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ANDAMAN AND NICOBAR ISLANDS: ECOLOGICALLY-SUSTAINABLE ISLAND DEVELOPMENT

GOVERNMENT OF INDIA

United Nations Development Programme

ANDAMAN AND NICOBAR ISLANDS: ECOLOGICALLY-SUSTAINABLE ISLAND DEVELOPMENT (PIMS 565)

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Project Description

This project aims to facilitate the ecologically-sustainable development of the Andaman and Nicobar Islands by

mainstreaming conservation of biodiversity into governance systems and key productive sectors. The project will enhance local capacities to conserve and sustainably utilise globally-

significant biodiversity resources, particularly in the three key economic sectors of agriculture, tourism and fisheries.


Table of ContentSECTION I : ELABORATION OF THE NARRATIVE 4

PART I. SITUATION ANALYSIS 4Context and Global Significance 4Threats, Root Causes and Barrier Analysis 6Institutional, Sectoral and Policy Context 11Stakeholder Analysis 13Baseline Analysis 16

PART II. STRATEGY 17Project Rationale and Policy Conformity 17Project Goal, Objective, Outcomes and Outputs/Activities 19Project Indicators, Risks and Assumptions 26Expected Global, National and Local Benefits 27Country Ownership: Country Eligibility and Country Drivenness 27Sustainability 29Replicability 29

PART III. MANAGEMENT ARRANGEMENTS 30PART IV. MONITORING AND EVALUATION 32PART V. LEGAL CONTEXT 45

SECTION II : STRATEGIC RESULTS FRAMEWORK AND GEF INCREMENT 46

PART I: INCREMENTAL COST ANALYSIS 46PART II: LOGICAL FRAMEWORK ANALYSIS 53

SECTION III : TOTAL BUDGET AND WORKPLAN 76

SECTION IV: ADDITIONAL INFORMATION 79

PART I: LETTER OF ENDORSEMENT FROM MINISTRY OF ENVIRONMENT AND FORESTS 813 PART II: Terms of References for Key Project Staff and Main sub-contracts 76

PART III : STAKEHOLDER INVOLVEMENT PLAN 86PART IV: OTHER ADDITIONAL INFORMATION 88

IV-A: Detailed Map of the Andaman and Nicobar Islands 88IV-B: Global Significance Of The Terrestrial Ecology Of The Andamans – An Overview 90IV-C: Interim Judgments of Supreme Court Ruling of May 2002 94IV-D: REPORTS PRODUCED DURING PDF-B PHASE 97IV-E: RESPONSE TO GEF COUNCIL COMMENTS 99IV-F: L-PAC MINUTES 106IV-G: Tracking Tool for GEF Biodiversity Focal Area Strategic Priority Two: Mainstreaming Biodiversity in Production Landscapes and Sectors 109IV-H:RESPONSE TO GEF SECRETARIAT CONCEPT AGREEMENT REVIEW OF AUGUST 2006 119

IV-I RESPONSE TO GEF SECRETARIAT CONCEPT AGREEMENT REVIEW OF AUGUST 2006 114

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ACRONYMSA&N Andaman and Nicobar A&N SCB A&N State Coop. BankANCOFED Andaman & Nicobar Co-operative Supply & Marketing Federation Ltd. ANIDCO Andaman & Nicobar Islands Integrated Development Corporation Ltd.APR Annual Project ReviewAWP Annual Work PlanCARI Central Agriculture Research InstitutionCO Country OfficeENVIS Environmental Information SystemGEF Global Environment FacilityGIS Geographical Information SystemsHVADA High Value Agriculture Development AgencyHQ Head QuartersIDA Island Development AuthorityIP&T Information, Publicity & TourismIR Inception ReportM&E Monitoring & EvaluationMOEF Ministry of Environment & ForestsMYFF Multi Year Funding FrameworkNABARD National Bank for Agriculture and Rural DevelopmentNGOs Non-government OrganizationsOP Operational ProgrammePCB Pollution Control BoardPDF Project Development Facility PIR Project Implementation ReviewPMU Project management UnitPOP Persistent Organic PollutantsPRC Project Review CommitteePSC Project Steering CommitteePTC Project Technical CommitteeRCU Regional Coordination UnitSP Strategic PriorityTPR Tripartite ReviewTTR Terminal Tripartite ReviewUNDAF United Nations Development Assistance FrameworkUNDP United Nations Development ProgrammeUN United NationsUT Union Territory

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SECTION I: ELABORATION OF THE NARRATIVE

PART I. SITUATION ANALYSIS

Context and Global Significance

1. The Andaman and Nicobar Islands are an archipelago in the Bay of Bengal, consisting of 306 named islands and 206 rocks and rocky outcrops with outstanding natural beauty and ecological diversity. The Andaman and Nicobar (A&N) Islands are situated approximately 1,200km from the Indian mainland, between 6° 45’ N to 13° 41’ N longitude, and 92° 12’ E and 93° 57’ E latitude. They are located to the south of Myanmar and north of Sumatra, Indonesia, as shown in map 1 below.

Map 1: Location of the Andaman and Nicobar Islands

2. Geologically the A&N Islands are submerged southwards extensions of the Arakan Yoma mountain range of Myanmar. The islands have a total land area of 8,249 km2, of which the northern Andaman group is 6,408 km2 and the southern Nicobars are 1,841 km2. The two island groups are separated by the 160km-wide 10 Degree Channel,

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and are geologically and ecologically quite distinct. The Andamans have bio-geographic affinities with Myanmar while the Nicobars are more closely related to Indonesia.

3. The entire Nicobar Islands are a Tribal Reserve with significant areas under protection in the Great Nicobar Biosphere Reserve (885km2) and two National Parks.1 Access to the Nicobar Islands is restricted, and therefore the level of economic activity is relatively low compared with the more densely-populated Andaman Islands. The focus of activity in this project will be on the Andaman Islands. ,

4. The Andaman and Nicobar Islands are home to highly-diverse terrestrial and marine ecosystems, with a variety of habitats ranging from densely-forested mountain areas to sandy beaches and some of the most intact coral reefs in the Indian Ocean. The mangroves fringing these islands are the largest and most intact in India, and the Andaman Island Forests are included in the WWF Global 200 List of global priority biodiversity hotspots. Mangroves occupy an area of 644 sq.km in Andaman Islands and 27 sq. km in Nicobar Island2. The mangroves of the Islands are one of the richest mangrove areas in the world in terms of quality of vegetation and biodiversity.

5. Although the coral reefs of the Andamans are far better known, the tropical moist broadleaf forests of the Andaman Islands are also globally-significant and worthy of conservation. The Andaman island forests contain a mix of elements from the Indian subcontinent and South-East Asia, and are recognised as a distinct ecoregion in the WWF global list (ref: IM0101), with high endemism and distinctiveness. The WWF ecoregion profile3 lists a total of thirty-seven endemic or

1 Annex IV – A provides a detailed map of the Andaman and Nicobar Islands. 2 Forest Survey of India, 2003.3 http://www.worldwildlife.org/wildworld/profiles/terrestrial/im/im0101_full.html

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near-endemic terrestrial fauna species in the Islands. Other sources list eighty-five flora species as rare, endangered and threatened.4

6. More than 6,500 species of fauna (including 2210 terrestrial and 4250 marine) have been reported from the archipelago so far. A high proportion of these species are endemic, including over 50% of butterflies, almost 40% of birds and 60% of the 58 mammalian species. There are also 34 endemic reptiles and amphibians in the Islands. The overall rate of faunal endemicity is estimated to be 9%. About 14% of angiosperm species are endemic to the islands, comprising around 700 genera within 140 families.5

7. As a small, isolated archipelagic ecosystem, the A&N Islands are susceptible to degradation from human impacts. The topography of the islands is long and narrow, with ridge to reef distances of barely 30-40 kilometers in most areas. Therefore species’ ranges are highly restricted and the impact of habitat loss can be severe. A significant part of the land area of the Andaman Islands is under various categories of protection. The largest intact forest areas are in the tribal reserves, which cover 36% of the total land area. The Tribal Reserves and key protected areas of the Andaman Islands are shown in the above map.

Threats, Root Causes and Barrier Analysis

A. Threats to the Terrestrial, Coastal and Marine Ecosystems of the Andaman and Nicobar Islands

Agricultural encroachment:8. The encroachment problem is generally attributed to:

in-migration from mainland India beyond the carrying capacity of the Islands;

sub-optimal agricultural practices; fragmented landholding due to increasing family-size and low productivity from existing agricultural lands resulting in demand for new lands to raise incomes.

9. The Supreme Court order of 2002 directed that all encroachments be removed and further encroachment curtailed.

Exotic species:

4 An overview of the global significance of the Andamans terrestrial ecosystem is attached as Annex IV-B5 A comprehensive biodiversity overview is given in the Andaman and Nicobar Islands Union Territory – Biodiversity Strategy and Action Plan, Chapters 3&4.

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10. The threat by exotic species to the Andamans ecosystem has been highlighted by examples such as:

Browsing by introduced chital Axis axis, elephants Elephas maximus and feral and domesticated cattle and goats.

Crowding-out of endemic species by species such as rats, mynahs, palm squirrels Funambulus spp. and the weed Eupatorium.

11. Some of the species have become naturalised over time and if invasion by exotics is not arrested, it may cause further damage to the ecosystem.

12. These problems are perceived to occur due to lack of awareness among farmers resulting in introduction of new or improved crops and animals without proper impact assessments; and inadequate facilities for quarantine and inspection.

Over-harvesting of selected marine species:13. Sea area to the extent of 600,000 sq kms is available for harvesting

marine fishery resources around the Islands. Certain marine species have been heavily harvested over the years e.g., reef fish such as grouper (Epinephelus spp.), ornamental shells (trochus and turbo spp.), sharks (for their fins) and sea cucumbers (mainly Holothuria spp.).

14. Over-harvesting occurs for a number of reasons, including: Species stocks and carrying capacities have not been

adequately assessed. Due to this the need to undertake sustainable fishing is not sufficiently recognised.

Existing policies and development plans for fisheries are defined on total catch levels rather than targets for specific species.

Catch landings are always not closely monitored, thus available data on harvesting of marine resources can often understates catch levels.

Monitoring of remote coastal and reef areas is insufficient..

Destructive fishing methods and equipment:15. Inappropriate fishing practices and equipment can cause significant

damage to coral areas and important sea-grass beds. The use of inappropriate equipment can also kill endangered species such as dugongs Dugong dugon and sea turtles, who become entangled in fishing nets. These problems occur because sustainable fishing techniques often require more-expensive equipment or result in

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somewhat lower catches per unit of effort. As a result, fishermen have little economic incentive to invest in them.

Damage by Tourists: 16. Tourism is a valuable source of income and livelihoods, and helps to

enhance appreciation for the natural beauty of the Andamans. However, some tourist activities may cause some damages including:

Physical damage by tourists such as stepping on corals, taking corals or other species as souvenirs and dumping of garbage such as plastics and food debris.

Damage by backpackers including camping on turtle-nesting beaches.

17. The identified causes of these problems include: Lack of appreciation among tourists about the fragility of

reef ecosystems and the impact of seemingly-minor damage such as souvenir-collection.

Inadequate training of tourist operators and park staff in minimising ecological impact of tourist activities.

Inadequate arrangements for assessing tourist impact in Marine Parks and other important coastal areas.

Unplanned construction of tourist infrastructure:18. Tourism development has seen small-scale entrepreneurs and local

residents constructing basic accommodation facilities without adequate attention to ecological consideration.

19. Public infrastructure can cause beach erosion. 20. Lack of adequate awareness or capacity to address the potential

environmental impact of infrastructure plans.

Agrochemical pollution:21. Agrochemicals (fertilisers and particularly pesticides) are sometimes

used at high levels, particularly in rice and vegetable cultivation in Havelock and Neil Islands and around Diglipur in North Andamans. This increases the level of persistent organic pollutants (POPs) in the island’s ecosystem and is a particular threat to mangroves, coral reefs and sea-grass bed in the vicinity of the agricultural areas.

22. Agrochemical overuse occurs for several reasons, including:

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Selection of crops unsuitable for local agro-climatic conditions.

Lack of training and information on efficient agrochemical use.

Subsidisation of agrochemical inputs, resulting in the marginal cost of application being very low.

Soil erosion:23. Soil erosion results from the clearing of ground cover on hill-slopes

and mountainsides. Heavy rainfall causes the rich topsoil to be washed off into streams and rivers, and eventually into the sea. The sedimentation and turbidity that results chokes coral growth and damages other coastal ecosystems.

24. Farmers, many of whom originate from lowland regions of the mainland, do not have experience or training on land management in hilly areas (such as selective clearing, land terracing or ground-cover crops and grasses), and therefore clear fragile hill-slopes in inefficient and environmentally damaging ways.

Over-harvesting of mangrove wood:25. Andaman mangroves are highly diverse and home to a vast range of

important flora and fauna. They also serve as spawning grounds for a variety of species including and shrimps and reef fish.

26. Uncontrolled harvesting of mangrove wood in the past for use in local construction and agricultural activities has caused significant damage in certain areas. It was only in 1989 that the mangroves in A&N Islands have been afforded protection by imposing a ban on mangrove extraction and by adopting eco-restoration and conservation strategies. Nevertheless, creating awareness and keeping vigil on possible destruction of mangroves throughout the vast coast line is a continuous challenge.

Mining of beach sand:27. As the Andaman Islands have very limited riverine systems, with the

bulk of beach sand is created by wave erosion along the coast, the beaches are very slow to regenerate. Therefore use of sand for construction activities can cause significant damage.

B Underlying barriers to sustainability28. The problems and environmental threats described above stem from

a range of underlying causes which represent barriers to sustainable development in the Islands. These barriers have been grouped under three categories:

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Governance and capacity Awareness and attitudes Livelihoods and income generation challenges

Governance and capacity barriers:29. The line agencies responsible for the productive sectors under this

project (Departments of Agriculture, Fisheries and Tourism) need further capacity strengthening to mainstream ecological considerations in their sector activities, including orientation and training of decision makers and technical managers. For instance, the Administration’s has given priority to develop high-value and organic agriculture as major economic sectors. However, implementation mechanisms for this transition need to be put in place.

30. The Government provides significant subsidies in key areas such as transportation, fuel, agricultural inputs and utilities that increase the pressure on the natural resource base, in two important ways:

Economic incentives encourage in-migration from mainland India, by offering migrants from poorer regions of the mainland the prospect of easier livelihoods.

These subsidies often inhibit sustainability. For instance, subsidies on agricultural inputs such as agrochemicals encourage overuse in some areas.

31. Policy-setting is not always adequately accompanied by effective implementation and adoption by stakeholders in the field.

Awareness and attitude barriers: a. For migrants improving their livelihoods is the primary goal and

there is insufficient awareness of the environmental impact of their activities. Environmental awareness-raising initiatives have been undertaken by government and NGOs but these have been on a small scale.

b. Inbound tourists inadvertently cause damage to sensitive ecological resources such as corals and turtle nesting sites, due to a lack of understanding of the sensitivity of these ecosystems. Tourists and tour operators are not adequately aware about ways to ensure minimal environmental impact of tourism activities.

c. There is a prevailing perception that fish stocks are unlimited and therefore fishing communities are not aware of the long-term availability of stock.

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Livelihoods and income generation barriers:a. There are no significant barriers to in-migration. b. There is a high level of unemployment in the Islands, particularly

amongst educated youth. The total number of unemployed youth is estimated to be between 20,000 and 40,000, comprising five to ten percent of the total island population. In the absence of alternative livelihood options, the pressure on the Islands’ natural resources continues to increase.

c. Current employment and income-generation programmes are mainly based on conventional agriculture, construction, Government jobs and other service sectors.

d. Existing agriculture is primarily dependent on crops such as rice, coconuts, arecanuts and bananas. There is limited scope to increase the production from existing lands due to inadequate irrigation potential. This limitation creates pressure to ‘open up’ new agriculture land by clearing forests.

e. Existing tourism-sector activities are largely limited to small hotels or beach resorts and backpacker accommodation, which provide limited income generation potential per visitor arrival. The Administration now plans for rapid development of the tourism sector through the creation of multiple high-end resorts. However, the local labour force lacks the skills necessary to fill skilled, professional or managerial positions.

f. In the fisheries sector, the focus is on deep-sea tuna fisheries using commercial trawlers. While the ecological impact on the land and coasts of Islands will be minimal, deep-sea fisheries will only generate a small number of jobs, thus not serving to reduce the employment and income-generation pressure on the Islands.

Institutional, Sectoral and Policy Context

Governance context32. The A&N Islands are a Union Territory (UT) of India under the direct

jurisdiction of the Central Government. The Territory is governed by a Lieutenant-Governor. The Territorial Administration is the largest direct and indirect employer and providing extensive public services.

33. Subsidies, where required, are provided for transportation, intra-island shipping, basic utilities and fuel costs, agricultural inputs and a variety of other basic necessities. Infrastructure provision and other developmental expenditures are also strongly supported.

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Socio-economic context 34. The Islands are home to indigenous tribal communities whose

presence dates back more than 20,000 years. Some tribal groups such as the Jarawa and Sentinelese live largely separate from mainstream society. Other tribal communities such as the Great Andamanese and Onge have greater interaction with the mainstream. All remaining tribal communities now live within designated Tribal Reserves.

35. Due to the highly vulnerable nature of these small, isolated tribal communities, the Government of India has maintained a policy of strict separation between tribal groups (and their lands) and the mainstream island communities. The tribal communities are provided with extensive welfare services and developmental assistance.

36. The earliest non-indigenous settlement in the Islands was a penal colony established by the British colonial government to house Indian convicts and independence activists. Post-independence in 1947, the Islands witnessed an influx of settlers from the mainland, including refugees from the erstwhile East Pakistan (now Bangladesh). Settlements were created for them on South, Middle and North Andaman, particularly in the vicinity of Diglipur. Other early settler groups included repatriates from Sri Lanka in the 1960s, and former Armed Forces servicemen and their families who were given small plots of land on Great Nicobar Island.

37. Over the last three decades the Islands have witnessed a spurt of in-migration, partly due to Government incentives to populate and develop the Islands. Settlers have mainly come from agricultural areas of the mainland, and have attempted to bring over traditional crops and agricultural practices (e.g. rice farming) which are not wholly suited to the ecological context of the Islands.

38. The early economic development of the Islands was built on the extraction of primary resources such as timber and non-timber forest produce. Logging continued to be a major source of revenue and employment until 2002 when the Supreme Court placed a total ban on commercial logging and temporary total ban on harvesting of forest till the revision of working plans. At present, the working plans of few forest divisions have been revised and forests are being managed as per their prescriptions and only to meet the local demand.

39. In addition, agriculture, consisting mainly of rice, coconuts, areca nut and bananas and some rubber and oil palm plantations have also been developed. Approximately 50,000ha is currently under

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cultivation, of which more than half is planted with coconut and areca nut.

The Sustainable Development Challenge40. In May 2002, the Supreme Court of India directed that commercial

logging in the Islands should cease and licenses of saw mills and all wood-based industries are to be revoked as of 31st March 2003. These orders were passed to preserve the unique ecology of the islands. This Supreme Court order6 now forms the broad policy framework within which sustainable development is being planned in the Islands.

41. The abrupt cessation of commercial logging activity and closure of wood-based industries has led the Administration to identify new sources of jobs and economic development. The Island Development Authority (IDA), which is the Central Government body responsible for developmental planning for the Islands, has identified specific economic sectors as drivers of future development:

Eco-tourism High-value agriculture Sustainable fisheries

42. Recent studies and reports reiterate the importance of sustainable development for the Islands as well of the three productive sectors: (i) “Action Plan for Development of post-tsunami New Andaman’s”

by the M.S. Swaminathan Research Foundation (2005)(ii) The State Development Report commissioned by Planning

Commission which is being finalized.(iii)A master plan for the eco-friendly development of fisheries called

ANDFISH ((2005) prepared by the Indian Council for Agricultural Research.

(iv)The state of environment report for the A&N Archipelago prepared by A&N Islands Environment Team and the A&N Department of Environment and Forests is being finalised.

43. The Tsunami in December 2004 resulted in loss of lives in the A&N Islands and extensive damage to infrastructure, houses and livelihoods. The damage to the environmental resources is being studied.

Stakeholder Analysis

6 The text of the Supreme Court order is provided in Annex IV-C

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44. Many of the stakeholders consulted in the development and design of this project during the PDF-B will play an active role in its implementation through various mechanisms as detailed in the Stakeholder Involvement Plan in Section IV.

45. The table below summarizes the key as well as potential stakeholders at different levels. While some will be involved in project oversight, management and implementation throughout the project cycle, others will be part of specific activities from time to time. The list and roles given below are indicative and will be further refined and adapted as necessary, initially during the inception phase and periodically thereafter as and when necessary.

Key Stakeholder Broad and potential role in the projectNational-level MOEF o Review project implementation through the GEF

Empowered Committee at MOEF.o Facilitate the embodiment of environmental

dimension in the project interventions.State/Union Territory-levelA&N Administration

o Provide leadership and oversight for project implementation.

o Facilitate setting-up of project management and monitoring systems.

o Ensure that project implementation is consistent with national and Territorial development policies and with the agreed project design.

o Participate in /chair relevant project management committees.

o Facilitate interface with national ministries and agencies as and when required by the project.

Implementing Agencies:HVADA; Departments of Fisheries, Information, Publicity and Tourism and Agriculture and Environment and Forests; Office of Deputy

o Responsible for designing, implementing and monitoring the specific project activities.

o Report progress on project activities.o Participate in relevant project management

committees. o Develop/revise appropriate guidelines, circulars

and policy directives within their departments/sectors.

o Expand partnerships with civil society, public representatives, community-based organizations and private sector.

o Establish documentation, learning and knowledge

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Key Stakeholder Broad and potential role in the projectCommissioners. sharing systems. Technical Agencies:ANIDCO; CARI; Central Plant Protection & Quarantine; ANCOFED; Coir, Spice and Coconut Boards; Fishery Survey of India; Fisheries Federation; A&N Fisheries Ltd; Andaman Tourism Guild; A&N Toursim Association; Tourist Boat Operators Association; Andaman Boat Operators Association; Hotel & Restaurant Association of A&N Islands; NABARD, A&N SCB, lead banks; PCB.

o Provide technical support in specialized areas of the project.

o Participate in relevant consultative fora, issue-based meetings and experience sharing workshops.

o Facilitate relevant linkages for project agencies and community-groups directly benefiting from project interventions.

o Provide information relevant to project stakeholders.

Site-level partners:Local communities, community-based organisations, Panchayati Raj Institutions, Tribal Council, A&N Chamber of Commerce & Industry; private tourist and fisheries operators.

o Participate in design and implementation of location-specific project activities.

o Participate in capacity building initiatives, awareness generation, project-related consultations and experience- sharing workshops.

o Participate in peer review of project activities as and when required.

o Share project learning’s with respective formal and informal networks.

Credible NGOs with required expertise and experience:

o Participate in design and implementation of public awareness and education component of the project as requested by project authorities and in

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Key Stakeholder Broad and potential role in the projectcollaboration with the Information, Publicity and Tourism Department.

o Assist in the monitoring of project impacts, particularly in assessing the progress of local-level livelihood demonstrations.

o Provide technical support in specialized areas of the project as requested by the project authorities.

o Participate in relevant consultative fora, issue-based meetings and experience sharing workshops to contribute knowledge and learn from project experience.

o Share project learning’s with formal and informal networks.

Baseline Analysis

Baseline46. Governance structures and systems in the Andamans prioritise

growth in primary economic sectors for job creation. While, environmental sustainability is becoming a major priority in decision-making, there is scope for strengthening capacities to identify and address environmental sustainability issues in development planning. The above condition is reiterated in the three specific economic sectors identified by the Island Development Authority as drivers of future development.

47. However, at both the national and A&N Administration levels and especially post-tsunami, there is an increasing concern about the environmental impact of development activities. Recent reports and plans such as those discussed in para 46 above clearly indicate that environmental concerns are regarded as important in designing projects especially those that have a direct bearing on the way environmental resources are utilized. The A&N Administration is insisting on greater transparency at all levels in reporting the impact of developmental activities on environmental resources. There is also an increasing awareness and willingness among local communities and private sector to proactively reduce damage to environmental resources.

Global Environmental Objective48. The project will support the efforts of the A&N Administration to

ensure that (a) the sustainability of globally-significant ecosystem resources is accorded a high priority in governance structures, systems and decision-making (b) the need to conserve the ecological

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resources is understood by local communities and widely supported as an integral part of the developmental vision for the Islands (c) a ‘win-win’ relationship between ecological sustainability and sustainable livelihoods is demonstrated in the three priority sectors.

Alternative49. The overall objective of the project is to mainstream environmental

sustainability into the governance systems and key productive sectors of the Islands. To accomplish this, the project proposes to complement the existing baseline situation with a GEF co-financed project alternative. The alternative will seek to support the efforts of the A&N Administration in removing the barriers to mainstreaming of conservation and sustainable use in three specific areas: governance and capacity; awareness and attitudes; and livelihoods and income generation. The broad strategies and potential activities are outlined in paras 63-74.

Systems Boundary50. Baseline and incremental costs have been assessed temporally, over

the planned 8-year time frame of the GEF intervention, and geographically over the Andaman and Nicobar Islands (8,249sq.km of land area and an associated marine zone of approximately 12,000sq.km.). The scope of the project covers supporting analysis, assessments and interventions for removing the barriers to sustainability identified during project formulation and for mainstreaming sustainability in governance and key productive sectors.

Summary of Cost

51. The total cost of the project including Co-funding and GEF funds is US$ 9,387,200. Of this total, co-funding constitutes 64% or US$ 5,998,600. GEF financing constitutes the remaining 36 % of the total, or US$ 3,388,600. The incremental cost matrix provides a summary breakdown of baseline values and Co-financing and GEF financing by project Outcome.

PART II. STRATEGY

Project Rationale and Policy Conformity

Rationale52. As mentioned earlier, the A&N Islands are ecologically fragile and

highly susceptible to degradation from human impacts. Although a

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significant part of the land area of the Andaman Islands is under various categories of protection, the various threats to the terrestrial, coastal and marine ecosystems of the Andaman and Nicobar Islands have been outlined earlier7.

53. In recent years, environmental concerns in the A&N Islands have emerged as a priority area for the government, both at the national level as well as with the A&N Administration, particularly after the December 2004 tsunami. Fortunately, the project does not require major redesigning post tsunami to address these concerns as the priority sectors and broad strategies envisaged in the original project design remain relevant (see Paragraph 46). Thus, action is required at various levels, the important ones being:Mainstreaming environmental sustainability into the governance

systems as it brings environmental issues within the ambit of development planning and decision making.

Design and demonstration of specific environmentally-sustainable strategies and interventions for the key productive sectors identified for the Islands: agriculture, tourism and fisheries.

Awareness and attitudinal change that leads to better understanding and greater appreciation of the globally significant ecological resources which can in turn significantly to mainstreaming environmental dimensions at local-level actions.

54. This project seeks to support the government’s efforts in areas of action described above.

Policy Conformity: GEF Operational Strategy, Focal Area, Operational Programme and Strategic Priority 55. The proposed project has been designed in conformity with GEF

Biodiversity Strategic Priority 2. It addresses the mainstreaming of biodiversity conservation in key productive sectors of the Andaman and Nicobar Islands (both terrestrial and marine) and will work to support government efforts in creating a policy and institutional enabling environment for biodiversity conservation in Islands.

56. The proposed project also addresses GEF Operational Programmes 2: (Coastal, Marine and Freshwater Ecosystems) and 3: (Forest Ecosystems). The project addresses OP2 by promoting the conservation and sustainable use of the globally-significant coastal and reef biodiversity resources of the Andaman and Nicobar Islands.

57. The project addresses OP3 through the conservation and sustainable use of the globally-significant terrestrial ecosystems of the Andaman and Nicobar Islands. The terrestrial ecosystems of the Andaman and

7 Refer Annex IV-D for list of reposts prepared during the GEF supported PDF B phase

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Nicobar Islands are of high global significance, as described in Part I above. The project will strengthen capacities for conservation of these important forests through improved planning, monitoring and enforcement capacities and support development of ecologically-sustainable ecotourism and agricultural activities.

58. The proposed project was submitted for pipeline entry in 1995 within the Biodiversity/ International Waters multi-focal area under the title “Management of the Coral Reef Ecosystem of the Andaman and Nicobar Islands”. At the point where the PDF-B proposal was developed, the limited available information on threats to ecological sustainability in the Andamans pointed towards an intervention focused on marine protection and potential transboundary conservation issues. (The latter due to the Islands’ proximity to Myanmar, Indonesia, Thailand and Malaysia) However a careful assessment of threats and root causes during the formulation process indicated that the primary conservation challenges were rooted in governance, capacity and awareness issues and unsustainable livelihood practices, both on land as well as in the sea.

59. When the initial PDF-B proposal was submitted to GEF in 1995, the scope and nature of GEF interventions were significantly different – and narrower- than at present. The reformulation that became necessary in mid-2003 presented an opportunity to design a proposal which was more closely aligned with current GEF requirements, particularly the Strategic Priorities. The SP and OP fit detailed in the proposal therefore reflects the most appropriate approach to address the problems on the ground rather than being in strict conformity with the program designation envisioned in the PDF-B proposal developed almost a decade ago.

Project Goal, Objective, Outcomes and Outputs/Activities

60. The objective of the proposed project is to mainstream environmental sustainability into the governance systems and key productive sectors of the Islands. This objective will support the goal of conserving the Islands’ globally-significant biodiversity resources through sustainable use. The project aims to achieve this objective via four intended outcomes:

Establishing a governance context that recognises, facilitates and promotes sustainable development

Ensuring that environmental sustainability receives widespread support from the Island community through enhanced public awareness and improved attitudes.

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Facilitating environmentally-sustainable income generation and job creation in key productive sectors.

Effective project monitoring and evaluation, lessons learning and adaptive management.

Outcome 1: A Governance Context that recognises, facilitates and promotes sustainable development61. The project will work with key partners in the Territorial

Administration, technical and scientific specialists and the private- and non-government sectors to ensure that governance systems, institutions, policies and capacities are oriented towards environmentally-sustainable development. The project will identify barriers, gaps and inefficiencies which inhibit sustainable development and will facilitate development and implementation of appropriate solutions.

62. The A&N Department of Environment & Forests will support the three sector departments in reviewing policy frameworks and in developing/refining guidelines, standards and regulations with a view to strengthen the environmental dimension.

63. Specific initiatives that will be accomplished to achieve this outcome include:

o A comprehensive review of existing policies, legislation and procedures in the Territorial Administration, to identify critical barriers to environmental sustainability. These will build upon global best practice in the sustainable use of biodiversity, including the principles, guidelines and implementation tools provided in the Addis Ababa Principles and Guidelines for the Sustainable Use of Biodiversity.8

o A comprehensive review of land-use planning and zonation system to enable sectoral production and livelihood activities in a manner to ensure the protection of environmentally-sensitive areas such as watersheds, protected forests, tribal areas and critical wildlife habitats.

o Study on changes in environmental resources post-tsunami after taking into account existing research and identification of gaps.

o Review of existing fiscal incentives and subsidy systems in all three productive sectors to support efforts for removal of any economic distortions that encourage unsustainable resource use.

8 Annex II of decision VII/12 of the 7th Conference of Parties of the Convention on Biological Diversity, available at: http://www.biodiv.org/decisions/default.aspx?m=COP=07&id=7749&lg=0

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o Reviews of governance capacities at the systemic, institutional and individual levels to support formulation and implementation of a comprehensive organisational strengthening and capacity development strategy

o Study of various judicial orders passed by the government with regard to conservation of environment and forests with a view to understand the implications for the different interventions and implementation arrangements proposed under the project and ensure that they are consistent with the judgments.

o Development of targeted sectoral capacity development strategies for key economic sectors such as tourism, high-value agriculture and fisheries, to remove capacity barriers to environmentally sustainable development.

o Facilitating and supporting targeted and adequate-duration training programmes – national/international - for staff in the three productive sectors: agriculture, fisheries and forestry and relevant agencies as Botanical Survey of India, Zoological Survey of India.

o Strengthening of management, monitoring and enforcement capacities to ensure that resource managers have sufficient capacities to manage and protect important environmental resources.

Outcome 2: Ensuring that environmental sustainability receives widespread support from the Island community through enhanced public awareness and improved attitudes. 64. The proposed project will develop and implement a comprehensive,

multi-year public awareness programme to ensure that stakeholders are aware of and support the goal of sustainable development for the Islands. The public awareness programme will be implemented by a consortium of credible NGOs with required expertise and experience, Panchayati Raj Institutions, Tribal Council and other local community partners, working in collaboration with the Administration’s Information, Publicity and Tourism (IPT) Department. The awareness programme will access available information through the ENVIS node and existing GIS workstation already installed in the A&N Department of Environment & Forests. It will also support compilation, analysis and gap-bridging and assist in augmenting the existing facilities.

65. Specific initiatives to achieve this outcome include:o Develop and demonstrate general public awareness activities

such as nature camps, nature walks and environmental workshops for all age groups.

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o Design and publish a weekly full-page environmental awareness column in a Government-published Island newspaper, which provides information on local, national and international environmental issues as well as quizzes, competitions and other interactive forums.

o Establish and train a network of environmental education activators and educators, focusing on teachers, youth and women’s groups.

o Develop awareness materials such as video presentations, posters and booklets, to provide easily-accessible information on the environment and ecology of the Islands, for the local population.

o Develop and demonstrate a programme of awareness-raising activities using approaches such as street theatre and puppetry, to reach out to less-literate local communities and younger children.

o Organise seminars and discussions on environmental themes for Administration officials, private-sector leaders and other senior-level stakeholders and technical specialists, to discuss and assess specific environmental issues and threats and to build consensus for environmentally-sustainable development.

o Produce and distribute targeted and informational videos and associated pamphlets for in-bound tourists on ships and aircraft, to raise awareness of the sensitive and valuable ecology of the Islands and to educate tourists on the rules and regulations governing environmentally-friendly tourism. Work with transportation operators to ensure the continued production and dissemination of this information as an integral part of all transportation services to the Islands.Work with the IPT Department to mainstream successful public awareness initiatives into its own Departmental programmes as well as of the other departments.

Outcome 3: Environmentally-sustainable income generation and job-creation in key productive sectors.

66. The Territorial Administration and Central Government have identified three specific sectors for future development - high-value agriculture, eco-tourism and fisheries.

67. The project intends to mainstream biodiversity conservation into the developmental plans and programmes of these sectors and will seek

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to achieve three sub-outcomes within the context of sustainable livelihoods:

A sustainable high-value agriculture sector A vibrant, broad-based eco-tourism industry A sustainable fisheries sector utilising coastal and reef

fisheries resources

Sustainable, high-value Agriculture68. The development of an ecologically-sustainable high-value

agricultural sector will require:o A feasibility study to identify crop types which are suitable for

development, on the basis of ecological compatibility, production cost and market competitiveness, projected returns and job-creation potential. The study will focus on identifying indigenous species for development wherever possible. In instances where exotic species are proposed, the study will specifically assess the potential ecological impact of introducing such species into the local ecosystem.

o To discourage expansion of area under agriculture given island’s ecological context, an action plan to promote intensive irrigation through micro irrigation technologies such as drip and sprinkler systems and rain water harvesting.

o A supply chain review to identify and overcome input inefficiencies (raw materials and agricultural inputs, transport and logistics, processing, clearance, documentation and quality assurance) and to identify potential opportunities to increase local value-addition through upstream processing, packaging and marketing. It is envisaged that the crop feasibility study and supply chain review will be undertaken in collaboration with the Central Agriculture Research Institution (CARI) in Port Blair.

o Establishment of agricultural sector producers’ and traders’ associations, under the auspices of the Andaman and Nicobar Islands Chamber of Commerce, to facilitate intra-industry and industry-Administration cooperation in instituting norms and guidelines for sustainable production.

o An entrepreneur training programme to catalyze the development of locally-owned small- and medium-sized high-value agricultural enterprises and cooperatives. This programme will place specific emphasis on the development of agricultural enterprises by women’s self-help groups (SHGs) and individual female entrepreneurs.

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o Microfinance and small-business finance programmes to provide start-up and expansion capital for local enterprises and cooperatives in the high-value agriculture sector. These programmes will be built upon and incorporated into the on-going microfinance and small-business finance programmes of ANIIDCO, State Cooperative Bank, lead banks and NGOs. Priority will be accorded to cooperatives and enterprises established by women’s groups.

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Eco-Tourism 69. To help develop a sustainable eco-tourism industry in the Andaman

and Nicobar Islands, the project will support:o Support the A&N Administration in reviewing existing eco-

tourism master-plans and proposals and preparing an updated eco-tourism sectoral strategy for the A&N Islands that reflects current industry standards and practices, global best-practice for eco-tourism and the latest scientific knowledge on sustainable tourism and low-impact tourism strategies. The plan will try to address constraints such access between islands and clean and sustainable energy sources to substitute diesel, which is a source of pollution.

o Facilitate an active tourism association encompassing tourism-sector players such as hoteliers, resort operators, tour agencies and tour guides, transport operators, dive operators and restaurateurs. This Association will work with the Administration to develop and implement clear and comprehensive guidelines and standards for environmentally sustainable tourism.

o Establish a tourism industry entrepreneurship development programme, in collaboration with IP&T and ANIDCO. This programme will identify and support small- and medium-scale domestic tourism enterprises, focusing on secondary and support services such as local guides, small-scale boat and dive operators, home-stay programmes, handicraft and food and beverage stores.

o The programme will provide assistance in areas such as training on market feasibility assessments, business management, product development and marketing, microfinance and small-scale finance. The development of entrepreneurial activities such as handicraft and food and beverage stores and home-stay programmes will emphasise the involvement of women’s groups and individual female entrepreneurs as much as possible.

o The programme will emphasise ecologically-sustainable tourism practices, as well as provide training and awareness on the global biodiversity significance of the Islands and its ecological richness. In doing so, the programme will create a secondary and support services sector which appreciates the critical link between conserving the Islands’ biodiversity and sustaining a viable ecotourism industry.

o The entrepreneurship development programme will be implemented as part of Administration’s on-going tourism

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sector development activities and will be incorporated into the sectoral development programmes of the Tourism Department.

o Establish and support a broad-based, participatory process to devise and market a tourism identity for the Andaman Islands (a ‘Brand Andamans’) that highlights and celebrates ecological diversity and environmental sustainability as key elements of the Andamans tourism experience.

Sustainable Fisheries 70. Sustainable coastal and reef fisheries will be advanced by the

following initiatives:o Work with the existing master plans of the Department of

Fisheries to identify specific interventions where environmentally-sustainable fishing can be demonstrated.

o Identify constraints to utilize the untapped fishery potential and assist local fishing communities in upgrading their equipment, technical skills and resources to meet sustainability requirements while maintaining or increasing incomes and job-creation in the sector. Also explore mariculture options for a variety of species such as lobsters, crabs, prawns, pearl oyster, Turbo, Trochus and Tridacna after a comprehensive examination of potential environmental impacts of such activities. However, expansion of fishery related activities will require target based stock assessment, recruitment and fishing to monitor the resources along scientific lines and to ensure that sustainable fishery development in the Islands.

o Assessment of medium-term feasibility of developing alternative fisheries-related livelihood options, such as sport fishing, catch and release fishing or dive boat services, linked to the growth of high-end sustainable tourism activities.

o Review of the supply chain and development of a plan to increase value-added from fisheries operations through improved handling, value-added processing and improved marketing links with key overseas markets. Development of value-added processing opportunities will specifically target women’s groups wherever feasible.

71. While identifying specific activities across the these sectors during implementation, existing local, state, national and international experience will be scanned as well as information available in existing reports by the A&N Administration, Planning Commission, Island Development Authority, Ministry of Home Affairs, research

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institutes like the Anna University and donors such as the World Bank and UNDP will be consulted.

Outcome 4: Effective project monitoring and evaluation, lessons learning, and adaptive management 72. The following outputs will be achieved:

Project management systems that include adaptive management mechanisms developed and maintained. Depending on the progress made and problems faced, adaptive management will allow quick decision making and the required mid-course corrections.

Periodic project strategic and annual work planning completed according to agreed timetable. This will enable setting of concrete targets based on a consultation with stakeholders during the inception phase and also the tracking the project’s progress.

Project monitored and evaluated regularly and lessons integrated into adaptive management process. The results of the monitoring will be used as feedback to the adaptive management process ensuring that the project is managed based on current and realistic information.

Project progress reports generated, reviewed and disseminated on schedule. Documentation of project experiences and results will enable the production of various communications materials to showcase the project experiences.

Project results and lessons disseminated widely both in-country and more widely. Dissemination of project experiences and results will enable a wider set of people to learn from the project and expand the scope for replication of the successful models of this project.

Project Indicators, Risks and Assumptions

73. The primary indicator of project success is mainstreaming sustainability into the governance systems and key productive sectors of the Andaman and Nicobar Islands

74. The project design is predicated on a small number of risks and assumptions. The primary assumption underpinning the project is that the Government continues to play a predominant role in sectoral development, and thus Government development strategies strongly influence the boundaries and direction of economic development. The project has a strong focus on strengthening governance capacities and on sustainable sectoral development strategies. This focus assumes that the Territorial Administration’s predominant role in guiding economic development continues in the

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medium-term, and that mainstreaming sustainability into the governance context will therefore improve the sustainability of economic activity overall.

75. The project also assumes that the orders of the Supreme Court will be fully implemented. In particular, it is assumed that the Supreme Court orders relating to removal of forest encroachments, issuance of identity cards for residents and the phasing-out of sand-mining will be thoroughly enforced. Although difficulties may be experienced in implementation, the orders are legally binding on the Central Government and the Territorial Administration.

76. Transfer of administrative staff, particularly the Indian Administrative Service officers, can result in the loss of continuity. The project will therefore involve significant capacity development activities for staff who are either locally-recruited or from the DANI (Delhi and Andaman & Nicobar Islands) administrative cadre.

Expected Global, National and Local Benefits

77. By effectively mainstreaming environmental sustainability into the governance and key productive sectors of the Andaman and Nicobar Islands, the project hopes to produce the following national and global benefits: sustainability of globally-significant ecosystem resources by supporting government efforts towards mainstreaming environmentally sensitive development strategies in the governance structures and decision-making systems; increased understanding among local communities for the need to conserve the ecological resources and impetus to local action that integrates environmental concerns; development and demonstration of effective strategies in the three priority sectors that exhibit a ‘win-win’ relationship between ecological sustainability and sustainable livelihoods.

Country Ownership: Country Eligibility and Country Drivenness

Country Eligibility

78. India signed the Convention on Biological Diversity (UNCBD) on 18 February 1994 and is therefore eligible for assistance from the GEF.

Country Drivenness

79. The Ministry of Environment and Forests has indicated that the proposed project for the Andaman and Nicobar Islands represents the Government of India’s foremost priority for UNDP-GEF support at

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present. This project has been closely integrated with the overall national development strategy for the Andaman and Nicobar Islands and responds to a number of identified national priorities including:

1. Priorities identified in the Andaman and Nicobar Islands Union Territory Biodiversity Strategy and Action Plan which was developed and adopted by the Territorial Administration, with support from MoEF and UNDP-GEF under the GEF EA Project: National Biodiversity Strategy and Action Plan- India. The A&N BSAP provides the initial baseline of ecological information on which the project’s threats assessment and intervention logic is built.

2. The priority accorded to India’s ecologically-significant island ecosystems (Andaman and Nicobar and Lakswadeep). These two island ecosystems are recognised by the Government of India as unique and fragile regions, and developmental activities in these areas are coordinated by a Cabinet-level Island Development Authority (IDA), chaired by the Prime Minister.

80. The commitment of the Government of India and the A&N Administration to this initiative is clearly illustrated by the provision of more than $5 million in cash co-financing for project activities, as well as substantial in-kind contributions. In addition, the Government of India has also underwritten all recurrent project implementation expenditures, both during project implementation as well as post-project. The proposed project was reviewed and endorsed by the Government of India GEF Empowered Committee on 17 August 2004. In providing endorsement the Empowered Committee noted that the proposed project strategy was clearly aligned with the Government’s developmental vision for the Andaman and Nicobar Islands.

81. The proposed project is fully consistent with UNDP’s Country Programme (2003-2007) <www. undp.org.in/ncpo.htm> . The project is part of the Vulnerability Reduction and Environmental Sustainability theme, and specifically addresses the objectives of mainstreaming global environmental concerns into national projects, programmes and policies, and the strengthening of national capacity and capacity of local communities to address global environmental concerns. The project also supports the Poverty Eradication and Sustainable Livelihoods theme, particularly the objective of strengthening partnerships to develop, test and disseminate innovative, gender-equitable and community-managed approaches to sustainable livelihoods and environmentally sustainable natural resource management. The project through its work with local communities and local government will support the UNDAF theme of

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Strengthening Decentralisation and its sub-theme of capacity development for promoting effective community management. The project is consistent with Goal 3 ‘Energy and environment for sustainable development’ of UNDP’s Multi-year Funding Framework. With its focus on mainstreaming environmental concerns in the governance structures and in development planning, particularly for the island ecosystems, the project will contribute to results under Service Line 3.1 - Frameworks and strategies for sustainable development.

Sustainability

82. Most key components of the project have been designed to work within the existing Territorial Administration system and leverage on-going Government funding, including all key sustainable livelihoods programmes. The Territorial Administration is already implementing schemes in the three productive sectors through its planned budget. Therefore the institutional sustainability of the project’s outcomes is expected to be strong. All key project components that may require recurrent expenditure (e.g. implementation of capacity development programmes, demonstration aspects of sustainable livelihood activities, strengthening application of environmental criteria for sustainable use patterns in the three productive sectors, strengthening of monitoring and enforcement) are underwritten by Government co-financing rather than GEF resources. Therefore the project’s key achievements are expected to be fully sustainable post-project. Nevertheless, post-project sustainability will be reviewed during the project mid-term evaluation, and if deemed necessary specific activities to address post-project sustainability will be initiated.

Replicability

83. The socio-economic structure and governance system of the Andaman and Nicobar Islands is fairly unique in India (as described in the background sections above). Therefore, it is unlikely that the projects outcomes and approaches can be extensively replicated in toto. Nevertheless, many aspects of the proposed interventions have high replicability potential. For example, the sustainable tourism model will be highly relevant in major tourism destinations such as Kerala, Goa and Rajasthan. Similarly, lessons learnt in the fisheries industry will be relevant in many coastal regions of India such as the Gulf of Mannar and the Sundarbans.

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84. Beyond the immediate national context, many of the lessons learnt from this project will be applicable in small island developing states or archipelagic regions, particularly in tropical or equatorial areas. Key lessons on the sustainable management of limited terrestrial resources, mitigation of development impacts on isolated and vulnerable island ecologies and development of sustainable livelihoods in island economies will be useful in many other places facing similar challenges.

PART III. MANAGEMENT ARRANGEMENTS

Management Structure

85. The Andaman & Nicobar Administration as the Project Executive will execute the project and in this role assume the overall responsibility for the achievement of the project outcomes. The project will be implemented by the High Value Agriculture Development Agency (HVADA). The mandate of HVADA will be suitably enlarged to suit the overall requirements of the project. It will be responsible for overall project management and for coordinating the design and implementation of specific activities in the areas of high-value agriculture, fisheries and eco-tourism. HVADA will be supported by Departments of Agriculture, Fisheries and Information, Publicity & Tourism, who will partner in implementation of agreed activities. The Project Management Unit (PMU), Project Manager, sector specialists and other full time staff will be based in HVADA.

86. The overall responsibility for managing and implementing of the project will rest with the office of the Development Commissioner, designated as the Project Director. The Project Director will also be responsible for the overall implementation of the project and facilitating coordination between the departments of agriculture, fisheries and IP&T as well as with other stakeholders. The Development Commissioner will be ex-officio Project Director and will be assisted by a team comprising a Project Manager and specialists (refer para 94) who will be part of a Project Management Unit to be set up under the project.

87. The public awareness and education component will be implemented by a consortium of Panchayati Raj Institutions, Tribal Council and credible NGOs with required expertise and experience, working in collaboration with the Information, Publicity and Tourism (IP&T) Department of the Administration and local community partners. NGOs can also play a major role in community mobilization, training, capacity development, awareness generation and implementation. They can also be associated with the project to provide technical

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advice on specific components, evaluations, research studies and establishment of baselines.

88. Project implementation will be reviewed at A&N level by a Project Review Committee (PRC) headed by the Lt Governor of A&N Islands which will ensure that project implementation is consistent with national and Territorial development policies.

89. Project implementation will be overseen by a Project Steering Committee (PSC), chaired by the Chief Secretary, which will be responsible for ensuring that the project is implemented in line with the agreed project design. The PSC will act as the Project Executive Group. The PSC will include both senior-level officials of the A&N Administration and the Central Government as well as from representative(s) from UNDP. Representation on the PSC from the A&N Administration will include: The Chief Secretary, Development Commissioner, Secretary Finance, Director of HVADA, Directors of Agriculture, Fisheries, Information, Publicity and Tourism and Agriculture Departments; Principal Chief Conservator of Forests, Department of Environment and Forests, ANIDCO and NABARD. The Committee will also include representation from the private sector (such as the Andaman and Nicobar Chamber of Commerce and key tourism, agriculture and fisheries operators) as well as prominent local NGO and public representatives. The PSC will meet at least twice a year.

90. The PSC will be responsible for reviewing the selection and contracting of key project personnel, approving the project’s annual workplans, reviewing and communicating the Annual Progress Reports/Implementation Reviews (APR/PIRs) prior to the annual Tripartite Review Meetings and decide on the need for hiring consultants including review of the terms of reference and selection of consultants, both national and international. The PSC will review requests for procuring equipment for the project. For example, the Forest Department has projected its required for monitoring such as boats, scuba diving equipment, snorkeling devices, under-water photography equipment and mobile testing laboratories.

91. A Project Technical Committee will also be established. This expert committee may comprise scientific and technical experts on the Islands’ ecology and socio-economy, private-sector leaders from the key economic sectors and other individuals with expertise on the Islands’ development. The Technical Committee will provide input into project management by:

- Reviewing project reports and workplans, - Assessing technical outputs such as policy documents

and guidelines

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- Making recommendations on possible solutions to problems encountered, and

- Recommending best practices from other initiatives in India and elsewhere.

92. The Technical Committee will be kept informed of project progress and outputs on a circulation basis, via electronic mail or other suitable mechanisms. Formal meetings of the Technical Committee will be held on a yearly basis. Other ad-hoc meetings may also be held, upon invitation by the Project Steering Committee when required.

93. Operational implementation of the project will be led by a full-time Project Manager (to be selected by the PSC), under the overall supervision of the National Project Director (i.e., the Development Commissioner). The Project Manager will be supported by Sectoral Specialists responsible for tourism, agriculture and fisheries, a Staff Ecologist/ Capacity Development Specialist, administrative staff and short-term consultants as required. In addition to the day-to-day management, reporting and coordination of project implementation, the Project manager is required to maintain the following: (i) Issues Log reflecting main issues that may require decisions from the PSC (ii) Risk Log reflecting the risks that may affect the project’s progress towards the achievement of the outcomes and (iii) Lessons Learnt Log.

94. UNDP’s primary responsibility will be project assurance which will involve tracking project implementation and achievement of project outputs and outcomes as well as ensure proper use of project funds. The UNDP Country Office will support project implementation by tracking project budget and expenditure, assisting with equipment procurement, and providing other assistance upon request of the PSC. It will provide support in organizing the Inception Workshop. Financial transactions, reporting and auditing will be carried out in compliance with national regulations and UNDP rules and procedures. The UNDP Country Office will carry out its day-to-day management and monitoring functions through an assigned Programme Officer in New Delhi, who will be also responsible for the day-to-day coordination with the project team as well as liaise with UNDP/GEF Regional Coordination Unit (RCU) in Bangkok and headquarters in New York, USA.

95. Across these three sectors, apart from drawing on national, state and local expertise and experience, UNDP Country Office will scan the global canvas and provide technological input to augment income levels in an eco-friendly manner, keeping in view the carrying capacity of marine and terrestrial resources.

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96. In order to accord proper acknowledgement to GEF for providing funding, a GEF logo should appear on all relevant GEF project publications, including among others, project hardware and vehicles purchased with GEF funds. Any citation on publications regarding projects funded by GEF should also accord proper acknowledgment to GEF. The UNDP logo should be more prominent -- and separated from the GEF logo if possible, as UN visibility is important for security purposes.

PART IV. MONITORING AND EVALUATION

97. Project monitoring and evaluation will be conducted in accordance with established UNDP and GEF procedures and will be provided by the project team and the UNDP Country Office (UNDP-CO) with support from UNDP/GEF. The Logical Framework Matrix (refer Section II – Part II) provides performance and impact indicators for project implementation along with their corresponding means of verification. These will form the basis on which the project's Monitoring and Evaluation system will be built.

98. The following sections outline the principle components of the Monitoring and Evaluation Plan and indicative cost estimates related to M&E activities. The project's Monitoring and Evaluation Plan will be presented and finalized at the Project's Inception Report following a collective fine-tuning of indicators, means of verification, and the full definition of project staff M&E responsibilities.

Project Inception Phase 99. The project will have an Inception Phase extending over the first six

months of the project period involving amongst other things: setting up project management structures and systems; recruitment and orientation of project staff once the Project Team has been recruited, revisiting the

Logical Framework (logframe) and identifying critical gaps to be addressed during the first and second years of implementation. This will include reviewing the indicators, baselines, targets, means of verification, risks & assumptions. Specific sub-indicators for capturing mainstreaming of conservation principles into the three main productive sectors will be reviewed, adequate changes made, baseline situations established and verified.

identifying gaps and imminent areas of work under the broad ambit of the three productive sectors of the project, while giving high priority to conservation and management of the

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http://intra.undp.org/gef/programmingmanual/gef_logo_page.htm

http://intra.undp.org/gef/programmingmanual/undp_logo_page.htm


Island’s biodiversity and sustainable Island environmental development.

During the Inception Workshop, specific project sites will be identified using the following criteria, which will be verified, finalized and adopted at an initial PSC meeting:- Global significance of the site;- Biogeographic representation;- Degree of threats to the biodiversity;- Nature of threats to the biodiversity;- Degree of long-term ecological viability;- Added value of conserving the site and/or potential of

impacting a larger landscape;- Opportunity for effective mainstreaming of conservation

principles in either one of the key productive sectors;- Degree of interest shown by the community and local

government in participating in proposed project activities;- A&N Administration priorities;- Balanced sectoral coverage; and- Co-finance commitment.

On the basis of the logframe review and identification of gaps and priority areas of work, the Project Team will finalize the overall Project Implementation Plan, the Annual Work Plan (AWP) and budget, and a project M&E system with precise and measurable performance and impact indicators in line with the logframe. Each activity identified in the AWP will need detailed sub-components that indicate the steps required to for its completion.

The PIP and AWP will reflect the priorities and concerns of the A&N Administration and complement their existing relevant sectoral plans while giving top priority to the conservation and management of the unique biodiversity of the A&N Islands and sustainable island environmental development.

reviewing and refining the stakeholder involvement plan; undertaking preparatory work for the Project Inception

Workshop. 100. A Project Inception Workshop will be conducted with the full project

team, relevant government counterparts, co-financing partners, the UNDP-CO and representation from the UNDP-GEF Regional

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Coordinating Unit, as well as UNDP-GEF (HQs) as appropriate. UNDP Country Office will work with project authorities in organizing the Inception Workshop.

101. A fundamental objective of this Inception Workshop will be to ensure that all project partners agree on, have a common understanding of, and have internalized the project’s goal, objectives, outcomes and overall project design.. This will include reviewing the logframe matrix, the Project Implementation Plan and the project's first annual workplan (AWP) and budget.

102. The IW will also provide an opportunity for all parties to understand their roles, functions, and responsibilities within the project's decision-making structures, including reporting and communication lines, and conflict resolution mechanisms. Specifically, it serves to: (i) introduce project staff to the UNDP-GEF expanded team which will support the project during its implementation, namely the CO and responsible Regional Coordinating Unit staff; (ii) detail the roles, support services and complementary responsibilities of UNDP-CO and RCU staff vis a vis the project team; (iii) provide a detailed overview of UNDP-GEF reporting and monitoring and evaluation (M&E) requirements, with particular emphasis on the Annual Project Review/Project Implementation Reviews (APRs/PIRs), Tripartite Review Meetings, as well as mid-term and final evaluations. Equally, the IW will provide an opportunity to inform the project team on UNDP project related budgetary planning, budget reviews, and mandatory budget rephasings.

Monitoring Responsibilities and Events 103. A detailed schedule of project reviews meetings will be developed by

the Project Team, in consultation with project implementation partners and stakeholder representatives and incorporated in the Project Inception Report. Such a schedule will include: (i) tentative time frames for Tripartite Reviews, Steering Committee Meetings, and (ii) project related Monitoring and Evaluation activities.

104. Day to day monitoring of implementation progress will be the responsibility of the Project Manager based on the project's Annual Workplan and its indicators. The Project Manager will inform the UNDP-CO of any delays or difficulties faced during implementation so that the appropriate support or corrective measures can be adopted in a timely and remedial fashion.

105. The Project Manager will fine-tune the progress, performance, and impact indicators of the project in consultation with the full project team during the Inception Phase with support from UNDP-CO and assisted by the UNDP-GEF Regional Technical Advisor.

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106. Measurement of impact indicators related to global benefits will occur according to the schedules defined in the Inception Phase and agreed at the Inception Workshop and outlined in the Project Logframe. The measurement, of these will be undertaken through subcontracts or retainers with relevant institutions or through specific studies that are to form part of the projects activities or periodic sampling such as with sedimentation.

107. Periodic monitoring of implementation progress will be undertaken by the UNDP-CO through quarterly meetings with the project proponent, or more frequently as deemed necessary. This will allow parties to take stock and to troubleshoot any problems pertaining to the project in a timely fashion to ensure smooth implementation of project activities.

108. UNDP Country Office will conduct periodic field visits (at least twice a year) to assess project progress directly. The UNDP/GEF Regional Technical Advisor will also make field visits during the course of the project. Any other member of the Steering Committee can also accompany UNDP staff on monitoring visits. A Field Visit Report will be prepared by the CO and circulated no less than one month after the visit to the project team, all SC members, and UNDP-GEF.

109. Annual Monitoring will occur through the Tripartite Review (TPR). This is the highest policy-level meeting of the parties directly involved in the implementation of a project. The project will be subject to Tripartite Review (TPR) at least once every year. The first such meeting will be held within the first twelve months of the start of full implementation. The project proponent will prepare an Annual Project Report (APR) and submit it to UNDP-CO and the UNDP-GEF Regional Coordination Unit at least two weeks prior to the TPR for review and comments.

110. The APR will be used as one of the basic documents for discussions in the TPR meeting. The project proponent will present the APR to the TPR, highlighting policy issues and recommendations for the decision of the TPR participants. The project proponent also informs the participants of any agreement reached by stakeholders during the APR preparation on how to resolve operational issues. Separate reviews of each project component may also be conducted if necessary.

111. The TPR has the authority to suspend disbursement if project performance benchmarks are not met. Benchmarks will be developed at the Inception Workshop, based on delivery rates, and qualitative assessments of achievements of outputs.

Terminal Tripartite Review (TTR)

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112. The terminal tripartite review is held in the last month of project operations. The project proponent is responsible for preparing the Terminal Report and submitting it to UNDP-CO and UNDP-GEF's Regional Coordinating Unit. It shall be prepared in draft at least two months in advance of the TTR in order to allow review, and will serve as the basis for discussions in the TTR. The terminal tripartite review considers the implementation of the project as a whole, paying particular attention to whether the project has achieved its stated objectives and contributed to the broader environmental objective. It decides whether any actions are still necessary, particularly in relation to sustainability of project results, and acts as a vehicle through which lessons learnt can be captured to feed into other projects under implementation of formulation.

Project Monitoring Reporting 113. The Project Manager in conjunction with UNDP CO will be responsible

for the preparation and submission of the following reports that form part of the monitoring process. Items (a) through (f) are mandatory and strictly related to monitoring, while (g) through (h) have a broader function and the frequency and nature is project specific to be defined throughout implementation.

(a) Inception Report (IR)114. A Project Inception Report will be prepared immediately following the

Inception Workshop. It will include a detailed First Year/ Annual Work Plan divided in quarterly time-frames detailing the activities and progress indicators that will guide implementation during the first year of the project. This Work Plan would include the dates of specific field visits, support missions from the UNDP-CO or the Regional Coordination Unit (RCU) or consultants, as well as time-frames for meetings of the project's decision making structures. The Report will also include the detailed project budget for the first full year of implementation, prepared on the basis of the Annual Work Plan, and including any monitoring and evaluation requirements to effectively measure project performance during the targeted 12 months time-frame.

115. The Inception Report will include a more detailed narrative on the institutional roles, responsibilities, coordinating actions and feedback mechanisms of project related partners. In addition, a section will be included on progress to date on project establishment and start-up activities and an update of any changed external conditions that may effect project implementation.

116. When finalized the report will be circulated to project counterparts who will be given a period of one calendar month in which to respond with comments or queries. Prior to this circulation of the IR,

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the UNDP Country Office and UNDP-GEF’s Regional Coordination Unit will review the document.

(b) Annual Project Report (APR)117. The APR is a UNDP requirement and part of UNDP’s Country Office

central oversight, monitoring and project management. It is a self -assessment report by project management to the CO and provides input to the country office reporting process and the Multi-Year Funding Framework/Results Oriented Annual Report, as well as forming a key input to the Tripartite Project Review. An APR will be prepared on an annual basis prior to the Tripartite Project Review, to reflect progress achieved in meeting the project's Annual Work Plan and assess performance of the project in contributing to intended outcomes through outputs and partnership work.

118. The format of the APR is flexible but should include the following: An analysis of project performance over the reporting period,

including outputs produced and, where possible, information on the status of the outcome

The constraints experienced in the progress towards results and the reasons for these

The three (at most) major constraints to achievement of results AWP, and other expenditure reports (Enterprise Resource

Planning generated) Lessons learned Clear recommendations for future orientation in addressing key

problems in lack of progress

(c) Project Implementation Review (PIR)119. The GEF M&E Unit provides the scope and content of the PIR.The PIR

is an annual monitoring process mandated by the GEF. It has become an essential management and monitoring tool for project managers and offers the main vehicle for extracting lessons from ongoing projects. Once the project has been under implementation for a year, a Project Implementation Review must be completed by the CO together with the project. The PIR can be prepared any time during the year (July-June) and ideally prior to the TPR. The PIR should then be discussed in the TPR so that the result would be a PIR that has been agreed upon by the project, the executing agency, UNDP CO and the concerned Regional Technical Advisor (RTA).

120. The individual PIRs are collected, reviewed and analysed by the RTAs prior to sending them to the focal area clusters at the UNDP/GEF headquarters. The focal area clusters supported by the UNDP/GEF M&E Unit analyse the PIRs by focal area, theme and region for common issues/results and lessons. The Principal Technical Advisors play a key role in this consolidating analysis.

PAGE 39


121. The focal area PIRs are then discussed in the GEF Interagency Focal Area Task Forces in or around November each year and consolidated reports by focal area are collated by the GEF Independent M&E Unit based on the Task Force findings.Quarterly Progress Reports

122. Short reports outlining main updates in project progress will be provided quarterly to the local UNDP Country Office and the UNDP-GEF regional office by the project team. See format attached.

(d) Periodic Thematic Reports 123. As and when called for by UNDP, UNDP-GEF or the Implementing

Partner, the project team will prepare Specific Thematic Reports, focusing on specific issues or areas of activity. The request for a Thematic Report will be provided to the project team in written form by UNDP and will clearly state the issue or activities that need to be reported on. These reports can be used as a form of lessons learnt exercise, specific oversight in key areas, or as troubleshooting exercises to evaluate and overcome obstacles and difficulties encountered. UNDP is requested to minimize its requests for Thematic Reports, and when such are necessary will allow reasonable timeframes for their preparation by the project team.

(e) Project Terminal Report124. During the last three months of the project the project team will

prepare the Project Terminal Report. This comprehensive report will summarize all activities, achievements and outputs of the Project, lessons learnt, objectives met, or not achieved, structures and systems implemented, etc. and will be the definitive statement of the Project’s activities during its lifetime. It will also lay out recommendations for any further steps that may need to be taken to ensure sustainability and replicability of the Project’s activities.

(f) Technical Reports (optional)125. Technical Reports are detailed documents covering specific areas of

analysis or scientific specializations within the overall project. As part of the Inception Report, the project team will prepare a draft Reports List, detailing the technical reports that are expected to be prepared on key areas of activity during the course of the Project, and tentative due dates. Where necessary this Reports List will be revised and updated, and included in subsequent APRs. Technical Reports may also be prepared by external consultants and should be comprehensive, specialized analyses of clearly defined areas of research within the framework of the project and its sites. These technical reports will represent, as appropriate, the project's substantive contribution to specific areas, and will be used in efforts

PAGE 40


to disseminate relevant information and best practices at local, national and international levels.

(g) Project Publications (optional)126. Project Publications will form a key method of crystallizing and

disseminating the results and achievements of the Project. These publications may be scientific or informational texts on the activities and achievements of the Project, in the form of journal articles, multimedia publications, etc. These publications can be based on Technical Reports, depending upon the relevance, scientific worth, etc. of these Reports, or may be summaries or compilations of a series of Technical Reports and other research. The project team will determine if any of the Technical Reports merit formal publication, and will also (in consultation with UNDP, the government and other relevant stakeholder groups) plan and produce these Publications in a consistent and recognizable format. Project resources will need to be defined and allocated for these activities as appropriate and in a manner commensurate with the project's budget.

Independent Evaluation127. The project will be subjected to at least two independent external

evaluations as follows:-

Mid-term Evaluation128. An independent Mid-Term Evaluation will be undertaken at the end

of the second year of implementation. The Mid-Term Evaluation will determine progress being made towards the achievement of outcomes and will identify course correction if needed. It will focus on the effectiveness, efficiency and timeliness of project implementation; will highlight issues requiring decisions and actions; and will present initial lessons learned about project design, implementation and management. Findings of this review will be incorporated as recommendations for enhanced implementation during the final half of the project’s term. The organization, terms of reference and timing of the mid-term evaluation will be decided after consultation between the parties to the project document. The Terms of Reference for this Mid-term evaluation will be prepared by the UNDP CO based on guidance from UNDP-GEF Regional Coordination Unit.

Final Evaluation129. An independent Final Evaluation will take place three months prior to

the terminal tripartite review meeting, and will focus on the same issues as the mid-term evaluation. The final evaluation will also look at impact and sustainability of results, including the contribution to

PAGE 41


capacity development and the achievement of global environmental goals. The Final Evaluation should also provide recommendations for follow-up activities. The Terms of Reference for this evaluation will be prepared by the UNDP CO based on guidance from the UNDP-GEF Regional Coordination Unit.

Audit Requirements130. As with all nationally executed projects, the project must be audited

periodically. GEF funded projects with an annual expenditure exceeding US$100,000 must be audited annually. The objective of the audit is to provide the UNDP Administrator with the assurances that UNDP resources are being managed in accordance with:a) The financial regulations, rules, practices and procedures

prescribed for the project:b) The project document and work plans, including activities,

management and the project implementation arrangements, monitoring, evaluation, and reporting provisions

c) The requirements for execution in the areas of management, administration and finance.

131. While the Government is responsible for ensuring that the audit requirements are met, the project may be subject to audit by the auditors of UNDP, and UNDP shall have right of access to the relevant records.

132. The Auditors for the project will be appointed as directed by the Government of India. The Government must ensure that the audit is performed in accordance with the generally accepted standards and ensure that the audit report is duly reviewed and will reach UNDP Headquarters via the UNDP India office by 30 April of each year.

Learning and Knowledge Sharing133. Results from the project will be disseminated within and beyond the

project intervention zone through a number of existing information sharing networks and forums. In addition:

The project will participate, as relevant and appropriate, in UNDP/GEF sponsored networks, organized for Senior Personnel working on projects that share common characteristics. UNDP/GEF shall establish a number of networks, such as Integrated Ecosystem Management, eco-tourism, co-management, etc, that will largely function on the basis of an electronic platform.

The project will identify and participate, as relevant and appropriate, in scientific, policy-based and/or any other networks, which may be of benefit to project implementation though lessons learned.

PAGE 42


134. The project will identify, analyze, and share lessons learned that might be beneficial in the design and implementation of similar future projects. Identify and analyzing lessons learned is an on- going process, and the need to communicate such lessons as one of the project's central contributions is a requirement to be delivered not less frequently than once every 12 months. UNDP/GEF shall provide a format and assist the project team in categorizing, documenting and reporting on lessons learned. To this end a percentage of project resources will need to be allocated for these activities.

Annex H-2: INDICATIVE MONITORING AND EVALUATION WORKPLAN AND CORRESPONDING BUDGET

Type of M&E activity

Responsible Parties Budget US$Excluding project team Staff time

Time frame

Inception Workshop

Project Coordinator UNDP CO UNDP GEF

34,000Within first six months of project start up

Inception Report Project Team UNDP CO None

Finalized within one month of the IW

Measurement of Means of Verification for Project Purpose Indicators

Project Coordinator will oversee the hiring of specific studies and institutions, and delegate responsibilities to relevant team members

To be finalized in Inception Phase and Workshop. Indicative cost 50,000

Start, mid and end of project

Measurement of Means of Verification for Project Progress and Performance

Oversight by Project GEF Technical Advisor and Project Coordinator

Measurements by regional field

To be determined as part of the Annual Work Plan's preparation. Indicative cost 250,0009

Annually prior to APR/PIR and to the definition of annual work plans

9 Due to capacity constraints in the A&N Islands for carrying out identification of biodiversity and mainstreaming conservation indicators and technical assessments on the baseline and subsequent assessment of all indicators, it will be necessary to obtain services of consultants from the mainland, as well as outside of India. This entails a high travel cost and substantive amount for the consultant fees.

PAGE 43


(measured on an annual basis)

officers and local IAs

APR and PIR Project Team UNDP-CO UNDP-GEF

None Annually

TPR and TPR report

Government Counterparts

UNDP CO Project team UNDP-GEF Regional

Coordinating Unit

None Every year, upon receipt of APR/PIR

Steering Committee Meetings

Project Coordinator UNDP CO

None Following Project IW and subsequently at least once a year

Periodic status reports

Project team 5,000 To be determined by Project team and UNDP CO during Inception Phase and agreed at IW

Technical reports

Project team Hired consultants as

needed

10,000 To be determined by Project Team and UNDP-CO

Mid-term External Evaluation

Project team UNDP- CO UNDP-GEF Regional

Coordinating Unit External

Consultants (i.e. evaluation team)

64,000 At the mid-point of project implementation.

Final External Evaluation

Project team, UNDP-CO UNDP-GEF Regional

Coordinating Unit External

Consultants (i.e. evaluation team)

84,000 At the end of project implementation

PAGE 44


Terminal Report Project team UNDP-CO External Consultant

NoneAt least one month before the end of the project

Lessons learned Project team UNDP-GEF Regional

Coordinating Unit (suggested formats for documenting best practices, etc)

24,000 (average 3,000 per year)

Yearly

Audit UNDP-CO Project team

16,000 (average 2000 per year)

Yearly

Visits to field sites (UNDP staff travel costs to be charged to IA fees)

UNDP Country Office

UNDP-GEF Regional Coordinating Unit (as appropriate)

Government representatives

30,000 (average 2 visits per year)

Yearly

TOTAL INDICATIVE COST Excluding project team staff time and UNDP staff and travel expenses

US$ 567,000

Annex H-2: IMPACT MEASUREMENT TEMPLATE These indicators are to be from the Logframe Matrix and are related to the measurement of global benefits achieved by the project rather than project implementation progress. They will to be fine tuned and detailed in the Inception Workshop).

Key ImpactIndicator

Target Means of Verification

Sampling

frequency

Location

Area under eco-tourism, where mainstreaming of environment conservation demonstrated.

At least 500 hectares comprising resorts and beach areas where tourism is a primary economic activity. Annual targets to be set in year 1 and reviewed every successive year.

Project M&E reports, field visits and specific studies on key impact parameters

In years 3, 4, 5 and 6

All pilot sites for the sector

PAGE 45


Key ImpactIndicator

Target Means of Verification

Sampling

frequency

Location

.Area under sustainable agriculture where mainstreaming of diversity conservation and eco-friendly practices demonstrated.

At least 4,500 hectares. Annual targets to be set in year 1 and reviewed every successive year.

Project M&E reports, field visits and specific studies on key impact parameters.

In years 3, 4 5 and 6

All pilot sites for the sector

Area under sustainable coastal and reef fisheries

At least 1250 sq. km. Baselines to be established by year 2. Annual targets to be set in year 2 and reviewed every successive year.

Project M&E reports, field visits and specific studies on key impact parameters.

In years 4 5, 6 and 7.

All sites for the sector

Review of existing policies (including fiscal), plans, capacities and judgements with respect to environmental sustainability in A&N Islands.

Annual targets for reviews as well as benchmarks to review progress and impact to be set in year 1 and reviewed every successive year.

Project M&E reports, specific review reports, and government documents.

As per annual workplan targets.

All review documents

Development and dissemination of awareness generation materials.

Annual targets as well as benchmarks to review progress and impact to be set in year 1 and reviewed every successive year.

Project M&E reports, specific materials and government reports.

As per annual workplan targets.

All activities undertaken in the sector.

PAGE 46


PART V. LEGAL CONTEXT

135. This Project Document shall be the instrument referred to as such in Article I of the Standard Basic Assistance Agreement between the Government of India and the United Nations Development Programme, signed by the parties The host country implementing agency shall, for the purpose of the Standard Basic Assistance Agreement, refer to the government co-operating agency described in that Agreement.

136. The UNDP Resident Representative in India is authorized to effect in writing the following types of revision to this Project Document, provided that he/she has verified the agreement thereto by the UNDP-GEF and is assured that the other signatories to the Project Document have no objection to the proposed changes:

a) Revision of, or addition to, any of the annexes to the Project Document;

b) Revisions which do not involve significant changes in the immediate objectives, outputs or activities of the project, but are caused by the rearrangement of the inputs already agreed to or by cost increases due to inflation;

c) Mandatory annual revisions which re-phase the delivery of agreed project inputs or increased expert or other costs due to inflation or take into account agency expenditure flexibility; and

d) Inclusion of additional annexes and attachments only as set out here in this Project Document

PAGE 47


SECTION II : STRATEGIC RESULTS FRAMEWORK AND GEF INCREMENT

PART I: INCREMENTAL COST ANALYSIS

OUTPUT

COST (US$) DOMESTIC BENEFIT GLOBAL BENEFIT

Outc

ome

1: A

gov

erna

nce

cont

ext t

hat r

ecog

nise

s, fa

cilita

tes a

nd p

rom

otes

su

stai

nabl

e de

velo

pmen

t

Baseline (on-going governance activities)=24,000,000

Governance structures and systems prioritise growth in primary economic sectors for job creation. Environmental sustainability is not a major priority in decision-making. Capacities to identify and address environmental sustainability issues in development planning are inadequate.

Alternative= 27,731,000

The alternative will improve the efficiency of Government resource allocation by establishing clear policy structures, improving inter-sectoral coordination, reducing capacity barriers and removing perverse incentives which skew resource allocation decisions.

The sustainability of globally-significant ecosystem resources will be mainstreamed into governance structures, systems and decision-making, thereby establishing biodiversity conservation as an agreed priority in government decision-making.

Increment = 3,731,000, of which: GEF = 991,400GoI cash =2,412,000In-kind= 327,600

PAGE 48


OUTPUT

COST (US$) DOMESTIC BENEFIT GLOBAL BENEFIT Ou

tcom

e 2:

Env

ironm

enta

l sus

tain

abilit

y re

ceiv

es w

ides

prea

d su

ppor

t fro

m th

e Isl

and

com

mun

ityBaseline (Administration information and publicity, ecology awareness and research programmes and NGO environmental awareness programmes)= 1,778,000

Local stakeholders have a limited understanding of the global significance and fragility of the Andamans ecosystem. Environmental conservation is seen as an obstacle to income generation and job creation. Local NGOs undertake environmental awareness projects but these are limited by a lack of financial resources.

Alternative= 2,580,000

Increased awareness of and support for environmental conservation improves community compliance with Government environmental awareness programmes such as waste management and wise use of resources.

The need to conserve globally-significant ecological resources is understood by local communities and widely supported as an integral part of the developmental vision for the Islands. Increased awareness of the ecological fragility of the islands and understanding of key threats reduces incidence of accidental damage to fragile resources such as corals and watersheds.

Increment = 802,000, of which: GEF = 484,000GoI cash= 248,000In-kind = 70,000

PAGE 49


OUTPUT


tcom

e 3A

: Env

ironm

enta

lly-s

usta

inab

le in

com

e-ge

nera

tion

and

job-

crea

tion

in h

igh-

valu

e ag

ricul

tureBaseline (Administration horticulture, crop husbandry, agricultural marketing and associated programmes)= 9,956,000

Agricultural development prioritizes job creation and income generation. Sectoral development strategies emphasise increased value-added from the agricultural sector without comprehensively assessing the ecological consequences of development programmes

Alternative = 10,638,000

Sustainable high-value agricultural strategies improve the long-term viability of agricultural projects and lowers the costs of required inputs such as agrochemicals, while maintaining income-generation and job-creation levels.

Environmentally-sustainable agricultural development strategies mitigate damage to sensitive terrestrial and coastal biodiversity resources from agrochemical run-off and sedimentation. Increased incomes and job creation through sustainable agricultural enterprises reduces ecological pressures such as forest clearance, over-harvesting of marine resources and poaching.

Increment = 682,000, of which:GEF = 283,000GoI Cash = 280,000In-kind = 119,000

PAGE 50


OUTPUT


tcom

e 3B

: Env

ironm

enta

lly-s

usta

inab

le in

com

e-ge

nera

tion

and

job-

crea

tion

in e

co-to

urism

Baseline (Administration tourism development programmes)= 10,670,000

Government tourism development strategies are focused on income-generation and job-creation through ‘big-ticket’ resort developments financed and run by outside investors. Existing tourism operations and incoming investors are largely focused on short-term profits due to a lack of long-term predictability in the policy and planning framework. This focus on short-term profit-making causes significant degradation of sensitive coastal and marine ecological resources.

PAGE 51


OUTPUT


Alternative = 12,651,200

A vibrant, sustainable eco-tourism sector generates long-term jobs and incomes for local communities. The emphasis on clear policy frameworks, developing entrepreneurship and establishing self-regulatory mechanisms within the framework of a coherent medium-long term brand identity ensures that incomes and jobs from tourism will continue to be generated in a sustainable, market-driven way.

Establishing a vibrant, successful tourism sector focused on pristine ecological resources helps ensure that responsible environmental stewardship and minimal ecological impact are key foundation-stones of the tourism sector. Demonstrating that ecological resources such as intact coral reefs and forests, clear coastal waters and pristine beaches have long-term economic value will help to reinforce the ‘win-win’ relationship between ecological sustainability and sustainable livelihoods.

Increment = 1,981,200, of which:GEF = 239,200GoI Cash = 1,666,000In-kind = 76,000

PAGE 52


OUTPUT


Baseline (Administration fisheries development programmes)= 8,890,000

Fisheries activities in the Andamans are focused on selected high-value species. Sectoral management is limited, due to an underlying perception of fisheries resources as ‘limitless’. Sectoral development plans are focused on commercial-scale deep sea fisheries which have limited livelihoods and job creation impacts on local communities.

PAGE 53


OUTPUT


tcom

e 3C

: Env

ironm

enta

lly-s

usta

inab

le in

com

e-ge

nera

tion

and

job-

crea

tion

in c

oast

al a

nd

reef

fish

erie

sAlternative= 9,541,000

Shifting the emphasis from commercial deep-sea trawling to sustainable coastal and reef fisheries will significantly increase the job creation potential of the fisheries sector. Income generation will be more equitable and more evenly spread across communities. Flow-on benefits from value-added processing and marketing development will be more market-driven and less reliant on centralised, Government-sponsored fisheries operations.

A focus on developing sustainable coastal and reef fisheries will enhance the monitoring and management of coastal and reef resources, thereby helping to reduce ecological damage from selective harvesting of key species and unsustainable fisheries methods and equipment. Increasing incomes and generating jobs from coastal resources will reinforce the message that coastal and reef ecosystems are important economic resources which require sustainable management and stewardship. By more clearly establishing intact reefs and coastal areas as economic as well as ecological resources, conservation of these globally-significant resources will be enhanced

Increment = 651,000, of which:GEF = 171,000GoI Cash = 440,000In-kind = 40,000

Baseline = 55,294,000

PAGE 54


OUTPUT


Alternative = 63,141,200PDF Funding = 345,000Total Project = 9,387,200 [of which GEF will contribute 3,388,600 and others 5,998,600]

PAGE 55


PART II: LOGICAL FRAMEWORK ANALYSIS

Component Impact and Process Indicators10

Means of Verification, Impact Indicator Baselines and Targets

Notes and Assumptions

Verifier Baseline TargetProject Objective: Mainstreaming biodiversity into the governance systems and key productive sectors of the Andaman and Nicobar Islands

Biodiversity conservation mainstreamed into the governance systems and key productive sectors of the Andaman and Nicobar Islands (8,249sq.km land area and associated marine zone of approximately 12,000sq.km.) This will specifically include:- At least

500ha of sustainable tourism

Five-year development plans and sectoral programmes outlining development strategies for the respective sectors

Project records, Tourism Department

Current sectoral development strategies and plans do not demonstrate ecological sustainability in any of the key productive sectors.

There is currently no

(Year) Sectoral development strategies in the latest five-year plan demonstrate clear elements of ecological sustainability (Year 8)

The Government continues to play a predominant role in sectoral development, and thus Government development strategies strongly influence the boundaries and direction of economic development

10 Indicators at the Objective and Outcome levels are Impact indicators, indicators at the Output level are Process indicators

56


Component Impact and Process Indicators



Verifier Baseline Target(comprising resorts and beach areas where tourism is a primary economic activity)

- At least 4,500ha of sustainable agriculture

- At least 1,250sq.km. of sustainable coastal fisheries

records, individual resort/tourist company records

Project monitoring, Agricultural Dept records.

Project Monitoring & Fisheries Dept Records

ecotourism

Currently neither farmers nor Agricultural Dept. practice or promote environmentally sustainable agriculture

Currently coastal fisheries are not managed for sustainability by communities or the Fisheries Dept.

Indicators of The impacts

57





Verifier Baseline Targetbiodiversity / ecological impacts

of the December 2004 of tsunami will need to be comprehensively assessed. General assumptions for all marine biodiversity impact indicators include: no warming of seas due to climate change and for all biodiversity indicators, no further extreme natural disasters or weather

58





Verifier Baseline Targetevents

1. Live coral cover

Monitoring surveys by project Y1, Y3, Y6 & Y8

Remote sensing time series data

Pre-tsunami estimate of dead coral is 36% of total coral in A&N which is considered healthy (based on there natural mortality and growth rates) Dorairaj et al. 1997

Maintain ratio of live to dead coral or increase to ecologically sustainable levels pre-tsunami levels

No sudden major increase in harvesting of reef species or damage by commercial trawlers

2. Reef area occupied by Acanthester sp., a starfish which predates on coral


<5% coverage in surveyed areas (e.g. Wandoor) pre-tsunami

Maintain Acanthester population to < 5% of reef area (measured in terms of area occupied)

59





Verifier Baseline Target3. Populations of selected key harvested reef fish species including 3-5 keystone species (groupers, sharks, rays, snappers and ornamental fish such as Zebra shark, angel fish, coral bream


Individual species population data are not available.

Total biomass of reef fish is estimated at 3 tons/ha, or some 2,500 tons of reef fish/year for entire A&N (D.V. Rao, PDF-B)PDF-B indicates that naturally 42% of reef fish population constitute prey for

Ecologically viable populations of harvested reef species.

Harvesting levels capped at 10% of reef fish stock.

Ensure prey reef fish population is adequate to maintain key wild predator populations

Populations of key species will be assessed on priority basis in Y1.

Over-harvesting by outsiders effectively controlled by Coastal Guards and Fisheries Department

Target populations are not affected by disease or pests

60





Verifier Baseline Targetother wild species

Outcome 1: A governance context that recognises, facilitates and promotes sustainable development.

IMPACT ON RESPONSE MEASURES:Ecological sustainability issues are clearly identified, assessed and addressed in all Territorial Administration development plans and programmes.

VerifierFive-year development plans and other relevant documents detailing Territorial development initiatives

BaselineLimited reference to ecological sustainability in major plans and programmes

Target (Year)All key development plans and programmes address ecological sustainability issues in a substantive manner (Year 5)

61





Output 1.1: A comprehensive review of existing policies, legislation and procedures in the Territorial Administration, to identify critical barriers to environmental sustainability

Policy review completed and recommendations implemented

Copy of policy review document/ report and minutes of Steering Committee meeting accepting it.Project progress reports indicating implementation of recommendations

Recommendations for removal of policy barriers are implemented promptly and thoroughly

Output 1.2: Clear, comprehensive and broadly-supported policy frameworks (including development guidelines, environmental standards and regulations) for the tourism, agriculture and fisheries sectors, to ensure that resource use and economic development are sustainable.

Policies and guidelines developed using participatory and multi-stakeholder consultative processes and formally adopted by the Territorial Administration

Documentation of sectoral policies (e.g. report or Administration policy document) and notice of gazettement or other record of adoption by the Territorial Administration

The Andaman & Nicobar Department of Environment and Forests supports the three sector departments to include environmental concerns in their respective guidelines and policy frameworks. It also leads the process of developing/modifying environmental

62





policy frameworks.

Participatory policy formulation processes increases private-sector and community understanding of and support for revamped policies.

Output 1.3: A comprehensive review of land-use planning and zonation system (including regularization of land tenure), to enable that sectoral production and livelihood activities are undertaken in appropriate areas of the Islands, and to ensure the protection of environmentally-sensitive areas such as watersheds, protected forests, tribal areas and critical wildlife habitats.

Land-use planning and zonation system implemented and operational

Documented organisational structure, job descriptions, detailed plan of work with quantifiable targets and projected outputs, operational budgets of land-use planning unit, samples of land-use plans or zonation maps produced

Territorial Administration line agencies and local government (Panchayat) representatives provide full cooperation in implementing the land-use planning process.

63





Output 1.4: Reviews of existing fiscal incentives and subsidy systems, to ensure the long-term viability of economic development strategies and to support efforts for removal any economic distortions that encourage unsustainable resource use.

Fiscal review completed, and recommendations implemented

Copy of reports reviewing fiscal incentives and subsidies and minutes of Steering Committee meeting accepting it.

Project progress reports indicating implementation of recommendations.

Political pressures do not impede review of subsidies.

The A&N Administration through the Project Review and Steering Committees ensures economic distortions and unsustainable resource use patterns linked to fiscal incentives and subsidies are regulated/ minimized and where possible phased out.

Output 1.5: Reviews of governance capacities at the systemic, institutional and individual levels to support

Review completed, and capacity development

Copy of capacity review document and minutes of Steering Committee meeting accepting it.Formal communication from

Rapid turnover of senior-level staff in the Territorial

64





formulation and implementation of a comprehensive organisational strengthening and capacity development strategy.

strategy accepted

Territorial Administration indicating adoption of the proposed capacity development strategy

Administration inhibits development of adequate capacities at key decision-making levels.

Output 1.6: Development of targeted sectoral capacity development strategies for key economic sectors such as tourism, high value agriculture and fisheries, to remove capacity barriers to sustainable development in these productive sectors.

Sectoral capacity development strategies implemented

Copies of sectoral capacity development strategies.Project progress reports indicating implementation of sectoral capacity development activities

Output 1.7: Strengthening of monitoring and enforcement capacities where required, to ensure that resource guardians have sufficient capacities to manage and protect important environmental resources..

All identified capacity gaps overcome

Project progress reports indicating progress on strengthening monitoring and enforcement capacities

GoI provides sufficient resources for capacities to be strengthened in all key line agencies.

65





Outcome 2:Environmental sustainability receives widespread support from the Island community.

IMPACT ON RESPONSE MEASURES:Ecological sustainability regularly features in general public discussions of developmental plans and projects, e.g. in media reports, speeches and public fora.

VerifierReviews of a sampling of local newspaper reports to determine frequency of mention.

BaselineTo be assessed during project inception

Target (Year)10% improvement by year 2, 25% improvement by year 4, 50% improvement by year 6

66





Impact on Pressures:Local community involvement in environmental awareness campaigns, and support for environmental NGOs

VerifierTotal number of individuals involved in public campaigns, membership of environmental NGOs or levels of public financial support for campaigns or organisations

BaselinePeople are aware of sustainability and conservation issues but are not actively engaged .There are 4 NGOs working towards sensitizing people towards watershed management and nature conservation activities (Jayaraj and Andrews 2005).

Target (Year)30% rise from baseline in individual involvement or financial support (Year 5)50% rise in individual involvement or financial support (Year 8)

67





IMPACT ON BEHAVIOUR:

Island community demonstrate increasingly responsible behaviour in relation to environmental sustainability (see specific indicators below)

VerifierGovernment data and project surveys & monitoring reports

Forest department reports

Community feedback

BaselineSee baselines for specific indicators (a)- (d) below

TargetSee targets below for specific indicators(a) – (d)

Notes & AssumptionsLevel of participation and acceptance of various regulations translated into real and lasting behavioural change that ensures environmental sustainability

68





a) Rate of voluntary participation of community members in biodiversity conservation activities measured through rate of formation of community sustainable resource management committees and participation in committees

VerifierProject reports, Forest department records, community microplans for natural resource management

BaselineNo such committees or voluntary participation in conservation and sustainable use although there is some awareness of environmental sustainability issues

TargetRelevant committees established in demonstration sites with 25% of community participation by Y4 and 35% by Y8

b) Reduction in the number of fines and recorded incidents of illegal and/or unsustainable extraction of threatened biodiversity resources including encroachment

Forest Department Divisional Records

Community records

Project monitoring in target areas

Data to be obtained after selection of project sites in Y1

Reduction in the number of recorded incidents of unsustainable use/fines for illegal activities by 20% in Y4 and 80% in Y8

c) Reduction of unsustainable extraction of (i)

Fisheries No data available on

Mollusc harvest <

Sustainable harvesting

69





marine molluscs & (ii) mangrove plants

Dept. recordsForest Dept recordsProject surveys in project sitesCommunity records

Project surveys & Remote sensing time series data on area of mangrove cover

extraction rates of mollusks but total estimated mollusc biomass for A&N is 135 tons (Subba Rao PDF-B)

Extraction of live wood from mangroves banned but some extent of harvesting continues.

Total mangrove cover in Andamans is 789 km2 (Forest Survey of India 2001) and 16 mangrove

15 tons/year (estimated sustainable harvest level)

Reduction of unsustainable extraction of mangroves by 50% in Y4 and 75% in Y8

Community composition includes full complement of 16 mangrove species

rates reported in PDF-B studies to be checked and revised if required

70





species. Mangrove cover declined c. 100 km2 between 1981-1991 to 973 km2 and declined a further 180 km2 from 1991-2001

50% or higher reduction in rate mangrove cover loss over next decade

d) Level of adoption and acceptance of regulatory frameworks and tools for sustainable use

Forest & Fisheries Dept records. Project monitoring & surveys

Weak regulatory tools or voluntary compliance with existing regulations

Community-based regulation frameworks and tools in place and functioning through local natural resource management committees in project sites. (1 by Y3, 2 by Y5, 3 by Y8)

71





Output 2.1: Develop and demonstrate general public awareness programmes such as nature camps, nature walks and environmental workshops for all age groups

Programmes implemented

Project progress reports and terminal reports from individual awareness programmes

Output 2.2: Design and publish a weekly, full-page environmental awareness column in a Government-published Island newspaper, which provides information on local, national and international environmental issues as well as quizzes, competitions and other interactive forums.

Newspaper columns published regularly

Copies of published newspaper columns, and project progress reports indicating number of columns published per year

Output 2.3: Establish and train a network of environmental education activators and educators, focusing on teachers, youth and women’s groups.

Network of activators and educators established and active.

Network annual reports documenting number of members and activities undertaken

Output 2.4: Develop awareness materials such as video presentations, posters and booklets, to provide easily-accessible information on the environment and ecology of the Islands, for the local

Awareness materials developed and disseminated

Samples of awareness materials, project progress reports indicate numbers of copies distributed and information on recipients.

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population.Output 2.5: Develop and demonstrate a programme of alternative awareness-raising activities, using approaches such as street theatre and puppetry, to reach out to less-literate local communities and younger children.

Programme designed and implemented

Terminal report of awareness-raising programme, audio-visual documentation of activities undertaken and records of numbers, dates and locations of activities undertaken in project progress reports

Output 2.6: Organise seminars and discussions on environmental themes for Administration officials, private-sector leaders and other senior-level stakeholders and technical specialists, to discuss and assess specific environmental issues and threats and to build consensus for environmentally-sustainable development.

Seminars and discussions held with widespread and active participation

Seminar reports or minutes including lists of participants, project progress reports indicate dates and themes of seminars/ discussions as well as numbers of participants.

Senior-level stakeholders are available to attend seminars and discussions.

Output 2.7: Produce and distribute brief, targeted and informational videos and associated pamphlets for in-bound tourists on ships and aircraft, to raise awareness of the sensitive and valuable ecology of the Islands and to

Videos and pamphlets designed, produced and distributed

Samples of videos and pamphlets, documentation of distribution and broadcasting by airlines and shipping lines

Vessel operators (airlines and shipping lines) provide adequate cooperation in disseminating

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educate tourists on the rules and regulations governing environmentally-friendly tourism.

awareness materials.

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Outcome 3:Environmentally-sustainable, income generating jobs created in the three priority sectors.

IMPACT ON PRESSURES:Total number of local residents convicted of forest encroachment or poaching of reef resources

Verifier

Government data

BaselineCurrent rate (latest annual figures) to be established during inception

Target (Year)Reduction in number of convictions by 20% (Year 4) and 80% (Year 8)

IMPACT ON RESPONSE MEASURES:Rate of environmentally sustainable job creation in key economic sectors (measured overall)

Verifier

Government data

Baseline

Job creation figures in year 1

Target (Year)

Increase in job creation by 10% (year 4), and by 25% (year 8)

Output 3A.1: Feasibility Feasibility study Final report received and accepted Sufficiently-

12 Indicators at the Objective and Outcome levels are Impact indicators, indicators at the Output level are Process indicators

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study to identify crop types suitable for development, on the basis of ecological compatibility, production cost and market competitiveness, projected returns and job-creation potential.

completed and report produced

for implementation by the Steering Committee and Territorial Department of Agriculture

feasible crop types exist and are successfully identified.

Output 3A.2: A supply chain review to identify and overcome input inefficiencies (raw materials and agricultural inputs, transport and logistics, processing, clearance, documentation and quality assurance) and to identify potential opportunities to increase local value-added through upstream processing, packaging and marketing.

Review completed and report produced

Final report received and accepted for implementation by the Steering Committee and Territorial Department of Agriculture

Output 3A.3: Establishment of agricultural sector producers’ and traders’ associations (under the auspices of the Andaman and Nicobar Islands Chamber of Commerce), to facilitate intra-industry and industry-Administration cooperation in instituting norms and

Association established and active

Copy of articles of association and charter membership list. Minutes of association meetings and annual reports

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guidelines for sustainable production.Output 3A.4: An entrepreneur training programme to catalyze the development of locally-owned small- and medium-sized high-value agricultural enterprises and cooperatives

Programme successfully implemented

Programme final report, indicating numbers of entrepreneurs trained and enterprises established/ strengthened

Output 3A.5: Microfinance and small-business finance programmes to provide start-up and expansion capital for local enterprises and cooperatives in the high-value agriculture sector


Programme annual and final reports, indicating number of loans and total funding disbursed.

Project progress reports indicating strengthening of environmental criteria while screening of proposals by microfinance institutions.

Programme funding is made available via financial institutions such as ANIDCO, NABARD and A&N State Cooperative Bank and scheduled banks.

Output 3B.1: Review and update existing eco-tourism master-plans and proposals Tourism review, to prepare an updated eco-tourism sectoral strategy for the A&N Islands

Updated eco-tourism strategy developed and accepted

Copy of strategy document, minutes of Steering Committee meeting accepting and endorsing report, documentation from A&N Tourism Department indicating acceptance of findings

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that reflects current industry standards and practices, global best-practice for eco-tourism and the latest scientific knowledge on sustainable tourism and low-impact tourism strategies.Output 3B.2: Facilitate an active tourism association, encompassing tourism-sector players such as hoteliers, resort operators, tour agencies and tour guides, transport operators, dive operators and restaurateurs. This Association will work with the Administration to develop and implement clear and comprehensive guidelines and standards for sustainable tourism, and will act as a self-regulating mechanism for the tourism industry.

RTA established and active

Copy of articles of association (including clear description of self-regulation mechanisms) and charter membership list. Minutes of association meetings and annual reports

Output 3B.3: Establish a tourism industry entrepreneurship development programme in partnership with IP&T and ANIIDCO) to identify and support small- and


Programme final report, indicating numbers of tourism entrepreneurs trained, types of training provided and enterprises established/ strengthened

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medium-scale domestic tourism enterprises, focusing on secondary and support services such as local guides, small-scale boat and dive operators, home-stay programmes, handicraft and food and beverage stores. The programme will provide assistance in areas such as training on market feasibility assessments, business management, product development and marketing, microfinance and small-scale finance.Output 3B.4: Establish and support broad-based, participatory process to devise and market a tourism identity for the Andaman Islands that highlights and celebrates ecological diversity and environmental sustainability as key elements.

‘Brand Andamans’ developed and adopted

Branding strategy document, progress reports indicating implementation of branding support activities

Output 3C.1: Work with existing island-wide coastal and reef fisheries management plan, to ensure that future

Management plan developed and implemented

Copy of management plan, minutes of Steering Committee meeting indicating acceptance and endorsement, documentation from

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fisheries operations are environmentally-sustainable.

Fisheries Department indicating acceptance of plan recommendations. Project progress reports indicating progress of plan implementation

Output 3C.2: A fisheries sector development to assist local fishing communities in upgrading equipment, technical skills and resources to meet sustainability requirements while maintaining or increasing incomes and job-creation in the sector.

Plan developed and implemented

Copy of development plan, minutes of Steering Committee meeting indicating acceptance and endorsement. Project progress reports indicating progress of plan implementation, number of fisheries operators assisted and types of assistance/ improvement provided

Sector incomes and jobs can be maintained while staying within fisheries stock carrying capacity limits

Output 3C.3: Supply chain review and upstream development plan to increase value-added from fisheries operations through improved handling, value-added processing and improved marketing links with key markets.

Review completed and plan implemented

Copy of review document and development plan, and minutes of Steering Committee meetings indicating acceptance and endorsement.

Adequate Government resources are made available for full implementation of upstream development plan.

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Outcome 4: Effective project monitoring and evaluation, lessons learning and adaptive management

IMPACT ON RESPONSE MEASURES:

N.A.

VerifierAPRs, PIRs, TPRs, PSC and PTC records; MTE & Terminal Evaluation Reports

BaselineN.A.

Target (Year)

Output 4.1Effective project management systems established and functioning including mechanisms to ensure adaptive management

N.A. Systems developed and agreed during Inception Phase after Project Team recruited and key management and technical committees in place. Periodic review and revision of effectiveness of management systems as part of regular project cycle management. Verified through: Inception Workshop Report,AWPs, APR/PIR/TPR and other standard project and UNDP/GEF planning and monitoring procedures.

Output 4.2 Detailed project implementation plan with clear targets and milestones prepared and revised periodically according to agreed schedule

N.A. PIPs & monitoring reports

Output 4.3: A monitoring and N.A. Review and refining of logframe at

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evaluation strategy and financing plan developed and applied facilitating effective adaptive project management

the start of Inception Phase, including development of quantifiable impact indicators at outcome level together with detailed M&E strategy developed by end of Inception Phase. All relevant baselines established during Inception Phase. Periodic work and budget planning. Verified through Inception Workshop Report, AWPs, PIPs, APR/PIR/TPR and other standard project and UNDP/GEF planning and monitoring procedures.

Output 4.4: Strategies developed and applied for regular analysis, documentation and dissemination of lessons learnt, including mechanisms to for feedback to relevant stakeholders to ensure effective adaptive project management as well as for wider dissemination nationally and internationally.

N.A. Strategies described and their application monitored. Verified through Inception Workshop Report, PIPs, APR/PIR/TPR and other standard project and UNDP/GEF planning and monitoring procedures. Lessons learnt documents. Dissemination mechanisms.

SECTION III : TOTAL BUDGET AND WORKPLANAward ID: 00043235Award Title: PIMS 565 BD FSP: A&N Andaman and Nicobar Islands: EcologicallyProject ID: 00050350Project Title: PIMS 565 BD FSP: Andaman and Nicobar Islands: Ecologically-Sustainable Island DevelopmentImplementing Partner/ Executing Agency A&N Administration

GEF Outcome/Atlas Activity

Responsible Party/Implementing Agency

Source of Funds

ERP/Atlas Budget Description

Amount 2006 (USD)

Amount 2007 (USD)

Amount 2008 (USD)

Amount 2009 (USD)

Amount 2010 (USD)

Amount 2011 (USD)

Amount 2012 (USD)

Amount 2013 (USD)

TOTAL

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OUTCOME 1: Governance Context

Andaman & Nicobar

Administration

GEF 71200 International Consultants

26,667 41,667 41,666 15,000 15,000 140,000

71300 Local Consultant 58,534 58,534 22,532 9,200 9,200 158,00071600 Travel 19,200 26,200 17,200 14,200 8,200 85,00072100 Contractual Services

Companies96,000 126,000 46,000 42,000 30,000 340,000

72300 Materials & Goods 5,250 5,250 5,250 3,250 2,000 21,00074500 Misc. expenses 67,800 67,800 56,800 55,000 247,400 Sub Total 273,451 325,451 189,448 138,650 64,400 0 0 0 991,400

OUTCOME 2: Awareness & Attitudes

Andaman & Nicobar

Administration

GEF 71300 Local Consultant 12,500 12,500 12,500 12,500 4,500 4,500 4,500 4,500 68,00071600 Travel 10,000 10,000 8,000 8,000 2,000 2,000 2,000 2,000 44,00072100 Contractual Services

Companies56,250 56,250 24,750 24,750 6,000 6,000 6,000 6,000 186,000

72300 Materials & Goods 21,500 21,500 12,500 12,500 2,500 2,500 2,500 2,500 78,00072500 Supplies 5,500 5,500 5,500 5,500 2,500 2,500 2,500 2,500 32,00074500 Misc. expenses 23,500 23,500 13,500 13,500 500 500 500 500 76,000 Sub Total 129,250 129,250 76,750 76,750 18,000 18,000 18,000 18,000 484,000

OUTCOME 3: Environmentally Sustainable Income Generation

Andaman & Nicobar

Administration


80,00 35,800 27,800 12,800 4,800 4,800 86,000

71300 Local Consultant 11,000 442,33 33,233 25,733 17,733 17,733 3,335 108,76771600 Travel 18,600 22,266 11,666 8,666 4,666 4,666 670 71,20072100 Contractual Services

Companies122,500 85,833 13,333 13,334 235,000

72300 Materials & Goods 2,000 2,000 4,00072500 Supplies 1,000 1,000 2,00074500 Misc. expenses 9,000 30,000 29,000 27,000 19,000 19,000 1,000 134,000 Sub Total 172,100 221,132 115,032 87,533 46,199 46,199 5,005 693,200

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GEF Outcome/Atlas Activity

Responsible Party/ImplementingAgency

Source of Funds

ERP/Atlas Budget Description

Amount 2006 (USD)

Amount 2007 (USD)

Amount 2008 (USD)

Amount 2009 (USD)

Amount 2010 (USD)

Amount 2011 (USD)

Amount 2012 (USD)

Amount 2013 (USD)

TOTAL

OUTCOME 4: Adaptive Project Management13 and Monitoring and Evaluation14

Andaman & Nicobar

Administration


39,000 15,000 15,000 45,000 15,000 15,000 15,000 51,000 210,000

71300 Local Consultant 62,000 62,000 62,000 82,000 62,000 62,000 62,000 92,000 546,00071600 Travel 26,000 20,000 20,000 28,000 20,000 20,000 20,000 30,000 184,00072100 Contractual

Services Companies

15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 120,000

72300 Equipments 3,750 3,750 3,750 3,750 3,750 3,750 3,750 3,750 30,00072500 Supplies 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 64,00074500 Misc. expenses 10,000 6,000 6,000 12,000 6,000 6,000 6,000 14,000 66,000 Sub Total 163,750 129,750 129,750 193,750 129,750 129,750 129,750 213,750 1,220,000

TOTAL 738,551 805,583 510,980 496,683 258,349 193,949 152,755 231,750 3,388,600

Summary of Funds:GEF 738,551 805,583 510,980 496,683 258,349 193,949 152,755 231,750 3,388,600A&N Administration

1,055,632 1,568,531 1,420,235 682,402 567,150 491,150 146,750 66,750 5,998,600

Total 1,794,183 2,374,114 1,931,215 1,179,085 825,499 685,099 299,505 298,500 9,387,200

13 The total budget for Adaptive Project Management is US$ 653,000, which is ~19.3 % of the total GEF budget14 The indicative budget for Monitoring and Evaluation has been provided in Annex H-2 in page 42, which amounts to US$ 567,000.

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SECTION IV: ADDITIONAL INFORMATION

PART I : CO-FINANCING LETTER

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LETTER OF ENDORSEMENT FROM MINISTRY OF ENVIRONMENT AND FORESTS

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PART II : TERMS OF REFERENCES FOR KEY PROJECT STAFF AND MAIN SUB-CONTRACTS

137. The broad terms of reference for the following are provided below:i. Project Review Committeeii. Project Steering Committeeiii. Project Technical Committeeiv. Project Directorv. Project Manager

138. The terms of reference for the above committees and positions are indicative and will have to be revisited and finalized during the early part of the Project Inception phase with inputs from the relevant key stakeholders.

139. The terms of reference for the project team located at HVADA comprising specialists in high value agriculture, tourism and fisheries sectors; staff ecologist and capacity development specialist; and other full or part-time administrative staff will be developed during the early part of the Project Inception Phase.

Project Review Committee140. Project implementation may be reviewed at Union Territory level by a

Project Review Committee (PRC). The PRC will be headed by the Lieutenant Governor of A&N Islands. Its membership will be determined during the Project Inception Phase.

141. The PRC will ensure that: Project implementation is consistent with national and Territorial

development policies. The Ministry of Home Affairs, Planning Commission and Island

Development Authority at the central level are kept informed about policy implications emerging from the project and lessons for wider replication.

Necessary advice is provided on the request of Project Steering Committee in terms of modification/changes required with respect to policy frameworks as well as financial and institutional systems.

Lessons from project experience are fed into future programming in the Islands.

Facilitation of the interface with national ministries and agencies as and when requested by the Project Steering Committee.

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Make available together with the Project Technical Comittee good practices available from India and outside that are relevant to the project’s scope and areas of intervention are made available to the project.

Project Steering Committee

142. Project implementation will be overseen by a Project Steering Committee (PSC), chaired by the Chief Secretary, which will be responsible for ensuring that the project is implemented in line with the agreed project design.

143. The National Programme Director will serve as Member Secretary. Members are expected to assure continuity in representation (by position) for smooth implementation of the programme. PSC meetings will be held at least twice a year.

144. Key responsibilities of PSC include: To provide general oversight and policy direction to the project To approve the Project Implementation Plan and the project’s annual

plans and budget allocations; To ensure project is implemented in accordance with agreed project

design and in line with the Project Implementation Plan to be developed during the Inception Phase and the more detailed Annual Workplans & Budgets

To approve the selection process and appointment of a selection committee for recruiting key Project Staff such as the Project Manager and any major subcontracts and consultancies, comprising amongst others, representatives from PSC, MoEF and UNDP. The committee should have 5-6 people and be chaired by the PSC Chairman or his representative. Recruitment shall be in accordance with the relevant government and UNDP rules.

The PSC is also empowered to constitute additional sub-committees to address specific issues, such as a small Management Committee to oversee the day to day management of the project. The committee could be chaired by the Chairman of the PSC or his representative, with members drawn from key partner agencies from A&N as well as MoEF and UNDP. The TORs for the Management Committee shall be developed and agreed during the early part of the Inception Phase.

Promote inter-sectoral coordination and collaboration to support project activities;

Coordinate with all relevant stakeholders nationally and locally to avoid duplication of activities;

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Communicate the Annual Progress Reports (APR) prior to the annual Tripartite Review Meetings;

Review project performance and major findings and recommend mid-course corrections, if any,

Ensure that the project strategies and plans to remain relevant to the territorial and local contexts;

Support replication or scaling up of successful actions. Steering committee members are to serve as the focal point for their

departments and take any project-specific issues for action or as maybe appropriate.

Project Technical Committee

The Project Technical Committee (PTC) will be constituted on the recommendation of the Project Steering Committee. The PTC will comprise scientific and technical experts on the Islands’ ecology, economy and social structure and environment; as well as experts from the 3 key sectors covered by the project, namely tourism, fisheries and agriculture. It may also include private-sector leaders from these key economic sectors as well as individuals with expertise on the Islands’ development and policy framework. The Technical Committee will provide input into project management by:

Providing the technical inputs and guidance required to achieve the project’s outcomes and objectives

Provide technical inputs and guidance for the development of an effective M&E system for the project in line with UNDP/GEF requirements, including the development of adequate baselines for M&E, measurable impact and performance indicators, and methods of measuring indicators regularly

Recommend how M&E findings are to be applied to project management where relevant and monitor the process

Provide inputs into the terms of reference for technical studies Review the reports of technical studies and project study reports; Assessing technical outputs such as policy documents and guidelines; Making recommendations on possible solutions to problems

encountered; Recommending best practices from other initiatives in India and

elsewhere.145. The Technical Committee will be kept informed of project progress and

outputs on a circulation basis, via electronic mail or other suitable mechanisms. Formal meetings of the Technical Committee will be held

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on a yearly basis. Other ad-hoc meetings may also be held, upon invitation by the Project Steering Committee when required.

Project Director146. The Project Director will be appointed by Project Steering Committee

with approval form MOEF as may be appropriate. The overall responsibility for managing and implementing of the project will rest with the Project Director, who will be supported by a Project Management Unit comprising Project Manager and a team of specialists. Key responsibilities include:

Guide and supervise the Project Manager and team of specialists to prepare the project Implementation Plan and Annual Workplans and and ensure that these are in accordance with the Project Steering Committee guidance, including relevant guidance from Sub-committees established by the PSC;

Ensure coordination within various relevant departments and other technical departments for smooth operation of the project at Union Territory level and at the demonstration sites as well as replication;

Facilitate necessary linkages with NGOs, public representatives, local government and technical and research institutions;

Participate in the relevant project committees constituted under the project;

Act as the government representative of the project during review meetings, evaluations, and discussions;

Support recruitment of candidates, national and international, for long term and short term assignments for the project;

Assume direct responsibility for the government co-finance.

Project Manager 147. The Project Manager will work under the direct guidance of and report

to the Project Director and in accordance with decisions of the Project Steering Committee and its subcommittees, GEF-UNDP provisions. The Project Manager will be selected through procedures defined by the Project Steering Committee and in accordance with government and UNDP rules. Key responsibilities include:

Develop an overall work plan (the Project Implementation Plan) and annual work plans and respective budgets for the specific components as per agreed-to formats for submission to UNDP and consistent with the envisaged outcomes and objectives outlined in the project document;

Participate in the recruitment of, and supervise project team comprising full-time sector specialists and support staff as well as

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subcontractors/consultants, maintaining strong quality control and providing advisory support as required;

Manage the project team including the provision of space for them and ensuring easy access to all project partners and stakeholders;

Manage the project budget including disbursement and verification according to approved work plans and budgets;

Supervise timely preparation and submission of quarterly and annual progress reports, work plans, budgets, and financial plans and reports as required;

Undertake monitoring of the project as specified in the Project Document and in accordance with the M&E system to be further developed during the Inception Phase.

Provide technical inputs to the project and facilitate internal and external evaluations;

Maintain close coordination/linkages with concerned line agencies, NGOs and other field partner agencies and keep them fully informed and supportive of the project activities through formal and informal interactions;

Supervise the procurement and maintenance of project equipment. Act as a regular liaison with the UNDP Country Office, government

agencies, co-funders, and other project partners; Ensure the systematic transfer of responsibilities, authority and

ownership of the project to the relevant institutions and community; Ensure sharing and flow of information in a transparent manner among

all groups as appropriate; Undertake responsibility for resource mobilization and development of

partnerships; Liaise with other relevant projects in India (including GEF projects) for

the sharing of learning and experience and promote the sharing of lessons learning nationally and internationally.

PART III : STAKEHOLDER INVOLVEMENT PLAN

148. The PDF B phase of the project involved an intensive process of stakeholder involvement at different levels, including local communities, Central Government, A&N Administration, NGOs, research institutions and the private sector. Most of the key stakeholders involved in the PDF B phase will also be involved in project implementation.

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149. The stakeholders analysis (para 49) broadly identified the key stakeholders of the project who in addition to the above groups include financial institutions, community-based organisations and public representatives such as the Panchayti Raj representatives. The role of different stakeholders is briefly outlined in Paragraph 49. A detailed Stakeholder Involvement Plan will be developed based on further analysis during the Inception Phase. This will include refining the roles of different key stakeholders from different sectors, their interest in the project and an assessment of their capacity to carry out their roles and engage in different aspects of the project.

150. The engagement could range from being partners in design and implementation of specific activities to involvement in monitoring and evaluation, providing need-based technical advice, formulation of environmentally sound policy frameworks, guidelines and standards, participating in capacity building and training, research, policy influence and facilitating necessary linkages with networks/resource organisations.

151. To this end, the project implementation will include consultative and participatory mechanisms and processes such as participatory appraisal, workshops, multi-stakeholder consultations, participatory monitoring.

152. Mechanisms for learning and knowledge sharing will be established to create a two-way process of sharing lessons and strengthening implementation to encompass different levels ranging from local (e.g., project site, local government) to state, national and international.

153. The mid-term and final evaluation will include stakeholder involvement in the methodology and will project authorities will facilitate interface of the external evaluators with stakeholders.

154. The Project Steering Committee and the PMU will ensure that all key stakeholders are consulted and kept informed about the project’s progress and periodically review their roles and engagement in the project during the course of implementation. The project will seek to facilitate partnerships among different stakeholders to strengthen implementation and for post-project sustainability.

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PART IV: OTHER ADDITIONAL INFORMATION

IV-A: Detailed Map of the Andaman and Nicobar Islands

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IV-B: Global Significance Of The Terrestrial Ecology Of The Andamans – An Overview

FloraFloristically, the Andaman and Nicobar Islands show elements from the Indo-Chinese and Indo-Malayan and 3,552 plant species have been so far reported (Sreekumar, 2002). Dipterocarps are represented in the Andamans group and are absent in the Nicobars (Chaudhuri, 1992). On the other hand, the Nicobars have tree ferns and other groups of plants that are of Indo-Malayan and Indonesian affinities (Lakshminarasimhan & Sreekumar, 1995). Forest types represented outside tidal influence include evergreen, semi-evergreen and deciduous. The flora and the history of early botanical explorations of these islands was first described by Parkinson (1923), a classic which is now outdated. Currently 40 plant species are extremely localised and not known from more than one locality. 85 species are recorded as rare, endangered and threatened, and the World Conservation Monitoring Centre (WCMC) has classified 365 as threatened (WCMC, 1994; Sreekumar, 2002; Andrews & Sankaran, 2002; ANET, 2003). The IUCN Red List of ‘Threatened Species’ lists 397 animals and plant species for the Andaman and Nicobar Archipelago. Of the 630 species of higher plants in the Red Data Book, 46 species occur in the Andaman and Nicobar Islands. In Great Nicobar Island alone, 648 species have been identified of which 13.11% are endemic (Sinha, 1999). Aroids, ferns, mosses and climbers are conspicuous in the semi-evergreen and deciduous forests, besides six species of bamboo and seven species of cane are found in the islands. There are 120 orchid species reported from both island groups, of which seven are endemic and eight are listed as rare and endangered. Gopal (1990) reported 107 epiphyte species for two localities in South Andaman Island alone. Ellis (1987) reported 120 species of pteridophytic flora from 36 families for both island groups and, Tigga and Sreekumar (1996) have reported 76 species of wild edible fruits for the Andaman and Nicobar Islands and of these, 45 are know to be utilised by the indigenous people of both island groups.Dagar and Sharma (1989) have classified the mangrove types into 19 communities and associations on the basis of structure and species composition. A total of 34 exclusive mangrove species among 17 genera and 13 families have been recorded for the Andaman and Nicobar Islands (Dagar et al., 1991).

FaunaThe only primate, the Nicobar crab eating macaque (Macaca fascicularis umbrasa) occurs in the southern group of the Nicobar Islands. Miller (1902) was the first to list most of the mammals for both Island groups. Since then

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over 60 species (of which 33 are endemic), has been reported for both island groups and these include several species of shrews that are endemic, rats and a palm civet cat (Paguma larvata tytleri). Others include bats, 12 species in the Nicobars and 16 in the Andamans (Nath & Chaturvedi, 1975; Chakraborty, 1978; Saha, 1980; Das, 1997; 1998; Aul, 2003; Aul & Vijayakumar, 2003). Invertebrate groups represented include spiders (62 species); the butterfly diversity is very high and a total of 214 species and 236 subspecies in 116 genera have been reported (Khatri, 1993). Among the avifauna, 40% of the 244 species and subspecies of birds are endemic (Sankaran, 1993; 1995; 1996). Other species recorded include, dragonflies (36 species); termites (26 species); holothurians (68 species); chitons (13 species); hermit crabs (38 species); copepods (172 species); amphipods (110 species); polychaetes (186 species); and nematodes (54 species). The giant robber crab (Brigus latro) occurs in the southern Nicobars, in South Bay in Little Andaman and South Sentinel Islands (Davis & Altevogt, 1976; Andrews & Sankaran, 2002; ANET, 2003).The reptile and amphibian fauna comprises over 125 species and is diverse with an assemblage of several species of lizards, geckos, snakes, frogs, toads and four species of marine turtles. The mega species in the Andamans includes the king cobra (Ophiophagus hannah) and the Andaman cobra (Naja sagittifera), water monitor lizard (Varanus salvator), and the saltwater crocodile (Crocodylus porosus). In the Nicobars the mega herpetofauna includes the Malayan box turtle (Cuora amboinensis) on Great and Little Nicobar Islands, the sunbeam snake (Xenopeltis unicolor), the saltwater crocodile (Crocodylus porosus), the reticulated python (Python reticulatus) in the southern Nicobar group, besides several species of pit vipers (Das, 1994; Whitaker & Captain, 2004). Four species of marine turtles, leatherback turtles (Dermochelys coriacea), hawksbill turtle (Eretmochelys imbricata), green sea turtle (Chelonia mydas) and the olive ridley turtle (Lepidochelys olivacea) also feed and nest around the Andaman and Nicobars (Bhaskar, 1993; Das, 1994; Daniels & David, 1996; Das, 1999; Andrews & Whitaker, 1998, ANET, 2003, Krishnan, 2003; Vijayakumar, 2003). Das, (1999) has discussed the biogeography of the herpetofauna for these islands and Andrews, (2001) and Andrews et al. (2001) have discussed the various impacts and threats.

Species Richness, Diversity and Site SpecificsSpecies richness and diversity are very high in areas and islands where more intensive surveys and studies have been conducted. Of the 27 species of reptiles and amphibians recorded for Mount Harriet National Park, 12 species are endemic and these represent 80% recorded for the Andaman Islands (Das, 1997). Chanda (1996; 1997) reported 120 species of moths for the same park and several of these species are new additions to the moth fauna of India. The avifauna in Mount Harriet National Park is also diverse and very important; of the 88 species recorded 49 are endemic (Chanda & Rajan,

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1996). Balachandran (1998) recorded 393 plant and tree species; of which 74 are endemic again this is for Mount Harriet National Park. Gopal (1990) reported 79 epiphytic species on 72 host tree on Mount Harriet; this is in comparison to two other sites sampled where the author found only 29 and 33 epiphytic species. The same author also reported the maximum number of epiphytic species found on one host tree from Mount Harriet. Of the 107 epiphytic species recorded for South Andamans 79 were from Mount Harriet National Park alone. As per Sinha (1999) Great Nicobar Island has 422 genera, belonging to 142 families of which 14 % is endemic. Ellis in 1987 reported 120 species of pteridophytes for the Andaman and Nicobar Islands, 50% of which is from Great Nicobar Island alone. Of the reported 24 species of rare and six common orchids, eight are found only on Great Nicobar Island (Ellis, 1987) and Sinha et al. (1999) in their study of the great Nicobar Island recorded two more endemics, two genera and four species as new records for India. Currently Gupta et al., (2004) have reported four new records from Great Nicobar Island. Aul (2003) reported 13 species of bats for the Rani Jhansi Marine National Park (RJMNP) and this is 50% of the 26 species reported for the Andaman Islands and these included three new records and an endemic. Das (1998) and Deb (1998) have reported on the mammals, birds and the herpetofauna for RJMNP that include endemic species and Maheswaren (1998) has reported on the fauna for each island in the RJMNP. Two freshwater fishes were recorded from Saddle Peak National Park, a secondary freshwater fish Sicyopterus microcephalus could turn out as an endemic, the other species identified, Belobranchus belobranchusa, from the same park is a new record for the islands. Like wise several other species were recorded from Mount Harriet National Park and some of these will be new species descriptions and new records for the islands (Lim & Das, in prep; Ali et. al., 2002).

EndemismThe complex geological history of these islands and the submergence of land bridges leading to isolation have left the islands with high levels of endemism. The widespread distribution of certain species indicates that there was an early evolution and dispersal throughout the archipelago (Das, 1999). Endemism in reptiles and amphibians appear relative to species richness, islands with larger diversity have greater number of endemics (Das, 1999). This is also evident from recent herpetofauna studies conducted in the Nicobar group of islands (Krishnan, 2003; Vijayakumar, 2003). Among the avifauna, 40% of the 244 species and subspecies of birds are endemic (Sankaran, 1996). In mammals, 60% of the 58 species are endemic; these include bats, shrews and rats. Seven amphibians and 16 reptile species are endemic to the Andamans and two amphibians and 15 reptiles are endemic to the Nicobars (Das, 1994, Andrews and Whitaker, 1998; Das, 1999; Andrews & Sankaran, 2002, Krishnan, 2003). The endemic Andaman cobra was only redescribed as a separate species in the mid 1990s (Wüster,

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1996; 1998). More recently, Vijayakumar (2003) has reported three ranidae as new to science from the Nicobar Islands. The two water monitor lizards found in the Andamans and the other in the Nicobars are being reported as two different species and these could be endemics (Das, per. com.). Several species of pit vipers found in the central Nicobar group are not found in the northern and southern groups and several of these could be endemic and are locality specific (Das, 1999; Vijayakumar, 2003; Whitaker & Captain, 2004). Representing 700 genera and belonging to 140 families, 14% of the angiosperm species are endemic (Rao, 1996). Among the non-endemic angiosperms about 40% are not found in mainland India, but have only extra-Indian distribution in South East Asia (Rao, 1996). The only vanilla, Vanilla andamanica, a climbing orchid found in the Andaman Islands is an endemic (Sreekumar, 2002). Of the 648 flora species on Great Nicobar Island, 13.11% are endemic (Sinha, 1999). In butterflies endemism is highly impressive, over 50% (Khatri, 1993). The Andamans have several species of freshwater fishes that are endemic and new to science and, are being reported from specific localities within the Andamans (Lim & Das, in prep; Ali, et al., 2003). Thus, considering the size and area of the islands, loss of habitat leading to extinctions will have far greater consequences in terms of the loss of genetic diversity and also extinction of species (Andrews & Sankaran, 2002; ANET, 2003).

Additional comments:The interesting factor about the rainforests in the Andamans is that they are a mix of elements both from the Indian subcontinent as well as from SE Asia. The endemics originate from both these floras/faunas. The Nicobars have Sundaic elements, and this is probably the only location where all three biogeographical regions are represented.The forests have evolved in the absence of large herbivores, and their structure probably reflects this, in a manner not yet understood. In terms of both species and basal area, they are depauperate compared to the mainland, as is characteristic of island ecosystems. Very little effort has gone into the study of the flora of the rainforests of these islands and the available results suggest that major biological discoveries remain to be made, and this effort has to be made before the ecosystems are destroyed. There are two aspects to this: more inventory effort and ecosystem studies, as well as steps to protect these ecosystems. This is also the only place in the region where islands are far enough from the mainland areas for invasives to have an amplified effect. Control strategies devised here are likely to be replicable over a much wider area.

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IV-C: Interim Judgments of Supreme Court Ruling of May 2002 W.P (C) No. 202 OF 1995UPON hearing the counsel, the Court made the following:O R D E R________________________________________________________________________

After hearing the learned Amicus Curiae, counsel for the parties and taking into consideration the affidavit of the Union of India - Ministry of Environment and Forests in relation to survey of ecosystem of Andaman and Nicobar Islands, the learned Amicus Curiae has made certain suggestions.

There does not seem to be any objection to this Court in accepting the Report of Shri. Shekhar Singh that some modifications have been suggested. We therefore, in the first instance, accept the Report of Shri. Shekhar Singh.

On a query being raised by us, Mr. Altaf Ahmed, learned Additional Solicitor General, appearing for The Union Territory of Andaman & Nicobar Islands on instructions informed the Court that there is no social forestry in Andaman & Nicobar Islands. The wood which is being cut is from the natural forest and plantation of teak, etc. has taken place in the forest, which had been worked and approximating 40,000 cubic metres of wood is cut from the forest annually for the purposes of the small mills the total logging of wood being approximately 1,30,000 cubic metres per year. In the last two years, this figure has come down but the fact remains that instead of resorting to social forestry and thereby providing employment to the people in growing forest at the present moment the natural forests are being cut and the timber sawn.

Andaman & Nicobar Islands is one of the hot spots and is in the eco-fragile area and has, therefore, the eco-diversity thereby has to be preserved. For this, it is essential that the natural forest is protected and re-generation allowed to take place.

We are also informed that the existing saw-mills have a subsisting license valid till 30th March, 2003. The saw-mills and the other wood-based industries in the Andaman & Nicobar Islands are not permitted to cut the trees and supplies to them are made only by the Government itself or through its Corporation. Some of these saw-mills and industries have logs of wood and sawn timber in their stock. It would therefore be iniquitous to deprive them of an opportunity to utilise the stock for which payment has been made to the Government for the purchase of wood. However, it is to be borne in mind that fresh logging of wood must cease immediately.

After taking all facts and circumstances into consideration, we issue the following directions:

1. All felling of trees from the forest of little Andaman Islands, the national park and sanctuaries, the tribal reserves and all other areas shall stand suspended.

2. For the areas in which there are working plans, the Government through the Chief Secretary shall disclose on an affidavit -

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I. The extent of felling and re-generation permitted under these working plans during the last 10 years.

II. The compliance with re-generation/re-plantation/re-forestation targets under the working plans and reasons if any for the shortfall.

3. The working plan of the Andaman & Nicobar Islands should be re-worked on the basis as was applied to the State of M.P. and others, namely that before any felling of trees, there should first be compulsory afforestation/re-generation, the felling permissions would be based upon the extent of re-generation of forest undertaken and not the other way round.

4. No felling of tree (under the working plan or otherwise) shall be permitted for meeting any raw material requirements of the plywood, veneer, black board, match stick or any other wood-based industry.

5. In drawing up the new working plans the Government shall formulate a Committee with one Ecologist who is proficient with the ecology of Andaman.

6. The working plans so formulated shall be placed before this Court within a period of twelve weeks.

7. The trees felled under the working plan in the manner indicated aforesaid should be utilised for the requirements of the local inhabitants.

8. The licenses of all the saw-mills and wood-based industries shall not be renewed after 31st March, 2003. This will not debar the authorities from canceling licenses in accordance with law, if there is no breach of the License Committee by the Licensees before that date.

9. The ecology of the area does not permit any kind of industrial activity for which the wood is likely to be consumed. Therefore, licenses of wood-based industries shall stand cancelled but they will be permitted to exhaust the existing stock till 31st March, 2003.

10. The Union of India if it so adopts and thinks appropriate may take steps for re-locating the dislocated wood-based industries in the main land area anywhere in India as long as it is not within the vicinity of forest area. Henceforth for meeting the local requirements it is only the Government saw-mills which shall operate. No fresh wood or logs shall be given to any of the saw-mills or the wood-based industries till fresh working plans are prepared and submitted to this Court and the approval obtained.

11. With immediate effect, there will be no movement of logs or timber in any form including sawn timber from Andaman & Nicobar Islands to any part of India or anywhere else.

12. Regularisation of encroachments on forest land in any form, including allotment/use of forest land for agricultural or horticultural purposes, shall be strictly prohibited.

13. All those families who have been identified as having encroached on forest land prior to 1978 and have not yet shifted to their allotted

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rehabilitation sites, shall be given one month's notice to vacate their encroachments and shift to the allotted land. Failing this, their allotment shall be cancelled and they shall be forcibly evicted within three months of the deadline being over, without any further claim to land or any other form of rehabilitation. Such notices should be issued within six weeks.

14. Similarly, those among the pre-1978 families that have shifted to their allotted sites but have occupied more land than they were entitled to shall also be given one month's notice to vacate the extra land occupied by them. On the expiry of this notice period, the allotments of those who have not complied with this notice shall be cancelled and they should be forcibly evicted within three months, without any further claim to compensation or land. Such notices should be issued within six weeks.

15. All post 1978 forest encroachments shall be completely removed within three months.

16. For the eviction of encroachers, an effective action plan shall be prepared and implemented under direct supervision, monitoring and control of a Committee under the Chairmanship of the Lt. Governor with Chief Secretary, Principal Chief Conservator of Forests and reputed NGO representatives, its members. The Chief Secretary, Andaman & Nicobar Islands, shall file every month an affidavit about progress of eviction of encroachments.

17. The process of issue of identity cards to all the residents shall be completed within a period of six months.

18. The extraction of sand shall be phased out @ minimum 20% per year on reducing balance basis to bring the sand mining to the level of 33% of the present level of mining within a maximum period of 5 years.

19. The approvals accorded by Ministry of Environment & Forests under the Forest (Conservation) Act, 1980, shall be reviewed by a Committee consisting of Secretary, Environment & Forests, Director General of Forests and at least one non-official member of the Forest Advisory Committee constituted under the Forest (Conservation) Rules to restrict the approvals to the barest minimum needed to serve emergent public purposes. Felling of trees shall commence only after the process of compensatory afforestation has actually been undertaken on the ground. In future, the proposals shall be considered for approval only after detailed Environmental Impact Assessment has been carried out through an independent agency identified by Ministry of Environment & Forests.

20. Specific actions shall be undertaken by Ministry of Environment & Forests/Andaman & Nicobar Islands Administration on the other recommendations of Shri. Shekhar Singh Report which are not specifically dealt with in above orders. Ministry of Environment & forests and the Andaman & Nicobar Islands Administration shall file an

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affidavit within three months giving details of action taken by them on each of such recommendations.

21. Copy of this order to be sent by the Registry to the Chief Secretary, Andaman & Nicobar Islands for information and compliance.

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IV-D: REPORTS PRODUCED DURING PDF-B PHASE AUTHORS TITLE

Arif. M Mustafa & Dr. S. Dam Roy

A comprehensive analysis of the coral ecosystem vis-à-vis resources exploitation

Harsha H. Sirur A rapid socio-economic assessment of threats to the coastal environment & their root causes in the Andaman and Nicobar Islands

N.V. Subba Rao & M.K. Dev Roy

An appraisal of the mangrove fauna

P.S.N. Rao Coastal and marine plant diversity of Andaman and Nicobar Islands

Space Applications Centre, Ahmedebad

Coral Reefs of the Andaman and Nicobar Group of Islands

V.V.S. Suryanaryana Development of handicrafts in ths islands with sustainable utilization of bio-resources.

D.V. Rao Faunal Biodiversity - Coral Reef FishesS. Ajmal Khan & M.K. Dev RoyFaunal Biodiversity - CrustaceaN.V. Subba Rao Faunal Biodiversity - MolluscaD.V Rao Faunal Biodiversity - Soft Coral (Alcyonacea)D.R.K. Sastry Faunal Biodoversity - EchinodermataCentral Electrochemical Research Institute

Final report on seawater quality in the coral reef ecosystems in Andaman and Nicobar Islands

M. Umamaheswara Floral Biodiversity - Algae and SeagrassesL. Kannan Floral Biodiversity - Phytoplankton and Seagrasses

A.N. Ganeshamurthy, R. Dinesh & N. Ravisankar

Land Resources Atlas of Andaman and Nicobar Islands

G.C. Rao Marine ecosystems around Andaman and Nicobar Islands

R. Jeyabaskaran Rapid assessment of coral reefsDirectorate of Industries, A & N Admin

Report of the Workshop on shell craft industry

Christopher Edwards. Report on observations of coral reefs, fish species and birds durint the voyage of S/Y "Lizard of Oz" in the Andaman Islands

N.V. Subba Rao Report on State of the Environment in Andaman and Nicobar Islands

C.S. Gopinadha Pilai & K. Venkataraman

Staus, conservation and management of corals and coral reefs of A & N Islands

L. Kannan The flora of coral reef ecosystem of A & N Islands (Seagrasses)

P.T. Rajan Visual census of reef fishes in Andaman and Nicobar Islands

K. Alagaraaja Fisheries Resources Assessment of A&N islands - Present Status and Future Programme for Development and Management

Proceedings of Conference Environmental Education Needs of the A&N Islands

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held in Port Blair, March 5-6, 1997. C.P.R. Environmental Education Centre.World Tourism Organisation and UNDP

Development strategy for environmentally sustainable tourism in the Andamans

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IV-E: RESPONSE TO GEF COUNCIL COMMENTS

Country: IndiaProject Title: Andaman and Nicobar Islands: Ecologically-Sustainable Island DevelopmentGEFSEC Project ID: 1143UNDP Project ID: 565Operational Program: 2 Implementing Agenc(ies): UNDP

The following are the main comments provided in the GEF COUNCIL review, and responses thereto:

COMMENT: RESPONSE: PARA REF:From Germany: In the chapter socio-economic context and developmental history it is stated that commercial logging was the predominant economic sector for decades until its ban only few years ago. Apart from a) strengthen capacities for conservation through land-use planning and monitoring enforcement capacities and b) assuming that the development of ecotourism and agriculture will reduce loss to forest cover and agricultural encroachments this problem area is not being mentioned further. Thus the question arises with

The project document has been amended to correctly reflect the ground situation in terms of current status of mangroves and the policy framework. Till the 1980’s, the Forest Department contributed 70-90 percent of the state’s revenue, provided the raw material to the wood-based industries of the islands and also met the requirements of Indian Railways in mainland market for timber besides meeting the requirements of sawn timber and non-timber forest produce of the local population. However the forest working was confined to just 15 percent of the forest areas of the islands.

The Supreme Court during 2002 had put a temporary total ban on harvesting of forest till

Para 42

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COMMENT: RESPONSE: PARA REF:the ban on commercial logging all tree harvesting will automatically cease and how will the local demand for forest resources be satisfied? It is recommended that the project will take more into consideration the issue of community based forest resource management at least to satisfy the local demand for forest resources in a sustainable manner.

the revision of Working Plans. These have been revised for a few forest divisions and forests are being worked as per their prescriptions and to meet the local demand only.

Recently the Administration after consultation with the local bodies and in technical collaboration with the Regional Centre, National Afforestation and Eco-Development Board, Jadhavpur University, Kolkatta has also notified a resolution for implementing Joint Forest Management on an experimental basis in selected villages. Therefore, there is no ban on tree harvesting and in fact, the entire forest working is geared to meet the local demand for forest resources with due emphasis on conservation of forests and wildlife.

From Germany: The importance of the mangrove ecosystem within the context of integrated coastal zone management is obvious and mentioned in the project proposal. Uncontrolled harvesting of mangrove wood for local use is prominently stated as well as the absence of policies or regulation on sustainable management of mangrove areas and sustainable harvesting of mangrove wood. Surprisingly none of the outputs refer to this issue. This absence of a clear strategy on how to

Since 1989, the mangroves in A&N Islands have been afforded complete protection. The strategy adopted by A & N Department of Environment & Forests for conservation and management of mangrove forests include: ban on mangrove extraction; declaration of potential mangrove as National Parks and Sanctuaries; eco-restoration of degraded and critical mangrove areas; identification of endangered mangrove species for providing full protection and rehabilitation; checking of encroachments and reclamation of mangrove areas; creating awareness etc. The project document has been amended to represent the present scenario with respect to

Para 4 & 25

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COMMENT: RESPONSE: PARA REF:deal with the destructive use of mangroves should definitely be addressed during project implementation. Well documented examples for sustainably managing mangrove resources can be found in Malaysia and other neighbouring countries.

management of mangroves in the A&N Nicobar Islands. However, some damage to mangroves has continued inspite of the above strategy on account of settlement and agriculture and recently by the geological upheaval during Tsunami in December 2004. Creating awareness and keeping vigil on possible destruction of mangroves throughout the vast coast line is a continuous challenge. The present project will continue to strengthen government efforts in protecting and conserving mangroves. Others’ experiences of sustainable management of mangrove resources, such as of Malaysia and other Asian countries, will be consulted.

From US: The log frame provides detailed outputs but needs to provide more information on quantifiable performance outcome indicators.

Impact indicators with quantitative baseline and target values for assessing project impact and progress towards impact are provided against both the Project Objective and each of the Outcomes. While more indicators could be added, a small number of representative SMART indicators is preferred over a larger number of indicators which become duplicative and end up not being quantitatively measured because of the amount of work required. Internal performance indicators associated with specified outputs are built into the annual work plans and determined in conjunction with the project executing and implementing partners and their staff. Consequently these cannot be developed until project launching and are normally developed for, and agreed during, the

New Outcome 4 and additional outputs added to logframe which will ensure that the logframe indicators are reviewed and refined during the Inception Phase.

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COMMENT: RESPONSE: PARA REF:project inception workshop.

During project appraisal an additional outcome has been added which deals with effective project monitoring and evaluation, the generation, capture and transmission of lessons, and adaptive management. This entails no additional costs but rather, re-organizes existing project components dealing with monitoring, evaluation and adaptive management into a more coherent whole and in this way strengthens project ability to objectively track quantitive progress on impacts.

From US: On cost-effectiveness, please provide some indication of how project managers intend to contain costs. Are there some examples from similarly remote island projects that might provide useful lessons?

Significant economies in terms of cost are built into the project through the tight integration of project activities funded through GEF resources with those funded through ongoing government schemes and programmes. Additionally, considerable technical expertise and information is available within different institutions and departments in A&N islands thereby minimizing the costs of technical inputs. Standard procurement rules, selection rules and competitive bidding/selection will be used to obtain best quality products and services at the lowest possible cost. Such controls are effected through standard quarterly financial advancement and reporting.

From US: Overall project objective: It would be useful to also include other indicators such as water

Currently the project impact indicators focus on the extent to which the objective of the project – Mainstreaming biodiversity into the governance

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COMMENT: RESPONSE: PARA REF:quality, fish stocks, percent of mangrove cover, and number of keystone species?

systems and key productive sectors of the Andaman and Nicobar Islands – has been achieved. This corresponds directly to the objective of GEF Strategic Priority no. 2 and is reflected in the standard GEF Tracking Tools for Biodiversity (see Part IV-G). These will be completed again at both the mid-term and final evaluations and hence provide objective measures of project success in GEF terms.Additional specific, cost-effective indicators to measure both biodiversity and more general ecological impacts will be identified once target project sites have been identified during the Project Inception Phase. Baselines will also be established during this period. Outcome 4 deals with the establishment of a detailed internal project monitoring system, which will undertake this work. It is anticipated that indicators such as those suggested – water quality, mangrove cover, fish stocks and keystone species – as well as additional ones such as coral health, soil quality, extent of beach sand cover, evergreen forest cover and integrity of the forest cover (extent of forest fragmentation) and fish catch (overall catch volume, species composition and average size of various species) will be used to show specific impacts on globally significant biodiversity.

From US: Output 1.2: Developing environmental guidelines, standards, and regulations for tourism,

The A&N Administration, particularly, the A&N Department of Environment & Forests will take the lead in this respect so that environmental

Section II: Part II – Output 1.2 -

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COMMENT: RESPONSE: PARA REF:agriculture and fisheries should be a consultative process. Community groups, NGOs and the private sector need to be involved and made to feel like they have part ownership in the resulting guidelines, standards, and regulations.

guidelines, standards and regulations are developed for the three productive sectors under the project – agriculture, tourism and fisheries. A consultative process will be adopted to involve all relevant stakeholders in order to ensure their contribution to and greater ownership of the guidelines, standards and regulations. The Ministry of Environment and Forests at the central government level will provide necessary guidance and make available good practices from India and outside.

Columns – ‘Impact and process indicators’ and ‘Notes and Assumptions’. Section I: Part I - Stakeholder analysis (para 49)Para 66Section IV: Part III – Stakeholder Involvement Plan (para 153-159)

From US: Output 1.3: In addition to a budget, the proposed land use planning unit should have a detailed plan of work with quantifiable targets and projected outputs.

All project units and teams will have detailed annual work plans with outputs and targets designed to enable the project to reach its specified outcomes with the clear assignment of responsibilities and accountabilities for each deliverable. These are developed by the teams themselves in association with the project executing and implementing partners and are approved by the project steering committee. The first set of plans are normally developed after

Section II: Part II – Output 1.3 - Column – ‘Means of Verification, Indicators, Baseline & Targets’

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COMMENT: RESPONSE: PARA REF:project launching and agreed during, the project inception workshop.

From US: Output 1.4: Does the proposal plan to create new subsidies that will encourage environmentally sound activities? If so, we believe that these subsidies should be provided with the least economic distortion and should be phased out over time as the industries grow and the subsidies are no longer needed.

There is currently no specific proposal to create new subsidies to encourage environmentally sustainable activities. Specific strategies for achieving stated project outcomes will be developed in Year 1. The potential economic distortions of any proposed subsidy would be examined closely and weighed up against likely environmental benefits and long-term sustainability before it was employed. The phasing out of any subsidies introduced by the project would be built into project design. It has been proposed under Outcome 1 that the A&N Administration, through the Project Review and Steering Committees, will ensure that existing fiscal incentives and subsidies are reviewed periodically. These committees will also monitor the implementation of recommendations to minimize any resulting economic distortions and unsustainable resource use patterns resulting from such incentives or subsidies. Text has been suitably amended in the log-frame to include these concerns.

Section II: Part II – Output 1.4 - Columns – ‘Means of Verification, Indicators, Baseline & Targets’ and ‘Notes and Assumptions’

From US: Output 3A 5: We are pleased to see the incorporation of a micro-finance component. Does the area have a history of micro-credit? Is there an existing micro credit institution? How much of the budget

The A&N Islands already has institutions that are extending microfinance and these cover all the project sectors – agriculture, fisheries and tourism. A range of institutions from national level agencies such as NABARD to Union Territory level agencies such as ANIDCO, A&N State

Section II: Part II – Output 3A 5 - Columns – ‘Means of Verification,

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COMMENT: RESPONSE: PARA REF:will be for strengthening the institution to incorporate environmental criteria and how much will be for credit? Is the credit program limited to the agriculture of sector or can it also be used in the forestry or fisheries sectors? Will the credit be provided at market rates or will it be subsidized?

Cooperative Bank and a number of scheduled banks with branches all over the Islands are involved in providing microcredit. Microcredit is extended only after reviewing that proposed economic enterprises/activities do not violate prevailing laws, guidelines and policy directives, including environment related. However, sensitization workshops will be organized under the project to strengthen the use of environmental criteria in the screening process. We hope not to use any of the project budget for microcredit but rather to access currently underutilized micro-credit schemes operated by institutions in A&N, notably NABARD, who have indicated interest in partnering with the project on this aspect. Such schemes could be extended to forestry and fisheries if appropriate. Such credit is generally provided at lower than the market/ commercial rates.

Indicators, Baseline & Targets’ and ‘Notes and Assumptions’

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IV-F: L-PAC MINUTES Minutes of the Project Appraisal Committee Discussion

forAndaman and Nicobar Islands: Ecologically-Sustainable Island DevelopmentDATE: 27 MARCH TO 3 APRIL 2006

PARTICIPANTS: PROGRAMME STAFF, UNDP-INDIA COUNTRY OFFICE

This project document has been prepared by the Andaman & Nicobar Administration with support from UNDP India. It has been developed in close consultation with multiple stakeholders including officials from various departments of the Andaman and Nicobar (A&N) Administration and Ministry of Environment and Forests (MOEF), Government of India, representatives of local government bodies, civil society organisations, and private businesses. Since December 2005 several rounds of discussions have been held in Port Blair as well as in Delhi and also through telephone and email to obtain the required inputs to finalise this project document. All of this comes on top of the consultations and reviews that were held through the project development phase.

The PAC therefore was aimed at drawing additional comments and suggestions from within UNDP-India on the document that had been finalized and endorsed by the A&N Administration in writing15, and was limited to the Programme Staff in the UNDP Country Office. Due to the non-availability of the Resident Representative and the Senior Deputy Resident Representative (Programme) to chair the L-PAC meeting, an E-PAC had to be held. The finalised project document was circulated by e-mail to all programme staff in the Country Office on 27th March 2006 and they were requested to respond with their suggestions, comments and queries by 3rd April 2006. This was done in parallel with a process of close consultation with the Ministry of Environment & Forests to incorporate any further feedback on the project document from the A&N Administration and to obtain their final endorsement.

Stakeholder consultation

Prior to the E-PAC, a stakeholder meeting was organized at Port Blair on 4 February 2006. Mr D S Negi, Chief Secretary, Andaman and Nicobar Administration chaired the meeting. The participants included officials from the key departments of A&N administration (agriculture, fisheries., forests) and technical agencies (ANIDCO and CARI), as well 15 See letter dated 28 February 2006 from the Chief Secretary of Andamans & Nicobars in Section IV, Part I of this project document.

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as representatives from MOEF, UNDP and local NGOs (such as the Society for Andaman and Nicobar Ecology, The Andaman & Nicobar Islands Environmental Team, and Island Sangathan Manch). The proposal was presented and comments requested from the participants on the document. The document was reviewed, revised (based on their verbal and written comments), and subsequently endorsed by the A&N Administration and forwarded to MOEF and UNDP.

E-PAC announcement:

Ms. Prema Gera, Programme Adviser, UNDP sent out an announcement for the PAC on “Andaman and Nicobar Islands: Ecologically-Sustainable Island Development” on 27 March 2006 at all staff at UNDP-India.

The announcement with the project document enclosed, read:

“A concept note/executive summary for the A&N Islands was approved by Global Environment Facility (GEF) Council in November 2004. As per GEF requirement, a project document in a given format has to be developed subsequently by project proponents - in this case the A&N Administration. The project development process was facilitated by UNDP between December 2005 and March 2006. The resulting project document is available at the link mentioned in the attached e-mail.

The proposed project is confined to the Andaman's and identifies three productive sectors for support - tourism, fisheries and high-value agriculture. The underlying theme of the document is to promote and strengthen environmental mainstreaming of policies and development framework for the Islands and also in the three productive sectors. These sectors continue to remain important post-tsunami and have been endorsed by the Planning Commission, A&N Administration and a recent report by MS Swaminathan Research Foundation.

The document is being reviewed by Ministry of Environment & Forests and we are circulating it within UNDP for comments and feedback. Once finalised it will forwarded to GEF Council for endorsement.

I will appreciate receiving your feedback by cob on 03 April 2006. “

Discussion:

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Comments were received from only one Programme Staff member , which pertained to strengthening the management arrangement structure for the project.

Ms Momin Jaan, Partnership Officer, UNDP emphasized the need to review the management structure of the project, and align it with the new UNDP Results Management Guide (RMG). The Project Executive and Project Assurance functions need to be highlighted and clarified. In addition, she recommended that in line with the RMG, the role of the Project Manager in creating and maintaining the Risk, Issue and Lessons Learnt Logs should be made explicit in the document itself.

ResponseBased on Ms Momin Jaan’s comment, the project document has been accordingly modified to reflect the roles indicated under the RBM. Refer to page 29 Part III para 86, page 30 para 91 and page 32 paras 94, 96 & 97.

These changes were communicated to the Andaman & Nicobar Administration and Ministry of Environment and Forests (MOEF). MoEF further suggested that since the project is mainly focusing on the Andaman and Nicobar Islands, the term “Project Director” is more appropriate than the “National Project Director” for the person with overall responsibility of the project implementation. Refer to page 30 para 86 and page 70 para 139.

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IV -G: Tracking Tool for GEF Biodiversity Focal Area Strategic Priority Two: Mainstreaming Biodiversity in Production Landscapes and Sectors

I. Project General Information

1. Project name: Andaman and Nicobar Islands: Ecologically-sustainable island development

2. Country: India

National Project:___X____ Regional Project:_______ Global Project:_________

3. Name of reviewers completing tracking tool and completion dates:

Name Title AgencyWork Program Inclusion

Ravi Chellam Programme Officer

UNDP

Project Mid-term

Final Evaluation/project completion

4. Funding information

GEF support: USD 3,388,600 + PDF B USD 345,000 GEF total = USD 3,733,600Co-financing: USD 5,998,600Total Funding: USD 9,732,200

5. Project duration: Planned 8 years Actual _______ years

6. a. GEF Agency: X UNDP UNEP World Bank ADB AfDB IADB EBRD FAO IFAD UNIDO

6. b. Lead Project Executing Agency (ies): Ministry of Environment and Forests, Government of India

7. GEF Operational Program: drylands (OP 1) X coastal, marine, freshwater (OP 2) X forests (OP 3) mountains (OP 4) agro-biodiversity (OP 13)

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integrated ecosystem management (OP 12) sustainable land management (OP 15)

Other Operational Program not listed above:__________________________

8. Project Summary (one paragraph):

This project aims to facilitate the ecologically-sustainable development of the Andaman and Nicobar Islands by mainstreaming conservation of biodiversity into governance systems and key productive sectors. The project will enhance local capacities to conserve and sustainably utilise globally-significant biodiversity resources, particularly in the three key economic sectors of agriculture, tourism and fisheries.

9. Project Development Objective:

Conservation and sustainable utilization of the globally significant biodiversity resources of the Andaman and Nicobar Islands.

10. Project Purpose/Immediate Objective:

The objective of the proposed project is to mainstream environmental sustainability into the governance systems and key productive sectors (agriculture, tourism and fisheries) of the Andaman and Nicobar Islands.

11. Expected Outcomes (GEF-related):

1. A governance context that recognises, facilitates and promotes sustainable development.

2. Ensuring that environmental sustainability receives widespread support from the Island community through enhanced public awareness and improved attitudes.3. Environmentally-sustainable income generation and job-creation in key productive sectors to remove existing pressure for forest conservation and overharvesting of reef resources.

12. Production sectors and/or ecosystem services directly targeted by project:

12. a. Please identify the main production sectors involved in the project. Please put “P” for sectors that are primarily and directly targeted by the project, and “S” for those that are secondary or incidentally affected by the project.

Agriculture___P_____Fisheries_____P____Forestry_____ P____Tourism_____ P_____Mining_______Oil__________Transportation_________Other (please specify)___________

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12. b. For projects that are targeting the conservation or sustainable use of ecosystems goods and services, please specify the goods or services that are being targeted, for example, water, genetic resources, recreational, etc

1. Recreational2. ________________3. ________________4. ________________

II. Project Landscape/Seascape Coverage

13. a. What is the extent (in hectares) of the landscape or seascape where the project will directly or indirectly contribute to biodiversity conservation or sustainable use of its components? An example is provided in the table below.

Targets and Timeframe

Project Coverage

Foreseen at project start

Achievement at Mid-term Evaluation of Project

Achievement at Final Evaluation of Project

Landscape/seascape16 area directly 17 covered by the project (ha)

640,800 ha of land area and an associated marine zone of approximately 780,000 ha

Landscape/seascape area indirectly18

covered by the project (ha)

184,100 ha of land area and an associated marine zone of approximately 420,000 ha

Explanation for indirect coverage numbers:

The indirect coverage will result from the mainstreaming of environmental sustainability into the overall governance of the Andaman and Nicobar Islands, even though the project activities will be restricted to the Andaman Islands. Successful models implemented through the project

16 For projects working in seascapes (large marine ecosystems, fisheries etc.) please provide coverage figures and include explanatory text as necessary if reporting in hectares is not applicable or feasible. 17 Direct coverage refers to the area that is targeted by the project’s site intervention. For example, a project may be mainstreaming biodiversity into floodplain management in a pilot area of 1,000 hectares that is part of a much larger floodplain of 10,000 hectares. 18 Using the example in footnote 5 above, the same project may, for example, “indirectly” cover or influence the remaining 9,000 hectares of the floodplain through promoting learning exchanges and training at the project site as part of an awareness raising and capacity building strategy for the rest of the floodplain. Please explain the basis for extrapolation of indirect coverage when completing this part of the table.

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in the Andaman Islands will also be replicated with adaptations for the local conditions in the Nicobar Islands.

13. b. Are there Protected Areas within the landscape/seascape covered by the project? If so, names these PAs, their IUCN or national PA category, and their extent in hectares.

There are several Protected Areas in the Andaman and Nicobar Islands. The exact sites at which the project interventions will take place are still to be determined and hence it is not possible to give this information at this stage. The sites will be decided during the inception phase of this project and the information related to the Protected Areas will then become available.

Name of Protected Areas IUCN and/or national category of PA

Extent in hectares of PA

1.2.3.4…

III. Management Practices Applied

14.a. Within the scope and objectives of the project, please identify in the table below the management practices employed by project beneficiaries that integrate biodiversity considerations and the area of coverage of these management practices? Note: this could range from farmers applying organic agricultural practices, forest management agencies managing forests per Forest Stewardship Council (FSC) guidelines or other forest certification schemes, artisanal fisherfolk practicing sustainable fisheries management, or industries satisfying other similar agreed international standards, etc. An example is provided in the table below.

Targets and Timeframe

Specific management practices that integrate BD

Area of coverage foreseen at start of project



1. Formation of a multi-stakeholder Responsible Tourism Association to adopt strategies for achieving low environmental impacts.

To be determined during inception as sites are still to be identified.

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2. Implementing a sustainable and ecologically sensitive fisheries management plan which will include zonation, no take zones, catch limits, non-harvest seasons, regulation on fishing gear and methods.


3. The development of an ecologically sustainable high-value agriculture sector with an emphasis on local species and organic cultivation.


14. b. Is the project promoting the conservation and sustainable use of wild species or landraces? Yes

If yes, please list the wild species (WS) or landraces (L):

Species (Genus sp., and common name)

Wild Species (please check if this is a wild species)

Landrace (please check if this is a landrace)

1. Species specific information is not available currently and will be gathered during the inception phase.

Several species of fishes as part of the sustainable fishing interventions.

2.3.4…

14. c. For the species identified above, or other target species of the project not included in the list above (E.g., domesticated species), please list the species, check the boxes as appropriate regarding the application of a certification system, and identify the certification system being used in the project, if any. An example is provided in the table below.

Certification

Species

A certification system is being used

A certification system will be used

Name of certification system if being used

A certification system will not be used

1. E.g., Australian Rock Lobster

X Marine Stewardship Council “Fish Forever”

2…

14. d. Is carbon sequestration an objective of the project?

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Yes X No

If yes, the estimated amount of carbon sequestered is: ______________________

IV. Market Transformation and Mainstreaming Biodiversity

15. a. For those projects that have identified market transformation as a project objective , please describe the project's ability to integrate biodiversity considerations into the mainstream economy by measuring the market changes to which the project contributed. The sectors and subsectors and measures of impact in the table below are illustrative examples, only. Please complete per the objectives and specifics of the project.

Name of the market that the project seeks to affect (sector and sub-sector)

Unit of measure of market impact

Market condition at the start of the project

Market condition at midterm evaluation of project

Market condition at final evaluation of the project

E.g., Sustainable agriculture (Fruit production: apples)

E.g., US$ of sales of certified apple products / yr

E.g., Sustainable forestry (timber processing)

E.g., cubic meters of sustainably produced wood processed per year

E.g., Tourism (eco-tourism)

E.g., US$ of revenues from eco-tourism / yr; number of tourists/year;number of eco-tourism companies

15. b. Please also note which (if any) market changes were directly caused by the project.

V. Improved Livelihoods

16. For those projects that have identified improving the livelihoods of a beneficiary population based on sustainable use /harvesting as a project objective, please list the targets identified in the logframe and record progress at the mid-term and final evaluation. An example is provided in the table below

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Improved Livelihood Measure

Number of targeted beneficiaries (if known)

Please identify local or indigenous communities project is working with

Improvement Foreseen at project start



1. Rate of environmentally sustainable job creation in key economic sectors; agriculture, tourism and fisheries (measured overall).

Not known currently. In habitants

of Andaman Islands.

10 % increase over baseline (compiled in year 1 of the project) by year 4 and 25% increase by year 8.

2.3…

VI. Project Replication Strategy

17. a . Does the project specify budget, activities, and outputs for implementing the replication strategy? No

17. b. Is the replication strategy promoting incentive measures & instruments (e.g. trust funds, payments for environmental services, certification) within and beyond project boundaries?Yes___ No___

If yes, please list the incentive measures or instruments being promoted:_______________________________________________________________________________________________________________________________________

17. c. For all projects, please complete box below. Two examples are provided.Replication Quantification Measure (Examples: hectares of certified products, number of resource users participating in payment for environmental services programs, businesses established, etc.)

ReplicationTarget Foreseen at project start



1. E.g., Number of resource users applying sustainable reindeer management practices

100 40 120

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2. E.g., Hectares of forest under certified management that incorporates biodiversity considerations

10,000 3,000 7,000

3…

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VII. Enabling Environment

For those projects that have identified addressing policy, legislation, regulations, and their implementation as project objectives, please complete the following series of questions: 18a, 18b, 18c.

An example for a project that focused on the agriculture sector is provided in 18 a, b, and c.

18. a. Please complete this table at work program inclusion for each sector that is a primary or a secondary focus of the project. Please answer YES or NO to each statement under the sectors that are a focus of the project.

Sector

Statement: Please answer YES or NO for each sector that is a focus of the project.

Agriculture Fisheries Forestry Tourism Other (please specify)

Other (please specify)

Biodiversity considerations are mentioned in sector policy NO NO YES NOBiodiversity considerations are mentioned in sector policy through specific legislation

NO NO YES NO

Regulations are in place to implement the legislation NO NO YES NOThe regulations are under implementation NO NO Partially NOThe implementation of regulations is enforced NO NO Partially NOEnforcement of regulations is monitored NO NO Partially NO

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18. b . Please complete this table at the project mid-term for each sector that is a primary or a secondary focus of the project. Please answer YES or NO to each statement under the sectors that are a focus of the project.

Sector




Biodiversity considerations are mentioned in sector policyBiodiversity considerations are mentioned in sector policy through specific legislationRegulations are in place to implement the legislationThe regulations are under implementationThe implementation of regulations is enforcedEnforcement of regulations is monitored

18. c. Please complete this table at project closure for each sector that is a primary or a secondary focus of the project. Please answer YES or NO to each statement under the sectors that are a focus of the project.

Sector




Biodiversity considerations are mentioned in sector policyBiodiversity considerations are mentioned in sector policy through specific legislationRegulations are in place to implement the legislationThe regulations are under implementationThe implementation of regulations is enforcedEnforcement of regulations is monitored

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All projects please complete this question at the project mid-term evaluation and at the final evaluation, if relevant:

18. d. Within the scope and objectives of the project, has the private sector undertaken voluntary measures to incorporate biodiversity considerations in production? If yes, please provide brief explanation and specifically mention the sectors involved.

An example of this could be a mining company minimizing the impacts on biodiversity by using low-impact exploration techniques and by developing plans for restoration of biodiversity after exploration as part of the site management plan.

_______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

VIII. Mainstreaming biodiversity into the GEF Implementing Agencies’ Programs

19. At each time juncture of the project (work program inclusion, mid-term evaluation, and final evaluation), please check the box that depicts the status of mainstreaming biodiversity through the implementation of this project with on-going GEF Implementing Agencies’ development assistance, sector, lending, or other technical assistance programs.

Time Frame

Status of Mainstreaming

Work Program Inclusion

Mid-Term Evaluation

Final Evaluation

The project is not linked to IA development assistance, sector, lending programs, or other technical assistance programs.The project is indirectly linked to IAs development assistance, sector, lending programs or other technical assistance programs.The project has direct links to IAs development assistance, sector, lending programs or other technical assistance programs.The project is demonstrating strong and sustained complementarity with on-going planned programs.

X

IX. Other Impacts

20. Please briefly summarize other impacts that the project has had on mainstreamingbiodiversity that have not been recorded above. The shift in policy orientation will have a very strong impact on the overall environmental

sustainability of these islands and more specifically on biodiversity conservation and the natural resource based sustainable livelihoods of local people.

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IV-H: RESPONSE TO GEF SECRETARIAT CONCEPT AGREEMENT REVIEW OF AUGUST 2006

Country: IndiaProject Title: Andaman and Nicobar Islands: Ecologically-Sustainable Island DevelopmentGEFSEC Project ID: 1143UNDP Project ID: 565Operational Program: 2 Implementing Agenc(ies): UNDP

The following are the main review comments provided in the GEF Secretariat review for CEO endorsement and responses thereto:

COMMENT: RESPONSE: PARA/SECTION REF:

Project Design: From the response to the council’s comment, it is surprising to see that the project has not identified specific project sites after decade long project preparation. Please clarify the criteria and process in selecting the project sites within larger A&N islands

Specific project sites will need to be identified and agreed with full participation of key stakeholders including A&N Administration, relevant sectoral government departments, MOEF, representatives from local communities in the Andaman Islands. Given political sensitivities about A&N, and both A&N and Central Government’s concern about security issues and role of outsiders, this was not something that could be done in advance especially given regular turnover in key administrative and political positions both within A&N and Central Government. The sites will be endorsed by the Project Steering Committee. The criteria for specific site selection have been

Para 99, bullet point 5

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incorporated into the project document under the section on Project Inception Phase.

Monitoring and Evaluation: The objective indicators include only coverage indicators. As noted as a response to the US council’s comment, additional impact indicators that are considered need to be included in the logframe

Current baseline indicators (along with their reference) to establish the impacts of biodiversity, ecosystem health and sustainable use are given to determine the efforts to mainstream conservation practices in the four key productive sectors is included as part of the objective indicators.

Potential specific sub-indicators for the above 2 main indicators will be identified during the Project Inception Phase.

Part II: Logical Framework Analysis page 53 to 55

Para 99, bullet point 3

Monitoring and Evaluation: The indicators for outcome 2, environmental awareness component, are particularly weak. Indicators to monitor behaviour change are expected at the outcome level.

Current pattern of involvement of people towards nature conservation is given and new indicator that captures the behaviour change of the community has been incorporated at the outcome level for outcome 2.

Part II: Logical Framework Analysis (Page 61)

Financing Plan: The budget in the document only specifies use of GEF funding and it is unclear what the co-financing amount will be used for. Provided that the government contribution is in large part in cash, please clarify the financing plan for the co-finance.

The co-financing commitment letter from the A&N administration states that there are existing plans and schemes in several key sectors from where the co-financing has been committed. These include fisheries, agriculture/forestry, environment and coastal protection and tourism. The total budget committed by A&N Administration for 2006/7-2008/9 is US$ 89.7

Section IV: Additional Information; Part I: Co-Financing Letter

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million for the above sectors19. The detailed plan for 2006/2007 already exists as part of the 10th five year plan (2002-2007)20 and they are in the process of detailed planning for the 11th five-year cycle.

Financing Plan: More than one third of the total budget is allocated for component 4, which is for project management. This is rather high compared to the standard. Please clarify how much of this budget is going for project administration budget and M&E/dissemination activities.

The total budget for the project management (excluding UNDP support cost) is US$659,000 and for M&E including dissemination is US$561,000. The detailed plan for the M&E provides the indicative activities. The islands will require support in terms of expertise and management support from the mainland due to capacity constraints, which means that relatively high personnel and travel inputs are required to ensure the project implementation is successful. Therefore, the project management budget is slightly higher than usual.

Section III: Total Budget and Workplan and Annex H-2, Table 1

GENERAL COMMENTS: The project was submitted CEO for approval after 21 months since council approval. Please kindly clarify the reason for taking the time. The information is requested particularly considering the long history of the project.

The December 2004 tsunami which occurred soon after this proposal was approved into the work programme, greatly delayed the finalization of this project document, as the Nicobar Islands and parts of the Indian mainland were severely impacted. The Andamans & Nicobar Administration as well as UNDP-India were intensively engaged in tsunami relief and reconstruction efforts for many months after. It proved difficult therefore to coordinate with the

19 Fisheries – US$ 34.9 million; Agriculture/Forestry – US$ 33.6 million; Environment & Coastal Protection – US$ 1.3 million; Tourism – US$ 19.9 million20 Planning Department, Andaman & Nicobar Administration, 2006. Annual Plan Programme 2006-2007. Vol. I& II

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A&N administration to identify suitable quantifiable performance and outcome indicators in the first half of 2005. Subsequently, there were changes in key political and administrative positions (including the Chief Secretary changing twice) resulting in further delay as each new person familiarized themselves with the project and provided feedback for finalizing the project document. The last round of broad consultations was held in February 2006 in the Andamans in order to ensure that there was full stakeholder buy-in. Finalization of the project document required additional time as this had to be reviewed by both Central Government and the A&N Administration and changes requested by either party had to be agreed and the final document endorsed by both parties.

IV-I: Response to additional comments from the GEF Secretariat Concept Agreement Review of October 2006


Monitoring and evaluation: The baseline and target of the objective level indicators are not identified and it is noted that it will be collected during the inception phase of the project. According to the GEF M&E policy, baseline and targets are required at the time of CEO

The baseline and objective level indicators and sub-indicators have been broadly identified for capturing mainstreaming of conservation principles into the three main productive sectors in the log-frame.

These will be reviewed and adequate changes made as per the baseline situations and verified at the inception phase. The baseline data is available

Para 99, bullet point 5 Logical Framework Analysis

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endorsement. Please clarify and provide necessary information.

particularly in two key documents of the A&N administration (Draft Report on the State of Environment in Andaman and Nicobar Archipelago, 2006, and Andaman and Nicobar Islands Union Territory Biodiversity Strategy and Action Plan, 2005). In addition, the databases available with relevant departments (Forestry, Fisheries and Tourism) will also be accessed. Where ever the available data is still found insufficient, baseline studies may be commissioned. The inception stage will thereby involve reviewing the indicators, baselines, targets and means of verification.

Monitoring and evaluation: A few indicators have been identified for outcome 2, however, the baseline data are not identified. As noted above, these information are required at the stage.

The baseline and the impact level indicators have been broadly identified in the log-frame for outcome 2. As pointed out earlier, these will be reviewed and adequate changes made as per the baseline situations and verified at the inception phase.

Logical Framework Analysis

Financing plan: The use of co-financing can been seen from the incremental cost analysistable. However, it is not clear whether there are any cofinancing from the government for the project management component. Please clarify.

There is co financing from the government for the project management component. The contribution from co-financing for the project for this component amounts to around US$ 320,000. This amount will be allocated against staff, staff time, travel, communication, office space and equipment etc.

Co-financing letter page 73

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SIGNATURE PAGECountry: INDIA

UNDAF Outcome(s)/Indicator(s):(Link to UNDAF outcome., If no UNDAF, leave blank)Strengthening decentralization and promoting gender equality

Expected Outcome(s)/Indicator (s): CP outcomes linked of the SRF/MYFF goal and service line)

National capacity built to contribute to global environmental agenda setting, and global environmental concerns mainstreamed in national development planning.

Expected Output(s)/Indicator(s):(CP outcomes linked t the SRF/MYFF goal and service line)

Facilitating assessment of national capacities for sustainable development, contribute to the strengthening of information base and capacities for implementing multi-lateral environmental agreements and catalyzing partnerships for field demonstration of conservation and sustainable use of environmental resources

Implementing partner: Andaman & Nicobar (designated institution/Executing agency) Administration

Other Partners: NGOs, local communities, public representatives and private sector

a) Agreed by (Ministry of Finance, DEA): Mr. R.P. Singh, Director____________________________________________________________

b) Agreed by (A&N Administration):Mr. Shumsher K. SheriffChief Secretary________________________________________________________

c) Agreed by (UNDP):

Total budget: $ 9,387,200.00Allocated resources: ____________ Government $

5,046,000 Regular GEF $

3,388,600 Other:

o Donor _________o Donor _________

Programme Period: 2006 - 2013Programme Component: Project Title: Andaman and Nicobar Islands: Ecologically-Sustainable Island DevelopmentProject ID: 00043235 PIMS 565Proposal/ project ID: 00043235/00050350Project Duration: 8 yearsManagement Arrangement: NEX

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Dr. Maxine Olson, Resident Representative_________________________________________________________

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