PROJECT INFORMATION DOCUMENT (PID)



PROJECT INFORMATION DOCUMENT (PID)

CONCEPT STAGE

Report No.: 36129

|Project Name |Nariva Wetland Restoration and Carbon Sequestration Project |

|Region |LATIN AMERICA AND CARIBBEAN |

|Sector |Irrigation and drainage (30%); Forestry (70%) |

|Project ID |P094948 |

|GEF Focal Area |N/A, Carbon Finance |

|Borrower(s) |Government of Trinidad & Tobago |

|Implementing Agency |Environmental Management Agency (EMA) |

|Environment Category |[ ] A [X] B [ ] C [ ] FI [ ] TBD (to be determined) |

|Date PID Prepared |June 5, 2006 |

|Estimated Date of Appraisal Authorization |January, 2007 |

|Estimated Date of Board Approval |April, 2007 |

1. Key development issues and rationale for Bank involvement

Climate is rapidly changing at a global scale. The key driving force is the accumulation of greenhouse gases in the atmosphere that result from anthropogenic activities. Since the industrial revolution, the mean surface temperature has increased at the rate of one degree Celsius per century, with most of the change concentrated in the last decades of the 20th century. Seen over the scale of the last millennium, the rapid warming represents a strong deviation from the norm. With the continuing emission of greenhouse gases, it is now projected that the mean surface temperature may increase up to 6 degrees Celsius during the next 100 years (IPCC, TAR, 2001). A change of this magnitude is unprecedented and will result in significant impacts to be felt at a global scale, potentially disrupting the overall biosphere. Climate change is a very serious environmental challenge that can affect the prospects for sustainable development.

Climate change will affect the physical and biological characteristics of the Caribbean Sea and their coastal areas, modifying their ecosystem structure and functioning. Caribbean nations depending on reef and coastal systems face losses of fisheries and shorelines. Likewise, wetlands, including reefs, atolls, keys and mangroves in the Caribbean are among those ecosystems considered to be most vulnerable to climate change because of their limited adaptive capacity. For example, coral reefs are expected to be impacted detrimentally if sea surface temperatures increase by more than one degree Celsius, above the seasonal maximum temperature. In addition, acidification of the ocean will affect the ability of reef plants and animals to calcify and thus reduce the ability of reefs to grow vertically and keep pace with rising sea levels.

Also, in near-shore marine and coastal areas, many wetlands and coastal forests will be affected by changes in sea level and storm surges. Mangroves and coastal lagoons are expected to undergo rapid change and perhaps be lost altogether as functioning ecosystems. Low-lying coastal areas and associated wetlands could also be displaced by salt water habitats, disrupting fresh-water based ecosystems. Such changes are likely to result in dislocation of migratory birds and aquatic species, not tolerant to increased salinity or flooding. All these may result in impacts to commercially important species and a pole-ward shift of marine production, seriously affecting the sustainability of fisheries.

The Nariva Wetlands are incorporated in the “Nariva Environmental Sensitive Area”, Nariva ESA, adopted by the GOTT and undergoing the process of enacting it to Law. This protected area covers 11,000 ha of one of the most important natural habitats in Trinidad and Tobago (TT). The wetlands, as a landform, cover only 7,000 ha. The remaining 4,000 ha are mostly covered by up-land forest, surrounds the wetland and could be interpreted as buffer/protection belt to the rich wetland landform. Nariva ESA has a very rich biodiversity due to the varied mosaic of vegetation communities (tropical rain forest, palm forests, mangroves, swamp forest and swamps).

As part of the Portfolio of Carbon Finance activities in the region (World Bank, 2004), the Nariva Project offers a unique example of the potential combination of the mitigation and adaptation agendas. The Nariva Protected Area (7,000 ha) is one of the most important protected areas in Trinidad & Tobago (TT). It has a very rich biodiversity due to the varied mosaic of vegetation communities (tropical rain forest, palm forests, mangroves, and grass savannah). However, it was subject to hydrologic changes due to the building of a water reservoir upstream and more than ten years (1985-1996) of clearing by illegal rice farmers.

2. Proposed objective(s)

The project development objective is to cause carbon sequestration through the reforestation and restoration of the Nariva wetlands ecosystem. The restoration of the wetlands will result in other environmental benefits, including protection of endemic species in the area. This will be achieved through a restoration of the natural drainage regime and natural and forced recovery of original vegetation cover. As a result of these actions, carbon will be sequestered and emission reductions will be caused.

3. Preliminary description

The Nariva Project objective is part of the Nariva Restoration initiative which aims at achieving the restoration, to the extent it is feasible of the landscape and ecological characteristics of Nariva through afforestation, hydrologic rehabilitation, fire management and improved agriculture practices.

The project components or interventions seek to recreate the conditions found around 1969, years after the construction of the Navet Dam, but before the illegal land reclamation of the 1980’s. To recreate this scenario the following activities have been identified, conditional in the revenues expected from Carbon sequestration and GHG emission reductions:

Water Management Plan:

In general much, more work is required to (i) assess the real availability of water, its yearly fluctuations, maximum and minimums; (ii) assess water requirements for existing productive (agricultural) water demand. This activity should also include an economic and technical analysis of agricultural potential in sector A, identify bottle necks and suggest alternatives; (iii) identify the land form composition of the Nariva swamp area (geomorphologic analysis); (v) criteria to select high priority restoration areas; (vi) development of engineering options to accelerate the restoration of the ecological functions of Nariva, constraint in the adequate provision of water for agricultural purposes.

Reforestation/vegetation work plan:

Approximately between 1800ha and 2500ha will be reforested, including palm forest over a period yet to be defined. Reforestation activities will emphasize forest areas that were present in the 1969 GIS analysis but were missing in the 1994 or 2003 analysis. These areas include the forest to the west of Sector B, which was cut down by the illegal rice farmers; the “bowl” to the west of Sector B; areas between the Environmentally Sensitive Area and the southwest corner of Sector A; Sandhill; clear cut areas to the west of Kernahan; and the royal palm forest.

Fire Management Work Plan:

The Ramsar Project-Forest Fire Protection Plan for Nariva Swamp issued by the Forestry Division in 1999 outlines the main elements necessary for effective and adequate fire management in Nariva. To assure continued success, the government of Trinidad and Tobago in cooperation with outside assistance should reinforce several components. The proposed work plan includes: fire training for local fire responders, site assessment of fire problems, overall fire response planning and community outreach of fire and environmental education.

Monitoring

The GOTT, Ducks Unlimited (DU), and the U.S Forest Service are in the process of developing a detailed monitoring plan. This monitoring plan is limited in scope: it includes recording the response of reforestation activities and monitors biodiversity through key species. In particular the proposed monitoring plan includes:

• Vegetation –how vegetation communities react to reforestation and the rehabilitation of hydrological system

• Avifauna-with special emphasis on migratory birds

• Aquatic fauna

• Manatee monitoring; and

• Carbon Sequestration

4. Safeguard policies that might apply

[Guideline: Refer to section 5 of the PCN. Which safeguard policies might apply to the project and in what ways? What actions might be needed during project preparation to assess safeguard issues and prepare to mitigate them?]

|Safeguard Policies Triggered (please explain why) |Yes |No |TBD |

|Environmental Assessment (OP/BP 4.01) |x | | |

| |

|Natural Habitats (OP/BP 4.04) |x | | |

| |

|Forests (OP/BP 4.36) |x | | |

| |

|Pest Management (OP 4.09) |x | | |

| |

|Cultural Property (OPN 11.03) | | |x |

| |

|Indigenous Peoples (OP/BP 4.10) | | |x |

| |

|Involuntary Resettlement (OP/BP 4.12) |x | | |

| |

|Safety of Dams (OP/BP 4.37) | |x | |

| |

|Projects on International Waterways (OP/BP 7.50) | |x | |

| |

|Projects in Disputed Areas (OP/BP 7.60) | |x | |

| |

A regional environmental impact assessment approach will be done. The assessment will comprise the information needed in order to mitigate possible impacts and would also help evaluate possible triggering of other safeguard policies.

5. Tentative financing

|Source: |($m.) |

|BORROWER/RECIPIENT |2.45 |

|CARBON FINANCE |0.78 up to year |

| |2012 |

|USDA Forest Service |0.625 |

|Budgetary allocation from Ministry (It is not a firm commitment yet) |2.0 |

|PHRD Grant |0.340 |

| Total |6.195 |

6. Contact point

Contact: Walter Vergara

Title: Lead Chemical Engineer

Tel: (202) 458-2705

Fax:

Email: Wvergara@

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