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Document ofThe World Bank

Report No: T7444-TA

TANZANIA: LOWER KIHANSI ENVIRONMENTAL MANAGEMENTTECHNICAL ASSISTANCE PROJECT

TECHNICAL ANNEX

MAY 29, 2001

Environment and Social Development UnitAfrica Regional Office

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CURRENCY EQUIVALENTSUSS1.00 = TSh 827(March 14,2001)

FISCAL YEARJuly to June

ABBREVIATIONS AND ACCRONYMS

DOE Division of Environment, Vice President's OfficeDOW Division of Wildlife, Ministry of Natural Resources and

TourismFBD Forestry and Beekeeping Division, Ministry of Natural

Resources and TourismILFEMP Institutional and Legal Framework for Environmental

Management Project

IREMS Immediate Rescue and Emergency Measures ProjectLKEMP Lower Kihansi Environmental Management Project

LRMC Long Run Marginal CostMEM Ministry of Energy and Minerals

MNRT Ministry of Natural Resources and TourismMWLD Ministry of Water and Livestock Development

NACC National Amphibian Conservation CenterNEMC National Environment Management Council

RBWO Rufiji Basin Water OfficeTanesco Tanzania Electric Supply Company

WCS Wildlife Conservation SocietyWWF World Wide Fund for Nature

Vice President Callisto E. MadavoCountry Director James W. AdamsSector Manager Roger C. SullivanTask Team Leader Peter A. Dewees

Tanzania: Lower Kihansi Environmental ManagementTechnical Assistance Project

TECHNICAL ANNEX

Table of Contents

SECTION A: DETAILED PROJECT DESCRIPTION ..................................................... 1Background ........................................................ IProjectArea ............ ............................................ 2

The Eastern Arc Mountains ........................................................ .. 2Kihansi Gorge Ecosystem .......................................................... 3Kihansi Spray Toad ...... .................................................. 4Conservation Measures ......................................................... 5

Project Objectives and Components ....................................................... .7O)bjectives ............................ . . 7Component 1: Habitat and species conservation and management ........................................................ 7Component 2: Establishment of final water right ... ............................. 10Component 3: Implementing an Updated Environmental Management Plan ........................................................ 13Component 4: Institutional Strengthening ................. ......................................... 14

SECTION B: PROJECT ADMINISTRATION AND IMPLEMENTATION .................................................... 16Institutional Arrangements ...................................................... 16Procurement, Disbursement, and Financial Management ............................................ ,,.,.,,.,., ... 17

Procurement Arrangements ............................................. 17Disbursement Arrangements ............................................. 20Financial Management ............................................. 21

Monitoring and Evaluation ........................................... 23Main Credit Conditions ........................................... 23

SCHEDULES .......................................... 25Schedule A: Key ProjectActivities ........................................... 25

M AP .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .28

Tanzania: Lower Kihansi Environmental ManagementTechnical Assistance Project

TECHNICAL ANNEX

SECrION A: DETAILED PROJECr DESCRIPTION

Background

1. The Tanzania Power VI project was approved in 1993 (Credit 2489-TA), and has fundedthe construction of a 180 MWV hydroelectric facility in south central Tanzania. The facility,located in the Lower Kihansi Gorge, is operated by the Tanzania Electric Supply Company(Tanesco). The Lower Kihansi facility started producing power in December 1999, andcurrently, three turbines are in operation.

2. The Lower Kihansi Hydropower Project is a run-of-the-river operation. The schemeincorporates a 25 m high dam, which results in the inundation of about 26 ha when the reservoiris full.' The dam diverts water into a tunnel which leads to the power generating station. Theproject takes advantage of the change in elevation through the Kihansi Gorge, which dropsnearly 900 meters over 3 km. The water is returned to the river about 6 km downstream.

3. An Environmental Assessment of the project was carried out in 1992, and Governmentagreed to prepare and implement an Environmental Management Plan. Because of the small sizeof the inundation area, the environmental impact of the dam was expected to be minimal. TheManagement Plan focused primarily on mitigating the upstream impacts on the inundation areaand on the communities living in the vicinity of the project. A series of Baseline Studies and along-term ecological monitoring program was financed by the project. By late 1995, it wasconcluded that - contrary to earlier views - the diversion of water for the hydroelectric schemewas likely to have an environmental impact on vegetation on both sides of the 6 km stretch of theriver which passed through the Gorge. In particular, the Baseline studies demonstrated theimportance of the fine spray from the Kihansi Falls for maintaining the microclimate in theGorge ecosystem.2

The reservoir has a total capacity of around 1.6 million m3, and the water detention time is around 12 hours. The powerproject was originally designed to provide power to meet peak load demands, but is now operated in a manner whichprovides base load.

2 The maintenance of sufficient flows through the Gorge to conserve the ecosystem was considered in the recently completedPower Sector Master Plan (Acres International, November 2000) which concluded that maintenance of a 2 mV/secondbypass flow reduces average projected power production at Kihansi by 11 percent; 4 m3/second bypass flow reducesaverage projected power production by 23 percent; and 7 m3/second bypass flow reduces average projected powerproduction by 40 percent. The corresponding reduced total system average production would be 4, 8, and 13 percentrespectively, representing possibly significant investments in generating capacity to account for these shortfalls.

Tanzania, Lower Kihansi Environmental Management Project 2Technical Annex

Project Area

The Eastern Arc Mountains

4. The Lower Kihansi Gorge is located in the Eastern Arc Mountains. The Eastern ArcMountains are a group of mountains which stretch from southeast Kenya through south centralTanzania and are situated between 3020' and 8°45'S latitude and 35037' and 38048' E longitude.They consist of the Taita Hills in Kenya, and the Pare, Usambara, Nguru, Ukaguru, Rubeho,Uluguru, Mahenge, Malundwe, and Udzungwa Mountains in Tanzania. Their age, geologicorigin, and proximity to the Indian Ocean are features which separate them from other highlandregions in East Africa. These same features have also contributed to their very diverse andunique biota, which is quite distinct from the adjacent savannah and woodland habitats in EastAfrica.

5. The total area of natural forest in the Eastern Arc is approximately 5,344 km2 or 0.6percent of the area of Tanzania. The Udzungwa Mountains contain the greatest area of naturalforest followed by the Nguru, Uluguru, Rubeho, and East Usambara Mountains. Nearly three-quarters of the remaining natural forest in the Eastern Arc is open forest - forest in which thecanopy is not intact and contiguous.

6. The total area of closed forest - forest in which the canopy is generally intact andcontiguous - in the Eastern Arc is slightly more than 1,451 km2 or approximately 0.2 percent ofthe area of Tanzania. The Udzungwa and East and West Usambara Mountains contain thegreatest amount of closed forest. Species diversity and endemism is higher in closed, rather thanin open, natural forest in the Eastern Arc Mountains.

7. The Eastern Arc forests have the highest known number of plant and animal species ofany region in Tanzania. Approximately 27 percent of the plant species, 63 percent of thelinyphiid spider species, 43 percent of butterfly species, 33 percent of amphibian species, 37percent of the reptile species, 37 percent of the bird species, and 34 percent of the mammalspecies found in Tanzania occur in these forests.

8. In addition to being species rich, what is particularly striking about the Eastern Arc is theunusually high rate of species endemicity. The Eastern Arc contains one of the highestproportions of endemic species of any region worldwide. Of the known species occurring withinthe Eastern Arc, approximately 23 percent of montane plant species, 82 percent of linyphiidspider species, 39 percent of the butterflies species, 63 percent of the forest dependent amphibianspecies, 68 percent of the forest dependent reptile species, 3 percent of the bird species, and 6percent of the mammal species are endemic.

9. Over the last 2,000 years, the Eastern Arc has lost over three-quarters of its original forestcover, estimated at around 23,300 km2. Much of this loss has occurred during the last 200 yearsdue to a dramatic increase in human population and technological change. The Eastern ArcMountains that have suffered the highest proportional losses of original forest cover are the TaitaHills, Ukaguru, Mahenge, and Nguru Mountains.


10. The Eastern Arc is also the habitat for the majority of the globally critically endangered,endangered, and vulnerable mammal, bird, and tree species found in mainland Tanzania. Eighty-six percent of all mammal species and 90 percent of all bird species listed by IUCN (1996) aseither critically endangered, endangered, or vulnerable in mainland Tanzania are found in theEastern Arc forests. Furthermore, approximately 52 percent of the globally threatened treespecies occurring in Tanzania are found in the Eastern Arc Mountains.

11. As a result of the extensive threats facing the Eastern Arc forests and their exceptionallyhigh concentrations of endemic species, the Eastern Arc and the coastal forests of Tanzania andsouthern Kenya have been identified as one of the 25 most threatened ecosystems worldwide -one of the so-called global biodiversity hot spots. The Eastern Arc Mountains and coastal forestsof Tanzania and Kenya have the highest ratio of endemic plant and vertebrate species per 100km2 of all 25 biodiversity hot spots.

Kihansi Gorge Ecosystem

12. The Kihansi gorge is located in the Eastern Arc, along the eastern escarpment of thesouthern Udzungwa Mountains. The gorge, created by the Kihansi River is approximately 4 kmin length and 0.5 km in width. The Kihansi River, as it flows through the gorge, plunges over aseries of waterfalls and rapids. The main Upper Falls at the head of the steeped-sided gorge isover 100 m in height and the Lower Falls is approximately 30 m in height. There are severalother smaller falls in the gorge which are between 10 and 30 m in height.

13. The gorge contains four major vegetation types: miombo woodland, montane forest,Filicium forest, and wetland spray meadow with a respective area of approximately 95 ha, 100ha, 0.25 ha, and 2.0 ha.

14. More than 23 plant species occur in the Kihansi gorge that are either globally threatenedor are species having regional and global conservation importance. Three of these species - awild coffee (Coffea sp.), a species in the Acanthaceae family, and species in the Triuridaceaefamily - are known only from the Kihansi Gorge and have not yet been formally described.While it is possible that these three species occur outside of the Kihansi Gorge, further fieldwork is needed to establish their distribution and abundance.

15. Sixteen bird species occur in the Kihansi Gorge that are of conservation concern. Sevenof these species are globally or regionally threatened or near-threatened. All of these specieshave much large populations outside of the Gorge. If local populations of these species withinthe gorge were to become extinct, it should not affect the global populations of these speciesbecause of the very small size of the Kihansi Gorge populations.

16. Six species of primate occur in the Kihansi Gorge. Of these species, the Uhehehe RedColubus is of conservation concern. The Uhehehe Red Colubus has much large populationsoutside of the Kihansi Gorge. The long-term population viability of the Uhehehe Red Colubus inthe Udzungwa Mountains can be enhanced by developing a landscape-wide conservationstrategy for the Kihansi Gorge in the context of the Udzungwa Mountains.


17. Surveys that have been conclucted to date of small mammals, fish, and insects have foundthat species of these taxa have broadi geographic distributions outside of the of the Kihansi Gorgeand thus should not be adversely affected by alteration in patterns of discharge through thegorge.

18. The total area of natural forest in the Udzungwa Mountains is 2,103 km2 of which 389km2 is closed forest. Approximately 89 percent of the original forest cover in the UdzungwaMountains has been lost (mostly in the last 200 years). The remaining natural forest in theUdzungwa Mountains is highly fragmented with a median patch size of 9 km2. The montaneforest in the Kihansi Gorge is one of the smallest patches of natural forest in the UdzungwaMountains. Many plant and animal species in the Udzungwa Gorge face additional long-termrisks of extinction as a result of habitat isolation and area effects.

19. There is modest agricultural settlement upstream of the Gorge in the catchment area.Agriculture in much of the catchment is carried out on steeply sloping hillsides, without terracingor other soil conservation measures. Soils are unstable and prone to erosion. Agriculture, as wellas the loss of forest cover in the catchment, poses additional management challenges for theGorge ecosystem because of increased sedimentation and irregular streamflow which is anoutcome.

Kihansi Spray Toad

20. In late 1996, the Kihansi Spray Toad (Nectophrynoides asperginis) was discovered in theKihansi Gorge. It was formally described as a new species in mid-1998. Using recentlyestablished IUCN risk criteria, the authors describing the Kihansi Spray Toad proposed that itshould be listed as critically endangered because of its highly restricted geographic distribution:it is known only from four wetland meadow sites within the Kihansi Gorge. Though the KihansiSpray Toad is not currently included in IUCN's Red List of critically endangered species(published listings are only made every four years), the entire genus, Nectophrynoides, is listed

Table 1: Immediac and source of threats to habitats and s ecies in the Kihansi Go

Short-termn wetland spray Kihansi Spray reduction in natural reduction in wctlandmeadow Toad spray habitat, increased risk of

predation disease, andproblems of smallpopulation size(demographic, genetic,environmentalstochasticity)

Medium-tern wetland spray Kihansi Spray reduction in natural loss of habitat, desiccationmeadow, Toad spray resulting in drier of montanc forest;montane forest Coffea sp. conditions; increased increased risk of fire

Triurid sp. risk of fire; reservoirAcanthid sp. flushing regime

Long-term wetland spray multiple plant reduction in natural loss of habitat + isolation +meadow, and animal spray + isolation + area effectsmontane forest species area effects __ -

Tanzania, Lower Kihansi Environmental Mantagement Project 5Technical Annex

in CITES Appendix I as endangered.

21. The breeding biology of the Kihansi Spray Toad, as well as its very localized spatialdistribution, are factors that make it particularly prone to human disturbance. The Kihansi Spraytoad is oviviparous or live-bearing and thus the fecundity of this species is low in comparison toegg-laying species.

22. The Kihansi Spray Toad has one of the smallest geographic ranges - approximately 2.0ha - of any tetrapod, worldwide. In addition, all of the sub-populations are located along a 4 - 5km stretch of the Kihansi River. This species is highly vulnerable to extinction due to acatastrophic event such the introduction of a predator, competitor, disease or the severe alterationof its habitat.

23. As a result of the reduction of water flow through the gorge and isolation and areaeffects, multiple habitats and plant and animal species in the Kihansi Gorge face increasingthreats. In the short term, the wetland spray meadows and the Kihansi Spray Toad are thehabitats and species that are most vulnerable. In the medium-term, the montane forest and thethree undescribed species of plant (Coffea sp., a Triurid, and a Acanthid) in addition to thewetland spray meadows and the Kihansi Spray Toad are probably most vulnerable. In the long-term, multiple habitats and species in the Kihansi Gorge face will face increased risk of alterationor extinction. The nature of these threats and their likely impacts are indicated in Table 1.

Conservation Measures

24. A series of conservation measures have been identified to address the various threatsfacing the Kihansi Gorge ecosystem. These are summarized in Table 2. The measures includecaptive breeding of the Kihansi Spray Toad, installing artificial spray irrigation, constructingwetland spray meadow walkways, evaluating intermittent bypass flows, identifying thedistribution and abundance of the newly discovered plant species, identifying the distribution andabundance of the Kihansi Spray Toad and appropriate habitat outside of the Kihansi Gorge,translocating the Kihansi Spray Toad, and developing a landscape-wide conservation plan for theKihansi Gorge in the context of the Table 3: Immediate Rescue and Emergency MeasuresUdzungwa Mountains. (IREMS) for Lower Kihansi Gorge

Ecological Management25. Short term emergency * E cological studies of the Kibansi Spray Toadmitigation measures are already * C2onstruction of walkways in the spray wetlandsunderway, with separate donor . Studies of the Mhaala spray wetlandfinancing through the Immediate * Artificial spray extension

] Kihansi Spray toad translocation studiesRescue and Emergency Measures Preparation for Granting Final Water RightProject (IREMS). These are * Studies of internittent high flowssummarized in Table 3. The impact . Studies in preparation for final water right determinationof these measures will need to be Preparation Studiesassessed. LKEMP is expected to * Capacity Needs Assessmentfinance medium and longer term . Kihansi Area Conservation PlanTechnical Reviewsmeasures, based on this assessment. ehia eiwNotes: Short-term mitigation measures underway with

Nonvegian and Swedish assistance.

Tanzania, Lower Kihansi Environmental Management Project 6Technical Anne-x

Table 2: Temporal Sequence for Assessing and Implementing Short- and Medium-TermConservation Measures in the Kihansi Gor e

aptive breedingof On-going a"Insurance Short- to DLimitedcapacity Srvivorship oftheKihansi Spray policy"against medium-term atomaintain captivewbred toadsToad m the extinction instcaptiveobred mintheaild.

of the toad species in Understanding ofb. ski-jump feasibility lotperpetuity t oad ecology

I | j i ~~~~~~~~~~which can bemaInte e & pricated in vitro

Artiricial Spray a. Being Maintain spray Short- to Disturbance of Response ofIrrigation tested wetland during |medium-term habitat during |wetland spraya. misting spray b. Preliminary the dry season installation, meadow b. ski-jump feasibility |long-term vegetation, toads|

assessment IIImaintenance I& predators ICreation of wetland Preliminary Reduce human Short- to May be placed Indirect effects onspray meadow assessment disturbance in medium-term incorrectly for the toad andwalkways the wetland purposes of wetland vegetation

spray monitonrng;meadows damage wetland

during._______________ -_. _|_---__ installation

Intermittent bypass Limited Maintain spray Short- to long- Unwillingness Response of toads,flows observations wetland & term or inability of and their food

montane forest TANESCO to items to rapidduring the dry release desired fluctuations inseason bypass flow discharge; capacity

to reduce habitat._________________|__ desiccation

Survey distribution Limited Establish the Short- to May overlook Species have notand abundance of observations level of threat medium-term sites containing been formallynewly discovered facing the new these species describedplant species plant species |______Survey distribution Limited Identification Medium- to May overlook The likelihood of aand abundance of observations of other long-term sites containing highly disjunctKihansi Spray populations these species distributionToad and and sites forappropriate habitat translocationoutside the KihansiGorge ______I_I

Translocation of No action to Reduce the Medium- to Translocations Detailed ecologythe Kihansi Spray date risk of long-term of amphibians of the toad andToad extinction of have had a high identification of

the toad failure rate suitable sitesLandscape-wide No action to Reduce long- Medium- to long Unknown social Social andconservation plan date term risk of termt and economic economic costs offor the Kihansi extinction for costs associated establishingGorge in the many plant and with establishing wildlife corridorscontext of the arimal species wildlife and expandingUdzungwa in the Kihansi corridors and protected areaMountains that Ciorge expanding coverage; potentialwould include protected areas; for increased ratesestablishing wildlife increased rates of predation,corridors and of predation, disease,expanding disease and outbreedingprotected area outbreeding depression, etc.coverage depression

Tanzania, Lower Kihansi Environmental Management Project 7Technical Anne-x

Project Objectives and Components

Objectives

26. The objective of the proposed Lower Kihansi Environmental Management Project(LKEMP) is to put in place a series of imedium-term measures to ensure the long-termconservation of the Kihansi Gorge ecosystem and upstream catchment areas. At the nationallevel, the project has the objective of supporting the development of a coordinated and consistentlegal and institutional framework for environmental and water resources management andstrengthening of ecosystem monitoring and assessment functions of the environmentalinstitutions. The proposed project is comprised of four components:

* Habitat and species conservation and rnanagement;* Establishment of final water right;. Implementing an Updated Environmental Management Plan;* Institutional Strengthening.

27. Estimated project costs and the financing plan are summarized in Tables 4 and 5.

Component 1: Habitat and species conservalion and management

28. The project is expected to develop and launch a Kihansi gorge ecosystem monitoring andconservation program, to provide resources to follow-up on the captive breeding efforts (inparticular to finance translocation studies, to assess the feasibility of, and to develop a plan forthe reintroduction of the Kihansi Spray Toad to another habitat in Tanzania, if this is judged tobe the most appropriate approach for the conservation of the species. Among other things, themonitoring and conservation program would identify threats to other endemic or threatenedspecies in the Gorge ecosystem, and would develop and implement necessary mitigationmeasures. These could include altering the bypass flow regime, translocation and reintroduction,or ex-situ propagation.

29. Ecosystem monitoring and conservation program. The objective of the ecosystemmonitoring and conservation program will be to develop and implement monitoring protocols forthe Gorge ecosystem (relying on the best technical inputs available), to evaluate the impacts ofearlier mitigation interventions in the Gorge (such as the spray irrigation system), to recommendchanges or improvements to these, to examine new mitigation proposals (such as the proposed'ski jump' option), and to support a comprehensive program of ecological research of relevanceto conservation of the Gorge ecosystem.

30. The development of monitoring protocols is an early priority. Past efforts at mitigationhave been hampered, for example, because of methodological inconsistencies in monitoringpopulations of threatened species. Much early work focused principally on systematics, and onspecies identification, rather than on population dynamics, and how species distribution mightchange with changes in the ecosystem. Baseline studies have, to some extent, been biased towardunderstanding the distribution of forest tree species, rather than the distribution of plant speciesmore generally or wider ecosystem studies.


Table 4: Project Costs b Com onent

2. Establishment of Final Water Right 330 263 593 1 13. Implementing an Updated Ernvironmental 651 506 1,156 22

Management Plan4. Institutional Strengthening 351 909 1,259 24Total BASELINE COSTS 2,3841 2,863 5,247 100

Physical Contingencies 238 286 525 10Price Contingencies273159 1

Total PROJECT COSTS 2,899 3,469 6,368 121

Table 5: Project Costs, by Financier

31. The project will provide support for annual consultations amongst project personnel,researchers, and key stakeholders, for the purposes of defining the scope and boundaries ofneeded research and required studies and to establish monitoring protocols as well as to providea forum for presenting preliminary and final results. It is important that information and findingsare freely and regularly exchanged among institutions, scientists, and project personnel involvedin research, monitoring, and assessment in the Kihansi Gorge as well as between institutions andindividuals involved in situ and ex situ conservation activities of the Kihansi Spray Toad.

32. Monitoring studies should focus, for example, on the impact of short- and medium-termconservation measures which are underway, and research is required to fill critical gaps inknowledge. Particular attention will be given to developing monitoring protocols that havesufficient statistical power to detect long-term trends in populations, communities, andlandscapes. Of special importance are detailed ecological studies of the Kihansi Spray Toad and

its habitat requirements, the distribution, abundance and ecology of the newly discovered plantspecies, effects of intermittent bypass flows on the Kihansi Spray Toad and wetland meadowsand montane forest, and the social and economic costs of establishing wildlife corridors andexpanding protected area coverage in the Udzungwa Mountains.

33. The project will establish a mechanism to provide resources, through an .ipen,competitive, and peer-reviewed process, to national and interational scientists to conduct short-and medium-term studies for the purposes of filling critical gaps in knowledge. Furthermore,

Tanzanian students and interns from relevant institutions will be supported under the institutionalstrengthening component of this project to conduct field research on important aspects of the

ecology of the Kihansi Gorge.

34. The project will provide resources to establish a permanent environmental monitoringstation in the Gorge, with support facilities in Kihansi but outside of the Gorge. The permanent


environmental monitoring station will be constructed at the existing research camp site, and willbe designed on the basis of specifications to be determined as a result of the first consultationsamong stakeholders and researchers and on monitoring requirements and protocols. Theenvironmental monitoring station will be constlucted and operated in a manner which has a low-impact on the immediate ecosystem, will be dlesigned to operate year-round, and will house afield laboratory and accommodations for researchers, and visitors from coordinatingenvironmental institutions including members of the MTAC and the Steering Committee.

3 5. Species conservation and captive breeding. A captive breeding program for the KihansiSpray Toad was launched in November 2000 by the US-based Wildlife Conservation Society(WCS) and the National Amphibian Conservation Center (NACC). Around 500 individuals weretaken from Kihansi for the purpose of captive breeding. The success of the captive breedingprogram ultimately depends on the successful reintroduction of the species to Tanzania either tothe original, restored, habitat in the Gorge, or to another similar habitat in Tanzania.

36. The project may provide resources to retain specialist services needed to maintain thecaptive breeding program until the species can be returned to Tanzania. These services will beidentified during project implementation, in cooperation with the lead captive breedinginstitutions. In addition, the project will provide resources to enable the Wildlife Department,others from NEMC, the MTAC, or the MAultisectoral Steering Committee to undertakemonitoring visits to the captive breeding facilities once a year.

37. Field work and related studies to examine the potential for reintroducing the toad toanother site in Tanzania was launched as part of the IREMS project. It is unlikely that thesestudies will be brought to closure in the short term, and there is clearly a need to continue tosearch for alternative reintroduction sites. The project will finance translocation studies with theobjective of developing and implementing a plan for reintroduction of the species. The decisionto translocate the species will be made as an outcome of consultations with specialists andresearchers. The project will finance oversight monitoring activities by NEMC.

38. Landscape-wide conservation plan. The Kihansi Gorge comprises a small fraction ofthe much larger Udzungwa mountain ecosystem, on which it is highly dependent. TheUdzungwa Scarp Forest Reserve, for example, accounts for around one-third of the entire watercatchment for the Kihansi hydropower project. Preliminary studies have been undertaken withregard to the need to ensure that forest fragments remain connected by corridors to reduce thethreat of local extinction. The IREMS project has launched the preparation of the Kihansi AreaConservation Plan (which focuses largely on the immediate Gorge and the vicinity). This planwill be reviewed by LKEMP and funds will be mobilized from other sources to support itsimplementation.

39. The LKEMP proposes to extend the Kihansi Area Conservation Planning process to thewider landscape and the upstream catchment area, to incorporate some of the issues with regardto Kihansi into conservation of the Udzungwa Mountains ecosystem and the farming systems asa whole. This activity will be coordinated with the proposed GEF Eastern Arc Conservation andManagement Project and the DANIDA supported Udzungwa Mountains Forest Management andBiodiversity Conservation Project, and funds will be mobilized from other sources to support itsimplementation.


40. Capacity building. The project will support teaching in Conservation Biology at theUniversity of Dar es Salaam to increase the institutional capacity of Tanzania to conserve andmanage threatened habitats and species and to train future researchers, natural resourcemanagers, and decision makers in conservation biology. Additional support will be provided forthe overseas training of 2 doctoral students in conservation biology with a focus on problems ofconserving and managing threatened habitats and species in Tanzania. Support shall also beprovided for the overseas training of 2 Masters degree students who shall conduct their fieldresearch on aspects of the ecology of the Kihansi Gorge, and through in-service, short course,training of technical staff, as required. The project will also finance training needs formonitoring staff in the Vice President's Office, including (as appropriate) study tours andexchange visits.

Component 2: Establishment offinal water right

41. The project will continue to implement the work plan for the modified flow regimesprepared under the Immediate Rescue and Emergency Measures (IREMS) Project which isintended to finance a transparent process for establishing a final water right for Tanesco tooperate the Kihansi facility on the basis of scientific inputs and representations from the Ministryof Water and Livestock Development, the Ministry of Natural Resources and Tourism, theNational Environment Management Council, the Environment Division (Vice President'sOffice), Tanesco, stakeholders in the scientific community and NGOs. The project will financethe operations of the Multidisciplinary Technical Advisory Committee (MTAC) to carry outseveral tasks.

42. Interim bypass flow monitoring. An interim monitoring program will be instituted toensure that the provisional maximum bypass flows (of between 1.51 - 1.89 m3/s, or a continuousaverage flow of 1.7 m3/s) from the bypass pipe is maintained until the final water right is granted.An interim monitoring program will be prepared with support from the project, and sanctionsagainst non compliance will be outlined. Implementation of the interim bypass flow monitoringwill be the responsibility of the RBWO and NEMC and it should include: (a) continuous flowmeasuring devices at the RBWO flow gauging station, (b) regular reporting of the continuousenvironmental flow releases, and (c) frequent field monitoring by RBWO. To the extent possible,interim monitoring will rely on existing data collection which is undertaken by Tanesco as partof its power station management regime.

43. Flow manipulation and ecological studies. To test the efficacy of measures for partiallyrestoring the degraded Kihansi Gorge ecosystem, a series of intermittent high flow studiescoupled with ecological studies will be carried out to determine a modified environmental flowregime. The objective of the intermittent high flow studies will be to examine the dispersion andamount of spray and microclimate changes (temperature and humidity) against different flowregimes in the Kihansi Gorge. The ecological studies will focus on survivorship and natality ofthe Kihansi Spray Toad, and effects on predators, food items and the wetland plant community.Experimental ex situ studies will be included as part of this research to examine the impact ofintermittent high flows on aspects of the ecology of the toad and its habitat.

Tanzania, Lower Kihansi Environmental Management Project 11Technical Anne,x

44. Intermittent high flow studies. A combination of intermittent high flow releases togetherwith low background flows (i.e., full bypass releases) will be tested to develop partiallyacceptable conditions in the gorge. The efficacy of the strategy for influencing statisticallysignificant changes in the amount and dispersicn of the spray and temperature and humidity willbe tested over a 24 month period.3 A controlled flow regime will need to be operated for acontinuous period of at least several days if any indications of long term effect is to be expected.Flow manipulation studies should be carried out during both the dry season and the wet seasonand should include several variations for the intermittent high flow sequences with constant lowbackground flows.

45. Ecological studies. The ecological implications of the flow manipulation studies (onsurvivorship and natality of the Kihansi Spray Toad, and effects on predators, food items and thewetland plant community) will also be carefully investigated.

46. Proposed flow manipulation and ecological studies are summarized in Table 6.

47. Financial and economic evaluation. Based on the findings of various studies, aneconomic and financial impact of power losses due to a range of modified environmental flowregime will be carried out.

48. Prepare recommendations on a modlified environmental flow regime. Based on anevaluation of the studies carried out, the MTAC will recommend to the NEMC as an input intodecision making by the Rufiji Basin Water Board on the modified environmental flow regime tobe stipulated as a condition of the final water right. This recommendation should:

* focus on the conditions for a water right for Phase 1 (180 MW) operations4

• be based on balancing the conservation value of partial restoration of the Kihansi Gorge andthe financial and economic impact of a imodified environmental flow regime, within theprevailing policy environment towards water resources management.

* include the operating conditions and criteria for a final water right. The operating conditionsfor a final water right will include flow combinations to be released through existing bypasspipe and other outlet works of the dam (i.e., gates, etc.) during both the dry season and wetseason with provisions to provide the flexibility for modifications, should futurecircumstances warrant. Release water quality conditions will also be stipulated.

3 The 24 month period would include the intermittent flow studies to be carried out under the short- and medium-ternmeasures.

4 The maximum water flows for operating the three Phase 1 60 MW turbines is 24.9 m3/s.


Table 6: Proposed Flow Manipulation and Ecological StudiesFlow Manipulation StudiesFlow manipulation studies should be carried out during the dry season as well as during the wet season andshould include several variations for the intermittent high flow sequences with constant low backgroundflows. Studies would have the objective of determining dispersion and temperature effects of different flowregimes. For example,

* Low background flows (1.7 m3/s for 18 hours) plus 4 m3/s for 2 hours, followed by 6 m3 /s for 2hours, and 8 m3/s for 2 hours;

. Low background flows (1.7 m3/s for 20 hours) plus 8 m3/s for 4 hours,• Low background flows (1.7 m3/s for 20 hours) plus 10 m31s for 2 hours followed by 8 m3/s for 2

hours;. Low background flows (1.7 m3/s for 12 hours) plus 3 m3/s for 6 hours, followed by 4 m3/s for 4 hours

and 6 m3/s for 2 hours; and,. Constant background flow of 3.0 and 3.5 m3/s for 24 hours.

The water quality implications (silt and sediment loads) of the intermittent high flow sequences would also beanalyzed.Ecological StudiesFx-situ activities (greenhouse/zoo)

. Plant species response (growth rates/survivorship) to varying flow levels; and,. Kihansi Spray Toad survivorship and natalitv as a function of varying* temperature, hunmidity, UV levels.

In-situ activities (Kihansi Gorge)* change in microclimate;* dispersion and amount of spray;. response of food items;I response of predators;. change in plant community; and,* survivorship of toads.

Longer term studies to examine in greater detail the ecology of the toad and the newly described plant species.etc., will continue beyond the 24 month period.

49. Monitoring and enforcement of the final water right. An effective system that isrobust and practical for monitoring and enforcement of the final water right will be put in placeto ensure compliance with the provisions of the final water right, and in support of the existingWater Utilization and Control Act (1974, Cap. 42). These measures will be integrated into theimplementation program for the updated Environmental Management Plan. A monitoring andenforcement program for regular monitoring, and sanctions against non-compliance will beprepared. This program will be implemented by the RBWO and NEMC.

50. Support data collection for hydrological model calibration. The project will supportcollection of additional hydrological data5 and database development for calibrating thehydrological model that TANESCO is developing. The hydrological model will be used forsupporting the operations of the power facility to optimize the dual objectives of hydropowergeneration and Kihansi Gorge Ecosystem management.

"he data to be collected include climate, rainfall, stream flow, water quality and sediment load. The station locations anddata collection frequency will be determined by TANESCO and RBWO.


Component 3: Implementing an Updated Environmental Management Plan.

51. In light of the discovery of threatened endemic species in the Kihansi Gorge ecosystem,there is a need immediately to prepare supplemental Environmental Assessment work, and todevelop an Environmental Management Plan, which must be implemented as a condition of thefinal water right which is to be granted to Tanesco to operate the facility and to account for anyproposed future changes in power infrastructure at the site. In conjunction with the first projectcomponent, the project will finance the design, organization, staffing, and funding, for anenvironmental monitoring center/station based at Kihansi which can independently meet thechallenges of monitoring and implementation of an updated Environmental Management Plan,and which involves local government in implementation. The project will finance establishmentand operation of this center/station until long-term financing arrangements can be agreed withTanesco. The project will support NEMC to prepare ecosystem monitoring guidelines for thedistricts in the Kihansi catchment area. A feasibility study will be carried out to assess the mostcost-effective means for ex-situ species conservation and the conditions under which thisapproach should be taken, including establishment of a captive breeding facility in conjunctionwith the environmental monitoring center/station.

52. Preparation of the EMP update. Preparation of the updated EnvironmentalManagement Plan should commence immediately, based on the extensive information alreadyavailable. The EMW should consider the results from the environmental studies already carriedout in Kihansi, and should include enough flexibility to incorporate new lessons as they becomeavailable, particularly from the Ecosystem monitoring and conservation program as well asfrom work carried out to establish the final water right.

53. The updated Environmental Managernent Plan will specify the conditions which bindTanesco to operate the hydroelectric facility as a condition of the final water right, and willdescribe independent monitoring arrangements to ensure that Tanesco remains in compliancewith these conditions. The EMP will also describe further mitigation measures which should betested or otherwise implemented.

54. The EMP should also give consideration to proposed changes in the infrastructure at theKihansi site, in particular, the proposal that the currently operating 3 turbines are augmented withan additional 2 turbines, and the impact this is likely to have on the Gorge ecosystem. It shouldspecify the likely impacts of these changes on the water flow, and the mitigating measures whichwould have to be taken to ensure that the Gorge ecosystem is conserved.6

55. The updated EMN should consider, in the first instance, only those factors whichinfluence the conservation of the Gorge ecosystem and catchment, and the threatened speciesfound there, rather than the broader set of conditions and operating criteria addressed duringimplementation of Power VI (in particular the public health aspects of the project, which, ofcourse, remain unaffected by the discovery of new species in the Gorge). Particular issues suchas fire management should be addressed in the EMP. The updated EMP should be completedwithin the first two years after the project becomes effective.

6 The question is probably of lower priority. The recently completed Power Sector Master Plan (Acres Intemational,November 2000) concluded that 'investments in additional units (at Kihansi are) ... unlikely to be cost-effective.'


56. Implementing the Updated EMP. Implementation of the updated EMP will be carriedout in conjunction with the ecosystem monitoring and conservation program. Because of theuncertainties surrounding the mitigation steps which will be identified and developed in theEMP, the planning of the likely investments which will be needed is constrained. Funding forpossible mitigation measures is included in the proposed project budget in the project's fourthand fifth years, and will be reallocated if needed.

57. A central feature of the implementation period, however, will be the development of asystem for monitoring water flows through the Gorge. During preparation of the EMP, the scopefor tapping into the existing Tanesco monitoring system will be explored, with a view todeveloping 'live' reporting of bypass and spill flows, and power station offlake. The institutionalresponsibility for monitoring bypass flows will be identified during preparation of the EMP.

58. The Multisectoral Technical Advisory Committee and the project Steering Committeewill be responsible for directing the implementation of the Environmental Management Plan.Support shall be provided for training of the supervisory and field staff responsible forimplementing EMP.

Component 4: Institutional Strengthening.

59. The national system for environmental and water resources management needs to berationalized. Consistent with the recommendations of the Environmental Review, the project willfinance preparation and implementation of a program of institutional capacity building whichresults in a coordinated system, at the national level, of environmental and water resourcesmanagement. The program will take into account and will adopt and support the implementationof the recommendations and findings of the recently completed review carried out by theInstitutional and Legal Framework for Environmental Management Project (ILFEMP) as well asrecommendations related to the establishment of a new national water policy.7 The strategy willinclude several linked elements: institute legal mandates for environmental management,establish the capacity for regulation and enforcement, provide training and fund an awarenessbuilding program.

60. Regulatory Framework for Environmental Management The project will financesupport for finalization and dissemination of proposed national environmental impact assessmentguidelines, as recommended in the Environmental Review and in the ILFEMP study, and willfinance a series of public consultations to capture stakeholder concerns and perspectives on howthese guidelines should be promulgated. Once a consensus has been reached about proposedguidelines, which is consistent with the national policy framework, the project will also financedissemination.

61. Awareness raising. An awareness raising program about the importance ofenvironmentally sustainable water resources management will be developed and implemented byNEMC in conjunction with the Ministry of Water and Livestock Development to support the

7 This should complement the work that IUCN is initiating in the Rufiji Basin and proposing to support in the Pangani andRuvuma Basins.


implementation of the environmental management aspects of the new water policy. The overallobjective will be to support the implementation of the key environmental management provisionsrelated to the sustainable management of water resources, including its quantity, quality, aquaticecosystems, protection of important watersheds and groundwater recharge areas, control ofinvasive species (such as water hyacinth) and protection of biodiversity. The program willdevelop specific messages for targeting for particular groups (including cabinet ministers,Permanent Secretaries and Directors, multi-sectoral water user groups, and the public) and to becommunicated through various media (newsletters and newspaper, workshop, radio, TV, etc.).The awareness program will have components at the national, sector and area specific levels. Itwill be developed by a Local Media Consulting Company, in consultations with NEMC and theMOWL over a period of 3 months and im;plemented jointly by NEMC and MOWL.

62. Capacity Building and Training. The IREMS project is undertaking an institutionalcapacity needs assessment to identify gaps, weaknesses and strengths in capacities forenvironmental decision making, specific to the question of water resources and the environment.Much of this work must be put into the wider context posed by ILFEMP, which proposedvarious strategies and institutional mechanisms for addressing questions of environmentalmanagement and regulation, especially in the context of decentralization.

63. Based on the results of the capacity needs assessment, a program for strengthening thelocal capacity for implementing ETA legislation and for monitoring, regulating and enforcing thelegal provisions related to environmental quality objectives in the water policy in water sectorprojects (for example, for hydropower generation, irrigation development, domestic, industrialand mining water supply, etc.) will be implemented. This will follow the recommendations of theILFEMP study and complement the capacity building recommendations under the River BasinManagement and Smallholder Irrigation Improvement Project which will calls for theestablishment of environmental units in the MOWL and RBWOs (in the Pangani and RufijiBasins). The capacity building program will be finalized on the basis of the findings of thecapacity needs assessment, and may include:

* Support for developing a program in environmental management/sciences at the Universityof Dar es Salaam for training undergraduate and post-graduate students in areas ofenvironmental management, planning, freshwater ecology, environmental engineering;

* Strengthening the monitoring and assessment and EIA Departments/units within NEMC andDOE;

* Supporting the establishment of environmental units within the Ministry of Energy andMinerals, including support for incorporating environmental concerns into hydropowerplanning;

* Short courses (2-4 week) in Environmental Compliance;* Strengthening the water monitoring and enforcement capacity of the RBWO, with a specific

emphasis on hydrology;* Participation of a range of stakehclders in targeted workshop/training/conferences (e.g.,

Environmental Flow Assessment for Rivers: An international working conference onmethods and case histories on March 3-8, 2002 in Cape Town).


SECTION B: PROJECTA DMINISTRATION AND IMPLEMENTATION

Institutional Arrangements

64. Policy guidance and overall project oversfte and supervision is to be provided by a high-level Steering Committee which has been constituted specifically to deal with matters related tothe Lower Kihansi Gorge. The Steering Committee is comprised of the Permanent Secretariesfrom the Vice President's Office (Chairman), the Ministry of Natural Resources and Tourism, theMinistry of Energy and Minerals, the Ministry of Water and Livestock Development, and theMinistry of Finance.

65. The Multisectoral Technical Advisory Committee (MTAC) has been constituted toprovide advice to the Steering Committee on matters related to Kihansi. It is comprised largelyof representatives of key stakeholders, including the Division of Environment (Vice President'sOffice), National Environment Management Council, Tanesco, the Ministry of Water andLivestock Development, the Ministry of Energy and Minerals, the Division of Wildlife (MN1RT),and the Forestry and Beekeeping Division (MNRT). Members of the MTAC will also have keyproject implementation responsibilities, and the project will provide support for efficientcommunication.

66 The National Environment Management Council will be the lead coordinating institutionfor project implementation. A Project Coordinator will be employed by the project, and housedby NEMC, within 3 months of the date of effectiveness of the project.

67. Under the coordinating mechanism to be established by NEMC, there will be multipleimplementing institutions. Implementation responsibilities for these institutions and the flow ofcommunication in the coordinating rnechanism are indicated in Table 7 and in Figure Irespectively.

Table 7: Tanzania Lower Kihansi Environmental Management ProjectImplementation and Oversite Res ponsibilities for Ke Miti ation Measures

1. Habitat and species conservation andlmanagementI2.Establishment of final waterneht

3. Preparing and Implementing an Upae Environmental Management Pla

4. Institution building__

Tanzania, Lower Kihansi Environmentail Management Project 17Technical Annex

FIGURE 1INSliTUllONAL ARRANGENENT FOR THE IMPLEMNENTATION OF LOVYER KIHANSI ENVIRONMENTAL

NANAGEET PROJECT

Diret commurmcation

LiaisoivCoordinatlon

Financial- - FacNitation

68. The Project Coordinator will be assisted by a consultant to provide guidance specificallywith respect to conservation biology. The consultant should hold a Masters or Ph.D. in ecologywith a minimum of 10 years of experience with expertise in population and conservationbiology. This individual will also be responsible for providing assistance in updating andimplementing the Environmental Management Plan and will be recruited in consultation with theMTAC,

Procurement, Disbursement, and Financial Management

69. In order to facilitate project start-up, existing financial management and procurementcapacity in the Ministry of Natural Resources and Tourism is to be mobilized to provide thissupport as an interim measure. The finarncial management and procurement capacity of existingconsultant staff within MNRT was assessed during preparation to determine strengths andweaknesses, and to establish if this exis,ting capacity would be adequate in the short term forassisting in project implementation. This assessment concluded that existing capacity is adequatefor meeting the procurement and financial management demands of the project, though there isscope for strengthening.

Procurement Arrangements

70 Procurement financed under the project will be limited to recruitment of consultantsservices, office equipment, a limited number of vehicles, some civil works, and incrementaloperating costs. An experienced Procurement Specialist (already in place) will have


responsibility for ensuring that procurement for works and goods is carried out in accordancewith the Bank's Guidelines for Procurement under IBRD Loans and IDA Credits (dated January1995 and revised in January and August 1996, in September 1997, and January 1999).Consultancy services financed by IDA will be procured in accordance with the Bank Guidelinesfor the Selection and Employment of Conisultants by World Bank Borrowers (dated January 1997,and revised September 1997 and January 1999).

71. A General Procurement Notice will be published in United Nations DevelopmentBusiness (UNDB) and will include a description of required services or goods, the client agency,and the budgeted cost. This notice will be updated every year during the execution of the projectsuntil all contracts and assignments have been procured. In the case of contracts which areexpected to cost more than $200,000 equivalent, Specific Procurement Notices will be issuedthrough the national press or other means.

72. To the extent possible, procurement arrangements have been designed to respond to theneed for flexible use of procurement methods, given the institutional capacity of theimplementing agencies and the need for urgent action. A detailed Procurement Plan describingprocurement requirements for the project's first year is in preparation, and will be completedbefore effectiveness. This will be revised annually during preparation of the Annual WorkProgram and Budget. Whenever possible, procurement items will be consoiidated intoappropriately-scaled contracting packages.

73. Procurement of goods, works, and services will be carried out by the NationalEnvironment Management Council working in the first instance with MNRT.

74. A Procurement Evaluation Committee (PEC) will be constituted by the MultisectoralTechnical Advisory Committee to support the implementation of the Lower KihansiEnvironmental Management Project. Its primary function will be to evaluate tender documents

Table 8: Type of Procurement, by Procurement Method

A.= Cii Works 27 l _- x

l I ~~~~~~~~~~(246) l(246)B. Goods and Equipment /a l 216 323 539

(205) (307) (512)C. Consultants' Services and Training /b - - 5,126 5,126

(5,126) (5,126)D. Incremental Operating Costs I - 429 - 429

(386) (386)Total Project Costs, by method of 216 753 5,126 6,368Procurementl amounts financed by IDA I (246) 1 (205) (694) (5,126) (6,271)Note: Figures in parenthesis are the respective amounts financed by IDA.\a Estimates for international shopping include procurement from IAPSO\b Includes workshops, training, and study tours.


for all goods, works, and services to be financed by the Project, and on the basis of theseevaluations, provide recommendations for contract awards. The Committee will consist of:

Project Coordinator. Accountant* Procurement Specialist* (other members to be determined on an ad hoc basis)

75. The presence of a quorum of PEC members will be required for all bid evaluations.Contracts for the procurement of goods (e g. vehicles, computers and other office equipment notavailable locally) would be packaged into larger contracts wherever possible.

Civil works

76. Civil works to be carried out under this project are expected to consist of small contractsmostly under US$ 100,000 and therefore no procurement under International CompetitiveBidding procedures is envisaged. Individual contracts for civil works under US$ 50,000, up to anaggregate amount of US$ 200,000 will be procured on the basis of three quotations fromqualified contractors. The first three of these contracts will be subject to prior review. Contractsestimated to cost $50,000 (in aggregate not to exceed $250,000) and above will be procured onthe basis of National Competitive Bidding, all of which will be subject to prior review.

Goods and Equipment

77. Individual contracts for goods and equipment with an estimated value of less than$30,000 will be procured using local or international shopping, for an aggregate not to exceed$400,000, based on comparing price quotations from at least three suppliers in response towritten invitation. Individual contracts for goods and equipment more than US$ 30,000 percontract and less than $150,000 per contract will be procured through National CompetitiveBidding procedures for an aggregate not to exceed $200,000. The first three of these contractswill be subject to prior review. For contracts estimated to cost $150,000 and above, InternationalCompetitive Bidding will be used.

78. Individual units of office equiprment (individual fax machines, printers, and laptopcomputers) may be purchased through the Inter-Agency Procurement Services Office (IAPSO)of the United Nations with an aggregate value not to exceed $200,000.

Consultants' Services and Training

79. Consultancy services for all conmponents of the project, including studies, technicalassistance, supervision of works, requiring the recruitment of consulting firms or individualconsultants will be procured in accordance with the Bank's Guidelines for the Selection andEmployment of Consultants by World Bank Borrowers.

80. Individual consultants contracts and consulting firms contracts below the threshold ofUS$50,000 and US$ 100,000 respectively may be awarded on the basis of qualifications andexperience in accordance with Bank guidelines. For these contracts, prior review will be required


of all TORs, proposed budgets, contracts, and consultant qualifications. Sole sourcing may beallowed on an exceptional basis and prior agreement with IDA, subject to the conditions outlinedin the Guidelines. Prior review will also be required of all single-source consultancies, regardlessof their value. Contracts for. individual consultants below US$ 50,000, and for consulting firmsbelow US $100,000, will be subject to post-review. Prior review will be required for individualcontracts above US$50,000 and above US$100,000 for firms.

81. With regard to workshops, training, study tours and field expenses, prior review of allactivities will be required, including proposed budget, agenda, participants, location of training,and other relevant details.

Incremental operating costs

82. Incremental operating costs are defined to mean building, equipment, and vehiclemaintenance costs, fuel, office supplies, building rental charges, utilities, andtelecommunications costs, and the costs of Project support staff, but excluding salaries ofofficials of the civil service.

83. For most activities, however, prior review will be limited to contracts above thethresholds stated above. IDA may request prior review of bid documents, evaluation methodsand contracts for which they require more detailed information. Similarly, any request for noobjection from Secretariat will be formally replied by IDA.

Post review

84. Under the project, the procurement actions not subject to prior review as described abovewill be subject to post-review. This is to allow for fast disbursement of funds while assuringtransparency and consistency with these procedures. All documentation used for the proceduresof contracting , recruitment of consulting services, evaluation and award shall be retained forsubsequent examination by independent auditors and IDA supervision missions. The number,timing and pattern of supervision missions will be determined at the start of the implementationprogram.

Disbursement Arrangements

85. All disbursements will be handled in a manner which is consistent with the World Bank'sDisbursement Handbook, and as described in the Development Credit Agreement. Funds will bedisbursed over 5 year period, planned to begin in July 2001. The Completion Date will be June30, 2006 and the Closing Date will be December 31, 2006. All applications to withdraw proceedsfrom the Credit will be fully documented, except for expenditures for incremental operatingcosts, training costs, and contracts with a value of $150,000 or less for goods and equipment,$50,000 or less for civil works, $100,000 or less for consultants services (firms), $50,000 or lessfor consultants services (individuals), for which reimbursements or replenishments to the SpecialAccount may be made against Statements of Expenditure (SOEs). Supporting documentationwill be retained by the Government and will be available for inspection and review as requestedby IDA Supervision Missions and by project auditors.


86. It is envisaged that a Special Account, acceptable to IDA, will be established. Theauthorized allocation of this accounts will be US$250,000. Requests for replenishment of theSpecial Account should be submitted to IDA every month under normal circumstances, but inany event, not less frequently than once every three months. Each replenishment request willaccompanied by an up-to-date bank statement and a reconciliation statement

87. Consistent with the framework for streamlined implementation, four disbursementcategories are envisaged: civil works, goods and equipment, consulting services and training, andincremental operating costs.

Financial Management

88. In order to facilitate project start-up, existing financial management capacity in theMinistry of Natural Resources and Tourism is to be mobilized to provide this support as aninterim measure. An assessment of the financial management capacity in place in MNRTindicated that it would be adequate to support implementation of LKEMP as an interim measureuntil permanent implementation capacity is established. MNRT staff are qualified and have longexperience in implementing IDA projects. In the medium-term, additional capacity will be

Table 9: Thresholds for Procurement Methods and Prior Review

basis of quotationsobtained from threequalified national

$50,00 bu <$15,000 contractors __ ______

> $5,00 bu < 150000 NCB for an aggregate not ~All____ ____ ___ ____ ___ _ __ ___ ____ ___ ____ ___ to exceed $250,000

B. Goods and Equipment < $30,000 Local or Inteuational itnotheecShopping, for an aggregatenot to exceed $400,000

> $30,000 but < $150,000 NCB, for an aggregate not first three contracts_____________________to exceed $200,000 subject to prior review

> $150,000 ICB -- All __

Individual units of office IAPSO. Individual noneequipment furiture, contracts not to exceedvehicles $30,000 for an aggregate

not to exceed $200,000. 'lC. Consultants' Services > $50,000 for individuals Individual Qualifications iAll noneand Training > $ 100.000 for firs QCBS [All

<$50,000 for individuals Qualificadons. Sole TORs_ budget,or < $100,000 for firmsa sourcing may be allowed. qualifications, contract

subject to clauses 3.8 -| _______$150,000 _______ 3.11 of Guidelines. ______Workshops, training, study Acceptable nadional All

| tours practice no to exceed lD. Incremental operating All operating costs and Acceptable naftional Nonecosts _____________ field expenses commercial practice


needed in terms of

(i) a qualified accountant who should be recruited to assist existing staff,

(ii) the development of a sound financial management system, including preparation of afinancial accounting manual,

(iii) computerization of project accounts.

(iv) establishment of Financial Management Sub-Committee within the MTAC responsiblefor reviewing project financial reports. This Sub-Committee will report to the MTAC ona quarterly basis. The TORs for this committee will be agreed upon with IDA.

89. This additional capacity will ensure that the project has in place an adequate financialmanagement system which can provide, with reasonable assurance, accurate and timelyinformation on the status of the project as required by the Borrower and IDA. It was agreed thata qualified accountant would be recruited within 3 months of the date of Credit effectiveness

90. It was also agreed that a financial management consultant should be recruited to assist theproject to develop, improve, and implement a satisfactory financial management system whichwould enable measurement and timely reporting of the project's financial performance,efficiency and effectiveness. The consultant would assist the lead implementing institution inensuring that it,

(i) maintains books of accounts in accordance with acceptable international accountingpractices using modern technology,

(ii) prepares financial statement in accordance with Generally Acceptable AccountingPrinciples (GAAP)-lnternational Accounting Standards (1AS),

(iii) has adequate systems in place to measure and monitor its performance on variousTable 10: Allocation of Credit Proceeds

1. Civil Works 224 90 % 2. Goods and Equipment 466 It( 00 % of foreign costs

9() ° of local costs3 Consulting Services and Training 4.660 100 |

1 4. Incremental Operating Costs ,; 1 9( %Unallocated _ ___7_0_______ 5 _

Total Credit Amount 6.271

Note Incremental operating costs are defined to include building. equipmenL andvehicle maintenance costs: fuel, small purchases of office supplies. building rentalcharges. utilities. internet access, telephone charges. and staff travel and subsistenceCexpenses not elsewhere provided.

Tanzania, Lower Kihansi Environmental MVIanagement Project 23Technical Annex

activities;

(iv) has systems to properly plan and budget its various activities and to make satisfactoryfinancial projections; and that it

(v) develops and operates a set of financial policies to enable it to function effectively andefficiently

91. Accounting and audits will be conducted in accordance with sound and internationallyrecognized accounting and auditing principles and practices satisfactory to IDA. The auditreports and related project accounts will be submitted to IDA within six (6) months after the endof the fiscal year. In addition to their standard short form report with the opinion, the auditorswill be required: (i) to review all SOEs, as well as internal control procedures governing theirpreparation for the period under audit, and express a separate opinion thereon; and (ii) to reviewthe management and use of the Special account, and express a separate opinion thereon. Finally,the auditors will complete an in-depth review internal control systems to identify the weaknessesand shortcomings, and to propose recommendations for improvement. The results of this reviewwill be documented in a Management Letter to be submitted with the audit reports.

Monitoring and Evaluation

92. Monitoring and evaluation will be the responsibility of the Project Coordinator who willreport to the Steering Committee throulgh the Director General and MTAC on projectperformance.

93. Key indicators of project performance were agreed during Appraisal, and are summarizedin Table 10. Schedule A summarizes K(ey Project Activities, Outputs, and ImplementingInstitutions in greater detail.

Main Credit Conditions

94. Conditions of effectiveness. Government should ensure that a Project ImplementationManual and a project accounting system acceptable to the Bank is in place.

95. Legal coveniants. An Updated Environmental Management Plan will be prepared forreview by the Bank by June 30, 2003 The final water right to operate the Kihansi hydroelectricpower facility will be established within tlhe prevailing regulatory framework, and Tanesco willbe formally notified by December 31, 2003. The water right will include conditions of operationwith respect to the environment.


Table 10: Lower Kihansi Environmental Management ProjectKey Performance Indicators

The Lower Kihansi Environmental Management Project is expected to result in the:

1. Development and implementation of a Kihansi Gorge ecosystem monitoring program which, amongother things, develops technical standards for monitoring flora and fauna populations in the Gorge,evaluates the effectiveness of various mitigation measures already under implementation, and whichrecommends new mifigation measures as needed.

2. Development and implementation of measures to improve the conservation status of the KihansiGorge ecosy stem. and to restore critical habitats where this is possible and cost-effective.

3. Establishment of the criteria and the mechanisms for reintroducing threatened endemic species to theKihansi Gorge (such as the Kihansi Spray Toad). or to other appropriate habitats.

4 Preparation of a landscape-wide conservation and catchment area management plan which considersupstream catchment protection and its impact on the Kihansi Gorge.

5. Strengthening of the capacitv and the institutional basis for conserving threatened habitats and speciesin Tanzania. and for training future researchers, natural resource managers. and decision makers inconservation biology;

6. Determination of Tanesco's final right to use water from the Kihansi river, through a transparentprocess on the basis of scientific inputs and representations from various stakeholders;

7 Establislunent and implementation of a framework for monitoring and enforcing compliance with thefinal wxater right

8. Preparation of an updated Environmental Management Plan, to be implemented as a condition of thefinal water right. and which accounts for threatened endemic species in the Kihansi Gorge ecosystem.

9. Finali/ation and dissemination of proposed national environmental impact assessment guidelines;

10 Prioritizing and addressing capacity-building needs which are identified as a result of a capacity needsassessment with respect to environmental decision making specific to the question of water resourcesand the environment;

IL Strengthening of the institutional and regulatorv framework for environmental management, inparticular. by improving the capacity for implementing EIA regulations, and for monitoring.regulating. and enforcing legal provisions related to environmental quality objectives


SCHEDULES

Schedule A: Key Project Activities

1. Habitat and To put in place A. Ecosystem i Consultations to Begin in first tJDSM,Species mechanisrns for Monitoring and reach agreement project year, Have MNRT,Conservation developing Conservation on research and field station in TAFORI,and future actions on monitoring place bv the third MTAC,Management for conserving protocols project year. 'IAWIRI

and managing ii. Monitoringthe Kihansi studies Monitoring studiesGorge eco- iii. Permanent Field on-going.system in Monitoring andconjunction with Research Station _____

efforts to build B. Species i. Monitoring of Monitoring studies JlDSM,the capacity for conservation captive bred on-going. MNRT,conservation and captive populations NEMC,science in breeding ii. Feasibility Feasibilitx work MTACTanzania. assessment for ex- carried out in third

situ conservation project year.iii Translocation

studies and Translocationpreparation of studies carried outstrategy for in second and thirdreintroducing project years.Kihansi Spraytoad

C. Landscape- i. Field Program Begin preparation MNRT,wide Coordination in second project TAFORI,Conservation ii. Preparation of year. TANFSCO,Plan Consolidated MTAC, Local

Conservation Plan Government

D. Capacity i. Improved IJDSM On-going through tJDSM,Building capacity in the hfe of the TAFORI.

Conservation project. MNRT,Biology TAWIRJ

ii Post-graduate-level training

iii. Graduate fieldResearchprogramssupported


2. Establishment To establish a A. Inteiim Bypass i hInformation about Prior to the RBWO,of the Final transparent Flow compliance with establishment of NF-MC,Water Right process to Monitoring agreed bypass the final water TANESCO,

determine flows right MF,MTanesco's final ii. Plant operationwater right to informationoperate the B. Flow i. Flow Carried out during RBWO,Kihansi facility Manipulation manipulation the first 18 months NEMC,on the basis of and Ecological studies of the project. TANESCO,scientific inputs Studies ii. Ecological MEMand Studiesrepresentations iii. Longer term flowfrom key manipulation andstakeholders ecological studies

C. Financial and i. Financial and Carried out after NEMC,Economic economic flow manipulation TANESCO,Evaluation indicators studies are MEM, MNRT

prepared completedii. Power Sector

Master PlanUpdated ._ _ _

D. Recommen- i. Technical reviews Water right NFMC,dations on of proposals assigned no later MTAC,Environmental ii. Stakeholder than 2 years after RWBO, MFM,Flovws meetings on project launch VPO

recommendationsiii. Establishment of

final water right _ .E. Monitoring/ i. Mechanism for After final water RBWO,

Enforcement of enforcement right is assigned MWLD,Final Water developed Tanesco,Right ii Monitoring of NEMC

complianceF. Support for i. Data collected to On-going Tanesco,

Hydrological update RBWO,modeling hydrological MWLD

model and riverbasin data base l

3. Implementing To prepare and A. Preparation of i. Overall Project Project NEMC,an Updated begin imple- Updated management and management to RBWO,Environmental mentation of an Environmental Coordination carry on through MTACManagement Updated Management ii. Preparation of the life of project.Plan Environmental Plan. Environmental

Management Impact To be carried outPlan, as a Assessment during the first 3 1condition of the iii. Preparation of years of thefinal water right, Environmental project.which accounts Management Planfor the discovery which identifiesof threatened mitigation options | _ .endemic species B. Implementing i. Mitigation steps To be carried out 'Tanesco,

the Updated taken after assignment of NEMC, OtherEnvironmental ii Mitigation steps final water right. stakeholdersManagement monitored

l _ _ _ _ _ _ _ _ _ _ _ _ _ _ l _ _ _ _ _ _ _ _ _ _ _ _ _ P lan. l _I__ _


.Institutional |To implement a A. Regulatory i. Public For the first3 3 NEMC,Strengthening i program of Framework for consultations years of the project MOWLD

institutional Enviromunental lii. Publication/|capacity | Manageinent dissemination ofIbuilding which IEIA E regulations IIIresults in a B. Awareness i. Informnation Through the life of NEMC,coordinated Raising dissemination the project MOWLDsystem at the about waternational level of policyenvironmental ii. Publicand water consultationsresources C. Capacity i. Introduced Through the life of UDSM,management Building and program in the project. Tanesco,

Training Conservation MEM, VPOBiology,University of Dares Salaam

ii. OverseasPostgraduatetraining,Environmentalmanagement

iii. Provide supportfor theestablishment ofenvironmentalunits in Ministryof Energy and|Minerals andTanesco throughskillsdevelopment

iv. Short courses,EnvironmentalCompliance/Habitatmanagement

v. Targetedworkshops/conferences

MAP SECTION

IBRD 31 306

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World Bank Documentdocuments.worldbank.org/curated/en/... · series of waterfalls and rapids. The...

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Transcript of World Bank Documentdocuments.worldbank.org/curated/en/... · series of waterfalls and rapids. The...