UNITED NATIONS DEVELOPMENT PROGRAMMEGLOBAL ENVIRONMENT FACILITYProject of the Royal Government of Bhutan

PROJECT DOCUMENT

Project Title: Integrated Management of Jigme Dorji National Park (JDNP) Project number: BHU/96/G33/A/1G/99 [BHU/96/008/A/01/99(UNDP)] Duration: 5 years

Project site: Jigme Dorji National ParkACC/UNDP Sector: 2000 Environment, BiodiversityExecuting Agency: Ministry of Agriculture, Royal

Government of Bhutan

Project FinancingTotal Project Cost: US$ 2,924,568GEF: US$ 1,500,000RGoB: US$ 771,568

Forestry Services Division (FSD) Other co-financing: US$ 653,000 Ministry of Agriculture (MOA) US$ 593,000 from UNDP

US$ 60,000 from BDFCEstimated starting date: June 1997

Brief Description: This project, co-financed by GEF and UNDP, supports the Government in strengthening the integrated management of Jigme Dorji National Park (JDNP), Bhutan’s largest and one of the most diverse protected areas containing globally significant biodiversity. The strategy adopted, is to provide support to Park management in addressing the main threats to JDNP’s biodiversity and in removing their causes by implementing certain activities according to two components. Under component 1, the Park management will be strengthened by recruiting the full complement of 50 Park staff, implementing various activities related to Park demarcation, training, and infrastructure development. Other Park management issues such as poaching, eco-tourism, and enforcement of legal systems will also be addressed. Communities within the Park will be brought into the management regime of the Park by preparing Community Natural Resource Management Plans (CNRMP). Component 2 will involve the actual implementation of selected elements of the CNRMPs by promoting sustainable livelihoods and alternative approaches that help to conserve and sustainably utilize the Park’s rich biodiversity.

On behalf of: Signature Date Title

Government __________________ _____________ ____________________

Executing Agency __________________ _____________ ____________________

UNDP __________________ _____________ ____________________

TABLE OF CONTENTS

A. Context: . . . . . . . . . . . . . . . . . . . 2A.1 Country Description . . . . . . . . . . . . . . . 2A.2 Host Country Strategy . . . . . . . . . . . . . . . 3A.3 Prior or On-going Assistance . . . . . . . . . . . . . 4A.4 Institutional Framework . . . . . . . . . . . . . . 6

B. Project Justification: . . . . . . . . . . . . . . . . 7B.1 Problem to be Addressed: The present situation . . . . . . . . . 7

B.2 Expected Project Outcomes . . . . . . . . . . . . 8B.3 Target Beneficiaries . . . . . . . . . . . . . . . 9B.4 Project Strategy and Institutional Framework for Project

Implementation . . . . . . . . . . . . . . . . . 9B.5 Reasons for Assistance from UNDP/GEF . . . . . . . . . . 12B.6 Special Considerations . . . . . . . . . . . . . . . 12B.7 Coordination Arrangements . . . . . . . . . . . . . 13B.8 Counterpart Support Capacity . . . . . . . . . . . . . 14

C. Development Objective . . . . . . . . . . . . . . . . 14D Immediate Objectives, Activities and Outputs . . . . . . . . . . 15E. Inputs . . . . . . . . . . . . . . . . . . . . 19F. Risks . . . . . . . . . . . . . . . . . . . . 25G. Prior Obligations and Prerequisites . . . . . . . . . . . . . 25H. Project review, monitoring and Evaluation . . . . . . . . . . . 25I. Legal Context . . . . . . . . . . . . . . . . . . 26J. Budgets . . . . . . . . . . . . . . . . . . . 26K. Workplan . . . . . . . . . . . . . . . . . . . 26L. Implementation Timeline . . . . . . . . . . . . . . . 27

Annexes:Annex 1. Incremental Costs . . . . . . . . . . . . . . . 28Annex 2. Letter of Country Endorsement. . . . . . . . . . . . 32Annex 3. Independent Technical Review . . . . . . . . . . . . 33Annex 4. Map of Jigme Dorji National Park . . . . . . . . . . . 37Annex 5. Terms of Reference for Natural Resource Management (UNV) . . . . 38Annex 6. Terms of Reference for Social Forester (UNV). . . . . . . . 39Annex 7. Terms of Reference for Eco-Tourism Management

Planner. . . . . . . . . . . . . . . . . . 40Annex 8. Detailed Project Financing . . . . . . . . . . . . . 41Annex 9. List of Equipment to be procured under activity 1.3.5 . . . . . . 43

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A. CONTEXT

A.1. COUNTRY DESCRIPTION

1. The mountain kingdom of Bhutan, wedged between China and India, is located entirely within one of the world’s ten global biodiversity “hot spots”(Myers 1979) - the Eastern Himalaya. With over 73% forest cover, Bhutan is known to harbor approximately 7,000 species of vascular plants, 160 species of mammals and more than 770 species of birds. Bhutan’s landscape rises from an altitude of 150 meters above sea level in the southern foothills to over 7,500 meters along its northern border. This dramatic elevation gradient accounts for its diverse flora and fauna, from elephants, tigers and the rare golden languor in the lowlands to the snow leopard, blue sheep and takin in the high Himalaya.

2. Encompassing an area of 4,349 km2 in the northwestern corner of Bhutan, Jigme Dorji National Park1 (Annex 4) is the largest protected area in the country, and biologically one of the richest on the subcontinent. With altitudes ranging from 1,400 meters to over 7,000 meters, Jigme Dorji National Park (JDNP) contains eight of the 11 classified vegetation types found in Bhutan. These range from temperate broadleaf forests along the steep gorges to temperate evergreen forests, sub alpine grasslands, alpine meadows, and glaciated ice, rock and scree found in the higher elevations. The eight vegetation types translate into habitat for the diverse and striking array of flora and fauna within JDNP. Presently, 1,434 species of plants in 144 families have been identified within JDNP. Several of these plant species have value as cultivars for crops and other horticultural use and still others are of commercial, medicinal, traditional, and religious significance.

3. Thus the Park serves as a genetic repository for these valuable plants. In all, thirty-one species of mammals and more than 300 species of birds have been confirmed to occur in these habitats. Endangered mammal species occurring within JDNP range from the Bengal tiger and Red panda in the subtropical and temperate forests to Musk deer, Blue sheep, Snow leopard and Bhutan’s national animal, the Takin, in the alpine zones. Also, bird species such as the Satyr Tragopan, once thought to be extinct, still exist in the Park. From a global perspective, it is rare to find mountain habitats linked with lowland habitats via protected area corridors. Usually the two bio-regions are separated by human-induced habitat fragmentation. In Bhutan, however, JDNP is a key link in a chain of four, nearly continuous protected areas linking high alpine grasslands with lowland forests. The chain of protected areas stretches from India’s Manas Tiger Reserve in the tropical lowlands across the border to Bhutan’s Royal Manas National Park (RMNP), up to Black Mountains National Park and finally to JDNP.

4. Approximately 6,500 local people (1,000 households) live within JDNP’s boundary. They rely on subsistence agriculture at lower elevations (irrigated and dryland). At the higher elevations, they rely on livestock, especially yak. The yak herders are semi-nomadic; their economy is based on yak products, and more recently on providing pack animals for tourism and government activities. Most household articles that cannot be obtained in the Park are bartered for with shopkeepers and farmers in the lower valleys. As a result this transhumance has given rise to unique traditions and customs among the pastoralists.

1 Although Jigme Dorji is gazetted as a National Park in Bhutan, given that over 6,000 people live within the boundaries of the Park, it would be known as a multiple use area under IUCN’s international protected area designations.

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A.2. HOST COUNTRY STRATEGY

5. Recognizing JDNP’s importance and threatened state, the Forestry Services Division (FSD), Royal Government of Bhutan (RGoB), has designated JDNP as one of the three priority protected areas to be strengthened under two major, national strategic documents: the “Nature Conservation Action Plan”2, and the Eigth Five Year Plan. The Nature Conservation Action Plan prepared by the FSD is a five year conservation strategy document, setting conservation priorities into the year 2001. It provides guidance to the Nature Conservation Section (NCS) of the FSD under the Ministry of Agriculture (MOA) in day-to-day implementation of the protected area systems (covering 26% of the total land area of the country) and their management.

6. Another important document in relation to the nature conversation is the Forest and Nature Conservation Act of 1995, providing legal framework for the protected areas, social forestry and species conservation in Bhutan. The Forestry Master Plan, prepared in 1991, although outdated, still provides an overall background for a general programme framework for the management of national parks and protected areas, sustainable harvests of forests, community forestry programmes and non timber forestry products. The Forestry Policy Strategy document of the Eigth Five Year Plan places high importance in the proper conservation and sustainable use of the country’s rich biodiversity. The National Biodiversity Conservation Strategy and Action Plan (NBSAP), which is under preparation, will provide the over-arching national and strategic perspective on Bhutan’s biodiversity conservation priorities from forestry to agro-biodiversity. The Bhutan Trust Fund for Environmental Conservation (BTFEC), established in 1992 with GEF support and other bilateral donors, will provide a long term self-sustaining funding mechanism for environmental conservation in Bhutan through its interest earnings.

7. Dinerstein et al. (1995) list the strengthening of protected areas in Bhutan as a top priority for international support. In addition, the Global Biodiversity Strategy and the Fourth National Congress of National Parks both stress the need to improve the management of protected areas. In particular, they highlight the importance of integrating the management of protected areas with the sustainable use of natural resources.

8. In 1993, RGoB upgraded what is now JDNP from a wildlife sanctuary encompassing the whole of northern Bhutan (gazetted in 1974), to the biologically representative and more manageable entity that it is now. Although a priority area, JDNP is extremely new and did not become operational until 1995.

9. The RGoB has felt the need to develop strategies for protected area management which incorporate the needs of local inhabitants as most Bhutanese protected areas have been inhabited by people for centuries. This request for additional GEF support is based on the premise that JDNP requires a one-time, full-scale intervention in order to prevent the further degradation and loss of its biodiversity resources. The intervention is intended to push JDNP over the “establishment threshold” and remove barriers to sustainable development within JDNP. This proposed project in JDNP will provide an effective model for integrating conservation and development which can be applied in other areas of Bhutan.

A.3. PRIOR OR ON-GOING ASSISTANCE2 The approved “Nature Conservation Action Plan” of 1993 was revised in 1995 under the title of “Setting Conservation Priorities Into the Year 2001: A Strategy for the Nature Conservation Section, Bhutan”. The draft was approved by the Government and is awaited for clearance by FAO, Rome.

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10. This proposed GEF intervention will benefit from a significant amount of overall policy work and specific site-related work that has been or is being undertaken in Bhutan. Bhutan’s National Environmental Strategy, which is being prepared by the National Environment Commission (NEC), is a draft document that deals with broader issues of sustainable development including the brown sector (urban planning and pollution), and some green sector issues (renewable natural resources, hydro electricity, tourism, and biodiversity conservation). The development of a tourism management plan for JDNP will be facilitated by this strategy. The National Environmental Strategy will specifically coordinate the integrated management of JDNP on a national level by linking with a diverse array of issues such as population growth, tourism policies, grazing and livestock policies, and forest harvesting policies.

11. The Forest and Nature Conservation Act of 1995 provides a legal framework for the establishment and management of protected areas, social forestry and species conservation. The Act encourages community participation in forest management through social forestry and agro-forestry programmes. This Act provides a solid policy foundation for the implementation of social forestry programmes within JDNP.

12. A National Biodiversity Strategy and Action Plan (NBSAP) is under development in Bhutan with the support of GEF. JDNP is an obvious, national biodiversity priority for Bhutan. This factor, combined with the urgency of establishing JDNP “on-the-ground” and the significant global benefits to be accrued from protecting JDNP, justify this proposed intervention proceeding concurrently with the development of this NBSAP.

13. Concerning on-going programmes directly linked to JDNP, the Bhutan Trust Fund for Environmental Conservation (BTFEC) has to date attributed US$ 197,000 in support of JDNP. The BTFEC was established with GEF support in 1992 and has been under development ever since. The Fund’s mandate requires it to invest in priority areas as identified by the BTFEC Management Board, utilizing only the interest earned on the Fund’s principle. BTFEC’s principle has grown fairly rapidly, reaching the target of US$ 20 million as of October 1996. In early 1996, BTFEC was re-organized under a new Royal Charter, which, among several things, has broadened its investment options. As the Fund enters this new stage of development, under a new charter, it will be developing a new strategic programme and will draw heavily upon RGoB’s development of a Biodiversity Action Plan, which will identify a wide range of biodiversity conservation priorities for the BTFEC.

14. To date the BTFEC has disbursed a total of US$ 319,000, in support of Bhutan’s biodiversity conservation priorities. This is a relatively small amount, given the level of principle the Fund has enjoyed for the past three years. The reasons for this are as follows: 1) The rate of return on the principle was very low due to initial investment restrictions. Additionally, for the first 2.5 years of the Fund’s existence, the RGoB and the Fund were concerned with meeting GEF conditions in order to secure the full US$ 10 million GEF commitment. Most of these conditions were not funding intensive and therefore did not require BTFEC support; 2) the Fund has been striving to reach the US$ 20 million mark and therefore did not disburse all of the interest earned to date, plowing non-disbursed interest back into the principle.

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15. The funds for JDNP have been primarily spent on infrastructure and community development projects (Park headquarters, three schools, and approximately 100 km of trail improvement). While the funds that the BTFEC has invested in Jigme Dorji are helpful, they are not sufficient to bring JDNP up to a full operational level. BTFEC support is determined on an annual basis, with due consideration given to annual interest income (which will fluctuate) and the various proposals submitted for funding. Therefore, it is not in a position to fund a long-term, strategic intervention such as the one proposed here. BTFEC is not intended to provide up-front capital to establish an entire protected area. BTFEC funds are intended to be utilized for annually incurred expenditures, and discrete priority interventions related to on-going priority maintenance efforts.

16. National-level environmental management capacities are being strengthened through a DANIDA sponsored project that is assisting the RGoB with land-use planning on a nation-wide basis. The UNDP/Capacity 21 supported project, assists the Government in strengthening its institution in environmental management and environmental education.

17. In the forestry sector of Eastern Bhutan the World Bank and Swiss Development Corporation are providing support for the policy-level training of government officials, promoting research, and promoting sustainable forest management through the Third Forestry Project. GTZ is supporting a sustainable Renewable Natural Resources project in two districts of Bhutan. Both programmes will be consulted as a matter of course through this effort.

18. Some of the other on-going programmes related to conservation, management, and utilization of biological resources include: Protected Area Planning in Bhutan funded by WWF; Biodiversity Conservation in the Kingdom of Bhutan funded by the Dutch Government; Forest Resource Management and Institutional Capacity Development funded by UNDP/Capacity 21; the Third Forestry Development Project funded by the World Bank/Swiss Development Corporation; the Integrated Sustainable Development Programme in Zhemgang funded by the Dutch Government; and the Integrated Forest Management Project in Ura funded by the Austrian Development Cooperation.

19. All of the efforts listed above have been investigated and found to provide the requisite policy, strategic, and institutional bases upon which the proposed GEF intervention will be undertaken. Their activities are fully consistent and complementary with this proposed intervention, which will implement an integrated conservation and development programme for Jigme Dorji National Park.

20. It is important that the economic development related activities in the Park are inextricably tied to the overall objective of sustainable utilization and conservation of biodiversity. This has been realized over and over again as the result of well meaning efforts to improve the livelihoods of local communities which only ended up exacerbating the original problem in the first place. For example, the Dairy Development Corporation Project in Langtang National Park in Nepal, which improved the incomes of yak herders, hoping that this would encourage the reduction of yak crossbred numbers, resulted in the herders investing their additional income in yet more yaks, exacerbating the original problem of overgrazing in the high country.

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21. This project, while helping to provide alternative income generating activities, will also address the root cause of the grazing problem, a property regime for the alpine grasslands which has not changed with the present taxing system. 22. A model for economic development combined with the overall objective of sustainable utilization and conservation of biodiversity is the GEF pilot phase Biodiversity Project in Pakistan which has successfully implemented a truly participatory, community-based, community-driven, local resource management planning programme. The experience and expertise developed through this effort, during the past two years, will be tapped in order to maximize the effectiveness of the community planning approach for Bhutan.

23. Where many projects have exceeded the absorptive capacity of the host institutions careful consideration has been given to the absorptive capacity of Jigme Dorji’s institutions and communities. This project has been designed and expressly limited by RGoB to avoid this situation. Activities are divided into two successive components designed to be implemented in an integrated fashion, and yet not exceed the absorptive capacity of the existing situation. Training programmes will be phased in along with increased staffing levels. Careful attention will be paid to developing the foundation of Community Natural Resource Management Plans (CNRMPs) before actual work begins on key sustainable use demonstration programmes and other activities.

A.4. INSTITUTIONAL FRAMEWORK

24. The National Environmental Commission (NEC) is the highest cross-sectoral body established in 1989 to monitor and regulate the environmental sector in Bhutan. The Commission is chaired by the Planning Minister, and its members comprise of Home Minister, Trade and Industries Minister, Deputy Minister for the Environment, Secretary of Ministry of Agriculture and Joint Secretary of Forestry Services Division.

25. The Ministry of Agriculture (MOA), consisting of the Forestry Services Division (FSD), Research Extension and Irrigation Division (REID) and the Crop and Livestock Services Division (CLSD), is the lead agency in Bhutan for biodiversity conservation/protected area management. The Nature Conservation Section (NCS) of the FSD, is responsible for all the national parks and the protected area systems in Bhutan. The Head of the NCS is responsible to the Joint Secretary of the FSD.

26. There are nine protected area systems, each of which is to be managed by a team of professional staff, headed by a park manager, who will be responsible to the NCS Head in the FSD. The JDNP is currently managed by its Park Manager and supported by 11 Park staff including wardens, rangers, beat officers.

27. The JDNP falls within 13 Gewogs (blocks), situated in north west Dzongkhags (districts) of Thimphu, Gasa, Punakha and Paro. The Park management has to liaise with the Dzongkhag and Gewog administrations. The Dzongkhag administrations consisting of the Dzongdags (District Administrators) with their Dzongkhag sectoral staff are responsible for the administration of their Dzongkhag development programmes. Dzongdags are directly responsible to the Home Minister. The gewog administrations are headed by gups (Block Heads). The Gups are directly responsible to the Dzongdags.

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28. In keeping with the above existing institutional framework, the executing agency of the JDNP project will be the MOA, and JDNP will be responsible for the project implementation with the JDNP Manager taking the responsibilities of National Project Manager. The Project management will regularly link with the Dzongkhag and the Gewog administrations while planning and implementing project activities especially the community development related programmes of the project.

B. PROJECT JUSTIFICATION

B.1. PROBLEM TO BE ADDRESSED: THE PRESENT SITUATION

29. The traditional livelihood strategies of the 6,500 residents (1,000 households) of 13 different Gewogs have resulted in a complex Park-people relationship. The communities of the seven sub-tropical and temperate regions have access to most development facilities and are in the mainstream of Bhutanese society in terms of language and culture. The residents at lower levels practice subsistence agriculture (sedentary farming). The six sub-alpine gewogs are rather isolated, lacking basic development facilities, and are the home of transhumant herders who have unique cultural adaptations. The residents at higher levels rely on livestock, especially yak, capitalize on the limited and seasonal benefits of tourism (especially families without livestock) and also earn income through incense production and marketing. More specifically, the Laya community, a typically remote community, sustain their livelihoods through raising yaks and bartering yak products with rice and other consumable goods. The semi-nomadic Laya community practices consensus social organization which is a good asset to build upon for the CNRMP programmes. It is clear therefore, that communities depend very much on the natural resources in the Park for their livelihoods. This is an important asset for ensuring the viability of ecosystems. In addition, the local communities are largely dependent on firewood for meeting energy needs. High altitude areas are already having fuelwood shortages.

30. Until now a barter economy has been dominant, where yak products have been exchanged against household articles unavailable in the higher levels, with shopkeepers and farmers in the lower levels. However, a cash economy is quickly pushing out the traditional barter relationships, modifying these complex Park-people relationships. In addition, the human population is estimated to increase by over 1.8% per annum and traditional property relationships are in flux, as taxing systems have been changed from in-kind to cash. Recent detailed surveys of JDNP point to signs of loss of biodiversity through the overuse of grasslands and forests, poaching and fires.

31. The proposed GEF alternative will support a well defined package of activities to address three specific threats to biodiversity conservation and their attendant root causes which are affecting people’s livelihoods:

the unsustainable use of mountain grasslands and other grazing areas. The root causes are the overpopulation of domestic animals due to a lack of alternative economic opportunities;

the unsustainable use of mountain forest resources. Root causes are the lack of alternative fuels/energy, lack of sufficient wood-lots, inefficient utilization of wood for lumber and cooking and lack of a community-based conservation and development programmefor the Park; and

the poaching of plant and animal resources and human caused fires. Root causes are due to the lack of effective control mechanisms, lack of alternative economic opportunities, inadequate personnel and enforcement and un-demarcated boundaries.

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32. Owing to the Park’s remoteness and the generally low population density of the country, migration into the Park is unlikely. B.2. EXPECTED PROJECT OUTCOMES

33. An integrated management plan for JDNP will be in full operation, with the appropriate infrastructures, facilities, institutional arrangements, park management systems and sufficiently trained staff in place.

34. The JDNP will have become a model for protected area management based on participatory planning and implementation in cooperation with concerned stake holders, especially the local communities, to address the main threats to JDNP’s biodiversity and help conserve a prime representation of the Eastern Himalaya eco-region.

35. A GIS data base will have been established within the JDNP, resulting in a better understanding of ecosystem dynamics, farming systems, natural resource use, etc. This information will not only be useful for the JDNP area but also for other protected areas as well.

36. Alternative livelihood potentials, for the local communities in the project area, based on the sustainable utilization of the biodiversity related resources (e.g., extraction of medicinal plants), will have been demonstrated and taken up by the local park inhabitants to supplement their household incomes. Eco-tourism will have been streamlined in the Park area with the development of an eco-tourism management plan. This will also provide information on eco-tourism management for other protected areas in Bhutan. The micro-hydro power installation set in Laya, providing electricity to the local community, will provide an important demonstration unit in the high altitude and remote area as a means to support the livelihoods of the local people. This is especially significant for the women and children as they face most of the drudgery involved in the collection of fuelwood, torchwood, cooking and other household activities.

37. The capabilities of the JDNP staff will have been strengthened, enabling the staff to play a more effective role in biodiversity conservation planning and management. The Park staff and the counterparts from the Dzongkhag and the local communities will have been trained in the management of the Park and the community resources, particularly in participatory management techniques.

38. With regular project management meetings, inter-sectoral collaboration/coordination will have taken place both at the Park level and at the national level in Thimphu.

39. Finally, upon completion of this project, JDNP will be in an excellent position to utilize the Bhutan Trust Fund for Environmental Conservation support for operating and maintenance costs of sustaining priority project-initiated programmes.

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B.3. TARGET BENEFICIARIES

40. The target beneficiaries of the project will be:

Park management through strengthening and 50 additional staff; communities of the Park in 13 Gewogs including all four Gewogs of Gasa District (the park

programme will not however cover Gewog’s RNR outlay for the Eighth Five Year Plan) but also the global community;

enhanced capacity of the NCS and RNR sectoral agencies; conservation of the variety of plants and animals co-existing in different ecosystems of the

Park; and information generated will be useful to other parks within and outside Bhutan.

B.4. PROJECT STRATEGY AND INSTITUTIONAL FRAMEWORK FOR PROJECT IMPLEMENTATION

41. The project will establish JDNP as an effectively managed and operational national park. With over 6,000 people living inside of JDNP, any successful management/protection regime must be a partnership between the Park administration and local (Gewog) citizens. The project design and components are based upon a conservation management plan for the Park recently completed by the RGoB supported by WWF. The preparation of the plan entailed extensive consultations with local stakeholders, socio-economic surveys of every household in the Park, preliminary biological surveys, and assessments of existing information. Essentially, this intervention will implement the key aspects of JDNP’s recently completed management plan with coordinated assistance from the concerned RGoB sectors and the Dzongkhags.

42. In order to address the threats to JDNP’s biodiversity and remove their attendant causes, the following key concepts must be implemented under this intervention:

the management of JDNP must be strengthened. This will involve a whole host of activities related to demarcation, training, and basic infrastructure development. This will also address traditional management-related issues like poaching, eco-tourism, and enforcement of legal systems;

communities within the Park must be brought into the management regime of the Park. This means reaching agreements with them on zoning and sustainable use levels of the Park’s natural resources; and

alternative sustainable livelihood opportunities need to be developed with Park residents, both in the traditional agriculture and livestock sectors, as well as other, non-traditional sectors such as the supply of electricity through a micro-hydro power installation.

43. For purposes of presentation and organization, project activities to address the three threats listed above are divided into three components: a JDNP protected area strengthening component, promotion of sustainable livelihoods component and the set up of a micro-hydro power installation in the Laya component. These components and their corresponding objectives, activities and outputs have been designed to remove the root causes of three specific threats to the maintenance of the overall biological integrity of Jigme Dorji National Park as they are listed above.

44. The three, inter-linked components will be implemented in an integrated, successive manner, beginning with Component 1.

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45. Component 1: Strengthening of the management of JDNP

1. completely establishing JDNP on-the-ground through demarcation of boundaries, infrastructure development, training of staff in management and enforcement; and

2. developing agreements on zoning by preparing a Community Natural Resource Management Plans (CNRMP) with communities within JDNP in order to define sustainable utilization programme.

46. The first major project activity to strengthen JDNP will be to intensify Park management. The infrastructure of the Park, such as trails, outposts, bridges, and interpretive centres, as well as the capacities of the existing Park personnel, will be significantly improved. Only gazetted in 1993, JDNP lacks fully demarcated resource use zones. Zonation will be brought about through a transparent, consultative process involving local communities.

47. All infrastructure development activities proposed are designed to meet the basic needs of the Park managers as far as enabling Park staff to patrol their respective beats. They will be designed to allow staff to monitor areas susceptible to threats and potential threats and areas of wildlife management interest. As a co-financing arrangement, the Government has budgeted for 50 new staff over the course of the five year period (roughly ten new staff per year). The project will be training these staff members as they come on line (since they will be recruited from existing forestry staff they will at least have undergone basic forestry training).

48. Concurrently as part of Component 1, direct activities will be undertaken to develop agreements (CNRMPs) with each of the 13 Gewogs (communities) located in JDNP. Each of the Gewogs drafted a list of priority socioeconomic concerns during the preparation of the recently finalized JDNP Conservation Management Plan. The next, crucial step is to work with the Gewogs on specific plans for managing their respective areas of the Park by developing integrated solutions to local concerns and Park priorities. This will involve Park management working with the communities to jointly define the different use zones in their specific areas. The end result will be a land-use plan for JDNP developed with the full participation and ultimate approval by the stakeholders. These efforts will draw upon the expertise developed through a GEF-supported biodiversity conservation effort in Pakistan, under which IUCN has utilized a truly participatory, locally driven community planning approach.

49. Upon completion of these CNRMPs, a Gewog Park Management Board will be created and given the highest profile and distinction. Members of the Board will accompany Park staff on an integrated conservation and development protected area study tour in the region. These Board members will represent their individual Gewogs in helping to set Park management policy and for the development of relevant programmes.

50. Component 2: Implementation of selected elements of the CNRMP’s by promoting sustainable livelihoods with a new approach that helps traditional resource use systems adapt to rapid change.

51. Many of the activities initiated in the first half of the project will be on-going throughout the project. Training and Park infrastructure development are the most prominent of these. The CNRMPs of Component 1 will lay the groundwork for key sustainable livelihood development

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activities to be undertaken in Component 2. In Component 2 the project will address the root causes of unsustainable resource use (grasslands and forests) in the Park. Drawing upon the concerns and priorities as laid out in the CNRMPs, the project will develop and implement property systems which promote the sustainable use of resources (e.g., rotational grazing schemes, increasing taxes on livestock and pasture improvement). The recently passed Forest and Nature Conservation Act provides the basis to develop more community-oriented forest-use systems across Bhutan. However, it has yet to be implemented within JDNP. This part of the proposed intervention will work with local communities to devise the most efficacious, sustainable approach to forest use and conservation within JDNP.

52. Forest use and grazing are complex issues entrenched in traditional property rights and influenced by more recent economic and societal changes in Bhutan. Unfortunately, these traditional property systems have not evolved and/or adapted sufficiently to meet the rapidly changing ambient conditions (such as the change in the taxing system from in-kind to cash in the early 1970s). With time, strategy, patience and compromise, it should be possible to arrive at a mutually beneficial solution to the problem. This project will be working closely with communities and other stakeholders to develop sustainable use regimes centered on adaptive management with active feedback monitoring.

53. The Park’s initiative in improving the livelihoods of the 80 households in Laya will be reinforced with the supply of electricity for lighting, space and water heating, cooking, cottage and small scale agro processing such as flour and oil mills. New opportunities for local employment will open, reducing rural-urban migration as the electricity generated by the micro-hydro power installation will have direct impact on tourism. The most important opportunity presented by the micro-hydro power installation, however, will be in reducing the pressure on the forest for fuelwood by the local residents in Laya. It will also provide a model for other remote rural areas in Bhutan.

54. Concerning the institutional framework the MOA is the executing agency for implementation. Although implementation responsibility rests with the NCS, various activities will be implemented collaboratively with different entities. Delegated implementation authority rests with the JDNP Park Manager, who as the National Project Manager, will be responsible for on the ground implementation of the biodiversity conservation activities. NGOs will implement the public awareness activities and some of the community development programmes. Selected activities related to sustainable livelihoods will be implemented by the Dzongkhag Administrations. As FSD/NCS staff acquire skills in these new areas, they will also play a greater role in the implementation. This will involve coordinating activities with various government sectors for technical expertise in community forestry, agro-forestry, livestock and agriculture development, rural hydro-electricity, education, and eco-tourism.

55. The project will be implemented over five years. Project management will be assisted by a senior technical expert (UNV) who will be hired initially for two years with extension possibilities. International technical advisors will be recruited for the Gewog planning, tourism planning, grazing management, and forestry extension activities.

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B.5. REASONS FOR ASSISTANCE FROM UNDP/GEF

56. This proposed GEF intervention presents a strong case for GEF financing. The request is based on the premise that JDNP requires a one-time, full-scale intervention in order to prevent further degradation and loss of its biodiversity resources. Indeed, the biological diversity of Jigme Dorji National Park and its global significance is unquestionable. Mountain ecosystems are specifically identified by the COP of the CBD as a priority area. The project itself is strategically designed, based on the Operational Strategy (OS), to address specific, identified threats and their root causes through the integration and sustainable use of biodiversity. The project will bolster the objectives and priority activities of Mountain Ecosystems OP. The priorities addressed under this intervention are as follows: the project seeks to conserve and sustainably utilize biodiversity in the Himalayan region, an area

identified in the OS as being under increasing human pressure and imminent threat of degradation;

the project seeks to establish sustainable land use practices on mountain slopes in order to protect the representative habitats of the Himalayas that are encompassed within JDNP; and

the project will play a key role in strengthening the global network of representative conservation areas for mountain areas.

57. Further, the JDNP itself, given its size and variation in elevation, provides a corridor between lowland and mountain ecosystems, a priority under the Mountains Ecosystem operational programme. In addition, by actually building JDNP into an effectively managed area, the project will be contributing to a protected area complex, which, with JDNP in place, will provide a nearly continuous chain of protected areas and habitats. For instance, permanent icefields in the north of Bhutan to lowland sub-tropical systems in the south on the border with India, incorporating the JDNP, Black Mountain National Park, Royal Manas National Park and India’s lowland Manas Project Tiger Reserve.

58. JDNP is also a national priority as identified in the Nature Conservation Action Plan and the Eighth Five Year Plan and conforms to COP guidance and GEF priorities. The project will promote sustainability through demonstration projects and measures to strengthen local community involvement and integrate conservation and sustainable development. Proposed GEF activities are additional, complementing national expenditures and leveraging development-oriented international funds. This proposal strategically leverages funds to support sustainable development activities, leaving GEF to support the priority biodiversity conservation objectives. The proposal is directly country driven as it has been derived from the recently completed Jigme Dorji National Park Conservation Management Plan.

B.6. SPECIAL CONSIDERATIONS

59. Stakeholder participation, financial sustainability and governmental commitment are central elements of the project design. Different iterations of the project concept have been under development for two years now. Detailed preparation of a draft proposal was completed by JDNP-WWF in 1995. Based upon this proposal and the priorities expressed in the recently completed JDNP Conservation Management Plan, this proposal was developed by the Nature Conservation Section of the Bhutanese Ministry for Agriculture (no PDF funds have been used for this purpose).

60. The participation of local communities in the management of JDNP is inextricably tied to the sustainability of biodiversity conservation efforts in the Park. The development of the Management

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Plan for JDNP was an entirely participatory exercise, with representatives from all 13 Gewogs involved over a period of two years. Meetings were held in every village in the Park. Each of the 1,100 households in the Park was covered over a period of three years by socio-economic survey teams preparing for the development of the Management Plan. This proposal is derived directly from the priorities expressed in the Management Plan and takes stakeholder participation several steps further with the development of CNRMPs and the Gewog Management Board. In addition, stakeholders/community partners will be recruited and trained by Park staff. Sustainable livelihood programmes developed under this project will maximize stakeholder involvement in the process as well as in the outcome.

61. The project was designed and finalized by the JDNP Manager and other related RGoB staff, including close consultations with the BTFEC Chairman. Specific attention was paid to designing a programme that is commensurate with Bhutan’s absorptive capacity from an institutional and community standpoint, ensuring that the resultant programmes developed under the project are sustainable. In addition, discussions have been held with World Bank and UNEP representatives and their comments incorporated. 62. The project has been designed to build financial self-sufficiency. The financial sustainability of JDNP is a key issue. By creating an effectively managed protected area, the project will ensure sustainability by enabling the Park to effectively utilize assistance from the still maturing BTFEC. In addition, the RGoB has indicated that one of the priority expenditures of the BTFEC will be to fund the upkeep costs associated with the protected area network, while RGoB continues to increase its own expenditures related to biodiversity conservation.

63. The Royal Government of Bhutan’s commitment to biodiversity conservation is amply demonstrated by the designation of 26% of the country’s land area for protection under special management regimes. Such a commitment arises from the reverence for nature and life as prescribed by Bhutan’s religious philosophy; a philosophy which has also endowed the Royal Government with a firm foundation on which to build and direct the country’s future. For instance, despite radical changes in Bhutan over the past 30 years, the government has maintained its strong traditional conservation ethic as the basis for its development policies.

64. The RGoB civil service has approved funds for permanently hiring a full complement of staff for JDNP as part of the proposed intervention. Once the Park infrastructure is in place, the RGoB has committed to picking up recurrent maintenance costs in the years to follow by tapping a variety of sources (Tourism, BTFEC, and General Treasury Funds). Jigme Dorji is the highest draw for foreign tourists who visit Bhutan. Specific policies and programmes will be formulated to ensure that revenues from tourism are plowed back into Park management and local community development;

B.7 COORDINATION ARRANGEMENTS

65. To facilitate and coordinate “day-to-day” project implementation, a Project Advisory Group, chaired by the head of the Nature Conservation Section (NCS) of the Ministry of Agriculture, will be formed. The group will consist of five members: JDNP Manager and the UNV counterpart, a project officer from the Budget and Aid Coordination Division of the Ministry of Finance, the project finance officer from the Administration and Finance Division of the Ministry of Agriculture, an officer from the Planning Commission, and the UNDP Programme Officer. The Group will meet on a quarterly basis (15 times in all).

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66. To give the project overall policy and implementation guidance, a Project Advisory Committee will be formed, chaired by the Deputy Minister of the Ministry of Agriculture and consisting of the following members: four Dzongdags (Dzongkhag Governors), three representatives from the 13 Gewogs on the Park, Joint Secretary of Forests, the head of the NCS, one representative from the Health and Education Ministry and the UNDP Resident Representative. The Advisory Committee, will meet on an annual basis in lieu of the regular Tripartite Review (TPR) meetings (five times in all) to review the project progress based on the Project Performance Evaluation Report (PPER) submitted annually by the project management. During such annual review meetings, other relevant agencies involved in the biodiversity conservation and environment related parks and projects may also be invited to participate.

B.8 COUNTERPART SUPPORT CAPACITY

67. Presently, JDNP has 11 regular staff, including the Park Manager and ten Risups or Village Forest Guards. Under the project, ten additional staff will be recruited each year during the project’s five year period from the Natural Resource Training Institute (NRTI), Bhutan Forestry Institute (BFI), and transfers from the FSD staff posted in other parts of the country. Recognizing the need to build up the capacity of the Park staff in quantity well as in quality, training in park management, natural resource management, biodiversity survey, GIS, and community-participatory approaches to plan and manage community resources have been incorporated in the project design. The local community participation in the management of the Park will be ensured by involving the local people in the preparation and in the implementation of the CNRMPs.

68. Once the JDNP is fully operational, the RGoB has committed to picking up recurrent maintenance costs in the years to follow by tapping a variety of sources (Tourism, BTFEC, and General Treasury Funds). JDNP draws the highest number of foreign tourists who visit Bhutan. Specific policies and programmes will be formulated under the projects TA support to ensure that revenues from tourism are plowed back into park management and local community development.

C. DEVELOPMENT OBJECTIVE

69. The development objective of the project is to promote the conservation of the major ecosystems and their biodiversity with the involvement of the local communities. This will ensure that their livelihoods are further enhanced through proper management and sustainable utilization of the natural resources existing in the Park areas.

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D. IMMEDIATE OBJECTIVES, ACTIVITIES AND OUTPUTS

1. Component 1: Fully establish Jigme Dorji National Park as an operational, “on the ground” entity.

70. Immediate objective 1: Fully staffed Park administration and management structure.

Activity 1:

1.1.1. Jigme Dorji National Park will hire a full complement of staff (50 new staff) for Park administration, enforcement and monitoring, and community focal points) by the end of year four of project period. Note: The RGoB Civil Service Commission has committed to hiring the full complement of staff.

Output 1: Fully trained staff managing the Park.

71. Immediate objective 2: All Park staff as well as Gewog partners trained in park management, monitoring, empowerment, enforcement, and survey methodologies (see also component 2).

Activity 2:

1.2.1. Protected Area Management training for Jigme Dorji Park Manager, Assistant Manager, and four wardens at a regional center of excellence.

1.2.2. Wildlife management training for Jigme Dorji wardens and research director.1.2.3. Integrated Conservation and Development Programme (ICDP) regional study tours

for a total of 47 Park staff and Gewog partners. 1.2.4. Community forestry and development extension training for a total of 14 wardens and

Gewog partners.1.2.5. Sustainable development workshop for the leaders of the four dzonkhags within the

Park and Park staff.1.2.6. Management Technical Assistance for two years (UNV).

Output 2: Approximately four wardens trained in protected area and wildlife management. Over 50 park staff and Gewog partners trained in the ICDP-related methodologies and sustainable development. Fourteen wardens and Gewog partners trained in community forestry.

72. Immediate objective 3: The project will strengthen Park management by demarcating Park boundaries where they are not marked and demarcating designated “use” zones within the Park and strengthening Park infrastructure.

Activity 3:

1.3.1. Conduct GPS guided field missions to physically demarcate southern boundary of the Park -- signpost markers set.

1.3.2. Demarcation of internal Park zone boundaries (see 1.4) 1.3.3. To enable guards to properly patrol and monitor Park, eight warden/guard posts will

be built.1.3.4. Two Interpretive/welcome centers built

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1.3.5. Equip Park staff and facilities with basic communication, office, and field equipment. 1.3.6. To improve transportation within the Park, nine traditional and two suspension

bridges will be built.1.3.7. 200 km of trails will be built.

Output 3: 250 kilometers of boundary demarcated. Boundaries of the six different zones within the Park demarcated. Eight warden/guard posts. Two interpretive centers.

73. Immediate objective 4: The project will work closely with local and provincial (Gewog and Dzonkhag respectively) representatives to develop Gewog Community Natural Resource Management Plans (CNRMPs) for the 13 Gewogs located in the Park.

Activity 4:

1.4.1. Gewog planning committees identified. Planning process initiated in four Gewogs per year. Involves ZOPP-led initial workshops, mid-term workshops, and final workshops held in the finalization of CNRMPs. Note: Each Gewog will finalize and implement its own CNRMP for its particular enclave and multiple use zone of the Park. In the process, the zone boundaries will be physically demarcated.

1.4.2. Study tour for committee representatives to model protected area in the region.1.4.3. Short-term training for Gewog based Risups in Park-people interactions.1.4.4. Jigme Dorji National Park Gewog Advisory Committee established.

Output 4: Twenty-six Gewog representatives will have been trained. Thirteen Gewog CNRMPs will have been finalized and will be under implementation. All six land-use zones demarcated and agreed upon by stakeholders.

74. Immediate objective 5: To develop a full tourism management plan with attendant guidelines to enable sustainable tourism in the Park. Note: Given the US$ 200/day mandatory fee RGoB has imposed on tourists/trekkers, tourism is a high value activity in Bhutan. Jigme Dorji is the most popular trekking destination for Bhutan and, given RGoB restrictions on where tourism will be allowed, it will continue to be the top destination. All that is needed is an effective management programme.

Activity 5:

1.5.1. Policies, procedures, and guidelines for a Sustainable Tourism Management Programme in Jigme Dorji will be developed.

1.5.2. Workshops will be held with Gewogs, Dzonkhags, NEC, and Planning Commission and Tourism Authority of Bhutan to finalize Tourism Management Plan.

1.5.3. Establish ten improved campsites along major trails.

Output 5: Tourism Management Programme developed and under implementation.

75. Immediate objective 6: To build a database of baseline natural resource and land-use information on which to base management decisions.

Activity 6:

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1.6.1. Conduct bi-annual Rapid Natural Resource Assessments1.6.2. Conduct management-oriented research on species distribution and population

dynamics for priority species representative of the eight major habitat types. 1.6.3. Build GIS database and tie to a 1:50,000 scale maps of the entire Park1.6.4 Train one Park staff as a GIS technician.

Output 6: Geographical Information database (at 1:50,000 scale) for all of Jigme Dorji Park containing information on species distribution, abundance, livestock numbers, forest cover, and so on. One GIS technician trained.

2. Component 2: Development and implementation of sustainable economic activities based on an integrated conservation and development approach in JDNP.

76. Immediate objective 1: To promote sustainable livestock herding and natural resource use.

Activity 1:

2.1.1. Identify formal and informal user groups, verify existing grazing permits issued by local authorities, and survey and map all registered grazing lands in order to assess stocking rates using GIS.

2.1.2. Extend formal recognition to informal herder groups and develop and implement a new property system that updates old property system to the new, monetary taxing system.

2.1.3. Fodder production pilot programmes will be implemented in tandem with the rehabilitation of degraded slopes and the provision of incentives for adopting more sustainable methods and disincentives for not adopting them.

2.1.4. The project will carry out on-going educational and awareness raising programmes related to grassland and grazing situation

Output 1: Information for effective management. Grassland user groups defined. Grazing permits verified. Information recorded and mapped at 1:50,000,000 scale and entered into GIS.

77. Immediate objective 2: To empower local communities to develop and implement alternative income generating activities.

Activity 2:

2.2.1. Micro-credit. Provide small credits from the regular Bhutan Development Finance Corporation (BDFC) credit scheme for environmentally sustainable economic development initiatives (e.g., tourist transport, local lumber production, and horticultural initiatives). This component will draw upon lessons from programmes in other countries.

2.2.2. Habitat and soil requirements for selected, high-value medicinal plants will be researched and pilot horticultural programmes for the plants implemented. Note: Medicinal plant harvesting is an important source of alternative income for many Park residents. However, once common plants are becoming increasingly rare due to the increasing demand from the National Institute of Traditional Medicine.

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2.2.3. Conduct demonstration programmes on sustainable economic activities related to horticulture, tourism, and lumber.

2.2.4. Promote a sustainable utilization programme for wild medicinal plants. A new property system to control exploitation of the plants will be devised (permits and licenses issued to designated collectors, rotational harvesting schemes).

Output 2: New plant harvesting system in place. Ten new credit schemes per year (for four years) utilized for sustainable economic development. Ten sustainable economic development demonstration workshops held in various locations in the Park.

78. Immediate objective 3: To maintain existing forest cover and rehabilitate degraded forest by addressing root causes of forest loss: lack of fuelwood and alternative energy sources.

Activity 3:

2.3.1. The project will develop pilot cooking/heating stove demonstrations to promote the adoption of more efficient wood-burning stoves in Jigme Dorji’s five communities in the alpine zone.

2.3.2. Pilot solar water boiling reflectors will be demonstrated and made available for purchase in pilot areas throughout the Park.

2.3.3. Social forestry will be promoted through training, provision of seedlings, and establishment of eight nurseries.

2.3.4 One pilot micro-hydro power installation (2 x 10 kW = 20 kW) installed in Laya and basic appliance demonstrations given.

Output 3: Eight nurseries established in areas identified by the communities themselves. Pilot demonstrations on social forestry, cooking/heating stove and solar water boiling reflectors given to 100 households in JDNP, with at least 300 households adopting new technologies. One pilot micro-hydro power generator installed in Laya benefiting about 80 houses and tourist lodges. The electricity will also run flour/oil mills.

79. Immediate objective 4: To raise awareness within the local population regarding biodiversity significance and sustainable development methodologies.

Activity 4:

2.4.1. Development and dissemination of informational materials on Jigme Dorji Park’s remarkable biodiversity. Park residents (and the entire Bhutanese populace) will be the target audience.

2.4.2. Development and dissemination of sustainable development materials for dissemination to Park residents.

2.4.3. An awareness raising programme related to medicinal plant harvesting will be implemented.

Output 4: Ten brochures in Dzongkha produced. One book on Jigme Dorji National Park in English and Dzongkha produced.

E. INPUTS

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80. 1. Government Inputs

Full-time Park Manager/National Project Manager Full fledged park staff including administrative, clerical assistants and drivers. Sufficient budget for staff salary, allowance, maintenance of property and buildings, POL

(paints, oils and lubricants) and operational costs of vehicles. Office, administrative/secretarial support, and utilities for the Project and TA personnel

including residential accommodation to UNV personnel as per existing Government rules.

81. 2. UNDP/GEF Inputs

2.1 GEF Inputs: (US$ 1,500,000)

2.1.1 International Experts: (US$ 105,000)

Eco-Tourism Management Planner for two months: US$ 30,000 UNV for Natural Resource Management for two years with possibilities for extension:

US$75,000

2.1.2 Mission costs: (US$118,000)

Fielding of a mid-term and a final evaluation missions: US$ 30,000 Annual evaluation monitoring through three years post project: US$ 88,000

2.1.3 Subcontracts: (US$ 489,350) - Implementing organizations are given in [parentheses]

Field demarcation of park boundary including signs, check-posts, markers under activity 1.3.1: US$ 27,850 [Park and private contractors]

Land-use zone demarcation under activity 1.3.2: US$ 15,000 [Gewogs and Park] Warden outposts construction under activity 1.3.3: US$ 116,500 [Private Contractors] Traditional bridge (nine wooden and two suspension) construction under activity 1.3.6:

US$ 132,000 [Dzongkhags, Park, and Contractors] Improvement of 200 km trails under activity 1.3.7: US$ 29,000 [Dzongkhags] Development of ten campsites under activity 1.5.2: US$ 25,000 [TAB] Rapid natural resource assessment under activity 1.6.1: US$ 27,000 [Park] Education/awareness creation under activity 2.4.1: US$ 45,000 [Park, RSPN] Printing of education/awareness creation materials under activity 2.4.2= US$ 15,000 [Park]

2.1.4 Training: (US$ 340,000)

ICDP study tour for Gewog partners and Park staff for 47 people on 2.5 weeks study visits under activity 1.2.3: US$ 62,500

In-country/regional study tour for community representatives under activity 1.4.2: US$ 10,000

Protected area management training under activity 1.2.1: US$ 59,500 Wildlife management/survey training under activity 1.2.2: US$ 50,000 Community forestry development extension training under activity 1.2.4: US$ 70,000 In country resource management training under activity 1.4.3: US$ 10,000

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Six-month GIS training for one staff under activity 1.6.2: US$ 15,000 Sustainable development workshop under activity 1.2.5: US$ 42,000 Gewog planning committee workshops under activity 1.4.1: US$ 15,000 Eco-tourism workshop under activity 1.5.1: US$ 6,000

2.1.5 Equipment under activity 1.3.5: (US$ 269,500)

Purchase of field equipment and field gear such as sleeping bags (70), sleeping mats (70), ruck sack (70), rain gear (70), tents(35) GPS(3), solar lamp (20), solar panels(10), and misc. such as tapes, altimetres, clinometres, etc.: US$ 82,200

Purchase of office equipment such as computer/printer (4), laptop (1) photocopier (1) fax (1): US$ 35,000.

Purchase of communication sets - radio trans-receivers(6), hand-held radio (60), wireless telephone (8), motorcycles (5) and vehicle (2): US$ 106,000.

Purchase of a GIS package: US$ 15,000 Local purchases including furniture: US$ 31,300

2.1.6 Miscellaneous: (US$ 178,150)

To cover reporting costs: US$ 22,000 To cover sundry and 3% project service costs: US$ 156,150

82. 2.2 UNDP Inputs ($ 593,000)

2.2.1 International experts: (US$ 50,000)

UNV for Social Forester for two years: US$ 50,000 2.2.2 Subcontracts: (US$ 539,000)

Surveying/mapping user groups under activity 2.1.1: US$ 45,000 Fodder production & rehabilation of degraded grasslands under activity 2.1.3: $ 30,000 Demonstration programmes on horticulture, eco-tourism, lumber under activity 2.2.2:

US$ 10,000. Development of medicinal plant utilization under activity 2.2.3: US$ 56,000 Demonstration of efficient stoves under activity 2.3.1: US$ 30,000 Demonstration of solar water boilers under activity 2.3.2: US$ 50,000 Establishment of nurseries under activity 2.3.3: US$ 18,000 Installation of micro-hydro power unit in Laya 2.3.4: US$ 300,000

2.2.3 Training: (US$ 4,000)

Cost of holding workshops while preparing appropriate property system for grazing.

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Insert (Table 1: Budget total)

21

Insert (Table 2: Budget total)

22

Insert (Table 3: Budget total)

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F. RISKS

83. The major risks associated with the project are the threats to JDNP from the unsustainable use of biological resources within the Park.

84. The entire project is designed to address specific threats, as explained in the Project Objectives and Description Sections. The revision of property systems related to grazing, forest-use, and herbaceous plant use will be a challenging undertaking, as the issue is a sensitive one. RGoB shows a clear commitment to this effort. Although political priorities could change, this is unlikely.

85. Unless local communities are made partners in Park management and appropriate incentives and disincentives provided to encourage and discourage certain activities, the commitment of RGoB will not be sufficient to address the threats.

86. Although the RGoB has made commitments to provide a full complement of Park staff the Government will need to provide full assurance that the staff as required will be recruited.

87. The risk associated with the micro-hydro power installation will involve transporting the equipment to such a remote area. With this risk in mind, generators of ten kilowatts (two sets) capacity will be installed. A seven-kilowatt capacity generator was installed in Lingshi by the National Institute of Traditional Medicine (NITM).

G. PRIOR OBLIGATIONS AND PRE-REQUISITES

88. The RGoB will appoint the National Project Manager (NPM) before signing of the project document.

89. Assurance will be given by the RGoB on the appointment of the Park staff as described in the document.

H. PROJECT REVIEW, MONITORING AND EVALUATION

90. The project management will follow the NEX M&E guidelines and will submit an inception report soon after the active implementation of the project.

91. The project will be subject to the annual tripartite reviews (TPRs), the first review to be held within the first 12 months of the start of full implementation. The NPM shall prepare and submit to each TPR a Project Performance Evaluation Report (PPER) which will be the basis for project progress reviews. Additional PPERs may be requested, if necessary, during the project.

92. Mid-term and final evaluations will be undertaken by external evaluators (STAP roster specialists) following monitoring and evaluation guidelines for GEF.

93. Quarterly progress updates will be submitted by project management to the Head of NCS and the Resident Representative of UNDP.

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94. The NPM will submit the GDRs and the status of fund statements as requested under the NEX manual.

I. LEGAL CONTEXT

95. The project shall be the instrument referred as such in Article 1, para 1, of the Standard Basic Assistance Agreement between the RGoB and the UNDP, signed by the parties on 14 May 1978.

J. BUDGET

96. The project is financed by GEF and co-financed by UNDP. The Government’s contribution is for supporting a full fledged Park staff including administrative, clerical assistants and drivers. Budget details are given in tables 1 (total budget), 2 (GEF portion), and 3 (UNDP portion). In addition, small credits will be provided under the regular BDFC rural credit scheme to support alternative income generating activities for the park residents.

K. WORKPLAN

97. Although full implementation is expected to start from June 1997, preparatory work has been underway since January 1997. These included screening and selection of international staff. Process to procure necessary equipment and preparation to process for awarding contractual works in the first year has also been initiated since January 1997. Please refer to Table 5 for details.

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Insert (Table 5: Implementation Timeline)

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ANNEX 1: INCREMENTAL COSTS:

1. Broad Developmental Goals

The Royal Government of Bhutan has consistently rated the conservation of Bhutan’s natural heritage as an inextricable part of its overall national development objectives. Aware of the proactive opportunity Bhutan possesses in sustainably utilizing its natural resources before they are degraded, RGoB issued the “Paro Declaration” of 1990, declaring Bhutan’s intention to pursue sustainable economic development in all of its iterations. In addition, the RGoB has set aside over 20% of its national territory in the form of protected areas. In the agreement, which established the Bhutan Trust Fund for Environmental Conservation, the RGoB agreed to maintain forest cover on over 60% of its territory. International tourism is being strictly controlled to maximize benefits and minimize cultural and environmental costs associated with it. Clearly, biodiversity conservation is an integral part of Bhutan’s broad development goals.

However, this being said, the RGoB’s capacity to achieve these goals is limited to the extent that without international assistance, the goal of conserving and sustainably utilizing Bhutan’s biodiversity resources cannot be achieved.

2. Baseline

Because this proposed intervention is concerned with one protected area and not all of Bhutan, the appropriate baseline for this proposed project is considered to be the current situation in which RGoB supported activities address the root causes of the threats identified in the proposal within the system boundary of Jigme Dorji National Park. Over the course of the next five years, the RGoB will spend approximately US$ 393,000 on related activities (animal husbandry, agriculture, forestry, and JDNP management) in the system boundary of the Park. This level of expenditure reflects the pragmatic situation regarding the current development priorities on the part of the RGoB.

Baseline expenditures related to animal husbandry are related primarily to providing veterinary care for domestic animals, “gift yaks” to poor herders from His Majesty, and limited pasture improvement. With regards to agriculture, baseline expenditures pay for the distribution of improved seeds and other programmes to maximize food production, fertilizer and pesticide use. Baseline expenditures in the forestry sector include monitoring, fire control, four nurseries, administration costs, and school plantations. Currently, RGoB employs eleven staff for Jigme Dorji National Park.

Under the baseline activities related to Jigme Dorji National Park, the park itself would remain insufficiently managed, staffed and demarcated. Enforcement would be weak, forest management within the park would be minimal, with little development of alternative fuels and livelihoods by local communities. Grassland management would continue to suffer from overgrazing. In conclusion, under the baseline scenario, Jigme Dorji would have little to no “on the ground” management and a steady degradation of biological resources due to insufficient management and enforcement, as well as unsustainable development activities will continue.

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3. Global Environmental Objective

The mountain kingdom of Bhutan, wedged between China and India, is located entirely within one of the world’s ten global biodiversity “hot spots” - the Eastern Himalaya. With over 70% forest cover, Bhutan is known to harbor approximately 7,000 species of vascular plants, 160 species of mammals and more than 770 species of birds. Bhutan’s landscape rises from an altitude of 150 meters above sea level in the southern foothills to over 7,000 meters along its northern border. This dramatic elevation gradient accounts for its diverse flora and fauna, from elephants, tigers and the rare golden languor in the lowlands to the snow leopard, blue sheep and takin in the high Himalaya.

The global environmental objective is to conserve the globally significant biodiversity of Jigme Dorji National park by slowing current environmental degradation trends by promoting the sustainable use of natural resources, instituting a participatory management programme and strengthening the infrastructure of the Park and the management capacity of Park staff. The project falls under the Biodiversity Focal Area, Mountains and Forests Operational Programmes. 4. Alternative:

The GEF contribution to this intervention will establish an “on-the-ground” fully staffed and managed Park. This will be done through planning, training, demarcating, and infrastructure strengthening. An innovative programme will be developed, based upon the recently completed management plan, whereby local communities will be full partners in designing the integrated conservation and development approach to Park management. The alternative GEF-supported activities were designed based upon the priority interventions enunciated in a recently completed RGoB management plan for the Park. They are designed to produce an alternative situation where the Park is a participatory entity, actively and sustainably managing its resources in full collaboration with local communities. National level activities are not part of this proposed intervention, due to their being adequately covered by other, on-going RGoB initiatives. The GEF alternative represents the minimum, most cost-effective, incremental intervention to achieve global benefits over and above the baseline, national benefits. The RGoB will contribute US$ eq. 378,568 in-kind to strengthen the staffing of the Park. This is in addition to their baseline contribution of US$ eq. 393,000 mentioned above.

As part of this alternative package, there are also non-incremental costs associated with bolstering the national (sustainable) baseline of activities. These costs will be co-funded by other sources. The two financing modalities help the project conform to the GEF’s concern to equalize the benefits between the baseline and the alternative.

5. System Boundary

This project has a well defined system boundary, a boundary that encompasses the identified threats/root causes to the focal investment. Geographically, the system boundary is defined by Jigme Dorji National Park. Conceptually, the boundary is defined by the need to accommodate the relevant threats to the focal investment, the Jigme Dorji National Park. These threats are: insufficient management, unsustainable use of forests and non timber resources, and unsustainable use of grasslands. Outside pressures to Jigme Dorji, given the extremely remote and inaccessible nature of

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most of the Park, were deemed to be a relatively low priority for intervention at this stage. Those that are a priority (e.g., poaching) are covered under the management strengthening component of this intervention or are being addressed by other initiatives. In addition, all three of the identified threats and their corresponding root causes have solutions which will have an impact outside the Park.

6. Domestic Benefits

Though there will be a good number of domestic benefits generated from the proposed overall project package, these are not of concern here as they are being generated by funding from other, non-GEF sources. Domestic benefits generated from GEF-supported activities (training, capacity building, infrastructure strengthening, planning), will be minimal. No case is made for their recovery. Improved management of tourism in Jigme Dorji will yield funds for park management, but these will go towards conserving global benefits.

7. Costs and Co-financing

The costs of the proposed alternative intervention are as follows:

Sustainable Baseline $1,031,568(RGoB, UNDP, BDFC)

GEF Incremental Funding Request: $ 1,500,000

Total 2,531,568

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8. Incremental Cost MatrixComponent Cost

CategoryCost Domestic Benefits Global Benefits

Park Strengthening

Baseline $110,000 a) 11 staff employed and minimal field work undertaken.

a) minimal protection of biodiversity resources

Alternative $1,988,568 a) leveraged Government commitment to increase staffing for the Parkb) better tourism management and resulting revenues.c) increased domestic awarenessd) more trained, capable professionals

a) increased enforcement and protection of biodiversity resources. b) High priority site brought under effective management. Participatory management plans implemented. Resources sustainably utilized. Hotspot biodiversity conserved.

IncrementGEFRGoB

$1,878,568$1,500,000$ 378,568

Sustainable Livelihoods

Baseline $ 283,000 - limited social forestry- veterinary care- improved crop varieties- limited livelihood options

Alternative $ 936,000 a) - comprehensive social forestry- revitalized property regimes for grazing and forestry-alternative livelihoods developed-a pilot micro-hydro power generator providing electricity-small rural credit scheme

Pressure on significant biodiversity resources reduced to a sustainable level.

IncrementUNDPBDFC

$ 653,000$ 593,000$ 60,000

Totals Baseline $ 393,000Alternative $2,924,568Increment GEFCo-financing

$2,531,568$1,500,000$1,031,568

9. Agreement

The details of the project design have been negotiated and agreed upon with the Government. Financing arrangements are finalized. GEF will provide US$ 1,500,000. UNDP’s contribution will be US$ 593,000 to support the sustainable livelihoods and the micro-hydro power components. Government’s contribution in-kind will be equivalent to US$ 378,568. In addition, small credits will be made available to the local residents from the regular BDFC rural credit scheme.

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ANNEX 2: LETTER OF COUNTRY ENDORSEMENT

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ANNEX 3: INDEPENDENT TECHNICAL REVIEW

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ANNEX 4: MAP OF JIGME DORJI NATIONAL PARK

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Annex 5: TERMS OF REFERENCE

NATURAL RESOURCE MANAGEMENT (UNV)

The UNV will assist the Park Manager with the technical and management aspects of the park. He/she will assist in:

Coordinating training of park staff and gewog partners in management, monitoring, empowerment, enforcement, and survey methodologies;

Preparing methods of demarcation of park boundaries and formulate participatory demarcation plan;

Preparing annual work plans of the project in line with the overall management plan of the park;

Preparing appropriate monitoring and evaluation regimes for the project; Providing technical backstopping as and when required for the project; Processing study tours/in-service training and conducting workshops; Procuring equipment and installation; Preparing quarterly and annual progress reports of the project; Preparing quarterly financial statements/GDRs of the project; Preparing budget revisions of the project; Preparing PPERS for annual TPR meetings; Preparing TORs for the MTR and the final evaluation mission; and Preparing the final draft project report; Liaise with other TAs and the national project staff. Conducting technical workshops/conferences as and when required for the project.

Experience and Qualification

He/she should have a Master’s degree in natural resource management with minimum three years working experience in protected area park management. Should preferably have field experience in high altitudes under harsh conditions with minimum facilities. Able to organize field trips independently. Working knowledge on Bhutanese History, Culture and Himalayan ecosystems.

Duty Station: JDNPStarting Date: Beginning 1998Duration: 2 years with possibility for extensionLanguage: English/Willing to learn local language

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Annex 6 : TERMS OF REFERENCE

SOCIAL FORESTER (UNV)

The UNV will assist the Park Manager in implementing the activities related to maintaining forest cover and rehabilitate degraded forests. In particular, he/she will assist in:

Developing pilot cooking/heating stove demonstration; Introducing solar water boiling reflectors; Promoting social forestry through training of park staff and Gewog partners and

establishment of nurseries; Preparing Social Forestry Programme plan and methodology. Identifying gewog planning committees through consensus and representations; Initiate planning process in four gewogs per year; Conduct ZOPP-led initial workshops, mid-term workshops, & final workshops; Coordinate formation of Park Advisory committee; Conduct educational and awareness raising programmes; Team working with Natural Resource Management (UNV) on the preceding four

responsibilities; Liaise with other international, project/FSD and Dzongkhag staff.

Experience and Qualifications

He/she should have a degree in Social Forestry with working experience in social forestry and participatory approach techniques in formulating natural resource management plans. Should preferably have field experience in high altitudes under harsh condition with minimum facilities. Able to organize field trips independently. Working knowledge on Bhutanese History, culture, and Himalayan Ecosystems.

Duty Station: JDNP

Starting Date: January 1998

Duration: 2 years with possibility for extension

Language: English/Willing to learn local language.

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Annex 7: TERMS OF REFERENCE

ECO-TOURISM MANAGEMENT PLANNER

The international consultant will assist to develop a full tourism management plan to enable sustainable eco tourism in the park. Particularly, he/she will assist in:

Consulting with the Tourism Authority of Bhutan and relevant travel agencies; Consulting local people in the park for best benefits from tourism; Preparing policies, procedures and guidelines for a sustainable eco-tourism management

programme in JDNP; Preparing final long term eco-tourism management plan for JDNP.

Experience and Qualification

He/she should have a degree in tourism management with emphasis on eco-tourism. Should have field experience in developing sustainable eco-tourism management plans preferably in high altitude mountainous areas under harsh conditions with minimum facilities.

Duty Station: JDNP

Starting Date: 1998

Duration: 2 months

Language: English

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Insert (Annex 8: Detailed Project Financing

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Continued (Annex 8)

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continued (Annex 8)

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Insert (Annex 9: List of Equipment )

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