PROJECT BRIEF



1. IDENTIFIERS
PROJECT NUMBER


Project number not yet assigned (GF/8400-00-#)
PROJECT NAME


Costa Rica and Nicaragua - Formulation of a Strategic
Action Program for the Integrated Management of
Water Resources and the Sustainable Development of
the San Juan River Basin and its Coastal Zone
DURATION



3 years
IMPLEMENTING AGENCY UNEP
EXECUTING AGENCY

GS/OAS
MARENA - Ministerio de Ambiente y Recursos Naturales
(Ministry of Environment and Natural Resources)
MINAE - Ministerio de Ambiente y Energía (Ministry of
Environment and Energy)
REQUESTING COUNTRIES

Costa Rica and Nicaragua
ELIGIBILITY


Eligible under paragraph 9(b) of the Instrument
GEF FOCAL AREA
International
waters
GEF PROGRAMMING FRAMEWORK Operational Program Number 8, Water Body-based

2. SUMMARY
The San Juan River Basin and its coastal zone1, encompassing the subbasins of Lake Nicaragua and
the San Juan River, extends through southeastern Nicaragua and northeastern Costa Rica to the
Caribbean Sea linking ecosystems that are particularly valuable for their biodiversity and economic
potential. The Strategic Action Programme formulated under this project will contribute to the
conservation of natural ecosystems and to social and economic development in order to satisfy present
and future demands minimizing water conflicts. The major components of the SAP formulation
include: i) the strengthening of a basin-wide information system that provides the mechanisms for
gathering and dissemination of data adequate to the needs of decision-making for the integrated
management of the basin; ii) the creation of a well-coordinated bilateral planning process for the
SJRB; iii) the implementation of a public participation process; iv) the strengthening of public
institutions and private organizations; and v) the formulation and implementation of environmental
education activities. Its execution is expected to bring both local and global benefits, such as
conservation of the water cycle, the preservation of major water bodies and of the region's
biodiversity, and the protection of extensive carbon sinks. This proposal is based on the conclusions
and recommendations of the Transboundary Diagnostic Analysis (TDA) carried out under the PDF-B.

1 Hereinafter SJRB.

---

3. COSTS AND FINANCING (US $)
GEF
Project
3,233,220
Administrative
costs

413,600

PDF Block B

283,000
Sub-Total
GEF

3,929,820
_________________________________________________________________________________
CO-FINANCING UNEP


175,000
OAS

175,000
CRRH
100,000

Governments of Costa Rica and Nicaragua
984,990

Sub-Total GEF

1,434,990
_________________________________________________________________________________
TOTAL COST OF THE PROJECT 5,364,810
_________________________________________________________________________________
4. ASSOCIATED FINANCING

GEF/ UNDP (Mesoamerican Corridor)
320,000

DANIDA (Mesoamerican Corridor)
180,000

GTZ (Mesoamerican Corridor)
80,000

World Bank (Atlantic Biological Corridor)
350,000
_________________________________________________________________________________
5. FOCAL OPERATIONAL POINTS ENDORSEMENT
Costa Rica: Ms. Guaria Vargas, Executive Director,FUNDECOOPERACIÓN,
Date: 07/02/00
Nicaragua: Mr. García A. Cantarero D, Adviser to the Minister and Project Coordinator for
PROTIERRA, Ministry of Environment and Natural Resources (MARENA), Date: 25/10/99
__________________________________________________________________________
6. IA Contact:
Mr Ahmed Djoghlaf, Executive Co-ordinator, UNEP/GEF Co-ordination Office, UNEP, Nairobi,
Tel: 254 2 624153; Fax: 254 2 520825; Email: ahmed.djoghlaf@unep.org

---

LIST OF ACRONYMS/ABBREVIATIONS

AECI

Spanish International Cooperation Agency
AMURS

Asociación de Municipios del Río San Juan (Association of Municipalities
of the San Juan River)
ASCOMAFOR
Asociación para la Conservación y Manejo de Areas Forestales (Association
for the Conservation and Management of Forest Areas)
CATIE

Centro Agronómico Tropical de Investigación y Enseñanza (Research and
Training Center for Tropical Agriculture)
CCAD

Comisión Centroamericana de Ambiente y Desarrollo (Central American
Commission of Environment and Development)
CRRH

Comité Regional de Recursos Hídricos (Central American Committee on
Water Resources)
DANIDA

Danish International Development Agency
EU
European
Union
FINNIDA

Finnish International Development Agency
GEF
Global
Environment
Facility
GTZ

German Agency for Technical Cooperation
IDA


International Development Agency (World Bank)
IDB
Inter-American
Development
Bank
IDR


Instituto Nicaraguense de Desarrollo Rural (Nicaraguan Institute for Rural
Development)
INETER

Instituto Nicaraguense de Estudios Territoriales (Nicaraguan Institute for
Territorial Studies)
INIFOM

Instituto Nicaraguense de Fomento Municipal (Nicaraguan Institute of
Municipal Promotion)
KFW
German
Development
Bank
MARENA

Ministerio de Ambiente y Recursos Naturales (Ministry of Environment and
Natural Resources)
MARENAP

Protected Areas and Natural Resources Management Project of MARENA
MINAE

Ministerio de Ambiente y Energía (Ministry of Environment and Energy)
NDF
Nordic
Fund
NGO
Non
Governmental
Organizations
OAS

Organization of American States
PANIF
Nicaragua-Finland
Environmental
Program
PDF


Project Preparation and Development Facility
PROTIERRA
Reforma de Políticas de Recursos Naturales (Natural Resources Policy
Reform)
SAP
Strategic
Action
Program
SDC

Swiss Agency for Development and Cooperation
SIAPAZ

Sistema Integrado de Areas Protegidas para la Paz (Protected Areas
Integrated System for Peace)
SICA

Sistema de la Integración Centroamericana (Central American Integration
System)
SIDA

Swedish International Development Agency
SINAC

Sistema Nacional de Areas de Conservación (Conservation Areas National
System)
SJRB

San Juan River Basin and its Coastal Zone
TDA
Transboundary
Diagnostic
Analysis
UN
United
Nations
UNEP

United Nations Environment Programme
USAID

United States Agency for International Development
USDE

Unit for Sustainable Development and Environment
WB
World
Bank

---

PROJECT BRIEF

BACKGROUND

1.
The San Juan River Basin project area covers some 38,500 km2 in the basin itself, plus its
associated coastal zone on the Caribbean Sea. Of the land area, 64% is in southern Nicaragua and
36% in northern Costa Rica. The planning area covers the subbasins of Lake Nicaragua and of the
San Juan River, plus four smaller but nevertheless significant subbasins with natural links to this
system--the Indio and Maiz river basins in Nicaragua and the Colorado and Tortuguero river basins
in Costa Rica (see Annex F, Project Area Map).

2.
The waters of the Lake Nicaragua-San Juan River watershed flow through at least eight
distinct terrestrial ecosystems: i) dry tropical forest to the east, north, and west of Lake Nicaragua; ii)
cloud forest in the high areas of the Central Volcanic Cordillera of Costa Rica; iii) moist tropical
forest to the south and southwest of Lake Nicaragua and in the eastern foothills; iv) very moist
tropical forest in the San Juan Valley and on the coastal plains; v) gallery forest along river banks; vi)
wetlands to the south of Lake Nicaragua and at the confluences of the Colorado and Tortuguero
rivers with the San Juan; vii) second-growth forest, meadows, and agricultural land in extensive areas
of the basin; and viii) coastal forest and mangrove swamps on the Caribbean coast. The Indio and
Maiz river basins are basically covered by moist and very moist tropical forest.

3.
Because of this range of ecosystems and associated habitats, the SJRB has a wealth of
biodiversity. Its location in the natural biological corridor running the length of Central America has
made it a meeting ground for species from the subarctic areas of North America and others from the
subtropics of South America. To a great extent, its natural history is unique. The low population
density in many parts of the SJRB has kept it relatively pristine, although there is little information
on the potential future impact of human migration trends and the spread of agriculture in the basin.

4.
Regional studies now being carried out by the Central American Committee on Water
Resources, with international cooperation, lead to the conclusion that the fresh water in the San Juan
Basin is the only source capable of meeting the foreseeable development needs of the semiarid
Pacific slope of Central America, the region's most populated area. Thus, there is every likelihood
that this system will come under increasing pressure of human exploitation. In addition, because the
SJRB is also a common westward passageway for anticyclones from the Atlantic to the Pacific, the
threat of hurricanes and tropical storms, on top of the threats posed by volcanic activity and seismic
pressures that already make this fresh water supply specially vulnerable, further exacerbates the
human pressures likely to be experienced within this hydrologic system.

5.
Although not included in the project area, Lake Managua at times has been temporarily
connected with the SJRB and thus will be taken into consideration during the formulation of the SAP
for the basin. For example, the torrential rainfall associated with Hurricane Mitch in October 1998
caused Lake Managua to overflow its banks, flooding the surrounding areas and sending water into
Lake Nicaragua. To prevent such flooding in the future, the Government of Nicaragua now intends to
regulate the waters of Lake Managua, which will make transfers to Lake Nicaragua more frequent.
Various studies, in particular those undertaken by the Inter-American Development Bank (IDB) and
the German Technical Cooperation Agency (GTZ), have shown that Lake Managua is extremely
polluted. Thus Lake Nicaragua faces the threat of an influx of heavy metals, agrochemical waste
associated with pesticides and fertilizers, and industrial and urban effluents, all of which would
diminish the quality of its waters. With this in mind, the SJRB project will work in close coordination
with any initiatives or plans to regulate the level of Lake Managua. Close co-operation with the

---

UNEP/GEF project "Reducing Pesticide Runoff to the Caribbean" executed by the office of the
Regional Seas Programme for the Caribbean (CAR-RCU) is anticipated.

6.
Currently, the two countries lack adequate technical and institutional capacity to collect
comprehensive data on the SJRB and to implement the efficient policies for watershed planning and
integrated management that are needed to protect and rehabilitate water resources and ecosystems.
Paucity of resources, poor transportation infrastructure, the lack of attention to women in natural
resource management, and weak local institutions are common on both sides of the border. Given this
situation, the governments of Costa Rica and Nicaragua have proposed a joint approach to best
manage this complex hydrologic system, within the constraints imposed by demography and
geography.

CONTEXT

7.
National and Regional Programming context. Support for a regional approach in the
management of the SJRB was forthcoming as early as the XIII Summit of Central American
Presidents, held in Panama in December of 1992. The Central American Action Plan for the
Development of Border Zones, in which the San Juan River Basin was named as a priority area led to
the 1994 request, by the governments of Costa Rica and Nicaragua to UNEP and the OAS, to
undertake a diagnostic study on the state of the SJRB environment. That study was carried out during
1995-1996 by MINAE and MARENA, and published in 1997 as the "Diagnostic Study of the San
Juan River Basin and Guidelines for an Action Plan". The proposed SAP formulation program
reflects the prioritized view of the countries. Policy and programmatic limitation imposed by the
GEF as well as community- and country-level priorities, govern the emphases placed on the various
activities included in the SAP formulation program.

8.
The execution of the SJRB project also contributed to the implementation of the priorities set
under the Central American Alliance for Sustainable Development, agreed by the Central American
Presidents in October 1994. These priorities include a variety of economic goals, such as
development of border areas, conservation of natural resources, and protection of biodiversity; and
specifically reference strengthening the Meso-American biological corridor, achieving sustainable
use of water resources, and protecting the integrity of drainage basins. The Joint Declaration of the
XXX Meeting of Central American Vice-Presidents, agreed in Managua on May 7, 1999, further
noted the "desire to continue supporting the sustainable development of all border areas in the
region." The currently proposed project to develop a Strategic Action Program (SAP) for the SJRB
will further contribute to this regional initiative, as well as to the development of an Action Plan for
Integrated Water Resources Management on the Central American Isthmus, being prepared by the
Central American Commission of Environment and Development (CCAD) and the Secretariat of the
Central American Integration System (SICA) -- in response to the devastation caused by Hurricane
Mitch. This latter plan aims to build national and regional capacities in the field of integrated water
resources management on a foundation of watershed planning, a stronger legal framework, and better
institutional and organizational capabilities. The present project would allow Nicaragua and Costa
Rica to proceed with a vanguard action in the region and to gain experience and technical capabilities
that could later be shared with the other countries of the isthmus in the framework of the Plan.

9.
To this end, both countries have given great importance to assuring that local governments
become aware of the need to work together on environmental problems and to use natural resources
in a sustainable fashion. In Nicaragua, municipal associations have been created to promote the
protection of the San Juan River and Lake Nicaragua. In Costa Rica, municipalities in the basin have
come together to form an association. Recently a federation of border municipalities from both

2

---

countries was set up to pursue various goals, including environmental management. It should be said,
however, that these organizations are still young and weak, and have not yet clearly delineated their
work by basins and subbasins.

10.
Finally, while the SJRB project calls for the identification of strategies for the resolution of
environmental problems shared by the two countries, all jurisdictional aspects related to the
management of the coastal zone and nearshore marine area are beyond the scope of this project and
will be addressed in other ways by the basin governments.

11.
GEF Programming Context. Both countries are eligible for GEF assistance under paragraph
9b of the Instrument for the Restructured GEF. This Project conforms with the GEF Operational
Strategy and Operational Programs, in particular the Water-body based Operational Program #8 . It will
illustrate how freshwater basin and coastal management can be integrated to resolve transboundary
issues and will also serve as a demonstration project for the implementation of the Global Programme
of Action for the Protection of the Marine Environment from Land-based Activities (GPA) in Latin
America.

12.
GPA Programming Context. The goal of the GPA (adopted by 109 governments at the
Washington Conference in November 1995) is to prevent degradation of the marine environment
from land-based activities by assisting States in preventing and reducing major threats to the health,
productivity and biodiversity of the marine environment resulting from human activities on land and
in coastal areas. Thus, the GPA is designed to be a source of conceptual and practical guidance to
assist States in taking action, individually or jointly within their respective policies, priorities and
resources, that will lead to the prevention, reduction, control and/or elimination of degradation of the
marine environment, as well as to its recovery from the impacts of land-based activities.

13.
Implementing Agency Programming Context. The proposed actions are consistent with
the UNEP Environmentally Sound Management of Inland Waters (EMINWA) integrated watershed
management planning process and related, regional seas programme. The proposed actions are also
consistent with UNEP's role under the GPA/LBA.

PRESENT AND EMERGING ENVIRONMENTAL PROBLEMS

14.
The GEF Operational Strategy lists four major areas of concern relating to international
waters: i) degradation of the quality of water resources; ii) physical habitat degradation of coastal and
near-shore marine areas, lakes and watercourses; iii) the introduction of exotic species that disrupt
aquatic and land ecosystems and iv) excessive and/or inappropriate exploitation of resources due to
inadequate management and control measures. All these problems were identified in the SJRB during
the Transboundary Diagnostic Analysis (TDA), which was carried out with PDF Block B funds. The
analysis was carried out with the active participation of key stakeholders, and based upon an earlier
study, carried out jointly by UNEP and the OAS, that pointed to a number of current and emerging
problems that threaten the sustainability of development in the San Juan River Basin and ultimately
the quality of life of the people who live there. These transboundary environmental problems often
have common roots (see Annex D) and manifest themselves both individually and collectively. They
are closely interrelated, but in the interest of seeking solutions they have been broken down as
follows:

(a)
The accelerating degradation of transboundary ecosystems. In the traditional uses of the
main ecosystems of the area, human activities have exerted pressures on the environment and
resulted in conflicts among the various groups involved, with negative consequences for the

3

---

quality of water resources. These consequences include inadequate urban, industrial, and
agroindustrial wastewater treatment systems; migratory agriculture, extensive grazing and the
consequent extension of the agricultural frontier; widespread cutting of trees for timber,
unregulated ecotourism, non-conservationist farming practices, the introduction of aggressive
exotic species such as Tilapia mossambica; and uncontrolled fires in the drier forests and of
grassland. An emerging problem is the growing use of small and very small hydropower
plants to tap the considerable hydroelectric potential of the region.
(b)
Overexploitation of valuable natural resources. The problems here are related to poor
land use, especially the farming of hillside areas and wetlands, the construction of poorly
designed roads, unregulated fishing, and excessive exploitation of valuable moist tropical
forest species and the destruction of plant cover in fragile areas, causing erosion and land
degradation. The result is a loss of potential income from agriculture, fishing and tourism, a
threat to biodiversity and the natural productivity of the ecosystem, and a change in coastal
and inland waterway dynamics. There are signs that three marine and freshwater species are
being over exploited: Carcharhinus leucas, locally called "bull shark" or "freshwater shark"
because of its unique behavior of migrating between the Caribbean Sea and Lake Nicaragua;
Macrobrachium carminus or freshwater shrimp; and Panalirus argus or spiny lobster.
(c)
Soil degradation and increasing sedimentation. Part of the sedimentation of the San Juan
River and its coastal zone is produced as a result of natural processes, according to historic
documents.2 Nevertheless, road construction, the advancing agricultural frontier, and hillside
farming without adequate soil-conservation techniques exacerbate sedimentation problems,
as well the emerging problems arising from open-pit mining and the extraction of
construction materials.
(d)
Pollution of water bodies. The main causes of water pollution are the indiscriminate use of
pesticides and fertilizers, especially where intensive farming practices are used, and urban,
industrial, and agroindustrial waste discharges. The water bodies being affected in Nicaragua
are Lake Nicaragua, the San Juan River and its coastal zone, the wetlands to the south of
Lake Nicaragua. In Costa Rica the Caño Negro wetlands, the Colorado River, and the
Tortuguero canals are suffering the consequences of degraded water quality. Sporadic die-
offs of aquatic fauna and flora give evidence of such degradation, as do small-scale and
occasional studies of water quality that have been carried out in some parts of the SJRB.
(e)
High vulnerability to natural hazards. This is apparent in the devastating impact of
hurricanes and tropical storms on the region's ill-housed populations, on its infrastructure,
and on crops grown in areas where the forest has been cleared and the soil is fragile--areas
exposed to landslides caused by hurricanes, tropical storms, and seismic or volcanic activity.
Natural hazards can have a drastic -- and dramatic -- effect on the watercourses of the region.

15.
The principal root causes of these major environmental problems are set forth in the Annex D
and summarized below as follows:

(a)
Inadequate Planning and Management. Although MINAE and MARENA are both trying
to promote integrated watershed management using the legal mechanisms provided within

2. SQUIER (Ephraim George), Nicaragua, it's People, Scenery, Monuments and the Proposed Inter Oceanic
Canal. New York, D. Appleton and Co., 1852, Vol. 2, p. 221.
Report to the Commission composed by captains and second officers of the vessels Diadem, Valorous and
César to Captain Charles Frederick, chief of the Britain fleet in San Juan del Norte, dated on February 1 of
1859. Public Record Office, London. Microfilm FO-53, rollo 17, #43, p. 7.


4

---

each country through their own environmental legislation, there is no watershed planning and
administration capacity in place. There have been no mechanisms for coordinating
management and control across the international border and, thus, no ongoing institutional
approach to water resources management in the SJRB. The lack of comprehensive up-to-date
data on the SJRB­how it is structured, how it works, what its socioeconomic dynamics are,
how information is managed at the local level­makes it impossible to proceed with the
minimum certainty needed.
(b)
Weak institutions. Although both countries have quite comprehensive legislation on
environmental management and the sustainable use of natural resources that could be
implemented locally, a paucity of financial and human resources on the local level and the
poverty in which most of the population lives makes compliance difficult.
(c)
Insufficient human and institutional capacity. Natural resource management is inefficient
and it will not be possible to strengthen environmental command-and-control mechanisms
without first creating local economic foundations and training people.
(d)
Limited stakeholder participation. There is currently limited participation by stakeholders
in sustainable development due to centralization of decision-making, which the governments
are currently trying to change. This situation, added to reductions in the size of government,
has hampered local action. This project recognizes the need to promote and strengthen civil
society organizations, increase the participation of women, and involve more people in
decision-making on the sustainable development of the SJRB. The initial steps toward
enhancing stakeholder participation have been already taken during the execution of the
Block B program and through other actions of MINAE and MARENA. These steps now
need to be reinforced and further developed through programs to educate people about
sustainable development and adopting sustainable production practices and lifestyles within a
comprehensive watershed management approach that does not yet exist.
(e)
Extreme poverty. Extreme poverty, combined with high population growth, low incomes
and a subsistence economy, poor sanitation conditions, and a relative imbalance in
employment and income-generating opportunities between the two countries, characterizes
the current level of economic development in the SJRB. Uncontrolled migration exacerbates
the situation, by exceeding the capacity of existing institutions to meet all the sanitation,
health, and educational needs created. The economic conditions force the inhabitants to move
to the mountainsides and practice slash-and-burn agriculture just to survive. These reactions
contribute to the environmental degradation being experienced in the SJRB, but can be
addressed, in part, through building institutional capacities and creating economic
instruments, neither now existing, to address such problems.

RATIONALE AND OBJECTIVES

16.
The purpose of this request is to procure financing for the formulation of a Strategic Action
Program for the Integrated Management of Water Resources and the Sustainable Development
of the San Juan River Basin and its Coastal Zone. The ultimate objective of the SAP is to ensure
the availability of the goods and services provided by water resources for conserving natural
ecosystems and social and economic development in order to satisfy present and future demands as
agreed by all parties involved. In this way conflicts related to the use of the goods and services
generated by SJRB ecosystems will be minimized through a coordinated program of action
conducted jointly by the two countries. The major components of the SAP formulation include: i) the
strengthening of a basin-wide information system that provides the mechanisms for gathering and
dissemination of data adequate to the needs of decision-making for the integrated management of the
basin; ii) the creation of a well-coordinated bilateral planning process for the SJRB; iii) the
implementation of a gender oriented public participation process; iv) the strengthening of public

5

---

institutions and private organizations; and v) the formulation and implementation of environmental
education activities.

17.
Coordination between the two countries is an important mechanism that can help to improve
the quality of life of the inhabitants and protect the ecosystem. This cooperation will support the
coordination of research and transboundary management. It will permit the interaction of government
institutions and NGOs, strengthening both and making possible a more integrated ­ and thus more
sustainable ­ development.

18.
The SAP will create a framework for future action and a timetable of activities for the
protection and use of the numerous goods and services offered by the water resources and ecosystems
of the SJRB. It will thus promote the sustainable development of the region. The SAP will lay out a
series of measures to reduce and/or eliminate current and emerging problems affecting the
conservation and development of the SJRB. It will enhance the transboundary and global benefits
obtained when development is both integrated and participatory, and when environmental education,
technology transfer, and institutional strengthening are key elements of a program.

19.
The SAP will address priority transboundary needs and focus on long-term solutions to the
current and emerging problems facing the SJRB. Furthermore, it will propose a series of projects
based on experience gathered from demonstrations of new technologies, taking into account their real
costs and the capacity of the institutions and organizations involved to execute them.

COMPONENTS AND EXPECTED RESULTS

20.
To achieve the foregoing objectives, the SAP will be developed on the basis of the seven
components identified below--the specific activities comprising these components being set forth in
the detailed work program appended hereto as Annex H.

21.
Component 1: Formulation of the SAP. Development of the SAP is the core task to be
completed by the Technical Units in close consultation with UNEP and the GS/OAS pursuant to the
implementation arrangements set forth in paragraph 45 and following. The outcome of the SAP can
not be determined a priori, however, strategic actions were anticipated based upon the findings of the
information previously gathered during the PDF-B phase of the program and that derived from the
TDA. Components 2 through 7 will provide the knowledge base upon which the SAP will be
formulated. Thus, the Technical Units will (1) assemble the results of the work of components 2
through 7--the cost assessments and feasibility studies conducted at specific locations within the
SJRB over the 36-month project period--, (2) collate and integrate these outputs with the information
previously assembled during the PDF-B phase of the program using as well information deriving
from the TDA, and (3) synthesize a strategic program of action to implement specific management
measures within the San Juan River Basin following the completion of this project. Integrated
management entails the coordinated management of land and water resources at the local or
community level within the context of the cumulative impacts and effects of those actions on the
basin as a whole, including the coastal zone.

22.
Specific detailed Terms of Reference will be prepared by the Technical Units in close
consultation with UNEP and GS/OAS, during the first quarter of the project period. This component
element is anticipated to be initiated according to the timetable presented in Table 1 of Annex H. A
detailed preliminary work programme is presented in Annex H of this document. The total cost of
drafting the SAP will be US$1,314,140 of which US$702,000 is the cost to GEF, and US$612,140 is
the co-financing.

6

---

23.
Component 2: SJRB information system. The objective of this Component is to enhance
the capabilities of existing infrastructure in the decision-making process at all levels of government,
and to encourage technical cooperation at the national level, by contributing and disseminating
information among stakeholders, while, in the first instance, specifically facilitate data acquisition
and sharing through an improved system. The PDF-B activities identified specific and serious gaps in
the availability of information needed to quantify, assess, and address priority transboundary
problems and issues of concern (comprised both scientific data and institutional capacity including
human capacity to collect, analyze and interpret such data) necessary to formulate an SAP.
Acquisition of data is vital to the successful preparation of an effective SAP. Creation of the
institutional and human capacities to obtain and use these data is also critical to the long-term success
of the SAP. Thus, as part of the SAP formulation, studies will be conducted to measure the region's
vulnerability to erosion, sedimentation and its effects on the dynamics of the river system and the
coastal zone, and natural disasters. One key area is lack of comprehensive knowledge of physical
information across the entire basin on rainfall and runoff, water quality, and erosion and
sedimentation. Recognizing the difficulty in extrapolation from short time-series, the study will
initially evaluate alternative strategies for data collection in order to optimize the amount and
minimize the cost of useful and reliable data that are available for SAP formulation. An outcome will
be a quantitative evaluation of the region's vulnerability to erosion, sedimentation and its effects on
the dynamics of the river system and the coastal zone and linkage to natural disasters, and on water
quality so that appropriate measures for point and non-point source mitigation can be identified in the
SAP. Another major gap is information on the physical, chemical and biological characteristics of
Lake Nicaragua and how these will respond to increases in human impacts. Because one aspect of the
SAP will focus on future management of Lake Nicaragua, there will be a targeted set of activities
focusing on physico-chemical data that will be essential for formulating those specific actions that
will be recommended in the SAP that pertain to lake basin carrying capacity and eutrophication,
contamination, and ecological functions. Critical areas within the SJRB will be identified and
ecosystem deterioration will be described on the basis of agreed-upon objectives for water and land
use and basic data on aquatic biodiversity, specially, but not exclusively, in the coastal zone. Other
specific studies will include socioeconomic research, particularly on migration patterns, eco-tourism,
and job creation, and also research into the natural history and the distribution, structure, and
functions of the major ecosystems within the SJRB, in order to elucidate and compile the types of
information required in these various sectoral activities. As part of these activities, attention will be
given to cost-effective and sustainable methods for capturing, storing, analyzing and disseminating
the data from these various activities within the framework of an environmental information
system(s). This will include existing components such as GIS, plus other functionalities within a
systems and communications architecture that will be sustainable beyond this project. The design of
the information system will include mechanisms for institutionalizing it after the SAP is completed.

24.
The execution of these activities will be undertaken by the relevant national institutions and
organizations such as MARENA, MINAE, SINAC, INETER, and academic institutions and research
centers. The coordination and supervision will be ensured by the Technical Units at MINAE and
MARENA. Specific detailed Terms of Reference will be prepared by the Technical Coordinators in
close consultation with UNEP and GS/OAS, during the first quarter of the project period. This
component is anticipated to be initiated according to the timetable presented in Table 1 of section H.
A preliminary detailed workprogram is presented in Annex H of this document. The total cost of this
component will be US$ 1,395,570 of which US$ 1,083,000 is the cost to the GEF and US$$ 212,570
is co-funding.


7

---

25.
Each of the following Component of the SAP formulation, relates to specific data or
experiential needs necessary to identify, quantify and refine strategic actions necessary to sustainably
manage the San Juan River Basin. The activities within the Components relate directly to
recommendations contained within the Transboundary Diagnostic Analysis (TDA), supported by
stakeholder initiatives. Together with existing information, gathered during the PDF-B phase, this
information will allow formulation of an SAP consistent with current scientific and technical
principals for integrated watershed management.

26.
Component 3: Strategic actions with stakeholder involvement. Strategic planning and
management will depend on integrating basic research with a series of activities and investment
projects carried out within the identified geographic and subject areas to be targeted for development.
Historically, such projects have lacked effective stakeholder involvement as a result of the
institutional and human resource issues identified above. As an integral part of the process of
formulating the SAP for the SJRB, a series of demonstration activities illustrative of ways and means
for promoting sustainable agriculture production and the conservation restoration of land and water
ecosystems will be conducted, providing both an assessment of cost and feasibility, and specific
examples to local communities of alternative means of production and land and water resource
management. Economic mechanisms contributing to the sustainable management of natural resources
and to meeting the demand of the inhabitants for improved living conditions, and to solve the
conflicts that can arise over plans and decisions affecting resource use will be specifically identified
and developed. The cost to the GEF of conducting four demonstration projects in various economic
sectors to establish effective mechanisms for the inclusion of stakeholders and sectoral concerns in
the environmental management of the SJRB, and including specific public and stakeholder
participation opportunities in defined areas within the SJRB (see Component 4, below), will be US $
337,000. This component will facilitate interaction between the GEF-funded activities and those of
on-going development projects, totaling approximately US $ 25 million of which approximately 75%
are being funded by other agencies.

27.
The execution of these activities will be undertaken by the relevant national institutions and
organizations such as MARENA, MINAE, SINAC, municipal organizations and NGOs such as
Productores Unidos para el Desarollo. The coordination and supervision will be ensured by the
Technical Units at MINAE and MARENA. Specific detailed Terms of Reference will be prepared by
the Technical Coordinators in close consultation with UNEP and GS/OAS, during the first quarter of
the project period. This component is anticipated to be initiated according to the timetable presented
in Table 1 of section H. A preliminary detailed workprogram is presented in Annex H of this
document. The total cost of this activity will be US$ 401,070 of which US$ 337,000 is the cost to the
GEF and US $ 64,070 represents the co-funding.

28.
Component 4: Public Participation. This component will foster and support the
participation of all stakeholders, including the general public, in the development and implementation
of the activities carried out under the SJRB project, and complement the activities proposed under
Component 3 (above). Success is dependent on identifying and motivating stakeholders and giving
them an opportunity to participate, including, where necessary, through financial contributions.
National and binational workshops will be organized to give stakeholders the opportunity to become
involved, to engage their commitment and facilitate SAP implementation. The project team will
strive to assure gender balance in these activities. To establish a broad base of participation and learn
the capacity of organizations to carry out actions, the four demonstration projects in various natural
areas within the SJRB are envisioned. These activities are to be more broadly based and inclusive of
the general public and public-at-large than those to be conducted under Component 3 (above), and
will contribute to inclusion of public inputs beyond those considered from an economic perspective.

8

---

29.
The execution of these activities will be undertaken by the relevant national institutions and
organizations such as MARENA, and MINAE, municipal organizations such as ASCOMAFOR and
NGOs such as Fundación del Rio. The coordination and supervision will be ensured by the
Technical Units at MINAE and MARENA. Specific detailed Terms of Reference will be prepared by
the Technical Coordinators in close consultation with UNEP and GS/OAS, during the first quarter of
the project period. This component is anticipated to be initiated according to the timetable presented
in Table 1 of section H. A preliminary detailed workprogram is presented in Annex H of this
document. The total cost of this component is US $ 594,070 of which US $ 484,500 is the cost to the
GEF and US $ 109,570 is co-funding.

30.
Component 5: Local, national and bi-national level institutional arrangements. This component is
designed to correct problems identified in the TDA regarding the shortcomings in institutions working at the local and
national levels, and to encourage enhancement of binational coordination between institutions within the SJRB as well
as to ensure that the prescribed actions of the SAP are incorporated into national policies. Technical meetings
bringing together MINAE and MARENA personnel and cooperative research efforts between universities and other
institutions of both countries will be promoted. Current institutional arrangements and the role they play in the
management of the San Juan River Basin will be reviewed. This component is complementary
to component 6.

31.
The execution of these activities will be undertaken by the relevant national institutions and
organizations such as MARENA, and MINAE, and academic institutions and research centers. The
coordination and supervision will be ensured by the Technical Units at MINAE and MARENA.
Specific detailed Terms of Reference will be prepared by the Technical Coordinators in close
consultation with UNEP and GS/OAS, during the first quarter of the project period. This component
is anticipated to be initiated according to the timetable presented in Table 1 of section H. A
preliminary detailed workprogram is presented in Annex H of this document. The cost total cost of
developing an enhanced level of coordination among institutions at all levels within the SJRB will be
US $ 174,080 of which the cost to the GEF is US$158,720 and US $ 15,360 represents the co-
funding.

32.
Component 6: Capacity building and institutional strengthening. This component will
foster the formation of basin councils in critical subbasins and encourage the participation of such
councils within the municipal sustainable development councils existing within the SJRB. The
Federation of Local Border Governments will be strengthened through specific activities with clearly
defined goals in order to promote the strengthening and further development of coordination
mechanisms at the local level. A proposal to strengthen institutions will be drafted with measures for:
i) building sustainable development planning and management capacities; ii) improving
infrastructure; iii) equipping institutions; and iv) designing mechanisms to increase the incomes of
local and regional institutions. These activities will be supported by two demonstration projects
establishing costs and feasibility of achieving integrated management as well as assessment of
specific paradigms to be developed at specific sites within the SJRB.

33.
The execution of these activities will be undertaken by the relevant national institutions and
organizations such as MARENA, and MINAE, and municipal organizations such as AMURS. The
coordination and supervision will be ensured by the Technical Units at MINAE and MARENA.
Specific detailed Terms of Reference will be prepared by the Technical Coordinators in close
consultation with UNEP and GS/OAS, during the first quarter of the project period. This component
is anticipated to be initiated according to the timetable presented in Table 1 of section H. A
preliminary detailed workprogram is presented in Annex H of this document. The total cost of this

9

---

component will be US $ 253,710 of which US $ 214,000 is the cost to the GEF, and US $ 39,710
represents co-funding.

34.
Component 7: Education and training in conservation and the sustainable use of
natural resources. This component has been designed to provide the building blocks of an education
and training Program that will make the inhabitants of the SJRB more aware of the important role
that water resources play in society, in the economy, and in nature. It will be especially geared to
students and young people, who generally are more willing to change their habits and production
practices, and who have been shown to be effective conduits by which such habits and practices can
be transferred into individual households to the benefit of entire communities. Best sustainable
production practices will be identified. The information will be disseminated in both countries and
knowledge will be furthered through training for various kinds of local organizations working in the
fields of development and environmental conservation. Workshops, seminars, and technical meetings
will be held in conjunction with the preparation of the SAP. Materials for environmental education
will be collected, designed, and implemented in three demonstration projects, which will be evaluated
to aid in the design of the implementation Program. These programs will be used to define costs and
feasibility of specific educational measures in the management of the SJRB. The cost to the GEF of
this component will be US $ 254,000.

35.
The execution of these activities will be undertaken by the relevant national institutions and
organizations such as MARENA, and MINAE, municipal organizations and NGOs. The
coordination and supervision will be ensured by the Technical Units at MINAE and MARENA.
Specific detailed Terms of Reference will be prepared by the Technical Coordinators in close
consultation with UNEP and GS/OAS, during the first quarter of the project period. This component
is anticipated to be initiated according to the timetable presented in Table 1 of section H. A
preliminary detailed workprogram is presented in Annex H of this document. The total cost of this
component is US $ 320,570 of which the cost to the GEF will be US $ 254,000 and US $ 66,570
represents co-funding.

36.
The result of these actions will be the formulation of a SAP that will set forth strategic
actions for the sustainable development of the SJRB, including domestic and transboundary
investment projects, and result in a request for GEF financing to implement activities important to the
global environment, and other investment needed to be covered by funds from other agencies or from
domestic sources. The actions will be organized according to the basins and subbasins of the SJRB.
A public participation program developed during the PDF-B process will enable stakeholders to take
part in activities and decisions regarding the planning and implementation of an active and
continuous policy, programs, and projects for the integrated management of the SJRB, with emphasis
on the involvement of women and young people. Mechanisms for coordinated participatory action at
the basin and subbasin level will be incorporated by means of basin councils or similar organizations.








RISKS AND SUSTAINABILITY


10

---

37.
In order to formulate a SAP for the sustainable development of the SJRB by bringing the
people of Costa Rica and Nicaragua together in a participatory and coordinated fashion, several
assumptions with certain inherent risks have been made. They are described below.

38.
Since there is no bilateral legal and institutional framework for the well-ordered management
of the SJRB or for common administrative actions to be taken on its behalf, the governments of Costa
Rica and Nicaragua have each studied this request for financing in accordance with their internal
procedures and will each submit it to UNEP/GEF for consideration. This is the same procedure they
followed previously in applying for and receiving PDF Block B funds.

39.
The governments have decided to use this project as an instrument of cooperation and mutual
understanding for the benefit of their natural ecosystems, the environment and sustainable
development of both countries, of Central America, and of the international community as a whole.
The just completed phase is testimony to this desire. Thus, while all issues related to jurisdictional
concerns remain to be resolved outside of the context of this project, a satisfactory resolution is
presupposed.

40.
Further, it is assumed that work already done in the SJRB has led to the correct identification
of problems. In this regard, the TDA is and will continue to be of great significance, and will have to
be continually updated.

41.
It has also been assumed that the governments, local organizations, and universities want to
cooperate and coordinate activities in the SJRB. Since these proposals were formulated with the
widespread participation of all interested groups, including both national governments, it would seem
that this assumption is grounded in reality. Nevertheless, a constant effort by the Technical Units will
be necessary to assure coordination on the part of the institutions and organizations of both countries.

42.
Another major assumption is that financing and other resources are available. If the previous
assumptions regarding the attitude of the stakeholders, including both governments, are valid, the
assumptions regarding the real availability of financing and other resources become all the more well
founded.

43.
To a large extent, the success of the SJRB project will depend on the timetable, or more
precisely, on the performance of each component at the right time. To assure that this is the case,
each country will name a technical coordinator to work directly under the executing agency.
Moreover, the SAP will be given great flexibility, as occurred in the preparatory stage.

44.
The national governments have pledged their support to actions proposed to be implemented
with the incremental financial assistance of the GEF by allocating to this project important state and
national financial resources. Further, it is believed that local level initiatives can form a model upon
which country level initiatives can be built over time hence the adoption of a "bottom-up" approach
in most of the project activities. It is anticipated that these "bottom-up" approach with the active
participation of key stakeholders will enhance the likelyhood of SAP findings inclusion into national
policies. The risk however that these local level initiatives are not adopted at the country level is the
principal risk facing this project and has been identified as such hereabove. Finally, the SJRB project
is being used as a pilot project for the formulation and implementation of a Strategic Action Plan for
the Central American Isthmus. This regional SAP seeks the implementation of regional policies for
the integrated management of water resources in the Central American Isthmus. It will therefore,
endorse SJRB SAP findings at a regional level, increasing further the probability of incorporating
them into national policies.

11

---

IMPLEMENTATION ARRANGEMENTS AND STAKEHOLDER PARTICIPATION

45.
This phase of the project, whose purpose is to prepare a SAP for the sustainable development
of the SJRB, will continue to be executed by the governments of Costa Rica and Nicaragua, through
MINAE and MARENA respectively. A series of well-defined activities will have to be implemented
in each country and throughout the SJRB. The coordination of these activities will be carried out by
the two technical units in the national executing ministries. 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.

46.
The technical units charged with drafting the SAP will each have a national director,
appointed by the executing ministry, and a technical coordinator to be contracted by the USDE/OAS
in consultation with the governments and UNEP for the full 36 months of the project. The posts of
technical coordinators have been budgeted at US $ 3,500/month each, for a total of US $ 252,000.
The costs of communications, travel, copying, operations, and clerical services have been budgeted at
US $ 450,000 putting the total cost to the GEF of drafting the SAP at US $ 702,000.

47.
A Steering Committee will be established for the project, composed of the ministers of
MINAE and MARENA, a representative of each country's Foreign Ministry, representatives of
associations of municipalities, the Director of USDE/OAS, the Director of the Division of
Environmental Information Assessment and Early Warning of UNEP, and the project's two national
directors. Observers will include the other two GEF implementing agencies (World Bank and
UNDP), the technical coordinators, and other cooperation agencies willing to be part of the SAP.
This board will be the highest organ of the project and will meet at least twice a year. It is charged
with approving the work plans of the technical units, the terms of reference of the demonstration
projects, and any advisory opinions that OAS/USDE may present in concert with the national
directors and the technical coordinators. Also, any significant change to programs and budgets must
be approved at this level.

48.
A Consultative Committee will be set up in each country. It will include national institutions
involved in the management of the SJRB, private organizations taking part in the project and
academic institutions. Its role will be to promote the active participation of the institutions and to
advise on the orientations of the project. It will be co-chaired by the national directors and will also
serve as a mechanism for the coordination of national actions.

49.
Binational coordination will be promoted at various levels and through the exchange of
information of the demonstration projects. To make progress on the studies and the preparation of the
SAP, six binational workshops (two each a year) are being planned. At US $ 17,250, the total cost
will be US $ 103,500. Twelve national workshops will also be organized, two a year in each country.
At US $ 5,000 each, the total cost will be US $ 60,000. For all this it will be necessary to contract 27
months of international consulting services at US $ 10,000/month, for a total of US $ 270,000, and
159 months of national consulting services at US $ 2,000/month for a total of US $ 318,000.

50.
Seven meetings of the Steering Committee are being planned for the three-year period. Six
will be in Costa Rica and Nicaragua at a cost of US $ 44,720. The final meeting at the end of the
period will take place in Washington, D.C., and travel costs have been calculated at US $ 10,000. It

12

---

is anticipated that the last couple of Steering Committee meetings will be preceded by donor
roundtables to ensure donors buy-in and financial support for the SAP.

51.
Successful implementation of the project will depend on the active participation of
stakeholders in the Basin. To assure this, the proposal has specific elements for participation. Thus,
the programs on public participation and education and training are of fundamental importance.

52.
More than 100 institutions, government agencies, and civil society organizations took part in
preparing this proposal, contributing their experience and hands-on knowledge to identify the
elements needed to formulate, validate and identify the strategy for the formulation of the a SAP. In
addition, more than 40 technical proposals, pilot project proposals, and recommendations for action
were received. Studies carried out by consultants and technical reports and other government
documentation from both countries were also important sources. Information was thus gleaned to
complement the Diagnostic Study of the San Juan River Basin and Guidelines for a Plan of Action
and to discover any gaps in knowledge and understanding of current and emerging transboundary
environmental problems.

53.
In addition to the public participation, fourteen consultants worked on this proposal: four
from Costa Rica, five from Nicaragua, and five from other countries. The proposal is consistent with
the environmental policies of Costa Rica and Nicaragua, and both MINAE and MARENA were
regularly consulted. Two meetings with the cooperating agencies were organized, to open the doors
of the project even wider and to make it a catalyst for generating other sources of financing for
activities identified as priorities for the sustainable development of the SJRB. They proved very
useful in learning about current and planned activities and in seeking mechanisms for coordination.

INCREMENTAL COST AND PROJECT FINANCING

54.
The total baseline of the project is estimated at US$ 24.43 million and the alternative
scenario is estimated at US $ 29.86 million. The incremental cost is estimated at US $ 5.43 million
of which 18%, or US $ 0.98 million is the estimated financial and in-kind contribution of local and
national stakeholders. In addition to the US $ 283,000 grant from the PDF Block B, already
disbursed, GEF is requested to finance US $ 3.72 million.


13

---

PROJECT FINANCING
(in thousand of US dollars)

Component/
Base
Alternative
Incremental
Co-financing GEF
Associated
Other Costs
Line3
Scenario4
Cost5
Financing
Gov. UNEP
OAS
CRRH

Component #1
900.00
2,214.14
1,314.14 312.14 150.00
150.00 0.00 702.00 0.00
Component #2
2,363.68
3,759.25
1,395.57 212.57 0.00 0.00 100.00
1,083.00 228.07
Component #3
4,754.44
5,155.51
401.07 64.07 0.00 0.00 0.00 337.00 73.12
Component #4
8,629.32
9,223.39
594.07 109.57 0.00 0.00 0.00 484.50 127.51
Component #5
1,331.23
1,505.31
174.08 15.36 0.00 0.00 0.00 158.72 183.60
Component #6
4,022.28
4,275.99
253.71 39.71 0.00 0.00 0.00 214.00 155.93
Component #7
2,424.17
2,744.74
320.57 66.57 0.00 0.00 0.00 254.00 160.79
Administrative









Costs
0.00
413.60
413.60
0.00
0.00
0.00
0.00
413.60
0.00
PDF Block B
0.00
498.00
498.00
165.00 25.00
25.00 0.00 283.00 0.00
Totals 24,425.12
29,789.93
5,364.81
984.99
175.00
175.00
100.00
3,929.82
929.02
93
364.81


MONITORING, EVALUATION AND DISSEMINATION

55.
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. A monitoring and evaluation plan, consistent with GEF criteria, will be
prepared by the Executing Agency and, MINAE and MARENA, 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 Steering Committee wherein the
work plan and terms of reference for project staff and consultants will be discussed and
agreed. A project implementation review would be undertaken jointly by the Government
and UNEP two years after the end of the project.

56.
STAP Review. (Annex C) This project proposal was reviewed by Dr Ed Ongley,
Emeritus Scientist, National Water Research Institute, Environment Canada, an International
Waters Expert included in the STAP Roster of Experts. Comments made by Dr. Ed Ongley
have been addressed in details in Annex C. The Information System and the SAP
formulation components (Para 20 through 25) as well as paragraph 7 of the detailed

3 For this analysis, the "Business-as-Usual" scenario has been used as Baseline. Past expenditure for project
preparation is not considered baseline.
4 The Alternative Scenario is equal to the Baseline plus the Incremental Cost.
5 The total Incremental Cost includes the costs to the GEF and Co-financing.

14

---

workprogramme (Annex H) have also been altered to address specific concerns of Dr. Ed
Ongley.

57.
Dissemination Incorporated into the SAP formulation are specific work program
components (see Components 4&7) which explicitly aim to promote and disseminate the
experiences obtained through the SAP formulation process to the SJRB Stakeholders, and to
communities within the SJRB through a program of public information and education. Work
program activities encourage and facilitate technology transfer and information dissemination
through programs of public participation, stakeholder involvement, and professional and
community-based education and information dissemination. States and municipal
governmental organizations, NGOs and citizen involvement in project execution will also
contribute to the dissemination of information on specific technologies and techniques that
contribute to the sustainable environmental management and economic development of the
watershed. Finally, the publication of the SAP for the SJRB will communicate to all concerned
organizations, agencies and citizens, the comprehensive strategic approach for the management
of this critical drainage basin. Copies of this management program will be widely
disseminated within the planning project area.





15

---

LIST OF ANNEXES

Required Annexes

Annex A.
Incremental Cost

Annex B.
Logical Framework Matrix

Annex C.
STAP Roster Technical Review


Optional Annexes

Annex D.
Transboundary Diagnostic Analysis, including Root Cause Analysis

Annex E.
Public Involvement Plan Summary

Annex F.
Map of the SJRB and Surrounding Area

Annex G.
Definition of Terms

Annex
H.
Proposed Work Program and Descriptions of Specific Studies and
Demonstration Projects

---

ANNEX A
INCREMENTAL COST ANALYSIS

1.
Broad Development Goals. The goal of this project is to formulate a program of
strategic actions that will ultimately promote environmentally sustainable development within the
San Juan River Basin and its coastal zone (collectively the SJRB). This program of sustainable
development will take into account the investment programs of the governments of Costa Rica
and Nicaragua, as well as of their constituent municipalities, other local authorities and
nongovernmental organizations.

2.
Baseline Situation. The baseline situation consists of existing long-term development
programs for the SJRB as stated in country-level economic development plans, and
environmentally-related activities. In addition, the relatively uncoordinated activities being
planned or conducted by many governmental agencies and private parties within the Basin form
elements of the baseline situation. The total baseline of the project is estimated at US $ 24.43
million, according to the budget shown in Table 1.

3.
Associated financing includes the GEF/ UNDP Mesoamerican Biological Corridor
project in Costa Rica and Nicaragua. The total cost of the project amounts US $ 19.20 million of
which US $ 8.60 are DANIDA (Danish International Development Agency) and GTZ (German
Agency for Technical Cooperation) co-financing. It is estimated that US$ 0.32 million from
GEF, US $ 0.18 million from DANIDA and US $ 0.08 million from GTZ are allocated to support
the SJRB project activities. In addition, the GEF/ WB (World Bank) Nicaraguan Atlantic
Biological Corridor project has assigned about US $ 0.35 million to the SJRB project. Total
associated financing is US $ 0.93 million. Other agencies have shown interest in providing
additional financing pending the approval of this proposed Project Brief.

4.
GEF Alternative Scenario. The alternative scenario consists of the implementation of
those actions needed to introduce sustainable development into the development projects being
conducted in the SJRB. Such actions would result in sustainable global benefits embodied into
the mitigation of the transboundary environmental problems identified in Annex D. The costs of
these actions are over and above those incurred by the countries in their required environmental
impact assessments under existing environmental laws and regulations. The cost of the project
under this scenario is estimated at US $ 29.86 million. The incremental cost, by which the
alternative scenario exceeds the costs of the baseline situation, is estimated at US $ 5.43 million.
About 18 % of this cost, or US$ 0.98 million, is the estimated financial and in-kind contribution
of local and national stakeholders. In addition to the US $ 283,000 grant from the PDF Block B,
already disbursed, GEF is requested to finance US $ 3.72 million.

5.
Global Benefits. Global benefits likely to arise from the execution of this project include
decreased transboundary transport of contaminants and sediments, increased wildlife diversity,
decreased soil degradation, increased knowledge of river system behavior (especially at the
freshwater-ocean interface), improved coordination of river basin management and planning, and
increased dissemination of knowledge of the river system and its coastal zone within the basin.
These benefits are reflected in the project activities as presented in Table 2. (See also Table 3).
These benefits are:

6.
Component 1: Formulation of the SAP. The main objective of the SAP is to assist in
maintaining and recuperate valuable ecosystems of forests, wetlands and coasts, to reduce the
A-1

---

level of water pollution, to diminish the levels of vulnerability to natural hazards, and to promote
research and other forms of binational cooperation. The SAP is an enabling activity for the
sustainable use of the global resources of the San Juan River watershed and its coastal area, based
on key criteria such as natural resource integrated planning, and participation and institutional
strengthening. The baseline scenario in both countries does not include funds for the formulation
of a SAP for the integrated management of the SJRB. The alternative, sustainable development
scenario includes the time of stakeholders and public officials, studies and workshops. The total
cost of the alternative scenario is US $ 2.21 million, of which governments in-kind contribution is
estimated at US $ 312,140. GEF would be requested to finance 32%, or US $ 702,000.

7.
Component 2: SJRB Information System. Physical characteristics, pollution,
vulnerability to natural hazards, and human migration patterns were identified in the
Transboundary Diagnostic Analysis (TDA) as key input areas for an information system in the
region. The baseline for water quality and vulnerability, which includes the use of existing
facilities in the Universities and Water Management Laboratories in both countries, is estimated
in US $ 38,000. Co-financing includes a hydro-meteorological network to be implemented by the
regional institution for water resources, CRRH, which is to be financed by USAID. Of the total
amount of that project, US $ 100,000 would be allocated in the San Juan River watershed. The
monitoring system would complement the satellite information currently being collected and
analyzed by the Mesoamerican Corridor Initiative, which is estimated at US $ 63,020 for this
component.

8.
In addition, although lacking an integrated and comprehensive approach, studies
conducted in Nicaragua with the financial assistance of FINNIDA have concluded that
Biodiversity in the region is high and with significant potential for endemism. Nevertheless, the
aquatic life of the transboundary water bodies is virtually unknown. Academic institutions, and
regional and local institutions will support the collection of information on aquatic biodiversity,
including the institutions in charge of the Tortuguero Conservation Area (in Costa Rica) and the
Indio Maiz Reserve (in Nicaragua). Their support is estimated in US $ 20,000.

9.
Lastly, during project preparation, human migration was identified as an important cause
of resource depletion. No studies have been conducted to determine the extent of this problem or
to determine the solution. The incremental cost of this study is estimated at US $ 75,000. The
information to be generated from these studies would serve as indicators of the environmental
benefits of GEF investment, and would assist in prioritizing future investments in the region. The
potential benefits of having access to such monitoring and information systems for environment
and socioeconomic aspects at the border region cannot be estimated now. GEF is requested to
finance 78% of the incremental cost, or US $ 1.08 million.

10.
Component 3: Strategic Actions with Stakeholder Involvement. Some donors have
targeted their resources in strategic investments in the SJRB. Amongst them are the GTZ, with a
natural resources management project in Huetar Norte in Costa Rica and Indio Maiz in
Nicaragua; and DANIDA, with a long-term project in El Castillo, Nicaragua. Nevertheless no
investments were identified for conflict management and integrated strategic planning for global
and binational resources in the San Juan River Basin. Current and projected future demands for
hydroelectricity, tourism and other activities; and the potential benefits of designing and
providing instruments for stakeholders and decision-makers to reach informed agreements on
such activities can result in incalculable potential benefits. A series of demonstration projects for
this component will provide assessments of cost and feasibility and specific examples of
A-2

---

sustainable alternative means of production and land and water resource management. The
incremental cost of this component is estimated at US $ 401,070. The GEF is requested to
finance the 84% of the incremental cost, or US $ 337,000.

11.
Component 4: Public Participation. The participation of civil society is key to
successfully formulating and implementing the SAP. This component will provide the space for
stakeholders to identify, implement and take ownership of the project activities. It is a priority
for the project to ensure a gender balanced participation in all of its activities. The pilot projects
identified by stakeholders are community-based initiatives to address issues that are common to
the region, such as forest fires and rehabilitation of a lagoon. The project would document these
initiatives and promote exchange across the border. Conservation Areas, local governments and
NGOs currently allocate an estimated US $ 8.67 million for consulting and promoting civil
society participation in natural resources management on a regional basis. The incremental cost
of addressing global and transboundary environmental issues during the SAP preparation is
estimated at US $ 594,070 of which 25% is the cost of participation of stakeholder
representatives. GEF is requested to finance 81%, or US $ 484,500.

12.
Component 5: Local, national and bi-national level institutional arrangements. The
activities to be financed under this output include meetings and technical support costs needed to
achieve local, national and transboundary agreements on resource protection and use. This
component would support promoting technical exchanges amongst local institutions and MINAE
and MARENA staff. This component would also finance the periodic meetings of the
Consultative Committees and those of the Steering Committee, which gather key representatives
from stakeholders in the region. Strengthening dialogue on environmental issues across Central
America is a key concept of the Mesoamerican Corridor and framework of the Central American
Commission for Environment and Development (CCAD). This project would coordinate closely
with these initiatives to provide feedback to similar initiatives in the isthmus. The baseline
situation is comprised of a modest allocation of time from Foreign Affairs and Environment and
Natural Resource Ministries officials to dialogue on transboundary and global issues derived
from the resource use of the San Juan River watershed and its Coastal Area. The alternative
scenario provides funding for time and resources to focus the attention of local and national
officials on these important issues, and the support for the design of key institutional instruments,
space and information for constructive dialogue and policy making. The baseline for this
component is estimated at US $ 1.33 million, and the incremental cost at US $ 174,080, of which
9% is in-kind contribution of local governments. GEF is requested to finance 91% of the
incremental cost, or US $ 158,720.

13.
Component 6: Capacity Building and Institutional Strengthening. The activities to
be financed under this output include capacity building and transaction costs needed to promote
the formation of basin councils in critical subbasins and encourage the participation of such
councils within the municipal sustainable development councils already in place in the SJRB.
This component will also support the strengthening of the Federation of Local Border
Governments which is a priority for both countries. Various donors, including FunPaDem6/Ford
Foundation and Protierra/Inifom7, have strong presence and interesting results in promoting
dialogue and strengthening the municipalities in the region. This component would document
successful experiences and facilitate dialogue, cooperation, and extension of the concept
throughout the region. This component would also finance workshops and seminars for officials

0
6 Fundacion de Servicio Exterior para la Paz y la Democracia.
1
7 Instituto de Fomento Municipal, Nicaragua
A-3

---

appointed as members of local and binational sustainable development councils. The baseline for
this component is estimated at US $ 4.02 million, and the incremental cost at US $ 253,710, of
which 16% is in-kind contribution of local governments. GEF is requested to finance 84% of the
incremental cost, or US $ 214,000.

14.
Component 7: Education and Training in Conservation and the Sustainable Use of
Natural Resources. Although both countries have dedicated resources to national or regional
environmental education programs, an environmental education program focused on the global
and binational environmental aspects of the San Juan River Basin and its Coastal Zone has not
been financed. The National Strategy for Environmental Education in Costa Rica, targeting
Conservation Areas, and the scattered environmental education programs financed by various
donors inside the protected areas of Nicaragua, lack a coordinated transboundary approach. This
project would finance the design and implementation of environmental education programs in an
urban (Ciudad Quesada, Costa Rica) and a rural (San Carlos, Nicaragua) area. All materials and
lessons learned during the implementation of these three projects would be applicable in the
whole region. The estimated alternative scenario of the whole component is US $ 2,744,740 of
which the GEF is requested to finance the 9% or US $ 254,000.
A-4

---

Table 1. Country-level programs included in the Baseline Situation (US $ million)

Program Description
Amount
IDA (International Development
Environmental policy,
0.06
Agency)/ MARENA/ PROTIERRA
legislation and regulations
(Natural Resources Policy Reform)
project
IDA/INIFOM (Nicaraguan Institute
Rural poverty and natural
0.28
of Municipal Promotion)/
resources management project
PROTIERRA
IDB/ KFW (German Development
Lake Managua Restoration
1.70
Bank)/ NDF (Nordic Fund)
Project
IDB/ IDR (Nicaraguan Institute for
Agricultural restoration project
8.32
Rural Development)
SIAPAZ (Protected Areas Integrated Humid Tropical Forests
1.45
System for Peace)/ GTZ/ MARENA
Conservation and Sustainable
Use Project
SIAPAZ/ DANIDA/ MARENA
Humid Tropical Forests
5.06
Conservation and Sustainable
Use Project
SIAPAZ/ EU (European Union)
Humid Tropical Forests
0.16
Conservation and Sustainable
Use Project
SIAPAZ/ AECI (Spanish
Humid Tropical Forests
0.07
International Cooperation Agency)
Conservation and Sustainable
Use Project
USAID (United States Agency for
Protected Areas and Natural
0.82
International Development)/
Resources Management Project
MARENA
(MARENAP)
FINNIDA (Finnish International
Nicaragua-Finland
0.30
Development Agency)/ MARENA
Environmental Program
(PANIF)
EU/ MARENA
Agricultural Frontier Project
0.08
SDC (Swiss Agency for
Technology Transfer & Training
0.13
Development and Cooperation)/
for Natural Forest Management
CATIE (Research and Training
Project
Center for Tropical Agriculture)/
MARENA
SINAC (Costa Rican Conservation
Conservation Areas
6.00
Areas National System)
TOTAL

24.43

A-5

---

Table 2. Incremental Cost Matrix (US $ million)

Component/
Category
Amount
Domestic Benefits
Global Benefits
Other Costs
Formulation of the
Baseline
0.90
No known direct benefits

SAP
Alternative
2.21
Enabling
activity
Strengthened capacities for negotiating and reaching
agreements on shared waters; protection of marine and
freshwater fish resources

Increment 1.31


Information System
Baseline
2.36
Improved hydro-meteorological

monitoring capability, reduced
flow of contaminants, mitigation
of natural hazards

Alternative
3.76
Same as above
Improved access to information, improved knowledge
of shared biological resources, enhanced understanding
of human migrations

Increment 1.40


Strategic Actions
Baseline
4.75
No known direct benefits

with Stakeholder
Involvement
Alternative
5.15
Enabling
activity
Coordinated use of donor funds, improved conflict
resolution procedures, workable stakeholder
participation program, strengthened regional
cooperation

Increment 0.40


Public Participation
Baseline
8.62
Increased public awareness,

support for national cooperation
with NGO stakeholders and
regional partners
A-6

---

Alternative
9.22
Same as above
Better coordination between organizations, enhanced
public participation in resource management, potential
replicability

Increment 0.60


Local, National and
Baseline
1.33
Capacity building for increased

Binational Level
cooperation between institutions;
Institutional
improved knowledge of the
Arrangements
natural resource base

Alternative
1.50
Same as above
Better coordination between SJRB institutions,
improved decision-making capacity, enhanced
integration

Increment 0.18


Capacity Building
Baseline
4.02
More broadly based

and Institutional
environmental management
Strengthening
capacity, improved
communication between basin
organizations

Alternative
4.27
Same as above
Improved management of water and living resources in
the SJRB, coordinated management of environment
and development, implementation of sustainable
development philosophies

Increment 0.25



Education and
Baseline
2.42
Improved level of knowledge at

Training in
the grassroots level, better
Conservation and the
informed communities
Sustainable Use of
Natural Resources

Alternative
2.74
Same as above
Transferable curricula, improved environmental
management affecting biological, soil and water
resources in the SJRB

Increment 0.32


A-7

---

Total Components




4.46
Administrative
0.41


Costs
Project




Preparation
0.49
GEF PDF Block B

[0.28]


Governments
[0.17]


UNEP
[0.02]


OAS
[0.02]


TOTAL




INCREMENT
5.36

A-8

---

TABLE 3. BREAKDOWN OF PROJECT FINANCING
(in thousand of US dollars)




Component/
Base
Alternative
In
Co-financing GEF
Associated
Other Costs
Line8
Scenario9
cremental
Financing
Cost10
Gov. UNEP
OAS
CRRH

Component #1
900.00
2,214.14
1,314.14 312.14 150.00
150.00 0.00 702.00 0.00
Component #2
2,363.68
3,759.25
1,395.57 212.57 0.00 0.00 100.00
1,083.00 228.07
Component #3
4,754.44
5,155.51
401.07 64.07 0.00 0.00 0.00 337.00 73.12
Component #4
8,629.32
9,223.39
594.07 109.57 0.00 0.00 0.00 484.50 127.51
Component #5
1,331.23
1,505.31
174.08 15.36 0.00 0.00 0.00 158.72 183.60
Component #6
4,022.28
4,275.99
253.71 39.71 0.00 0.00 0.00 214.00 155.93
Component #7
2,424.17
2,744.74
320.57 66.57 0.00 0.00 0.00 254.00 160.79
Administrative









Costs
0.00
413.60
413.60
0.00
0.00
0.00
0.00
413.60
0.00
PDF Block B
0.00
498.00
498.00
165.00 25.00
25.00 0.00 283.00 0.00
Totals
24,425.12 29,789.93 5,364.81 984.99 175.00
175.00
100.00
3,929.82 929.02




2 8
For this analysis, the "Business-as-Usual" scenario has been used as Baseline. Past expenditure for project preparation is not considered baseline.
3 9
The Alternative Scenario is equal to the Baseline plus the Incremental Cost.
4 10
The total Incremental Cost includes the costs to the GEF and Co-financing.
A-9

---

ANNEX B

LOGICAL FRAMEWORK FOR DEVELOPMENT OF A STRATEGIC ACTION PROGRAMME (SAP) FOR THE INTEGRATED MANAGEMENT OF THE SAN JUAN
RIVER BASIN AND ITS COASTAL ZONE (SJRB)






Intervention Logic
Indicators of Performance
Means of Verification
Risks and Assumptions






Development Objective: Human populations in the SJRB have improved San Juan River Basin Project Governments of Costa Rica & Nicaragua agree
Water resources of the San life quality as measured by health and income (SJRBP) documents that show that on the mechanisms and instruments of
Juan River Basin and its parameters.
mechanisms and instruments for planning, implementation, and monitoring the
coastal zone are available
integrated planning and
SJRBP.
to satisfy present and Reduced biotic, chemical, and physical implementation are in place.

future demands as agreed contamination of Lake Nicaragua, the San Juan
to by those who use or

Other stakeholders agree on the mechanisms
Reports of the SJRBP monitoring
have an influence over River, and its coastal zone.
and instruments of planning, implementation,
these resources.

and evaluation system.
and monitoring the SJRBP.
Fewer conflicts over the use of services provided

by ecosystems in the San Juan River basin Reports of other local, national,
Programs and financial strategies of the SJRBP
including those of Lake Nicaragua and the coastal and international investigations.
are in place.
zone.






Project Purpose: To Public participation and consultation methods Governments endorsement of the Governments of Costa Rica and Nicaragua
formulate a Strategic were used in the development of the SAP.
SAP Program Document.
agree on and approve the SAP.
Action Programme (SAP)


for the Integrated
Formulation of the SAP has been completed.

Stakeholders are willing to actively and
Management and


responsibly participate in and collaborate with
Sustainable Development SAP priorities have been set and its
the SJRBP.
of the San Juan River institutional framework has been prepared.

Basin and its coastal zone


(SJRB).





Result/ Component 1: Proposals to address root causes are available.
Governments endorsement of the Governments of Costa Rica and Nicaragua
Formulation of the SAP.

SAP Program Document.
agree on the results of the studies.

SAP priorities have been set and its

institutional framework has been prepared.
Stakeholders actively and responsibly

participate in the development of the SAP

B-1

---

Intervention Logic
Indicators of Performance
Means of Verification
Risks and Assumptions


Formulation of the SAP has been completed.
participate in the development of the SAP.










Result/ Component 2: Information system workshops have been held.
Information system workshop Stakeholders are willing to share information
SJRB Information System.
reports.
and will collaborate in the design and



maintenance of the information system.

Studies have been completed.
Documents (including maps)


reporting on the SJRBP studies.
Information needs are clearly identified.
Surveys regarding information system needs

have been completed.
Reports of SJRBP surveys and Stakeholders will continue to allocate funds and

databases.
other resources to support the information
Databases have been designed.
system.


Information is balanced and accurate.





Result/ Component 3: Social and economic investigations have been Reports of SJRBP studies.
Stakeholders provide accurate information on
Strategic Actions with conducted and the information is used in the
their demands.
Stakeholder Involvement.
integrated development planning for the Progress reports on


basin.
demonstration projects.
The governments of Costa Rica and Nicaragua


will accept the use of Strategic Planning and
Conflict management needs have been
Management (SPM).
identified and projects are designed.


Strategic planning and management
The policies and priorities of the governments
demonstration projects are completed.
of Costa Rica and Nicaragua with regard to
SPM will be positive and sustained.





Result/ Component 4: S
A clear and balanced identification of stakeholders is
TAKEHOLDERS ACTIVELY PARTICIPATED IN THE PROGRAM WORKSHOP REPORTS.
Public Participation.
possible.
DEVELOPMENT AND IMPLEMENTATION OF SJRBP

ACTIVITIES.
Progress reports of the SAP
Financial resources are made available for

demonstration projects.
stakeholder participation in the SJRBP
Workshops were held to develop SJRBP
workshops.
activities and policies.
SAP PROGRAM DOCUMENT.



There is an interest on behalf of civil society and
SAP Demonstration Projects are completed.
th t k h ld
t iti l ti i t

B-2

---

Intervention Logic
Indicators of Performance
Means of Verification
Risks and Assumptions



other stakeholders to positively participate on a
long-term basis with the SJRBP.

















Result/ Component 5: Governments of Costa Rica and Nicaragua MINAE and MARENA budgets.
Local governments, technical personnel and
Local, national and bi- have allocated funds for the SJRBP National
scientists are interested in developing and
national level institutional Technical Units.
Reports of meetings.
sustaining institutional arrangements.
arrangements




National and BI-national technical level BI-national Co-operation
Governments of Costa Rica and Nicaragua are
workshops and seminars have been held agreements between universities
with participation of personnel of MINAE and research institutes.
willing to work with the institutional
and MARENA.

arrangement developed by the stakeholders.

national Co-operation

Joint Research Studies have been identified instruments between MINAE Governmental institutions of Costa Rica and
and designed.
and MARENA.
Nicaragua are willing to work together to develop

institutional arrangements to support SAP
implementation.





Result/ Component 6: Basin Councils and Associations for work in Proposal to strengthen
Local governments, technical personnel and
Capacity Building and the basin are formed.
institutions.
representatives of civil society are interested in
Institutional


building management capacities.
Strengthening.
Capacity building and institutional
Progress reports on


strengthening demonstration projects are demonstration projects.
completed.
Governments of Costa Rica and Nicaragua are

willing to work with local governments and
local stakeholders to strengthen local
institutional capacities.





Result/ Component 7: Environmental Education workshops have been
Environmental education
A clear identification of stakeholders (beneficiaries
Education and Training in held.
workshop reports.
and providers) is possible.
the Conservation and


Sustainable Use of Natural Review studies of existing environmental
Progress reports of SJRBP A clear understanding of the levels of intervention
Resources.
education programmes and materials have been
demonstration projects.
exists.

completed.


B-3

---

Intervention Logic
Indicators of Performance
Means of Verification
Risks and Assumptions



SAP Program Document.
Surveys regarding environmental education
needs have been designed and conducted.
SJRBP environmental education

survey reports.
Successful experiences in the use of
sustainable technologies have been identified
and innovative technologies tested.

SJRBP environmental education

demonstration projects are underway.



B-4

---

Activities
Assumptions



Project Purpose: To formulate a Strategic Action Programme (SAP) for the Integrated Management and Sustainable MINAE and MARENA provide counterpart
Development of the San Juan River Basin and its Coastal Zone.
contributions in terms of finances and staff.

01
The OAS/USDE provides technical co-ordination and follow-up for the administration of funds,
supervision of personal, and preparation of the activity reports submitted to UNEP, GEF and to the
Governments of Costa Rica and Nicaragua.
02
Provide technical co-ordination to the technical units (Costa Rica and Nicaragua) to a) prepare and
follow-up on the work-plan, b) administer funds assigned to the SJRBP by international agencies, and
c) supervise the activities of the technical unit.
03
Prepare the SAP document.



Result/ Component 1: Formulation of the SAP.
Stakeholders are willing to participate and

authorities are receptive to participatory
1.1
Prepare, organise and present workshops.
findings.
1.2
Promote, prepare and organise bi-national meetings which includes the participation of the government
authorities of Costa Rica and Nicaragua.
1.3
Collect data, undertake studies and surveys, etc.
1.4
Complete studies needed to formulate the SAP.



Result/ Component 2: SJRB Information System.
Communities are receptive to the SJRBP and are

willing to collaborate with the technical staff of
2.1
Identify specific critical areas and level of degradation of the water resources based upon agreed use the project.
plans.

2.2
Design and undertake studies of the basin ecosystems (natural history, structure and function, Stakeholders are willing to provide information
distribution, uses, etc.
2.3
and data.
Design basin-wide sedimentation and contamination studies.

2.4
Design a basin-level Monitoring System covering both natural history and socio-economic concerns.
2.5
Design and perform studies of human migration in the basin.
Participants of studies allocate the financial
2.6
Design mechanisms to monitor natural hazard vulnerability.
resources to execute the project.
2.7
Analyse progress and results of selected demonstration projects related to the design of an
information system for the SJRB and its coastal zone.
Participants of demonstration projects
undertake their assigned activities.








B-5

---

Activities
Assumptions





Result/ Component 3: Strategic Actions with Stakeholder Involvement.
Financial resources are allocated to execute the

demonstration projects.
3.1
Identify geographic and thematic areas for intervention.

3.2
Identify present and future demands for the ecosystem services available in the basin and develop and Demonstration projects are well managed and
test mechanisms to satisfy these demands.
completed.
3.3
Design a programme for "environmental" conflict resolution at local (municipal) levels.
3.4
Analyse the progress and results of selected projects for specific areas, such as the Lake Nicaragua
basin, San Juan River basin, coastal zone, sub-basins and critical areas.
3.5
Design training programs to improve strategic planning and management and to enhance awareness of
its value for long-term, conflict free development of natural resources.



Result/ Component 4: Public Participation.
Stakeholders participate responsibly and

authorities are receptive to participatory
4.1
Identify stakeholders.
decisions.
4.2
Motivate stakeholders to participate in the SJRBP and in other programmes in the region.

4.3
Prepare, organise and present workshops on public participation.
4.4
Participants in the demonstration projects
Analyse the progress and results of the participatory mechanisms and methods used in selected
demonstration projects.
allocate financial resources for project
4.5
Promote project partnerships (consortia, associations , etc.).
execution.
4.6
Prepare the Public Participation Program document.


Participants in the demonstration projects undertake
the activities assigned to them under the project.



Result/ Component 5: Local, national and bi-national level institutional arrangements.
Local governments, technical personnel and

scientist are interested in developing and
5.1
Promote meetings, workshops and seminars between technical and administrative personnel of sustaining institutional arrangements.
MINAE and MARENA, research institutions, educational institutions, etc.

5.2
Promote joint research studies between universities and other research institutions.
Common elements exist in the resource use and
5.3
Collect, review and analyse information on current institutional arrangements and their roles in the conservation policies of both countries.
management of the San Juan River Basin and its allied coastal zone.

5.4
Design local, national and bi-national institutional arrangements including inter-institutional co-
ordination based on common elements of the resource use and conservation policies in both countries.








B-6

---

Activities
Assumptions









Result/ Component 6: Capacity building and institutional strengthening.

Participants of demonstration projects allocate
6.1
Within the basin, promote the creation and strengthening of basin-based Sustainable Development the financial resources to execute the project.
Councils and Associations of Councils.

6.2
Analyse the progress and results of selected demonstration projects on capacity building and Participants of demonstration projects
institutional strengthening.
undertake their assigned activities under the
6.3
Formulate a program for institutional strengthening including these components: a) programme for SAP.
capacity building, b) programme for infrastructure, c) programme to equip the institutions, and d)
programme to increase revenues for these institutions.



Result/ Component 7: Education and Training for the Conservation and Sustainable Use of Natural Resources.
Stakeholders are willing to participate and

authorities are receptive to participatory
7.1
Identify stakeholders (beneficiaries and providers of the programme).
decisions.
7.2
Review of existing programmes and materials .

7.3
Prepare, organise and present workshop, seminar and technical meeting.
Participants of demonstration projects allocate
7.4
Survey of beneficiaries (level of education, cultural behaviours, etc.).
7.5
the financial resources to execute the project.
Analyse the progress and results of selected demonstration projects on environmental education.
7.6
Formulate a Programme for Environmental Education and Training for the Conservation and Participants of demonstration projects undertake
Sustainable Use of Natural Resources.
their assigned activities under the project.




B-7

---

ANNEX C

TECHNICAL REVIEW

"Formulation of a Strategic Action for the Integrated Management
of Water Resources and the Sustainable Development of the
San Juan River Basin and its Coastal Zone"

Review carried out by:

Edwin D. Ongley PhD.
Emeritus Scientist, National Water Research Institute
Environment Canada

February 25, 2000.


General Comments and Overview

1. The proposal is well organized, seems well reasoned, and provides a logical basis for the steps that
are proposed. The proposal tends to be highly narrative and offers a normative rather than
quantitative analysis and suffers from a lack of data and detail on a variety of issues. This, however,
probably reflects the absence of data rather than the omission of pertinent data in which case the
proposal should not be faulted for lack of detailed analysis. The TDA and associated root cause
assessment is well organized and, while one can find fault in some details, provides compelling
reasons for the main components recommended in the proposal. There are some problems with
certain technical issues that are outlined below and which can be dealt with during the
implementation phase.

2. The most critical issues that are currently deficient in the proposal are:

2a. Although the development of the SAP (Component #1) is a major activity and second largest
budget item, there are no details provided about how this will be carried out. As noted below (2b),
there are also no details on the linkage between this component and the other components of the
proposed workplan.

2b. The proposal contains two different types of activities -- one is the development of the SAP, and
the second is a number of pilot/demonstration projects and activities. Although the Project Brief
states (Paragraph 13) that the SAP formulation includes all the other project components, the linkages
are not clear, especially as much of the information required from the other components will not be
available until near the close of the project. In particular:

(i) What is the linkage between the development of the SAP and the data that will gathered under the
"information system" component which, presumably, will not be complete until the SAP has been
formulated? One might well ask why the information system component should not wait until the
SAP is completed and the data needs are more critically appraised as part of the SAP
development process;

(ii) What is the explanation for the choice of actions contained within project components relative to
the development of the SAP?

C-1

---

2c. Of the many problems identified in the TDA and summarized in the Project Brief and Workplan,
there is no indication of how the particular activities that are proposed, were selected and other
obviously important activities (noted in the TDA and/or derived from the Root Cause analysis) were
excluded (see paragraphs 8, 9 & 10 for example). One cannot argue with the 5+3 general categories
of problems, however the rationale for particular choices within many of these categories is not clear.
Paragraph 40 of the Project Brief is not instructive in this regard. In the absence of a clear selection
strategy, one has the impression that the proposal contains something for everyone as a way of
accommodating the large number of stakeholder concerns. This raises certain concerns with respect to
the distribution of budget and whether the amounts allocated are sufficient to deal credibly with each
issue.

2d. A critical issue in the Root Cause analysis appears to be policy and institutional failure. There
seems to be little assurance, however, that the two governments intend to deal with this beyond some
specific local/regional initiatives that are contemplated in the proposal. This goes to the heart of
sustainability concerns and it is the experience of this reviewer that unless this is addressed at a senior
level, many of the initiatives contemplated in the proposal will die at the end of the project. Possibly
this problem is addressed in the covering letters of the two Governments. Certainly it is not dealt with
in Components 5 or 6 of the Workplan.

2e. Given that one focus is on the coastal component of the project area, there is very little analysis or
comment on the problems that are very specific to this area (e.g. Workplan Item 2e). It is also
difficult to see the justification for Workplan item 7c when the TDA mainly comments on a fisheries
problem. There is nothing else in the TDA or proposal that would seem to justify 7c.

2f. The priority that is given to the development of an information system should be re-expressed to
indicate, from the outset, that the main expenditures are for the collection of critical data and
information, and not on the technical development of an information system. It is troubling that the
"Rational and Objectives" of the Project Brief refers (paragraph 13) to the "basin-wide information
system". This raises several immediate problems:

2f.1 The reader infers from the wording of the text that technical development is a major thrust.
There are many Environmental Information Systems (EIS) that are easily adaptable for the
purposes described, and there is no need to "build" a new system. There is a need for technical
adaptation of such systems. Certain technical aspects of this initiative are commented upon
below.

2f.2 It is not clear at all how the seven components of the information system initiative are
compatible within a single basin-wide system. This can likely be clarified during project
inception however the problem needs to clearly flagged at the review stage.

2f.3 There is no indication of how such a system will be accessible to stakeholders. There is no
recognition of the technical issues such as data exchange and communications, distributed
systems, etc. that will have to be resolved to make such a system(s) work well.

2f.4 The budget for the SRJB Information System (Table 1, Annex H) contains no amount for
technical modification, data exchange/transfer/communication, software/hardware acquisition,
capacity building in systems development and support, etc. that will be essential if such a system
is to become useful. It is noted (Workplan, Table 1) that it is proposed to hold ten GIS
workshops, however, this seems both excessive and misdirected in terms of modern EIS systems

C-2

---

configurations and applications.

2f.5 Given the comments above (2f.2), it is not clear how the system will be developed. Clearly, a
GIS-based system is not useful for several of the components, and indeed, is not especially useful
at all if the system will be required to form the basis of a DSS (decision-support) system for, for
example, the analysis of policy options for basin development.

It should be noted that "information systems" have been failures in many development assistance
projects with which this reviewer is familiar because of unreasonable expectations, are
science/data/technology-driven and not purpose-driven, use of unsustainable EIS (environmental
information system) technologies, and an unreasonable focus on GIS as the principal technology for
the system.

2g. Developing countries are typically characterized as "data-poor" environments; no amount of data
collection will resolve this to the level of being able to develop western-style data-driven
management plans. Therefore, the proposal needs to acknowledge this problem and address how the
SAP will be developed and, by extension, how future management decisions will be made, in the
absence of comprehensive databases. There a number of ways of dealing with this, and depending on
the issue, ranging from best management practices to use of domain knowledge-base decision-support
systems. This is also critical in the development of the SAP so that the stated objectives are realistic,
achievable, and technically defensible.


Scientific and Technical Issues

3. The principal scientific part of the proposal deals with the development of the information system.
Insofar as the system itself is concerned, there are many (including public domain) EIS (Environmental
Information Systems) systems available. One infers (as noted above) that the technical construction of
such a system is one focus of the proposal (using GIS). The proposal should make it clear that technical
construction (in contrast to implementation) is not an issue. The criteria for such a system should be low
cost, short learning curve, non-proprietary and open-architecture, object-oriented, PC platform, and using
public domain software. GIS should be considered only as one tool for such a system and, generally,
should not be considered as the principal tool, for a variety of technical and practical reasons. In fact, and
given the comments in paragraph 4, there is probably a need for several different types of information
systems.

4. Of the seven items noted in the Workplan as comprising the SJRB Information System, it is unclear,
technically, how a number of these can be easily incorporated into a single information system.

5. The proposal for water and sediment monitoring requires technical clarification during the inception
of the GEF project. There is not enough information in the current proposal to justify, for example, the
number of monitoring stations that are proposed, which seems excessive for practical management
purposes and decision-making. Scientific and management needs for information are quite different and
need to be recognized at the inception stage.

6. Also in the context of monitoring, there is no information on methodologies to be used, quality
assurance protocols that will be followed, or of the technical and institutional capabilities of the
organizations to be involved in this component. There is no recognition of alternative and more cost-
effective ways of collecting information on, for example, erosion and sedimentation. This is critical in
view of the high variability in time and space of erosion and sedimentation that cannot be captured in the

C-3

---

three year period assigned to this activity using standard monitoring protocols. For the purpose of the
SAP and, indeed, for longer programs of monitoring, there are a variety of alternative and more cost-
effective approaches than the type of monitoring (especially for sediments and water quality) that is
referred to in the proposal. Again, these can be assessed during the inception phase.

7. The absence of management information for Lake Nicaragua seems critical, yet the proponents do not
make clear how this will be remedied except by a large (probably excessive) number of sampling stations
and a line item in the budget. Important issues such as carrying capacity of the lake, determination of
internal loadings (especially of phosphorus), and development of point and non-point source loadings
scenarios would seem to be essential but are not acknowledged in the proposal nor would such aspects be
included in the activities identified in the line items in the Workplan budget.


Other Issues

8. An apparent omission in the context of public health and environment that would seem to be very
important in the context of this proposal is the problem of supplying data on drinking water quality to
small communities. The monitoring component does not deal with this, yet it is well known that
developing countries generally can not operate effective public health monitoring programs from
centralized agencies. There are a number of interesting initiatives in community- based monitoring that
might be considered.

9. Given the central importance within the TDA of land and environmental degradation from
agricultural practices (and as derived from the Root Cause analysis), the omission of a demonstration
educational component that focuses on agricultural best practices is most curious.

10. In view of the statements in the TDA, the absence of a component that incorporates plans for
groundwater protection is notable.

11. Certain actions such as promoting legal and economic reforms, micro-lending and other similar
actions that will lead to improved institutional performance, to economic gains with the basin, and to
long-term sustainability of the project may not be possible within this project, but should be
acknowledged so that the reader is assured that such activities have been purposely omitted.

12. Sustainability of the program is difficult to define a priori. Factors that will ensure sustainability will
have to be developed over the life of this GEF project. In particular, steps will be required to safeguard
against continued policy and institutional failure as noted above.

13. The proposal does not identify global benefits. The regional benefits of such a project are, however,
quite clear and there can be no doubt of the need for such a project in Central America. Global benefits,
in addition to environmental considerations, also include peace and security issues and alleviation of
poverty. I see no drawbacks to the proposal.

14.
A benefit that is linked to replicability that has not been considered is that, apart from benefits
within the San Juan basin, there seems to be no mechanism for transferring the experience gained in
this project to other parts of Latin America which have similar problems. The GEF should consider
some amount, incremental the requested budget, to use this project as a hemispheric demonstration
project in that it contains most (but not all!) of the rural development issues and associated
environmental impacts that are experienced in large parts of Latin America.

C-4

---

15. The project is intimately linked to other core activities of the GEF, especially biodiversity. These
linkages are quite explicit and are re-enforced through many of the co-financing mechanisms.

16. The proposal has taken great advantage of the many local and ODA initiatives in the San Juan basin
area.

17. Stakeholder involvement in the preparation of the proposal seems to have been very substantial. One
downside to this will be the management of expectations of stakeholders once the program is underway.

18. An aspect that is not included in the proposal is a communication component so that the public is kept
informed of the program as it unfolds.

19. The proposal asserts that appropriate performance indicators are built into the plan although no details
are provided.


C-5

---

RESPONSE TO THE STAP REVIEWER'S COMMENTS.

This review is fairly composed and reflects some of the issues facing each GEF International Waters
Project that seeks to prepare and present a Strategic Action Program (SAP). Foremost amongst these
issues is the issue of balance: the extent to which the program include practical, "hands-on"-type
demonstration projects versus the extent to which the program should seek to identify and refine strategic
issues. As Dr. Ongley points out, this results in a project comprised of two different types of activities.

The first of these activities is the preparation of the SAP, which is not only the ultimate outcome of this
project, but the document that will subsequently guide implementation of a watershed management
program. While the need for, and emphasis of, the SAP is to a large extent determined by the research
that was undertaken during the program development phase of the project (the PDF-B activities), the
content and final thrust of the SAP can only be determined as the end result of this phase of the project.
That is to say, the outcome of the SAP cannot be predetermined at this time. That said, however, the
program development activities did highlight certain areas where strategic actions can be presupposed and
in response to which certain types of actions can be anticipated. For this reason, demonstration projects,
the second type of activity that is designed to explore the feasibility and costs of these anticipated actions,
have been included in the SAP formulation project. Previous experience in this area suggests that these
projects can provide adequate information for use in formulating the SAP even if their full value is only
realized subsequent to the completion of the SAP document.

The following comments address specific points raised by Dr. Ongley.

General Comments and Overview

2a.
Component 1, Formulation of the SAP is the activity which articulates all the other components.
The two Technical Units, located in MINAE and MARENA, under the technical coordination of the two
technical coordinators contracted by the SG/OAS, the direction of the two national directors, and the
supervision of the GS/OAS and UNEP, will be responsible for assembling the results of the activities to
be carried out under components 2 through 7, and prepare a strategic action program (SAP) to implement
specific management measures within the San Juan River Basin following the completion of this project.
Dr. Ongley's concern has been addressed specifically in paragraphs 21 in the text of the Project Brief.

2b.(i) The linkage between the formulation of the SAP (Component 1) and the information to be
gathered under Component 2 is created in two ways; namely, (1) the collection (and sharing between
basin countries) of information necessary to quantify, assess, and address priority transboundary problems
and issues of concern, and (2) GEF programming requirements that limit GEF participation in operating
monitoring systems. In respect to the former, the PDF-B activities identified specific and serious gaps in
the availability of information (comprised both scientific data and institutional capacity including human
capacity to collect, analyze and interpret such data) necessary to formulate a SAP. Acquisition of these
data is vital to the successful preparation of an effective SAP. Creation of the institutional and human
capacities to obtain and use these data, as Dr. Ongley has noted, is critical to the long-term success of the
GEF-funded program. However, equally important is the fact that the GEF intends to be catalytic,
ultimately weaning international funding from problems best addressed at the regional level. Thus, to
satisfy the former need, the GEF can support the creation and initiation of a data gathering system, it
cannot support the ongoing operation of such a system beyond the point necessary to provide the
necessary data for SAP formulation. In this regard, it is perfectly proper for the initiation of such a data
or information system to parallel the SAP formulation to the extent that it provides knowledge necessary
to formulate the SAP; thereafter, the ongoing operation of this system can legitimately be a
recommendation within the SAP. Paragraph 23 of the project Brief has been altered accordingly.

C-6

---

2b.(ii) The choice of actions is designed to provide the necessary information for SAP formulation and
to complement existing information assembled and analyzed during the PDF-B phase. For this reason,
because of the uneven treatment of information gathered and analyzed during the PDF-B phase, some
suggestion of uneven treatment during the SAP formulation program might be anticipated.

2c.
As explained in section 2 of the TDA, the perceived present and emerging problems were
grouped into 8 categories. These 8 categories, therefore, attempt to simplify a very complex causal chain
by which various physical and biotic elements, institutional and policy issues, and social and economic
factors interact with each other. As a result of the analysis, it was observed that the first five categories
can explain the main perceived problems and their root causes. Thus the reason to present first the 8
categories is to preserve, during the analysis, the perception that stakeholders who participated in the PDF
have of the environmental issues in the SJRB. Section 2 of the TDA provides additional explanation of
how the categories were defined and later on selected.

The inputs of the organizations and individuals referred to in paragraph 52 were evaluated by the PDF-B
project team to create a short list of proposals that were consistent with GEF criteria. This short-list was
further refined after reviewing proposals relative to the informational needs identified during the PDF-B
program. The remaining proposals were then reviewed to eliminate duplications of effort, and
synthesized into a program of work that addressed informational needs identified in the PDF-B project
reports, taking into account the abilities of proposed project participants to adequately meet budgetary,
personnel and institutional commitments. In the view of the project team, based upon local conditions
and specific knowledge of the proposed project participants, the budget and work program reflects an
achievable and balanced approach to providing information for the formulation of an SAP for the San
Juan River Basin. Issues apparently neglected during this process reflect issues that are of purely local or
country-level concern, issues that are better addressed as part of other environmental management
programs, or issues that can best be addressed in subsequent interventions that will follow publication of
the SAP.

Paragraph 7 of the project brief has been altered in an attempt to address Dr Ongley's concern.

2d.
Dr. Ongley sagely identifies a critical issue facing the San Juan River Basin, namely the issue of
conflict of access and use of resources in the basin. It is the experience of the PDF-B project team that
local level initiatives can form a model upon which country level initiatives can be built over time hence
the adoption of a "bottom-up" approach in many of the project activities. The risk that these local level
initiatives are not adopted at the country level is the principal risk facing this project, and has been
identified as such in the risks and sustainability discussion as well as in the Logical Framework Annex B.

2e.
At the time the SAP formulation project was being prepared, two issues relating to the coastal
zone became apparent; namely, (1) that there was a paucity of information on the coastal zone, with the
available knowledge being primarily on coastal marine fisheries, and (2) that at least some of the known
impacts were the function of human activities well upstream of the coastal zone within the San Juan River
Basin that impacted the fishery. Chief amongst these latter was the issue of sedimentation that not only
diminished the usability of river but also degraded coastal habitat and was likely to contribute to the
reported fisheries problems. In this instance, resolving the coastal zone problems is best achieved by
addressing sediment losses in the upstream watershed.

2f.1
The basin countries have operating geographic information systems (GIS) that currently provide
subwatershed-level topographic information to decision-makers at the local government level. These
systems have the capacity to facilitate the dissemination of additional knowledge concerning the San Juan

C-7

---

River and its resources, and to service a user community that transcends national boundaries. The
objective of this Component is to build on existing inadequate infrastructure, and to encourage technical
cooperation at the national level, by contributing and disseminating information among stakeholders.
Transboundary cooperation will be enhanced by shared data acquisition and exchange through linkage of
existing national activities. In accord with GEF program requirements, it is intended that this system
address informational deficiencies identified in the TDA and form the nucleus for a more comprehensive
system of exchanging information between agencies and organizations in the basin. As it was never the
intent to "build" a new information system, paragraph 23 of the Project Brief has been altered
accordingly.

2f.2
Given that the nature of the information varies in scale from site specific data on, inter alia, water
flows and coastal sediment discharges, to regional environmental hazard risk assessments and sub-
regional management of environmental protected areas, incorporating all of these elements into a single
emphasis on information may appear ambitious. As noted by Dr. Ongley, a critical pre-requisite for
determining priority remedial actions and evaluating the effectiveness of interventions is an adequate data
and information system. It should be noted that the information needs have been identified during the
PDF-B phase. Likewise, it should be noted that all of the seven elements of this Component have a
geographic context that lends itself to being incorporated into an information system as a discrete
information layer. Beyond providing a context for the acquisition of specific information needed in
formulating the SAP, the future elaboration of an information system is to be determined as part of the
SAP process.

2f.3
Because the proposed system of exchanging technical information between basin countries is
based upon established systems that are mutually compatible, technical issues are not anticipated to result
in problems during the SAP formulation period. It is anticipated that the future development of this
system to include additional user groups will occur during implementation of the SAP. Nevertheless, the
total number of workshops has been reduced and funds re-allocated to strengthen the infrastructure per se.

2f.4
As noted above, the proposed information system is based upon existing infrastructure. The
potential for local units of government and other groups of stakeholders to access data and information
through a network currently exists. The focus of the proposed workshops will be to enhance the abilities
of these and other user groups to access and share information on a watershed basis. Part of this ability is
a function of demonstrating to local officials and other users the ability of a GIS-based system to provide
relevant information in a timely fashion; hence, the workshop approach. Annex H with the detailed
workprogramme has been altered accordingly. (See activity h) in component 2 ­ figure 1 and table 1)

2f.5
While not all information can be presented graphically or located geographically so that it can be
mapped within the context of a GIS system, the ability of such a system to contain tags or linkages to
other types of data, including numeric data and/or textual materials (meta-data) is well known. GIS-based
systems, such as the U.S. Environmental Protection Agency's BASINS system, are increasingly being
used as points of entry to decision support programs. For this reason, the GIS-based approach was
determined to be a reasonable point of departure for developing a binational, watershed-based view of the
San Juan River system and its resources. Not only does the GIS format provide a flexible tool for
capturing and sharing information, but it also has an element of familiarity to agency-based users in the
San Juan River Basin that makes it an acceptable mechanism to encourage basin-scale river management.

2g.
The Transboundary Diagnostic Analysis (TDA) recognizes that although a considerable amount
of information and data are currently available in both countries, this is a little "patchy" and of uneven
quality. The land information system in place within Costa Rica and Nicaragua is an efficient and

C-8

---

effective management tool that is currently being used in decision-making at various levels. For example,
in Nicaragua, GIS-based maps and related land use information has been provided in atlas form to local
governments and international agencies working in the country. The proposed actions to be undertaken
as part of the SAP formulation project will add to this current capability and seeks to enhance the capacity
of the users to make better use of this system. By building real-time data acquisition capabilities into this
existing technology, as can be achieved through the addition of hydrometeorological data layers, an
existing system can become more effective in basin management. This is not an attempt to "reinvent the
wheel" but rather a considered means of enhancing existing capacities and capabilities within the river
basin context.

Scientific and Technical Issues

3.
See the above response to comments 2f. 1 to 5. The ultimate vision of the basin information
system remains to be articulated as a consequence of the SAP. The proposed SAP formulation project is
designed to enhance existing capacities and capabilities within the river basin context, as noted above. It
is fully intended that this system mature into a network as a result of implementing what is presently a
conceptual strategy that needs be fleshed out during the process of SAP formulation.

4.
See response to comment 2b.

5&6. In the context of monitoring, the activities to be conducted during the period of SAP formulation
are directed to addressing specific data needs identified in the TDA. Each of the proposed activities
included in the SAP formulation project proposal are individually documented in more detail separate
from the GEF project document and proposed work program, and were determined by the project team to
be technically and financial feasible activities. This assessment was made not only based upon the
immediate needs of a SAP formulation project but also upon the ability of the activities to contribute to
the long-term management of the basin. Therefore, one consequence will be the placement within the San
Juan River Basin of a network of data collection stations is that this network can form the nucleus of a
long-term data acquisition system to be operated by the basin countries. One feature of such a system is
its ability to accommodate changes in agency mission and societal needs by being flexible in terms of
data collected and decisions supported over time.

The limited time frame within which the SAP for the San Juan River Basin is an external constraint
imposed by the funding mechanism. Therefore, while a longer-term approach to environmental
assessment is often desirable, shorter-term data acquisition and assessment programs are generally the
norm. Operation of such programs over at least a three-year period is common practice worldwide and
rests upon the theory that a three-year data collection period is likely to encompass at least one "normal"
year. Given that the data to be acquired are likely to form the basis for future management actions
identified in the SAP, it is essential that "real world" data form a part of the planning process. These data
can be supplemented using other techniques, as alluded to by Dr. Ongley, but use of indirect measurement
and assessment techniques alone would be inappropriate, especially in light of the extreme variability that
is characteristic of inter-tropical hydrologic systems.

To take into account Dr Ongley's remarks the detailed work programme presented in Annex H of the
project Brief has been altered (see para 7 (a)). See also response 2e. above.

7.
With regard to the specific situation of Lake Nicaragua, data collection and analysis are provided
for in Component 2 and elaborated in the work program to include the acquisition of limnological as well
as hydrographical and hydrological data that will form the basis for assessing contaminant loading
regimes, etc...

C-9

---

Other Issues (Paragraphs 8 to 19)

Many of the minor issues mentioned by Dr. Ongley have been addressed elsewhere in the response.

Issues such as environmental and public health, agricultural best management practices, and fiscal
measures impacting environmental management, while relevant to the strategies to be developed during
the course of this program, are areas where the country governments and other international and bilateral
programs have specific expertise, or areas where adequate data on potential practices exist, or areas that
are outside of the scope of GEF programming. For these reasons, while the project team acknowledges
the veracity of Dr. Ongley's comments, specific inclusion of some elements of import to the sustainable
management of the resources of the San Juan River Basin are contained within co-financed programs and
programs being conducted with associated financing as set forth on the project cover sheet. These
linkages are also alluded to, where relevant, in the project descriptions.

The assertion of Dr. Ongley that agricultural best practices have been omitted appears to be an oversight.
For example, in component 3, three demonstration projects are included in that area (projects (b), (c) and
(d)). Under component 4, project (c) also addresses that concern.

Groundwater contamination has not been identified as a major problem during the Diagnostic Study or
the PDF, and is not given a major relevance in the TDA.


C-10

---

SUPPLEMENTARY REVIEW

"Formulation of a Strategic Action for the Integrated Management
of Water Resources and the Sustainable Development of the
San Juan River Basin and its Coastal Zone"


Supplementary Review
March 07, 2000.



I have reviewed the changes made in the project document, project workplan and related budget, and
other relevant annexes, that respond to my technical review of this project. I am able to state that my
main concerns have been addressed either by changes in the documents, or have been addressed in the
"RESPONSE TO THE STAP REVIEWER'S COMMENTS" of Annex C. I should note that many of my
concerns were not based upon a faulty project document, but rather reflect the inevitable page limitations
of the document and Annexes which places limitations on the amount of history and explanation that can
be brought to the reviewer's attention.

From a technical perspective I believe this project is ready for submission to the GEF.




Edwin D. Ongley Ph.D.
Emeritus Scientist
Environment Canada.






C-11

---

C-12

---