Revised Attachment J.1 - Statement of Objectives_Amendment 0002.pdf

Revised on 10/29/2021

Attachment J.1: STATEMENT OF OBJECTIVES

1 TITLE OF ACTIVITY

The title of this USAID/Nepal’s Natural Resource Management activity is Freshwater and Forests (Jal Jangal).

2 PURPOSE

The purpose of the Activity is to reduce threats to ecosystems and species in order to conserve nature, enhance human well-being, and safeguard natural resources for future generations’ use.

3 BACKGROUND

3.1 General Background Information and Country Context

Nepal’s natural resources, especially its freshwater and forests, form the bedrock of its economy.

They provide ecosystem services that support the economy and livelihoods of the majority of its population. Its geographical, climatic and ecological diversity is remarkable considering its relatively small area of 147,181 km2, with a forest cover of 40%, the second-highest percentage of forest cover in the South Asia region after Bhutan. Himalayan water resources are regionally important, providing freshwater to over a billion people on the sub-continent.

The Government of Nepal (GON) has demonstrated a strong commitment to environmental management, biodiversity conservation and climate change adaptation by being a signatory to international accords, implementing national policies, and enabling decentralized natural resources governance through Community Forest User Groups (CFUG), with 40% of the population as members. It has achieved success in protecting endangered species, such as the Bengal tiger and Greater One-horned rhinoceros and has demonstrated leadership on countering wildlife trafficking (CWT) in the region.

3.2 The Development Challenge and Opportunity

Despite these successes, Nepal’s aquatic and terrestrial biodiversity are threatened by climate change and the pressures exerted by an increasing human population, including infrastructure development, pollution, deforestation, unsustainable resource extraction and wildlife trafficking among others. According to global vulnerability analysis, Nepal is one of the most vulnerable countries in the world to the impacts of climate change. The threats are exacerbated by high levels of poverty, social exclusion, and political instability. Nepal’s largely rural population, and its high reliance on agriculture, makes it especially susceptible to the impacts of natural resource degradation and climate change. The ongoing global COVID-19 pandemic has affected the economy of Nepal, including its key tourism sector (USD 2.1 billion revenue, employing 1 million persons in 2019). Economic growth fell to 0.2 percent in 2020, from an average of 7.3% in the previous three years; and projected growth of the economy in 2021 is well below average according to the most recent World Bank estimates. Second-order impacts of the pandemic include escalated resource extraction, poorly enforced safeguards, lost livelihoods, especially in the tourism industry, and increased inequity.

Managing Nepal’s natural resources strategically, sustainably and equitably, can support inclusive long-term economic growth and the livelihoods of vulnerable communities; and it can mitigate the economic and environmental setbacks caused by recurring natural and man-made disasters. Strategic management of natural resources and improved capacity to adapt to climate change are essential to build the resilience of both ecological and human communities, and for advancing the Government of Nepal and USAID/Nepal’s shared development objectives.

3.3 Relation to USAID Strategies and Initiatives

Through this activity, USAID will continue its partnership with Nepal to support improved natural resource management, contributing to USAID Nepal’s Country Development Cooperation Strategy (CDCS) goal of “A more self-reliant, prosperous and inclusive Nepal that delivers improved democratic governance, and health and education outcomes.”

The Contractor must align its plans and activities to USAID/Nepal’s five-year Country Development Cooperation Strategy (CDCS) for the 2021-2025 period. Under this CDCS, USAID/Nepal strives to address the underlying development challenges of advancing federalism, inclusion and resilience. The Contractor must also align its activities with USAID’s Environmental and Natural Resources Management (ENRM) Framework, which provides1 direction, priorities and a vision of how to address the most critical threats to the environment and development. The Contractor may also refer to the ENRM for guidance on cross-sectoral investments in environment, climate change adaptation and mitigation, and natural resource management. USAID’s Private Sector Engagement Policy should be used as a guide for building

1 Environmental and Natural Resource Management Framework | U.S. Agency for International Development (usaid.gov) or https://www.usaid.gov/documents/1865/environmental-and-natural-resource-management-frame work-pdf https://www.usaid.gov/documents/1865/environmental-and-natural-resource-management-framework-pdf https://www.usaid.gov/documents/1865/environmental-and-natural-resource-management-framework-pdf https://www.usaid.gov/documents/1865/environmental-and-natural-resource-management-framework-pdf https://www.usaid.gov/documents/1865/environmental-and-natural-resource-management-framework-pdf successful partnerships that include private investments that align with Jal Jangal objectives. All components of Jal Jangal funded with Congressionally directed Biodiversity resources must fully align with USAID’s Biodiversity Policy which provides a blueprint for conserving biodiversity2 for sustainable long-term development. Jal Jangal will also advance USAID’s Natural Resources Safeguards and Security (NRSS) Framework. As described in Section F 6.1.3, the NRSS has specific outcomes that the Contractor must support through the activity.

Figure 1: Natural Resources and Security (NRSS) Results Framework

3.4 Programmatic Linkages

2 USAID Biodiversity Policy - June 2015.pdf or https://www.usaid.gov/sites/default/files/documents/1865/USAID%20Biodiversity%20Policy%2 0-%20June%202015.pdf https://www.usaid.gov/sites/default/files/documents/1865/USAID%20Biodiversity%20Policy%20-%20June%202015.pdf https://www.usaid.gov/sites/default/files/documents/1865/USAID%20Biodiversity%20Policy%20-%20June%202015.pdf https://www.usaid.gov/sites/default/files/documents/1865/USAID%20Biodiversity%20Policy%20-%20June%202015.pdf

Achieving the objectives of Jal Jangal will require exceptionally strong coordination with the Government of Nepal as well as with relevant elements of the broader assistance portfolios of the U.S. Government and the international donor community. The Contractor must coordinate and collaborate with stakeholders as discussed below.

Relationship to Other U.S. Government Activities

The U.S. Embassy’s Regional Environment Office and USAID/Nepal’s Offices of Health and Disaster Risk Reduction, Reconstruction and Resilience have relevant ongoing investments and relationships related to protected area management, disaster risk management, climate change, air pollution and environmental safeguards. In close collaboration with the COR and CO, strong coordination and collaboration with these initiatives is required.

Relationship to the Government of Nepal Policy Priorities

The Contractor must consult, coordinate and cooperate with relevant Government of Nepal (GON) institutions throughout the implementation period to ensure that Jal Jangal meets the assistance priorities agreed upon by USAID and the GON as outlined in the USAID Nepal Country Development Cooperation Strategy (CDCS) . The Contractor must work most closely3 with the Ministry of Forests and Environment (MOFE), and the Water and Energy Commission Secretariat (WECS) within the Ministry of Energy, Water Resources and Irrigation (MoEWRI).

The Contractor must also engage with other GON entities including the Ministry of Physical Infrastructure and Transport (MOPIT), and the National Natural Resources and Fiscal Commission (NNRFC). To combat wildlife trafficking, the activity may provide training and capacity support to the judicial authorities and security forces of Nepal, including the Nepal Army, Armed Police Force and Nepal Police, through the Wildlife Crime Control Bureau. The4

Contractor must set up functioning coordination and communication mechanisms with these institutions at all stages from planning to implementation, and ensure appropriate uptake and ownership, so as to be effective in delivering the technical assistance proposed.

The Contractor must align its technical assistance activities with relevant GON policies and strategies, including, but not limited to, its National Biodiversity Strategy and Action Plan (2014-2020), the National Climate Change Policy (2019), the National Water Resources Policy

4 To the extent the Mission decides to provide assistance to law enforcement authorities, including but not necessarily limited to the Nepal Army, the Armed Police Force, and the Nepal Police, the Mission will rely on self-executing notwithstanding authorities including those authorities set forth in section 119(b) of the Foreign Assistance Act, as amended, and follow Agency policy.

3 https://www.usaid.gov/nepal/cdcs

(2020), Forestry Sector Strategy (2016-25), National Wetlands Policy 2018, National Forest Policy 2019, National Environmental Policy 2019, National Agroforestry Policy 2019, the National Water Resources Policy (2020), the Soil and Watershed Conservation Act (1982), the Forest Policy (2014), the Environmental Protection Act (1996), the Aquatic Animals Protection Act (1961), the National Parks and Wildlife Conservation Act (1973) and Buffer Zone Management Regulations (1996). These documents may be found here:

https://www.mofe.gov.np/downloadsdetail/8/2018/36366627/

Relationship to the Work of Development Partners

In close coordination with USAID, the Contractor must strive to ensure strong complementarity and synergy with other development partner funded assistance activities in the climate change and natural resources management sectors and avoid duplication of effort.

Jal Jangal is expected to make major contributions to an emerging multi-donor collaboration within Nepal that supports Nepal’s green, inclusive and resilient development (GRID). A GRID Action Plan is in the early stages of being developed by the GON, with targeted support from relevant development partners, including USAID. The Contractor for Jal Jangal will play a key role in supporting USAID’s overall engagement in the GRID process and must work closely with USAID and other development partners in that regard. The Contractor may be required to share its relevant work plans and other planning documents with relevant partners.

4 RESULTS

4.1 Goal

The overall goal of the Freshwater and Forests (Jal Jangal) Activity is to reduce multiple threats to ecosystems and wildlife species in order to conserve nature, enhance human well-being, and safeguard the future.

Jal Jangal will build on the achievements of USAID’s existing Hariyo Ban and Paani programs, both of which achieved notable milestones in conserving terrestrial and aquatic biodiversity in Nepal and are concluding in 2021. Further, to achieve the goal, the Contractor must build in the CDCS strategic approaches of supporting the transition to federalism, promoting inclusion and integrating resilience into outcomes.

4.2 Development Hypothesis

https://www.mofe.gov.np/downloadsdetail/8/2018/36366627/

If conservation of key habitats, ecosystems and biodiversity is improved;

And if capacity to develop and implement environmental safeguards and address environmental crimes is enhanced;

And if climate resilience of human and ecological communities is strengthened;

In a manner that improves gender equity and social inclusion; builds capacity of stakeholders for self-reliance; and improves policies, systems and standards at all levels.

Then Natural Resources (Freshwater and Forest) Safeguards and Security will be improved to develop Nepal as a stable, resilient, and reliable economic partner.

4.3 Performance Objectives

The performance objectives for Freshwater and Forests (Jal Jangal) are below, and are complementary to other USAID, USG, and other Development Partner activities in the energy and environment sector. The objectives are also interrelated, and interventions must take these connections into account. In addition, the activity must be implemented at the national, provincial and municipal levels in Nepal, depending on the nature of the interventions. For example, at the central government level the activity may support national policy development, while watershed activities will be implemented at the provincial and municipal levels.

Objective 1: Health of Ecosystems Improved in Targeted Landscapes

The Contractor must implement activities that, in combination, improve ecosystem health within the targeted landscape in measurable ways. The Contractor must support better protection,5 management, and judicious and sustainable use of natural resources within these landscapes, using an integrated watershed approach and through partnerships with local governments, local communities, civil society partners and the private sector. In so doing, the Contractor must strengthen the natural resource governance capacity of the local and provincial governments within the new federal structure to enhance or restore ecosystem services, measurably improve conservation outcomes, and reduce human-wildlife conflict.

5 See 5.2 Geographic Focus section below.

Objective 2: Environmental Crime Control and Natural Resource Safeguards Strengthened

Jal Jangal will support the GON’s efforts to address environmental crimes, including wildlife trafficking, pollution, and unregulated mining, by building the capacities of the GON, civil society and project proponents to improve and monitor compliance with the country’s environmental laws. This component will involve close engagement with national and sub-national governments and national agencies. There are also good opportunities for transboundary cooperation on combating transnational wildlife trafficking. The Contractor will engage with all three tiers of government to improve environmental and social safeguards during development planning and implementation (e.g., linear infrastructure), increase opportunities for individuals and companies to comply with environmental laws related to forests, freshwater and biodiversity including pollution, mining, habitat destruction, poaching and unsustainable harvesting, leverage technology, reduce illegal wildlife trafficking in and through Nepal, advance zoonotic disease monitoring, and mitigate activities destructive to natural resources such as deforestation, fragmentation, unsustainable extraction, habitat encroachment, and pollution.

Objective 3: Climate Resilience of Natural and Human Systems Enhanced

Climate change affects lives and livelihoods of people in Nepal through climate-induced disasters such as floods, droughts, fire, erosion and landslides; reduced crop and livestock productivity; increased incidence of certain pests and vector-borne diseases; and drying water sources in some regions, among other manifestations. It impacts natural ecosystems, habitats and hydrological cycles, forcing range extensions or alterations of some wildlife populations and vegetation and can accelerate the spread of invasive species. The negative impacts on agricultural output can lead to increased extraction of wild products, and connectivity gaps can restrict movement of species in response to changing climate.

Jal Jangal will support the Government of Nepal’s national climate change adaptation priorities as well as municipal and provincial-level adaptation planning and implementation efforts, taking into account both human and ecological sensitivity and exposure. The Contractor will propose novel, context-specific ideas for additional adaptive options that reduce risks, sustain natural systems and biodiversity, and support livelihoods, food security and incomes for particularly vulnerable groups.

Results and Indicators:

The Contractor must measure and track indicators for each objective. The table below lists the core indicators with the minimum expected results to be used as a basis for monitoring activity progress and measuring contractor performance . The Offeror may adjust upwards the below6 minimum results and propose additional standard and custom indicators and associated targets, as long as they are well-aligned with the contract objectives and expected results. Standard Indicators refer to those listed in Standardized Program Structure and Definitions used to categorize U.S. foreign assistance .7

Table: Minimum Results for the Jal Jangal Activity

Objectives Indicator / Results Min. Results

Objective 1:

Health of Ecosystems Improved

EG.10.2-1: Number of hectares of biologically significant areas showing improved biophysical conditions as a result of USG assistance

200,000

EG.10.2-2: Number of hectares of biologically significant areas under improved natural resource management, safeguards or sustainable practices as a result of USG assistance

1,500,000

EG.10.2-3: Number of people with improved economic benefits derived from sustainable natural resource management and/or biodiversity conservation as a result of USG assistance

500,000

Objective 2:

Environmental Crime Control and Natural Resource Safeguards Strengthened

EG.10.2-5: Number of laws, policies, or regulations that address biodiversity conservation and/or other environmental themes officially proposed, adopted, or implemented as a result of USG assistance

EG.10.2-6: Number of people that apply improved conservation law enforcement practices as a result of USG assistance

2,500

Number of people benefiting from adoption and implementation of measures to improve water resource management as a result of USG assistance.

500,000

7 See https://2009-2017.state.gov/f/c24132.htm

6 Baseline data to develop the minimum results were developed based upon previous activities results; see Annexes 1-6. Additional information on previous

USAID/Nepal activities can be accessed through the Development Experience Clearinghouse; specifically relevant are Paani and Hariyo Ban:

https://dec.usaid.gov/dec/search/FusionSearchResults.aspx?q=Hariyo%20Ban;

https://dec.usaid.gov/dec/search/FusionSearchResults.aspx?q=Paani https://2009-2017.state.gov/f/c24132.htm https://dec.usaid.gov/dec/search/FusionSearchResults.aspx?q=Hariyo%20Ban https://dec.usaid.gov/dec/search/FusionSearchResults.aspx?q=Paani

Objective 3:

Climate Resilience Enhanced

Amount of investment mobilized for climate change adaptation. USD 5 million

EG.10.2-4: Number of people trained in sustainable natural resources management and/or biodiversity conservation as a result of USG assistance.

250,000

Number of people using climate information or implementing risk-reducing actions to improve resilience to climate change as a result of USG assistance.

250,000

5 ACTIVITY PARAMETERS

5.1 Target Population

Nepal’s economic development is highly reliant on its natural resources - forests, water and biodiversity. Nature-based occupations - such as agriculture, forestry and fisheries (~25% of GDP) and tourism (~7.9% of GDP) - make up nearly 33% of the country’s economy, with 60% of the population depending primarily on agriculture for their livelihoods. This activity must reduce the threats to these natural resources through application of better science, policy and governance strategies so that the natural resource base can sustain the country’s economic growth in the long term.

The Contractor must achieve this by working with the local populations (with special attention to vulnerable or marginalized groups and their representative institutions), who directly rely on these natural resources for their livelihoods and well-being and are best placed to be the trustees of natural capital. Poverty, social exclusion and political instability deny these groups the custodianship of the resources they depend on, and expose them to disasters that threaten their lives, property and livelihoods. Gender inequality and social marginalization further exacerbate vulnerability to shocks and stressors, due to curtailed access to education, assets and social capital resulting in chronic poverty. USAID/Nepal’s focus is to increase the resilience, decision-making capacities and well-being of the poorest, most vulnerable and marginalized groups of Nepal, including its diverse indigenous communities, in order that they may be able to better manage, and thus benefit from, the country’s natural resources in the long term.

The Contractor must ensure strong alignment with USAID/Nepal’s objectives for inclusion and resilience for addressing persistent poverty and marginalization as elaborated in the USAID/Nepal CDCS.

5.2 Geographic Focus

Jal Jangal will primarily focus on biodiversity-rich ecosystems in and around the Gandaki and Karnali river basins and the habitat corridors within and between them. USAID’s current natural resources management activities Hariyo Ban II and Paani are being implemented in the Terai Arc and Chitwan Annapurna Landscapes (TAL & CHAL), and in the Karnali, Mahakali and Rapti river basins respectively. The total target area is estimated to be 87,963 square kilometers with a total estimated population of 8,254,752. Through Jal Jangal, USAID/Nepal will continue its geographic focus in and around these areas, which overlap with Government of Nepal conservation landscapes that are either already declared - Chitwan Annapurna Landscape (CHAL), Kailash Sacred Landscape (KSL), Terai Arc Landscape or proposed - Karnali Conservation Landscape (KCL).

Nepal is a pioneer in landscape-scale approaches to conservation and USAID will continue to support a landscape-scale approach, including supporting the detailed studies, development of strategies and implementation plans and declarations for the Conservation Landscapes as per GON priorities. As the target landscapes are large, however, the Contractor must work closely with USAID to define the balance of landscape and site-based activities, and to carefully target site-based activities within the targeted conservation landscapes.

The Contractor must address conservation challenges in the vulnerable northern high-altitude water towers and both terrestrial and riverine biodiversity corridors within and between these two landscapes. In addition, the Contractor’s scope of implementation must align with the Government of Nepal’s Integrated River Basin Management (IRBM) plans and focus on freshwater priorities in addition to terrestrial ecosystems.

5.3 Gender Equality and Social Inclusion (GESI)

Women and indigenous communities, who directly rely on these natural resources for their livelihoods and well-being, are more vulnerable to natural disasters and climate change impacts due to their historical marginalization, social exclusion, and continuing lack of social and economic resources. The Jal Jangal activity seeks to build on the advances made through previous efforts to engage women and marginalized communities beyond participation and elevate their roles in leadership and decision-making. The Contractor must find innovative approaches to remove barriers and identify effective practices towards advancing GESI leadership to enable more equitable decision-making and livelihood opportunities are incorporated throughout the design and implementation of Jal Jangal.

6 CROSS-CUTTING REQUIREMENTS

6.1 Local Capacity Development/New Partnership Initiative (NPI)

Local institutional capacity and human capital are key to sustained development impact. The Contractor must engage local institutions and provide entry points for organizations to contribute to USAID’s Jal Jangal Activity goals at different stages of implementation. The Contractor must build technical and management capacity within targeted institutions and communities, working with or through host country systems when appropriate, to ensure capacity for uptake of its technical products, and transfer managerial and activity implementation responsibility to local institutions, including community groups with the necessary structures in place. The contractor must ensure that new partners are sufficiently trained and equipped to sustain the work in Jal Jangal beyond the life of the project.

6.2 Private Sector Engagement (PSE)

Strategic private sector engagement as related to natural resources may be an opportunity to achieve the objectives of Jal Jangal. Innovative, inclusive, and sustainable strategies for PSE at relevant scales and appropriate value chains may be included in annual work plans and integrated into the Contractor’s overall implementation approach and must be based on a sound analysis of market demand. The Contractor must ensure appropriate linkages with USAID’s overall goals for private sector engagement, as articulated within the CDCS for 2020-2025, GON priorities, private sector interests and Jal Jangal’s conservation priorities. The Contractor must engage the private sector with the goal of building up profitable, competitive business models that use natural capital sustainably; create jobs and increase incomes; and actively engage poor, vulnerable and disadvantaged groups to support Nepal’s journey to self-reliance, reduce aid dependency and increase equitable sharing of the profit from natural resources.

6.3 USAID’s Involvement in Decision-Making

The Contractor must work in close consultation with the USAID COR. This includes developing each annual work plan, with built-in reviews for any necessary course corrections. The Contractor will be accountable for achieving the annual work plan and the contract objectives.

6.4 Collaborating, Learning and Adapting

The Contractor must use flexible and adaptable systems and work plans to accommodate unanticipated changes and as means to take up new priorities that may arise during contract implementation.

6.5 Grants Under Contracts

A Grants Under Contract (GUC) component must contribute to innovative ideas that promote biodiversity conservation, conservation-linked private sector engagement and livelihood options, effective climate change adaptation actions and gender equality and social inclusion. It may support local technical and institutional capacity enhancement through training or higher education, especially in support of the Environmental Crime Control and Natural Resources Safeguards Strengthening objectives; as a means of advancing strategic private sector engagement; and as a means of increasing gender equality and social inclusion throughout the implementation of the activity. GUCs must enable partnerships with Nepali and/or international private sector entities, including for conservation enterprises; and provide organizational capacity building for the local entities to deliver the intended goals under USAID funded awards, and continue to achieve conservation objectives into the future. Cost share must be considered.

[Note: While there is no minimum threshold to a proposed GUC component, it must not exceed USD$ 5 million]

6.6 Co-Creation Approach

The Activity must adopt a co-creation approach during implementation, the Contractor must engage closely with USAID to explore and identify innovative and effective approaches and interventions that catalyze new partnerships and unlock new investment and trade opportunities in the targeted sectors. The co-creation approach must be initiated from the work plan development phase, soliciting valuable inputs and feedback from partners or stakeholders, ensuring their continued ownership and buy-in of the activity. The Contractor must also continue engaging key stakeholders throughout implementation as this is critical to the success of the activity.

[End of SOO]

Annexes:

1. SOO Annex 1 - Paani eBook - Final Summary Report

2. SOO Annex 2 - Paani Program - Final Report Aug 2021

3. SOO Annex 3 - PANI Rapid Political Economy Analysis (2016). Link:

https://pdf.usaid.gov/pdf_docs/PA00TKHW.pdf

4. SOO Annex 4 - PANI PEA (2020)

5. SOO Annex 5 - Hariyo Ban II Annual Performance Report

6. SOO Annex 6 – Hariyo Ban Program - Chitwan-Annupurna Landscape https://pdf.usaid.gov/pdf_docs/PA00TKHW.pdf