*

Financing Plan ($)
	PPG	Project*		Total
GEF	296,940	5,000,000		5,296,940
Co-financing:
GEF IA/ExA	127,000	8,000,000	17,127,000
Government		1,000,000
Others		8,000,000
Co-financing Subtotal	127,000	17,000,000	17,127,000
Total	423,940	22,000,000	22,423,940

A - Project Summary

This proposed project is being submitted as the first subproject for funding under the Strategic Partnership for Fisheries in Africa since it was approved by the GEF Council in November 2005. Under this Strategic Partnership framework, subprojects will be developed to meet the overall objectives of the Partnership. As such, the Partnership Brief approved by the GEF Council included as an annex a draft of the concept for this project, serving as a model for the Council of the type of subprojects to be funded by the Strategic Partnership in order to meet the Partnership's objectives. The concept has been further developed by the Government since that time, and presented in May 2006 by the Director of the Department of Marine Fisheries in Senegal to the first meeting of the Strategic Partnership Regional Advisory Committee (RAC), chaired by the African Union. The concept was approved by the RAC, and is now being submitted for funding under the Strategic Partnership.

The proposed GEF project has been designed to complement the ongoing Senegal Integrated Marine and Coastal Resources Management Project (GIRMaC). The rationale behind developing this proposed project, (entitled 'Sustainable Management of Fish Resources') in conjuction with the GIRMaC is the opportunity to: (i) enable the Government of Senegal to implement the significant policy shifts in the management of the fisheries sector that have been initiated with the support of the GIRMaC, by working with other donors to assist the Government to implement the Fisheries Sector Policy Letter currently being completed, as well as the President’s Directive in 2005 for the establishment of a national network of marine protected areas (MPAs), and (ii) to expand the scope of the pilot projects initiated under the GIRMaC.

More specifically, as reflected in the forthcoming Fisheries Sector Policy Letter, the GIRMaC has helped institutionalize a policy of ‘co-management’ of artisanal fisheries resources, where the Government devolves some of the management responsibility for the resources to the fishers themselves. At the same time, the GIRMaC has also helped ensure that strengthened resource management in order to rehabilitate depleted fish stocks is a core objective of the Government’s sector policy. In addition, since the inception of the GIRMaC, the President issued in 2005 a Directive for the establishment of a national network of MPAs, in order to help rehabilitate fish stocks. This Directive and the MPA network are included in the Government’s strategy in the draft Fisheries Sector Policy letter, and the proposed project would assist the Government to implement this Directive. Lastly, each of the first four pilot communities of the GIRMaC have already demonstrated that local fishers’ groups can and will submit management proposals for local resources, and this proposed project would build upon these experiences and lessons in order to replicate them more widely throughout the country. Thus the GIRMaC project, and more specifically Component I of the GIRMaC, has well completed the groundwork for the additional components and activities proposed by this GEF project to mainstream sustainable co-management of fisheries resources in Senegal by the fishers themselves.

Based on this rationale, the proposed GEF project would provide support to finance additional components to the ongoing GIRMaC, to leverage the impact of that project more broadly. Currently, the GIRMaC includes the following components: 1) Management of Sustainable Fisheries (US$6.0 million IDA); 2) Conservation of Critical Coastal Habitats (US$0.5 million IDA, US$5.0 million GEF); and 3) Program Management, M&E and Communication (US$3.5 million IDA). The proposed GEF project would finance the following four additional components to the GIRMaC, all of which would be linked to, and co-financed by, the US$6.0 million IDA Component I for Management of Sustainable Fisheries:

Component 1. Sustainable management of small-scale fisheries

This component would seek to implement a sustainable management system for small-scale fisheries in Senegal, based on the experience gained through the GIRMaC. This component of the GEF project would likely include the following activities: (i) Replicate, in other small-scale coastal fishing communities, the local co-management schemes, such as the Local Small-Scale Fishery Committees (CLPA), tested in GIRMaC’s three pilot areas; (ii) Continue and expand the support provided by the Swiss Government and GIRMaC for the pirogue registration scheme; and (iii) Step up Government and coastal community participation in the co-management of coastal demersal stocks and the small-scale fisheries that exploit them in the Canary Current Large Marine Ecosystem to ensure that efforts are based on Large Marine Ecosystem management principles and to promote bilateral agreements with neighbouring countries on fisheries and shared stock management measures.

Key GEF Outputs include: the expansion of community-based co-management schemes to at least four new pilot sites, including the implementation of use rights for the related fisheries, and the implementation of a nation-wide registration scheme.

Component 2. National Marine Protected Area Network (MPA)

In the wake of recent directives issued by the President of the Republic, this component would seek to establish a national marine protected area network to protect essential habitats, such as the breeding and rearing areas of coastal demersal species, as part of the national fisheries management system. This component would likely include the following activities: (i) Support the establishment of a MPA network in Senegal in an effort to protect and restore coastal demersal fisheries, and would include the establishment and delimitation of the areas using a participatory approach involving the fishing communities; (ii) Include the MPAs in the fisheries management plans for neighbouring production areas (i.e. areas where fishing is allowed) in conjunction with the CLPAs; and (iii) Where appropriate, support the construction of man-made reefs, based on good practices.

Key GEF Outputs include: the identification and establishment of at least 5 new marine protected areas in Senegal, aimed at fisheries management and fish stock rehabilitation.

Component 3. Industrial fisheries management

Because industrial fishing activities in Senegal have a major impact on small-scale fisheries and coastal demersal fish stocks, this component would seek to strengthen the links between industrial and small-scale fisheries, and ensure that industrial fisheries do not damage the habitats and stocks targeted by the small-scale sector. This component would likely include the following activities: (i) Develop and implement, in conjunction with the players concerned, a responsible code of conduct for industrial fishing; (ii) Promote and disseminate sustainable catch methodologies and technologies, such as those that help reduce by-catches, and the use of traditional catch techniques; and (iii) Establish an information system to monitor the landings of the coastal demersal industrial fleets.

Key GEF Outputs include: the development of a code of conduct for industrial fishing, and the implementation of at least one type of by-catch reduction device in the industrial fishing fleet.

Component 4. Sustainable funding for fisheries management

This component would seek to ensure that the results achieved by the GIRMaC and this proposed GEF project would be sustainable in the long term through the use of a sustainable funding mechanism for the co-management of small-scale fisheries and the protection of essential habitats. This component would likely include the following activities: (i) Establish a sustainable fisheries management support fund in order to provide support for the costs of the public sector, fishers and communities in managing the resources; and (ii) Put in place an environmentally-friendly labelling system for sustainable products, including the promotion of good practices and support for cost-effective product management and promotion, in order to facilitate the support of the private sector in managing the resources. This activity would also include a feasibility study for a system to encourage the adoption and promotion of sustainable practices, including technologies that would protect the marine environment and biodiversity.

Key GEF Outputs include: the establishment of a fund to support sustainable fisheries management costs, and the certification of one fishery for environmentally-friendly product labels.

These four components of the proposed GEF project, in addition to being closely linked with Component I of the GIRMaC, would also utilize the existing GIRMaC project management infrastructure (financed by US$3.5 million IDA). The proposed GEF project has been designed to accomplish in part the larger results indicator targets of the Strategic Partnership logframe, including: (a) implementation of 5 country-level programs to enhance sustainable fisheries management by 2010, and (b) implementation of 4 pro-poor sustainable fisheries initiatives and policy adjustment programs in order to implement the Code of Conduct for Responsible for Fisheries by 2010.

The PCN for this GEF Project was approved by the World Bank Country Director for Senegal on July 24, 2006. The Government has prepared a PDF B request to support the detailed design of the above four components, including performance indicators for results monitoring. The key outputs from this PDF B request would be: (a) workshops, consultations and evaluation reports for identifying the sites for replication of co-management schemes introduced under the GIRMaC; (b) preparation of an inter-ministerial decree as a legal basis for the establishment of MPAs as tools of fisheries management; (c) an evaluation of experiences to date in Senegal with MPAs; (d) the consultations and evaluations necessary to identify the sites for establishment as MPAs under the project; (e) the identification of fisheries by-catch reduction technologies for implementation with project support in selected fisheries; (f) a feasibility study for the establishment of a long-term fund for supporting sustainable fisheries management in Senegal; and (g) the identification of one fishery to apply for certification from an environmentally-friendly labelling system.

B – Project Objective

The combined development objective/global objective for the proposed GEF project is to empower small-scale fishers to sustainably co-manage the coastal fisheries resources and, conserve the key habitats that support these resources.

The objective will be accomplished through (i) extending the partnerships formed between fishing communities and the Government in the ongoing GIRMaC project to small-scale fishers throughout the country, (ii) working with fishers and the Government to implement the President’s Directive to establish a national network of marine protected areas, (iii) improving the management of the industrial fisheries that often compete with small-scale fishers for the coastal resources, and (iv) establishing a long-term financing mechanism to support the resource management investments necessary to rehabilitate the coastal fisheries resources and ensure they remain healthy enough to support a large number of coastal livelihoods and contribute to the national economy far into the future.

C – Priority threats/root causes and barriers to be addressed

Despite the economic importance of Senegal’s fishery resources and the marine ecosystems that support them, the sector has been facing major difficulties in recent years due to overfishing of the most valuable commercial resources and uncontrolled expansion of the number of fishers, boats and gear, as well as land-based fish processing and preservation facilities. The sector has essentially faced the ‘boom and bust’ cycle common to many uncontrolled common property fisheries around the world, where rapid development and investment led to strong growth in catches and returns, as well as the number of fishers and fishing capacity. Then as the fisheries continued to grow in an uncontrolled environment beyond what the fish stocks and resource base could sustain, they started to contract, bringing down catch and growth rates.

In Senegal, fisheries production rose steadily until 1985, when catches began to level off and landings began to decline. Since then, small-scale fishing effort has continued to increase, although the number of industrial vessels has remained stable. Essentially, these small-scale vessels have continued to proliferate even as fish stocks and catches have declined, due in part to rising world prices and demand for food fish which helped offset declining catch rates, and by vessels going farther and farther up and down the coast of West Africa in search of fish, or constantly replacing overfished higher value species for lower value ones (i.e. ‘fishing down the food chain’).

The result of this uncontrolled growth in the small-scale fisheries is that many of the highest value coastal demersal stocks have been almost wiped out. According to a recent World Bank sectoral study (ESW) in 2004, these coastal demersal stocks were the most heavily targeted and are now in rapid decline throughout the country, and as a result the fisheries which rely on them (mainly the small-scale sector) are struggling. This is of significant concern because these coastal demersal species usually account for more than 25 percent (in volume terms) of the country’s total catch, and more than 50 percent of the total value of fishery exports.

The impacts of these problems on coastal rural poverty in Senegal, as well as food security and macro-economic growth are significant. The resource base for the fisheries which account for roughly a quarter of the volume of fish caught in the country by the some 52,000 people directly employed by the small-scale fisheries (and likely benefits a large portion of the some 600,000 people indirectly employed in the sector) and 50 percent of the value of fish exports, is heavily overfished and facing a collapse. As this resource declines, the costs for the thousands of small-scale and often rural fishers to continue to participate in the sector will only increase, and the costs of relocating or shifting into new careers will certainly have profound social impacts along the coast, as will the reduction in one of the country’s largest exports

D – Global environmental benefits expected

Senegal is part of the Canary Current Large Marine Ecosystem, one of the five targeted LMEs of the Strategic Partnership for Fisheries in Africa, which possesses ecosystems and habitats that support some of the most significant fish resources and fisheries in the world. This proposed GEF project would support the co-management and conservation of globally significant coastal ecosystems that are essential for the healthy functioning of the Canary Current Large Marine Ecosystem, as well as for Senegal's transboundary small-scale fishers. This is expected to contribute to achieving the global WSSD targets for sustainable fisheries and poverty reduction to which the Strategic Partnership responds, as well as to the enforcement of national and international laws and regulations with regard to fisheries and the ecosystems that support them in Senegalese waters.

These global environmental benefits expected from this proposed GEF project would also include supporting the Government of Senegal to implement a national network of marine protected areas that can protect globally significant fisheries habitats and fish stocks of the country, in order to help achieve the global WSSD targets for coverage of MPAs. In addition, the project will interact with and learn from other partners in the Strategic Partnership, including GEF/World Bank support to Tanzania (MACEMP), as well as the GEF-supported Canary Current Large Marine Ecosystem Project (CCLME).

E – Fit with focal area strategy

The proposed project is in line with the GEF Focal Area Strategy for International Waters for GEF 4. Specifically the project fits with the Strategic Objectives 1 and 2 in the focal area of international waters, i.e. to catalyze implementation of agreed reforms and on-the-ground stress reduction investments to address transboundary water concerns; and to expand foundational capacity building to a limited number of new transboundary systems through integrated approaches and foster replication through targeted learning for the IW portfolio. More specifically, the project will enable the country to work together with artisanal fishers to implement fisheries and habitat management reforms such as co-management plans and marine protected areas, that will allow the country to address the overexploitation of both transboundary fisheries and fish stocks. The results of these impacts will be communicated by the Strategic Partnership for Fisheries in Africa, through the African Union, to decision-makers and stakeholders throughout the continent as a model for stakeholder-led implementation of the WSSD targets for sustainable fisheries and transboundary water concerns.

F – Potential risk And mitigation

The following key problems are seen as potential risks. The nature and magnitude of risks and their mitigation strategies will be revisited during preparation stage and refined as necessary.:

(i) The Government is not able to achieve a consensus on the strategy and action program for the sector that will be included in the Fisheries Sector Policy Letter. Currently, the Government has completed a first draft of the Letter and shared it with donors for comments. A workshop was held with donors in December 2006, but there is still a risk that a consensus will not be reached and the Letter will not provide the clear strategy and action program currently envisaged. Based on initial drafts of the Letter, this risk is considered low, and the proposed project would likely make satisfactory completion of the Letter a condition of Appraisal.

(ii) Any fishing capacity reduction activities undertaken by the proposed project or co-financiers are undermined because of a lack of alternative livelihoods available for fishers. This risk is considered significant, as fishers, particularly youths, will not leave the fisheries without alternative livelihood opportunities, despite the availability of buy-back schemes or other capacity reduction instruments. While the GEF funds are not envisaged for capacity reduction activities (although co-financiers may do so), the proposed project will mitigate this risk by linking with other World Bank and donor-financed projects in parallel in rural coastal areas that are focused on creating job opportunities, in order to link with alternative livelihood programs.

(iii) The fishing capacity of the industrial fleet and the influence of foreign fleets have not been reduced and are having a negative impact on coastal demersal stocks. This risk is considered significant, and for this reason the proposed project includes a component targeted towards including the industrial fisheries in the co-management process for the coastal fisheries, in partnership with the European Union. .

G – Additional comments

1) Estimated PDF Management Budget (if planned)

Component	Estimated Staff weeks	GEF($)	Other Sources ($)	Project Total ($)
Locally Recruited Personnel	30	20,000	5,000	25,000
Internationally recruited consultants		10,000		10,000
Training
Office equipment			5,000	5,000
Travel
Miscellaneous
		30,000	10,000	40,000

2)- Timetable for the project

	PDF		Project
	Start Date	Completion Date	Start Date	Completion Date
Implementation	January 2007	August 2008	September 2008	September 2011

Proposal submitted for funding to		GEF Trust Fund		($000)
		SCCF Trust Fund		($000)
		LDC Trust Fund		($000)
GEF Program Manager	(name)		Review Date
GEF Team Leader	(name)		Clearance Date
	Yes	No	Signature
	Feedback:
GEF CEO	Yes	No	Date
			Signature
	Feedback:

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