PROJECT BRIEF
1. IDENTIFIERS:
PROJECT NUMBER:
PROJECT NAME:
IMPLEMENTATION OF INTEGRATED
WATERSHED MANAGEMENT PRACTICES FOR
THE PANTANAL AND UPPER PARAGUAY RIVER
BASIN.
DURATION:
2.5 years
IMPLEMENTING AGENCY:
UNEP
EXECUTING AGENCY:
OAS
Secretaria de Recursos Hidricos (SRH) do
Ministério do Meio Ambiente, dos Recursos
Hidricos e da Amazonia Legal do Brasil
(MMA)
REQUESTING COUNTRY OR COUNTRIES:
Brazil
ELIGIBILITY:
Eligible under paragraph 9(b) of the
Instrument.
GEF FOCAL AREA:
International waters with relevance to the
cross-cutting area of Land Degradation
GEF PROGRAMMING FRAMEWORK:
OP 9 Integrated Land-Water Multiple Focal
Area
2. SUMMARY: This project catalyzes implementation of a detailed watershed management
program for the Pantanal and the Upper Paraguay River Basin. Project activities will enhance
and restore the environmental functioning of the system; provide protection to endemic
species within the wetland; and implement strategic activities, identified in the World Bank-
financed PCBAP program, that address the root causes of degradation. These actions with
incremental costs will complement basin-scale interventions by the Government of Brazil,
financed in part from national and state sources and by international loan funding, and sub-
basin scale activities conducted under the World Bank-UNDP PRODEAGRO program, many of
which address expected baseline activities. Strengthening of basin institutions, building of
agency and organizational capacity, and integration of environmental concerns into economic
development activities on a sustainable basis are the key elements of this project.
3. COSTS AND FINANCING (MILLION US):
GEF:
-Project
US$ 5.879 million
-PDF-B
US$ 0.286 million
-Project Support Costs
US$ 0.4 million
-Monitoring/Evaluation
US$ 0.05 million
Subtotal GEF:
US$ 6.615 million
C O-FINANCING:
-UNEP
US$ 0.175 million
-WB (PRODEAGRO loan)
US$ 0.27 million
-WB (PROAGUA loan):
US$ 0.98 million
-OAS
US$ 0.1 million
-Government
US$ 8.263 million
Subtotal Co-financing:
US$ 9.788 million
TOTAL PROJECT C OST:
US$16.403 million
4. ASSOCIATED FINANCING (MILLION US )
5. OPERATIONAL FOCAL POINT ENDORSEMENT:
Name: Daniel Ribeiro de Oliveira
Title: GEF Operational Focal Point,
Organization: Ministry of Environment
Secretário de Assuntos Internacionais.
Date: May 27, 1998
6. IA CONTACT:
Mr Ahmed Djoghlaf, Executive Co-ordinator,
UNEP/GEF Co-ordination Office, UNEP, Nairobi
Tel.254 2 624153 / Fax 254 2 520825

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Internet: ahmed.djoghlaf@unep.org

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LIST OF ACRONYMS
CIBHAP-P
Comite de Integracao da Bacia Hidrogafica
do Alto Paraguai-Pantanal
COINTA
Consorcio Intermunipal
ECOPAN
Associacao Ecologica de Defesa da Bacia do
Rio Miranda e do Pantanal
EMBRAPA
Empresa Brasileira de Pesquisa
Agropecuaria
EMINWA
Environmentally-sound Management of
Inland Water
EMPAER
Empresa de Pesquisa, Assistencia Tecnica e
Extensao Rural de Mato Grosso do Sul
IWRN
Inter-American Water Resources Network
MMA
Ministry of Environment, Water
Resources and Legal Amazon
OAS
General Secretariat of the Organization of
American States
PCBAP
Plano de Conservacao da Bacia do Alto
Paraguai
PROAGUA
World Bank Program for Water
Development
PRODEAGRO
Programma de Desenvolvimento Agro-
Ambiental
SANEMAT
Empresa de Saneamento do Estado de Mato
Grosso
SANESUL
Saneamento Basico do Estado de Mato
Grosso do Sul
SEMA
Secretaria Especial do Meio Ambiente
SEMADES
Secretaria do Estado de Meio Ambiente e
desenvolvimento Sustentavel
SMA
Secretaria do Meio Ambiente
SODEPAN
Sociedad de Defesa do Pantanal
SRH
Secretariat of Water Resources of the
Ministry of Water Resources and Legal
Amazon
UPRB
Upper Paraguay River Basin
WMP
Watershed Management Program

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PROJECT DESCRIPTION
1.
Background and Context
1.1 GEF Programming Context. This project meets the objectives of the GEF Operational
Program #9 International Waters Integrated Land-Water Multiple Focal Area Project component
(paragraph 9.21). The project will implement strategic actions identified in the Plan for the
Conservation of the Upper Paraguay River Basin (PCBAP) to control land degradation, wetland
habitat loss, and contamination of waters by sediments, nutrients, heavy metals and persistent
organic pollutants (including agro-chermicals) within the Pantanal, a globally significant wetland
which is located predominantly within Brazil. Extension of the knowledge gained through this
project to the other basin countries, Bolivia and Paraguay, is specifically provided for in the
implementation of the watershed management program (see Component VI).
1.2 Implementing Agency Programming Context. The proposed actions are consistent with the
GEF principle of linking project elements with major cross-cutting issues such as land-degradation
addressed by the GEF, and with the UNEP Environmentally Sound Management of Inland Waters
(EMINWA) integrated watershed management planning process.
1.3 National Programming Context. The Plan for the Integrated Development of the Upper
Paraguay River Basin (EDIBAP) was completed by the Government of Brazil, with the support of
the OAS and United Nations Development Program (UNDP), in 1981, and resulted in the
formulation of a series of economic development proposals for the Pantanal region, based on the
principles of environmental conservation, ecological balance, and rational use of land. The
consequent strategy recommended specific actions to address some social problems and assess the
impacts of several proposed development projects on the water regime of the Paraguay River Basin
in Brazil. It included some flood control measures proposed to be achieved by the construction of
reservoirs at several locations, which would also serve to improve river navigation without
significantly changing water behavior downstream.
1.4 Subsequently, the Government of Brazil initiated the Pantanal Project in 1991 with the support
of The World Bank. The federal Secretariat of the Environment (SMA/MMA), the Secretariat of
the Environment of the State of Mato Grosso (SEMA), and the Secretariat of the Environment and
Sustainable Development of Mato Grosso do Sul (SEMADES) joined efforts for the conservation of
the Pantanal in the preparation of the PCBAP. This plan employed an environmental zoning
approach to delineate general and site-specific guidelines for the conservation, rehabilitation and
preservation of degraded lands; created a geographic information system to facilitate dissemination
of available physical, biological, social, legal and economic information; and, proposed the operation
of a real time flood warning system designed to prevent negative impacts in urban and rural areas.
1.5 In this context, the Government of Brazil requested technical assistance in implementing priority
actions identified by PCBAP within the Upper Paraguay River Basin and the Pantanal (UPRB). The
present project has been prepared using GEF PDF-B funds and is based upon extensive public
consultation with stakeholders in both participating states. Public and stakeholder participation

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remains an integral part of all activities identified in this citizen-driven project.
1.6 System Boundaries. The 496,000 km2 UPRB is an international river basin shared by Brazil,
Bolivia and Paraguay (Annex 7). Together with the Uruguay and Paraná rivers, the Paraguay River is
one of the three main components of the Plata Basin System, which drains almost 20 percent of the
South American continent. The Upper Paraguay Basin comprises two areas with significantly
different water and natural resource conditions, i.e. the Plateau, or Planalto, and the Pantanal. The
Planalto forms the eastern boundary of the drainage basin. Rainfall in this area exceeds 1,400 mm
per year and has definite seasonality that determines the hydrological character of the basin. The
land surface of the Planalto is used mainly for agriculture (i.e., cattle grazing, and soybean and rice
production), that has expanded rapidly since the 1970s.
1.7 Surrounded by the Planalto, the Pantanal has been identified as a wetland of global significance
by The Nature Conservancy and World Wildlife Fund. Major tributaries to the Upper Paraguay
River are the Apa, Aquidauana, Cuiabá, Miranda, Negro, Sao Lourenço, and Taquari rivers, all of
which discharge to the Pantanal. Of these tributaries, the Miranda, Negro and Taquari rivers are
hydrologically dominant, while the Apa River is transboundary in nature, forming the border of
Brazil and Paraguay. Approximately 80 percent of the UPRB, including the major headwater
tributaries and the largest portion of the Pantanal, is located within the boundaries of the Federal
Republic of Brazil.
1.8 Immediate and Intermediate Problems. Priority actions identified by PCBAP included the
inspection and licensing of polluting activities; the regulation of exploitation of native flora and
fauna; monitoring of water quality; the management and control of mining areas, and the
rehabilitation of degraded areas (both by agriculture and mining); the creation of a center for the
rehabilitation of wildlife; and, the promotion of informal environmental education activities. Since
1997, provisions set forth in the federal law 9433/97, the new water law of Brazil, have emphasized
watershed-level management of water resources, an integral part of which has been the creation of
basin committees, including the formation of the Committee for the Integrated Management of the
Upper Paraguay Basin and Pantanal (CIBHAP-P). Explicit support for strengthening the ability of
this institution and its human resources capacity to conduct effective integrated management actions
within the Basin is included in this proposal.
1.9 Building upon the strategic actions identified by PCBAP, the primary objective of this project
is to initiate implementation measures with incremental costs that address the key environmental
concerns identified in this basin. Projects for the control of land degradation due to urban,
agricultural and mining activities, wetland conservation, support to popular participation in the
management of natural resources, and control of water-borne contaminants, including persistent
organic pollutants, identified as priority actions under PCBAP within the framework of this project,
have been selected in order to catalyze implementation of specific actions recommended in PCBAP.
1.10 Root Causes. Priority environmental concerns in the UPRB and Pantanal include soil loss from
agricultural areas, contamination by organic pollutants and heavy metals from agricultural and mining
operations, and nutrients from inadequately treated sewage from urban developments (Annex 4).

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Although human settlement of the UPRB is sparse, most of the population, both on the plateau and
in the lowlands, is in urban areas that currently lack adequate land use controls, wastewater and solid
waste management infrastructure, and urban stormwater management systems. Soil quality and soil
conditions, ease of access, and protection from flooding, as well as significant reserves of metals and
minerals, favor agro-industrial and mining development within the basin, primarily in headwater
areas upstream of the Pantanal.
1.11 Economic activities, currently being operated using unsustainable methods within a relatively
weak institutional framework, contribute to high rates of soil loss, loss of hydraulic capacity
(particularly in the wetlands), encroachment into wetlands and floodplains, loss of habitat, and agro-
chemical and heavy metal contamination. Increased tourism is contributing to overfishing, alteration
of floral and faunal units, and export of threatened and endangered species. In addition, river-borne
transportation routes, including the controversial Paraguay-Parana Waterway Project (Hidrovia)
which has been proposed as a means of facilitating the transport of agricultural products and
minerals and metals, have the potential to negatively affect both the downstream passage of flood
peaks and the upstream behavior of water flows. However, as of March 1998, the Government of
Brazil has taken the decision not to proceed with implementation of the Hidrovia within the
Pantanal upstream of Corumbá, in the foreseeable future.
1.12 Superimposed upon the anthropogenic impacts, the hydrology of the Pantanal is influenced by
natural factors; namely, the fact that the average annual rainfall is less than the annual average
potential evaporation resulting in a precipitation deficit. The Pantanal remains a wetland only
because of the runoff from the highlands. Changes in rainfall, occurring during the last 25 years, have
encouraged some landowners to consider building polders, that, if constructed in large numbers,
could affect the character of the entire system. In broad terms, any changes in the hydrological
integrity of the Pantanal could reduce the volume of water retained in the Pantanal, and potentially
transform it from wetland to savannah.
2.
Rationale and Objectives
2.1 Objectives. Building on the previous studies and the PDF-B Phase, the objective of this GEF is
to assist the Government of Brazil to promote the sustainable development of the UPRB. The goal
of the project is to support the incremental costs of measures identified PCBAP and integrate them
into a watershed management program (WMP) for the basin that addresses the priority
environmental issues within the world's largest wetland.
2.2 This project proposal is being compiled at a time when the Committee for the Integrated
Management of the Upper Paraguay Basin and Pantanal (CIBHAP-P), the states of Mato Grosso
and Mato Grosso do Sul, and the federal government of Brazil are beginning to implement the public
participation and grass-roots level water resources management structures designed under Federal
Law 9433/97. Implementation of these structures provides an opportunity for the creation,
strengthening and/or implementation of effective organizations, controls and fiscal instruments to
mitigate land and water management practices that degrade water quality, modify hydrological and
hydraulic characteristics of the basin, and/or adversely affect the biological integrity of the Pantanal

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and UPRB. In addition, PCBAP provides a relevant and appropriate regional planning context for
site-specific interventions to be designed and catalyzed under the activities set forth in this
proposal. The net result of these actions will be the environmentally sustainable development of the
land and water resources of the UPRB, including the Pantanal. The strengthening of CIBHAP-P is
anticipated to be a specific result of these actions.
2.3 Complementary Interventions. Activities proposed for implementation during the project
period would be conducted in parallel with numerous on-going and proposed planning and
development activities. Activities that directly affect the conduct of the proposed project include,
inter alia, a US $ 270,000 element of the Northwestern Regional Development Program
(PRODEAGRO), financed by The World Bank and executed by UNDP, which is designed to
combat soil loss and encourage environmentally sound and sustainable agricultural practices by small
scale farmers in the state of Mato Grosso, and the State Program for Small Catchments and other
programs executed by the Brazilian Corporations for Agricultural Research, Technical Assistance
and Extension (EMPAER) and for Agro-pastoral Research (EMBRAPA) in the state of Mato
Grosso do Sul. In addition, activities associated with the World Bank loan-financed Program for
Water Development (PROAGUA), in an amount of up to US $ 980,000, whose outcomes are
complementary to the watershed management measures recommended under PCBAP, are
anticipated to be conducted within the UPRB, especially focusing on the Rio Taquari and Rio
Miranda sub-basins. Additional infrastructural investments of up to US $ 400 million for
wastewater, stormwater, and water quality management are being considered for financing from
national and international sources.
3.
Project Activities/Components and Expected results
3.1 The proposed project activities are designed to catalyze implementation of actions necessary to
address the conservation of a wetland of global significance identified during the PCBAP program and
elaborated in the issues identified during the PDF-B project activities. The relationships between
these concerns, issues, and actions are shown in Tables 1 and 2 of Annex 8. The project activities are
designed to implement the WMP for the UPRB, and are concentrated in six principal components as
set forth below. Detailed information on each component is presented in Annex 8.
COMPONENT I: WATER QUALITY AND ENVIRONMENT PROTECTION. The objective
of Component I is to quantify specific priority issues of concern, generally identified in PCBAP. This
component is essential for the development and implementation of the remedial measures set forth
in the subsequent components of the project. Activities will include:
· the quantification of levels of agro-chemical and heavy metal contamination and degree of
transport within the basin in order to assess the nature and magnitude of the threats to
environmental populations (including humans) from bioaccumulation of agro-chemicals and
metals within the environment;
· an inventory of endemic fishes, fisheries activities (both traditional and nontraditional,
commercial and recreational), and the reproductive biology of the endemic fishes in order to
assess the reasons for the observed decline in endemic fish production and diversity;
· mapping of the meander cuts (arrombados) and associated riparian community actions in their

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creation in order to assess the nature of their deleterious impacts on such hydraulic interventions
on the hydrology and contaminant movement within the basin; and,
· the quantification of water uses, users, and patterns of regional development impacting water
resources in order to quantify the impacts of urban and rural areas on the river system (e.g.,
abstraction, pollution, etc.) as well as the impact of the river system on the such areas (e.g.,
flooding, etc.).
The results of this component will form the sound scientific and technical basis for the management
of the basin, including assessments of agro- and mining pollutants and their transboundary
movements; fisheries, fishing activities and fish biology; meander cut impacts; and water resources,
that will underpin the development and implementation of the strategic program for sustainable
economic development, and the implementation of remedial measures.
It is anticipated that the execution of these activities will be undertaken by the relevant federal and
state agencies such as EMBRAPA, EMPAER, SEMADES, SANEMAT and SANESUL; federal
research institutes; federal universities; NGOS such as Terrasul and Sodepan; and municipal
consortia, and private enterprises, including parastatal corporations. The coordination and
supervision will be ensured by the Technical Coordinator at the SRH/MMA. Component I is
anticipated to be initiated during the first quarter of the project period. GEF: US $ 1,141,000; co-
funding: US $ 1,668,000; total: US $ 2,809,000.
COMPONENT II: CONSERVATION OF THE PANTANAL: PCBAP recommended the
creation of conservation units within the Pantanal as a means of preserving the best remaining areas
of natural habitat within the region. Units of this type have been established and implemented in the
State of Mato Grosso. The objective of Component II is to refine these units and expand their usage
to the State of Mato Grosso do Sul. Activities will include:
· the provision of assistance to the State government of Mato Grosso do Sul in implementing
institutional mechanisms for the establishment of floral and faunal conservation units, delineated
by PCBAP, within the lower portion of the UPRB in areas subjected to intensive agro-pastoral
activity;
· the creation of buffer zones as a means of moderating human encroachment upon natural
reserves;
· the identification of the root causes of the illegal export of live animals and endangered species
from the Pantanal region as a means of protecting and preserving wildlife (including aquatic
fauna) by enabling public and private sector (commercial organizations) agencies to develop
means of controlling ecological damage arising from over-exploitation of land and natural
resources through appropriate programs of environmental education, involvement of non-
governmental organizations and their resources, identification of possible alternative economic
activities, and implementation of relevant legislative initiatives and governmental actions; and,
· the preparation of community-based management programs and training of administrators for
land and resource management, especially in the buffer zones around the reserves.
By demonstrating the feasibility of implementing programs and buffer zones as effective means of
conservation and protection within the preserves, this activity element will catalyze the further
adoption of community-based management techniques to restore degraded environments adjacent to

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nature conservancy areas.
The results of this component will be the implementation of projects that will demonstrate:
· the feasibility of establishing conservation units in the State of Mato Grosso do Sul,
· the creation of buffer zones for the protection of around the Acurizal, Penha, and Doroche
National Reserves,
· the use of alternative ways and means of protecting indigenous flora and fauna throughout the
Pantanal,
· the utility of a community-based approach to the management of the Pantanal and UPRB in
order to provide mechanisms for the sustainable development of communities in these areas.
It is anticipated that the execution of these activities will be undertaken by the relevant federal and
state organizations such as EMBRAPA and SEMADES, and NGOs including ECOTROPICA and
The Nature Conservancy. The coordination and supervsion will be ensured by the Technical
Coordinator at the SRH. Component II is anticipated to be initiated during the first through fourth
quarters of the project period. GEF: US $ 455,000; co-funding: US $ 1,474,0000; total: US $
1,929,000.
COMPONENT III: LAND DEGRADATION. Component III addresses cross-cutting issues
which relate specifically to land and water management activities designed to protect and/or
rehabilitate critical areas within the Basin. Building upon Component I above, the objective of
Component II is to implement community-based land management through the identification and
demonstration of environmentally-sound practices within the agricultural, mining and urban
economic sectors. Activities will include:
· the identification of practices contributing to sustainable (primarily agricultural) use of soils
within the sub-basin and assist in identifying the fate of sediments already eroded;
· the determination of appropriate management practices to permit control of mining practices,
restoration of the disturbed lands for other purposes including environmental purposes and
public information and recreation, and environmental protection and education;
· the promotion of community-based land rehabilitation efforts contribute to mitigation of mining
impacts and rehabilitation of degraded areas; and,
· the demonstration of the integrated management of the urban environment through planning,
management, and public information as a means of reducing the quantity of potential pollutants
generated from urban areas.
The results of Component III activities will lead directly to the determination of best management
practices and their demonstration in mitigating priority environmental issues of concern. In this
regard, it is anticipated that priority actions will be implemented through co-financed activities of
the World Bank under their PRODEAGRO and PROAGUA loan programs (total US $ 1,250,000).
The results of Component III will be the implementation of practices which will demonstrate the
feasibility of:
· appropriate soil conservation practices for reducing soil erosion loss from agricultural activities
in the Rio Taquari sub-basin,
· reclaiming lands degraded by mining practices in the Municipality of Pocone,

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· reestablishing riparian vegetation in the State of Mato Grosso as a means of reducing streambank
erosion,
· the involvement of urban communities in the control of aquatic and environmental pollution
through the adoption of sound planning and urban design practices, the adoption of urban "good
housekeeping" practices at the community level, the adoption of sustainable land management
practices at the industry level specifically within the mining industry, and the adoption of
environmentally-sound practices at the household level within communities in the Rio Apa,
Miranda and Taquari sub-basins and in the Municipality of Pocone.
It is anticipated that the execution of these activities will be undertaken by the relevant federal and
state agencies and organizations such as EMBRAPA, COINTA and SEMADES, federal
universities, municipal and prefectural agencies including sub-committees of the basin committee,
and NGOs. The coordination and supervision will be ensured by the Technical Coordinator at the
SRH/MMA. Component III is anticipated to be initiated during the second through fourth quarters
of the project period. GEF: US $ 916,000; co-funding: US $ 892,000; total: US $ 1,808,000.
COMPONENT
IV:
STAKEHOLDER
INVOLVEMENT
AND
SUSTAINABLE
DEVELOPMENT. The objective of Component IV is to involve the Basin communities in practical,
"hands on"-type involvement in the identification and demonstration of remedial measures, as well as
in a dialogue process. Experiences in environmentally-sustainable economic growth identified in
Components I through III above will be transferred to the public at large. Activities carried out under
this Component will identify alternative means of economic production or alternative economic
activities, which have the advantage of benefiting from community insights and experiences, as well as
minimize environmental degradation in a manner acceptable to the communities. Activities will
include:
· the compilation and dissemination of a program of public environmental information designed to
address current and potential future socio-environmental problems arising from tourism,
agriculture, and urban development (through educational programming) in critical environmental
habitat areas;
· the promotion of ecotourism, supporting not only a sustainable tourist industry but also a
program of transmittal of environmental information to patrons;
· the promotion of community-based land management, through the educational system and
nongovernmental organizations (NGOs), by demonstrating good stewardship practices within
the basin;
· the development of alternative means of meeting the angling and commercial fisheries demand for
native fishes and bait fishes from the Upper Paraguay River; and,
· the protection of native fishes within the natural ecosystem of the Paraguay River.
The results of this component will be the development and implementation of programs which will
demonstrate the feasibility of:
· environmental education within the educational, tourism, agricultural and urban sectors as a
means of protecting aquatic environmental quality through enhanced environmental awareness
leading to minimization of pollution throughout the UPRB,
· eco-/ethno-tourism as an economic development strategy for indigenous populations on the

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Island of Insua,
· citizen-based conservation initiatives and partnerships with NGOs as a means of promoting
sustainable land-management practices for the protection of the environment at Porto da
Fazenda, Mato Grosso,
· aquaculture as an alternative to the harvesting of river fishes as an economic opportunity for the
fisheries sector within the Pantanal,
· protecting critical fish species and fish habitat through improved knowledge of fish biology
within the fisheries sector in the Rio Taquari sub-basin.
It is anticipated that the execution of these activities will be undertaken by the relevant federal and
state agencies and organizations such as FEMA and SEMADES, federal universities, municipal
organizations such as COINTA, and NGOs such as ECOBRASIL, ECOPAN, ECOTROPICA, and
Fundacao Pantanal. The coordination and supervision will be ensured by the Technical Coordinator
at the SRH/MMA. Component IV is anticipated to be initiated during the second through third
quarters of the project period. GEF: US $ 448,000; co-funding: US $ 990,000; total: US $
1,438,000.
COMPONENT V: ORGANIZATIONAL STRUCTURE DEVELOPMENT. Component V is
designed to strengthen and improve institutional and staffing capabilities. The objective of
Component V is to implement new laws, regulations, and procedures necessary for the longer-term
success of the watershed management measures and embodied in federal law 9433/97. This
component will help to increase participation in decision-making within the basin, and enhance the
ability of the Basin Committee to carry out its mandate. Ultimately, this component will extend
such actions throughout the entire multi-national area of the UPRB. Activities will include:
· a review existing environmental and water resources legislation within the basin and proposal of
specific legislative actions required to harmonize and improve legal instruments for
environmental and water resources protection;
· the development of an effective technical basis and information exchange network;
· the creation of training programs for municipal, state, and federal government agency staff,
CIHBAP-P staff, and community leaders (especially those persons likely to be members of
water agency committees); and,
· the identification of the need, and formulation of the conceptual and institutional frameworks,
for a basin-wide system of decision support and hydrological models (to be prepared under
subsequently-funded activities) that will underpin the sustainable management of the water
resources of the UPRB.
The results of this component will be:
· development and implementation of a program of legislative actions designed to harmonize
environmental and water resources protection legislation at all levels of government,
· formulation and implementation of ways and means of promoting the exchange of technical
information and experiences within the basin through the creation of appropriate sub-committees
and consortia developed under the auspices of the basin committee, including specific actions to
strengthen integration between municipal agencies in Corumba and the Rio Apa and Rio Miranda
sub-basins,

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· development and implementation of curricula and training programs to support the introduction
of citizen-based educational programming through schools, introduction of citizen-based
educational programming through strengthening of agricultural extension services, and
introduction of training programs for local government staff to support implementation of the
program of legislative development identified under Activity IV above.
· development of the scientific and technical basis for the development and implementation of
hydrological, water quality and decision support models and systems, identifying a detailed
work plan and statement of parameters for such models.
It is anticipated that the execution of these activities will be undertaken by the basin committee,
relevant federal and state agencies and organizations such as FEMA and SEMADES, federal
universities, municipal organizations such as COINTA, and NGOs such as SODEPAN. The
coordination and supervision will be ensured by the Technical Coordinator at the SRH/MMA.
Component V is anticipated to be initiated during the third through fourth quarters of the project
period. GEF: US $ 1,899,000; co-funding: US $ 1,099,000; total: US $ 2,998,000.
COMPONENT
VI:
INTEGRATED
WATERSHED
MANAGEMENT
PROGRAM
IMPLEMENTATION. Component VI refines and implements the WMP. The objective of
Component VI is to synthesize the data and experiences, feasibility assessments and cost analyses
developed in the five preceding components. The activities explicitly provide for the cooperative
refinement and implementation of the comprehensive WMP by both the public and private sectors,
based on a multi-sectoral, holistic approach to environmental management and economic development
in this Basin, as provided for in Chapter 18 of Agenda 21 and federal law 9433/97, in representative
sub-basins of the Upper Paraguay River, and the extension of this experience to the entire UPRB.
Activities will include:
· a review federal and state legal and financial mechanisms relating to the sectoral uses of water
(e.g., agricultural subsidy schemes, urban land use planning regulations, etc. which affect
disturbances of the land surface that encourage erosion, water pollution, etc. to the detriment of
water courses and water resources management) leading to the endorsement and amendment as
appropriate of those mechanisms that affect sustainable use of water resources and the
management of watersheds within the UPRB;
· the optimization of water resources management policies, practices and programs as necessary
to create a sound economic and legal basis for the sustainable development of the basin through
the adoption of a detailed strategic framework for the allocation and determination of water
charges, introduction of watershed management measures, including proposals for legislation
leading to the strengthening of administrative mechanisms, and implementation of specific best
management practices;
· the preparation of guidance materials for the application of catalytic and incremental financing,
provided through the GEF and complementary national and international funding programs,
during the implementation phase of the project;
· the implementation of an enhanced institutional capability to conduct a strategic program of
watershed management;
· the dissemination of the experiences gained through this project, its demonstration project
activities, and its associated public participation in the decision-making process throughout the

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basin.
A practical result of the implementation of the WMP will be the explicit incorporation of methods and
procedures for the solution of priority transboundary environmental problems into regional
development programs. Additionally, the results of this component will be:
· documentation of a program of strategic actions within the basin supporting the initiation and
implementation of legislative actions, policies, practices, and programs, and their dissemination
on both a sectoral and community-wide basis,
· initiation of legislative actions to determine, develop and implement a system of water use
charges and fiscal, financial and legal mechanisms for water quality and quantity management in
the basin,
· implementation of policies, practices and programs, including those currently adopted under
federal law 9433/97, to optimize the administration of water resources within the basin and their
utilization and protection,
· application of the enhanced institutional and human resource capabilities within basin for the
optimization of water resources development and protection of the Upper Paraguay River and
Pantanal,
· conduct of national and regional symposia, workshops and seminars to transfer knowledge
gained through this project to technical professionals throughout Brazil and Latin America, and
the publication of this knowledge to the public-at-large through appropriate media including the
establishment of a community-driven diaglogue between the technical professionals and citizens
as envisaged under federal law 9433/97.
It is anticipated that the execution of these activities will be undertaken by the basin committee,
relevant governmental agencies such as SRH, FEMA and SEMADES, and NGOs. The coordination
and supervision will be ensured by the Technical Coordinator at the SRH/MMA. Components VI is
anticipated to be initiated during throughout the project period. GEF: US $ 1,020,000; co-funding:
US $ 2,203,000; total: US $ 3,223,000.
4.
Risks and Sustainability
4.1 This project is designed to address priority environmental concerns needed for sustainable
development of the UPRB in general, and for the protection and preservation of the Pantanal in
particular. To effect this, it is necessary to formulate a comprehensive program of coordinated
actions by the Federal Government of Brazil and the riparian states (Mato Grosso and Mato Grosso
do Sul) which can ultimately be agreed by the downstream countries during later stages of project
implementation. The principle risk facing development in the UPRB is that environmental
considerations are not properly included in projects, programs, policies and actions in such a way as
to ensure their sustainability. Serious undesirable environmental side effects, such as the
catastrophic decline in the fisheries, damage to the underlying natural resource base, flooding, and
pollution of downstream ecosystems, including economic units of production, may result from this
failure. Notwithstanding, opportunities exist for the protection and rehabilitation of the Pantanal by
strategically introducing effective and adequate environmental management practices and procedures.
These opportunities have been given effect by the adoption by the state governments of

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14
complementary legislation under the federal water law and implementation of comprehensive
programs of environmental zoning as an initial step in this process. In addition, the CIHBAP-P has
adopted an active posture that will catalyze and encourage an effective cross-sectoral role for this
committee in the sustainable management of the river basin. Incremental GEF funding is intended to
be catalytic in reversing the unsustainable development trends in this region by, inter alia, helping to
popularize sustainable practices among the population, provide the institutional, legal and financial
structures necessary for implementation of sustainable practices, and promote mechanisms for the
continued economic growth, with minimal negative environmental impacts, within the basin.
4.2 Project activities and their implementation are designed (including the participation process) to
achieve sustainability. Components have been proposed for the purposes of identifying the causes
and effects of degradation of water and natural resources in the basin, and of reclaiming once
productive areas and keeping them productive. Such components relate directly to the information
needed to structure appropriate, sustainable responses, both structural and non-structural (e.g., legal,
financial and administrative structures) within the basin. Similarly, demonstration projects have been
selected on the basis of their sustainability, both from the ecological as well as the economic point of
view. Wherever possible the project will develop opportunities for the establishment of financial
incentives, private sector investment and cost recovery in environmental management (e.g., in
reclamation of eroded or mined lands, pastures and forests, rational management of natural forests,
exploitation of newly forested areas or newly irrigated areas), and provide actual, working examples
of new or refined land management actions necessary for the sustainable development of the
watershed. Use of demonstration projects on this scale would highlight issues affecting the
sustainable implementation of practices allowing refinements or modifications to be made prior to
large-scale use. Feasible and cost-effective techniques would be included in the recommended
courses of action proposed to be implemented for the sustainable management of the UPRB.
4.3 The national and state governments have active, on-going programs of environmental
management, and are seeking more effective ways to manage and conserve their natural resource
base, including reviewing legal and administrative practices, operational procedures, and human
resource needs. Many innovative approaches have been proposed by governmental agencies.
Incremental financing provided through this GEF project is intended to allow pilot scale
implementation of these approaches as a means of determining their feasibility and relative costs,
and, thereby, catalyzing the more widespread adoption of innovative methods throughout the basin.
Government support to these actions proposed to be implemented in part with GEF funding include
a financial commitment of US $ 8,101,000 over a period of two years, with additional funds
proposed to be allocated to the implementation of specific demonstration projects under NGO-
funded initiatives (e.g., the eco-regional zoning and tourism projects proposed by The Nature
Conservancy and other community-based land management organizations) and international loan-
financed programs, including the US $ 1,250,000 World Bank-financed PRODEAGRO and
PROAGUA programs. This national counterpart contribution, comprised of state, federal and
international funds from domestic and loan sources, will help to minimize risks during project
implementation, help to create support for the watershed management process, and assist in the
development of practicable approaches to environmental resource management in the Basin. In
addition, other nationally and internationally funded investment projects in the areas of wastewater,

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15
stormwater, and water quality management infrastructure are being considered.
5.
Stakeholder Participation and Implementation Arrangements
5.1 Participation. (Annex 5) The emphasis on public participation in the management of the water
resources of Brazil is supported as an integral feature of the Federal Law 9433/97. In one of the first
applications of this new water law, more than 200 persons, representing almost 60 civil, corporate,
nongovernmental and governmental entities (having municipal, state, federal, and international
interests) participated in the definition of more than 45 detailed project documents which were
presented at three public meetings convened during the PDF process within the basin during
November 1997 at Cuiabá, December 1997 at Corumbá, and February 1998 at Campo Grande. The
full proceedings of these meetings and supporting documentation are available in different
Government agencies, both of the Federal Government and the States. Contacts with those agencies,
as well as with private sector representatives, academic institutions and NGOs, were the first
activity completed during the PDF-B process. Follow-up consultations were held with the
CIBHAP-P and the SRH/MMA in February 1998. Subsequently, numerous other communications
were initiated between individual participants in the workshops and other selected persons in order
to improve and clarify specific issues arising from component proposals and other observations
made during the project preparation period. The GEF project preparation steering committee met in
Brasilia during October 1997 and March 1998. In Washington DC, in March 1998, several meetings
and consultations were held with representatives of the GEF Implementing Agencies, particularly
The World Bank due to their previous experience in the basin. During project preparation, six
consultants from within the Mercosul Region reviewed the existing literature base, conducted
interviews with numerous public officials and representatives of NGOs, and synthesized the public
contributions and available technical literature and information in order to identify specific gaps in
knowledge and understanding of the concerns of global significance in the UPRB. Copies of the
consultants' reports are available for consultation from UNEP and the OAS. The principle findings
identified by the public, government officials, and consultants are contained within by this proposal,
which has been prepared by the SRH/MMA of Brazil supported by UNEP and OAS specialists.
Representatives of the neighboring countries were consulted during the preparation of this proposal.
5.2 Popular participation is built into the demonstration projects and will be continued in the
development of the WMP for the UPRB. As noted above, work elements under all nine issues
identified during the PDF investigations included various sub-elements which contribute to the
overall stakeholder participation program within the project, including community- and corporate-
based environmental information and education campaigns, training courses and symposia, and
actions designed to increase the capacity and participation of institutions and personnel to undertake
activities in support of the WMP proposed as the outcome of this project. Further, these explicit
action will be conducted within the framework of Federal Law 9433/97 which, itself, explicitly
provides for public participation in the water resources management decision-making process.
Finally, specific actions are proposed to be conducted under the project which specifically address
issues related to public and stakeholder participation in the planning process, and/or which provide
support for the development of a sound public participation and involvement strategy as one of the
strategic actions to be implemented under subsequent, implementation phases of the WMP.

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16
5.3 Implementation Arrangements. All the proposed activities will be driven by a Project Steering
Committee comprised of representatives of SRH/MMA; UNEP, as Implementing Agency; and, OAS,
as Executing Agency; and, the CIBHAP-P (which includes, inter alia, representatives of the states of
Mato Grosso and Mato Grosso do Sul). The other GEF Implementing Agencies will be informed of,
and may participate in, meetings of the Steering Committee in an ex officio capacity. The Steering
Committee, at its first meeting to be convened at the earliest possible moment following project
approval by the GEF, will chaired by the Secretary of Water Resources of Brazil who will act as
Executive Director of the Project, in consultation with UNEP and the OAS. One Technical
Coordinator, to be contracted by OAS as the Executing Agency in consultation with UNEP, will also
be confirmed at this inaugural meeting of the Steering Committee. Further, the Committee will agree
administrative and reporting procedures consistent with UNEP standards and OAS requirements for
financial reporting. The Steering Committee also will determine a proposed concept of execution for
the program of work outlined herein, and establish any necessary sub-committees needed for the
execution of the project. This program of work and identification of contractors will be elaborated
jointly by the Executing Agency and SRH/MMA, in consultation with UNEP, prior to the second
meeting of the Steering Committee and inauguration of project activities. Finally, the Steering
Committee, at its inaugural meeting, shall conduct any other such business as maybe required to
initiate project activities, and set a date for the second meeting of the Committee. Participation of the
national, state and municipal agencies of Brazil, and later Bolivia and Paraguay, with competence in the
region, scientific and academic institutions, and concerned civil organizations (NGOs) will be by way
of committees of the Steering Committee. Subsequent meetings of the Committee shall be scheduled
by the Committee but shall be at least every six months during the project period. The activities of the
Steering Committee will be supported by the SRH/MMA, with funds provided by GEF through the
Implementing Agency. UNEP and OAS will support Project Execution. OAS, due to its historic
involvement in the basin, its partnership with UNEP in similar projects within the region, and its role
in implementing activities under related projects, will act as Executing Agency and manager of the
funds provided to the project by UNEP on behalf of GEF, consistent with UNEP financial reporting
requirements. The main coordination activities will be implemented from Brasilia, Brazil. All project
activities will be conducted within the basin.
5.4 The Committee for the Integrated Management of the Upper Paraguay Basin and Pantanal
(CIBHAP-P) is the legally-constituted river basin management authority convened under Title II,
Chapter III, Articles 37 through 40 of Federal Law 9433/97, National Water Resource Policy for
Brazil. The states of Mato Grosso and Mato Grosso do Sul are members of this committee.
5.5 Activities of national personnel, with the support of the international agencies, will be based upon
preparatory work and Terms of Reference agreed with and approved by the SRH/MMA, in
consultation with UNEP and OAS. To the extent possible, all activities will be executed by national
agencies of Brazil and/or by consultants from Brazil. The SRH/MMA and Executing Agency will
coordinate field activities, as directed by the Steering Committee, through coordinators appointed from
their staff.
6.
Incremental Costs and Project Financing. Recognizing the domestic benefits that will

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17
accrue from this project (e.g., identification of techniques and strategies for the prevention and control
of erosion, land degradation, sediment control, flood control, and water supply for drinking and
agricultural uses), the Government of Brazil, the riparian states and municipal governmental units, and
other parties participating in the GEF project activities defined herein have proposed various
programs. These programs are funded from generally two sources. One is through loan-funding for
the major infrastructural improvements required for the implementation of mitigation measures
recommended under PCBA. The other source of funding is composed of counterpart contributions for
the cost-sharing of work program activity costs, including cofinancing for this GEF project. The
Government and other organizations are contributing or underwriting a substantial percentage of the
total funds required, thereby demonstrating their full support and interest in this program. This
investment is assumed to account for the full value of national benefits gained under this project, and
will be applied specifically to costs associated with issues such as waste disposal, flood management,
and navigation. Further, the Government of Brazil is contributing additional co-funding under the
World Bank-financed PRODEAGRO. The total baseline cost is US $9.788 million, and the value of
the alternative is $US $16.403 million. Incremental GEF financing will be applied specifically to
catalyze activities such as mitigation and prevention of land degradation, wetland protection, and
control and minimization of persistent contaminants, at a cost of US $5.879 million. A detailed
description of incremental costs is presented in Annex 1.

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18
Project Financing
Table 1. Component Financing (US $).
COMPONENT
GEF
Co-financing1
TOTAL
Government UNEP
OAS
I. River Basin Environmental
1,141,000
1,668,000
2,809,000
Analysis
II. Conservation of the Pantanal
455,000
1,474,000
1,929,000
III. Land Degradation
916,000
892,000
1,808,000
IV. Stakeholder Involvement and
448,000
990,000
1,438,000
Sustainable Development
V. Organizational Structure
1,899,000
1,099,000
2,998,000
Development
VI. Integrated Watershed
1,020,000
1,978,000 150,000
75,000
3,223,000
Management Program
Implementation
PRODEAGRO/PROAGUA
1,250,000
1.2500
TOTAL (Project Costs)
5,879,000
9,351,000 150,000
75,000 15,455,000
Project Support Costs
400,000
400,000
Monitoring and Evaluation
50,000
50,000
PDF Preparation
286,000
162,000 25,000
25,000
498,000
GRAND TOTAL
6,615,000
9,513,000 175,000
100,000 16,403,000
7.
Monitoring, Evaluation and Dissemination
7.1 Monitoring and Evaluation. The administrative, technical and financial reporting framework
will be provided by the Implementing Agency through the Executing Agency and Steering
Committee using standard UNEP reporting protocols. Utilizing key process and status indicators
will be an intrinsic part of the project. These indicators will be implemented through the
establishment and integration of monitoring tools into project components, as agreed by the Steering
Committee at their second meeting, as set forth above. A monitoring and evaluation plan, based upon
GEF monitoring and evaluation indicators (process, stress reduction, and environmental status), will
be prepared by the Executing Agency and SRH/MMA, and approved by the Steering Committee and
UNEP. The objective of this monitoring is to contribute to improving, and, if needed, adapting
management of work program activities as well as creating the basis for project evaluation.
Implementing Agency supervision will be exercised through the Executing Agency and by
participation in the regular meetings of the Steering Committee, the first and second meetings of the

1 Application of the $1,250,000 PRODEAGRO/PROAGUA loan components will be determined following signature
of the agreements.

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19
Steering Committee wherein the work plan and terms of reference for project staff and consultants will
be discussed and agreed. A project implementation review consistent with GEF procedures will be
undertaken jointly by the Government and UNEP two years after the end of the project.
7.2 STAP review. (Annex 3) This project proposal was reviewed by Dr. Claudio Campagna of the
Centro Nacional Patagonia of Argentina, an International Waters Expert included in the STAP Roster
of Experts. Comments made by Dr. Campagna regarding the need for a multinational approach to
basin management have been incorporated into Component VI. In general, the comments of the STAP
reviewer were strongly supportive of the project approach, methodology and design.
7.3 Dissemination. Incorporated into the WMP are specific activities (Component VI) which
explicitly aim to promote and disseminate the experiences obtained during the WMP implementation
process to the water resources professionals within the multinational basin, and to communities within
the UPRB through a program of public information and education. Further, Component VI is
explicitly designed to encourage the integration of the downstream riparian countries in various project
activities, including transboundary pollutant transport and similar issue identification activities. As
previously noted, all project activities will encourage and facilitate technology transfer and information
dissemination through programs of public participation, stakeholder involvement, and professional and
community-based education and information dissemination. State and municipal governmental, NGO,
and citizen involvement in project execution will contribute to the dissemination of information on
specific technologies and techniques that contribute to the sustainable environmental management and
economic development of the watershed. This emphasis on public participation in the WMP process
for the UPRB will facilitate communication with all concerned organizations, agencies and citizens, and
the adoption of a comprehensive strategic approach for the management of this critical drainage basin.

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20
Brazil: Implementation of Intregrated Watershed Management Practices For The Pantanal
and Upper Paraguay River Basin
LIST OF ANNEXES
(Included in printed version)
Annex 1:
Incremental Costs
Annex 2:
Logical Framework Matrix
Annex 3:
STAP Roster Technical Review
(included in electronic version or to be provided by the IA upon request)
Annex 4:
Root Causes Analysis
Annex 5:
Public Involvement Plan Summary
Annex 6:
Available Reference Documents
Annex 7:
Geography of the Upper Paraguay River Basin
Annex 8:
Proposed Work Program

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ANNEX 1
INCREMENTAL COSTS
1. Broad Development Goals. The goal of the watershed management program (WMP) for the
Upper Paraguay River Basin (UPRB) and Pantanal is to promote environmentally sustainable
development within the basin and wetland system, taking into consideration the programs of
investments of the federal Government of Brazil and the states of Mato Grosso do Sul and Mato
Grosso, as well as municipalities, local authorities and nongovernmental organizations in the basin.
2. Baseline Situation. The baseline situation consists of: (1) long term development programs for
the Upper Basin of the River, where investments in sanitation, transportation and other
infrastructure such as the natural gas pipeline development project, are being planned for
construction during the next ten to fifteen years; (2) environmentally related activities (e.g., those
activities indicated under PCBAP, PRODEAGRO, and on-going, government-supported
investments in the hydro-meteorological network proposed to be financed by the Inter-American
Development Bank), and, (3) relatively uncoordinated activities being planned or executed by many
government agencies and/or private parties in the basin.
3. The estimated baseline investment upon which this GEF project consists of: a) ongoing operation
and maintenance costs associated with private conservation parks, estimated at US $ 240,000 for the
two years of the GEF project and supporting Increased River Wildlife Diversity; b) operation costs
of the avi-faunal reserve supporting Improved Coordination of Actions for River Management and
Planning, estimated at US $ 200,000; c) current operating costs of the Committee for the Integrated
Management of the Upper Paraguay River and Pantanal, estimated at US $ 150,000 per year and
supporting Improved Coordination of Actions for River Management and Planning; and, d) the
annual costs of supporting the hydrometeorological information network, estimated at US $ 400,000
per year, and also supporting Improved Coordination of Actions for River Management and
Planning.
4. GEF Alternative Scenario. The alternative scenario consists of the implementation of those
actions needed to both introduce sustainable development into development projects in the UPRB,
and achieve the resulting global environmental benefits embodied in the mitigation of transboundary
environmental problems (see Table 5, Annex 8). The costs of these actions are those necessary to
include sustainable development considerations in the projects within the basin over and above the
requirements of the regular environmental impact assessments and mitigation measures required to
be completed under existing Brazilian federal and state environmental laws and regulations.
5. Water resources management in the UPRB will be directed and coordinated by the Committee for
the Integrated Management of the UPRB and Pantanal in consultation with the federal Mininstry for
Environment, Water Resources and the Legal Amazon, as set forth in federal law 9433/97. This
agency will require strengthening, to be provided through GEF support.
6. Global Benefits. Six global benefits have been identified as being promoted by the GEF

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22
intervention; namely, decreased transboundary transport of contaminants, increased river wildlife
diversity, decreased degradation of soils, increased knowledge of river behavior, improved
coordination of actions for river management and planning, and dissemination of knowledge. These
benefits are reflected in the project activities as presented in Table 1 (see also Table 5, Annex 8).
The benefits are:
Component 1 River Basin Environmental Analysis. The activities set forth under this component
are designed to assess and quantify specific issues of concern within the basin identified during the
PDF activities. This project considers reducing the flow of contaminants, especially mercury, other
heavy metals and agro-chemicals into the river, and actions required to manage the possibly
dangerous deposits of contaminants already present in the river bed. Improvement of knowledge
about natural and anthropogenic influences on water flow and quality is expected to result in better
use of water and natural resources in the basin, thus generating additional global and domestic
benefits. Aside the investments, planned and ongoing, in the river basin and its environs, baseline
costs represent counterpart government contributions in the amount of US $1,668,000. The cost of
the alternative is US $2,809,000. The GEF incremental funding is US $1,141,000.
Component 2 Conservation of the Pantanal. Several specific program elements are proposed with
the objective of regulating fishing and aquaculture activities along the course of the river, resulting in
increased fish and riverine wildlife all along the international UPRB. These actions may also result
in domestic benefits arising from the possible increment in fish captures. The baseline cost of this
component includes activities of The Nature Conservancy and local NGOs in establishing buffer
strips around nature reserves and preparing ecoregional plans for the basin and government
counterpart contributions amounting to US $1,474,000. The alternative cost is US $1,929,000.
GEF incremental funding is US $455,000.
Component 3 Land Degradation. Activities in this component include rehabilitation of natural
vegetative cover, use of appropriate agricultural practices, and improved land use regulations. The
cofinancing from goverment, representing a baseline counterpart, is US $892,000. The alternative
project cost is US $1,808,000. The incremental GEF funding is US $916,000.
Component 4 Stakeholder Involvement and Sustainable Development. Since uses of water in the
basin tend to create unexpected results that could produce inconvenient or even dangerous outcomes
to unsuspecting stakeholders, such as is the case of the "meander cuts", a negotiated approach and
agreement among the different stakeholders is often strongly recommended. The baseline costs of
this component include US $499,750, which is comprised of the equivalent cost incurred in
establishing the avi-faunal reserve with stakeholder involvement, and the counterpart contributions
of the Government of Brazil and local governmental and non-governmental organizations US $
490,250 to cover additional activities necessary for these ctivities and reinforce institutional
capacity, for a total of US $990,000. The alternative project cost is US $1,438,000. The GEF
incremental funding is US $448,000.
Component 5 Organizational Structure Development. The baseline cost of this component is US
$1,099,000. It is comprised of the current operational costs incurred by the Committee for the

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Integrated Management of the Upper Paraguay River and Pantanal under component 7.2 and
government counterpart contributions. Improvement of knowledge about natural and anthropogenic
influences on water flow and quality is expected to result in better use of water and natural resources
in the basin, thus generating additional global and domestic benefits. The alternative cost is US
$2,998,000. GEF incremental funding is $1,899,000.
Component 6 Integrated Watershed Management Program Implementation. The baseline for this
component consists of the investments in inventory of river behavior and methods of negotiating
and reaching agreements among different groups of stakeholders for improved management of the
natural resources in the basin. Government counterpart contributions and cofinancing from UNEP
and OAS, which may constitute part of the calculated baseline, amount to US $2,203,000. The cost
of the alternative would be US $3,223,000. GEF incremental funding is US $1,020,000.
9. Additional Domestic Benefits and Costs. Reduced soil loss, improved flood forecasting, and
more effective and sustainable use of available water resources are local benefits to be expected as a
result of the activities of the Project. Additional local costs are unknown at this stage. The
PRODEARGO/PROAGUA program provides supplemental funding of over US $1.25 million to
achieve some of these benefits, but the full benefits from a comprehensive basin-wide protection and
management program cannot be estimated at this time. Part of the baseline contributing to all project
components includes project preparation activities co-financed by the government, UNEP and the
OAS ($212,000).

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Incremental Cost Matrix (US $M)
Component
Category
Amount
Domestic Benefits
Global Benefits
River Basin
Baseline
1.668
Reduced flow of contaminants,
Environmental
such as mercury, heavy metals,
Analysis
and agro-chemicals into the
river; reduced sediment deposits
in the river bed; improved
knowledge of natural and
anthropogenic influences on
water flow
Alternative
2.809
Same as above.
Integration of sustainable
development into riverine and basin
development projects in the UPRB;
mitigation of transboundary
environmental problems beyond
regular requirements for
environmental impact assessments
Increment
1.141
Conservation of
Baseline
1.474
Improved regulation of fishing
the Pantanal
and aquaculture activities along
the course of the river;
increased fish capture
Alternative
1.929
Same as above.
Conservation of fish and riverine
wildlife along the international
UPRB;
Increment
.455
Land
Baseline
.892
Rehabilitation of natural
Degradation
vegetative cover; appropriate
use of agricultural and land use
regulations; increased
agricultural productivity
Alternative
1.808
Same as above.
Increased protection of fish and
marine habitats; reduced pollution
of international waters in UPRB
Increment
.916
Stakeholder
Baseline
.99
Improved and rational use of
Involvement
water in the basin; support for
and Sustainable
national cooperation with
Development
nongovernmental stakeholders
and regional partners
Alternative
1.438
Same as above.
Strengthened regional coordination
for international waters along
UPRB; enhanced regional
cooperation and support; potential
replicability for other international
basins with multiple stakeholders
Increment
.448
Organizational
Baseline
1.099
Capacity building for the
Structure
Committee for the Integrated
Development
Management of the Upper
Paraguay and Pantanal;
improved knowledge on natural
and anthropogenic resources in
the basin
Alternative
2.998
Same as above.
Better coordination among
institutions in the Mato Grosso do
Sul and international UPRB sites;

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25
integraton of global water concerns
into environmental assessments
Increment
1.899
Integrated
Baseline
2.203
Improved management of
Watershed
natural resources in the basin;
Management
better inter-agency cooperation
Program
on watershed management
Implementation
Alternative
3.223
Same as above.
Strengthened capacities for
negotiating and reaching
agreements on shared waters;
protection of marine and fish
resources from improved watershed
management
Increment
1.020
Total
Baseline
8.326
Additional
1.462
Co-
financing*
Alternative*
16.403
Increment
5.879
Project Support
.4
Costs
Monitoring &
.05
Evaluation
PDF
.286
Preparation
Total Increment
6.615
* Includes World Bank PRODEAGRO/PROAGUA loans ($1.25m); UNEP and OAS co-financing ($.05m) and
government counterpart ($.162m) for project preparation

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ANNEX 2
LOGICAL FRAME WORK MATRIX
PROJECT PLANNING MATRIX
SUMMARY
OBJECTIVELY VERIFIABLE
MEANS OF VERIFICATION
CRITICAL ASSUMPTIONS AND
INDICATORS
RISKS
OVERALL OBJECTIVES
Improved management of the
Mitigation and prevention of land
Measurable reduction of land and
Governments2 will agree to invest
Pantanal and Upper Paraguay
degradation, wetland protection,
wetland degradation and water
the required baseline costs. This
River Basin
and control and minimization of
pollution observed through
represents a low risk as there are
persistent contaminants
regional monitoring
agreed loan-funded activities for
the major infrastructure
improvements required for the
implementation of mitigation
measures
OUTCOMES
Improved environmental
Endorsement of the Integrated
Steering Committee reports and
The principal risk facing
functioning of the Upper Paraguay
Watershed Management Program
workshop reports
development in the UPRB is that
river system through preservation
by the Ministry of Environment,
environmental considerations are
and protection of the river system
Water Resources and Legal
not properly included in projects,
and the Pantanal, a globally
Amazon, as well as by the Basin
programs, policies and actions in
significant wetland, by
Committee (CIBHAP-P) and the
order to ensure their sustainability.
implementation of strategic
basin stakeholders
However, this represents a low risk
activities addressing the root causes
as the new federal water law
of the current degradation
recently adopted by the state
governments encourages effective
and adequate environmental
management practices. In
addition, the CIHBAP-P is active in
catalyzing an effective cross-
sectoral approach to the sustainable
management of the river basin

2Governments means relevant federal, state, and municipal governments and agencies.

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Improved individual capacities for
Numbers of individuals trained
Periodic reports to the GEF and
It is assumed that the governments
economically sustainable
UNEP by the project technical
and industry will release
development, and environmental
coordinator on the execution of
appropriately qualified staff for the
protection, conservation and
training activities
purposes of training. This
management through sustainable
assumption is likely to be met
economic development in the
since the training programs will be
Pantanal and Upper Paraguay
endorsed by basin stakeholders
River Basin
Improved public awareness,
Endorsement of the public
Implementation of techniques and
The emphasis on public
stakeholder participation, and
participation plans by appropriate
strategies for the prevention and
participation and appropriate
organizational development
basin and states meetings;
control of erosion, land
agency responses in the
adoption of the training programs
degradation, sediment control,
management of the water resources
identified in the Integrated
flood control, and water supply for
of Brazil is supported as an integral
Watershed Management Program
drinking and agricultural uses
feature of federal law 9433/97;
hence it seems likely that the
assumption of government
agreement to such involvement
will be met

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28
PROJECT PLANNING MATRIX
SUMMARY
OBJECTIVELY VERIFIABLE
MEANS OF VERIFICATION
CRITICAL ASSUMPTIONS AND
INDICATORS
RISKS
RESULTS
Water Quality and Environment
Protection
Completion of the various assessments Meeting reports and various
The various assessments can be
A sound technical and scientific basis
and technical studies required for the
technical publications
finalized in a manner acceptable to
for the development of a strategic
strategic program for sustainable
the Governments. This is likely to
program for sustainable economic
development by the basin
be met since environmental
development that will catalyze
stakeholders; and endorsement by the
monitoring is currently on-going in
implementation of remedial measures
Steering Committee
the baseline development
programs and in the
hydrometeorological network
Conservation of the Pantanal
Jointly agreed community-based
Adoption by the basin stakeholders
Meeting reports and various
Governments will agree and adopt
management programs and
and Steering Committee of the means
publications; implementation of
the conservation community-based
techniques to restore degraded
of conservation and protection within
demonstration projects
management programs and
environments adjacent to reserves.
the Pantanal
techniques. This is likely to be met
Efficient mechanisms for the
since it is emphasized in the
sustainable development of
federal law 9433/97, recommended
communities
by the PCBAP and supported by
Effective means of conservation and
The Nature Conservancy and
protection within the reserves.
others
Land Degradation
A sound assessment of priority
Endorsement of the assessment and
Meeting reports and technical
That the assessment can be
environmental impacts and their
best management practices by the
publications
finalized in a manner acceptable
mitigation.
Steering Committee
to the Governments and that the
Community-based agreed best
Governments and the basin
management practices to rehabilitate
Numbers of rehabilitated degraded
Activity progress reports of the
communities will agree and adopt
critical areas.
areas
technical coordinator to the GEF
the proposed best management
and UNEP/OAS
practices. This is likely to be met
since it is emphasized in the
federal law 9433/97, and
recommended by the PCBAP

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29
Stakeholder Involvement and
Sustainable Development
Agreed sets of alternatives means of
Endorsement of alternative means of
Meeting reports, technical
Governments and the basin
economic productions.
economic productions by the Steering
publications and training
stakeholders will agree and adopt
Better informed consumers with a
Committee and adoption by the basin
programs publications
the proposed alternative means of
better understanding of ecological
stakeholders
economic development. and
principles.
Numbers of informed consumers
Activity progress reports of the
training and public environmental
Programs of training and public
Numbers of individuals trained
technical coordinator to the GEF
information will be accepted and
environmental information
and UNEP/OAS
disseminated to a wide audience.
dissemination
This is likely to be met since it is
encouraged in the federal law
9433/97, and recommended by the
PCBAP
Organizational Structure
Development
Adoption of the legal assessment and
Meeting reports, publication of
Governments will agree to and
A review of existing environmental
its Improvement recommendations
the legal assessment and of the
adopt the recommended legislative
and water resources legislation with
and the conceptual basis for DSS and
conceptual and technical basis
and institutional changes and will
proposals for specific actions.
hydrological models by the Steering
for DSS
support the public participation
An information exchange network
Committee; inclusion of the DSS in
programming, staff training and
A conceptual and technical basis for
economic development program
Activity progress reports of
strategic planning. This is likely to
the preparation of a basin-wide
Increased information exchange
technical coordinator to the GEF
be met as coordinated management
system of decision support and
among basin stakeholders
and UNEP/OAS
actions are embodied in the new
hydrological models to be prepared
Numbers of individuals trained
federal law 9433/97 which seeks to
by loan-funded programs.
enhance and strengthen the ability
Training programs on environmental
of the CIBHAP-P to undertake
issues, protection and rehabilitation
planning and management
methods for the community at large
activities within the basin

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30
Implementation of the Integrated
As the Implementation of the
Watershed Management Program for
Adoption of the Integrated watershed
Meeting reports and Watershed
Integrated Watershed Management
the Basin
Management Plan by the basin
Management Program
Program builds upon the synthesis
A Watershed Management Program
stakeholders and by the Steering
of data and experiences, feasibility
Committee
assessments and costs analyses
developed in the five preceding
activities, it is imperative that
these activities be finalized
according to the workplan and in
an acceptable manner. Based on
the above assumptions, this is
likely to happen.

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31
LOGICAL FRAME WORK MATRIX (cont.)
PROJECT PLANNING MATRIX
SUMMARY
OBJECTIVELY VERIFIABLE
MEANS OF VERIFICATION
CRITICAL ASSUMPTIONS
INDICATORS
AND RISKS
COMPONENTS/ACTIVITIES
Water Quality and Environment
Protection
Availability of various drafts and final Publication of assessments,
It is assumed that the various
Assessment of root causes of
versions of the assessment reports and consultant reports and meeting
drafts and final versions of the
agricultural soil loss, agro-chemical
development of a strategic program
reports
assessment reports and strategic
impacts, urban water use and
for sustainable economic development
program for sustainable economic
hydrological impacts, mining impacts, and inclusion of the findings in
development will be ready on
river navigation impacts and fisheries
subsequent components/activities
time according to the agreed
impacts
workplan. However, contingency
delays may happen and their
effects cannot really be evaluated
Conservation of the Pantanal
Demonstration of the feasibility of
Preparation of community-based
Appropriate action at the state and
community-based management
management programs and training
local level and community level to
Governments and the basin
Programs and training, and the
according to agreed workplan.
implement the proposed programs community at large will agree to
feasibility of buffer zones as effective
Adoption of the management
the management programs and
means of conservation and protection
programs and the concept of buffer
training and with the concept of
within the preserves
zones at the community level
buffer zone. This seems likely to
Number of people trained
be achieved since the basin
Numbers off management measures
communities are to be involved
implemented
in the identification and
demonstration of conservation
measures as well as in the
dialogue process. Thus, actions
formulated through this process
will benefit from community
insights and experiences and will
be acceptable to the communities

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32
Land Degradation
Protection and/or rehabilitation of
Preparation of draft proposals and
Appropriate action at the state
Governments and the basin
critical areas in the basin: i.e.
initiation of state and community
and community levels to
community at large will agree to
quantification of priority
level discussions according to the
implement the proposed
the environmentally-sound
environmental impacts and their
agreed workplan
environmentally-sound practices
practices within agricultural,
mitigation, determination of best
mining and urban economic
management practices and
Adoption of environmentally-sound
sectors aiming at the protection
demonstration of their utility in
practices within agricultural, mining
and/or rehabilitation of critical
mitigating priority environmental
and urban economic sectors aiming at
areas by the basin community.
problems through community-based
the protection and/or rehabilitation of
This seems likely to be met since
land rehabilitation efforts
critical areas by the basin community
the basin communities are to be
involved in the identification and
demonstration of remedial
measures as well as dialogue
process. Thus, actions formulated
through this process will benefit
from community insights and
experiences and will be acceptable
to the communities

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33
Stakeholder Involvement and
Sustainable Development
Identification of alternative means of
Preparation of draft proposals and
Appropriate action at the state
Governments and the basin
economic production or alternative
initiation of state and community
and community -based levels to
community at large will agree to
economic activities that enhance the
level discussions according to the
implement the proposed
the alternative economic activities,
environment and/or minimize
agreed workplan
alternative economic activities.
awareness materials, and to
environmental degradation
training programs . This seems
Initiation of basin communities in
Adoption of the alternative economic
Reports of training courses and
likely to be met since the basin
practical "hands on" type
activities by the basin community
numbers of individuals trained
communities are to be involved in
involvement in the identification and
the identification and dialogue
demonstration of remedial measures
Preparation and dissemination of
process. Thus, actions formulated
as well as in the decision making
information and awareness materials
through this process will benefit
process.
from community insights and
Compilation and dissemination of
Preparation of training programs and
experiences and will be acceptable
training programs on
disbursement records according to the
to the communities
environmentally-sustainable economic agreed workplan
development and programs of public
environmental information.
Organizational Structure
Development
Preparation of draft analyses and
Appropriate action at the basin
Governments and the basin
Strengthening and improvement of
proposals for specific legislative
level to implement proposed
community at large will agree to
institutional and staffing capabilities
actions, and initiation of basin level of
actions .
the proposals of specific legislative
providing an effective framework in
discussions according to workplan
actions and related capacity
which activities of professionals are
building programs. This seems
carried out, including legal,
likely to be met since the basin
structural, economic and
Disbursement records according to
Reports of training courses and
communities are to be involved in
administrative activities as well as
agreed workplan
numbers of individuals trained.
the dialogue process. Thus,
through the provision of training for
actions formulated through this
institutions and individuals
process will benefit from
community insights and
experiences and will be acceptable
to the communities. Such reforms
are also supported and encouraged
by the federal law 9433/97
Implementation of the Integrated
watershed Management Program for
the Basin
Preparation of drafts according to
Publication and adoption of the
It is assumed that the governments

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34
Implementation of an Integrated
agreed workplan
Integrated Watershed
and basin communities will
Watershed Management Program
Management Program
actively cooperate in the
based on the synthesis of data and
development and further
experience, feasibility assessments
Dissemination of information
implementation of the Integrated
and cost analysis developed in the
Watershed Management Program
preceding activities,
This assumption is likely to be met
Dissemination and initial
as the governments and basin
implementation of management
communities will be directly
actions to enhance international
involved in the preparation of the
coordination and communication with
IWMP.
other riparian countries.

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ANNEX 3
STAP ROSTER TECHNICAL REVIEW
Technical Review of the GEF Project entitled:
Integrated Watershed Management Programme for the Pantanal
and the Upper Paraguay River Basin
Claudio Campagna
Centro Nacional Patagónico
9120 Puerto Madryn, Argentina
The Upper Paraguay River Basin (UPRB) is one of the world´s most valuable freshwater
environments. Covering a large area--shared by three countries--this environment maintains a
rich and unique terrestrial and aquatic wildlife. The UPRB is now affected by growing
unsustainable developmental practices that are devastating many parts and jeopardise the future
of the entire region. Biogeographically, several flora and fauna units converge at this point. Within
the boundaries of this river basin is the Pantanal, a vulnerable wetland rich in endemic species,
sensitive to improper land and water use. Over 1,000 species of vertebrates contribute to the
biological diversity of this large wetland. Human population is sparse but adds up to about one
million people, mostly living in urban areas. Mining, agriculture and fishing are major
development activities, and there is pressure for increased levels of economic activity. Pollution
of land and water, land clearing, soil erosion and overfishing are some of the consequences of poor
management and non-existant planning. Un-sustainable practices are producing negative impacts
on the quality of human life, the future use of economic resources and the conservation of the
biological value of the wetland. The root causes of the problems affecting the biodiversity of the
Pantanal and the sustainability of present activities have been identified. Strategic guidelines for
the conservation of the area have been summarised in a Plan for the Conservation of the UPRB,
supported by The World Bank. The present project derives from the above-mentioned Plan and
represents a series of actions aimed at mitigating the effects of increasing urbanisation, mining and
agro-industrial development on the biological and water resources of the Pantanal. In general
terms, this is an excellent proposal that addresses the protection of one of the world's most
valuable treasures and deserves full support.
Scientific and technical soundness of the project
The project addresses broad, heterogeneous and complex problems in management and
conservation of this globally significant and diverse wetland. Some of the basic objectives are to:
(a) protect the habitat (land and water) and its biodiversity against present mismanagement
actions, (b) diagnose, recommend and implement measures to enhance public awareness about the

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relevance of the biological resources and the need to protect them, (c) promote sustainable
economic activities that must replace present non-sustainable practices, (d) provide tools to
strengthen and support institutions, train professionals and educate the community at large on the
implementation of management programs, (e) develop an integrated WMP as a synthesis of the
major activities conducted during the project. The analysis of the root causes of aquatic
environmental degradation, done prior to the preparation of the project document, is a valuable
contribution containing a diagnosis of current problems. This analysis has been used wisely as a
basis for the development objectives.
All the elements in the work program have clear objectives but most of the components
cannot be approached within a scientific framework. As this is not a scientific project--the
strength of the project is in education, training, policy and sustainability of economic
practices--the specific methods that will be used to accomplish those objectives that are within
the realm of science were not presented in the proposal or were defined in general terms. This
precludes an in-depth analysis of the scientific soundness of the proposed work. From a technical
standpoint, the objectives of the project will allow the acquisition of specific information and
experience necessary to solve priority actions identified in the PCBAP.
Global environmental benefits and/or drawbacks of the project
To assess the benefits of the project a list of success criteria for each of the activities to be
implemented, would have been useful.
The project will be beneficial for the biodiversity of the Pantanal and the human
communities that depend on the living resources of the region. The Pantanal and the UPRB are
part of a larger basin that feeds into the Uruguay and Parana rivers. Although it is not clear how
this project links with these other water systems, it has the potential to affect a much larger
environment than that which is addressed by its specific actions.
There are no major drawbacks of this project. The concept of sustainable development may
require greater discussion which goes beyond this project. The section on risks of the document
addresses only a few issues related to the sustainability of the implementation of the proposed
activities. It states that the main risk for the conservation of the resources of the Upper Paraguay
Basin is that development initiatives do not include undesirable environmentally side effects. The
consequences are a decline in biodiversity and biomass, pollution, land degradation and loss of
economic opportunities. A more thorough analysis of the risks to the success of the present
project would be appropriate. For example, the UPRB is shared by Brazil, Bolivia and Paraguay.
Although most of the Pantanal system within this basin is in Brazilian territory, what could the
effects on the whole system be if Paraguay and Bolivia do not, simultaneously, act to correct their
mismanagement practices. How much could a truly international approach add to the
conservation of the area? A non-simultaneous approach could have negative effects on the
expected benefits for the Brazilian side of the ecosystem.

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The project within the context of the goals of GEF
This project addresses relevant issues and concepts proper to large-scale, sustainable-
development, community-based initiatives. Strategically, the project fits well within the
framework of the GEF initiatives and has identified specific investment actions that meet GEF
criteria. It also: (a) identifies the main priorities for the preservation of the Pantanal, (b) identifies
actions to revert unsustainable development and (c) outlines a co-ordinated program to introduce
environmentally sound management practices and procedures.
Regional context
The project is being proposed by the Brazilian Government, but it addresses a
transboundary environmental issue that also involves Paraguay and Bolivia. It would be
important to increase the efforts for an international, co-operative strategy to protect the water
and biological diversity of the UPRB and related biogeographic areas. Within the Brazilian
territory, efforts were made to integrate municipal, state and federal interests.
Replicability of the project
Although the project has been designed to fit the specific needs of the region where it will be
conducted, some of these needs are global (pollution, overfishing, lack of institutional
responsibilities, limited human resources, unsustainable development of extractive practices). The
general conceptual framework of this project should be applicable to other ecosystems similar to
the UPRB. The Paraguay River is one of the three components of the Rio de la Plata Basin
System that also includes the Uruguay and Parana rivers. The combined basin includes other
wetlands as part of this large system of rivers that drain about 20 % of the South American
continent.
Sustainability of the project
The concept of sustainable activities has permeated every aspect of the project and the need
for sustainability has been considered for virtually every practice. However, the real test will
depend on the response of the community and stakeholders. Theoretically, the activities planned
could be sustainable. Practically, success will depend on broad implementation of the education
and training programs, as well as the alternative economic strategies that are proposed to a
community that has a history of neglecting environmental issues.
Linkages to other programmes and action plans
The project document addresses the issue of integration with other national and
international initiatives. The developmental and management problems that will be addressed by
the project are known to the Federal Government of Brazil and to the states of Mato Grosso and
Mato Grosso do Sul that have jurisdiction over the area. Relief efforts concerning the effects of
mismanagement of the Pantanal are already underway. The federal Constitution addresses the

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Pantanal as an area of national importance. A committee has been created to implement the federal
water law in the region. A plan for the conservation of the UPRB and the Pantanal has been
designed with the support of The World Bank. This project is part of the implementation actions
indicated in the latter plan and is also consistent with programs of the Ministry of Environment
of the Federal Government of Brazil.
At the international level, the project appears to be consistent with the UNEP
Environmentally Sound Management of Inland Waters planning process. It is less clear how it
will be linked to initiatives of the other two countries involved in this trans boundary wetland.
During the process of preparation of the project, representatives of the neighbouring countries
were consulted and the implementation arrangements consider the participation of Bolivia and
Paraguay by the way of committees within the Steering Committee of the project.
Other beneficial or damaging environmental effects
This project has no apparent damaging environmental effects. The main negative effect
could be the consequence of errors in the process of identifying the root causes of environmental
degradation or in stating priorities and actions.
Degree of involvement of stakeholders in the project
The project includes activities designed to integrate the private sector, public officials and
the community in general in the conservation initiatives. There are many elements in the work
program that consider the interests of persons and agencies that have commercial or institutional
responsibilities in the management and protection of the water resources and wetlands of the
Pantanal and the UPRB.
Capacity-building aspects
There are plenty of work programs that will strengthen and improve institutional and
staffing capabilities at the state and municipal levels. Training activities involve Science Educators
that will implement education programs in schools, community extension agents that will support
the implementation of community-based management practices, and technicians in the areas of
hydrology and environmental science to increase local capacity for implementing management
programs.
Innovativeness of the project
This project is not innovative in its objectives or practices, however, there is little room
for innovation in a field which requires hard work and commitment in that oldest of human
endeavors: education. The project is, nonetheless, an excellent example of a large-scale initiative
for a large-scale environmental problem.
Implementing Agency Response

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Dr. Campagna's review is strongly supportive of this project. However, he does note the
importance of an holistic approach to the implementation of management actions within this
mutlinational basin. To this end, Component VI of the project specifically provides for the
sharing and dissemination of knowledge and experiences gained through the implementation of
this project within Brazil to its neighboring riparian countries through seminars and other
professional exchanges. Interchange of such knowledge and experiences at both the technical and
legal-political levels will encourage adoption of best management practices and measures
throughout the basin. The OAS, as Executing Agency, in its regional role and function is be
strongly supportive of this type of information exchange, as is the use of the Inter-American
Water Resources Network (IWRN) for which the OAS provides the Secretariat.

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ANNEX 4
ROOT CAUSES ANALYSIS
1. Background. The UPRB is the second largest river system in Brazil, incorporating within its
boundaries the Pantanal, a wetland of global value due to its high degree of biological endemism
and potential sensitivity to hydrological perturbations and contamination from land use activities.
The basin is also well endowed with a rich variety of natural resources, including minerals, fish,
wildlife, and lands suitable for agricultural and pastoral development. In addition, the river and its
tributaries form a natural transportation corridor serving southern Brazil. As a consequence, the
river and its watershed have been subjected to intense economic development pressures in the
recent future, pressures that appear to be increasing with time. In recognition of these increasing
developmental pressures, the Federal Government of Brazil and the riparian states have initiated
several actions designed to protect the resources of the region and contribute to the sustainable
development of the area. These actions have included the designation, within the federal
Constitution, of the Pantanal as a resource of national importance, the creation of a river basin
committee tasked with monitoring and implementing the federal water law within the UPRB, and
the completion, with the assistance of The World Bank, the plan for the conservation of the
UPRB and Pantanal, PCBAP.
2. Issues. In order to move forward with the implementation and further definition of actions
indicated under the PCBAP, the Federal Government of Brazil invited the United Nations
Environment Programme, Organization of American States, The World Bank and the Global
Environment Fund Secretariat to field a reconnaissance mission during 1996, which mission
resulted in the invitation to UNEP to prepare a request to the GEF for a project development
facility grant to develop a watershed management program for the Basin. In the PDF proposal,
seven issues were identified on the basis of findings set forth in the PCBAP and other extant
documentation and as the result of discussions between the reconnaissance mission and officials
representing local communities, governmental and nongovernmental agencies, and federal agencies.
These issues were: loss of wetland, land degradation, inadequate of stakeholder participation,
unsustainable levels of economic development, a need for widespread environmental education,
the need for more effective institutions, and the need for enhanced staffing capacity at all levels.
During the PDF process, additional issues were identified, including declining fisheries, flooding
and hydrological changes in river flows, increasing urbanization and industrialization (mining and
agro-industrial development), and water quality degradation of surface and ground waters.
3. Problems and Symptoms. Each of the foregoing issues is indicative of specific problems or
consequences that have, direct impacts on the biological and water resources within the basin.
3.1 Problems related to wetlands. Problems related to wetlands include declining species
diversity among terrestrial flora, diminishing numbers of birds and reptiles (especially the caiman
or jacare), loss of diversity among mammals, and declining fish numbers and diversity. Some of
the loss in wetlands may be related to wildlife exploitation, both for hides and live-animal trade,
and commercial exploitation, in the case of fish. Hunting pressures have also selectively modified

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species composition and numbers, especially among fishes, mammals and birds that historically
appeared to be almost limitless.
3.2 Problems related to land degradation. Problems related to land degradation include
draining of wetlands, conversion of lands for agricultural purposes, disruption of the land surface
for mining and residential purposes, and introduction of exotic species of plants and animals.
Industrial farming operations not only disturb large areas of land, but also the land clearing
practices which have resulted in the deforestation of river banks and uplands, and the water use
regimes and types of crops and livestock, have aggravated the severity of land degradation in the
basin. Further, dredging for river navigation has exacerbated problems of riverbank erosion.
3.3 Problems related to stakeholder involvement. Problems related to stakeholder
involvement historically have been related to the lack of appropriate fora for encouraging
stakeholder participation, and the low population density, primarily on a subsistence basis, that
has exacerbated this lack of participation. In recent years, urbanization and industrialization has
resulted in an influx of transient workers with limited stake in the region beyond the fact of their
employment, although increased tourism has resulted in a wider appreciation of the value of the
basin among environmentalists and others. In many cases, however, this latter interest has been
issue-driven and related to specific economic development proposals.
3.4 Problems related to economic development. Problems related to economic development
include unregulated exploitation of lands and natural resources for commercial purposes. Agro-
industrial development in particular imposes unsustainable levels and types of production on the
basin. Large numbers of subsistence farmers and commercial fisherfolk also operate on an
increasingly unsustainable basis.
3.5 Problems related to environmental education. Although environmental awareness within
the basin communities has improved in recent years, the small-scale and often subsistence nature
of economic activities in the basin has contributed to a neglect of environmental considerations.
3.6 Problems related to institutions. Problems related to institutions, both legal and
regulatory, and agency structures, historically have been related to lack of appropriate laws and
regulatory regimes for controlling environmental pollution, and implementing and undertaking
compliance monitoring and policing of violators. Funding, which has been in chronic short
supply, has not allowed creation of laboratories, police forces, and other necessary appurtenances
to control and regulate environmental pollution and degradation. Further, actions that were able
to be undertaken were fragmented among agencies and between states often resulted in less than
effective management of the river and watershed. Currently, local and national initiatives are
strengthening water resources institutions in the basin, including the creation of the river basin
committee under the new federal water law that provides a mechanism for integrated management
of the basin.
3.7 Problems related to human resources. Related to the lack of institutional capacity,
problems related to human resources include a paucity of trained staff, lack of authority to

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control environmental problems, and fragmented and parochial jurisdictions that have failed to
bring a comprehensive and cohesive approach to watershed management in the Upper Paraguay
River. Initiatives set forth in PCBAP have proposed mechanisms to rectify many of these
shortcomings, while the promulgation of the new federal water law has given the necessary legal
effect to these recommendations.
3.8 Problems of fisheries. Problems related to fisheries include annual fish kills during low
water periods, overharvesting of fishes for commercial and recreational purposes, contamination
of fishes by heavy metals and agro-chemicals, and changes in species composition due to selective
harvesting as a result of harvesting and/or changes in predation pressure as a consequence of
changes in species composition. Increased tourism in recent years has increased angling pressure
on fish resources.
3.9 Problems of hydrology and flooding. Problems related to hydrological processes include
flooding and channel movement within the system, with the most severe problems being observed
in the Rio Taquari which has been subject to intense farming pressure, land clearance and
deforestation, and changes in soil condition. Further, cross river migrations of non-indigenous
cattle have been implicated in the failure of river berms and the diversion of river flows into
traditionally non-flooded areas. Likewise, intentional cutting of river meanders and draining of
wetlands has altered river flow patterns often in negative ways.
3.10 Problems of urbanization and industrialization. Problems related to urbanization and
industrialization include surface or open cast mining for many metals and minerals, agro-industrial
product processing (alcohol, dairy and meat processing), residential area encroachment without
adequate wastewater treatment and solid waste management, and the development of export
processing zones (such as that associated with the gas pipeline linking Brazil with southern
Bolivia). Mining operations contribute to sedimentation of the river by disturbing the land
surface, while refining of extracted metals, especially gold, result in the use and release of mercury
and other hazardous wastes also directly or indirectly from slimes dumps and slag heaps.
3.11 Problems of water quality. Problems related to water quality include contamination of
surface and ground waters, including bacteriological contamination, heavy metal contamination,
contamination by synthetic organic (agro-) chemicals, organic matter loading, and pH
modification, many of which have a significant anthropogenic component. Siltation due to
erosion of urban, industrial and agricultural lands has also contributed to the decline in water
quality in recent years.
4. Root Causes. Despite the apparent proliferation of problems in the UPRB, there would
appear to be relatively few root causes that contribute to the majority of the problems observed.
4.1 Anthropogenic causes. People have contributed almost exclusively to the degradation of the
UPRB. As the population of the UPRB, rates of non-sustainable extraction of (renewable)
natural resources (overexploitation of terrestrial flora, terrestrial fauna and aquatic fauna) have
increased, while primary extractive industries are particularly destructive as they often lack post-

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extraction site remediation. In the first instance, the influx of population into the basin has led to
unplanned urbanization that in turn has contributed untreated human wastes and other
contaminants to the system. These populations have also created an increased demand for
foodstocks, including fish, cattle and row crops that have been met by overfishing, cultivating
marginal lands (through increasingly large additions of agro-chemicals to maintain soil fertility),
and grazing of non-native cattle and growing of non-native crops which selectively deplete the soil
and insidiously modify natural floral communities. For example, introduction of livestock has led
to the selective grazing of certain forbs that allowed the rampant growth of less desirable plant
species that subsequently required control using chemical herbicides. In extreme cases, the native
vegetation was totally replaced with non-native grasses that lacked drought resistance, died back
in the dry season, and failed to provide soil cover at the start of the wet season--a fact that
directly contributed to the high rate of soil loss experienced in the basin. Superimposed on these
causative factors are modifications of the natural hydrological regime of the river which has
proven especially destructive to organisms dependent on the quantity, quality, timing and rate of
water flows for reproduction and survival, and to groundwater sources dependent upon surface
water flows for recharge.
4.2 Legal and institutional causes. While human land use activities have contributed
significantly to the degradation of the Upper Paraguay River ecosystem, legal and institutional
shortcomings have historically exacerbated these problems by failing to control or regulate human
actions in the watershed. While most of these shortcomings have been, or are currently proposed
to be, rectified through state, federal and external interventions and initiatives, substantial and
costly actions are needed to overcome the historic lack of regulation, and lack of an holistic
approach to ecosystem and economic development.
5. Actions Identified to Address Root Causes. To help in overcoming the historical inertia
inherent in the causative factors identified above, emphasis in project design has been given to
those actions which address root causes that can be humanly managed; i.e., those anthropogenic
causes and legal and institutional causes that can be modified through planning and subsequent
implementation of corrective actions. Natural root causes generally cannot be effectively
controlled by human actions and hence are of lesser importance from a watershed management
perspective (although knowledge of these causes is an essential starting point from which to
implement interventions to address human and institutional causes). The following actions have
been proposed to address the human causative factors of environmental degradation in the UPRB.
5.1 Acquisition of basic scientific information and dissemination of knowledge. Project
activities have been developed to acquire supplementary baseline information to support
determination of root causes, provide quantitative insights into specific watershed management
practices, and investigate alternative courses of action to ensure sustainable use. In addition, a
further group of activities has been proposed as a means of synthesizing and disseminating
information gathered through diagnostic studies. These include, inter alia, components which
demonstrate ways in which citizens can contribute to the protection of aquatic avi-fauna in the
basin, which address the need for public informational programming to enhance citizen
participation in the decision-making process, and which train community-based extension agents

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to disseminate information on issues and mitigation measures to citizens.
5.2 Promotion of financially-sound, integrated watershed management. Project activities
have also been developed to identify alternative, sustainable economic activities that will
contribute to the maintenance of the ecological integrity of the UPRB. These projects include,
inter alia, components which address the conjunctive use of water resources in the Rio Taquari
sub-basin, which provide insights into the development of community-based eco-/ethno-tourism
alternatives for economic development, which investigate alternative means to achieve a
sustainable fishery in the basin, and which are designed to strengthen local government water
resources management capabilities in the Rios Apa and Miranda sub-basins as a prototype for
use elsewhere in the basin.
5.3 Development of an holistic institutional watershed management framework. Project
activities have been developed to provide an integrated management framework within which river
basin management activities can be identified and carried out. Project activities in this category
include, inter alia, components which address the need to harmonize legal instruments used
within the multinational basin of the Upper Paraguay River, and which encompass the synthesis
and integration of the strategic elements of the foregoing project activities in the integrated
watershed management plan.
5.4 Support to river basin management and regulatory agencies. Finally, project activities
have been developed to provide directed support to strength the operational capabilities of the
river basin committee and related civic organizations. These activities include, inter alia,
components which support the Committee for the Integrated Management of the UPRB and
Pantanal (CIHBAP-P), and which promote the establish of intermunicipal sub-committees within
the basin.
6. Concluding remarks. Significant progress has been made in the definition of issues and
problems (and their root causes in some instances) within the UPRB. Work proposed under the
GEF International Waters focal area builds on this progress in seeking to extend local actions to
the multinational basin of the Upper Paraguay River. This work is predicated upon the
principles of civic involvement, public participation, and responsible governmental action at all
levels of government, and embodies a comprehensive program of research, demonstration
projects, and information dissemination designed to identify a framework for subsequent remedial
measures and management actions that will result in the sustainable economic development of this
critical region of global significance.

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ANNEX 5
PUBLIC INVOLVEMENT PLAN SUMMARY
1. The emphasis on public participation in the management of the water resources of Brazil is
supported as an integral feature of the Federal Law 9433/97 on water resources management
policy. In one of the first applications of this new water law, more than 200 persons,
representing almost 60 civil, corporate, nongovernmental and governmental entities (having
municipal, state, federal, and international interests) contributed more than 45 detailed project
documents which were presented at three public meetings convened during the PDF process.
These public meetings were held within the basin on 28 November 1997 at Cuiabá, on 12
December 1997 at Corumbá, and on 5 February 1998 at Campo Grande.

2. A list of those institutions that participated in the public meetings convened prior to the
preparation of this project document, and which are expected to participate in project
implementation as well as subsequent public meetings, is presented below. Governmental
organizations are categorized as federal, state, or municipal government level agencies.
Nongovernmental organizations and other governmental bodies are also listed. State governmental
agencies and nongovernmental organizations are identified by state; namely, Mato Grosso (MT)
and Mato Grosso do Sul (MS). Where the participating organizations are known by an acronym,
the acronym is also shown.
3. FEDERAL GOVERNMENT ORGANIZATIONS
· Ministério do Meio Ambiente dos Recursos Hídricos e da Amazônia Legal - MMA
-
Secretaria de Recursos Hídricos - SRH
-
Secretaria do Meio Ambiente - SMA
-
Instituto Brasileiro do Meio Ambiente - IBAMA
· Ministério do Planejamento e Orçamento - MPO
-
Secretaria de Políticas Urbanas - SEPURB
· Ministério da Marinha
-
Capitania dos Portos
· Administração Hidrovia do Paraguai
· Comitê de Integração da Bacia Hidrográfica do Alto Paraguai-Pantanal - CIBHAPP
· Departamento Nacional da Produção Mineral - DNPM
· Empresa Brasileira de Pesquisa Agropecuária - EMBRAPA Pantanal/EMBRAPA Oeste
· Instituto de Pesquisas Hidráulicas ­ IPH/UFRGS
· Universidade Federal de Mato Grosso - UFMT
· Universidade Federal de Mato Grosso do Sul - UFMS


4. STATE GOVERNMENT ORGANIZATIONS

· Secretaria do Estado de Meio Ambiente e Desenvolvimento Sustentável - SEMADES (MS)
-
Superintendência de Meio Ambiente

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46
-
Fundação Pantanal da SEMADES
· Empresa de Pesquisa, Assistência Técnica e Extensão Rural de Mato Grosso do Sul -
EMPAER (MS)
· Polícia Militar Florestal (MS)
· Saneamento Básico do Estado de Mato Grosso do Sul - SANESUL (MS)
· Universidade para o Desenvolvimento do Estado e da Região do Pantanal - UNIDERP (MS)
· Secretaria Especial do Meio Ambiente - SEMA (MT)
· Secretaria de Desenvolvimento e Turismo ­ SEDTUR (MT)
-
Fundação Estadual do Meio Ambiente - FEMA (MT)
· Secretaria de Planejamento ­ SEPLAN (MT)
· Defesa Civil (MT)
· Empresa de Saneamento do Estado de Mato Grosso - SANEMAT (MT)
· Programa de Desenvolvimento Agro-Ambiental ­ PROGEAGRO (MT)


5. MUNICIPAL GOVERNMENT ORGANIZATIONS

· Consórcio Intermunicipal para o Desenvolvimento Sustentável da Bacia do rio Taquarí -
COINTA (MS)
· Prefeitura Municipal de Antônio João (MS)

· Prefeitura Municipal de Corumbá (MS)
-
Secretaria Municipal de Meio Ambiente e Turismo - SEMATUR (MS)
· Prefeitura Municipal de Costa Rica (MS)
· Prefeitura Municipal de Coxim (MS)
· Prefeitura Municipal de Pedro Gomes (MS)
· Prefeitura Municipal de Rio Verde (MS)
· Prefeitura Municipal de São Gabriel (MS)
· Prefeitura Municipal de Cuiabá (MT)
· Prefeitura de Municipal de Poconé (MT)
-
Secretaria de Turismo e Meio Ambiente (MT)
· Prefeitura Municipal de Várzea Grande (MT)


6. NONGOVERNMENTAL ORGANIZATIONS (NGOs)

· Associação Ecológica de Defesa da Bacia do rio Miranda e do Pantanal - ECOPAN - Campo
Grande (MS)
· Centro de Ação Ambiental do Pantanal - ECOA - Campo Grande (MS)
· Conservation International do Brasil - Campo Grande (MS)
· CONTI MAXI Ltda - Corumbá (MS)
· Federação de Agricultura do Mato Grosso do Sul - Campo Grande (MS)
· Federação das Indústrias de MS - FIEMS - Campo Grande (MS)
· Federação de Pescadores de Mato Grosso do Sul - Corumbá (MS)
· Fundação para Conservação da Natureza - FUCONAMS - Campo Grande (MS)
· Granel Química Ltda - Ladário (MS)

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47
· Projeto Novas Fronteiras - PNFC - Campo Grande (MS)
· Sindicato Rural de Corumbá - Corumbá (MS)
· Sociedade de Defesa do Pantanal - SODEPAN - Campo Grande (MS)
· Associação Diamantinense de Ecologia - ADE - Diamantina (MT)
· Associação Ecológica Melgassense - AMEC - Barão de Melgaço (MT)
· Associação para Recuperação e Conservação do Ambiente - AREA - Cuiabá (MT)
· Associação Rondopolitana de Proteção Ambiental - ARPA - Rondonópolis (MT)
· Cooperativa de Peixe - COOPERPEIXE - Cuiabá (MT)
· Ecopantanal - Cuiabá (MT)
· Federação da Agricultura de Mato Grosso ­ FAMATO (MT)
· Fórum das Organizações de Meio Ambiente e Desenvolvimento - FORMAD - Cuiabá (MT)
· Fundação Ecotrópica - Cuiabá (MT)
· Sindicato Rural de Mato Grosso - Cuiabá (MT)
· Instituto Internacional de Ecologia da Amazônia - São Paulo (SP)


7. INTERNATIONAL ORGANIZATIONS

· Organização dos Estados Americanos ­ OEA/OAS
· Programa das Nações Unidas para o Meio Ambiente ­ PNUMA/UNEP

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48
ANNEX 6
BIBLIOGRAPHY
1. This annex presents a list of publications on the UPRB that were referred to during the
PDF activities or that were prepared as a result of the PDF activities. These documents,
categorized into publications relating to (a) water resources management, (b) natural resources
and environment, (c) public participation and consultation, (d) institutional strengthening and
support, and (e) regional economy, together with the project concepts presented during the
public participation workshops (summarized in Annex 4), form the documented basis for the
Implementation of the WMP proposed as the outcome of this project.
2. WATER RESOURCES MANAGEMENT
Brasil / MMA / PNMA, Plano de Conservação da Bacia do Alto Paraguai - Pantanal - PCBAP.
Volume 3 - Análise Integrada e Prognóstico da Bacia do Alto Paraguai. Ministério do Meio
Ambiente, dos Recursos Hídricos e da Amazônia Legal, Projeto Pantanal, Brasília, 1997.
Brasil / MMA / BID, Programa de Desenvolvimento Sustenavel do Pantanal ­ Projeto Pantanal.
Carta-Consulta a COFIEX, Brasilia, dezembro, 1997.
Bruijnzeel, L.A. Predicting the hydrological impacts of tropical forest conversion: The need of
integrated research. Chapter 2: Amazonian Deforestation and Climate, Eds: Gash, J.H., Nobre,
C.A., Roberts, J.M., and Victoria, R.L.; John Wiley & Co. Chichester, United Kingdom, 1996.
Carvalho, N. de O., Ayres R.M. e Rocha, J.P.G. Estudos Sedimentológicos da Bacia do São
Lourenço, MT ELETROBRÁS/ Universidade Federal de Mato Grosso. Cuiabá, 1992.
Carvalho, N. de O. e Monteiro, A.E. Sistema de Alerta e Previsão de Cheias do Pantanal.
ELETROBRAS/ Companhia de Pesquisas de Recursos Minerais. Rio de Janeiro, 1991.
DMH. Balance Hídrico Superficial de Paraguay. Asunción, 1992.
DNOS. Estudos Hidrológicos da Bacia do Alto Paraguai. 4 Volumes. Rio de Janeiro, 1974.
DNPVN. Estudo Hidrológico do Rio Paraguai. Período 1966-1972 Relatórios Parciais e
Relatório Final. Hidrologia Comercial Ltda. Rio de Janeiro, 1973.
Giusti, E.V. and Lopez, M.A. On the Hydrology of the Paraguay River. USGS. Selected Papers in
the Hydrologic Sciences. Reston, Virginia, USA, 1984.
Lopez, M.A. et al. Hydrologic Hazards in Paraguay with Special Reference to the Floods of 1983.
USGS, Reston, Virginia, USA, 1983.

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PNMA. A Análise Integrada e Prognóstico da Bacia do Alto Paraguai: Hidrossedimentologia.
Programa Nacional de Meio Ambiente. Plano de Conservação da bacia do Alto Paraguai. vol. 3.
Ministério do Meio Ambiente, dos Recursos Hídricos e da Amazônia Legal, 1997.
PNUD. Proyecto de Mejoramiento de la Navegación del Río Paraguay. PAR/TS/006. Asunción,
1975.
PNUD. Estudio de Inundaciones del Río Paraguay. Asunción, 1979.
PNUD. Modelos Estadísticos para Previsión de Niveles del río Paraguay. PAR/80/002.
Asunción, 1980.
Ribeiro dos Anjos, N. da F., Anderson, R.J., and Diaz, F.D. An Analysis of Flooding in the
Paraná/Paraguay River Basin. The World Bank, Latin America Technical Department,
Environment Division, Washington, September 1993.
SUDECO. Estudo de Desenvolvimento Integrado da Bacia do Alto Paraguai- EDIBAP. Convênio
Governo Brasileiro. PNUD- OEA, Brasília, 1979.
Tucci, C. E. Controle de Enchentes. Capítulo de Hidrologia Ciência e Aplicação. ed.: Tucci, C.,
Editora da Universidade, Edusp, ABRH, São Paulo.
UNESCO/UNDP. Hydrological studies of the Upper Paraguay River Basin ( Pantanal) (1966-
1972) Technical Report. Bra. 66.521. Paris, 1973.
USCE. Application of the SSARR model to the Upper Paraguay River Basin. Portland, Oregon,
1972.
Wade, J.S., Tucker,J.C., and Hamann,R.G. Comparative Analysis of the Florida Everglades and
the South American Pantanal. Case study 1. Proceedings of the Inter-American Dialogue on Water
Management. Miami, October, 27 ­ 30, 1993.
3. NATURAL RESOURCES AND ENVIRONMENT
Adámoli, J.A. O Pantanal e suas relações fito geográficas com os cerrados. Discussão sobre o
conceito Complexo Pantanal. In: Congresso Nacional de Botânica, 32 Teresina, Anais, Sociedade
Brasileira de Botânica, p.109-119, 1981.
Alvarenga, S.M. et al., Estudo geomorfológico aplicado à Bacia do Alto Paraguai e Pantanais
Matogrossenses. B Téc. Projeto RADAMBRASIL, Sér. Geomorfologia, BRASIL. Ministério de
Minas e Energia, Salvador, 1, 1984.
Barbosa, A.C., Conhecimento Científico para Gestão Ambiental. Amazônia, Cerrado e Pantanal. -
Tomo I - Legislação e Meio Antrópico - Agentes Químicos Tóxicos. MMA, IBAMA, Brasília,

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1995.
Brasil / MMA / IBAMA. Gerenciamento de Bacia Hidrográfica. Aspectos Conceituais e
Metodológicos. - Projeto Tecnologias de Gestão Ambiental, Brasília, 1995.
Brasil / MMA / IBAMA. Conhecimento Científico para Gestão Ambiental. Amazônia, Cerrado e
Pantanal. Tomos I e II, Edição IBAMA, Brasília, 1995.
Brasil / MMA / PNMA. Plano de Conservação da Bacia do Alto Paraguai - Pantanal - PCBAP.
Volume 1 - Metodologia do PCBAP, Projeto Pantanal, 1997.
Brasil / MMA / PNMA. Plano de Conservação da Bacia do Alto Paraguai - Pantanal - PCBAP.
Volume 2, Tomo 1 - Meio Físico, Projeto Pantanal, 1997.
Brasil / MMA / PNMA. Plano de Conservação da Bacia do Alto Paraguai - Pantanal - PCBAP.
Volume 2, Tomo 2 - Hidrossedimentologia, Projeto Pantanal, 1997.
Brasil / MMA / PNMA. Plano de Conservação da Bacia do Alto Paraguai - Pantanal - PCBAP.
Volume 2, Tomo 3 - Meio Biótico, Projeto Pantanal, 1997.
Brasil / MMA / PNMA. Plano de Conservação da Bacia do Alto Paraguai - Pantanal - PCBAP.
Volume 2, Tomo 4 - Sócio-economia de Mato Grosso, Projeto Pantanal, 1997.
Brasil / MMA / PNMA. Plano de Conservação da Bacia do Alto Paraguai - Pantanal - PCBAP.
Volume 2, Tomo 5 - Sócio-economia de Mato Grosso do Sul, Projeto Pantanal, 1997.
Brasil / MMA / PNMA. Plano de Conservação da Bacia do Alto Paraguai - Pantanal - PCBAP.
Volume 2, Tomo 6 - Aspectos Jurídicos e Institucionais de Mato Grosso, Projeto Pantanal, 1997.
Brasil / MMA / PNMA. Plano de Conservação da Bacia do Alto Paraguai - Pantanal - PCBAP.
Volume 2, Tomo 7 - Aspectos Jurídicos e Institucionais de Mato Grosso do Sul, Projeto Pantanal,
1997.
Brasil / MMA / PNMA. Plano de Conservação da Bacia do Alto Paraguai - Pantanal - PCBAP.
Volume 3 - Análise Integrada e Prognóstico da Bacia do Alto Paraguai. Projeto Pantanal, 1997.
CMMAD. Comissão Mundial sobre o Meio Ambiente e Desenvolvimento. Nosso Futuro Comum.
Rio de Janeiro. Ed. FGV. 430 p, 1988.
Correa Filho, V. Pantanais Matogrossenses. Rio de Janeiro, IBGE, Biblioteca Geográfica
Brasileira - Série A - Livros 3, 1946.
Dale, M.B. and De Groot, R.S. A Functional Ecosystem Evaluation Method as a Tool in
Environmental Planning and Decision Making. Ecology, 51:2-16, 1992.

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Dinerstein, E. et al. Una Evaluación del Estado de Conservación de las Ecoregiones Terrestres de
América Latina y el Caribe. WWF/Banco Mundial, Washington, 1995.
Dutrieux, E. and Guélorget, O. Ecological Planning: A Possible Method for the Choice of
Aquacultural Sites. Ocean & Shoreline Manag., (11):427-447, 1988.
Franco, M.S.M. e Pinheiro, R. Geomorfologia. In: BRASIL. Ministério de Minas e Energia.
Projeto RADAMBRASIL. Folha SE 21 e parte da Folha SE 20. Rio de Janeiro, Levantamento de
Recursos Naturais, 27, 1982.
IAP (Instituto Ambiental do Paraná) / SEMA-PR. No Ciclo da Ecosul, Mercosul e Meio
Ambiente: Oportunidades e Desafios para a Gestão Ambiental. IAP / GTZ, Curitiba, 1996.
King, F.W. Preservation of Genetic Diversity. Sustaining Tomorrow: A strategy for World
Conservation and Development. Editors: Thibodeau, F.R. and Field, H.H., Hanover, New
Hampshire, Univ. Press of New England, 1984.
Mitsch, W.J. and Gosselink, J.G. Wetlands. 2nd Ed. Van Nostrand Reinhold, New York, 1993.
Norton, G.A. and Walker, B.H. Applied Ecology: Towards a Positive Approach. I. The Context of
Applied Ecology. J. Environ. Manag. 14:309-324, 1982.
Paiva, M.P. Conhecimento Científico para Gestão Ambiental. Amazônia, Cerrado e Pantanal. -
Tomo II - Meio Natural - Ictiofauna. MMA, IBAMA, Brasília, 1995.
Pereira, J.V.C. Pantanal - Tipos e Aspectos do Brasil. Rev. Bras.Geogr. 6(2):281-285, Rio de
Janeiro, 1944.
Pires, J.S.R. Análise Ambiental voltada ao Planejamento e Gerenciamento do Ambiente Rural:
Abordagem Metodológica Aplicada ao Município de Luiz Antônio. SP - Programa de Pós-
Graduação em Ecologia e Recursos Naturais, UFSCar, São Carlos, 1995.
Sanches, R.O. Geomorfologia del Pantanal. Estudo de Desenvolvimento Integrado da Bacia do
Alto Paraguai. EDIBAP. Convênio OEA-Minter, Brasília, 1977.
Valverde, O. Fundamentos Geográficos do planejamento rural do Município de Corumbá. Rev.
Bras. Geogr. 34(1): 49-144, 1972.
Willians, M. (Ed). Wetlands: A Threatened Landscape. Blackwell, Oxford, 1990.
4. PUBLIC PARTICIPATION AND CONSULTATION
Abramovay, M. e Zambrotti, S.D. Participación: realidad y utopía. Brasília, BID/INDES. (no

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prelo), 1997.
Argumedo, M.A. Conceitos Básicos para a Capacitação de Pequenos Produtores Rurais com
Metodologias Participativas: sua aplicação em processos de capacitação para a gestão de
empresas associativas. Tradução de Inês Zatz (1994). Original in Capacitación Participativa para
la Gestión Empresarial de Organizaciones de Pequeños Productores Rurales. Buenos Aires,
IICA, 1991.
Banco Mundial. El Banco Mundial y la Participación. Washington: Departamento de Políticas
Operacionales, 1994.
Chalub, L. e Zatz, I.G. Influência das Organizações de Produtores Irrigantes em Projetos
Públicos(relatório de estudo), Brasília, 1996.
Coalizão Rios Vivos. Boletín de Comunicación Ríos Vivos. N° 2 (agosto de 1996); n° 4 (agosto de
1997), 1997.
Comitê de Integração da Bacia Hidrográfica do Alto Paraguai-Pantanal ­ CIBHAP-P. Modelo
básico de regulamentação para servir como orientação ao debate do grupo de implantação do
Comitê da Bacia do Alto Paraguai, 1997.
Consócio Intermunicipal para o Desenvolvimento Sustentável da Bacia do Rio Taquari --
COINTA. Diretrizes Básicas para a Consolidação e Fortalecimento do COINTA - plano de ação.
Campo Grande: COINTA, jun./97, 1997.
EMBRAPA / CPAP. Aspectos Ambientais e Sócio-econômicos na Bacia do Rio Taquari. (Texto
apresentado por Luiz Marques Vieira, na segunda reunião do Comitê de Integração da Bacia
Hidrográfica do Alto Paraguai-Pantanal - CIBHAPP), 1997.
Governo do Estado de Mato Grosso. Lei n° 6.945, de 05 de novembro de 1997. Dispõe so a Lei
de Política Estadual de Recursos Hídricos, institui o Sistema Estadual de Recursos Hídricos e dá
outras providências, Cuiabá, 1997.
Instituto Centro de Vida (ICV). ECO TEEN: Boletim Jovem do ICV. Ano 1, n° 1 (nov. 1996); n°
2 (abril 1997). Cuiabá, 1997.
Instituto Centro de Vida (ICV) e Ecologia e Ação (ECOA). O Pantanal. Ano 1, n° 5, abril/maio.
Cuiabá e Campo Grande, 1997.
Ministério do Meio Ambiente, dos Recursos Hídricos e da Amazônia Legal - MMA / Secretaria
dos Recursos Hídricos - SRH. Política Nacional de Recursos Hídricos - Lei n° 9.433, de 8 de
janeiro de 1997. Brasília: MMA /SRH, Brasília, 1997.
Ministério do Meio Ambiente, dos Recursos Hídricos e da Amazônia Legal - Secretaria de

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Coordenação dos Assuntos de Meio Ambiente. Plano de Conservação da Bacia do Alto Paraguai
- Pantanal. PCBAP/Projeto Pantanal, Programa Nacional do Meio Ambiente. Brasília: PNMA, 3
vol em 7t., il., fig., mapas. Brasília, 1997.
Ministério do Meio Ambiente, dos Recursos Hídricos e da Amazônia Legal. Portaria n° 164, de
30 de julho de 1997. Designa os representantes dos órgãos e entidades para o Comitê de
Integração da Bacia Hidrográfica do Alto Paraguai-Pantanal - CIBHAPP. Brasília, 1997.
Organização dos Estados Americanos - OEA / Secretaria Executiva de Desenvolvimento Integral.
A OEA e a Promoção da Cooperação Solidária para o Desenvolvimento - o papel do Conselho
Interamericano de Desenvolvimento Integral (CIDI). Washington, 1997.
Zatz, I.G. e Chalub, L. O que é isso, Capacitação? Capacitação de quem, em quê, para quê,
como...?. Texto de apoio ao Seminário em Petrolândia (PE): Abordagem Critica do Processo de
Organização dos Produtores para Autogestão dos Projetos de Irrigação de Itaparica. Brasília:
Codevasf; Grupo Executivo Especial do Projeto Itaparica (GEEPI). Brasília, 1996.
Zatz, I.G.(coord). Capacitação do Pequeno Produtor do Projeto Jaíba - baseada no diagnóstico
de seus problemas e necessidades. Brasília, 1994.
5. INSTITUTIONAL STRENGTHENING AND SUPPORT
Consórcio Intermunicipal para o Desenvolvimento Sustentável da Bacia do rio Taquari -
COINTA. Diretrizes Básicas para a Consolidação e Fortalecimento do Cointa. Plano de Ação:
primeira aproximação, junho/1997.
Fundação Brasileira para a Conservação da Natureza - FBCN. Legislação de Conservação da
Natureza, 3ª edição, São Paulo, CESP-Cia. Energética de São Paulo, 1983.
Fundação Estadual de Meio Ambiente - FEMA/MT. Em Defesa de Nossos Peixes, Cuiabá ­ MT,
1997.
Governo do Estado de Mato Grosso do Sul. Campanha de Divulgação do Plano de Conservação
da Bacia do Alto Paraguai - PCBAP. Relatório Técnico Final. Programa Nacional do Meio
Ambiente/Ministério do Meio Ambiente dos Recursos Hídricos e da Amazônia Legal/Secretaria
de Meio Ambiente e Desenvolvimento Sustentável/Fundação Pantanal. Campo Grande, 1997.
Governo do Estado de Mato Grosso. Regimento Interno da Fundação Estado do Meio Ambiente -
FEMA. Cuiabá, 1994.
Governo do Estado de Mato Grosso. Política Estadual de Recursos Hídricos, Lei 6.945 de
05/11/97. Cuiabá, 1997.
Instituto Ambiental do Paraná. No Ciclo da Ecosul: Conferência sobre o MERCOSUL, Meio

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Ambiente e Aspectos Transfronteiriço. Curitiba, Convênio de Cooperação Técnica Brasil-
Alemanha: GTZ - Instituto Ambiental do Paraná/Secretaria de Estado do Meio Ambiente e
Recursos Hídricos do Paraná, 1997.
Ministério do Meio Ambiente, dos Recursos Hídricos e da Amazônia Legal. Portaria
Interministerial nº 01 de 19/12/1996. Diário Oficial, nº 247, de 20 de dez. 1996, Seção I. Brasília ­
DF, 1996.
Ministério do Meio Ambiente, dos Recursos Hídricos e da Amazônia Legal. Portaria. Plano de
Conservação da Bacia do Alto Paraguai - PCBAP/Projeto Pantanal. Programa Nacional do Meio
Ambiente, Brasília, 1997.
Ministério do Meio Ambiente, dos Recursos Hídricos e da Amazônia Legal. Portaria.
Conservação Ambiental no Brasil. Programa Nacional do Meio Ambiente. Brasília, 1997.
Ministério do Meio Ambiente, dos Recursos Hídricos e da Amazônia Legal. Portaria. Política
Nacional de Recursos Hídricos: Lei nº 9.433 de 8 de janeiro de 1997. Secretaria de Recursos
Hídricos. Brasília, 1997.
República Federativa do Brasil. Constituição da República Federativa do Brasil. Promulgada em
05/10/88, 1988.
República Federativa do Brasil, Senado Federal, gabinete do senador Bernardo Cabral. Legislação
Estadual de Recursos Hídricos . Caderno Legislativo nº 002/97, 2 volumes, Brasília, 1997.
6. REGIONAL ECONONOMY
Amsber, J. Von. Project Evaluation and the Depletion of Natural Capital: An Application of the
Sustainability Principle, Environmental working paper no. 56, the World Bank, Washington, D.C.,
1993.
Brasil / MMA / PNMA. Plano de Conservação da Bacia do Alto Paraguai - Pantanal - PCBAP.
Volume 2, TomoV-B ­ Sócio Economia de Mato Grosso do Sul, Projeto Pantanal, Brasília, 1997.
David, L.J., Golubev, G.N. and Nakayama, M. The Environmental Management of Large
International Basins - The EMINWA Programme of UNEP, Water Resources Development,
Volume 4, Number 2, 1988.
Fondo para el Medio Ambiente Mundial (FMAM o GEF). 2 al 4 de abril de1996. Incremental
Costs, GEF Council Meeting, Washington D.C., 1996.
FMAM. Programas Operacionales del FMAM Washington, junio de 1997.
FMAM. Estrategia Operacional del Fondo para el Medio Ambiente Mundial. Washington,

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fevereiro de 1996.
Governo do Brasil. Lei No. 9433, Política Nacional de Recursos Hídricos, Brasília, 8 de Janeiro de
1997.
King, K. The Incremental Costs of Global Environmental Benefits, working paper number 5,
Global Environment Facility, Washington, 1993.
Munasinghe, M. and Lutz, E. Environmental-Economic Evaluation of Projects and Policies for
Sustainable Development Environmental working paper no. 42, the World Bank. Washington,
1991.
Panayotou, T. Economic Instrumental for Environmental Management and Sustainable
Development. United Nations Environment Program, Environment Economic Series Paper No. 16.
Nairobi, Kenya, 1994.
Plater, Z., Abrams, R. and Goldfarb, W. Environmental Law and Policy: Nature, Law, and
Society. West Publishing Co., St. Paul, Minnesota, USA, 1992.
Secretaria de Recursos Hídricos, Brasil. Global Environment Facility Proposal for PDF Block B
Grant. International Basin of the Upper Paraguay River. Brasília, 1997.
UNEP/OAS. Strategic Action Programme for the Binational Basin of the Bermejo River.
Washington, 1997.
Zylics, T. The Role for Economic Incentives in International Allocation of Abatement Effort.
Reprinted in Ecological Economics: The Science and Management of Sustainability, Editor Rober
Costanza. Columbia University Press, New York, 1991.

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ANNEX 7
GEOGRAPHY OF THE UPPER PARAGUAY RIVER BASIN
1. The 496,000 km2 Upper Paraguay River Basin, shared by Brazil, Bolivia and Paraguay, is one
of the three main components of the Plata Basin System, which drains almost 20 percent of the
South American continent. The Upper Paraguay Basin comprises two areas with significantly
different water and natural resources conditions, i.e. the Plateau, or Planalto, and the Pantanal.
The Planalto forms the eastern boundary of the drainage basin. Rainfall in this area exceeds 1,400
mm per year and has definite seasonality that determines the hydrological character of the basin
due to the rapid drainage of stormwater from the land surface. The land surface is used mainly for
agriculture (i.e., cattle grazing, and soybean and rice production), that has expanded rapidly since
the 1970s. Surrounded by the Planalto, the Pantanal has been identified as a wetland of global
significance by The Nature Conservancy and World Wildlife Fund. Major tributaries to the
Upper Paraguay River are the Apa, Aquidauana, Cuiaba, Miranda, Negro, Sao Lourenco, and
Taquari rivers, all of which discharge to the Pantanal. Of these tributaries, the Miranda, Negro
and Taquari rivers are hydrologically dominant, while the Apa River is transboundary in nature,
forming the border of Brazil and Paraguay. Approximately 80 percent of the UPRB, including
the major headwater tributaries and the largest portion of the Pantanal, is located within the
boundaries of the Federal Republic of Brazil.
2. Human settlement of the UPRB is sparse, numbering only about 1 million individuals.
Population densities are low, with a density of 2.2 inhabitants/km2 in Mato Grosso do Sul,
concentrated in the Maracaju-Campo Grande plateau, and 2.5 inhabitants/km2 in Mato Grosso,
concentrated in the Baixada Cuiabana. Soil quality and soil conditions favoring mechanized
agriculture, ease of access, and protection from flooding are the underlying reasons for the
concentration of population in these areas. Most of the population, both on the plateau and in
the lowlands, is in urban areas that currently lack adequate land use controls, wastewater and
solid waste management infrastructure, and urban stormwater management systems. Actions to
address these issues are proposed to be implemented through complementary financing identified
below.
3. In the lower sub-basin of the Upper Paraguay River, near Corumba, iron ore reserves are
estimated at 800 million tons and manganese reserves at 100 million tons. Elsewhere in the basin
known copper, peat, lignite, gypsum, WMPphires, amethysts and topaz deposits have good
potential for exploitation. Minerals being exploited presently include gold, diamonds, marble,
limestone and clay. These minerals are extracted by both large and small operators using,
primarily, open cast mining techniques that result in soil loss and metal contamination of adjacent
water courses. Further, as previously noted, the expansion of the agricultural frontier in the
highlands, through large scale mechanized production of soybeans and rice, has increased soil
erosion, soil compaction and water pollution. Soil erosion rates in the highlands are estimated at
300 tons/km2/year and at 40 tons/km2/year in the lowlands. Use of agro-chemicals has
skyrocketed, increasing the content of undesirable residues washed by rain into the rivers.
Environmental problems in the UPRB include land clearing, both along the river banks and in the

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debouchment of the river into the Pantanal, that, between 1995 and 1996, is estimated to have
cleared approximately 3% of the limited forest cover of the Pantanal. Throughout the basin, fish
are threatened by overfishing and, most recently, by hazardous chemicals, especially large
quantities of mercury used in gold mining. Notwithstanding, tourism, based mainly on the unique
flora and fauna present in the region, is a growing industry, with ecotourism becoming more
important.
4. Due to its location in the center of South America, the Pantanal area of the UPRB is a bio-
geographic meeting point of several South American floral and faunal units. The confluence of
biologic elements originating in the Amazon, Chaco, Savanna and Mata Atlantica regions
contributes to the extensive biological diversity of the region. Many different types of highland
and lowland forests, as well as several different kinds of savanna known as cerrado, contribute to
a unique and extremely rich array of wildlife (more than 230 species of fish, 80 species of
mammals, 81 species of reptiles and more than 650 species of birds) in the basin.
5. The controversial Paraguay-Parana Waterway Project (Hidrovia) has been proposed as a
means of facilitating the transport of iron and manganese ores from Corumba, and agricultural
products from Mato Grosso and Rondonia. Some 5 million tons of grain and comparable volumes
of minerals are expected to be transported each year. While the economic impact of the project
may be considerable, the environmental risks involved also are significant. Rectification and
dredging of specific river stretches, such as Posto de São Francisco and Fecho dos Morros, could
modify both the downstream passage of flood peaks and the upstream behavior of water flows.
In the areas most likely to be adversely affected, the river has a reservoir-like character (i.e., any
modifications could create the risk of disastrous transboundary floods affecting people and
infrastructure along the Paraguay and Parana rivers). Moreover, considering that Brazilian
agriculture is heavily dependent on the use of fuel and agro-chemicals, it is highly probable that
barges and other vessels carrying grain downstream will return bringing fuel, fertilizers, pesticides
and herbicides. Under these conditions, any accident in the waterway would directly affect
riverine flora and fauna, as well as water intakes from riverside cities downstream, thus creating
dangerous transboundary risks. As of March 1998, the Government of Brazil has taken the
decision not to proceed with implementation of the Hidrovia within the Pantanal upstream of
Corumba in the foreseeable future.
6. In the Pantanal, hydrology is influenced by natural factors; namely, that the average annual
rainfall is less than the annual average potential evaporation resulting in a precipitation deficit.
The Pantanal remains a wetland only because of the runoff from the highlands. Like most
wetlands, the Pantanal also is threatened both by anthropogenic factors such as channel dredging,
removal of obstructions to free flow of water, and the construction of polders or dikes upstream
of the wetland, and by natural factors such as changes in the rainfall patterns. Changes in rainfall,
occurring during the last 25 years, have influenced strongly the livelihood of the population of the
UPRB. Ranches that were free from flooding during most of the year (7 to 9 months) in the
1960s have seen the flood-free period reduced to only 3 to 5 months in more recent times. This
has encouraged some landowners to consider building polders, and some have been built. While
these are still few in number, it is possible that local changes in drainage patterns, each having

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apparently limited local effects, could cumulatively combine to affect the character of the entire
system. In broad terms, any changes in the hydrological integrity of the Pantanal could reduce the
volume of water retained in the Pantanal, and potentially change it from wetland to cerrado.
Thus, for people to live sustainably with these types of variations in system hydrology, whether
due to natural climatic variation or modified land-uses and other kinds of economic development,
it will be necessary to define the way in which hydrological changes affect flooding frequency and
severity in both urban and rural areas.

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ANNEX 8
PROPOSED WORK PROGRAM
Project Identifier:
GF/1100-98-#
Project Name:
IMPLEMENTATION OF INTEGRATED
WATERSHED MANAGEMENT PRACTICES IN THE
PANTANAL AND UPPER PARAGUAY RIVER BASIN
GEF Implementing Agency:
UNEP
Executing Agency:
OAS
Ministerio do Meio Ambiente, dos Recursos Hidricos e da
Amazonia Legal do Brasil (MMA), Secretaria de Recursos
Hidricos (SRH)
Requesting Country:
Brazil
Country eligibility:
Under paragraph 9(b) of the Instrument.
Focal areas:
International waters
Cross-cutting areas:
Land Degradation
GEF Programming Framework:
OP 9
Estimated Starting Date:
October 1998
Project Duration:
2.5 years.
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1. This project seeks to catalyze implementation of a refined watershed management program for
the Pantanal and the Upper Paraguay River Basin. Project activities will enhance and restore the
environmental functioning of the system by protecting endemic species within the wetland and
by implementing strategic activities, identified in the World Bank-financed Plan for the
Conservation of the Upper Paraguay River Basin (PCBAP) program, addressing the root causes
of degradation. These actions will complement basin-scale interventions by the Government of
Brazil, financed in part from national and state sources and by international loan funding, and sub-
basin scale activities conducted under the World Bank-UNDP Northwestern Regional
Development Program (PRODEAGRO). Strengthening of basin institutions, building of agency
and organizational capacities, and integration of environmental concerns into economic
development activities on a sustainable basis are the key elements of this project.
Table 1. Relationships Between PCBAP-, PDF-, and Project-related Issues and Actions
PCBAP Issue
PCBAP Priority
PDF Issue
Proposed Project Activitya
Action
Erosion
Erosion control
Land degradation
Activity III: Land Degradation
Agricultural land management
Agro-chemical
Monitor and assess
Issue identification
Activity I: Water Quality and
contamination
problem
Environment Protection
Agricultural land management
Urban, industrial
Monitor and assess
Issue
Activity I: Water Quality and
and mining
problem, identify
identification, and
Environment Protection

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pollution
mitigation measures
Institutional
Environment Protection
(e.g., upgrade treatment strengthening
Urban land management:
infrastructure, inform
River basin environmental
public)
analysis, land degradation,
institutional strengthening,
capacity building, and loan
program
Seasonality in, and
Implement
Integrated
Activity VI: Integrated Watershed
geography of,
environmental zoning
watershed
Management Program
basin
management
Implementation
program
River basin environmental analysis
Anthropogenic
Assess root causes and
Wetland
Activity II: Conservation of the
impacts on fauna
formulate effective
conservation
Pantanal
legal framework to
River basin environmental
minimize impacts
analysis, wetland conservation,
sustainable development,
environmental education, and
institutional strengthening
Habitat
Implement
Wetland
Activity II: Conservation of the
degradation
conservation practices
conservation
Pantanal
Wetland conservation
Development-
Evaluate impacts by
Stakeholder
Activity IV: Stakeholder
related impacts
implementing
participation
Involvement and Sustainable
environmental impact
Development
assessment laws
River basin environmental
analysis, and institutional
strengthening
Conservation
Create conservation
Stakeholder
Activity V: Organizational
units
participation, and
Structure Development
Capacity building
Wetland conservation, stakeholder
participation, and capacity building
Tourism
Encourage eco-ethno-
Stakeholder
Activity IV: Stakeholder
tourism
participation
Involvement and Sustainable
Development
Stakeholder participation
Flooding
Flood control and
Institutional
Activity V: Organizational
warning systems
strengthening
Structure Development
Issue identification, sustainable
development, institutional
strengthening, and capacity
building
2. The 496,000 km2 UPRB is an international river basin shared by Brazil, Bolivia and Paraguay.
Together with the Uruguay and Parana rivers, the Paraguay River is one of the three main
components of the Plata Basin System, which drains almost 20 percent of the South American
continent. The Upper Paraguay Basin comprises two areas with significantly different water and
natural resources conditions, i.e. the Plateau, or Planalto, and the Pantanal. The Planalto forms
the eastern boundary of the drainage basin. Rainfall in this area exceeds 1,400 mm per year and
has definite seasonality that determines the hydrological character of the basin. The land surface

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of the Planalto is used mainly for agriculture (i.e., cattle grazing, and soybean and rice
production), that has expanded rapidly since the 1970s. Surrounded by the Planalto, the Pantanal
has been identified as a wetland of global significance by The Nature Conservancy and World
Wildlife Fund. Major tributaries to the Upper Paraguay River are the Apa, Aquidauana, Cuiaba,
Miranda, Negro, Sao Lourenco, and Taquari rivers, all of which discharge to the Pantanal. Of
these tributaries, the Miranda, Negro and Taquari rivers are hydrologically dominant, while the
Apa River is transboundary in nature, forming the border of Brazil and Paraguay. Approximately
80 percent of the UPRB, including the major headwater tributaries and the largest portion of the
Pantanal, is located within the boundaries of the Federal Republic of Brazil.
3. Building on previous studies, this GEF project that will help the Government of Brazil to
promote the sustainable development of the UPRB, based on the implementation of the PCBAP
guidelines summarized in Table 1, through a comprehensive and participative program of action
addressing the root causes of degradation.
4. The emphasis on public participation in the management of the water resources of Brazil is
supported as an integral feature of the Federal Law 9433/97. In one of the first applications of
this new water law, more than 200 persons, representing almost 60 civil, corporate,
nongovernmental and governmental entities (having municipal, state, federal, and international
interests) participated in the definition of more than 45 detailed project documents which were
presented at three public meetings convened during the PDF process within the basin during
November 1997 at Cuiaba, December 1997 at Corumba, and February 1998 at Campo Grande.
Follow-up consultations were held with the Committee for the Integrated Management of the
Upper Paraguay River Basin and Pantanal (CIBHAP-P) and the Secretariat for Water Resources
(SRH/MMA) in February 1998. Subsequently, numerous other communications were initiated
between individual participants in the workshops and other selected persons in order to improve
and clarify specific issues arising from component proposals and other observations made during
the project preparation period. The principle findings identified by the public, government
officials, and consultants are contained within by this proposal. Representatives of the
neighboring countries were consulted during the preparation of this proposal. Continued popular
participation and consultation is built into the project and will be continued in the development of
the WMP for the UPRB.
5. Proposed project components correspond to the concerns of global significance and priority
actions identified in PCBAP and are reflected in the nine issues identified in the PDF-B Grant
Proposal. The relationships between these concerns, actions and issues are shown in Table 2.
The project components, comprised of several activities arising from the public participation
process conducted during the PDF phase, are designed to provide information on, and permit
implementation of, an WMP for the UPRB, and are concentrated in four principal components as
set forth below. The relationship between these components and the activities defined in the
project brief is shown in Table 3. Preliminary descriptions and budgets for each of the 35
proposed activities have been prepared by the UNEP as Implementing Agency, in consultation
with the OAS and the Federal Government of Brazil, and are summarized below. It should be
noted that many of the components are multi-faceted in nature and include not only specific

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issue-related activities, but also provide opportunities for stakeholder involvement, citizen and
professional environmental education, and institutional strengthening, etc.; however, for the sake
of brevity and clarity, each component has been categorized into only one issue area and has not
been repeated under its related issue areas.

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Table 1. Relationship Between PCBAP- and PDF-related Issues and Actions
PCBAP Issue
PCBAP Priority
PDF Issue
Proposed Project
Action
Componenta
Erosion
Erosion control
Land degradation
Land degradation (3.1,
3.3)
Agro-chemical
Monitor and assess
Issue identification
Issue identification (1.5)
contamination
problem
Urban, industrial
Monitor and assess
Issue identification,
Issue identification (1.4),
and mining
problem, identify
and Institutional
land degradation (3.2,
pollution
mitigation measures
strengthening
3.4), institutional
(e.g., upgrade treatment
strengthening (7.4),
infrastructure, inform
capacity building (8.2),
public)
and loan program
Seasonality in, and
Implement
Integrated
Issue identification (1.2;
geography of,
environmental zoning
watershed
1.3)
basin
management
program
Anthropogenic
Assess root causes and
Wetlands
Issue identification (1.1),
impacts on fauna
formulate effective
conservation
wetlands conservation
legal framework to
(2.1, 2.4), sustainable
minimize impacts
development (5.1, 5.2),
environmental education
(6.1) , and institutional
strengthening (7.2, 7.3)
Habitat
Implement
Wetlands
Wetland conservation
degradation
conservation practices
conservation
(2.3)
Development-
Evaluate impacts by
Stakeholder
Issue identification (1.7),
related impacts
implementing
participation
and institutional
environmental impact
strengthening (7.5)
assessment laws
Conservation
Create conservation
Stakeholder
Wetland conservation
units
participation, and
(2.2), stakeholder
Capacity building
participation (4.2), and
capacity building (8.1)
Tourism
Encourage eco-/ethno-
Stakeholder
Stakeholder participation
tourism
participation
(4.1, 4.3)
Flooding
Flood control and
Institutional
Issue identification (1.6),
warning systems
strengthening
sustainable development
(5.3, 5.4), institutional
strengthening (7.1), and
capacity building (8.3)
a Component number shown in parentheses; for brevity and clarity, each component has been categorized into only
one issue area and has not been repeated under its related issue areas. The integrated river basin management
program (components 9.1 through 9.4) is a cross-cutting issue linking all of the issues and actions.

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Table 2. Proposed Project Activities, Work Program Activity Areas and Components.
Project Activity
Work Program Activity Area
Component
I. River Basin Environmental
A. River Basin Environmental
1.1 through 1.7
Analysis
Analysis
II. Wetland Conservation
A. River Basin Environmental
2.1 through 2.4
Analysis
III. Land Degradation
A. River Basin Environmental
3.1 through 3.4
Analysis
IV. Stakeholder Involvement and
B. Public Participation
4.1 through 4.3; 5.1
Sustainable Development
and 5.2; and 6.1
V. Organizational Structure
C. Organizational Development
5.3 and 5.4; 7.1
Development
through 7.5; and, 8.1
through 8.3
VI. Integrated Watershed
D. Integrated Watershed
9.1 through 9.4
Management Program
Management Program
Implementation
Implementation
A. COMPONENT I: WATER QUALITY AND HABITAT PROTECTION
6. Component I, including three issue areas, comprises the river basin environmental analysis.
This Component is designed to provide for the collection and analysis of additional field data
relevant to the diagnosis of those additional priority issues of concern, identified during the PDF
investigations, which were not previously considered during the preparatory phase of the project.
In addition, this Component provides for the acquisition of specific information, identified in
PCBAP, necessary for the development of strategic approaches to resolving priority problems.
This Component consists of fifteen Activities that will permit quantification of the three issues,
thereby updating and consolidating older data, and providing for the forecasting of potential
future conditions within the system. Based on analyses conducted as a result of PDF activities,
some of the proposed Activities target specific, representative locales where specific data and
information are required. Detailed work plans, setting forth detailed terms of reference and goals
to be achieved during the project, will be developed for each component as one of the first actions
initiated by the local executing agency in consultation with UNEP and the OAS.
Issue 1: Water-Resources Issue Identification
7. Consideration is given to those issues identified by PCBAP, and/or to those issues not
previously identified but which were identified during the PDF activities as having impacts on the
basin, that require further study and quantification to determine root causes prior to being
addressed in the watershed management program.
Activity 1.1: Formulation of Means to Promote Fisheries Conservation in the Rio Taquari.
PCBAP recommended that investigations into the root causes of the decline in fish numbers be

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65
conducted so that appropriate legislative and other actions could be formulated to effectively
sustain the fishery in this basin. This Activity seeks to identify the root causes for the observed
decline in endemic fish production and diversity, which impacts commercial and recreational
fisheries within the sub-basin. Knowledge of the root causes will allow formulation of a
management program to strengthen and rehabilitate the fisheries within the Basin which is an
essential element of the economic base of the region (see also Activities 5.1 and 5.2 below). The
results of this management program will (i) identify the causes for the changes in fish production,
(ii) permit determination of remedial actions, and (iii) promote restoration of a diverse and healthy
fish community as the basis for sustainable economic development. Project deliverables will
include an inventory of endemic fishes, documentation of fisheries activities including both
traditional and other fisheries, and determination of the reproductive biology of the endemic fishes
leading to the formulation of standards for the establishment of sustainable fishing in the UPRB.
GEF: US $ 83,000; co-funding: US $ 375,000; total: US $ 458,000.
Activity 1.2: Water Resources Assessment in the Rio Taquari. PCBAP identified the Rio
Taquari sub-basin as one of the most critical tributary basins to the Upper Paraguay River, and
recommended actions to quantify and control hydrologic soil loss within this sub-basin. This
Activity seeks to contribute to this understanding by quantifying and evaluating the surface and
ground water resources and their sectoral use within this sub-basin as a basis for sustainable
conjunctive utilization. Knowledge of the pressures exerted on the water resources of the sub-
basin will allow formulation of an appropriate regulatory program to allocate and plan for
sustainable water use management, and contribute to developing a water management strategy
consistent with implementation of appropriate and sustainable soil conservation measures (see
Activity 3.1). The results of this management program will (i) identify and quantify the uses and
users of surface and ground waters in the basin, (ii) assess availability and quality of water
resources to meet specific uses including water for environmental purposes, and (iii) permit
formulation of appropriate licensing and regulatory mechanisms. Project deliverables will include
a documented basis upon which water allocation and use management can be regulated by fiscal
means that potentially can be extended to the UPRB. GEF: US $ 282,500; co-funding: US $
205,500; total: US $ 488,000.
Activity 1.3: Water Resources Assessment in the Transboundary Basin of Rio Apa. This
Activity seeks to identify, based upon an analysis of the surface water hydrology of the Rio Apa
and contingent water uses, appropriate regulatory mechanisms in a transboundary sub-basin.
Knowledge of the volume and demand for water in this sub-basin will allow preparation of a
preliminary approach to equitable allocation of water resources for economic purposes, including
environmental uses. The results of this study will (i) identify and quantify the uses and users of
water in the basin, (ii) assess the institutional and regulatory basis for water management in the
basin, and (iii) permit formulation of proposed means to sustainably manage the water resources
of a transboundary basin. Project deliverables will include a documented diagnostic survey of
water resources within the sub-basin, and a proposed institutional framework for sustainable
utilization of water resources that potentially can be extended to other transboundary basins
within the UPRB. GEF: US $ 105,000; co-funding 225,000; total: US $ 330,000.

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Activity 1.4: Distribution and Transport of Elemental Mercury within the Upper Paraguay River
Basin. PCBAP identified the need to quantify the magnitude of heavy metal contamination
within the UPRB as the initial action in determining appropriate mitigation measures. This
Activity seeks to quantify the level of mercury contamination and degree of transport within this
multinational basin. Knowledge of the distribution and movement of mercury in the basin will
allow assessment of the nature and magnitude of the threat to environmental populations
(including humans) from bioaccumulation of mercury within the environment. Further, this
knowledge will create a quantitative basis for an assessment of the need for regulation and control
of mercury use in mining operations in the upper basin (see also Activity 3.2). The results of this
study will (i) identify, using mass-balance techniques, the partitioning of mercury in sediments,
water and biological organisms, including commercially important fish and aquatic plant
populations, and (ii) permit formulation of appropriate mitigation measures. Project deliverables
will include a data base and iso-concentration distribution map of the basin. GEF: US $ 170,000;
co-funding: US $ 180,000; total: US $ 350,000.
Activity 1.5: Distribution and Transport of Agro-chemicals and Heavy Metals within the Upper
Paraguay River Basin. PCBAP identified two issues relating to the use and mobility of agro-
chemicals, including POPs, within the UPRB; namely, the need to quantify the degree of agro-
chemical contamination and fate of agro-chemicals within the basin, and the need to develop an
integrated agricultural pesticide management approach to minimize the movement of contaminants
within the basin. This Activity seeks to address the first of these issues by quantifying the level
of agro-chemical and heavy metal contamination and degree of transport within the multinational
basin. Knowledge of the distribution and movement of agro-chemicals and heavy metals in the
basin will allow assessment of the nature and magnitude of the threat to environmental
populations (including humans) from bioaccumulation of agro-chemicals and metals within the
environment. Further, this knowledge will create a quantitative basis for an assessment of the
need for regulation and control of agro-chemical use in (industrial) agricultural operations in the
basin. The results of this study will (i) identify the partitioning of synthetic organic chemicals
and heavy metals in sediments, water and biological organisms, including commercially important
fish and aquatic plant populations, and (ii) permit formulation of appropriate mitigation
measures. Project deliverables will include a data base and documented mitigation measures that
potentially can be applied throughout the UPRB. GEF: US $ 230,000; co-funding: US $ 300,000;
total: US $ 530,000.
Activity 1.6: Water Resources Management in the Vicinities of the Cities of Corumba and
Cuiaba. PCBAP identified urbanization within the UPRB as a major modifying influence on both
water quality and hydrology within the basin. The plan recommended actions to assess the water
quality impacts on the river due to urbanization, and the determination of measures governing the
siting and expansion of urban areas to minimize flooding risk and other human consequences
associated with water quality and hydrological variability. This Activity seeks to determine
means of reducing the impact of urban development on the water resources of the Upper
Paraguay River in the vicinity of the Cities of Corumba (in the Pantanal) and Cuiaba (on the
Plateau), including the management of risks associated with flooding and nonpoint source
pollution. Based upon an assessment of hydrological and water quality conditions in specific

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sub-basins, flood risk analyses, and the determination of specific land use regulatory mechanisms
to protect floodlands under various urban situations, experience gained from this project will
define culturally-acceptable practices for minimizing urban impacts of natural water courses. The
results of this project will (i) provide information necessary for the formulation of floodplain
management plans and regulations that can be adopted by local units of government, and (ii)
create a quantitative basis for implementing urban-related land use management measures at the
local level. Project deliverables will include floodplain maps and a model for flood forecasting and
early warning system plans in the urban environment, and a documented framework for
communicating flood risk minimization practices to citizens within urban areas of the UPRB.
Proposed loan-funded interventions aimed at upgrading and installing appropriate infrastructure
in these areas of the basin are currently being considered by the state and federal governments.
GEF: US $ 200,000; co-funding: US $ 345,000; total: US $ 545,000.
Activity 1.7: Community-based Problem-Solving Relating to "Meander Cuts" in the Rio Taquari
Basin. PCBAP identified human interventions within the UPRB as the major factor influencing
changes in faunal composition and habitat, and recommended the conduct of specific
investigations to quantify the magnitude of these interventions, and to form the basis of
appropriate legal and other remedial measures. "Meander cuts" or arrombados are one type of
human intervention in the basin, being created by riparian residents to navigate more efficiently
through the river system, by-passing the longer routes around the meanders. Unfortunately, river
flows preferentially follow these artificial routes, significantly modifying flow, flood and
sedimentation patterns within the river system which create isolated, highly acidic oxbow-type
lakes that adversely affect the biological resources of the river. This Activity seeks to assess the
extent of this phenomenon and its impact on (i) the economic development of the riparian
communities, (ii) the aquatic ecology of the river, and (iii) the hydrology of the river. Information
gained through the conduct of this project will form the basis for enhanced public participation in
the hydrological management of the river and determination of actions necessary to manage and
mitigate deleterious impacts of meander cutting. The results of this project will identify affected
riparian communities in the Rio Taquari basin (identified by PCBAP as one of the most critical
sub-basins in the UPRB), and permit development, by a representative community, of actions
designed to promote sustainable development throughout the UPRB. Project deliverables will
consist of maps of the arrombados and associated riparian community locations, pictorial and
technical documentation of the identified arrombados, and formulation by a typical community
of an action program for mitigation of the negative effects of the arrombados that can potentially
be transferred throughout the UPRB. GEF: US $ 70,000; co-funding: US $ 37,500; total: US $
107,500.
Issue 2: Wetland Conservation
8. Consideration is given to cross-cutting issues, which relate specifically to protection and
conservation of ecologically-important aquatic flora and fauna, including fish and riparian
wetlands and floodplains.
Activity 2.1: Management Programs for the Development of Buffer Zones in the Vicinity of

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Acurizal, Penha, and Doroche National Reserves. PCBAP recommended the creation of
conservation units within the Pantanal as a means of preserving the best remaining areas of natural
habitat within the region. Coincident with this is the creation of an increased number of boundary
areas wherein human activities can encroach upon the natural reserves. Previous experience
gained by The Nature Conservancy has suggested the utility of buffer zones as a means of
moderating this encroachment. This Activity seeks to assist local communities to prepare
management programs and train administrators for buffer zones around the reserves. This project
will demonstrate the feasibility of the program and buffer zones as effective means of
conservation and protection of wetlands within the preserves. The results of this project will
establish the effectiveness of buffer zones as management techniques to restore degraded
environments adjacent to nature conservancy areas and provide a mechanism for the sustainable
development of communities in these areas. Project deliverables will include a documented
strategy for the establishment and management of buffer zones, based upon community
participation, which potentially can be applied elsewhere in the UPRB. GEF: US $ 150,000; co-
funding: US $ 127,500; total: US $ 277,500.
Activity 2.2: Implementation of Conservation Units for the Protection of the Environment in
Mato Grosso do Sul. PCBAP recommended the creation of conservation units within the
Pantanal as a means of preserving the best remaining areas of natural habitat within the region.
Units of this type have been established and implemented in the State of Mato Grosso. This
Activity seeks to assist the State government of Mato Grosso do Sul to implement similar
institutional mechanisms for establishment of floral and faunal conservation units, delineated by
PCBAP, within the lower portion of the UPRB in areas subjected to intensive agro-pastoral
activity. This project will demonstrate to local communities the feasibility of such units in
managing pasturelands within the Basin while preserving the natural environment as an
ecotourism resource. The results of this project will establish the effectiveness of conservation
units in the protection of wetlands and promotion of sustainable agriculture and ecotourism, and
strengthen the ability of communities to manage their natural resources. Project deliverables will
include a documented program to enhance public participation in wetland protection and locally-
sustainable economic development. GEF: US $ 140,000; co-funding: US $ 142,500; total: US $
282,500.
Activity 2.3: Ecoregional Planning in the Pantanal. This Activity complements, inter alia,
Activity 2.2 above, and seeks to promote sound land use management and planning principals
within the ecoregion of the Pantanal through a program of inventory and analysis designed to link
the remaining high quality natural areas identified as conservation units in PCBAP. This project
will contribute to the development of planning tools necessary for integrated and sustainable land
use management within the Pantanal. The results of this project will permit the formulation of an
ecoregional management program for the Pantanal, which, in future stages, will include Bolivia,
Brazil and Paraguay. Project deliverables will include a synthesis of mapping (at an appropriate
scale) and pictorial materials to establish a sound technical basis and detailed work plan for
development of the ecoregional program. GEF: US $ 90,000; co-funding: US $ 682,500; total: US
$ 772,500.

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Activity 2.4: Measures for the Management of Live-Animal Trade in the Pantanal. PCBAP
identified the commercial animal trade as one mechanism by which the fauna of the Pantanal was
being impoverished, and recommended that the root causes of this trade be identified in order to
formulate appropriate legal remedies. This Activity seeks to identify the root causes of the illegal
export of live animals and endangered species from the Pantanal region as a means of protecting
and preserving wildlife (including aquatic fauna). Knowledge of the root causes of such trade will
enable public and private sector (commercial organizations) agencies to develop means of
controlling ecological damage arising from over-exploitation of such resources through appropriate
programs of environmental education, involvement of non-governmental organizations and their
resources, identification of possible alternative economic activities, and implementation of
relevant legislative initiatives and governmental actions. This project will provide knowledge of
the root causes of illegal live-animal trade in the Pantanal, enhance public awareness of the
problem and means of its control, and provide governmental and non-governmental organizations
with an understanding of not only the economic basis of such trade but also its ecological
consequences. Project deliverables will include a documented analysis of the root causes of, and
alternative measures of controlling damage resulting from, live-animal trade in the Pantanal as a
means of wetland conservation. GEF: US $ 75,000; co-funding: US $ 522,000; total: US $
597,000.
Issue 3: Land Degradation
9. Consideration is given to cross-cutting issues, which relate specifically to land and water
management activities designed to protect and/or rehabilitate critical areas within the Basin.
Activity 3.1: Management of Soils and Soil Erosion in the Rio Taquari Basin. As noted under
Issue 1, above, PCBAP identified the Rio Taquari sub-basin as one of the most critical tributary
basins to the UPRB, and recommended the implementation of appropriate measures to control
soil loss. This Activity, which builds upon the water resources investigations conducted under
Activity 1.2 above, seeks to determine the root causes of soil loss within the Rio Taquari sub-
basin through an examination of natural and degraded areas within the sub-basin, and a
quantification of sediment loads transported within the river sub-basin. Knowledge of the factors
causing soil loss and factors affecting sediment transport will allow determination of soil and land
management practices that will minimize soil loss. The results of this study will identify
practices contributing to sustainable (primarily agricultural) use of soils within the sub-basin and
assist in identifying the fate of sediments already eroded. This latter result will contribute to the
assessment and quantification of priority environmental impacts and their mitigation. Project
deliverables will include documented criteria governing the use of soils at the municipal and state
levels, and recommended measures for limiting soil loss appropriate to specific sectoral users.
GEF: US $ 500,000; co-funding: US $ 540,000; total: US $ 1,040,000.
Activity 3.2: Development of Measures to Rehabilitate Lands Degraded by Mining Activity in the
Municipality of Pocone. Pending the outcome of diagnostic studies designed to quantify the
magnitude of this problem (see Activity 1.4), PCBAP recommended implementation of measures
to mitigate mining-related water quality impacts and rehabilitate lands degraded by mining

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activity. This Activity seeks to determine the technical basis for the mitigation of environmental
problems arising from the degradation of lands due to mining activity. Within the Municipality of
Pocone, vast tracts of land have been disturbed by excavation of minerals (gold) and disposal of
mine tailings, and other mining-related activities which impact water quality and aquatic habitat.
Knowledge of the means to rehabilitate degraded lands will allow determination of appropriate
management practices to permit (i) control of mining practices, (ii) restoration of the disturbed
lands for other purposes including environmental purposes and public information and recreation,
and (iii) environmental protection and education. The results of this project will identify
practices contributing to mitigation of mining impacts and rehabilitation of degraded areas.
Project deliverables will include a variety of maps of the area of the mining concessions, both
active and inactive; documented engineering investigations of the area; limited restoration of a
typical site; and documented methodologies for the recovery of degraded lands elsewhere in the
UPRB. GEF: US $ 180,000; co-funding: US $ 165,000; total: US $ 345,000.
Activity 3.3: Development of Measures to Rehabilitate Riparian Lands. PCBAP identified the
destruction of riparian forests and riverine vegetation as one of the anthropogenic factors altering
faunal habitat in the Pantanal and recommended implementation of measures to restore these areas
as an important step in the process of environmental protection in the region. This Activity seeks
to determine the costs of restoration of riparian vegetation in the state of Mato Grosso.
Knowledge of these costs will contribute to the promotion of community-based land
rehabilitation efforts. The results of this project will provide a quantitative basis upon which to
build community participation. Project deliverables will include a documented breakdown of
restoration costs and a map of areas requiring rehabilitation within the UPRB. GEF: US $
136,000; co-funding: US $ 120,000; total: US $256,000.
Activity 3.4: Environmental Management of the Urban Environment in the Vicinity of Rio
Miranda and Rio Apa. PCBAP recommended the identification and adoption of measures to
mitigate the impacts of urban development on the UPRB. This Activity seeks to develop a
framework for the integrated management of the urban environment through planning,
management, and public information as a means of reducing the quantity of potential pollutants
being generated from urban areas. Development of such a framework will contribute to the
control of aquatic and environmental pollution. The results of this project will provide a
comprehensive program for the management of pollution from urban areas in the UPRB. Project
deliverables will include a comprehensive management program with public awareness as well as
technical and institutional elements. Proposed loan-funded interventions aimed at upgrading and
installing appropriate infrastructure in these areas of the basin are currently being considered by
the state and federal governments. GEF: US $ 100,000; co-funding: US $ 67,500; total: US $
167,500.
B. COMPONENT II: PUBLIC PARTICIPATION
10. Component II, providing public participation projects, is designed to provide for the
collection and analysis of the information on the feasibility and relative costs of certain remedial
measures identified during the PDF Activities as well as a means of transferring such experiences

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to the public at large. By involving the Basin communities in practical, "hands on"-type
involvement in the identification and field testing of remedial measures, as well as in a dialogue
process, actions formulated through the project process will have the advantage of benefiting from
community insights and experiences, and of being acceptable to the communities as sustainable
alternatives to presently-destructive practices. This Component consists of eight Activities that
target three specific issues identified within the watershed.
Issue 4: Stakeholder Participation
11. Consideration is given to activities which identify and coordinate the interests of persons and
agencies having commercial or institutional responsibilities within the basin, including the
fisheries, navigation, mining and agro-industrial sectors (all nine issues contain projects that
encourage stakeholder participation and provide information and/or methods appropriate for
sectoral application in the protection of water resources and wetlands in the UPRB).
Activity 4.1: Determination of Environmental Education Needs In the Tourism Sector. PCBAP
acknowledged the importance of the Pantanal as tourist destination, and recommended the
conduct of diagnostic studies as the basis of minimizing the impacts of tourism on this sensitive
environment. This Activity seeks to determine the need for, and subsequently compile and
disseminate, a program of public environmental information designed to address current and
potential future socio-environmental problems arising from tourism in critical environmental
habitat areas. This knowledge will enhance the ability of the tourism industry to promote
ecotourism, supporting not only a sustainable tourist industry but also a program of transmittal
of environmental information to patrons. The results of this study will (i) enhance economic
development in the region, (ii) encourage better informed consumers participating in ecotourism
opportunities, and (iii) contribute to sustainable management of the UPRB through improved
understanding of ecological principles. Project deliverables will include documented information
on the root causes of environmental degradation associated with the tourism industry, and a
documented program of training and information dissemination supporting ecotourism in the
region. GEF: US $ 60,000; co-funding: US $ 285,000; total: US $ 345,000.
Activity 4.2: Development of Non-governmental Conservation Initiatives. PCBAP
recommended the implementation of measures to preserve avi-faunal habitat within the Pantanal.
This Activity seeks to demonstrate the feasibility of, and identify measures for, the creation of
habitat areas for the conservation of aquatic avi-fauna in the state of Mato Grosso, using the farm,
"Porto da Fazenda", as a pilot preservation site. This demonstration will identify the utility of
integrating private sector initiatives into conservation programs, contribute to the maintenance of
aquatic avi-fauna within the region through enhanced knowledge of bird habitat and tourism
impacts, and enhance environmental education and development of a sustainable eco-tourism
industry for the UPRB. The results of this project will (i) identify alternative means of
conserving wetlands, (ii) contribute to diversified eco-tourism opportunities which enhance both
conservation and environmental education, and (iii) promote sustainable development in the basin.
Project deliverables will include creation of a conservation unit, documented data base of aquatic
avi-fauna and their habitats, and a documented process for transferring experiences gained,

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including a framework for enhanced conservation education, to other private sector eco-tourism
operators. GEF: US $ 75,000; co-funding: US $ 45,000; total: US $ 120,000.
Activity 4.3: Creation of Community-based Alternatives for Eco-/Ethno-tourism in the
Indigenous Area of Guato (Ilha Insua). PCBAP acknowledged the importance of the Pantanal as
tourist destination, and recommended the conduct of diagnostic studies as the basis of minimizing
the impacts of tourism on this sensitive environment. This Activity seeks to demonstrate
alternative economic opportunities that preserve the indigenous culture of the Pantanal region
which promote both ethnic distinctiveness and ecological integrity of their environment in the face
of increased tourism pressures. This demonstration will address those aspects of economic
development and environmental management which directly impact indigenous communities in
the Pantanal, and which destabilize both the community structure and its natural resource base to
the detriment of the natural environment. The results of this project will (i) identify alternative
economic activities that will ensure the cultural survival of disadvantaged ethnic groups, their
communities and natural surroundings, (ii) enhance opportunities for tourists to gain insights into
both indigenous culture and the environment, and (iii) promote eco- and ethno-tourism
opportunities in the region. Project deliverables will include documentation of the cultural base of
the region, a documented program for the preservation of indigenous culture and customs, and a
framework for enhanced public awareness of the environmental and ethnological distinctiveness of
the region that can be extended to other native communities in the UPRB. GEF: US $ 80,000; co-
funding: US $ 48,000; total: US $ 128,000.
Issue 5: Sustainable Development
12. Consideration is given to activities that identify alternative means of economic production or
alternative economic activities that enhance the environment and/or minimize environmental
degradation.
Activity 5.1: Aquaculture as an Alternative to River Harvesting of Fishes in the Pantanal.
PCBAP recommended that investigations into the root causes of the decline in fish numbers be
conducted so that appropriate legislative and other actions could be formulated to effectively
sustain the fishery in the basin. Building on knowledge acquired through diagnostic studies
conducted under Activity 1.1, this Activity seeks to identify a technical basis for developing
alternative means of meeting the angling and commercial fisheries demand for native fishes from
the Upper Paraguay River. The knowledge gained through this project will contribute to the
protection of native fishes within the natural ecosystem of the Paraguay River, while also
contributing to meeting the demand for bait fish for commercial and recreational purposes. The
results of the project will (i) develop a knowledge base on the reproductive biology of native
fishes of the Paraguay River, (ii) enhance public knowledge of the fisheries of the River, and (iii)
potentially provide the basis for future development of a sustainable fisheries industry in the
region. Project deliverables will include documented information on sustainable fisheries in the
Upper Paraguay River, and a documented program of information dissemination designed to
enhance local knowledge and fisheries management capabilities. GEF: US $ 100,000; co-funding:
US $ 472,500; total: US $ 572,500.

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Activity 5.2: Aquaculture in the Rio Taquari. PCBAP recommended that appropriate legislative
and other actions could be formulated to effectively sustain the fishery in Pantanal. This Activity
complements, inter alia, Activities 1.1 and 5.1, and seeks to reduce commercial fishing pressures
in critical habitat areas through promotion of alternative means of native fish production. Further,
this Activity seeks to promote knowledge of fish biology to reduce over exploitation of fishes and
destruction of fish habitat, including minimizing the potential for introduction of exotic/non-native
species into the Rio Taquari. Experience gained through the project will assess the potential for
aquaculture in the basin and disseminate information on aquaculture within the region as an
alternative means of meeting demands for fish. The results of the project will (i) contribute to the
maintenance of an healthy fish fauna in the Rio Taquari through the promotion on alternative
means of fish husbandry, and (ii) increase public awareness of fisheries issues within the sub-
basin. Project deliverables include a documented study of alternative fish production methods
supportive of sustainable fisheries management and protection of native fish fauna. GEF: US $
58,000; co-funding: US $ 87,000; total: US $145,000.
Activity 5.3: Identification of the Need for a Decision Support System for the Upper Paraguay
River Basin. PCBAP recommended that the development of the UPRB be subject to an
integrated and sustainable management plan, a key feature of which would be the permitting of
appropriate economic activities in the various sub-basins of the system. This Activity recognizes
the critical role of flood hydrology in the creation and maintenance of the UPRB and its
ecosystems, and seeks to quantify water demand, for both surface and ground waters, within the
basin. Knowledge of water demands will provide the basis for sustainable use of water resources
within the basin, for economic purposes including environmental protection, and permit the
future formulation of appropriate fiscal and legal instruments to control water usage. The results
of this project will (i) assess the quality and quantity of surface and ground waters in the basin as
the basis for identification of a sustainable water management strategy, and (ii) contribute to the
formulation of appropriate water resources management measures. Project deliverables will
include a documented basis for assessing and managing water demand within the basin, and
detailed work plan and statement of parameters for developing an appropriate decision support
system. GEF: US $ 100,000; co-funding: US $ 90,000; total: US $ 190,000.
Activity 5.4: Identification of the Need for an Integrated Hydrological Management Model for the
Upper Paraguay River Basin. PCBAP recommended development and implementation of a flood
warning system and appropriate floodland management practices within the UPRB as a means of
minimizing human, economic and environmental impacts within the system. Further, PCBAP
recommended that the development of the UPRB be subject to an integrated and sustainable
management plan, a key feature of which would be the permitting of appropriate economic
activities in the various sub-basins of the system. This Activity complements inter alia Activity
5.3, and seeks to provide an overall methodology for assessing and managing not only water
demand, hydrology and use, but also water quality and environmental management within the
basin. A comprehensive model of the water resources within the basin, and the factors affecting
its quality and quantity, will contribute directly to the development of appropriate technical,
financial and legal measures to protect and manage the water resources of the UPRB in a

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sustainable manner. The results of this project will provide a quantitative means for assessing
alternative development strategies so as to achieve the optimal and sustainable level of
development within the basin. Project deliverables will include a documented hydrogeological
assessment of the basin, maps, and a detailed work plan and statement of the parameters for an
hydrological and water quality model of the system that will form the basis for recommendations
regarding appropriate water resources management measures. Proposed loan-funded interventions
aimed at upgrading and installing appropriate infrastructure in these areas of the basin are
currently being considered by the state and federal governments. GEF: US $ 750,000; co-funding:
US $ 120,000; total: US $ 870,000.
Issue 6: Environmental Education
13. Consideration is given to activities that promote and enhance public awareness, participation
and support for environmental management programs including school, community and similar
programs.
Activity 6.1: Development of a Public Information Program in the Upper Paraguay River Basin.
PCBAP recognized, and federal law 9433/97 gave effect to, the key role of stakeholder
involvement in the management of the water and environmental resources of Brazil, in general, and
of the UPRB in particular. The principle element of effective stakeholder involvement is
information and education. This Activity seeks to enhance public participation in the
environmental management of the UPRB by disseminating information to communities and
companies through environmental education courses which will provide them with the basic
knowledge necessary to participate in the licensing and decision-making processes. This project
will enhance public awareness and their ability to contribute to the process of environmental
management. The results of this project will improve overall environmental management of the
Basin by involving a broadly-based constituency in the process of environmental management.
Project deliverables will include a document public participation system supported by
appropriate course materials and informational documents, and supportive of a system of
pollution control licensing and regulation. GEF: US $ 75,000; co-funding: US $ 52,500; total: US
$ 127,500.
C. COMPONENT III: ORGANIZATIONAL DEVELOPMENT
14. Component III, providing projects designed to strengthen and improve institutional and
staffing capabilities to implement new laws, regulations, and procedures, is designed to provide
for the equipping and training of institutions and individuals identified during the PDF Activities.
Such institutional strengthening and capacity building will contribute to the longer-term success of
the watershed management measures identified in the WMP for the UPRB. This Component
consists of two principal issue areas and eight Activities that target specific institutions and skills
needed within the basin.
Issue 7: Institutional Strengthening

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15. Consideration is given to providing an effective framework in which activities of professionals
are carried out, including legal, structural, economic and administrative activities.
Activity 7.1: Strengthening Integrated Environmental Management in Corumba. PCBAP
recommended effective action at the municipal level as an important element in the mitigation of
developmental pressures on the Pantanal. This Activity seeks to provide an environmental
management system at the municipal level which will encourage integration of environmental
issues into the local decision-making process, including inclusion of environmental curricula in
local schools (see also Activity 6.1). This project will create a basis for improved decision-
making within communities in the City of Corumba. The results of this project will (i) assess
urban activities causing environmental degradation and contribute to the development of
appropriate local legislation for environmental management, and (ii) disseminate environmental
protection information within the community. Project deliverables will include a documented
assessment of urban environmental impacts that will form the framework for an integrated
program of local environmental management. Proposed loan-funded interventions aimed at
upgrading and installing appropriate skills in these areas of the basin are currently being
considered by the state and federal governments. GEF: US $ 50,000; co-funding: US $ 192,000;
total: US $ 242,000.
Activity 7.2: Harmonization of Environmental and Water Resources Legislation in the Upper
Paraguay River Basin. This Activity seeks to review existing environmental and water resources
legislation within the basin and propose specific legislative actions required to harmonize and
improve legal instruments for environmental and water resources protection. Ultimately, this
Activity will seek to extend such an analysis to the entire multi-national area of the UPRB. This
project will promote comprehensive and coordinated governmental actions for environmental and
water resources protection in the basin, and minimize potential impacts due to differing legal
structures within riparian states. The results of this project will propose a program of legislative
action designed to harmonize environmental and water resources protection legislation at all levels
of government. Project deliverables will include a document review of existing environmental and
water resources legislation and a documented program of proposed legislative actions. GEF: US $
125,000; co-funding: US $ 150,000; total: US $ 275,000.
Activity 7.3: Institutional Support to the Committee for the Integrated Management of the Upper
Paraguay Basin and Pantanal (CIBHAP-P). This Activity recognizes the benefits to be achieved
through coordinated management actions within the UPRB, as embodied in Federal Law 9433/97,
and seeks to strengthen and enhance the ability of the CIBHAP-P to undertake planning and
management activities within the basin through support for specific actions, such as public
participation programming, staff training, and strategic planning. This project will increase
participation in decision-making within the basin, and enhance the ability of the Committee to
carry out its mandate. The results of this project will contribute to the improved ability of the
Committee to undertake environmental management activities within the basin. Project
deliverables will include a documented short-to-medium term action program for implementation
of environmental management measures, including the use of economic instruments and public
participation. GEF: US $ 100,000; co-funding: US $ 60,000; total: US $ 160,000.

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Activity 7.4: Institutional Development of Inter-municipal Consortia as Members of the Basin
Committee. The Activity seeks to develop municipal consortia within specific sub-basins in the
UPRB, as provided under Federal Law 9433/97. These consortia would participate on the
Committee for the Integrated Management of the Upper Paraguay River and Pantanal (CIBHAP-
P) and provide specific insights regarding the water resources needs and concerns of local
communities within the basin. Strengthening of the municipal participation on the Committee
will facilitate determination and implementation at the local level of management actions
recommended by the Basin Committee. The results of this project will (i) create effective civil
water-resources agencies at the local government level and (ii) increase the ability of the Basin
Committee to function effectively at the community level. Project deliverables will include
documented guidelines for the formation of inter-municipal consortia within the UPRB. GEF: US
$ 99,000; co-funding: US $ 112,500; total: US $ 211,500.
Activity 7.5: Development and Strengthening of Institutions for Integrated Environmental
Management in the Rio Apa and Rio Miranda Basins. This Activity complements, inter alia,
Activity 1.3, and seeks to create local government capacity to manage water resources in specific
sub-basins of the Upper Paraguay River as a means of ensuring sustainable use of water for
economic purposes including environmental protection. This project will identify the feasibility
of creating local, transparent fora for compilation and execution of local water resources and
environmental management programs and projects. The results of the project will strengthen
participative management of water and natural resources within local communities. Project
deliverables will include a documented procedure for establishing and empowering local
institutions in the field of water resources and environmental management. GEF: US $ 145,000;
co-funding: US $ 97,500; total: US $ 242,500.
Issue 8: Capacity Building
16. Consideration is given to activities that contribute to development of a skilled professional
staff needed to implement environmental management programs.
Activity 8.1: Training Environmental Science Educators. This Activity seeks to develop and
implement (to determine feasibility and costs) curricula and training programs for educators
within the UPRB to implement environmental education programs in schools. This project will
provide the means whereby environmental concerns are introduced into early learning programs,
and, thereby, knowledge is transferred to the community at large. The results of this project will
enhance the ability of teachers to convey environmental information and of the community to
internalize and apply such information for the protection of water resources and the environment.
Project deliverables will include a documented curriculum and teacher training program, and the
proceedings of a pilot training course. GEF: US $ 100,000; co-funding: US $ 157,500; total: US $
257,500.
Activity 8.2: Training Community Based Extension Agents. This Activity seeks to develop and
implement (to determine feasibility and costs) a training program for community extension agents

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as a means of disseminating information on environmental issues, protection and rehabilitation
methods to the community at large, and, in support of initiatives of The World Bank within the
watershed, to support the implementation of community-based land management practices by
farmer organizations and agricultural cooperatives within specific communities. This project will
strengthen the ability of local communities to understand and implement specific activities for the
protection of the environment. The results of the project will create a body of trained personnel
capable of working with communities and community groups (e.g., NGOs and farmer
organizations) to carry out specific actions for the improvement of the environment. Project
deliverables will include a documented needs assessment and training program that can be used
throughout the UPRB, and documented best management practices for use in agricultural
communities within the basin. GEF: US $ 290,000; co-funding: US $ 60,000; total: US $
350,000.
Activity 8.3: Training Water Resources and Environmental Science Technicians. This Activity
seeks to provide post-secondary level training for local government staff, leading to additional
educational qualifications, in the areas of hydrology and environmental science, as a means of
enhancing the ability of local government agencies in meeting environmental management demands
arising from the implementation of existing and proposed environmental legislation. This project
will strengthen local capacity for implementing environmental management programs at the local
level. The results of this project will provide a trained-body of professional staff within local
government agencies, and provide opportunities for post-graduate advancement for existing
municipal staff. Project deliverables will include a documented training program for technicians at
the local government level, and the proceedings of two pilot training courses. GEF: US $
140,000; co-funding: US $ 60,000; total: US $ 200,000.
D. COMPONENT IV: INTEGRATED WATERSHED MANAGEMENT PROGRAM
IMPLEMENTATION
17. Component IV, development of the WMP, is designed to provide for the synthesis of data
and experiences, feasibility assessments and cost analyses developed in the three preceding
Components. Included in the principal activities within this Component are working program
elements that address the legal, institutional, and human and natural resources bases essential for
implementation of the remedial actions identified through the WMP process. The three Activities
explicitly provide for the cooperative development of a comprehensive WMP by both the public
and private sectors, based on a multi-sectoral, holistic approach to environmental management
and economic development in this Basin, as provided for in Chapter 18 of Agenda 21.
Issue 9: Integrated Watershed Management Program Implementation
18. Consideration is given to the synthesis and integration of the results of the studies,
demonstrations, and other investigations previously described into a comprehensive, watershed
management program for the UPRB. Pursuant to the GEF Operational Strategy dated February
1996, this program will identify transboundary water-related environmental issues, define the
relationship of these issues to national (and state) environmental planning and economic

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development plans, establish clear priorities, and determine realistic baseline and agreed
incremental costs.
Activity 9.1: Evaluation of Financial Mechanisms for Sustainable Watershed Management. This
Activity seeks to build upon activities funded under PCBAP and the experiences obtained in the
pilot-scale development and implementation of water rights and water charges, as provided for
under federal law 9433/97, in representative sub-basins of the Upper Paraguay River (see, for
example, Activity 1.2), to the entire UPRB. In addition, this Activity seeks to promote a review
federal and state legal and financial mechanisms relating to the sectoral uses of water (e.g.,
agricultural subsidy schemes, urban land use planning regulations, etc. which affect disturbances
of the land surface that encourage erosion, water pollution, etc. to the detriment of water courses
and water resources management) to identify and propose amendments as appropriate to those
mechanisms that affect sustainable use of water resources and the management of watersheds
within the UPRB. This project will provide a detailed framework of the allocation and
determination of water charges and introductions of watershed management measures, including
proposals for legislation and strengthening of administrative mechanisms necessary to implement
an equitable water pricing scheme. The results of this project enhance the institutional capability
to determine and implement a water use charges program, contribute to the identification of
appropriate mechanisms to place water resources management within the basin on a sustainable
footing, and encourage the optimization of water resources management policies, practices and
programs, thereby creating a sound economic and legal basis for the sustainable development of
the basin. Project deliverables will include a documented framework for the implementation of
water use charges and restructuring of related fiscal, financial and legal mechanisms for water
quantity and quality management in the two basin states consistent with an holistic concept of
the UPRB. GEF: US $ 250,000; co-funding: US $ 370,000; total: US $ 620,000.
Activity 9.2: International Seminar of the Transboundary Water Resources of the Upper
Paraguay River Basin. This Activity seeks to inform, consult, and involve water resources
professionals and others in the diagnosis and remediation of environmental concerns relating to
the UPRB and Pantanal. In the first instance, two international seminars would facilitate
discussion of the water resources issues of transboundary concern as a means of building
appreciation of the transboundary nature of the Upper Paraguay River system. Subsequently,
one further international seminar would facilitate dissemination of the experiences gained in the
determination and initial implementation of management actions to a wider audience, enhancing
the transfer of knowledge and approaches as encouraged under Chapter 15 of Agenda 21. This
project will strengthen international communication and cooperation and potentially lead to
enhanced international coordination within the international basin of the Upper Paraguay River.
The results of this project will provide a framework for addressing the transboundary issues
inherent in the management of the UPRB. Project deliverables will include the proceedings of
three international seminars on the UPRB. GEF: US $ 120,000; co-funding: US $ 60,000; total:
US $ 180,000.
Activity 9.3: Comprehensive Public Participation Programming. This Activity seeks to provide
a framework within which (a) a dialogue between the public and the agencies involved in the

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implementation of the integrated river basin management program can be established, and (b)
information can be transferred between the public at large and water resources and environmental
professionals both during the period of program formulation and subsequently during program
implementation. Inherent in such a program are activities that include public meetings, public
information campaigns, and other opportunities for public involvement, either individually or
within existing or future NGOs. Specific support for the Inter-American Water Resources
Network (IWRN) is provided as a means of disseminating information regarding the conduct and
findings of this project. The project will empower public action in support of planned objectives
and actions, and increase the awareness and active participation of communities in relation to
environmental concerns and their ability to interact in harmony with their environment. The
results of the project will (i) involve the public in the determination and implementation of
actions in support of a sustainable livelihood, and (ii) ensure a grass-roots level change in public
attitudes and behaviors, as envisioned in Federal Law 9433/97, in support of sound water
resources management practices within the UPRB. Project deliverables will include a documented
public participation strategy. GEF: US $ 200,000; co-funding: US $ 348,000; total: US $
548,000.
Activity 9.4: Implementation of an Integrated River Basin Management Program. Refinement
and implementation of an WMP is the principal objective of the project activities. This program
consists of the identification and harmonization of development initiatives in the UPRB, and the
strategic integration and rationalization of those initiatives and proposals for sustainable
development in the region. It will build upon the environmental evaluation of the basin (PCBAP),
emphasizing the analysis of transboundary problems and socioeconomic issues relating to
environmental practices and their relationship with the education, health, income and organization
of local population, as well as the identification and coordination of organizational arrangements.
Support to Government efforts at introducing environmental considerations into the laws and
regulations at the national and state levels is also part of the WMP. A practical result of the
WMP will be the explicit incorporation of the focal areas of interest to GEF into regional
development programs, incorporating methods and procedures for the solution of priority
transboundary environmental problems and obtaining global benefit. Project deliverables will
include the documented program for the integrated management of the UPRB. GEF: US $
900,000; co-funding: US $ 1,200,000; total: US $ 2,100,000 (inclusive of Administration fees and
Monitoring and Evaluation costs).
19. Table 4 presents an indicative work plan under which this two year project will be
implemented. Related work elements in which activities must be sequenced in order that relevant
information or data might be available for use in later Activities are shown along the same timeline
as the approximate date of Activity initiation. It should be noted that specific activities may be
initiated at any time during the six-month period preceding the indicated start date, as human and
financial resources, and prerequisite information availability, warrant. Further, it is anticipated
that each Activity is likely to be executed over the period of at least a year.
20. The total cost of the project is estimated at US $ 15,154,000. Total funding for the baseline
situation without GEF financing is US $ 9,642,500, as shown in Table 5. A further sum of US $

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80
270,000, included within the US $ 1,250,000 World Bank associated financing amount, is
currently earmarked for the UPRB under the World Bank-financed PRODEAGRO and may also
be considered as baseline financing under existing loan agreements. For the alternative project,
non-GEF financing by the Government of Brazil, the riparian states and other national, public and
private sources, is US $ 8,102,500. Financing by other international institutions is US $ 225,000,
comprised of funds provided by UNEP (US $ 150,000, in kind) and by OAS (US $ 75,000 in
kind). These investments are assumed to account for the full value of national benefits gained
under this project, and will be applied specifically to costs associated with issues such as waste
disposal, flood management, and navigation. The requested GEF contribution is US $ 6,328,500,
as shown in Table 6. Incremental GEF financing will be applied specifically to catalyze activities
such as mitigation and prevention of land degradation, wetland protection, and control and
minimization of persistent contaminants.
Table 4. Indicative Work Plan showing initiation date for Activitys.
October 1998
March 1999
October 1999
March 2000
October 2000
Steering
Steering
Steering
Steering
Steering
Committee
Committee
Committee
Committee
Committee
Formation
meeting
meeting
meeting
meeting
1.1
5.1
5.2
1.2
3.1
1.3
7.5
1.4
3.2
1.5
1.6
1.7
2.1
2.2
2.3
2.4
3.3
3.4
4.1
4.2
4.3
5.3
5.4
6.1
7.1
7.2
7.3
7.4
8.1
8.2
8.3
9.1
9.2
9.3
9.4

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81
Table 5. Incremental Cost Analysis (US $).
Baseline
Alternative
Increment
Global Environmental Benefits
Decreased Transboundary Transport
of Contaminants
Activities 1.4, 1.5
and 3.4
0
500,000
500,000
Increased River Wildlife Diversity
Activities 1.1, 2.4, 4.2,
5.1 and 5.2.
200,000
591,000
391,000
Decreased Degradation of Soils
Activities 2.2, 2.3, 3.1,
3.2 and 3.3
0
1,046,000
1,046,000
Increased Knowledge about River
Behavior
Activities 1.2 and 1.3
0
387,500
387,500
Improved Coordination of Actions for
River Management and Planning
Activities 1.6, 1.7, 2.1,
4.3, 5.3, 5.4, 7.1, 7.2, 7.3, 7.4, 7.5,
9.1, 9.3 and 9.4
1,340,000
4,559,000
3,219,000
Dissemination of Knowledge
Activities 4.1, 6.1, 8.1,
8.2, 8.3 and 9.2
0
785,000
785,000
Domestic Benefits
Decreased Transboundary Transport
of Contaminants
Activities 1.4, 1.5
and 3.4
547,500
547,500
0
Increased River Wildlife Diversity
Activities 1.1, 2.4, 4.2,
5.1 and 5.2.
1,501,500
1,501,500
0
Decreased Degradation of Soils
Activities 2.2, 2.3, 3.1,
3.2 and 3.3
1,650,000
1,650,000
0
Increased Knowledge about River
Behavior
Activities 1.2 and 1.3
430,500
430,500
0
Improved Coordination of Actions for
River Management and Planning
Activities 1.6, 1.7, 2.1,
4.3, 5.3, 5.4, 7.1, 7.2, 7.3, 7.4, 7.5,
9.1, 9.3 and 9.4
3,298,000
3,298,000
0
Dissemination of Knowledge
Activities 4.1, 6.1, 8.1,
8.2, 8.3 and 9.2
675,000
675,000
0

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82
Table 6. Component Financing (US $).
WORK ELEMENT
GEF
NON-GEF TOTAL
1.1 Formulation of Means to Promote
Fisheries Conservation in the Rio
Taquari/MS
83,000.00 375,000.00
458,000.00
1.2 Water Resources Assessment Rio
Taquari/MS
282,500.00 205,500.00
488,000.00
1.3 Water Resources Assessment
Rio Apa/MS
105,000.00 225,000.00
330,000.00
1.4 Distribution and Transportation of
Mercury within the Upper Paraguay River
Basin
170,000.00 180,000.00
350,000.00
1.5 Distribution and Transportation of
Agrochemicals and Heavy Metals
Within the UPRB
230,000.00 300,000.00
530,000.00
1.6 Water Resources Management in
The Vicinities of Corumba and Cuiaba
MS/MT
200,000.00 345,000.00
545,000.00
1.7 Communtity Based Problem Solving
Relating to "Meander Cuts" in the Rio
Taquari/MS
70,000.00
37,500.00
107,500.00
Sub-total
1,140,500.0 1,668,000.0 2,808,500.00
0
0
2.1 Management Program for
Development
Of Buffer Zones near Acurizal,
Penha and Doroche
150,000.00 127,500.00
277,500.00
2.2 Creation of Conservation Units in
Mato Grosso do Sul
140,000.00 142,500.00
282,500.00
2.3 Ecoregional Planning in the Pantanal
MS/MT
90,000.00 682,500.00
772,500.00
2.4 Measures for the Management of
Live Animal Trade in the Pantanal
75,000.00 522,000.00
597,000.00
Sub-total
455,000.00 1,474,500.0 1,929,500.00
0
3.1 Management of Soils and Soil Erosion
In the Taquari Basin
500,000.00 540,000.00 1,040,000.00
3.2 Measures to Rehabilitate Lands
Degraded by Mining Activity
180,000.00 165,000.00
345,000.00
(Pocone/MT)
3.3 Development of Measures to
Rehabilitate Riparian Lands. UPRB/MT
136,000.00 120,000.00
256,000.00
3.4 Environmental Management of Urban
Areas in the Vicinity of Rio Miranda and

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83
Rio Apa/MS
100,000.00
67,500.00
167,500.00
Sub-total
916,000.00 892,500.00 1,808,500.00
4.1 Determination of Environmental
Education Needs in the Tourism
60,000.00 285,000.00
345,000.00
Sector/MS
4.2 Development of Non-Governmental
Initiatives
75,000.00
45,000.00
120,000.00
4.3 Creation of Community Based
Alternatives for Eco-Ethnotourism in
80,000.00
48,000.00
128,000.00
Guato
Sub-total
215,000.00 378,000.00
593,000.00
5.1 Aquaculture as an Alternative in the
Pantanal. MS/MT.
100,000.00 472,500.00
572,500.00
5.2 Aquaculture in the Rio Taquari
58,000.00
87,000.00
145,000.00
5.3 Identification of the Need for a
Decision
Support System for the Upper Paraguay
River Basin
100,000.00
90,000.00
190,000.00
5.4 Identification of the Need for an
Integrated Hydrological Management
Model
for the Upper Paraguay River Basin
750,000.00 120,000.00
870,000.00
Sub-total
1,008,000.0
769,500.00 1,777,500.00
0
6.1 Development of a Public Information
Program/MS.
75,000.00
52,500.00
127,500.00
Sub-total
75,000.00
52,500.00
127,500.00
7.1 Strengthening Integrated
Environmental
Management in Corumba
50,000.00 192,000.00
242,000.00
7.2 Harmonizing Environmental
Legislation
within the Upper Paraguay River Basin/MS
125,000.00 150,000.00
275,000.00
7.3 Institutional Support to the (CIBHAP-
100,000.00
60,000.00
160,000.00
P)
7.4 Institutional Development of Inter-
Municipal Consortia. MS/MT
99,000.00 112,500.00
211,500.00
7.5 Development and Strengthening of
Institutions for Integrated Environmental
Management in the Rio Apa and Rio
Miranda Basins/MS
145,000.00
97,500.00
242,500.00
Sub-total
519,000.00 612,000.00 1,131,000.00
8.1 Training Environmental Science
Educators. MS/MT
100,000.00 157,500.00
257,500.00
8.2 Training Community Based Extension
Agents. MS/MT
290,000.00
60,000.00
350,000.00

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8.3 Training Water Resources and
Environ-
mental Science Technicians. MS/MT
140,000.00
60,000.00
200,000.00
Sub-total
530,000.00 277,500.00
807,500.00
9.1 Evaluation of Financing Mechanisms
for Sustainable Watershed Management
250,000.00 370,000.00
620,000.00
9.2 International Seminar on the Trans -
Boundary Water Resources of the Upper
Paraguay River Basin
120,000.00
60,000.00
180,000.00
9.3 Comprehensive Public Participation
Programming
200,000.00 348,000.00
548,000.00
9.4 Refinement of an Integrated River
Basin Management Program
900,000.00 1,200,000.0 2,100,000.00
0
Sub-total
1,470,000.0 1,978,000.0 3,448,000.00
0
0
TOTAL (Project Costs)
5,878,500.0 8,102,500.0 14,431,000.0
0
0
0
Additional Financing
World Bank Loans
1,250,000.0 1,250,000.00
0
TOTAL (Agency Contrib.)
1,250,000.0 1,250,000.00
0
PDF Preparation
GEF
286,000.00
286,000.00
Government of Brazil
162,000.00
162,000.00
UNEP
25,000.00
25,000.00
OAS
25,000.00
25,000.00
TOTAL (Preparation)
286,000.00 212,000.00
498,000.00
GRAND TOTAL
6,614,500.0 9,564,500.0 16,179,000.0
0
0
0

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