PROJECT BRIEF
1. IDENTIFIERS

PROJECT NUMBER:
PROJECT NAME: Regional (Angola, Botswana, Namibia):
Environmental Protection and Sustainable
Management of the Okavango River Basin.
PROJECT DURATION: 3 years
IMPLEMENTING AGENCY: UNDP
EXECUTING AGENCY: Angola: Ministry of Energy and Water
Botswana: Ministry of Mines, Energy & Water Affairs
Namibia: Ministry of Agriculture, Water and Rural
Development
CO-ORDINATING AGENCY: OKACOM (Okavango Basin Commission)
CO-OPERATING AGENCY: UN Food and Agriculture Organisation (FAO)
REQUESTING COUNTRIES: Angola, Botswana, Namibia
ELIGIBILITY: Eligible under para. 9(b) of the GEF Instrument
GEF FOCAL AREA(S): International Waters
GEF PROGRAMMING FRAMEWORK: Operational Programme #9: Integrated Land and
Water Multiple Focal Area

2. SUMMARY: The Okavango River Basin (ORB) remains one of the least human
impacted basins on the African continent. Mounting socio-economic pressures on the basin in
the riparian countries, Angola, Botswana and Namibia, threaten to change its present
character. It is anticipated that in the long term this may result in irretrievable environmental
breakdown and consequent loss of domestic and global benefits. Maintaining these benefits
requires agreement over the sharing of both the benefits and associated liabilities (to include
those of an environmental and ecological nature) through joint management of the basin's water
resources. The 1994 OKACOM Agreement, 1995 SADC Protocol on Shared Watercourse
Systems and the 1997 UN Convention on the law of the non-navigational uses of international
watercourses provide a framework for such an agreement. Under the OKACOM Agreement,
the riparian countries are working toward the implementation of an Integrated Management
Plan (IMP) for the basin on the basis of an Environmental Assessment (EA). Stage I GEF
support will enable the formulation of the Strategic Action programme (SAP). This is the
current 3 year stage as expressed in this Brief. The SAP formulation will involve as an early
activity completion of the draft transboundary diagnostic analysis (TDA) and launch policy
initiatives to enable implementation of the Environmental Analysis (EA) and the Integrated
management Plan (IMP) in all riparian countries. The SAP will structure inputs and identify
resources necessary for implementation of the transboundary elements of the EA and the IMP.
Subsequently, stage II of GEF will support implementation of the SAP. The SAP will include
necessary baseline and additional actions to address the priority transboundary issues and
provide an essential monitoring and evaluation tool for implementation. The project provides
for a process of formal endorsement of the SAP by the participating governments, support to
the translation of SAP provisions into national policy and legislation, and the mobilisation of
institutional and investment resources for its implementation.

3. COSTS AND FINANCING (MILLIONS $US)
GEF
Project Direct Costs $ 4.996
Project Support Services $ 0.395
PDF (Block A and B) $ 374
Sub-total GEF $ 5.765

---

ii

Co-financing:
Implementing Agencies:
World Bank $ 0.300
UNDP $ 0.200
Bilateral $ 0.200
Governments $ 1.625
NGO $ 0.100
Sub-total $ 2.425

Total Project Cost: $ 8.190


4. ASSOCIATED FINANCING:

Estimates of capital and recurrent water sector investment in the three countries a significant
percentage of which will be reallocated through project leverage.
Angola $ 8.000
Botswana $ 9.000
Namibia $ 12.500
Sub-total Associated Finance: $ 29.500


5. OPERATIONAL FOCAL POINT ENDORSEMENT:

Name: Mr. A Gomez da Silva Title: Director General
Organisation: Ministry of Energy and Water, Angola
Date: 11 December 1998

Name: Mr. Mushanana Nchunga Title: Executive Secretary
Organisation: National Conservation Strategy Agency, Botswana
Date: 11 December 1998

Name: Mr. S. Simenda Title: Deputy Permanent Secretary
Organisation: Ministry of Environment & Tourism, Namibia
Date: 11 December 1998

6. IA CONTACT:
Maryam Niamir-Fuller
GEF Regional Co-ordinator, Regional Bureau for Africa
DC1-2386, 1 United Nations Plaza, New York, NY 10017,
Tel. 212 906 6067, Fax 212 906 6362,
e-mail: maryam.niamir-fuller @undp.org




Conventions/UN Resolutions/Regional Protocols
Angola
Botswana
Namibia
Bio-diversity
Ratified
Ratified
Ratified
Climate Change
Pending
Ratified
Ratified
Desertification
Ratified
Ratified
Ratified
Ozone Depletion
Pending
Ratified
Ratified
RAMSAR

Ratified
Ratified
UN General Assembly Resolution 51/229: Convention Signed
Signed
Signed
on the law of the non-navigational uses of international
watercourses
SADC Protocol on Shared Watercourse Systems
Signed
Ratified
Ratified

---

iii


ACRONYMS

APR Annual Programme Review
PMU Project Management Unit
DWA Department of Water Affairs
DNA Direcçäo Naçional de Águas
EA Environmental Assessment
FAO Food and Agricultural Organisation
GEF Global Environment Facility
GTZ Deutsche Gesllschaft fur Technishce Zusammenarbeit
GHABIC Angolan Authority of the Cunene River Basin
IA Implementing Agency
IMP Integrated Management Plan
IUCN International Union for the Conservation of Nature
IW International Waters
IMP Integrated Management Programme
LEARN Learning Exchange and Resource Network.
NCU National Co-ordination Unit
NGO Non Governmental Organisation
NWRMR Namibian Water Resources Management Review
OBSC Okavango Basin Steering Committee
OKACOM Permanent Okavango River Basin Commission
ORB Okavango River Basin
OP Operational Programme
OS Operational Strategy
PIR Project Implementation Review
PMC Project Management Committee
PPER Project Performance and Evaluation Review
PSC Project Steering Committee
SADC Southern Africa Development Community
SAP Strategic Action Programme
TDA Transboundary Diagnostic Analysis
TPR Tri-partite Review
UN DESA United Nations Department of Economic and Social Affairs
UNDP United Nations Development Programme

---

1



I. PROJECT CONTEXT AND BASELINE COURSE OF ACTION

1. General Context. The Okavango River Basin (ORB) is shared by three nations, Angola,
Botswana, and Namibia. A map of the basin is presented in Annex IV. The basin straddles sub-humid
climatic zones in Angola through semi-arid to arid climatic zones in northern Namibia and Botswana
where freshwater sources are scarce. The basin's source in the Angolan Province of Cuando Cubango is
relatively undeveloped with few wholesale water demands made upon the watercourses of the source
sub-basins, the Cubango and Cuito. As the main tributaries converge on and run along the border with
northern Namibia, human development alongside the trunk water course intensifies. In Botswana, the
ORB drains into the Kalahari desert as an alluvial fan, commonly known as the Okavango Delta which
forms part of a large national wetland reserve. Periodic outflows from the apex of the fan to the Chobe
channel linked to the Zambezi basin occur but the bulk of the flow drains to the distal margin of fan
which is bounded by geological faults across which flood flows intermittently drain and flow into the
Boteti river to evaporate in the Makgadikagadi basin.

2. The Hydrological Context. The ORB has a topographic catchment of approximately 704,000
km2 and a length from basin divide in Angola to the distal margin of its terminal fan of approximately
1,100 km. The economic and ecological vitality of the ORB and its associated wetlands depends upon
the detailed character (timing, volumes, duration) and quality of the annual flow regime generated in the
source catchments of Angola. Over the Angolan portion of the basin, from the mean annual rainfall of
approximately 800 mm, only 58 mm appears as flow at Rundu (Cubango sub-basin) and 74mm at
Dirico (Cuito sub-basin). At the head of the Delta, at Mohembo, the combined annual yield of both
these sub-basins is reduced to 44 mm. By the time flow has traversed the Delta, despite the addition of a
further 4-500 mm in direct rainfall over the area of the fan itself, outflows from the fan are negligible in
most years. The bulk of the loss over the area of the Delta is through evaporation and
evapotranspiration from surface and shallow groundwater. Potential rates of evaporation over the fan
are in the order of 2,000 mmyr-1. All transmission and evaporative losses along the course of the ORB
are essentially non-negotiable if the basin is to retain its present hydrological and ecological character.
In addition, the evaporation component of the hydrological cycle is a key element of the basin's micro-
climate which supports specific aquatic habitats. As a low gradient hydrological "sink" in an arid
quarter of southern Africa, the fan is highly sensitive to variations in tectonic and climatic regime, but is
equally sensitive to man-induced threats and there is now preliminary evidence that the hydro-
environmental integrity of both the source and the sink of the ORB is under threat from such activities.

3. Environmental Context. Freshwater is the prime environmental and socio-economic resource
and agent in the ORB directly supporting all human activity, vegetation and wildlife habitats and their
associated productivity. Freshwater sources are also the natural resource component most at risk since
there is no economic substitute for the basin's watercourses and associated aquifers while they are also
the final repository of anthropogenic waste. The status of the sources and the characteristics of the
freshwater balance in the basin as a whole is therefore key not only as a critical resource for
development, but also as an irreplaceable global environmental asset. The Okavango Delta has been
designated a RAMSAR site on the basis of its wetland values and also contains the globally important
Moremi Protected Area. The flood and baseflow to the fan sustain a unique wetland environment which
supports significant regionally and globally significant biodiversity with a large number of endangered
and threatened species.

4. System boundary. The functional system boundary for water, land, forest and wildlife comprise
much smaller sub-sets of the basin's geographic limit. This is because the hydrologically active area of
the basin is much smaller than the topographic limits of the basin in Botswana and Namibia. Equally,
only a part of the basin's population and communities bounded by the topographic divide in Namibia
and Botswana are directly engaged with the water resources of the basin However, there are significant
external linkages beyond the hydrological and topographic system envelopes, notably; demands for
water abstraction in Namibia originating beyond the topographic limits of the basin; political instability
in Angola as a whole is causing waves of de-population and re-settlement in the basin; and the wetland
environment of the fan in Botswana provides staging area for birds migrating to southern Africa during
the boreal winter and is a storehouse of globally significant biodiversity. Thus the impact of water body
degradation would have ramifications far beyond the physical boundary of the basin.

---

2




5. Socio-economic Context. The pressures on the water resource base and associated environments
of the ORB are driven by population growth and shifts in consumption patterns. While the population
within the ORB is currently estimated at approximately 580,000 (250,000 in Angola, 140,000 in
Botswana, and 190,000 in Namibia), the pent-up demands for raw water from population centres
outside the basin in Namibia and Botswana are now significant. The intra-basin population comprises
predominantly mixed agro-pastoral low income communities who are highly dependent upon the
freshwater resources of the basin for their basic subsistence and income generation. By contrast, the
extra-basin population creating pressure for inter-basin transfer is largely urban with associated
industrial demands. The productivity associated with freshwater use and its related aquatic ecosystems
is estimated at approximately 25% of GDP in the basin as a whole although there is considerable inter-
country variability. In Angola, civil war has resulted in a decline of population, commerce, and trade, so
that current use of the basin's water resources are limited to water supplies to small regional centres and
some small scale floodplain irrigation. In contrast, Botswana's mineral led growth is putting pressure on
its vital freshwater resource base as urban centres on the fringe of the Delta expand. There is also
significant demand for amenity use of the Delta largely from international tourists. Namibia is
attempting to manage demand for water but is also facing unprecedented levels of demand for municipal
and industrial water, particularly in its central area which lies outside the topographic and
hydrologically active system boundaries of the ORB. The ORB is the only perennial river system that
lies within Namibia and is therefore the first candidate in Namibia's search for new water. These
disparate levels of dependence upon the basin's natural resource base in each country create barriers to
harmonised development of the basin as a whole. In addition there is concern in both Botswana and
Namibia that current national patterns of development are not sustainable. State of the Environment
(SoE) reports dealing specifically with water have recently been commissioned by the Ministries
responsible for environment in both countries.

6. Policy Context. Recognising the significant regional and global values of the Okavango River
Basin, the Governments of Angola, Botswana and Namibia convened the first meeting of the riparian
States in Windhoek in 1993. The Permanent Okavango River Basin Commission (OKACOM) was
subsequently established in September 1994. The countries are committed to the negotiation of all
transboundary water issues through OKACOM where they place high level inter-ministerial
representation to advise on all technical and policy issues to do with the water resources of the basin.
The countries have made it clear that they intend to continue this reliance on OKACOM to address
technical and policy issues regarding water resources in the basin. This is seen as strengthening the
rationale for a GEF intervention. For example, a key issue for this project will be prior notification
between the riparian countries. Under the Helsinki Rules (Article XXIX) invoked in the 1994
OKACOM Agreement, riparian countries are required to give prior notification of planned and
unplanned measures affecting the ORB. Thus, at regional level, the 1994 OKACOM Agreement, the
1995 SADC Protocol on Shared Watercourse Systems and the 1997 UN Convention on the law of the
non-navigational uses of international watercourses provide a framework for national policy initiatives
to converge on an agreed programme of joint management.

7. Commissioners of OKACOM are appointed by the respective cabinet offices and the
Commission reports at cabinet level in all three countries through the respective Ministers. In Angola
this is the Ministério da Energia e Águas , in Botswana the Minister of Mineral Resources and Water
Affairs and in Namibia, the Minister of Agriculture, Water and Rural Development. Meetings are held
in rotation at national capitals and the Departments of Water Affairs in Botswana and Namibia and
GABHIC (The Cunene River Basin Authority) in Angola service the secretariat function within
OKACOM. Prior to the establishment of OKACOM, Botswana had been supporting research in ORB
system in collaboration with donors and had cancelled a major water development project for the
southern margin of the Delta on the basis of an independent IUCN review in 1992. Namibia had
included the option of abstraction from the Okavango in its Central Area Water Master Plan published
in 1995.

8. The national development policies of all three countries are centred on maintaining or increasing
rates of growth while also addressing poverty alleviation and sustainable livelihoods. Freshwater
resources are critical to pursue these national interests. The relevant national policies in Angola are
associated primarily with the development priorities in Cuando Cubango Province as peace becomes re-
established and with the commitment to co-ordinate basin level activities through GABHIC, under the

---

3



Deputy Minister for Water. The relevant national policies in Botswana are linked very much to wildlife
and nature conservation in the Delta where the Government is promoting eco-tourism and wildlife
management. Botswana is also in the process of developing a Wetlands Policy and Strategy which will
facilitate proper utilisation and management of resources in the Okavango Delta and other wetlands in
the country. At the same time, Botswana is developing groundwater on the margins of the fan to serve
urban expansion and mining activities. Caught between these two riparians, Namibia's policies are
conditioned by an imperative to increase water supply for the central area of the country and an active
policy of devolution of natural resource planning and management to the regions. These policy
directions need to be co-ordinated if the ORB resources are to be managed in a sustainable fashion.

9. Institutional Context. The countries recognise that various ministries and other government
entities at national level have an interest in the work of the project and its effective implementation. The
countries are committed, through their presence in OKACOM, to involve the appropriate ministries and
government and non-governmental organisations (NGOs) necessary for the completion of a TDA and
the formulation and implementation of a SAP. There are several dozen NGOs in the basin that are
active in monitoring & research, policy, habitat conservation, institutional strengthening, public
awareness and education programmes dealing with critical environmental problems in the ORB. This
commitment to stakeholder participation will also strengthen the engagement of key ministries with the
process and thus help ensure country commitment to implementation. Despite the urgent need to co-
ordinate at regional level, national co-ordination between lead agencies involved in water and
environment needs to be strengthened and for a clearer separation of policy and operational (user)
functions to emerge. In Angola, the Direcçäo Naçional de Águas (DNA) of the Ministry of Energy and
Water and Ministries of Environment and Planning play strong roles at the national and international
levels for all Angola's shared river basins through the Authority of the Cunene River Basin (GABHIC).
In Botswana, the Department of Water Affairs under the Ministry of Minerals, Energy and Water
Affairs is the lead agency in water resources and provides support to the National Conservation
Strategy (Coordinating) Agency in the implementation of the National Conservation Strategy. In
Namibia, the key institutions are the Department of Water Affairs under the Ministry of Agriculture,
Water and Rural Development and the Environmental Directorate in the Ministry of Environment and
Tourism. This institutional setting at national level is reflected in OKACOM where cross-sectoral co-
ordination and cross-disciplinary collaboration is not yet effective. While OKACOM has the mandate to
convene all relevant agencies and institutions, in practice this has been difficult to effect since
governments' professional resources are severely stretched. Effective consultation and co-ordination at
national and regional level is therefore an essential pre-condition for the successful formulation and
implementation of an integrated management plan. This presents prime opportunity for GEF support to
help clarify policy and institutional linkages to achieve co-ordinated management of the ORB.

10. OKACOM is thus the key inter-governmental institution in co-ordinating integrated approaches
to the development and protection of the basin. Accordingly, the mandates, functions, commitments and
resources invested within OKACOM need to be reviewed during formulation of any programme of joint
management to assure countries that it will be able to discharge its role effectively during subsequent
implementation.

THE BASELINE COURSE OF ACTION

11. In 1995 OKACOM declared its commitment to the implementation of an Environmental
Assessment (EA) and an Integrated Management Plan (IMP) for the basin The proposal for the EA and
IMP recognised the threats to the basin and the need for joint management to protect national interests.
No explicit consideration of global objectives in terms of the GEF Operational Strategy or International
Waters Operational Programmes were given at this stage. OKACOM formally requested the assistance
of the GEF in August 1995, requesting UNDP to assist in the development of a GEF supported
programme for the Okavango River Basin. Consequently, GEF PDF Block A and then Block B
resources were used in 1996 and 1997 to begin removing critical barriers in regional co-operation and
analysis and working toward the development of a joint management programme.

12. A draft Transboundary Diagnostic Analysis (TDA) has been compiled as part of the PDF B
activities. The draft TDA has initiated a consultative process with basin stakeholders, established the
current status of the basin as a whole, identified causes of degradation, and imminent threats, and
indicated critical gaps in information, policy and institutional arrangements This is the first attempt of

---

4



its kind to analyse the hydro-environmental and socio-economic information available in all three
riparian countries. The draft TDA will be expanded as gaps in the analysis are filled and the TDA will
include a thorough review of the competencies and comparative advantages of OKACOM as a basin
organisation in preparation for SAP implementation. This analysis of the effectiveness of existing
mechanisms and clear recommendations for improvement of both OKACOM and all the related policy,
legal and institutional arrangements at national and regional level is an important test of the GEF
intervention.

13. Environmental Threats. The chief threats to the ORB arise from patterns of development that
cannot be effectively co-ordinated. It is apparent from the draft TDA findings that the natural resources
of the basin are already subject to demands for water and land from agriculture, urban and industrial
development both within and outside the basin. The externalities generated by these demands are already
resulting in modified quantity, quality and sediment flows. There are also minimum requirements for the
basin to be met if it is to continue to furnish its flow of environmental benefits and maintain a critical
stock of freshwater assets. However, the national institutional and policy responses to date has been one
of supply management. In financial, economic and environmental terms this approach is not sustainable.
Regional demands for raw water have to be managed in a co-ordinated fashion and an integrated joint
management plan with a comprehensive approach to demand management is therefore essential. If these
threats are not addressed through such management, irreversible changes in the basin's water balance,
and hydrochemical and hydrogeomorphological responses are anticipated. Such changes will impact the
productivity and environmental integrity of the basin as a whole.

14. Causes. The proximate cause of environmental degradation is three fold; continuation of
unplanned abstraction from watercourses and aquifers; growth of effluent disposal and non-point
pollution sources; and the accelerated erosion of land hydro-geomorphologically linked to the basin. But
the root causes lie with patterns of socio-economic development ­ population growth, urbanisation and
industrialisation. Key factors in these trends are; over-grazing which is already resulting in accelerated
land and soil degradation in Namibia and Botswana; unplanned development in Angola along de-mined
transport corridors in the Cubango and Cuito sub-basins as post civil-war re-settlement occurs; and
pressure for new and increased abstraction of raw water to service urban expansion and irrigated
agriculture. It is anticipated that these factors will continue to accelerate new demand for raw surface
and groundwater in the basin, and its immediate region, and accelerate the process of land use
conversion for subsistence agriculture. But it is equally apparent that the trends are outpacing policy
and institutional response in the riparian countries and it is to address these intermediate causes where
co-ordination is necessary and where improved understanding can drive the required policy shifts.

15. Baseline. The expected baseline course of action in the ORB is directed at national interests,
primarily socio-economic development (whether planned or informal) through the promotion of water
services for rural and urban water supply and sanitation, small scale irrigation and stock watering.
Only a small portion of the national baselines are directed specifically to water resource management in
the ORB. Further details of the baseline are given in the Incremental Cost Analysis presented in Annex
I.

16. Angola: Since independence in 1975, there has been no appreciable inward investment to the
basin. A proposed regional re-habilitation programme for Cuando Cubango Province formulated in
1995 will supply a considerable amount of infrastructure related to water supply, sanitation, agriculture
and transport. However, under present circumstances these activities cannot be verified. In 1997 World
Bank has proposed an Agricultural Sector Investment Programme part of which may be expected to
assist smallholder and commercial farmers in the Province. The World Bank is also preparing a national
Water Sector Development Project which is be expected to channel resources for water supply and
sanitation to major provincial capitals, Cabinda, Lubango, Lobito-Benguela, Luanda and Namibe. None
of them is in Cuando-Cubango province. A separate World Bank technical assistance project is under
preparation which will encompass national programme of water policy institutional development and
transboundary water resources. A pilot river basin management component on the Cunene basin,
adjacent to the ORB is also being considered. This work will complement Norwegian Government
assistance to national hydrometric services and water resource assessment for other priority basins, but
not including the Cubango or Cuito sub-basins.

17. Botswana: The Government of Botswana is committed to the implementation of their 8th

---

5



National Development Plan for the period 1997/8-2002/03. In this period, the Plan anticipates various
capital development projects and studies, elements of which are related to water management in the
vicinity of the Okavango Delta. These national plans include; Major Village Water/Sanitation
Development; Groundwater Studies and Protection; Hydrological Support including updating of the
Okavango Forecasting Model; and International Water Planning and Development.

18. Namibia: Under its First National Development Plan (NDP1) for the period 1995/6-
1999/2000, the Government of Namibia's support to the Okavango region and Caprivi Strip focuses on
health and education sectors with a programme of rural water supply and sanitation supported by GTZ.
Additional community development activities are carried out by Namibian and international NGOs. A
World Bank/GTZ/UNDP Water Resource Management Review (NWRMR) was launched in early 1998
with total resources of US$ 1,100,000. Elements of this exercise will be directly related to
transboundary water issues, including the Okavango. Despite this, the Government of Namibia has
made provision for feasibility studies for the construction of an emergency pipeline from Grootfontein to
the Okavango at Rundu. The preliminary feasibility work carried out in 1997 amounted to
approximately US$ 1,500,000.

19. Hydrological analysis: Current detailed hydrological, hydrogeological and hydrochemical
information for the ORB is fragmented and, in the case of Angola, entirely absent. The basin has no
regulatory or control structures at which flows can be determined accurately. Validation and verification
of resource development options (both in terms of quantity and quality) is therefore dependant upon high
quality continuous stage/discharge information at key natural channel reaches in the basin, particularly
in relation to the relative contribution of the Cubango and Cuito sub-basins and their associated
catchments in Angola. At present, the water resource records from Angola are limited to variable sets of
level readings and gaugings for the period 1963/4 to 1969/70 in the Cubango and Cuito sub-basins,
principally in the upper catchments. There is no systematic measure of the relative yields of the sub-
basins before they cross the Namibian border. The former gauging locations in Angola are known to
have been selected on the basis of ease of access, not reach stability so that their stage/discharge
relationships are suspect. The only permanent cable-way from which an accurate stage/discharge
relationships has been determined is at Mukwe in Namibia. The gauged flows at Mukwe are routinely
compared with the level readings at an unsuitable section at Mohembo in Botswana to establish an
agreed inflow to the `panhandle' in Botswana. The hydrometric network described above is not
sufficient to determine and monitor the amount of water, its quality, timing and availability throughout
the system that is needed to sustain the various consumptive and non-consumptive uses for water, and
for the Okavango Delta in particular, nor does it provide a system to verify compliance with a basin-
wide joint management plan. The riparian countries have no specific national plans for the
improvement of hydrometric monitoring on the ORB.

20. Information availability. Government departmental libraries, national research institutes, and
universities all maintain indexed hardcopies of relevant reports and maps and some digital data, but in a
variety of formats. Access to these sources in the ORB region is therefore limited. Hydrological and
hydrogeological information for the Angolan portion of the basin was taken out of the country at
Independence in 1975 and is believed to reside in Lisbon, Portugal. Since 1975 there has been no
additional hydrometric data gathered for the Cuito and Cubango sub-basins. Equally, much original
research on the Okavango Delta resides with research groups, institutions and at universities ouside the
basin. Much of the collected data and subsequent analysis is either sector based, academic or focused on
the Delta.

21. Consequences. The national policy focus and institutional arrangements are not sufficiently
co-ordinated at national or regional level to address threats to the basin's freshwater resources. The
consequences are two-fold. First, the primacy of national interests is resulting in the imposition of
transboundary externalities; these include: quality and quantity losses of water supplies for urban
centres in the basin (Rundu, Maun); reduced supplies for irrigated agriculture (Caprivi and fringes of
the Delta); degraded stock watering (Caprivi, Ngamiland); reduced supplies for mining (Orapa); loss of
biodiversity; and compromised nature tourism (Caprivi, Panhandle, Delta,). Second, the costs of co-
operation are high where barriers to communication and understanding persist.

22. Required actions. Barriers to transboundary management and the achievement of global benefits
are manifest under the baseline. To overcome these barriers, understanding of environmental issues,

---

6



consultation and commitment to alternative course for sustainable development needs to be addressed.
The principal barriers and constraints include:
· Policy, Institutions and Co-ordination - there is no basin-wide policy perspective. The current policy
focus on national issues will not result in the sustainable development of basin and OKACOM
lacks expertise and the capacity to co-ordinate effectively. OKACOM therefore needs to be in a
position to establish this perspective and drive a programme of joint management with the
appropriate political and financial support.
· Awareness, Consultation and Communication ­ there is a lack of cross sectoral and stakeholder
consultation and communication which is inhibiting participation, commitment, and investor buy-in.
To address this issue, national and regional consultative fora need to be scaled up, particularly
during the intensive planning stages.
· Information and Analysis ­ there is a fundamental lack of understanding of the threats and
opportunities of the hydro-environmental and socio-economic systems of the basin as a whole. This
is particularly the case for the Angolan portion of the basin. Alternatives cannot be evaluated and
transboundary economic assessments made. Knowledge based planning frameworks (with
distributed modelling and scenario development capabilities) need to be assembled and multi-
objective decisions made.
· Criteria, Guidelines ­ There exist no basin-wide technical criteria or guidelines for resource
assessment and valuation to inform allocation decisions. This gap needs to be filled through basin
wide hydro-environmental and socio-economic analyses.
· Indicators, Monitoring and Evaluation ­ there is no basin-wide system of hydro-environmental and
socio-economic monitoring procedures that can be used to evaluate the impact of the joint
management plan. Key indicators and benchmark monitoring arrangements need to be agreed.
· Training ­ All levels of technical and professional level staff in water, environmental and
community development agencies will require training in specific aspects of SAP implementation.
· Political agreement on and commitment to SAP implementation ­ the role of OKACOM in
brokering political agreement and commitment needs to be strengthened through the inter-ministerial
and cross-sectoral advisory mandate that it possesses. Here the role OKACOM can play in
convening the technical dialogue between ministries, sectors and disciplines in all three countries
will be pivotal.
· Sustainable Financing ­ The generation of financial resource flows for implementation of the
management plan has not been addressed. Specialist training in investment analysis and resource
mobilisation is required to service stakeholder participation and donor consultations.

II. PROJECT PURPOSE AND THE RATIONALE FOR GEF FINANCING - THE
ALTERNATIVE COURSE OF ACTION
Project Objective

23. The project objective is to alleviate imminent and long term threats to the linked land and water
systems of the OR through the joint management of the ORB water resources and the protection of its
linked aquatic ecosystems, comprising all wetlands, fluvial and lacustrine systems, and their biological
diversity. A two stage approach has been adopted. Stage 1, the subject of this intervention, will involve
the preparation of the SAP. Stage 2, the subject of a subsequent intervention, will involve
implementation of the SAP.
Project Purpose

24. The purpose of the project is threefold. First. to overcome current policy, institutional, human
resource and information barriers and constraints to co-ordination and joint management of the basin.
Second, to complete a transboundary analysis to underpin a programme of joint management. Third, to
facilitate the formulation of an implementable programme of joint management to address threats to the
basin's linked land and water systems. A Strategic Action Programme (SAP) approach will be used as
the programming instrument for the project. A two stage approach will be adopted, namely formulation
of a Strategic Action Programme (SAP) to bring together all planning and management initiatives
followed by SAP implementation. This project marks the first stage in this process. The SAP provides
the vehicle in which to package the plan, overcome the barriers to regional co-operation and ensure that
the sustainable development baseline can be met and global objectives achieved. The SAP will be
designed to achieve the equivalent national development goals articulated in the baseline but will take

---

7



national and regional activities into a new area - the alternative - where global benefits will accrue. The
project will establish three fundamental outputs;
· strengthened mechanisms for the joint management of the ORB
· a completed transboundary analysis; and
· a formulated SAP.
This initiative will be driven by OKACOM in which the countries transboundary technical and policy
analysis functions are invested and who will be responsible for co-ordinating formulation of the SAP
and its subsequent implementation. OKACOM will also be strengthened through the review of its
mandates, functions, competencies and resources, and its commitment to inter-ministerial and cross-
sectoral co-ordination and collaboration.

Rationale for GEF Financing

25. Eligibility for GEF Financing: As recipients of UNDP technical assistance, Angola, Botswana,
and Namibia all meet the eligibility criteria set out under paragraph 9 (b) of the GEF Instrument. The
project is eligible for GEF assistance under Operational Programme number 9: Integrated Land and
Water/Multiple Focal Area, meeting the eligibility criteria by: [1] focussing on preventive measures to
address threats rather than remedial, highly capital-intensive measures. [2] being nested firmly within
the regional and international agreements on transboundary waters, [3], developing sound land and
water resource management strategies through new policy initiatives and institutional arrangements [4]
testing the use of the SAP concept to facilitate collaboration and leveraging of funding [5] financing
the agreed incremental costs of measures to secure global benefits, providing for institutional and
financial sustainability, [6] following guidance regarding public participation, [7] including a strong
monitoring and evaluation component, that will document and widely disseminate lessons learned during
the course of activity implementation, and 8] have clear links with GEF OP # 1 and 2. In addition, the
GEF support will produce outcomes that address the short-term Operational Programme objectives of
land degradation, a focus on Africa, SAP development, and participatory planning,

26. The objectives mark a significant response by the riparian countries to the 1995 Protocol on
Shared Watercourse Systems in the SADC region and the Convention on the law of the non-
navigational uses of international watercourses passed as a UN resolution in July 1997. They also echo
the concerns of Chapters 18, 10 and 12 of Agenda 21 dealing with freshwater, land resources and
fragile ecosystems respectively. An agreed SAP will provide a substantive background for additional
GEF support to government actions in Botswana to safeguard the globally significant biodiversity of the
wetlands of the Okavango Delta in accordance with the agreed broader programme of UNDP support to
Botswana.
The project design and process

27. The formulation of the SAP will be driven by a consultative process with stakeholders and
enabled by policy, legal, institutional and financial commitments. When finalised through a series of
consultative workshops, the TDA will provide an analysis of priority transboundary environmental
problems, identify the scale and causes of degradation (proximate, intermediate and root), information
gaps, policy distortions and institutional deficiencies. The SAP approach will be instrumental in
defining and driving the necessary policy and financial commitments in the short to medium term. It is
anticipated that the SAP will be formulated over a three year period after which substantial leveraged
co-financing will be used to launch a longer period of SAP implementation followed by a continuous
programme of joint management. The SAP will establish clear priorities that are endorsed at the highest
levels of government and widely disseminated. Priority transboundary concerns will be identified, as
well as sectoral interventions (including, policy changes, program development, regulatory reform,
capacity-building investments) needed to resolve the transboundary problems as well as regional and
national institutional mechanisms for implementing elements of the SAP. Co-ordination of priorities
with those identified under the climate change and biodiversity focal areas will be undertaken during the
SAP formulation. The countries and the GEF will agree on the baseline environmental commitments
(which should be funded domestically or through donors or loans) and activities that are additional for
solving the transboundary priority problems. A major donor conference will be held when the SAP is in
the draft stage to facilitate international commitments to action.

---

8



III. PROJECT COMPONENTS, OUTPUTS AND ACTIVITIES AND EXPECTED RESULTS
GEF PROJECT COMPONENTS AND OUTPUTS

28. This proposal identifies specific groups of outputs and activities under each of the three major
project components. Indicative budgets are based on proforma costs and the experience gained during
the PDF work. The project outputs have been determined from consideration of the gaps identified in the
draft TDA and guided by the principles for successful initiatives in river basin and wetland
management. The specific activities under each output are detailed in the Logical Framework Matrix,
Annex II. All activities under each output are time bound and sequenced. Many of the project activities
are iterative while others are strictly phased. A Gantt chart is appended to the Logical framework in
Annex II to clarify the timing of outputs within the 3 year project duration.

COMPONENT A: STRENGTHENED MECHANISMS FOR JOINT MANAGEMENT OF THE ORB

Output A1. Expertise in the riparian countries strengthened to drive both inter-governmental and
intra-governmental technical and policy initiatives in river basin planning and
management for the ORB

29. To initiate all outputs OKACOM will establish a small project executive office, a Project
Management Unit (PMU), together with national counterparts in National Co-ordination Units (NCUs).
These units will form the core of an Okavango Initiative to pull together a network of national and
regional experts to produce the analytical work and then launch policy initiatives through consultative
fora. The project will be aided by the high-level riparian country commitment invested in OKACOM
and its mandate to advise on technical and policy issues, and involve country resources that cut across
ministerial mandates, sectoral interests, and technical and scientific disciplines. The PMU/NCU
arrangement will exist for the life of the project only and will have transferred key expertise to national
and regional institutions through training and education activities so that programme co-ordination can
continue through the period of SAP implementation and beyond. A critical activity of the PMU at
project inception will be to obtain an independent review of the mandate and capacity of OKACOM to
make recommendations on appropriate changes in the OKACOM agreement and national enabling
environments to better effect the implementation of joint management of the ORB. Activities of the
PMU and NCUs will include: undertaking policy analysis; publishing and discussing results of analysis;
formulating policy initiatives; identifying and servicing key training needs at all levels (institutions and
communities); and designing investment vehicles for SAP implementation (ii & vi). Sub activities for
the PMU will include: identifying regional and national capacity building needs and targets; and
developing professional training at the regional level. Sub-activities for NCUs will include; developing
and advocating national policy perspectives; and developing professional and community training at the
national level.

Output A2. Basin-wide mechanisms for stakeholder participation in basin management
established and tested to ensure consensus, replicability and taking to scale

30. The consultative process developed during PDF activities will be extended through consultative
public meetings, reviews and seminars. SAP formulation will require broad-based collaboration with
and participation of these basin stakeholders in association with related interest groups, donors, NGOs
and research organisations to design realistic approaches to the management of land and water resources
in the ORB. The PMU will establish and maintain a series of fora in each county to serve as principle
sounding board for SAP formulation. Special emphasis will be given to activities in Angola where
previous attempts during the PDF process were inhibited by political instability but where special
consideration of displaced communities is required. In addition to the basin communities, the key
institutional partners within government ministries and departments will be brought in to play a much
more active role, a role facilitated by the presence of carefully selected NCU members. Clear
participatory mechanisms for SAP formulation and later implementation will be established including an
NGO sub-forum for NGO's to network, identify priorities and responsibilities, and share data and
information. In addition broad public awareness in understanding the work to be undertaken in the SAP
will be promoted through: a high intensity campaign in public awareness which will occur in the first
months of the project; improving and extending World Wide Web access to the OKACOM website; and
publishing and disseminating TDA and SAP formulation information. Pilots and demonstrations for

---

9



community participation (including mobilisation of funding) will be initiated in selected key
communities within each country to test the replicability of basin management at local levels the scope
for taking the initiatives to scale in the basin.

Output A3 Policy, legal, institutional and human resource initiatives launched and linked to
national policy reviews to co-ordinate river basin resource management
approaches across the basin

31. Well structured institutional mechanisms are required to permit integration across natural
resource issues at the national and regional levels. An important element here is ensuring that
OKACOM becomes much more inclusive of environmental, agricultural, financial and planning
agencies. Therefore the project's executive office, the Project Management Unit (PMU), together with
national counterparts in the National Co-ordination Units (NCUs) will : establish natural resource
planning linkages across national, inter-ministerial and socio-economic sectors and actors; specify
natural resource linkages within national administrations/jurisdictions and NGOs associated with the
basin boundaries; and link the basin initiative to regional planning and socio-economic development and
initiatives and the activities of regional NGOs. This will allow OKACOM to: lock on to national and
regional organisations responsible for natural resource management in the ORB; facilitate government
buy-in and eventual commitment to implement; determine feedback in SAP formulation; and establish
channels and participatory mechanisms for SAP implementation. The results of the local level basin
management pilots under A2 will be used to test the effectiveness of existing and alternative institutional
links and structure appropriate SAP interventions. In particular, the international waters elements of the
World Bank led Angola Water Sector Development project and the Namibian Water Resources
Management Review (NWRMR) will be instrumental in defining Angolan and Namibian policy toward
shared basins and will establish the enabling environment for subsequent investment under the SAP.



Output A4 Monitoring and Evaluation Procedures for SAP implementation

32. The analytic work carried out in both component A and B will result in a set of key hydro-
environmental, socio-economic and institutional criteria. This will occur toward the end of the project.
These criteria will be used to develop a set of agreed indicators by which to verify compliance of a joint
management plan and monitor and evaluate the impact of the SAP. Therefore institutional
adaptation/sustainability indicators will be used to assess the extent to which the alternative has resulted
in changes to national and regional institutions, particularly within the stakeholder institutions in the
basin. In addition, the monitoring of key hydro-environmental indicators will have commenced as part
of the project to measure the environmental impact of the SAP.

COMPONENT B: COMPLETED TRANSBOUNDARY DIAGNOSTIC ANALYSIS

Output B1 Water resource assessment and analysis completed to determine hydro-environmental
processes, characteristics and limits

33. A joint management programme will involve decisions about the allocation of water quantity
and quality amongst the riparian countries and the basin's environment. The programme will also
require basin-wide environmental indicators to be monitored to check compliance with and evaluate the
impact of the SAP and the ensuing programme. While the overall system boundaries and preliminary
understanding of the ORB has been identified by the draft TDA work, the TDA can only be completed
if hydrological, hydrogeological and hydrochemical information can be analysed to the minimum degree
of precision necessary to permit assessment of credible alternatives and joint management regimes. The
current information on the dynamics of the basin water balance (quantity and quality) and consumptive
and non-consumptive uses across the basin and projections for future water demands will be refined.
Given the urgent need to establish this data for consultation and decision making for SAP formulation,
these water resource assessments will be given the highest priority. The compilation of existing data and
new data sets that are needed will be fast-tracked to identify the minimum data sets to initiate the
preparation of basin management models and subsequent negotiation and joint management. This
compilation of water resource data will be done on the basis of priority and need concentrating on the
glaring data gaps in Angola. Thereafter data will be selectively compiled on the basis of the most

---

10



sensitive uses scenarios so that a realistic range of likely water management scenarios can be modelled
and options prepared at later stage of project implementation.

Output B2 Socio-economic analysis completed to establish current and future patterns of river
basin resource use and levels of demand

34. A socio-economic framework will be established in parallel with the physical
analysis/framework developed in Output B1. This framework will be based on published reports and
census data and targeted socio-economic assessments, particularly in Angola where particular attention
will be given to the status of displaced communities and their specific engagement with the natural
resources base of the ORB. Levels of consumptive and non-consumptive water use and levels of
demand for the basin resources will be established and targeted social and economic assessments will be
undertaken where no information exists. To enable appropriate economic analysis of all use and non-use
values for the water resource base, the economic and social productivity of alternative uses of water
across the basin and anticipated changes with time in productivity will be analysed.

Output B3 Water resource and socio-economic analysis super-imposed to define
environmental system limits and parameters

35. The descriptions and analyses of the basin's linked environmental and socio-economic systems
will be super-imposed. The layering of basin frameworks will include; hydrological systems;
hydrogeological sub-systems; ecological sub-systems; basin demographics and socio-economic status;
and basin demands in water quantity and quality. This super-imposition and meshing of the resource
base and the current demands will allow the identification of critical system limits and parameters for
inclusion in subsequent modelling.

Output B4 Environmental assets of the ORB described and valued to structure models

36. The existing environmental assets of the basin will be described in detail based largely on
published material and the State of Environment Reports for Botswana and Namibia due for publication
in early 1999. In the case of Angola, specialist environmental surveys and reports will need to be
commissioned to complement the published material in Botswana and Namibia. These will include rapid
surveys of the fluvial and wetland environments in the Cuito and Cubango sub-basins using remote
sensing techniques and structured ground sampling. The use and non-use values of the environmental
assets of the basin will be calculated on the basis of appropriate valuation methods.

Output B5 Comprehensive set of water resource alternatives for the ORB assessed to
structure model scenarios and tested for replicability and taking to scale

37. All the sources of freshwater and resource management opportunities for the region will need to
be assessed to the extent that they offer alternatives to direct abstraction from the Okavango. These
include existing groundwater sources in all three countries, optimisation of existing infrastructure, and
non-structural solutions such as conjunctive use, national demand management programmes and trade-
able abstraction and pollution permits. Each source and potential management solution will be detailed
with sufficient precision to form a model component which can be considered as a potential alternative
source or substitute for raw water abstraction or water quality tradeoffs. (To assess the viability and
replicability of alternatives, feasibility studies of enhanced recharge, small scale irrigation from
groundwater, conjunctive use and small scale programmes in demand management will be carried out)
In association with the World Bank, the PDF B has already initiated such studies in Namibia.

Output B6 Water resource development and management models used to produce water
resource management options.

38. As soon as sufficient data is assembled, by the end of the second year of the project, interactive
modelling techniques will be used to explore regional water supply and water management alternatives
and sensitivities and to demonstrate these to basin stakeholders. A detailed proposal for this work has
already been submitted to OKACOM by the Natural Heritage Institute of Berkeley, California. A range
of alternative development scenarios will be elaborated to assess the impact of future patterns of socio-
economic demand and the ecological water requirements to maintain the functioning and productivity of

---

11



wetlands in the basin and prevent wetland degradation. Opportunities for conjunctive use and alternative
water resource options both within the basin and for centres of existing and potential demand outside the
basin will be assessed in the models.

Output B7 Economic and environmental criteria produced to guide water resource planning
and development decisions

39. Environmental and socio-economic criteria and guidelines will be produced by the end of the
second year of the project to ensure that management actions and designs are consistent with the
achievement of global environmental objectives. The guidelines and criteria will be pivotal in driving
policy and institutional changes at the regional, national and local levels. These will include clear
recommendations on natural resource valuation, rights in water use and associated natural resource use,
allocation, levels of irrigation efficiency, demand management for urban water and tariff structures for
water services. In addition, a comparative analysis of existing legal and regulatory provisions will be
made and evaluated as a basis for joint management under the SAP and appropriate recommendations
made for national review.


COMPONENT C: SAP FORMULATION

Output C1 Technical and policy implications of joint management options evaluated

40. The implications of adopting the various options will be evaluated by the riparian countries in a
series of OBSC and OKACOM meetings in which the PMU will present the results of the TDA. The
degree to which the various options meet the economic and environmental criteria will be assessed and
the options ranked accordingly. This evaluation will occur within the context of the SAP as it is
developed over the duration of the project.

Output C2 Joint management plan

41. As soon as the management options have been evaluated, the countries will begin work on a
joint management plan for the basin. It will have direct links with ongoing water and environmental
management activities including those carried out by the World Bank and UNDP in Angola and
Namibia. It will begin to take into account a much deeper economic analysis of the transboundary
benefits linked to the ORB.

Output C3 Commitments to SAP Implementation defined including, policy, legal,
institutional, human resource arrangements

42. Authority has been vested in OKACOM by the cabinets of the riparian governments to advise
on all policy, technical and investment matters related to the ORB. The precise policy, enabling
environment and resource commitments from each country will be defined in inter-ministerial and multi-
disciplinary consultations hosted by OKACOM from project inception. This will allow government
commitment to the SAP to be incorporated into national development plans and give a clear signal to
basin stakeholders and SAP partners. These policy and resource commitments will form the basis of the
support to SAP implementation and will have been built over the whole period of SAP formulation.


Output C4 SAP document produced and endorsed by riparian governments through
integration of outputs C1- C3 in collaborative process with basin stakeholders
and SAP partners

43. A draft SAP will be produced in the first year of the project on the basis of preliminary findings
from ongoing project activities. The technical and policy commitments given by the riparian countries
will form the basis of a rolling SAP document into which basin stakeholders and SAP partners will be
invited to contribute on the basis of their respective comparative advantage. The SAP will include
expected and additional priority actions to address the priority transboundary issues and will comprise
policy, legal, institutional and investment decisions at national and regional level. The final draft of the
SAP will be presented to governments for their endorsement in the third year of the project prior to

---

12



presentation at donor conferences.


Output C5 SAP finance mobilised in preparation for implementation

44. SAP investments will be integrated into national development plans. Significant project
resources will be use to assure the preparation of all necessary documentation, meetings and
conferences to mobilise financial support for the SAP. The World Bank is expected to play a lead role
in co-ordinating and organising donor support for the SAP since it is currently assisting Angola and
Namibia in setting the policy frameworks for water related investments and will be preparing national
investment programmes during the project period. In addition, current World Bank activities in Angola
and Namibia have direct links with the project outputs and have been leveraged by the GEF PDF
activities. It is anticipated that the bulk of financing for SAP implementation will come from non-GEF
sources. It is therefore important to develop an adaptable and flexible arrangement with development
partners ­ governments, donors, NGO's and basin stakeholders who will provide financial, technical,
and human resources for implementation. The design of investment vehicles and the production of
prospectus material to match investment opportunities with investors will be essential, as will the
training of Government personnel in this field material and training will be developed and provided to
ensure the Okavango initiative can leverage sufficient funding to realise both an enhanced domestic
baseline and global benefits. There will be an initial, early donor conference as an early project priority.
This will be followed by additional Donor consultations to assure increased donor support for the SAP
by the end of the second year of the project in readiness for additional formal donor conferences in the
final year of the project.
INDICATORS TO MEASURE IMPLEMENTATION OF PROJECT COMPONENTS

45. Specific indicators to measure the implementation of project components are derived from
project reporting requirements, completion of scheduled meetings and consultations and are detailed in
the Logical Framework Matrix (Annex II). These are distinct from the implementation indicators for the
programme of joint management.
END OF PROJECT SITUATION

46. End of Project Situation. Key institutional barriers to integrated management will have been
overcome. Broad awareness about the state of the basin will have been raised at the national, regional
and international levels. This will draw attention of decision makers to the critical planning needs and
guarantee political and financial support for SAP implementation. OKACOM will have been
strengthened as both a political forum for involving key high level government officials to negotiate the
sharing of transboundary water and as an initiator of policy shifts at national and regional level.
Specifically there will be in place; mechanisms for consultation, communication, and participation in all
three riparian countries; an updateable knowledge base; policy initiatives launched and cross sectoral
integration mechanisms established; a joint programme for management of the basin; natural resource
management capacity built at regional and national level; and finance mobilised for SAP implementation
and beyond. The project will have demonstrated new collaborative approaches to transboundary water
management that are based on open understanding and consensus while also fulfilling the countries'
stated desires to understand and protect the basin in order to meet a potentially divergent range of
national interests including disparate levels of socio-economic development, nature conservation, and
eco-tourism. Explicit links between this International Waters project and the GEF's bio-diversity focal
area are anticipated and will be articulated in the SAP. This is particularly the case in Botswana where
natural resource conservation activities will be promoted on the basis of the water resource management
analysis carried out in the project.

47. Project Beneficiaries. The protection of a key freshwater body with extremely high instrumental
value will yield a range of benefits at both the global and national levels-- according direct, indirect
use, option, and existence values. The global community will benefit from the protection of a unique
hydrological system and its related aquatic ecosystems, that would otherwise be threatened, and for
which no equivalents exist. At the national and local levels, the project would maintain the option for
basin communities to use the freshwater base and associated biological diversity for consumptive and
productive purposes. Other beneficiaries include communities, government personnel and staff from

---

13



local NGOs working in the project sites who would benefit from additional training and exposure to
innovative basin management and conservation approaches.

IV. RISKS AND SUSTAINABILITY
RISKS.

48. The long-term success of this initiative depends primarily on the political willingness of the
riparian countries to co-operate not only on regional transboundary issues, but also to collaborate
positively across the linked sectors within their national administrations and socio-economic systems.
The success of OKACOM as the co-ordinating agency is the key to maintaining the initiative and any
undermining of OKACOM's position as the prime technical adviser to all three governments on the
ORB will pose a serious risk to SAP implementation. This political will is necessary to the creation of
specific institutional arrangements and strategies that are consistent with the SAP process. An ongoing
concern is the ability of OKACOM and related institutions in the riparian countries to implement
progressive natural resource policy. While OKACOM has a mandate as an inclusive body, sectoral
interests may crowd out key partners across environmental, agricultural, financial and planning
departments and agencies. To prevent this from occurring, the consultation and communication
components have been designed to address this risk from the inception of the project.

49. The current uncertainty over peace in Angola and the Democratic Republic of Congo poses
risks to project implementation if unrest in the region spills over into the ORB. In particular, if access to
the catchments and the risks of land-mines inhibit direct data collection more emphasis will be placed on
remote sensing and detailed interpretation of multi-temporal imagery. While a period of unrest may
disrupt consultations, water will remain a key issue for any government. In the case of major unrest
which threatens project implementation, UNDP will suspend operations in accordance with standard
UNDP rules and procedures. The risk of international water disputes through lack of communication
and understanding over water as the ORB is progressively re-settled and developed in Angola is
minimised by the effective dialogue that takes place within OKACOM. Generally there is strong
interest in co-operation and co-ordination among the three countries, particularly since all countries
belong to SADC and OKACOM and can be expected to respect the SADC Protocol on Shared Water
Resources.

50. Time is of the essence in this initiative. SAP formulation needs to proceed as quickly as possible to
establish a meaningful framework for riparian co-operation and avoid unilateral action on the basis of
drought conditions or other national imperatives such as dealing with the emergency re-settlement of
refugees in the ORB. Prevention on this basis will be much cheaper than cure and needs to occur while
close co-operation amongst the riparians can be assured.
SUSTAINABILITY

51. Government Commitment. The governments of the three countries of the Okavango have
already demonstrated strong commitment to strengthening international co-operation in the regional
basin management and this commitment has been confirmed among other things by their readiness to
appoint OBSC as the co-ordinator of the PDF work on the TDA. The draft TDA further illustrates the
governments' commitment to the development of enhanced transboundary environmental co-operation
under the GEF International Waters Operational Strategy. This project brief has incorporated the
comments and suggestions from the governments, scientific institutions, NGO's, and other donors and
UN system agencies, gathered in several regional consultative meetings, and has received the official
endorsement of all participating countries and OKACOM (Annex IX).

52. Economic Sustainability. The project is designed to identify all use and non-use values of the
ORB within the national and regional economic frameworks. This will establish the economic rationale
for investing in integrated management of the ORB, conserving the stock of environmental assets, and
optimising the flow of benefits from the basin's natural resource base. Positive and negative
externalities associated with a set of water resource development options in the ORB will be evaluated
and policy initiatives put in place to minimise transaction costs and work toward internalisation of
negative externalities

---

14




53. Institutional Sustainability. The project is designed specifically to mainstream hydro-
environmental and ecological concerns for the ORB within processes of decision making occurring
within communities, local government, interest groups and NGOs operating within the basin - the
stewards of the basin's landscapes. It will do this in two ways. First by driving policy changes and
institutional adaptation at national levels and second, by active engagement of the basin stewards in
research, analysis, and monitoring of programme components. Schools, colleges, universities, and
research institutions will be key partners in building this capacity. In addition, the penetration of these
sustainability concerns into national policies, regulatory, and institutional frameworks will be driven by
the engagement of national professional interest groups in carrying out awareness raising, research,
analysis, and monitoring. OKACOM will promote this penetration by use of their communication and
networking capabilities, a feature of the PDF work that had positive resonance within the basin
communities.

54. Financial Sustainability. The promotion of the SAP and solicitation of government, investor,
and donor resources by OKACOM and the IAs will provide supplementary funding for SAP
formulation and implementation. Overheads of the operational units at regional and national level will
be kept low - they will rely on networking of dedicated professionals and interest groups rather than a
permanent basin secretariat - and will present attractive donor opportunities. Investment opportunities
will be identified and prepared during SAP formulation with the World Bank taking a lead role in co-
ordinating and organising key donor conferences and stimulating national investment. The SAP and
subsequent joint management initiatives will be designed to be self-financing. Specifically, under output
C3 the project will ensure that the financing mechanisms established for the SAP will continue beyond
the life of SAP implementation through the incorporation of SAP components in national development
plans and external assistance projects.

V. STAKEHOLDER PARTICIPATION AND IMPLEMENTATION ARRANGEMENTS
STAKEHOLDER COMMITMENT AND PARTICIPATION

55. Environmental issues are a high societal priority in the region. Many public organisations as
well as individual scientific and research institutions and consultants have invested their resources in
understanding and analysing the Okavango basin. The project will involve these various stakeholders in
project monitoring, evaluation, and implementation through numerous consultations and workshops and
improved Internet access among stakeholders. Many of these stakeholders will have an important role to
play in implementation.
56. Recent project proposals for developments in both Namibia and Botswana have highlighted the
need for the most complete public/stakeholder consultation and participation possible. The consultation
process set up during the PDF work has provided a clear message, that education, participation and
consultation can go hand in hand. Both community members and leaders expressed the opinion that
they would not be able to participate in the consultative process if they did not have a good grasp of all
the issues. Schools, colleges, research institutions, and NGOs in the basin have expressed a high degree
of interest in an Okavango initiative and the project makes provision for a serious education, training,
and information effort to be included. A summary of the proposed public involvement plan is presented
in Annex VIII.

---

15



PROJECT IMPLEMENTATION AND INSTITUTIONAL FRAMEWORK

57. Institutional Framework. The institutional framework for the project is set out below.
OKACOM derives its authority from the respective cabinets of the riparian countries. The Governments
of Angola, Botswana, and Namibia have nominated national experts as country delegates to OKACOM.
These delegates are drawn from the respective Departments/Directorates for Water Affairs, Ministries
of Environment, Planning, and Attorney General's Offices. OBSC is responsible for overseeing the day
to day implementation of studies related to the ORB.

General Framework for project implementation



Cabinet(Angola)
Cabinet(Botswana)
Cabinet(Namibia)






OKACOM/GEF IAs (PSC)

PMC

OBSC



PMU



NCU
NCU (Botswana)
NCU (Namibia)

(Angola)

58. Project Implementation. The illustration above and Figure 2 of Annex V illustrates the project
implementation arrangements. The Project Steering Committee (PSC), comprising OKACOM and the
involved GEF IAs, has overall responsibility for the project and will provide policy, management and
financial guidance. The PSC will meet annually and is expected to delegate tasks and resources to the
respective implementing agencies where their comparative advantage is greatest. The Project
Management Committee (PMC) will comprise OBSC, the PMU, the NCUs, ministerial representatives
involved in the management of the ORB together with involved NGOs, research institutions and civil
groups. The PMC will provide active project supervision and co-ordination and will be instrumental in
feeding back policy initiatives and identifying investment opportunities in the SAP. PMC meetings will
occur regularly and will rotate through all three countries. Regional components will be executed
through the support of FAO. National components will be executed through national execution
modalities with the support of UNDP country offices in co-operation with the FAO. The FAO has been
active in land and water initiatives in Southern Africa and a key expert resource of the FAO is familiar
with and was key to PDF-B execution and preparation of this Project Brief. Thus the FAO has a
considerable comparative advantage as the UN Agency best positioned to render assistance to the
participating countries. OKACOM will also continue in its role as the inter-governmental mechanism
for co-ordination, delegating specific tasks to OBSC and linking high-level policy and decision-makers
from the three Okavango basin countries.

59. The Project Management Unit, (PMU) will be appointed by OKACOM and will work under the
guidance of OBSC to oversee day to day implementation of project activities and play the primary role
in ensuring co-ordination of the project with other relevant activities in the region. A core team
comprising a programme manager and national programme co-ordinators will form the project executive
office and will be responsible for the detailed formulation of the SAP bringing in key specialist services
at the regional level as required. The composition of this core team will draw the best possible expertise
from the riparian countries in water resources; natural resource management; environmental specialists
(with emphasis on wetlands); and social and community development. Specific line ministry co-
ordination and multi-disciplinary collaboration, including national NGOs will be undertaken at country
level by the National Co-ordination Units (NCUs) , the functional equivalents of inter-ministerial

---

16



committees. The national executing agencies under UNDP co-operation agreements will be; the Ministry
of Energy and Water in Angola; the Ministry of Mines, Energy and Water Affairs in Botswana; and the
Ministry of Agriculture, Water and Rural Development in Namibia.

60. Funding will be established and administered jointly by the PMU and the NCUs. All project
funds, including those of GEF, will be listed together with their respective conditionalities and financial
reporting requirements. Each component of the funding will be subject to individual reporting
requirements but will be matched with SAP activities to provide a transparent map of current
programme expenditure flows.

VI. INCREMENTAL COSTS AND PROJECT FINANCING

61. Incremental Costs. Total incremental costs for Stage I are calculated at US$7,420,500 of which
the GEF contribution is US$4,995,500 and co-financing is US$2,425,000, based on government
contributions, anticipated Implementing Agency inputs and expressions of interest received from NGOs
and bilateral donors (does not include PDF and support costs). The incremental costs attached to this
GEF project are linked principally to overcoming barriers to joint management of the basin, completion
of a TDA and the subsequent development and negotiation of the SAP. Overcoming these barriers has
specific capacity building implications and associated costs that lie beyond the domestic baselines of the
riparian countries. Annex 1 presents a summary of the domestic and global benefits and costs together
with a matrix of individual country baseline and alternative costs associated with each project objective.

62. Project Financing. The financing of the project within the context of the SAP will be ensured by
the commitment of all three governments and bi-lateral and multilateral donors who have expressed an
interest in supporting OKACOM and the SAP process. The summary of costs presented in Table 1 are
indicative and are based on 1998 proforma costs and the experience gained in executing the TDA
studies during the PDF phase. Access to the Angolan portion of the basin is limited by landmines and
made difficult by the remoteness of the area. In addition, operating costs in Angola are much higher than
in either Botswana or Namibia. The detailed breakdown of sub-activities, their justification, terms of
reference and associated budgets will be presented in the project documents.

---

17



Table 1. Summary GEF Project Financing (US$)
Project Components/Outputs
TOTAL
Co-financing
GEF
Component A: Joint Management



Output A1: Expertise
1,234,900
525,000
709,900
Output A2: Stakeholder Participation
1,050,600
200,000
850,600
Output A3: Policy initiatives
147,000
100,000
47,000
Output A4: Monitoring and Evaluation
165,000
0
165,000
Total: A.
2,597,500
825,000
1,772,500
Component B: Completed TDA



Output B1: Basin water resource analysis
1,951,000
1,400,000
551,000
Output B2: Socio-economic analysis
730,000
200,000
530,000
Output B3: Super-imposed frameworks
96,000
0
96,000
Output B4: Environmental assets
120,000
0
120,000
Output B5: Alternatives

0
510,000
510,000
Output B6: Water management models
130,000
0
130,000
Output B7: Criteria
92,000
0
92,000
Total B.
3,629,000
1,600,000
2,029,000
Component C: SAP Formulation



Output C1: Technical & policy implications of options
114,000
0
114,000
Output C2: Joint management plan negotiated
425,000
0
425,000
Output C3: Commitments defined
140,000
0
140,000
Output C4: SAP document produced
250,000
0
250,000
Output C5: SAP finance mobilised
265,000
0
265,000
Total C.
1,194,000
0
1,194,000




TOTALS
7,420,500
2,425,000
4,995,500
Project Support Services
395,500

395,500
PDF (Block A and B)
374,000

374,000
Total Project Financing
8,190,000

5,765,000
VII. MONITORING, EVALUATION AND LESSONS LEARNED

63. Monitoring and evaluation Project objectives, outputs and emerging issues will be regularly
reviewed and evaluated at annual meetings of the PSC and the PMC. The project will be subject to the
various evaluation and review mechanisms of UNDP, including Annual Programme Review (APR), Tri-
partite Review (TPR) and an external Evaluation and Final Report prior to the termination of the
project. The project will also participate in the annual Project Implementation Review (PIR) exercise of
the GEF.

64. Working in concert with appropriate scientific and technical institutions and government
agencies in the region, in line with emerging GEF policies the project will develop a set of 'indicators' to
track the short and long-term impacts of this and other related projects in the ORB. Key indicators will
include process (e.g. policy, legal, institutional, etc. reforms), stress reduction (e.g. reduced pollutant
loads or per capita water demands, etc.), and environmental status (e.g. cleaner waters, restored
habitats, etc.).

65. Lessons learned and technical reviews. The development of this project has benefited
substantially from a detailed review of previous environmental studies carried out in Botswana and
Namibia. This includes approaches to community and NGO involvement, public awareness and
consultation activities and the TDA process, and from the direct involvement of local specialists active
in basin research. The STAP technical review has strengthened the economic rationale for the project by
pointing to allocation issues and the need to evaluate tradeoffs at an early stage in the development of
the SAP. This consideration will refine the types of data and resulting scenario analyses that are carried
out. In addition, the project will be involved from the start in the new GEF IW LEARN (Learning
Exchange and Resource Network) programme.

---

18

---

19



Annexes


Annex I: Incremental Cost Matrix.
Annex II: Logical Framework Matrix
Annex III: STAP Roster Technical review

________________________________________________________________________

List of Optional Annexes

The annexes listed below are not required as part of the standardised GEF project brief. However, they
are available on file for reviewers seeking additional background information.

Annexe IV: Contains the map of the Okavango River Basin, the topographic limit of the basin and the
principle towns and international boundaries.

Annex V: Contains Figures 1 (Strategic Approach to Project Design) and 2 (Project Implementation
Arrangements) referred to in the Brief text.

Annex VI: Provides a Table of Contents and a Summary of the draft Transboundary Diagnostic
Analysis together with the table of contents of the two part report.

Annex VII: Provides a listing of the national expert group and the titles of their respective specialist
reports.

Annex VIII: Provides a summary of the public involvement plan for the project.

Annex IX: Contains copies of GEF Operational Focal Point endorsement letters.

Annex X: OKACOM Agreement

---

1



Annex I: Incremental Cost Analysis

1. Regional Context and Broad Development Goals

1.1 The region has given a high priority to both water resource development and environmental
concerns. UNDP and the World Bank are already funding water resource management reviews in
Angola and Namibia. All three countries are participating in a SADC water roundtable initiative. Both
Namibia and Botswana have committed funds to environmental assessments of the basin in so far as
national priorities have been addressed.

1.2 The socio-economic pressures on the region's limited water resource base have driven high
levels of investment in water infrastructure, particularly in Botswana and Namibia. Over the past ten
years, these water development initiatives have been increasingly subject to economic and
environmental scrutiny both from domestic interest groups and international institutions.

2. Global Environmental Objective:

2.1 The Okavango River Basin has unique qualities in terms of its geomorphology, hydrology, and
biodiversity, qualities which remain relatively pristine with little discernible human impact on the
hydrology and aquatic ecology of the basin. The significance of the basin has been highlighted by the
international interest in the hydro-ecological state of the Delta and the bio-diversity it supports. In
addition, by virtue of its remoteness and the continuing political instability, the Angolan portion of the
basin remains one of the least developed regions in the savannah belt that traverses Angola, the
Republic of Congo and Zambia. The complex arrangement of linear tributaries, dambos and broad
seepage zones in the upper and middle Cuito and Cubango sub-basins make road access difficult and it
is probable that this relatively undisturbed environment exhibits largely unmodified hydrological
responses. The incipient degradation under the baseline conditions will threaten aquatic flora and their
associate fauna both in the source sub-basins in Angola and the Delta in Botswana.

2.2 If left unchecked, the direct and indirect threats to this international water body will result in the
breakdown of the hydrological and ecological integrity causing the global community to forfeit sizeable
conservation benefits (including direct and indirect use values, and existence and option values). The
threats are real and imminent ­ as evidenced by the recent unilateral initiative by Namibia to abstract
water from the system under emergency drought conditions. This was avoided following a period of
rainfall that re-established reservoir levels in the central area of the country. It is expected that the
opportunity to protect this relatively pristine system will not appear again and that the costs of remedial
action will exceed current conservation costs by several orders of magnitude.

3. Baseline

3.1 The scope of the baseline is set spatially by the natural limits of the ORB and the locus of
external demands upon the basin's resources, thematically by the project objectives (joint management,
water resource analysis and planning/programming), and temporally by the life of the project (3 years).
The sectoral activities in the basin that involve direct water abstraction and disposal from and to the
Okavango watercourses are distinguished from activities that relate to mechanisms for joint
management, water resource analysis for the ORB, and the programming and planning of water related
investments in the ORB. A proportion of these non-operational activities carried out by each country
will be diverted into the alternative.

i. Operational Water Service Management: In this analysis, this is taken to comprise all water
supply, sanitation, irrigation and watershed management activities that occur in the basin. These are
established in published national development agenda and where information is not available on the
planned investments made in the basin, estimates have been based on the basis of population
distributions. Current levels of inward investment and domestic productivity in the Angolan portion of
the basin cannot be assessed with any degree of accuracy at the moment since access to the Cuando
Cubango Province is limited and the legacy of the recent civil war inhibits provincial development.
Since independence, there has been no appreciable inward investment to the basin. Prior to independence
in 1975, small scale irrigation activity was largely privately managed and only two small scale hydro-
electric schemes in Menonge and Cuvango were put into operation. Following 22 years of war and some
5 years of recent drought, the Province has been de-populated. Under a recent provincial planning

---

2



exercise for a re-habilitation programme, the overall budget for Cuando Cubango Province is US$
27,170,062 based on 1995 prices. A sectoral breakdown apportions agriculture 31%, rural trade 17%,
roads 15% and education 11%, which represents 74% of the total programme. In 1997 World Bank has
also proposed a US$40,000,000 Agricultural Sector Investment Programme to assist smallholder and
commercial farmers through improvements in government services, an improved policy framework and
the provision of funds for rural infrastructure. The World Bank is currently preparing a national water
sector development project for the period 1999-2001. It is anticipated that this will focus on priority
areas in the north and west of the country. The development plans for Cuando Cubango Province are
being formulated, but given the small population of the basin, a small level of investment in water
services, water supply and sanitation and small scale irrigation is anticipated. In Botswana,
development priorities for the Okavango Delta region are aimed at a disparate range of development
programmes, nature conservation and eco-tourism. It is important to note that tourism currently
accounts for 3% of GDP in Botswana as a whole, but the relative contribution from tourism related
services for the Okavango Delta is much higher. The Government of Botswana is committed to the
implementation of the 8th National Development Plan for the period 1997/8-2002/3 which anticipates a
Major Village Water/Sanitation Development project costed at $US 9,000,000. In Namibia a policy of
devolving planning and budgetary functions to regional authorities has been initiated. A recent World
Bank poverty alleviation study has recommended the Okavango freshwater resources be utilised for
small scale irrigation. The First National Development Plan specifies ongoing work in rural water
supply and sanitation for the period 1996-2000. Bulk water transfer investments are costed at
$10,000,0000. Provision for feasibility studies for the construction of an emergency pipeline to the
Okavango has been set at approximately US$2,000,000. The preliminary feasibility work carried out in
1997 amounted to approximately $US 1,500,00. Upgrading of Rundu town water scheme over the
project period approximately US$3,500,00.

ii. Mechanisms for Joint Management: The national resources devoted to joint management of
the ORB are extremely limited, comprising government staff time dedicated to servicing OKACOM
meetings. In the absence of GEF support, the level of expenditure on joint management is anticipated to
remain at this level which would amount to no more than $100,000 over the life of the project. The PDF
A and B contributions have amounted to $374,000 over the past three years. However, of significance is
the fact that since 1997, all three countries are participating in the SADC water roundtable process
supported by UNDP. Direct support from UNDP for all three countries is estimated at US$200,000.
National activities in policy development are variable. In Angola, the World Bank will be focussing on
water policy and institutional development (~US$1,400,000) and transboundary water resources
(~US$460,000). The support may also include a pilot study for the Cunene basin (~US$2,400,000)
which is also shared with Namibia. However, since the Cubango is not a priority basin for the country,
it is not anticipated that any of these resources will dedicated to the ORB. In its 8th National
Development Plan Botswana has budgeted for International Water Planning and Development of which
some 30% (~$US 130,000) is earmarked for the Okavango basin). Namibia is undertaking a more
substantive policy and institutional review of its water sector in the light of its recent policy directive on
decentralisation and a need to address increasing demands for water services. A World
Bank/GTZ/UNDP supported Water Resources Management Review amounting to $US 1,100,000 was
launched in early 1998. Approximately $250,000 of this will address transboundary river basins where
Namibia is forced to negotiate with neighbours. It is anticipated that some $75,000 of this budget will
be directly related to transboundary issues for the Okavango

iii. Basin Analysis. Interventions in integrated natural resource analysis within the basin and
within the riparian countries are limited. Most interventions are of a sectoral nature and relate to water
supply and sanitation, agriculture, and tourism. In Angola the World Bank and the Norwegian
Government are co-operating on a set of national water resource management proposals in areas where
the respective comparative advantage is greatest. Norwegian assistance is estimated at US$2,000,000
and is committed to the upgrading of key hydrometric installations in northern and coastal provinces and
undertaking a national water resources assessment. It is anticipated that the thrust of this work will
concentrate on areas other than the Cubango and Cuito sub-basins. In Botswana the 8th National
Development Plan includes; Hydrological Support including updating of the Okavango forecasting
model (~$US 182,000); and Groundwater Studies and Protection (~ $US 200,000). The University of
Botswana has obtained private sector support for a research station in the Okavango Delta estimated at
$US 500,000 over the life of the project. Other relevant activities include a Finnish Government assisted
State of the Environment Report on Water in Botswana ($95,000) and research on demand management
assisted by IUCN ($25,000). In Namibia, relevant activities include a Finnish Government assisted

---

3



State of the Environment Report on Water in Namibia ($95,000) and research on demand management
assisted by IUCN ($25,000). The Directorate of Environmental Affairs are also carrying out a review
of pollution control and waste management legislation and research into natural resource accounting.
Future work of the Department of Water Affairs will include the compilation of a national
hydrogeological map and the consolidation of a groundwater database. This work may be expected to
complement the ongoing work in the Department of Agriculture in the use of satellite imagery to
monitor national agricultural and rangeland conditions.

iv. Programmatic formulation and finance. In the baseline, there is no provision for the
formulation and programming of resources to address joint management. These activities will only
occur in the alternative once the transboundary diagnostic is completed.

4. GEF Alternative

4.1 Without adoption of the GEF alternative, the riparian countries' ability to develop a joint
management plan for the ORB will be limited. The Alternative will promote radically new approaches
to natural resource management in the ORB. These will be based upon thorough consultation, analysis
and cross-sectoral policy and programmatic integration. The following interventions are proposed;

i. Operational Water Service Management: In the alternative, baseline activities in water
service operations will continue according to national development plans.

ii. Strengthened Mechanisms for Implementation of Joint Management: Current institutional
arrangements at the national and regional levels cannot adequately address transboundary management
of the ORB. GEF funds will be used to identify and enhance existing mechanisms and develop new
mechanisms for integrating natural resource planning across sectors and jurisdictions throughout the
ORB. Strategic alliances with key partner government agencies, communities, NGOs, and the private
sector will be sought and sustained during SAP development so that SAP implementation can proceed
unimpeded by bottlenecks that would otherwise occur, particularly with newly established institutional
arrangements at local levels. The Project Management Unit and the respective National Co-ordination
Units will be instrumental in driving the necessary policy and institutional initiatives to implement the
SAP. Awareness Raising, Consultation and Communication is necessary to enlist broad support for
an Okavango River Basin initiative and GEF funding will be used to ensure that the PMU can produce
and broadcast TDA and SAP information extensively in the ORB region and internationally. In addition
GEF funding will be used to enhance the relatively under-resourced stakeholder fora in the ORB region.
National and district level fora will be established by the PMU through the NCU in each riparian
country. Training will be an important function of the PMU which needs to service specific training
needs in progressive natural resource management and basin planning at regional and national levels.
Without this pro-active approach to the training of artisans, technicians, community animators and
environmental and socio-economic professionals in the region, the desired policy responses and
institutional innovations will not be implementable. Provision is also made for the development of skills
and leveraging of finance to implement the SAP.

iii. Completed Transboundary Diagnostic Analysis. GEF funding will be used here to
specifically fill critical natural resource information gaps and bring the refined knowledge of the hydro-
environmental socio-economic systems onto a platform where transboundary externalities can be
examined and resolved. This is not possible under current baseline where national interests determine
research and analysis activities and where basin-wide information does not exist or is not accessible.
The knowledge embedded in the finalised TDA will underpin the design of the SAP and substantively
service the monitoring and reporting needs during SAP implementation. Most importantly, the process
of completing the TDA will inform policies and initiatives to be launched in preparation for SAP
implementation.

iv. Strategic Action Programme Formulation. The design of the SAP together with the
specification of the necessary institutional and financial arrangements will involve a long period of
careful negotiation between the riparian countries and development partners. This process is not
addressed in the baseline where national planning priorities are addressed.

5. Scope of Analysis

---

4



5.1 The system boundary of the project is defined in two ways. First, by the hydrologically active
portions of the ORB in Angola, Botswana and Namibia where intra-basin demands for water and
associated natural resources are centred. Second, by specific links to centres of demand for water
outside the basin. The topographic boundary of the basin is crucial in Angola, but is less relevant in
terms of transboundary water resources in Botswana and Namibia

5.2 The thematic limits for this analysis are set by the project objectives to prepare for the
implementation of a programme of joint management through strengthened institutional mechanisms,
transboundary analysis and SAP formulation. Requisite institutional strengthening across the related
sectors is of the essence. The design of the proposed project has taken into full consideration its
complementarity with other existing projects in the region, particularly the World Bank and UNDP
funded water reviews in Angola and Namibia.

5.3 The temporal boundaries for this analysis are set by the anticipated period of preparation for
implementation and SAP formulation, a three year period. The project benefits will clearly continue to
accrue beyond this time boundary of both the first stage defined by the project and the second stage of
SAP implementation

5.4 Sunk costs, incurred prior to 1998 have been omitted from the analysis. The baseline captures
investments within the ORB and specific elements associated with extra-basin demands for water. The
Alternative captures the additional actions required to secure project objectives within the system
boundary. There will be substantial leveraging of domestic baseline costs that address joint management
and basin analysis towards the globally preferred alternative.

6. Costs and the Incremental Cost Matrix:

6.1 Baseline expenditures amount to US$31,050,000; the Alternative has been costed at
US$38,220,500. The GEF would provide US$ 4,995,500 in incremental cost financing, approximately
13% of the total cost of implementing the Alternative1. This funding is targeted specifically at over-
coming barriers by defraying the transaction costs associated the joint management of transboundary
waters. Co-financing has been secured from the riparian governments, UNDP and the World Bank for
institutional strengthening aspects and firm expressions of support to the SAP process have been given
by national and international NGOs and bilateral donors. Total co-financing amounts to
US$2,425,000..

6.2 In the longer term, removal of barriers to sustainable use will widen the menu of development
options available at a local level. But in the short term, the generation of the SAP will result in mainly
non-pecuniary benefits. For the riparian countries, tangible costs exceed tangible benefits in the
intermediate term, providing little incentive to undertake this initiative without external assistance.
0
1 This sum is in addition to the US$ 374,000 allocated in PDF A and B funding.

---

5

Incremental Cost Assessment: SAP Development for the Okavango River Basin
Costs/Benefit
Baseline (B)
Alternative (A)
Increment (A-B)
Domestic
1. Basin degradation accelerates as socio-
1. Basin degradation attenuated
1. Transboundary externalities
Benefits
economic demands increase pressure on
2. Sectoral competition ameliorated
removed

land and water resources in the respective 3. Consultation and participation
2. Sectoral activities co-ordinated

districts linked to the ORB.
mechanisms for engendering public
and optimised

2. Sectoral competition for water increases
participation in environmental planning
3. Basin stakeholders more
and locally sustainable development
and management expanded and better
responsive to environmental
opportunities through natural resource
informed.
protection measures
management lost
4. Basin frameworks
4. Completion of national analysis
3. Limited scope for public involvement in
5. Institutional and human capacity
5. Strengthened national capacities in
environmental management of the river
strengthened in the arena of integrated
international basin negotiation
system. Basin stakeholders poorly
land and water body management

engaged with environmental concerns at


local and district/provincial level

4. National data collection , processing, and

analysis limited to surface water resource
information only
5. National capacities to effect integrated
land and water body management
measures limited.
Global/Region
1. Globally significant river basin
1. Globally significant basin protected
1. A Strategic Action Programme is
al Benefit
experiences degradation in water
Identify strategic measures to address
prepared to address basin

quantity, quality and sediment regime
root causes of transboundary
degradation and is endorsed by all
along its length, leading to loss of aquatic
degradation of the Okavango River
three riparian countries.
habitats and associated bio-diversity.
system
2. Agreements on sharing of benefits
2. International competition for water
2. International competition for water
concluded
exacerbated. Sustainable development
ameliorated
3. Process of consultation ,
opportunities for the basin as a whole
3. Public participation in Okavango River
communication, knowledge
foregone
basin management increases the sense
building and natural resource
3. No basin-wide forum for discussion and
of ownership of civil society over
integration initiated at basin level
consultation Lack of awareness about
management and rehabilitation efforts
and active fora for basin
transboundary issues
4. Wide civil society support in the three
stakeholders established
4. Lack of regional communication and co-
riparian countries facilitates the
4. Improve linkages between regional
ordination among and between Okavango
planning and implementation of
stakeholders through meetings,
River basin stakeholders/civil society
management measures (enabling
Internet and print
and limited opportunities to develop
transboundary issues to be addressed).
communications. Raise awareness
negotiation skills
5. Basin-wide synthesis made possible
of the findings of the
5. International negotiation limited by
6. Improved understanding natural
Transboundary Analysis and
infrequent technical meetings and lack of
resource management and protection
sensitise stakeholders to the need
detailed hydro-environmental information
needs at basin level enabling follow-up
for regional action to mitigate
for basin as a whole.
action at national and regional levels.
basin degradation
6. No basin-wide hydro-environmental or
7. Improved regional capacity for data
5. Synoptic view of basin
socio-economic synthesis possible.
collection, integration, analysis and use
established, hydro-environmental

---

6

Costs/Benefit
Baseline (B)
Alternative (A)
Increment (A-B)
socio-economic synthesis possible.
collection, integration, analysis and use
established, hydro-environmental
Limited understanding of basin-wide
in decision-making.
and socio-economic data complete
implications of resource use and
8. Adaptive and innovative river basin
the regional picture,
protection, (including) biodiversity hot
institution created
transboundary knowledge base
spots and protected area needs. Limited
9. Transboundary mechanisms established
significantly enhanced.
knowledge of cross-border linkages
10. ORB countries committed to a co-
6. Clear spatial frameworks for
7. ORB environmental data dispersed;
ordinated basin-wide approach.
natural processes and socio-
collection and utilisation of Okavango
11. Identification of innovative financing
economic dynamics established
data inadequate
mechanisms for basin-wide
7. Furnish structured knowledge
8. OKACOM cannot act as a substantive
management.
base for international discussion,
expert office.

negotiation and participation.
9. Lack of specific operational regional
8. OKACOM strengthened and
mechanisms to co-ordinate and implement
transboundary policy initiatives
joint action to manage transboundary
launched
river basins. Policy/legal/economic
9. institutional mechanisms to drive
framework for co-ordinating and
and co-ordinate basin-wide action.
enforcing river management is
Improve understanding of policy/
inadequate.
legal/ economic mechanisms
10. Lack of integrated strategic approach to
required for integrated sustainable
Okavango River basin management and
river basin management
protection at regional scale. Okavango
10. SAP process adopted in ORB
River basin activities not integrated into
region
basin-wide approach .
11. Financial sustainability of regional
11. Lack of capacity to finance the
waterbody management measures
transactions costs of regional co-
and institutions assured.
operation.

---

7


Purpose (Component)/Output
Baseline (B) Alternative (A) Increment (A-B)

A. STRENGTHENED MECHANISMS FOR JOINT MANAGEMENT OF THE



ORB
A1 Expertise Strengthened
0
1,234,900
709,900(GEF)
525,000(non-GEF)
A2 Stakeholder Participation
100,000
1,150,600
850,600 (GEF)
200,000 (non GEF)
A3 Policy, legal, institutional and human resource initiatives
100,000
247,000
47,000 (GEF)
100,000 (non-GEF)
A4 Monitoring and Evaluation
0
165,000
165,000 (GEF)

B. COMPLETED TRANSBOUNDARY DIAGNOSTIC ANALYSIS
0
0

B1 Water Resources Assessment and Analysis
1,150,000
3,101,000
551,000 (GEF)
1,400,000 (non-GEF)
B2 Socio-economic analysis completed to establish current and future patterns of water
200,000
930,000
530,000(GEF)
resource use and levels of demand
200,000 (non-GEF)
B3 Super-imposed hydro-environment and socio-economic frameworks to define
0
96,000
96,000(GEF)
environmental system limits and parameters
B4 Environmental assets of the ORB described and valued to structure water resource
0
120,000
120,000(GEF)
management models
B5 Comprehensive set water of resource alternatives for the ORB assessed to structure
0
510,000
510,000(GEF)
model scenarios
B6 Water resource development and management models used to produce water resource
0
130,000
130,000(GEF)
management options
B7 A set of guidelines/criteria to guide SAP development and implementation
0
92,000
92,000(GEF)

C. STRATEGIC ACTION PROGRAMME (SAP) FORMULATION
0
0

C1 Technical and policy implications of water resources management options evaluated
0
114,000
114,000(GEF)
C2 Joint Management Plan for water sector investments negotiated and designed amongst
29,500,000
29,925,000
425,000(GEF)
riparians
C3 Policy, legal, institutional and human resource commitments necessary for SAP
0
140,000
140,000(GEF)
implementation defined
C4 SAP document produced and endorsed
0
250,000
250,000(GEF)
C5 SAP finance mobilised in preparation for implementation
0
265,000
265,000(GEF)
Total
31,050,000
38,470,500
7,420,500
Project Support Services


395,500
PDF


374,000
Total Project Cost


8,190,000

---

8

Sources of Baseline and Co-financing
Output/Activity
Baseline
Co Finance
A1 Expertise Strengthened

Govts A/B/N staff and logistical support to
OKACOM related activities(1999-2001)
325,000
UNDP support 1999 (N)
100,000
World Bank support 1999-2000 (A/N)
100,000
A2 Stakeholder Participation
GoN Decentralisation Programme (1999-2000)100,000
NGO support 1999(B)
50,000
NGO support 1999 (N)
50,000
UNDP support 1999-2001 (N)
100,000
A3 Policy, legal, institutional and Govts A/B/N water policy initiatives (1999-2001) 100,000
World Bank support 1999-2001 ( A/N)
human resource initiatives
100,000
A4 Monitoring and Evaluation
0
0
COMPONENT A SUBTOTAL
200,000
825,000
B1 Water Resources Assessment and National natural resource info Govts A/N/B: $250,000 (1999-
Staff time and logistical support to
Analysis
2001)
national hydrometric programmes in the
State of the Environment Reports Govts B/N: $200,000
ORB: Govts A/N/B(1999-2001): $
(1999)
1,300,000
Groundwater Studies Govt B/N $200,000 (1999-2001)
World Bank support 1999-20001 A/ N
Okavango Delta Research Station Private (B) $500,000
100,000
(1999-2001)
B2 Socio-economic analysis completed National Social Assessments Govts B/N 200,000
Bilateral support 1999-2001 (N/A)
to establish current and future
200,000
patterns of water resource use and
levels of demand
B3 Super-imposed hydro-environment
0
0
and socio-economic frameworks to
define environmental system limits
and parameters
B4 Environmental assets of the ORB
0
0
described and valued to structure
water resource management models
B5 Comprehensive set water of
0
0
resource alternatives for the ORB
assessed to structure model
scenarios
B6 Water resource development and
0
0
management models used to produce
water resource management options

---

9

B7 A set of guidelines/criteria to guide
0
0
SAP development and
implementation
COMPONENT B TOTAL
1,350,000
1,600,000

---

10


Output/Activity
Baseline
Co Finance
C1 Technical and policy implications of
0
0
water resources management options
evaluated
C2 Joint management plan negotiated
GoA1: 8,000,000 (1999-20001)
0
and designed amongst riparians
GoB2: 9,000,000 (1999-2001)
GoN3: 12,500,000 (1999-2000)
Sub Total $29,500,000
C3 Policy, legal, institutional and
0
0
human resource commitments
necessary for SAP implementation
defined
C4 SAP document produced
0
0
C5 SAP finance mobilised in
0
0
preparation for implementation
COMPONENT C TOTAL
29,500,000
0




GRAND TOTALS
31,050,000
2,425,000

0
1 Estimated expenditures based on proposed multi-lateral assistance to Angola.
2 Estimated expenditures of Department of Water Affairs in the project region.
3 Estimated expenditures of Department of Water Affairs in the project region.

---

1

Annex II. Logical Framework Matrix: SAP Development for the Okavango River Basin
Intervention Logic
Indicators of Performance
Means Of Verification
Assumptions
Development Objective:


No unforeseen threats to the
· To alleviate imminent and long term · Environmental indicators (state-
International NGO and
basin environment that
threats to the linked land and water
response, stress reduction, and source
multilateral organisation
cannot be addressed through
systems of the OR through the joint
vulnerability)
reports
joint management
management of the ORB water · Socio-economic indicators (policy, legal,
National State of
Enhanced basin management
resources and the protection of its
and institutional processes)
Environment Reports
leads to flow of global and
linked aquatic ecosystems (comprising
(Namibia and Botswana)
domestic benefits
all wetlands, fluvial and lacustrine

Political process remains
systems) and their biological diversity.

stable
Baseline planning and
budgeting remains constant
Project Purpose:
· Consultative fora established.
Annual and periodic reports
Countries commit to and
· To strengthen mechanisms for joint · Enabling environment (policy, law
from OKACOM and
donors agree on SAP
management of the ORB.
institutions and human resources)
Ministries of Environment,
Processes to ensure enhanced
· To complete a transboundary analysis
enhanced
Water and Agriculture and
basin management are
to underpin a programme of joint · Public and private sector capacity to
NGOs etc.
sustained beyond life of
management.
implement SAP
Government policy
project
· To facilitate the formulation of an · OKACOM review completed and
statements
Processes can be
implementable SAP to address threats
internalised
Economic planning reports
synchronised by all three
to the basin's linked land and water · Completed TDA
Ministry staffing tables and
riparians
system
· SAP endorsed and financed
private sector inventory
Donor support is locked in

Project Components/Outputs: A. STRENGTHENED MECHANISMS FOR JOINT MANAGEMENT OF THE ORB
Output A1. Expertise within the riparian countries strengthened to drive the necessary inter-governmental and intra-governmental technical and policy
initiatives in water resource planning and management of the ORB
Output A2 Basin-wide mechanisms for stakeholder participation in basin management established and tested to secure consensus and ensure replicability
and taking to scale
Output A3 Policy, legal, institutional and human resource initiatives launched for the ORB and linked to national policy reviews to co-ordinate water
resource management approaches across the basin
Output A4 Monitoring and evaluation procedures for implementation of joint management
B. COMPLETED TRANSBOUNDARY DIAGNOSTIC ANALYSIS
Output B1 Water resource assessment and analysis completed to establish hydro-environmental processes, characteristics and limits
Output B2 Socio-economic analysis completed to establish current and future patterns of water resource use and levels of demand
Output B3 Water resource and socio-economic analysis super-imposed to define environmental system limits and parameters
Output B4 Environmental assets of the ORB described and valued to structure models
Output B5 Comprehensive set water of resource alternatives for the ORB assessed and tested (at pilot level) to structure model scenarios
Output B6 Water resource development and management models used produce water resource management options
Output B7 Economic and environmental criteria produced to guide water resource development and allocation decisions
C. STRATEGIC ACTION PROGRAMME (SAP) FORMULATION
Output C1 Technical and policy implications of water resources management options evaluated
Output C2 integrated management plan negotiated and designed
Output C3 Policy, legal, institutional, human resource and financial arrangements and commitments necessary for SAP implementation defined
Output C4 SAP document produced and endorsed through integration of outputs C1, C2 & C3 in collaborative process with SAP partners

---

2

Output C5 SAP finance mobilised in preparation for implementation through WB led donor conference

---

3


Intervention Logic
Indicators of Performance
Means Of Verification
Assumptions
Output A1. Strengthened expertise to drive · Project expertise transferred and
· PMU progress and · PMU demonstrate its
both inter-governmental and intra-governmental
internalised by riparian countries
expenditure reports and
expertise and influence
technical and policy initiatives in water resource
by end of project
published ORB Forum
partner organisations.
management for the ORB
newsletters
Activities



A1.1 Establish a Project Management Unit
· PMU operational within 3 months PMU publications
(PMU) and National Co-ordination Units
of project inception
(NCUs) to execute all project activities at
· OKACOM review completed and
regional and national level and support
recommendations put to
OKACOM for the duration of the project.
OKACOM meeting in first year of
A1.2 A review of OKACOM mandates and
project
functions
· Expert working groups working
A1.3 Establish regional expert groups on water
within 6 months of project
resource management and environmental
inception
protection
· Training needs identified within 6
A1.4 PMU/NCU to assess and service national
months of project inception
and regional training needs in environmental · project management committee
policy, legislation, basin management and
convened within first three months
communication skills
of project and regular quarterly
A1.5 Create an inter-ministerial project
meetings scheduled
management committee with representation
from key ministries in environment, water,
energy, mining, agriculture, planning and
finance and including Implementing Agencies,
NGOs, research institutions and PMU
representatives .
Output A2 Enhanced basin-wide mechanisms · Okavango River Basin Forum · PMU progress and
for stakeholder participation in water resource
(inc. sub-fora) established at
expenditure reports
planning and management established to secure
district/provincial, national and
Published ORB Forum
consensus.
basin level by end 2000
newsletters
Activities


· The ORB initiative is
A2.1 Consolidate identification of key
Public invitations issued
Published list of stakeholder
embraced at all levels
stakeholders
Public meetings Cubango/Cuito
groups
· Stakeholders responsive to
A2.2 Initiate the consultative process in Angola
Outreach to schools and
Minutes of public meetings
consultation process
A2.3 Extend the consultative process in
institutions
Minutes of NGO sub-forum · Communication channels
Botswana
Outreach to schools and
published
open frequently and are
A2.4 Extend the consultative process in Namibia
institutions
Published minutes and formal
stable and cheap
A2.5 Regional stakeholder consultations: sponsor
NGO sub-forum established
expressions of interest/co-

and organise bi-annual basin NGO sub-forum
Environmental curriculae adopted
financing OKACOM

A2.6 Undertake selected pilots and
in schools
publications produced

demonstrations in each country to test
Pilots projects identified , executed
digitally
replicability and taking to scale during SAP
and evaluated
Hardcopy publications
implementation
publicly available in all three

---

4

implementation
· Web site updated monthly by mid
publicly available in all three
A2.7 Improve web access
1999.
riparian countries
A2.8 Publish and disseminate SAP information
Publications compiled and
Press coverage
A2.9 Create public awareness and environmental
broadcast on quarterly basis from
education campaigns environmental curricula
mid 1999

---

5


Intervention Logic
Indicators of Performance
Means Of Verification
Assumptions
Output A3. Policy, legal, institutional and Policy statements and institutional Endorsed map of function All relevant institutions agree
human resource initiatives launched and linked to reviews carried out in key sector institutional linkages at national to be part of initiative.
national policy reviews to co-ordinate water departments at national level and and basin level published by
resource management approaches across the within OKACOM at regional level
OKACOM
basin
Activities



A3.1 Specify natural resource linkages within
All institutional players identified
national administrations/jurisdictions and
in formally agree to participate in
NGOs associated with the basin boundaries
the ORB initiative in first 12
A3.2 Link the basin initiative to regional
months of project
planning and socio-economic development
National policy initiatives
initiatives and the activities of regional
launched and institutional and
NGOs.
legal arrangements reviewed in all
A3.3 Evaluate current national policy, legal,
three riparian countries in first 24
institutional and human resource
months of project
arrangements in respect to basin co-
Regional co-operation agreements
ordination and joint management
reviewed by end of project
A3.4 Evaluate the use of existing regional and
national legal instruments to facilitate basin
co-ordination and joint management
A3.5 Formulate national and regional policy
initiatives to facilitate basin co-ordination
and joint planning
A3.6 Convene regional expert group meetings
environmental policy, legislation and basin
management and publish findings
A3.7 Prepare draft water management
agreements and protocols for consideration
by OKACOM
Output A4: Monitoring and Evaluation


Procedures for SAP implementation
A1.1 Develop hydro-environmental and


institutional adaptation sustainability
indicators
A1.2 Develop monitoring and evaluation
procedures

---

6


Intervention Logic
Indicators of Performance
Means Of Verification
Assumptions
Output B1. Water resource assessment and
Reports/data collection services Reports published by PMU
Data collection in Angola
analysis completed to establish hydro-
commissioned in first year and
not impeded by peace
environmental processes, characteristics and
completed to terms of reference by
process
limits
end of second year.
Data of sufficient precision


compiled to enable
completion of frameworks
at resolution appropriate for
SAP implementation
Activities



B1.1 Consolidate the network of water resource
Frameworks elaborated on basis
Frameworks published by
specialists in the region
of all spatial and thematic data
OKACOM as a basin atlas
B1.2 Convene technical working groups on
collected under Output B1 by end
hydro-environmental processes
2000
B1.3 Commission a maximum of 5 full cable-
GIS products available by end
way and continuous level river recording
2000
stations throughout the basin to serve as
benchmark stations for SAP implementation
B1.4 Commission level recorders and spot
gauging sites in the upper Angolan sub-
basins
B1.5 Commission targeted reports on specific
hydrological, hydrogeological and hydro-
ecological processes associated with priority
water uses and management options
B1.6 Specific assessment of the amount of water,
its quality and timing of availability through
the system that is needed to sustain the Delta
B1.7 Consolidate national water resource data
and structure for use in basin analysis
B1.8 Produce associated GIS/mapping products
through the use of multi-temporal imagery
B1.9 Design, calibrate and validate distributed
models of surface and groundwater processes
B1.10 Prepare detailed analyses of basin
processes, characteristics and limits
B1.11 Produce working hydro-environmental
framework integrating processes,
characteristics and limits

---

7


Intervention Logic
Indicators of Performance
Means Of Verification
Assumptions
Output B2. Socio-economic analysis completed Reports/data collection services PMU publications
Proxy assumptions
to establish current and future patterns of water commissioned first half year 1 and
resource use and levels of demand
completed to terms of reference by
end year 2
Activities



B2.1 Consolidate the network of social and
economic experts from the region
B2.2 Compile demographic framework for
basin from published sources
B2.3 Commission social surveys in Angola to
assess current future patterns of demand for
raw water
B2.4 Establish basin-wide patterns of demand
B2.5 Assess opportunity cost of water across
the basin
B2.6 Produce working socio-economic
framework to integrate demographic and
demand characteristics
Output B3. Super-imposed hydro-environment Frameworks compiled in GIS product

and socio-economic frameworks to define and analysis initiated mid year 2 and
environmental system limits and parameters
completed by first quarter year 3.
Activities



B3.1 super-impose hydro-environmental and


socio-economic frameworks
B3.2 Identify environmental hot-spots, fixed and
transient
B3.3 Evaluate limits of sustainable use in
space and time
Output B4 Environmental assets of the Valuation of assets entered into basin PMU publications

ORB described and valued to structure water planning model in year 1.
resource management models
Activities



B4.1 Identify environmental entities linked to
water in the ORB
B4.2 Select valuation method(s)
B4.3 Apply valuation method through targeted
surveys
B4.4 Describe and quantify in linkages in
economic terms

---

8


Intervention Logic
Indicators of Performance
Means Of Verification
Assumptions
Output B5 Comprehensive set of water Alternatives assessed in year 1


resource alternatives for the ORB assessed to
structure model scenarios
Activities



B5.1 Identify sources of freshwater in the
region outside the basin that present feasible
alternatives of raw water
B5.2 Identify and examine resource
management opportunities (structural and
non-structural) for the region
B5.3 Form model component as alternative
source or substitute
B5.4 Execute demonstration and pilot studies
in enhanced recharge, conjunctive use and
demand management
Output B6. Water resource development and Models designed and compiled on Databases published (hard and No restrictions on sovereign
management models used to produce water basis of Outputs B1 and B2 by mid soft) and accessible
data
resource management options
year 2 and options produced end year

2
Activities



B6.1 Evaluate environmental and economic
impact of a set of alternative water resource
development and allocation scenarios through
the use of appropriate interactive basin
planning models (WEAP, STELLA®II etc.)
Output B7. Economic and environmental criteria Transparent criteria agreed for all Guidelines published and Knowledge base adequate to
produced to guide water resource development hydro-environmental, ecological and disseminated to stakeholders by develop appropriate and
and allocation decisions.
socio-economic process by end year 2 OKACOM
practical criteria.
Activities



B7.1 Define the design state for the basin

B7.2 Develop environmental criteria for resource

use and guidelines for resource protection

B7.3 Develop socio-economic criteria for

resource allocation
B7.4 Develop guidelines for implementation of
the SAP

---

9


Intervention Logic
Indicators of Performance
Means Of Verification
Assumptions
Output C1 Technical and policy Evaluation complete by first quarter

implications of water resources management year 3
options evaluated


Activities



C1.1 Present model outputs to basin
stakeholders
C1.2 Feedback responses to policy makers
Output C2 Joint management plan Plan finalised by first half year 2
OKACOM negotiations
Bi-lateral relationships stable
negotiated and designed amongst riparians
Activities



C2.1 Prepare plan on basis of stakeholder
consultation
C2.2 Negotiate plan

Output C3 Policy, legal, institutional and Commitments declared third quarter Government statements, cabinet

human resource commitments necessary for SAP year 3.
memoranda
implementation defined
Activities



C3.1 Solicit commitments from governments
C3.2 Confirm commitments
Output C4 SAP document produced SAP formally endorsed by riparian Draft and final SAP published Bi-lateral relationships stable
through integration of outputs C1, C2 & C3 in countries third quarter year 3. by OKACOM
collaborative process with basin stakeholders and Finance plan for SAP implementation
SAP partners (donors, NGOs, research agreed with governments, donors and
institutions., schools etc)
investors

Activities
Published SAP document by

C4.1 Draft a detailed Strategic Action
2003
Programme
3 national and 1 regional SAP
C4.2 Present to national and regional fora
workshops held in 2003
C4.3 Consensus on timetable for implementation
Implementation schedule agreed
end 2003
Output C5 SAP finance mobilised in Finance plan finalised end year 3

Investor confidence maintained.
preparation for implementation
Activities



C5.1 Periodic donor roundtables to focus on SAP
formulation
C5.2 Major donor conference to discuss the final
draft of the SAP and solicit support for
implementation

---

10

---

1



Annex III: STAP Roster Technical Review

1. Overall Impression.

The Okavango River system is of critical global (as well as local) importance. Well organised efforts to
effect a collaborative approach for the protection of the unique ecosystem assets through the efficient use of
the basin's assets should be given highest priority. The present proposal effectively initiates a planning
process that can achieve these goals. The proposal recognises the importance of participation of the riparian
countries and the major stakeholders while insisting on scientifically valid methods of assessment and
planning.

2. Relevance and Priority.

The proposed project is very important to the long run success of the development aspirations of the
riparian countries as well as to the maintenance of one of the world's truly unique ecosystems. The
maintenance of the Okavango Delta is of global importance because of its unique features, but it is also of
immediate importance to the economies of the riparian countries. Tourism related to the Okavango Swamp
and the scientific importance of that ecosystem warrant the development of efficient action plans that will
allow both needed economic developments and environmental protection.

3. Approach.

The recommended approach is appropriate in its main features: networking and communication; completion
of an adequate hydro-environmental and socio-economic framework; and establishment of a viable planning,
co-ordination and enforcement structure. It would be advantageous, however, to develop early in the action
plan process more detailed guidelines that help identify priorities in the gathering of data and the types of
scenarios that truly identify the tradeoffs faced by the riparian countries in deciding on an action plan. Such
guidelines must be derived from an overall list of key issues that constitute the heart of river basin planning:
key water uses and their marginal values from a total value viewpoint; tradeoffs between upstream uses and
downstream uses; tradeoffs between environmental protection and traditional economic activities; equity
considerations among the riparian countries, including plans for compensation of parties that lose in the
interests of the overall system.

The strategic approach noted on p. 8 of the present version consists of three main processes, key
components in the development of the SAP: (1) comprehensive consultation and communication; (2)
enhanced hydro-environmental and socio-economic knowledge base; and (3) progressive natural resource
POLICY FORMULATION, CROSS-SECTORAL INTEGRATION AND COORDINATED
PROGRAMMING. This title for the third component correctly describes what the intended activities are to
be. Elsewhere in the Brief, this set of activities is called "natural resource management in the ORB" (e.g. on
p. 10, p. 16, annex tables) which is misleading. Readability would be improved by using the title given as
(3) just above.

4. Objectives.

The objectives are clearly and correctly stated: a protected river basin and wetland system (p. 8); socio-
economic gains related to the healthy ecosystem; and integrated resource use policies carried out through
adaptive management institutions.

5. Background and Justification.
These are sufficiently provided in the introductory sections of the document.

6. Activities.

(ref. Project Components and Expected Results, p. 13 ff) Output B3 needs greater detail and emphasis, as
well as being scheduled earlier in the project exercise (this was noted earlier). At present, a clear strategy
for guiding the major component activities, especially outputs
B1 and B2, is lacking.

---

2




7. Project Funding.

Proposed levels of funding are said to be based on experience in carrying out the TDA. More detailed
costing would be helpful, especially for the larger items and, particularly, the funds requested for "an
enhanced OKCOM" (p.23).

8. Time Frame.

The time frame seems reasonable.

9. Rationale for GEF Support.

The project appears to be totally congruent with the intent and policies of the GEF insofar as this reviewer
understands them. The GEF can make a very important contribution to global conservation and to the
evolution of new policies that make the tradeoffs between environmental protection and economic-
demographic development as efficient as possible.

10. Added Comments.

a) the project milestones (p. 12) need to be sharpened and made more detailed.
b) the phasing of the outputs should be changed (as noted earlier)to provide clearer guidelines for the
execution of the data gathering phases.
c) the question of the separation of policy making and "execution" (p. 20) should be given further
consideration. It is not clear that this is really intended (see functions of OKCOM), nor is it clear
that this should be done, given the limitations on personnel and decision capacity.






0World Bank User
1M:\RAMON\WP7-2000\UNEP\Regional Okavango\OKV-FIN5.doc
207/26/00 12:43 PM

---