Project information document (pid) concept stage
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- Rationale for Bank Involvement
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| PROJECT INFORMATION DOCUMENT (PID)
CONCEPT STAGE Report No.: AB979
Key development issues and rationale for Bank involvement In the last fifty years, agriculture intensification has resulted in increased strain on the State of São Paulo’s natural resources, and has led to severe land degradation; in the past, many past policies used to foster and support cultivation on floodplains and other riparian areas as a means to increase levels of crop production. Currently, almost the totality of native riparian vegetation in productive agricultural landscapes is missing or suffering from severe levels of degradation. In the State as a whole, about one million hectares of riparian zones are devoid of any significant forest cover, making the soil susceptible to erosion. Approximately 40% of the State area is classified as highly or very highly susceptible to erosion, with a significant percentage of the surface areas already exhibiting moderate to deep gullies and rills, clear evidence of transportation and deposition of top soil particles downslope through surface wash, and severe loss of vegetation cover along stream banks. Native riparian forests are extremely important for the overall structure and function of ecosystems within the Atlantic Rainforest and Cerrado biomes. The degradation of the State’s native forests, along with the unsustainable use of riparian zones, has seriously affected the structure and function of the State’s ecosystems. This process has led to loss of terrestrial and aquatic biodiversity, increased carbon dioxide emission, and other negative ecological and socio-economic impacts, including higher levels of erosion and a greater number of gullies leading to (i) sedimentation of reservoirs, headwater areas and springs, and (ii) less productive soils. In response to this critical situation, and to address its impact on rural poverty issues, the GoSP is already supporting the World Bank-financed Land Management III Project, which would provide most of the co-financing for the proposed GEF operation. The PEMH’s objectives are to increase and sustain agricultural production, productivity and farm incomes and assist in the conservation of natural resources by (i) promoting the adoption of sustainable land management, planned and implemented at the microwatershed level and with full involvement of the farming community; (ii) developing community environmental awareness and participation in environmental protection efforts; (iii) increasing the extent and duration of vegetative soil cover; and (iv) improving internal soil structure and drainage, thus increasing water infiltration, and safely disposing of any remaining runoff. In addition, in the areas of remaining Atlantic Forest, a KfW-funded Atlantic Forest Protection Project (US$ 20 million) is currently supporting the implementation of eleven Protected Areas and strengthening the state enforcement system throughout the Atlantic Forest of São Paulo State. Rationale for Bank InvolvementThe proposed project is consistent with the current CAS and would contribute to two of the three identified long-term country goals, i.e. better water quality and water resource management, and more sustainable land management, forests and biodiversity. In addition, this project is consistent with other existing Bank activities in Southern Brazil, where in several States the Bank is supporting the sustainable use and management of natural resources, both through Bank lending and GEF Projects. Proposed objective(s) The project’s development objective is to foster the development of adequate tools and mechanisms to facilitate future large-scale restoration of riparian forests throughout the State of São Paulo, both in the Atlantic Forest and Cerrado Biomes, while providing opportunities for improved livelihoods and economic well-being of rural communities. The global objectives of this project are to: (a) stop and reverse land degradation processes in the State of São Paulo, with special focus on riparian ecosystems, both in public and private areas; (b) restore the structure, function, and ecosystem services of riparian forests located within productive agricultural landscapes; (c) increase carbon sequestration in riparian forests and in agricultural soils; and (d) contribute to the conservation of biodiversity of global importance through the planning and implementation of corridors of native riparian forests as a means of connecting fragments of remaining native vegetation, and capacity building activities that enable long-term biodiversity conservation. The State of São Paulo will benefit from having in place a system and the necessary tools for the large-scale restoration of its riparian ecosystems, while the rural farmers will benefit from having access to land management practices adapted to their on-the ground and financial realities, while also having the possibility of financial compensation for their efforts in restoring and conserving the riparian areas within their properties. Preliminary description Proposed project componentsComponent 1 – Policy Development: objective is to set in place a realistic technical, financial, and economic framework for future implementation of a state wide program for the sustainable restoration of riparian forests. There are two sub-components: (i) development of a System for Payment for Environmental Services, and (ii) formulation of a State Program for Recovery Riparian Forests (PEMC). Component 2 - Support to Sustainable Riparian Forest: objective is to ensure the development and dissemination of appropriate methodologies, as well as improve the market offer of seeds of native trees in the quality and quantity necessary for the full restoration of riparian forests in the State of São Paulo. There are two sub-components: (i) the development and validation of a methodology for riparian forest restoration, and (ii) the harvesting of seeds and production of seedlings of native species. Component 3 – On-the-Ground Investments in Sustainable Land Management practices: objective is to promote and disseminate ideas, methodologies, and technologies for sustainable management of natural resources in productive areas, and for the sustainable restoration of riparian forests in the State. There are two sub-components: (i) investments in sustainable land management practices in agricultural and pasture lands, and (ii) implementation of demonstrative pilot projects for restoration of riparian forests. Component 4 – Environmental Education and Training: objective is to set the basis for a more visible and effective participation of local populations in the planning and implementation of local/regional development and conservation activities, with a focus on better quality of life stemming from the sustainable management of natural resources. There are four sub-components: (i) environmental education for school teachers through additional modules and information in the formal educational curricula, (ii) mobilization of stakeholders and dissemination of information within the five priority river basins, (iii) training of various project executors (rural extensionists, technical staff within the State Secretariat of Environment and the Secretariat of Agriculture/CATI, and volunteer environmental agents operating under the PEMH, and (iv) training of project beneficiaries (farmers) in sustainable land management practices and approaches at the microwatershed level. Component 5 – Project Management, Monitoring and Evaluation, and Information Dissemination: This component’s objective is to coordinate, manage, and monitor, on a continuous basis, all activities supported under the project, as well as to disseminate project results at the regional, state, and national levels. There are three sub-components: (i) intra and inter-institutional coordination for effective project management, (ii) monitoring and evaluation of project activities and objectives, and (iii) dissemination of information within project activities and to other interested public. Safeguard policies that might apply The proposed project will have a very positive effect on the environment, especially in relation to the reversal and control of land degradation processes, and the restoration and improved conservation of riparian forests. Some of the expected direct positive impacts in the project area include: (i) improved soil fertility, (ii) improved water quality (both superficial and groundwater), (iii) improved water quantity, and (iv) greater biodiversity within riparian zones. In addition, project-supported activities for environmental education or for improved inter-institutional coordination will likely generate substantial environmental benefits for the five river basins, and for the State as a whole. The project will test models for sustainable restoration and conservation of riparian forests. These areas are considered to be legally protected under Brazilian legislation (Federal Law 4771/65), as “areas under permanent preservation” (APPs – áreas de preservação permanente). The possibility of sustainable use of such areas in small rural properties, to be tested under the project, is supported by a 2001 addendum to the law (medida provisória 2166-67), which allows for “sustainable agro-forestry activities in small rural properties, as long as they don’t change the overall character of the forest cover and do not alter ecosystem function in the area.” An environmental assessment will be conducted during project preparation regarding the testing of new methodologies and techniques for seed collection, restoration of riparian forests, control of leaf-cutter ants, and non-timber sustainable use of riparian forests. The following safeguard policies might apply to this project: Environmental Assessment, Pest Management (in the context of control of leaf-cutter ants), and forests (in the context of non-timber sustainable use of riparian forests). Tentative financing
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