PROJECT INFORMATION DOCUMENT (PID)
APPRAISAL STAGE
Report No.: AB677
Groundwater & Drought Management in SADC
Project Name
Public Disclosure Authorized
Region
AFRICA
Sector
General agriculture, fishing and forestry sector (50%);General
water, sanitation and flood protection sector (50%)
Project ID
P070547
Borrower(s)
RELEVANT SADC MEMBER STATES
Implementing Agency
SADC Water Division
Environment Category
[ ] A [ ] B [X] C [ ] FI [ ] TBD (to be determined)
Safeguard Classification
[ ] S1 [ ] S2 [X] S3 [ ] SF [ ] TBD (to be determined)
Date PID Prepared
January 14, 2005
Date of Appraisal
January 12, 2005, 2004
Authorization
Date of Board Approval
May 3, 2005
Public Disclosure Authorized
1. Country and Sector Background

Regional issues
Regional issues
The Southern African Development Community (SADC) has the goal of fostering cooperation
and mutual benefit from the resources of the region amongst it member countries ­ Angola,
Botswana, DRC, Lesotho, Mauritius, Malawi, Mozambique, Namibia, South Africa, Swaziland,
Tanzania, Zambia, Zimbabwe.
Public Disclosure Authorized

Whilst there is no formal poverty reduction strategy for the region, the 1996 SADC Policy and
Strategy for Environment and Sustainable Development states that the organization aims to:
· protect and improve the health, environment and livelihood's of the people in Southern
Africa, particularly the poor;
· preserve the natural heritage, biodiversity and life-supporting ecosystems in Southern
Africa; and
· support regional economic development on an equitable and sustainable basis for the
benefit of present and future generations.
Thus, poverty reduction is closely linked with protection of the environment and preservation of
life supporting ecosystems.

Countries in the region face natural constraints such as a high degree of spatial and temporal
Public Disclosure Authorized
variability in the rainfall, and imposed constraints including a lack of basic data and knowledge,
fragmented responsibility for management of water resources, lack of community involvement in
management, outdated policies, laws and regulations, and inadequate enforcement of existing
regulations. These constraints are particularly apparent in the case of groundwater resources.

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Overarching these national issues is the regional issue of a lack of an effective mechanism to
manage the numerous transboundary watersheds, both surface and groundwater, in the region.

Member states signed the SADC Protocol on Shared Watercourse Systems in 1995. In 1996,
SADC established a Water Sector to further the protection and development of this vital regional
resource. The Protocol was revised in 2000 and came into force in 2003. A Regional Strategic
Action Plan (RSAP) for Integrated Water Resources Development and Management was
developed in 1998 which includes 31 priority projects. The present proposal is designed to help
implement one of those priority projects - Project.6 entitled Regional Groundwater Management
Program in the SADC Region. This Program is overseen by a sub-committee of the SADC
Water Resources Technical Committee. This sub-committee has subsequently been incorporated
into the Project Steering Committee to provide technical oversight and representation of Member
States in the project governance.

Under the umbrella of the Revised Protocol for Shared Watercourses, riparian states have signed
an agreement for the joint management of surface and groundwaters in the Limpopo river basin.
This agreement includes the establishment of a River Basin Commission and forms the basis for
the development of common objectives, and harmonized laws and regulations for the
management of the surface and groundwater resources.

All countries in the Southern Africa region are eligible for World Bank and GEF funding

Sector issues and Project rationale
The development of countries in the region is highly dependent on adequate and reliable water
resources. Thus, the RSAP states that the region's water resources influences all aspects of the
region's social and economic development. Apart from domestic water supply and sanitation, it
is essential for agriculture, pastoralism, hydro-power generation, mining, tourism and industry.
About one third of the people in the region live in drought prone areas, where groundwater is the
primary source of drinking water for the human population and livestock, and most other
activities. Groundwater is also the prime source of water for many ecosystems and their wildlife
in these dryland areas.

Box 1: Groundwater drought
Groundwater resources in arid areas are under
threat from over-exploitation, pollution,
Meteorological drought is defined by the degree
sedimentation and introduction of exotic
of dryness (lack of precipitation) and the
duration of the dry period. Groundwater
species. These threats arise primarily because
drought describes when groundwater resources
of poverty linked to an increase in population
fail as a consequence of meteorological
pressure, as well as from irrigated agriculture,
drought. However, the link between
tourism, mining and pollution from human
groundwater and meteorological drought is
waste and agricultural chemicals. The threat
poorly understood, with groundwater drought
typically occurring later than meteorological
to the groundwater resources of these
drought.
vulnerable areas also constitutes a major threat
to the related groundwater dependant eco-systems (GDEs) in drought prone areas of the region.
Currently there is very limited groundwater management in the countries of the region with
inadequate resources dedicated to the task and a general lack of effective institutions and

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technical capacity. The impacts of exploitation of groundwater on GDEs is largely unknown, as
is the resulting social and economic impact of the degrading of GDEs on the communities in the
affected areas, especially the very poor. These problems are compounded by the cyclical nature
and variability of climatic conditions in the southern African region. The implementation period
of the project may or may not coincide with a drought event which requires that the outlook of
the project must be one of assisting the region and SADC Member States to develop and
maintain a long term perspective of groundwater drought management and the protection of
GDEs (Box 1).

It is these questions which this project aims to address through four inter-related components
· Testing of practical local groundwater drought management strategies at pilot level;
· Research into GDEs, their occurrence, vulnerability, value and protection;
· The development of groundwater drought management tools and guidelines;
· The establishment of a regional Groundwater Management Institute of Southern Africa to
continue long term monitoring and the promotion of better management and awareness in
the SADC region and at national level.

2. Objectives

The project objective is defined as: "The development of consensus on a SADC regional
strategic approach to support and enhance the capacity of its member States in the definition of
drought management policies, specifically in relation to the role, availability (magnitude and
recharge) and supply potential of groundwater resources." This outcome contributes both to key
GEF programs and strategies as noted above, and to the overall objectives of SADC Regional
Groundwater Management Program.

The primary target groups for the project are the users of groundwater and groundwater
dependent ecosystems (GDEs) in drought prone areas in southern Africa. The target groups are
addressed at three scales through the project ­ at a local level in the two pilot areas (Figure 1), at
the river basin level in the Limpopo river basin, and at the regional level through SADC.

At the pilot level the principal outcome of the project will be learning and demonstration of
ground water management techniques in the Limpopo pilot areas so that communities and users
of GDEs will be better able to mitigate against the negative effects of groundwater drought in the
long term. While communities in the pilot areas may not experience a groundwater drought
during the implementation of the project, they will be better equipped to deal with these
phenomena as a result of the activities. The outputs at the pilot level will consist of limited
physical infrastructure (monitoring boreholes, extraction boreholes, pans, alluvial sand storage
curtains1, etc), and non-structural measures such as improved government capacity,
strengthening of groundwater user groups, heightened community awareness of the need to
manage groundwater and dependent ecosystems on a long-term basis and possibly water pricing.
In addition, water conservation techniques such as conjunctive use of surface and groundwaters
and improvements in recharge will be tested in the pilot studies if circumstances are suitable.
1 Alluvial sand storage curtains are small subsurface barriers constructed across sand rivers to impound floodwaters
and thereby recharge alluvial aquifers.

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At the national and regional level, the objective will be the building of consensus on a
transborder approach to groundwater management, including tools for management and decision
making. Environment Ministries (and equivalent institutions) represent the national
stakeholders and the SADC Environment and Land Management Unit represents the regional
constituency with an interest in better management of the GDEs. As a result of the project, these
institutions will be better able to manage GDEs through the knowledge gained, the provision of
tools such as maps and guidelines, and the establishment of a regional institution.

Progress towards achieving reduced groundwater drought vulnerability will be measured through
· the development and implementation of agreed management plans at pilot level;
· an improved ability of local groundwater users and GDEs to survive groundwater drought
conditions ;
· the ability of government officials to support the continuation and replication of these
interventions; and
· the application of lessons learnt and the use of management tools at regional level.

At the regional scale, the principal outcome will be supporting the strategy and institutional
option/s that emerge from this consensus building process including regional management tools
and the potential establishment of a regional Groundwater Management Institute of Southern
Africa (GMISA). The GMISA will contain knowledge about managing groundwater droughts,
including water conservation techniques such as conjunctive use and improved recharge, and
thereby contribute to a long term solution to the problem across the SADC region. Progress will
be measured by endorsement by the SADC Water Resources Technical Committee of the
regional tools (maps, database, knowledge management system) and guidelines; dissemination of
the guidelines to member countries; and the establishment of the GMISA will contribute to a
long-term solution to the problem across the SADC region. including completion of its initial
staffing and workplan.

The proposed project will be part of the GEF Operational Program 9 (Integrated Land/Water)
which has the goal of "helping countries utilize the full range of technical, economic, financial,
regulatory, and institutional measures needed to operationalize sustainable development
strategies for international waters and their basins". This incorporates a special focus on projects
in the African region. The proposed project promotes this goal with its objective of improving
regional technical capabilities and intervention strategies to promote better management of
transboundary groundwater resources.

The project contributes directly to the first two objectives of the SADC Policy for Environment
and Sustainable Development (above) and to the newly developed SADC Water Policy by
improving access to water and protecting groundwater dependent ecosystems in the Limpopo
pilot areas during times of drought, and by providing regional tools and an institution for the
improved management of groundwater in drought prone areas, including groundwater dependent
ecosystems (GDEs).

3. Rationale for Bank Involvement

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Rationale for GEF involvement
The GEF is currently involved in several programs (in addition to this project) which address
specifically the utilization and protection of transboundary and international groundwater. This
indicates a growing concern for groundwater and for groundwater dependent ecosystems. These
projects include :-

Country
Project Name
Regio
Focal Area
Agency
Project
Project
n
Type
Stage
Egypt Developing
Renewable
AFR International UNDP Medium CEO
Ground Water Resources in
Waters
Size
Approved
Arid Lands: a Pilot Case - the
Project
Eastern Desert of Egypt
Regional
Protection of the North West
AFR International UNEP Medium CEO
Sahara Aquifer System
Waters
Size
Approved
(NWSAS) and related humid
Project
zones and ecosystems
Regional
Environmental Protection and LAC International IBRD Full
Size Council
Sustainable Integrated
Waters
Project
Approved
Management of the Guarani
Aquifer
Regional Managing
Hydrogeological AFR International UNEP Medium CEO
Risk in the Iullemeden
Waters
Size
Approved
Aquifer System
Project
Global Conservation
and
Sustainable
CEX Biodiversity UNEP Full
Size CEO
Management of Below
Project
Endorsed
Ground Biodiversity, Phase I
In addition there are a number of GEF projects covering related issues which are being
undertaken by the World Bank's cooperating partners in Southern Africa. These include:-

1. UNEP - Desert Margins Program (DMP) Phase1 (CEO Endorsed 2001 - under
implementation)

The overall objective of the DMP is to arrest land degradation in Africa's desert margins
through demonstration and capacity building activities. In the Southern Africa region, this
project is working in Botswana, Namibia, South Africa and Zimbabwe to develop an
integrated national, sub-regional, and international action programme for developing
sustainable natural-resource management options to combat land degradation and loss of
biodiversity. The SADC Groundwater project will collaborate with this initiative to assist in
the development of the regional groundwater managment plans.

2. UNEP - Integrated Management of Dryland biodiversity through Land Rehabilitation in the
arid and semi-arid regions of Mozambique, Zambia and Zimbambwe (Council Approved -
October 2002)

This project works in two transboundary areas (one between Mozambique and Zambia
adjacent to one of the pilot areas of the current project ). The objective is to improve
community-based resource management, in order to address losses in soil productivity,

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reduced food security and increased vulnerability of local communities to stresses such as
drought. Collaboration will be established with this project to exchange information (data on
drought, managment plans, engagement of communities etc).

3. UNEP - Zimbabwe - NCSA for Global Environmental Management (CEO Approved 2003)
4. UNEP - Swaziland - NCSA for Global Environmental Management (CEO Approved June
2003)

These projects are working to identify capacity needs to address all levels of
environmental management (focusing on the countries' ability to implement projects to
support the global environmental conventions) in the relevant countries. Preliminary
assessments done in each country point to the need for strong capacity building programs
at different levels for these initiatives to be successful. The SADC groundwater project
will utilize the results of the NCSAs (normally implemented over 12 months) to help
build on local and national groundwater management capacity.

Understanding the use, management and protection of groundwater in international river basins
in drought prone semi-arid areas, and the impact of groundwater and land use practices on
groundwater dependant ecosystems (GDEs), brings together a number of important issues which
fit within several GEF Focal Areas and Operational Programs. In large areas of Southern Africa
groundwater is the only dependable source of water for basic needs and food production, which,
given the high variability of the climate and increasing population pressure, potentially
represents a considerable threat to both water resources (surface and groundwater) and GDEs,
including baseflow dependent wetlands. Careful management of these resources will be
necessary if both the Millennium Development Goals (MDGs) and the WSSD targets are to be
reached.

The objective of the project is to strengthen the capacity of SADC member States in the
management of transboundary groundwater resources in drought prone areas to meet human
development needs whilst protecting groundwater dependent ecosystems. This objective falls
within the International Waters Focal Area and is congruent with the GEF OP 9 ­ "Integrated
Land and Water Multiple Focal Area Operational Program".
The proposed project also clearly falls under the GEF's Strategic Priority IW-2:- To expand
global coverage of foundational capacity building addressing the two key program gaps (in
particular that of water scarcity and competing water use) and support for targeted learning. The
project will contribute to addressing important transboundary groundwater systems in the SADC
region with direct global environmental benefits associated with the proper management of the
Groundwater Dependent Ecosystems (GDEs). The project under consideration will contribute
directly to the targets under Strategic Priority IW-2 by developing country-driven management
programs for addressing transboundary priorities in one of the largest aquifer basins in Africa by
2006.

Rationale for Bank involvement

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The World Bank's 1996 Africa Water Resources Management Initiative (AWRMI) seeks to
support water resources analysis and policy reform at the national level and to assist riparian
countries in the development of cooperative frameworks and programs in relation to shared
water resources. The AWRMI in turn builds upon the World Bank's long term vision of
supporting integrated water resources management programs and projects as stated in the 1992
Water Resources Policy and 2003 Water Resources Sector Strategy.

At present the 1999 Regional Strategy for Southern Africa is the most appropriate guide to
regional investments. This document identifies improved management of transboundary
resources, including water, as one of five opportunities for regional cooperation.

The AWRMI seeks to establish partnerships with other multi- and bilateral donor agencies and
members of the civil society in order to strengthen ongoing and planned initiatives. Within such
cooperative approaches, the Bank has a comparative advantage in:
· analytical and operational work that draws on the Bank's cross-country experience;
· ensuring that policy reforms are consistent;
· being an honest broker in transboundary resources such as water basins;
· and using the specific expertise of the International Finance Corporation (IFC) and
Multilateral Investment Guarantee Association (MIGA) to promote private sector
investments.

The present proposal, being focused on cross-country operational work and laying the foundation
for increased transboundary water resource management, draws on these strengths.

4. Description

Component 1 ­ Development, testing and demonstration of a groundwater drought
management plan for the Limpopo river basin pilot areas

Rationale: The primary objective of this component is to test the application and
replicability of methods of decreasing the vulnerability of local communities and GDEs
to the effects of groundwater droughts. The rationale is also to ensure that practical on-
the-ground benefits accrue to local people from the project. The Limpopo basin has been
selected partly because of the pressures its groundwater resources are facing, partly
because of the extent of GDEs in the basin and partly because the groundwater
assessment in the Limpopo River Basin has been specifically identified as a priority in
the SADC Regional Groundwater Management Program. Two pilot areas have been
selected within the Limpopo Basin (Figure 1) because they were trans-boundary,
representative of GDEs, bio-diverse, drought-prone, had good data availability, and had
good local support.

Target Group and Outcome: Local communities, including local government, in the pilot
areas are the main target groups of this Component. Target groups also include the river
basin organisations, particularly LIMCOM, and regional offices of national Water
Departments and Environment Departments. The main outcome at local level in the pilot

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areas will be improved long-term ability to withstand the negative impacts groundwater
droughts on water security and groundwater dependent ecosystems.
Inputs: Inputs will include expertise in communications, facilitation and capacity building
to assist in the establishment and strengthening of stakeholder arrangements to develop
an agreed management plan. Further inputs will be funds and technical expertise for
physical interventions and data gathering, monitoring and interpretation to capture the
`learnings' from the pilot exercises. Where possible, a local tertiary institution will be
involved in data gathering.

Outputs: The outputs of this component will be improved ability of stakeholders in the
pilot areas to manage groundwater and GDEs, the small infrastructure assets constructed
in the pilot areas to reduce the shocks of groundwater droughts and the `learnings'
derived from the pilot process which will be the input to Component 2 of the project ­ the
development of regional groundwater drought management support.

Sector Issues: This component will provide a greater understanding at the local level of
the role of groundwater in drought prone areas and measures which can be taken to
balance human demand with the needs of GDEs.

Component 2 ­ Regional groundwater drought management support

Rationale: In spite of the importance of groundwater resources for regional growth,
fundamental tools for transboundary groundwater management, such as hydrogeological
maps and maps of groundwater vulnerability and water scarcity, are not available in the
SADC region. As a result there is little consensus on the measurement and management
of these resources. The tools developed in this component, together with the improved
knowledge generated through the research sub-component, meet some of the specific
needs identified by the SADC Regional Groundwater Management Program and will
contribute to building consensus on the management of transboundary resources.

Target group and Outcome: Groundwater and environment managers from national
agencies throughout region and SADC Environment staff will have access to an agreed
mapping of transboundary and national aquifers as a basis for future joint management,
improved knowledge of GDEs and the value of groundwater, and a set of guidelines for
local groundwater drought management planning.

Inputs: Hydrogeological map and data (from associated French government funded
projects); landuse, economic and ecosystem data-sets. Climate data will be accessed
from national institutions and regional Drought Monitoring Centre.

Outputs: Improved knowledge of groundwater-dependent ecosystems, economic
valuation of groundwater; maps of groundwater vulnerability and water scarcity; greater
awareness amongst decision-makers of groundwater role; guidelines on better
management of groundwater-dependent ecosystems throughout region. The translation of
information gained through the pilot programs, regional data and information, and the

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GDE research into practical management tools and guidelines will make the output of the
project both accessible and useful at regional and national levels.

Sector Issues: Greater understanding of GDEs and their vulnerability will contribute to
their protection and the sustainability of fragile resources upon which rural communities
depend. The impact upon and use of transboundary aquifers, particularly in the Limpopo
River Basin will be better understood through the project together with the development
of local management and physical modalities to `drought-proof' local areas or at least
increase their ability to cope with groundwater drought.

Component 3 ­ Establishment of the Groundwater Management Institute of Southern
Africa (GMISA)

Rationale: There is a need to maintain a long-term regional awareness and capacity to
address groundwater drought because of the climatic variability and unpredictability in
the region. This is both to provide follow-through to the project (the implementation
period of which may not coincide with a drought event) and to maintain readiness and
capacity for future inevitable drought events which may occur anywhere in the SADC
region. The SADC Regional Groundwater Management Program has identified the need
for an institution (sub-project 6) to raise understanding of groundwater management
through research, knowledge management, coordination and capacity building. The
degree of consensus for the establishment of the Institute and the commitment to its
financial sustainability on the part of the SADC Member States will be determined as a
prerequisite for the establishment of the Institute.

The provision of a Groundwater Drought Monitoring Fund (GDMF) to the Institute will
enable continuity of the project research program (included in Component 2) and assist
the Institute to establish itself, to continue monitoring the pilot areas and set up an initial
research program. This will greatly extend the value of the project, particularly given
that the project period may not coincide with a regional drought event. The GDMF,
administered and guided by the GMISA will be a key element in the management and
protection of shared international aquifers in the SADC region and their dependent
ecosystems.

Target group and Outcome: National environment and water resource managers, SADC
Water Division and Environment Units, and developing River Basin Organizations will
have a regional institution that provides data, knowledge, training and other capacity
building, coordination with other regional activities and awareness raising of
groundwater management.

Inputs: The Institution will be established with initial support from the project together
with in-kind support from the host institution. The data and knowledge derived from
Components 1 and 2 will also comprise significant inputs to the establishment of the
Institution. The GDMF will also assist in ensuring the sustainability of the Institute.

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Outputs: Institution capable of taking lead role in regional groundwater drought
management, if there is sufficient consensus and established commitment to the financial
sustainability of the Institute on the part of the SADC Member States.

Sector Issues: Provides node for promoting improved management to the benefit of all
sectors described in A.1.

Component 4 ­ Project management and administration

Rationale: The project management is designed to provide maximum external support to
SADC Water Division (SADC-WD) through a Project Steering Committee, a Project
Services Agency and a Project Management Unit in response to lessons from earlier
projects.

5. Financing

Source: ($m.)
BORROWER/RECIPIENT 0.00
GLOBAL ENVIRONMENT FACILITY
7.00
EC: EUROPEAN COMMISSION
1.00
FRANCE, GOV. OF (EXCEPT FOR MIN. OF FOREIGN AFFAIRS-
0.08
MOFA)
GERMANY, GOV. OF (EXCEPT FOR BMZ)
1.22
LOCAL GOVTS. (PROV., DISTRICT, CITY) OF BORROWING
2.70
COUNTRY
SWEDEN: SWEDISH INTL. DEV. COOPERATION AGENCY (SIDA)
0.50
Total: 12.50
6. Implementation

The project is a partnership between SADC (working through the Water Division), the
governments and government departments of SADC Member States, the PMU and the
stakeholders (in particular the user communities in the pilot areas of the Limpopo River Basin).
The project is co-financed directly between GEF and the Swedish International Development
Cooperation Agency (Sida), and indirectly through contributions from the French and German
governments (through a hydrogeological mapping program, the outputs of which are important
inputs to the project) and the SADC Member States.

Sida is providing 0.5 million US dollars as co-financing to the project. These funds are in the
form of Bank implemented Trust Funds and will be employed through the AWRMI on activities
agreed with SADC.

The project will be carried out in close collaboration with a hydrogeological mapping program,
components of which are funded by the French and German governments. The mapping
activities in sub-component 2.1 of the current project will be based on the hydrogeological map.

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The map and associated databases will complement the vulnerability and scarcity mapping
activities. These projects will all be coordinated through the SADC-WD and jointly overseen by
the Project Steering Committee.

The first phase of the development of the hydrogeological maps for the Southern African region
is an exploratory phase entitled "Preliminary Study for the Development of the Hydrogeological
Map and Atlas for the SADC Region". This has been funded by the French Government (US$
80,000) and has been undertaken during the preparation phase of the project which is the topic of
this PAD. The mapping exercised is to be financed by the German Government to the amount of
1 million Euro and is currently under preparation. The proposed Groundwater Management
Institute of Southern Africa will be the custodian of the outputs of these projects.

Period of Implementation: The period of implementation is four years.

Executing Agency and the Steering Committee: The SADC Water Division (SADC-WD) is the
Executing Agency of the Project. It is located within the Directorate for Infrastructure &
Services of SADC Secretariat located in Gaborone, Botswana. The implementation of the Project
will be guided by a multi-stakeholder Project Steering committee (PSC). At the technical level,
the SADC-WD is also guided by the Water Resources Technical Committee (WRTC).

The Steering Committee will report to the SADC Water Resources Technical Committee
(WRTC), and the Integrated Committee of Ministers. Local stakeholder committees will be
established in the pilot areas to guide local project activities.

The Limpopo Basin pilot activities will be carried out in close collaboration with the Limpopo
River Basin Commission (LIMCOM) which will be represented on the Steering Committee.

Project Management Unit (PMU) and the Project Services Agency (PSA): The Executing
Agency of the project (SADC-WD) will work through: (a) a Project Management Unit (PMU)
for technical implementation, and (b) a Project Services Agency (PSA) for conducting the
financial management, administration and procurement functions. The GMISA (to be set up
during the project) will have a small unit to ultimately take over the functions of the PMU and
PSA, including procurement and financial administration.

PSA:
Project contracting, disbursement and financial management and reporting will be handled
through the PSA as these activities are beyond the capacity and functions of SADC-WD as
currently constituted. The PSA will be a management group with experience in the
administration of development projects and that meets Bank requirements for financial
management and procurement. Both the PMU and the PSA will report to the SADC Secretariat
through the SADC-WD. The SADC Secretariat, being the project executing agency, will fulfill
its responsibilities for meeting Bank financial and procurement requirements through the PSA.
Thus the SADC Secretariat will be relieved of day-to-day functions of the management and
administration of the project whilst remaining the responsible executing agency.

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On behalf of SADC-WD, the PSA will establish the PMU and contract a range of consultants to
carry out the pilot and regional activities. There is considerable groundwater expertise in
government agencies, NGOs and the private sector in parts of the region ­ particularly in South
Africa, Namibia and Botswana ­ and wherever possible this expertise will be used in the project.

UNOPS has been identified by SADC through approved procurement processes as the PSA.

An Independent Review Panel of consultants will be at the disposal of SADC-WD. The
objective of the Panel will be to provide an external resource to the project to review the
technical and scientific plans, technology use, hydro-geology, GDEs, social and economic
impact etc.

PMU:
The PMU will be established in Gaborone, Botswana, in a separate office to the SADC-WD.
The role of the PMU will be to manage and coordinate the various consultancies that will be
contracted to undertake the different project activities. Technical staff for the PMU will be
regionally selected through open competition according to criteria agreed with the Bank.

7. Sustainability

SADC's commitment to the project is illustrated by the extensive process that gave rise to the
proposal as well as the support received during preparation. The SADC Sub-Committee on
Hydrogeology acted as the Steering Committee for the preparation activities. Representation on
this committee was by those officials responsible for groundwater management within
government departments. The Sub-Committee noted the importance of this project to SADC
member countries during progress reviews of the RSAP. It is planned that this committee will
form the core of the Project Steering Committee for project implementation along with a broader
representation of stakeholder groups, thus ensuring continuity of oversight and commitment.

The tools developed during the project for regional management of groundwater will be
sustained through the SADC system and the Groundwater Management Institute of Southern
Africa (GMISA). The Institute is the most important element for the long-term sustainability of
the project's outputs. It will have the role of promoting the concept of regional management of
groundwater resources, building understanding about the benefits of regional management,
developing capacity and furthering the use of the tools developed during the project.

The sustainability of the GMISA is of critical importance. Sustainability will require four main
criteria ­ a) political endorsement and commitment; b) adequate leadership, c) technical and
administrative competence, and d) financial security. One of the primary objectives of the
establishment phase of the Institute during the first 2 ½ years of the project will be to ensure that
these criteria are achieved, without which the establishment of the GMISA will not proceed.
The measures taken to ensure this will therefore be determined during the project but would
include:-

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a) The SADC Secretariat will be requested to canvas and re-affirm the commitment to the
establishment of the Institute by the Member States. This will need to include
appropriate commitment to the financial sustainability of the Institute (see d. below).

b) Careful identification of the host institution within SADC such that the working
conditions of the head and small staff of GMISA are conducive to attracting the highest
caliber of professionals. The search process for the staff of the Institute will also need to
be very thorough.

c) The institute will be established during the course of the project so that it operates
concurrently with the project for 2 years. During this time the staff will benefit from a
planned program of training and development which is provided for in the project budget.
This will ensure that the Institute is competently run and the service that it provides to the
SADC region is of the highest professional standard.

d) Financial sustainability is critical and will require creative and sustained effort. A
number of avenues will be investigated such as
-
`subscriptions' from the SADC Member State governments,
-
the sale of products, outputs and services,
-
levies on research funds administered by the Institute, and
-
fund raising.
The costs of running the Institute for the first two years will come from the project budget
which will provide the opportunity for finances to be secured for the continued
functioning of the organization. The 0.5$ million Groundwater Drought Monitoring
Fund provided for in the project, whilst not intended to cover day-to-day running costs,
will also assist the Institute to establish itself and would provide some resources for
running costs through administration fees.

The purpose of the Limpopo pilot component is to test various management options at the local
scale, to learn from them and to replicate the lessons learned through the guidelines which will
be developed for region-wide application. In addition, LIMCOM will be involved in
management of the pilot project and, together with other international river basin organizations
in the region, will be able to replicate these lessons learned from the pilot areas. Lessons learned
can be replicated in other parts of the world through the GEF framework such as the GEF's
outreach and publication program, GEF Lessons notes, and country dialogue workshops. These
avenues provide excellent opportunities for wider dissemination of results at the global level.

A Replication Plan will be prepared by the mid-point of the project and will be reviewed by the
Steering Committee, the SADC WD, the Review Panel and the Mid-Term Review. The
Replication Plan will identify the key requirements required to ensure that the outputs of the
project will be taken up at a regional level and within Member States, and will identify detailed
actions to be undertaken during the remainder of the project period to ensure replication.

8. Lessons Learned from Past Operations in the Country/Sector

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Experience from a wide range of current work throughout the African Continent and in particular
from programs such as the Nile Basin Initiative suggests that for projects to be successful related
to shared international waters (both surface and groundwater), there is a need for the riparian
countries to establish a common vision for action and to have political commitment at the highest
possible level. In the case of this project, the Revised SADC Protocol on Shared Watercourses is
the common framework agreed to by all the Member States which is currently being translated
into a common management approach in the Limpopo and other river basins. The current project
will support the Limpopo River Basin Organisation (RBO) and develop common tools to be
housed in the regional institution to be established by the project as a precursor to a wider
regional approach to transboundary groundwater management.

GEF experience also stresses the need for implementing agency collaboration and donor
coordination. SADC has established a strategic reference group consisting of various donors to
provide advice to the implementation of the Regional Strategic Action Plan (RSAP). The present
project is part of a Regional Groundwater Management Program being supported by various
other donors.

Experience also illustrates the importance of full stakeholder involvement in project preparation
and implementation. The project concept presented in this PAD is an outcome of the significant
consultative process that was part of the development of the Regional Strategic Action Program
(RSAP) and, subsequently, the regional groundwater management program. The project itself
will be steered by a group containing all stakeholders.

The Groundwater Management Advisory Team (GW-MATE), formed with the support of the
Bank-Netherlands Water Partnership Program, has been supporting the design of the current
project, by drawing on the multi-disciplinary international experience of its members. GW-
MATE was formed with support from the Bank-Netherlands Water Partnership Program to
promote a shift in emphasis from groundwater resource exploitation to improved management of
the resource.

Experience through a number of World Bank engagements with the SADC Secretariat, including
the preparation phase of this project, indicates that SADC has limited project management
capacity. The management of the present project has therefore been designed to provide as much
external support as possible through the appointment of a Project Services Agency to carry out
the day-to-day administrative, financial and procurement activities and a Project Management
Unit that will be responsible for the content of the project and the achievement of the project
objectives. An alternative implementation arrangement could have been direct implementation
of the project by the SADC Water Division with administration and financial management being
undertaken directly by the SADC Secretariat, however the experience during the project
preparation phase under a GEF PDF B Grant indicates that project implementation is not the
strength or the function of the SADC Secretariat or the Water Division. There is no experience
of past completed World Bank projects being undertaken by SADC and therefore no relevant
World Bank OED reports (Implementation Completion Reports (ICRs), Project Performance
Assessment Reports (PPARs) etc.)

9. Safeguard Policies (including public consultation)

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C. Safeguard Policies Triggered
Yes No

Environmental Assessment (OP/BP/GP 4.01)
[ ]
[x]

Natural Habitats (OP/BP 4.04)
[ ]
[x]

Pest Management (OP 4.09)
[ ]
[x]

Cultural Property (draft OP 4.11 - OPN 11.03-)
[ ]
[x]

Involuntary Resettlement (OP/BP 4.12)
[ ]
[x]

Indigenous Peoples (OD 4.20)
[ ]
[x]

Forests (OP/BP 4.36)
[ ]
[x]

Safety of Dams (OP/BP 4.37)
[ ]
[x]

Projects in Disputed Areas (OP/BP/GP 7.60)*
[ ]
[x]

Projects on International Waterways (OP/BP/GP 7.50)
[x]
[ ]

Safeguard Screening Category
The Safeguard Screening Category is S3.

Environmental Screening Category
The Environmental Screening Category is C.

Key Safeguard Policy Issues
The project has pilot scale interventions in two pilot areas in the Limpopo River Basin which are
designed to test the application and replicability of methods of decreasing the vulnerability of
local communities and GDEs to the effects of groundwater droughts. The pilot areas are in an
international water course ­ the Limpopo River Basin and therefore OP/BP 7.50, "Projects on
International Waterways", is triggered. However, the four riparian countries of the Limpopo
river (Botswana, Mozambique, South Africa and Zimbabwe) are beneficiaries to the project as
the project will be implemented in each of those countries. The four countries have been
represented on the Project Preparation Steering Committee which has been the body responsible
for over-seeing the preparation of the project and approving the selection of the Pilot Areas.
Each of the four riparian countries have sent specific Letters of Endorsement of the project,
which is a GEF requirement, and these are on file. Moreover, the recipient of the GEF grant will
be the SADC Secretariat which is mandated to implement the project by the SADC Member
States including the Limpopo riparian states. Under these circumstance the requirement of
notification of other riparians does not apply.

Capacity to Implement Recommendations
Policy OP7.50, although formally triggered, is already satisfied because of the involvement of all
SADC countries in the project selection and preparation. The capacity varies greatly across the
four countries bordering the Limpopo basin. South Africa and Botswana have good technical,
legal and institutional capacities for implementing safeguard requirements. Zimbabwe and
Mozambique have poorer capacities. However, given that the project is designed to reduce stress
on the environment, it is unlikely that there will be any impacts and the existing capacities
should be sufficient.
* By supporting the proposed project, the Bank does not intend to prejudice the final determination of the parties' claims on the
disputed areas

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The extent to which the project would trigger the safeguard policies was discussed with SADC
officials during project preparation and it was agreed that the requirements of OP7.50 had been
met.

10. List of Factual Technical Documents

World Bank Lending Preparation Documents
1. Minutes PCD review meeting
2. Integrated Safeguard Data Sheet
3. Project
Information
Document
4. Project Appraisal Document

GEF Documents
5. PDF (B) Grant Application
6. Project Executive Summary
7. Project
Brief
8. Set of key SADC Government Endorsement Letters
9. GEF STAP Review
10. Incremental Cost Analysis

Project Preparation Documents
11. Project Steering Committee Minutes
12. Report on Pilot Area Stakeholder Meeting
13. SADC Region Situational Analysis
14. Groundwater Situation Analysis in the Limpopo River Basin
15. Limpopo Basin Social Assessment

11. Contact point
Contact:
Leonard John Abrams
Title:
Sr Water Resources Mgmt. Spec.
Tel:
(202) 458-0412
Fax:
(202) 473-8301
Email:
labrams1@worldbank.org

12. For more information contact:
The InfoShop
The World Bank
1818 H Street, NW
Washington, D.C. 20433
Telephone: (202) 458-5454
Fax:
(202) 522-1500

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Web:
http://www.worldbank.org/infoshop

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