
			- Development of guidelines on economic evaluation/compensation for loss of biodiversity by 2005	$50k	Scientific Investigation
	2- Establish a network of designated areas around the Caspian and coastal		- Regular regional meetings of protected areas managers to enhance coordination, discuss common issues, create Website and to arrange for the training including eco tourism training	$ 400k	Institutional Strengthening	Network established by by 2005
	3- prevention of adverse human activity on sensitive areas		-. Evaluate sensitivity of areas and habitats in the Caspian region including anthropogenic and natural factors impact; develop sensitive areas action plans and maps and make recommendations for location and level and of legislative protection required.	$ 500k	Institution strengthening
	3- prevention of adverse human activity on sensitive areas		-Make recommendations for adoption of E Spoo Convention and regional EIA procedures to strengthen national legislation	$50k	Legal/regulatory
	4- A biodiversity monitoring system based on a set of regional monitoring protocols		-Develop a set of monitoring protocols for the Caspian and develop and implement biodiversity monitoring national programs in the coastal waters and areas of each riparian country -Create Caspian Biodiversity Data Base inclusive of a complete check-list of species, specific Caspian identification, and a reference collection in the regional biodiversity centers -Develop specific biodiversity monitoring and conservation programme for endangerous species (see target 1) -. Establish a bio-molecular laboratory as part of the Regional Biodiversity Center to investigate genetic biodiversity - Organize two cruises to assess the biodiversity of the deep part of the middle and southern sectors of the Caspian Sea - Develop public monitoring programmes for the flagship species (Caspian seal, Mnemiopsis leidyi)	$ 2 Millions $ 400k $ 1 Million $ 2 Million $ 300 k $ 100k	Institutional Strengthening/ Scientific Investigation
	5- Increase public awareness of the value of the Caspian Sea biodiversity		- Dissemination of information on biodiversity in the Caspian; promotion of eco-tourism and sensitization of decision makers to biological diversity protection to be linked to overall public awareness campaign (see EQO V)	$200k	Institutional Strengthening
	6. Establish inter-governmental mechanisms for rapid response to non-oil emergency events affecting Caspian biodiversity (mass mortality events, etc.) 2005		-. Identify in each country a responsible body or person for rapid response on the Governmental level; establish lists of rapid response regional experts; create and fund rapid response activities and a governing body for its management	$ 400k	Institutional Strengthening
			- develop and adopt intergovernmental agreement on rapid communication, data access and sampling including Aarhus	$ 100k	Legal/regulatory
	7- Establish control system for the import and export of exotic species into and from the Caspian Sea		Develop protocol to the framework convention on control of introduced new species	$100	Investment
			Construct a ballast reception and inspection facility in Astrakhan	$1 o Million
			- As part of the Invasive species action plan implement special studies and monitoring program for invasive species in the frame work of biodiversity monitoring - Establish a regional inter-governmental body to review planned introduction of new species	$500k	Institutional Strengthening / Scientific investigation
			- In conjunction with Globalast update maritime legislation to reduce cost of control of invasive species	$100	Legislative / Regulatory
III- High quality of Caspian Sea, surface and groundwaters	1- Regionally agreed water quality objectives and recommended standards	- Develop protocol to the Framework Convention on in connection with land-based activities -Develop and obtain regional agreement on EQOs/EQSs for river water, sediment, and biotaquality improvement in the Caspian Sea -Develop regional standards for the outfalls that directly discharge to the Caspian Sea -Develop regionally agreed guidelines both for compliance and ambient monitoring programmes, including design, in-situ measurements, sampling, sample handling, analysis, quality control/quality assurance, and reporting		$ 300 k	Legislative / Regulatory & Scientific Investigation	Protocol by 2003 Agreed EQOs/EQSs by 2003
		-Regional reviews of solid waste disposal, sewage collection and treatment and waste water systems in particular in those areas having transboundary problems to identify of appropriate technology for disposal and management in the region, and implement pilot projects.		$ 400k	Scientific Investigation	Review completed by 2004
	2- Regionally coordinated compliance and ambient monitoring program for trends in place	- Prepare and implement an Environmental Rapid Assessment Programme in the Caspian Sea using biomarkers - Prepare and implement a programme for determination and management of land-based point and non-point pollutant sources -prepare and implement programme for groundwater quality compliance - Establish new coastal laboratories or improve existing coastal laboratories responsible for monitoring in the littoral states -Develop and implement project investigating the distribution and fate of contaminant using isotopic and nuclear techniques by 2004 -Planning and conducting basin wide cruise (one in first 2years) investigating on major oceanographic and contaminant status of the Caspian Sea By 2004		$ 1 Million	Institutional Strengthening	Programmes in place by 2008
	3- Regionally agreed Plan of Action for land-based activities to meet water quality objectives	-Develop and establish national/regional land-based activities data and information management system as a tool for contaminant assessment and management -Conduct a study on training needs, capacity building, and institutional strengthening in the environmental organizations and industries -Develop Environmental data and Information Data base for the free and regular exchange of same within the region		$250K $500k	Institutional Strengthening	A regional Plan by 2005
IV- Sustainable multiple use of the Caspian coastal environment	1- Improved Coastal Spatial Planning	-In line with Regionally agreed Planning Guidelines develop /revise and nationally adopt national legislation on coastal zone planning and management. -Development of regionally agreed EIA guiding principles as Protocol to the Framework Convention .- Review and propose revisions for national legislation on protected areas to establish objectives for minimizing coastal degradation in sensitive areas and to permit environmentally friendly wise uses of the protected areas including eco-tourism activities		$500k	Legislative/ Regulatory
	1- Improved Coastal Spatial Planning	-Develop Data base for environmental, socio-economic, sea- and land-use, and related information and produce GIS maps of same -Develop and implement comprehensive national Caspian spatial plans for major human settlements to minimize environmental impacts, improve future citing of industrial areas, agricultural and urban development - Develop proposal for establishment of the Standing Committee on coastal zone planning and management		$ 200k for data base, $ 1 million for each Caspian Spatial Plan	Institutional strengthening
	2- A “green” belt for coastal eco-tourism will be established around the entire Caspian Sea	-Commission an independent feasibility study of the “green” belt concept; establish a regional “green” belt working group to review national coastal eco-tourism proposals and recommend alternatives, develop a management framework, and identify regional financial mechanisms -Each country will propose locations for eco-tourism centers; attract required investment through various means; start establishment of the green belt through development of eco tourism pilot projects on the Caspian coast to include activities aimed at attracting regional and international visitors e.g. aquatic parks		$1.175 million	Institutional Strengthening	Green belt established by 2007
	3. Improved inundation and surge coastal preparedness	-Develop programme for regionally coordinated collection and analysis of oceanographic information including information on climate and hydrology. -Develop Protocols on exchange of oceanographic information		$75k	Legal/regulatory	Protocols in place by 2004
		-Develop and demonstrate mitigation measures to reduce negative impacts of natural hazards including water level fluctuation, storms, surges, and earthquakes human and natural habitats and infrastructure of the coastal zone		$ millions	Investment
		- Establish a regional working group, including private and public sectors, to provide recommendations on coastal planning zones		$ 50k	Institutional Strengthening
	4 – Improved land degradation control	- review and assess regional trends of land degradation including deforestation, review root causes including social, economic factors and develop community based land degradation control programmes in coastal areas		$ 200k	Institutional Strengthening	Reduce rate of loss of land due to technogenic desertification by 10% by year 2007
		-develop and implement land degradation control, and floods management pilot projects in coastal areas - design and implement river basin and watershed management programmes		$ millions	investment
		- Establish legislation to reduce rate of deforestation, based on economic incentives and disincentives littoral countries		$ 100k	Legislative / Regulatory &
V- Civil society oriented Environmental Sustainable Development	1- integration of environmental considerations in local, national and regional development strategies	- Creation and implementation of environmental awareness training program for policy makers, planners, and development project managers to be administered to regional and municipal governments throughout the region. To begin implementation by 2004		$500 k	Institutional strengthening	Implementation to start by 2004
	2 - enhanced and informed stakeholders participation in the development process	- development and national adoption of legislation to require broader civil society, including Stakeholder Participation		$500k	Legislative/ Regulatory
		Strengthening national NGOs and civil society movements focusing on environmental awareness and sustainable development components of developmental processes by 2003 --Community driven development: Empower local authorities including collaboration among cities and local scale activities -Enhance participation of media (in particular regarding environmental issue reporting) by 2002 Public-private partnerships for environmental monitoring and public awareness		$500k $500k $500k	Institutional strengthening
		-Pilot Small Matched and Micro Grant projects on Caspian private/public sector coordination to increase environmental monitoring and development in region by 2005		$ 1 Million	Investment
	3- Enhanced environmental skills and knowledge	-Develop Caspian-conscious school Curricula -identification of environmental training needs in the Caspian region and development of a training and re-skilling programmed -Student exchange programme across the Sea		$ 200K	Institutional strengthening
	3- Enhanced environmental skills and knowledge	-creation of Caspian Environment Education and Training Centre		$ 1 Million	Investment
	4. Improved human health conditions	-develop and adopt national standards for recreational and underground waters		$ 200k	Legal /regulatory
	4. Improved human health conditions	-develop and implement programmes to ensure compliance with standards - assess human health conditions in Caspian coastal areas and compile a Caspian Health Atlas		$ 1 Million	Institutional strengthening

	Azerbaijan	I.R. Iran	Russia	Kazakhstan	Turkmenistan
Climate Change	y	y	y	y	y
Kyoto Protocol	y				y
Desertification Control	y	y		y	y
Prior Informed Consent
Vienna Convention	y	y	y	y	y
Montreal Protocol	y	y	y	y	y
Basel Convention	y	y	y		y
Bonn Amendment
Biological Diversity	y	y	y	y	y
Biosafety Protocol	y	y	y	y	y
CITES	y	y	y	y	y
Agreement related to Conservation of Highly Migratory Species		y	y
Ramsar Convention on Wetlands	y	y	y
World Heritage Convention	y	y	y	y	y
Conservation of Migratory Species
EIA in a Transboundary Context ( Espoo)	y		signed	y
Convention on Access to Information (Aarhus)	y			y	y

ANNEX 2 – Matrix of Regional Projects Related to Caspian Environmental Management

Structure and Components of the

Targets

Interventions

Estimated Cost

Type of Intervention

Indicators

1 Introduction

2 National Framework

3 Significance of the Caspian to the Nation

4 Major problems and issues and their root causes

5 Strategies and Actions

6 Potential barriers to success and ways to overcome them

7 Resource Mobilization Strategy

8 Mechanisms for Action