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

PAANI PROGRAM | पानी प�रयोजना

FINAL PROJECT REPORT

(April 2016 - August 2021)

This publication was produced for review by the United States Agency for International Development. It was prepared by DAI Global LLC.

The authors’ views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government.

Cover photo: With USAID Paani’s support, this all-women Tharu fishing group in Middle Rapti Watershed took action to protect aquatic resources in partnership with Gadhawa Rural Municipality, which passed legislation that banned destructive fishing and empowered the group to monitor and manage a designated river stretch. Training on fruit and vegetable farming along the river also provided alternative livelihood options, leading to reduced strain on the river. Photo credit: Aura Creations for USAID.

PAANI PROGRAM | पानी प�रयोजना

FINAL PROJECT REPORT

(April 2016 - August 2021)

PROGRAM TITLE: USAID PAANI PROGRAM

DAI PROJECT NUMBER: 1002810

SPONSORING USAID OFFICE: USAID/NEPAL

IDIQ NUMBER: AID-OAA-I-14-00014

TASK ORDER NUMBER: AID-367-TO-16-00001

CONTRACTOR: DAI GLOBAL LLC

DATE OF PUBLICATION: AUGUST 2021

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CONTENTS

ABBREVIATIONS 7

EXECUTIVE SUMMARY 11

CHAPTER 1: APPROACH AND CUMULATIVE RESULTS ACHIEVED 16

1.1 PAANI CONTEXT AND DESIGN 16

1.2 APPROACH 17

1.3 IMPLEMENTATION PRINCIPLES 24

1.4 SUMMARY OF KEY INDICATORS AND RESULTS 28

CHAPTER 2: NOTABLE ACHIEVEMENTS 30

2.1 FOCUSED INITIATIVE 1: RIVER STRETCH CO-MANAGEMENT 30

2.2 FOCUSED INITIATIVE 2: SUSTAINABLE HYDROPOWER DEVELOPMENT 44

2.3 FOCUSED INITIATIVE 3: ENVIRONMENTALLY FRIENDLY ROADS 48

2.4 FOCUSED INITIATIVE 4: BASIN PLATFORMS 53

CHAPTER 3: ASSESSMENT OF IMPACTS 59

3.1 IMPACTS ON AQUATIC RESOURCES 61

3.2 GOVERNANCE IMPACTS 63

3.3 ECONOMIC IMPACTS 65

3.4 BASIN LEVEL IMPACTS 66

3.5 NATIONAL LEVEL IMPACTS 68

CHAPTER 4: LESSONS LEARNED AND RECOMMENDATIONS 70

4.1 LESSONS LEARNED 70

4.2 PROPOSED RECOMMENDATIONS 76

CHAPTER 5: SUCCESS STORIES 82

STORY 1 82

STORY 2 86

STORY 3 89

PAANI CHAMPION TESTIMONIALS 91

CHAPTER 6: FINANCIAL INFORMATION 94

SUMMARY OF PAANI SPENDING 94

ANNEXES 96

ANNEX 1: CUMULATIVE INDICATOR PERFORMANCE TABLE 96

ANNEX 2: GRANTS 113

ANNEX 3: PAANI CHAMPIONS 122

ANNEX 4: A QUATIC BIODIVERSITY DATABASE 117

ANNEX 5: PAANI TRAINING AND IEC ACTIVITIES 117

ANNEX 6: LOCAL GOVERNMENT CONTRIBUTIONS 117

ANNEX 7: PAANI LIVELIHOOD INTERVENTIONS 120

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TABLES

TABLE 1: STATUS OF KEY PAANI INDICATORS 28

TABLE 2: ENDORSEMENT OF THE EFRC GUIDELINES BY LOCAL GOVERNMENT 51

TABLE 3: FUNDS ALLOCATED BY LOCAL GOVERNMENTS FOR EF ROAD CONSTRUCTION 52

TABLE 4: GESI LEADERSHIP POSITIONS UNDER PAANI 64

TABLE 5: SUMMARY OF PAANI SPENDING 94

TABLE 6: LIST OF COMMUNITY LEVEL CHAMPIONS BY WATERSHED 122

TABLE 7: PROVINCE-LEVEL CHAMPIONS 128

TABLE 8: NATIONAL LEVEL CHAMPIONS 128

TABLE 9: TOTAL NUMBER OF FISH – MIGRATORY AND ENDEMIC SPECIES – AND THEIR

CONSERVATION STATUSES IN KARNALI, RAPTI, AND MAHAKALI RIVER BASINS BY FAMILY 117

TABLE 10: CUMULATIVE LIST OF FISH SPECIES IN THE MAHAKALI, KARNALI AND RAPTI RIVER BASINS

TABLE 11: EXOTIC FISH SPECIES AND AQUATIC INVASIVE PLANT SPECIES IN THE LOWER MAHAKALI, LOWER KARNALI, AND MIDDLE RAPTI WATERSHEDS 117

FIGURES

FIGURE 1: INFOGRAPHIC OF PAANI’S CUMULATIVE RESULTS 13

FIGURE 2: MAP OF PAANI’S 12 PRIORITY WATERSHEDS IN THREE RIVER BASINS 18

FIGURE 3: PAANI’S THEORY OF CHANGE 20

FIGURE 4: ORDER OF RESULTS: CONTRACT-SPECIFIED OUTCOMES 21

FIGURE 5: ORDER OF RESULTS AT DIFFERENT SCALES 22

FIGURE 6: PAANI’S FOUR FOCUSED INITIATIVES 30

FIGURE 7: MAP OF NURSING, SPAWNING, AND FISHING SITES IN PAANI PRIORITY WATERSHEDS 31

FIGURE 8: PROPOSED MAHSEER SANCTUARY AREAS 32

FIGURE 9: PAANI ECOTOURISM ASSESSMENT MAP 35

FIGURE 10: IMAGES FROM FIELD WORK FOR PAANI’S AQUACULTURE FEASIBILITY STUDY IN KARNALI

PROVINCE 37

FIGURE 11: MAP OF CO-MANAGEMENT REACH BY CAACGS IN PAANI PRIORITY WATERSHEDS 38

FIGURE 12: INFORMATION, EDUCATION AND COMMUNICATION (IEC) MATERIALS 40

FIGURE 13: AN EXAMPLE OF A POSTER ON SUSTAINABLE ROADS. 51

FIGURE 14: COMMUNITY MEMBERS GATHER TO ENGAGE AT A PAANI-FACILITATED TOWN HALL

MEETING AT PHOKSUNDO LAKE 54

FIGURE 15: PAANI RESULTS FRAMEWORK 59

FIGURE 16: PAANI TASKS ORGANIZED BY STRATEGIC APPROACH 60

FIGURE 17: IMAGE OF RARA SNOW TROUT 82

FIGURE 18: IMAGE OF MEMBERS OF THE RAKAM-KARNALI CAACG READ THE AABCA, ENDORSED BY

THEIR LOCAL GOVERNMENT IN 2018 83

FIGURE 19: IMAGE OF A CAACG IN MIDDLE RAPTI CONDUCTING A ROUTINE PATROL OF THE RAPTI

RIVER 86

FIGURE 20: IMAGE OF A CAACG COMPRISED OF THARU FISHERWOMEN GATHERS FOR A REGULAR

MEETING TO PLAN CONSERVATION ACTIVITIES 87

FIGURE 21: IMAGE OF SEEMA GHARTI OF THE RAKASA RAHA CAACG 88

FIGURE 22: IMAGE OF DHANSARI RAJI, THE FIRST RAJI WOMAN ASSISTANT RIVER GUIDE IN NEPAL

FIGURE 23: INTEGRATED FISH FARMS (LEFT) IN RANGUN AND LOWER KARNALI WATERSHEDS. THE

GRAPHIC (RIGHT) HIGHLIGHTS THE PROJECTED BENEFIT OF IFF 90

FIGURE 24: DISTRIBUTION OF GRANT SPENDING IN PAANI RIVER BASINS 95

FIGURE 25: DISTRIBUTION OF GRANT SPENDING BY PAANI’S PRIORITY WATERSHEDS 95

FIGURE 26: DISTRIBUTION OF GRANTEES IN PAANI PRIORITY WATERSHEDS 121

FIGURE 27: BASIN-BY-BASIN COMPARISON OF FISH DIVERSITY IN TERMS OF SPECIES, GENERA AND

FAMILIES IN THE KARNALI, MAHAKALI AND RAPTI RIVER BASINS 118

FIGURE 28: FISHING SITES IN KARNALI RIVER SYSTEM. 118

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ABBREVIATIONS

AACB Aquatic Animal Conservation Bill AABCA Aquatic Animal and Biodiversity Conservation Act AABCB Aquatic Animal and Biodiversity Conservation Bill ADB Asian Development Bank AEPC Alternative Energy Promotion Centre AEC-KU Aquatic Ecology Center- Kathmandu University APS Annual Program Statement AWP Annual Work Plan BAFER Balchaur Forest and Environment Resource Development Centre BCTS Brahmin, Chhetri, Thakuri and Sanyasi BMP Best Management Practice BPC Butwal Power Company CAACG Community Aquatic Animal Conservation Group CAPA Community Adaptation Plans of Action CAS Catch Assessment Survey CBAPU Community Based Anti-Poaching Unit CBR Community Biodiversity Register CCA Climate Change Adaptation CDES Central Department of Environmental Science CDCRPs Community Disaster and Climate Resilience Plan CFPCC Central Fisheries Promotion and Conservation Center CFMG Capture Fisheries Management Guidelines CFUG Community Forest User Group CIA Cumulative Impact Assessment CMDN Center for Molecular Dynamics Nepal CREEW Center of Research for Environment, Energy and Water CS Citizen Scientist CSR Corporate Social Responsibility CC Coordination Committee CFRCC Central Fisheries Promotion and Conservation Center CSO Civil Society Organization DANAR Dalit Association for Natural Resources DDC District Development Committee DG Director General DHM Department of Hydrology and Meteorology DJB Digo Jaal Bikas DNF Dalit NGO Federation DNPWC Department of National Parks and Wildlife Conservation DoAD Department of Agriculture DOED Department of Electricity Development DoFD Directorate of Fisheries Development DoLIDAR Department of Local Infrastructure Development and Agricultural Road

DRR Disaster Risk Reduction DSCO District Soil Conservation Office EAP Emergency Action Planning EAC Early Adopters and Champions EFRC Environmentally Friendly Rural Road Construction EDC Energy Development Council EIA Environmental Impact Assessment EMP Environment Management Plan EOA Energy Options Assessment ESIA Environmental and Social Impact Assessment FAN Forest Action Nepal FECOFUN Federation of Community Forest Users Nepal FEDWASUN Federation of Water and Sanitation Users Nepal FEWS Flood Early Warning System FEDO Feminist Dalit Organization FGD Focus Group Discussion FIRDO Fulvari Integrated Rural Development Organization FIs Focused Initiatives FMIS Farmers Managed Irrigation System FVA Fish Vulnerability Assesment FWCoE Freshwater Center of Excellence GESI Gender Equality and Social Inclusion GIS Geographic Information System GON Government of Nepal HbD Hydropower by Design HCVR High Conservation Value Rivers HWEPC Human Welfare Environmental Protection Centre IBN Investment Board Nepal ICH International Centre for Hydropower Norway ICID International Commission on Irrigation and Drainage ICIMOD International Centre for Integrated Mountain Development IEC Information, Education, and Communication IEE Initial Environment Examination IFF Integrated Fish Farming IFC International Finance Corporation IPM Integrated Pest Management IPPAN Independent Power Producers Association of Nepal IR Intermediate Result IRBM Integrated River Basin Management IRBMP Integrated River Basin Management Platforms IUCN International Union for the Conservation of Nature IWMA Integrated Watershed Management Activity IWMI International Water Management Institute IWRM Integrated Water Resource Management ISET-N Institute for Social and Environmental Transition - Nepal KII Key Informant Interview

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KISAN Knowledge-based Integrated Sustainable Agriculture in Nepal project KIDARC Karnali Integrated Rural Development and Research Center KRBCF Karnali River Basin Conservation Foundation KBCF Karnali Basin Conservation Fund KU Kathmandu University LAPA Local Adaptation Plans of Action LDCRCC Local Disaster and Climate Resilience Coordination Committees LDCRC Local Disaster and Climate Resilience Committees LGs Local Governments LTTA Long Term Technical Assistance LDCRP Local Disaster Risk Management Planning LVRE Low Volume Roads Engineering MEWRI Ministry of Energy, Water Resources and Irrigation M&E Monitoring and Evaluation MHP Micro-hydropower MoALD Ministry of Agriculture Livestock Development MoE Ministry of Energy MoFALD Ministry of Federal Affairs and Local Development MoFE Ministry of Forest and the Environment MoFSC Ministry of Forest and Soil Conservation MoI Ministry of Irrigation MRDCC Mallarani Rural Development Concern Center MSC Multi-Stakeholder Consultation (workshops) MWU Mid-Western University NARC Nepal Agriculture Research Council NATHM National Academy of Tourism and Hotel Management NBA Nepal Bankers Association NGO Non-Government Organization NCCSP Nepal Climate Change Support Programme NC Nature Conservancy NEA Nepal Electricity Authority NHA Nepal Hydropower Association NHDP Nepal Hydropower Development Project NENCID Nepal National Commission on Irrigation and Drainage NEFEJ Nepal Forum of Environmental Journalists NEFIN Nepal Federation of Indigenous Nationalities NFIWUAN Nepal Federation of Irrigation Users Associations NPC National Planning Commission NRBCF Nepal River Basin Conservation Fund NRCT Nepal River Conservation Trust PAHAL Promoting Agriculture, Health, and Alternative Livelihoods project PAs Protected Areas PEA Political Economy Analysis PES Payment for Environmental Services PHG People’s Help Group PSC Project Steering Committee

PTC Project Technical Committee RHF Resources Himalaya Foundation RSM River Stretch Management RRB Rapti River Basin SA Strategic Approach SEED Social, Environmental and Economic Development office SESA Strategic Environmental and Social Assessments SEE Sustainable Eco Engineering SHD Sustainable Hydropower Development SOW Scope of Work SSP System Scale Planning STTA Short Term Technical Assistance SWN Scott Wilson Nepal TNC The Nature Conservancy TOC Theory of Change TU Tribhuvan University USFS United States Forest Service USG United States Government VDC Village Development Committees VCA Vulnerability Capacity Assessments WECS Water and Energy Commission Secretariat WMO World Meteorological Organization WMS Watershed Management Specialist WUMP Water Users Management Plans WWF World Wildlife Fund YAE Youth Alliance for the Environment

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https://tribhuvan-university.edu.np/

From April 2016 through June 2021, the USAID Paani Program – यएुसएड पानी प�रयोजना – aimed to enhance Nepal’s ability to manage water resources for multiple uses and users through climate change adaptation and the conservation of freshwater biodiversity. Paani employed an integrated, whole-of-basin approach with activities at the watershed, river basin, and national scales, to reduce threats to freshwater biodiversity and strengthen the resilience of targeted human and ecological communities in the Karnali, Mahakali and Rapti river basins through improved water management.

Central to Paani’s approach and success was the project’s fundamental commitment to participatory and inclusive multistakeholder engagement, from the knowledge gathering and watershed profiling stage, through development of new conservation laws, to implementation of a river stretch co-management model, facilitating dialogue on sustainable hydropower, or advocating against destructive fishing practices and unsustainable road construction or mining activities. As a result of Paani’s interventions, 343,000 hectares of biodiversity rich area in Nepal are under improved management, and more than 80,300 hectares are showing signs of improved conditions. Paani’s engagement with local governments resulted in allocations of NPR. 71 million (USD 595,000) towards aquatic biodiversity conservation to further ensure long-term sustainability. Paani’s approach provided the building blocks towards inclusion and basin-level platforms that are well placed to sustain beyond the project period.

In the words of Mr. Sagar Rai, Secretary of Paani’s Government of Nepal counterpart, Water and Energy Commission Secretariat (WECS), “Thanks to Paani’s efforts, local communities and governments now have a better understanding of their shared values and the importance of water resources and aquatic biodiversity. New laws supported by Paani can help protect and conserve water resources and aquatic biodiversity. I see opportunities to replicate this type of program in other areas of Nepal and for local and provincial governments to successfully take on ownership of the programs Paani has already started. I can conclusively say that Paani has made a remarkable contribution to Nepal. The knowledge, experiences, and findings Paani leaves behind are valuable assets for us in the government of Nepal, and we will try to incorporate and implement those results and that knowledge in our planning, policymaking, and implementation.”

Paani’s four notable achievements, as presented in Chapter 2, cover its pioneering and replicable riverstretch co-management model, advocacy for sustainable hydropower development, support for environmentally friendly roads, and facilitation of basin platforms for dialogue, advocacy, and action.

MULTISTAKEHOLDER RESEARCH, CO-MANAGEMENT, AND POLICY DEVELOPMENT

Paani’s model for river stretch co-management reduced threats to freshwater biodiversity and fisheries livelihoods by empowering community groups to monitor and manage fishing resources in partnership with their local governments and by helping to draft and enact tailored conservation laws to protect aquatic biodiversity resources and curb harmful practices.

Paani helped local governments realize the need for a law to prevent and control destructive fishing practices and promote community-based conservation of aquatic biodiversity. In total, Paani helped

40 local governments develop Aquatic Animals and Biodiversity Conservation Bills (AABCBs), of which 38 have been enacted by local governments across eight watersheds in three provinces:

Sudurpashchim, Karnali and Lumbini provinces, in addition to contributing to national-level legislation and policies, such as the GON-enacted 2019 Federal Environmental Protection Act (EPA), which includes five Paani-drafted sections. Under co-management, Paani helped form 101 Community Aquatic Animal and Conservation Groups (CAACGs), which now jointly govern 458 kms of river stretches across ten watersheds in three provinces. In its final implementation year in response to the global COVID-19 pandemic, Paani supported these CAACGs and other vulnerable groups including female-headed households, migrant returnees, COVID-affected poor households through interventions that directly contributed to local food security and created job opportunities in order to reduce over-exploitation of fishery resources while conserving wild habitats and keystone fish species.

Paani’s aquatic monitoring, fish inventory activities, and assessments conducted in partnership with local grantees, research partners, and citizen scientists identified 212 fish species, including 204 native species. Paani also identified fish biodiversity hotspots in three river basins, including 128 spawning sites, 136 nursing sites, and 180 fishing hotspots.

Paani learned that engaging local stakeholders from the beginning helped build trust, led to the identification of social capital and champions, and encouraged their involvement in decision-making at all levels. Paani’s work supporting conservation laws provided an enabling environment for new co-management structures and roles.

SUSTAINABLE HYDROPOWER DEVELOPMENT

Paani’s work promoting sustainable hydropower development is helping to reduce Nepal’s vulnerability to conflict over water resources and to protect its freshwater ecosystems through environmentally appropriate water management, including basin-level planning, sustainably siting and designing dams, and minimizing the negative impacts of water diversions. Paani developed a comprehensive checklist to monitor and track environmental and social safeguards in hydropower development and operations and to report performance of hydropower projects. A study on system scale planning highlighted how hydropower planning and development can be balanced with other energy options and conservation goals – data sets and study results are being utilized by USAID/Nepal’s Urja Project in their electricity sector planning activities. To help communities better advocate for sustainable hydropower and to reduce other development threats to ecological systems, Paani developed a CSO Advocacy Guideline for Healthy Rivers. Paani learned that effective advocacy for sustainable hydropower requires coordination among coalitions at the local and national levels.

ENVIRONMENTALLY FRIENDLY ROADS

Paani reduced watershed degradation resulting from sedimentation and landslides by reducing the negative impacts of infrastructure development and construction, including rural roads and aggregate mining. Paani promoted more Environmentally Friendly Road Construction (EFRC) and reduced unregulated gravel mining by building user groups’ capacity to advocate for better road construction and encouraged local governments to prioritize funds for Environmentally Friendly (EF) roads. Paani successfully collaborated with 15 local governments and about 90 stakeholders in three watersheds to develop and endorse EFRC guidelines and to raise awareness and promote better road construction. Paani learned that when user groups advocate for better road construction, municipalities/ rural municipalities will prioritize funds for roads with EF design, and that building1

1 There are three tiers of government in Nepal- federal, provincial and municipal. A municipality or rural municipality is the lower administrative division. A municipality is declared based on several criteria including population and annual domestic income. Those areas

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https://issuu.com/paaniprogram/docs/cso_advocacy_guideline_final_approved_4.20.21 student capacity on EF roads and incorporating it into curricula promotes sustainable road construction.

SUCCESSFUL BASIN PLATFORMS AND ADVOCACY WITH IMPACT

Paani succeeded in developing watershed-level platforms and forums to inform each watershed’s vision and capacity to balance development and conservation. Paani created 16 integrated watershed management platforms; while still informal they are convened by local government representatives who lead the platforms. Paani successfully disseminated conservation messaging through various platforms, with proven impact. Through 96 TV episodes (reaching 180,000 people) and 96 radio episodes (reaching 330,000 people), Paani shared 336 good practices of conservation. Paani held 69 town hall meetings on 14 issues, reaching 5,000 diverse stakeholders. A Paani survey showed that 96 percent of town hall attendees, 87 percent of Paani radio program listeners, and 80 percent of Paani TV program viewers engaged in conservation activities after their participation.

Paani’s cumulative results across all notable achievements are summarized in Figure 1.

Figure 1: Infographic of Paani’s Cumulative Results

In addition to Paani’s impressive results across four notable achievements, the program also leaves behind a legacy through several pioneering initiatives and studies that were implemented during its five years.

● Established first-ever Freshwater Center of Excellence (FWCoE) housed at Tribhuvan University’s Central Department of Environment Science to provide long-term access to freshwater biodiversity data;

● Designed and established Nepal’s first river conservation foundation and impact fund, the Karnali River Basin Conservation Fund (KRBCF) and Karnali Bain Conservation that do not meet minimum population or income thresholds are declared a rural municipality. Nepal currently has 293 municipalities (made up of six metropolises, 11 sub-metropolises and 276 municipalities) and 460 rural municipalities.

Foundation (KBCF), with a registered consortium of advisors promoting both among provincial governments and entrepreneurs and identifying investment-worthy projects;

● In collaboration with GoN, developed Rara Lake Ramsar Site Management Plan to help conserve and maintain the ecological integrity of Rara Lake—Nepal’s largest lake and a fish biodiversity hotspot—and to promote the wise use of wetland resources.

● Employed first-of-its-kind eDNA study on aquatic biodiversity with USFS and Center for Molecular Dynamics Nepal (CMDN) to determine fish abundance and species in the Karnali river systems. CMDN developed a comprehensive genetic database for identified fish species collected from 15 strategic locations on the Karnali and recorded 50 fish species through sample fish tissues and e-DNA. Results were used for advocacy on sustainable hydropower development.

● Through a WWF-led consortium, Paani conducted three pioneering studies to inform river basin planning: a System Scale Planning (SSP) assessment that highlighted how hydropower planning and development can be balanced with other energy options and conservation goals; an Energy Options Assessment (EOA) that produced least-cost pathways for Nepal’s power system over the next 20 years; and a report that identified High Conservation Value Rivers (HCVR) of Nepal.

● A series of capture fisheries assessments, led by SNV, resulted in the first document on the value and market nexus of capture fisheries of Nepal. This foundational study led to development of a Fisheries Conservation Governance Framework and Market Development Strategy, which informed fisheries policy and developed a log frame to guide investment. A catch analysis and business cases lay the foundation for sustainable capture fisheries in Nepal.

● To boost ecotourism in the Karnali River Basin, Paani led an Assessment of Nature based Tourism Potential in Karnali River Basin ecotourism study that resulted in recommendations to integrate existing itineraries with tour operators; prepared land use plans for protected areas;

develop minimum standards for tourism; and improved administrative and regulatory framework for tourism concessions in protected areas. The report contributed to a Tourism Master Plan developed by the Karnali Province government.

● A 44-day expedition of the Karnali River led by Nepal River Conservation Trust (NRCT) with Paani’s support resulted in a Karnali River Corridor Management Framework that can be used to ensure water resources and lands are managed to maintain important social and environmental values by federal and provincial government and development partners. The expedition also resulted in the development of The Strategic Considerations for River Conservation Legislation in Nepal which advocates to permanently protect designated segments of the Karnali River.

Over the past five years Paani’s learning ranged broadly, from high-level lessons relevant to multisectoral whole-of-river-system understanding and enabling conditions, to hands-on lessons for working among competing interests in specific open-access river stretches. Many of Paani’s lessons offer practical and replicable guidance for other implementers or advocates to use as they carry forward conservation success. In terms of local engagement, Paani learned that champions at2

2 Champions proactively engaged in conservation activities as they developed confidence in their ability to manage local resources, built collaborative relationships with local government, and lead community engagement. As AABCAs legislate the role of CAACGs – the

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http://202.70.90.214:5000/publications/110 http://202.70.90.214:5000/publications/112 http://202.70.90.214:5000/publications/112 http://fwcoe.cdes.edu.np/publications/118 multiple levels can contribute to all aspects of holistic management and conservation of aquatic resources. Local and provincial-level policy engagement resulted in buy-in and active participation as they gained more autonomy. Paani observed that local elections conducted after a gap of 20 years and the new 2015 Constitution paved a way for devolution of powers to local governments and created opportunities for newly elected leaders to include local voices in decision-making for freshwater biodiversity conservation. By raising awareness of Paani staff and partners on GESI values and benefits, Paani achieved more inclusive programming, such as AABCAs requiring that a minimum 51 percent of CAACG members be women or representatives from marginalized groups or Integrated Fish Farming (IFF) programming that targeted female-headed households, COVID-19 impacted households, migrant returnees, Dalits, and, CAACG members. Paani’s USD 4.8 million, flexible, pilot grants program enabled innovation, collaboration, and stewardship to a critical mass of partners and stakeholders. Lastly, Paani noted that linking river stretch conservation with income generating activities and tangible benefits significantly improved local stakeholders’ uptake of new practices and market-led approaches.

This final report is presented in six chapters that cover Paani’s approach, cumulative achievements, an assessment of program impacts, lessons learned and recommendations, a sampling of program success stories and champion testimonials demonstrating Paani’s impact and outcomes across its 12 priority watersheds, as well as a financial summary.

platform through which many of these champions work – it is expected that these champions will continue to advocate for sustainable management of aquatic resources in future.

1.1 PAANI CONTEXT AND DESIGN

Water, or paani in Nepali, is the single most important natural resource underpinning Nepal’s economy and livelihoods, including fisheries and irrigated agriculture. The Paani Program’s implementation area focused on the Karnali, Mahakali, and Rapti river basins of the Mid-Western and Far-Western Nepal, which jointly account for more than one-third of the total area of Nepal (more than 37,000 square km) and contain more than 79 individual watershed hydrological units. The river basins are highly biodiverse and carry out critical ecological functions, but are also understudied, despite their potential of having some of the most species rich waters in the world. The Government of Nepal (GoN) has designated eight important national Protected Areas (PAs) in five of Paani’s 12 priority watersheds. The project area’s vast array of freshwater habitats includes glaciers and glacial lakes, small and large perennial and intermittent rivers, lakes, springs, swamps, and wetlands, as well as man-made habitats such as ponds, reservoirs and irrigated rice paddy fields. Yet, hydropower and other infrastructure development, the development of water resources, and population growth, have all put increased pressure on the water resource base and the functioning of the system. The recent COVID-19 crisis has also exacerbated pressure on fishery resources in some areas, with the influx and congregation of unemployed migrant returnees.

Paani’s design called for an integrated, whole-of-river-basin approach with activities at the watershed, river basin, and national scales, which enabled responses to three main problem sets:

● As dynamic and complex socio-ecological systems that provide water resources and related ecological functions (i.e. moderating climate, ensuring water quality/quantity, and maintaining soil and water productivity), river systems are affected by both man-made and natural processes, with impacts that are often far removed from their origins.

● Increased, and relatively “open access” pressure on river basin resources and river system functioning as a result of development and population growth.

● Limited understanding of river basins, upstream-downstream connectivity, and other interactions.

Human uses often worsen approaches to water resource development, with little consensus on how development can be achieved without undermining supporting functions and values (especially fisheries and aquatic biodiversity).

Recognizing the complex challenges of managing Nepal’s water resources, the program’s 48 “required tasks” were initially organized under four Intermediate Results (IRs), each comprised of two or three sub-IRs (Paani’s Results Framework is presented in Chapter 3). The four IRs were:

● IR 1: Increased knowledge, engagement, and benefits for local water users

● IR 2: Improved basin-level resource management

● IR 3: Strengthened coordination and enabling environment

● IR 4: Expanded knowledge base

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Building on the program’s initial Theory of Change (ToC) analysis and closely aligned with its ten3 sub-IRs, Paani developed specific “strategic” approaches applicable at the watershed and basin levels, and cross-cutting strategic approaches applicable at both levels and/or the national level, as shown in Box 1.

Two other U.S. government initiatives – the International Water Management Institute (IWMI)-implemented Digo Jal Bikas (DJB) project and support from the U.S. Forest Service (USFS) –provided complementary support to the Paani project through specialized research, workshops, trainings, and a Sustainable Hydropower Study Tour. USAID also designed the Nepal Hydropower Development Project (NHDP) at the same time, focused on moving priority hydropower projects to financial closure and on electricity sector policy and institutional reforms.

1.2 APPROACH

At inception, Paani began to apply four approaches: upstream-downstream linkages, user-centered design, adaptive learning, and sustainability. Most important was a fundamental commitment to participatory principles for inclusive stakeholder engagement and collaboration, which underlay all four principles. The section below presents how these implementation principles were sustained through the five-year implementation period.

UPSTREAM-DOWNSTREAM LINKAGES

Under IR 2: Improved basin-level resource management, Paani’s overall integrated river basin management approach connected upstream and downstream stakeholders in managing relationships

3 A strategic approach was developed for each of the ten sub-IRs, with an added strategic approach for managing invasive species.

and resources and in taking actions to strengthen water resource governance, management, and conservation over longer time frames and at larger scales. The approach sought to connect the diverse users of rivers and aquatic resources across river basins, watersheds, and political/administrative jurisdictions, sectors and disciplines, and caste/ethnic groups. Given the complexity of river basin socio-ecological systems and the limited understanding of these systems and their multiple uses, Paani chose to pilot its activities at the watershed level—a unit that enables practical, hands-on learning, and action in close collaboration with leaders and stakeholders at different levels, including local upstream and downstream stakeholders. Paani selected 12 watersheds (see map below), approximately 876,473 hectares, that represented the full range of issues and opportunities that had been identified during the earlier design process and confirmed during the team’s initial consultations with key stakeholders.

Figure 2: Map of Paani’s 12 Priority Watersheds in Three River Basins

As described under the following section, Paani began with watersheds to gain—and help stakeholders articulate—an understanding of their particular problems in their particular places.

Paani helped stakeholders develop relevant site-specific information/understanding and more inclusive, GESI-aware, participation in decision-making. Eventually, through the grants program, Paani engaged a network of stakeholders that filled knowledge gaps, developed watershed management and conservation plans, practices, and enabled legislation that helped communities support development goals of multiple users sustainably.

The experience and trust developed through collaborative relationships at the watershed level helped community-level stakeholders work more credibly with other stakeholders and, through openings provided by the new federal constitution, influence other levels of government, donors, and decision-makers at the river basin level and national policy levels. Place-based engagement with ’real-world’ actors informed Paani’s work across different sectors and disciplines and helped amplify previously unheard voices within local communities and among fisher folk, local government, USAID.GOV PAANI FINAL PROGRESS REPORT | 19 provincial government, academia, CSOs/NGOs, and the media. It helped a diverse array of public and private organizations, agencies, and individuals begin to reach common understandings.

USER-CENTERED DESIGN

A key challenge for Paani was to enable diverse actors to see themselves as ‘owning’ whatever success Paani helped achieve. The Paani team had to learn how to help stakeholders understand each other’s diverse interests and values, reach common understanding on issues and opportunities, and identify promising entry points to begin to work together. Fundamental to achieving this was Paani’s strong commitment to participatory principles , which include:4

● Accompany local talent and leaders; do not replace them.

● Hear and respect all voices.

● Understand and strengthen social capital; do not undermine it.

● Build on local institutions with clear insight into power structures.

Paani’s participatory approach to user-centered design led to important process changes, including improved communication and understanding, an adaptive management culture within the team, and stakeholder ownership of learning and discovery built on their knowledge of the place. Paani began its work in each of the 12 watersheds with ‘user-centered’ Watershed Profiles (see Box 2) and Watershed Health Reports to adapt its issue-based strategic approaches and ToCs to particular stakeholders. The approach facilitated inclusive dialogue and reflection with partners and stakeholders as well as adjustments, as understanding evolved.

ADAPTIVE LEARNING

4 These participatory principles were drawn from international experience, including principles from USAID’s Nature, Wealth, and Power , Nobel laureate Elinor Ostrom’s insights into natural resource governance (based in part on her work in Nepal in the 1990s), and Nepal’s hands-on experience with participatory approaches from USAID/Nepal’s Rapti Development Project and Irrigation Management Project (beginning in the 1980s) to the present.

As noted above, USAID’s design enabled Paani to evolve over the years through its use of ToC to adapt activities to reflect Nepal’s evolving political, ecological, and economic circumstances as stakeholders began to collaborate in selected watersheds. As a first step before implementation, in late June 2016, USAID’s Measuring Impact project brought together USAID staff, initial members of the Paani technical team, collaborating partners from USFS and IWMI, and other stakeholders to review and refine the ToCs developed earlier, an exercise repeated each year afterwards in Pause and Reflect Workshops to review assumptions of causality and logic, identify appropriate indicators to test these assumptions, and develop learning questions to test the development hypothesis for each Strategic Approach (SA).

Figure 3: Paani’s Theory of Change

USAID’s Measuring Impact team generated cause-and-effect ’results chain’ diagrams illustrating each approach’s ToC. The ToCs supported reflective dialogue among team members and partners on cause and effect across different perspectives and interests. In small group discussion, Pause and Reflect workshop participants worked back through causal relationships and assumptions to a deeper understanding of each approach. In short, they were tools for exploring entry points, design, priorities, and learning, and did not need to be perfect in all details. Although the leaders of each Strategic Approach (SA) would refer back to the results chains, the main challenge for field team members and partners was learning from implementation—comparing how particular stakeholders had implanted (or not) and adapted Paani principles, models and practices to address particular issues and opportunities in each of the 12 watersheds. Understanding this implementation and adoption of project outputs leads to outcomes that endure and have the best chance for replication beyond the project.

Paani consolidated the hypotheses for all the strategic approaches into an overall program hypothesis: In light of the evolving federalization-cum-decentralization process and, at times, fragile social and political situation, Paani catalyzed a process that will be achieved over time and at different scales. Results were categorized into four “orders” that could be achieved at different periods of time (See Figures 4 and 5 for “order of results” from Paani’s AWPs and MEL Plans.)

● 1st order: Integrated enabling structures and institutional arrangements formalized.

● 2nd order: Changes in relationships, capacities, and behaviors.

● 3rd order: Emerging social, economic, water resource, and biodiversity benefits; basin-level decision-making platforms strengthened.

● 4th order: Freshwater ecological processes and values conserved; human well-being improved.

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Within its five-year time span, most of Paani’s results were expected to be first and second order results, as the time required for developing the conditions that enable a whole-of-basin approach to WRM and freshwater biodiversity is considerably longer than the life of the project. The first and second order results—developing key structures and institutional arrangements and a body of active experience around new relationships and capacities—are foundations for long-term changes leading to enduring benefits and impacts.

Figure 4: Order of results: contract-specified outcomes

Figure 5: Order of results at different scales

In Year 1, Paani’s foundational activities developed a common understanding of aquatic biodiversity through its research and participatory multi-stakeholder consultations. At the Year 2 “Pause and Reflect” Workshop, Paani noted that it had brought together a group of champions with which to work and local governments were poised to develop legal/policy frameworks at the local level, prompting people to begin coalescing around issues regarding the balance between livelihood needs and conservation. In Year 3, Paani identified four initiatives with the greatest opportunity for significant impact:

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● Catalyze collaborative aquatic resource management.

● Help local governments plan and design local infrastructure better.

● Inform and strengthen multi-stakeholder vision.

● Inform and strengthen multi-stakeholder platforms.

Paani refined and refocused these four initiatives in its Year 4 work plan, which became known as Paani’s four “Focus Initiatives” (FIs), each relating to the project’s Strategic Approaches. The four FIs include:

● River stretch co-management: Develop collaborative aquatic resources co-management models with primary attention to a model framework for river stretch co-management, and additional support to strengthen a co-management framework for the Department of National Parks and Wildlife Conservation (DNPWC) and local communities around protected lake systems, and for integration of livelihoods development to support these co-management models;

● Sustainable hydropower: Assist in the development of a national sustainable hydropower strategy;

● Environmentally friendly roads: Launch a comprehensive pilot for environmentally friendly road design; and

● Basin platforms: Inform and strengthen a multi-stakeholder Karnali River Basin vision and platform which aims to support Karnali River Basin Planning .5

SUSTAINABILITY

As for user-centered design, participatory principles were fundamental to Paani’s focus on sustainability. The key to sustainability—and indeed to replicating/scaling—was not in the quality of technical assistance, training, or other services or products that Paani delivered, but in the degree and kinds of stakeholder uptake, which often involved some transformation of an output as “delivered”—as it moved from the project’s frame of reference to the stakeholder or community’s frame of reference. Paani began to learn what outcomes were possible from how people took what the project did and made it their own, sometimes changing it from what was expected. Paani weaved elements of ownership through all of its services and products: fostering government and institutional ownership in research or training program design or helping to formalize handover of rights and responsibilities for river stretch management. Among the most important outcomes were new and/or strengthened relationships and linkages among watershed, basin-level, and national-level stakeholders. Paani did not “achieve” this, stakeholders achieved it. Paani’s role was to facilitate, support, train, mentor, and guide stakeholders, as needed. Local governments and communities

5 While a Karnali River Basin platforms was not established (see discussion in Section 3.4 Basin Level Impacts), several Paani activities built multi-stakeholder support for the concept: 1. the Karnali Province’s Aquatic Animal Conservation Bill (AACB) that Paani supported includes provisions on the establishment of a province-wide Aquatic Animal Management Council under the chairpersonship of the Chief Minister; 2) the Karnali River Corridor Management Framework and the Strategic Consideration for River Conservation Legislation in Nepal developed by Paani grantee NRCT highlighted the need for a coalition/platform that supports basin-level planning in KRB; and, the Paani-supported establishment of the Karnali River Basin Conservation Fund and Karnali Basin Conservation Foundation demonstrates the private sector’s shared interest in river conservation.

http://fwcoe.cdes.edu.np/publications/119 engaged in the analysis of issues and took responsibility for action. The power of this approach grew from dialogue and a sense of shared purpose. Part of the challenge was helping people understand benefits and trade-offs in relation to each other’s interests in the river’s resources. In the Nepali context, sustainability required demonstrating improved livelihoods without undermining the river’s capacity to support a healthy economy. Paani’s design provided limited scope for direct work to enhance local livelihoods and incomes. The one exception was project support in 2020 to support Integrated Fish Farming (IFF) systems as a livelihood-enhancing opportunity in response to the COVID-19 crisis.

1.3 IMPLEMENTATION PRINCIPLES

Paani’s implementation principles integrated the provision of technical and financial resources in six ways that mutually reinforced each other, including systems for engaging partners through subcontracts and grants, capturing data and information, and reporting and communicating results and lessons learned.

1. Research linked in-country and international experts. Rather than “outsourcing” analysis, Paani’s assessments brought together one or more full-time team members and partners, national consultant(s) and, as appropriate, international expertise to work together on given analyses. Most data collection drew significantly on local knowledge and significant emphasis was given to citizen science. Through their involvement in research, community people gained the skills and confidence to use mobile phone applications and other tools for biophysical measurement and social surveys.

They began to understand the potential value of this new information and to speak out more strongly in public fora. The process resulted in a growing sense of ownership and confidence from local stakeholders as they applied new tools and engaged with each other and with other traditionally more powerful stakeholders. Similarly, Paani’s high conservation value river (HCVR) assessment brought together a diverse team of local and international experts and scientists, and facilitated an advisory group consisting of stakeholders and policy makers who met periodically to guide the assessment team and corroborate outcomes. This national-level engagement was key to influencing and supporting priority actions by the Ministry of Forests and Environment (MoFE) and the National Planning Commission.

2. Training strengthened champions and institutions. Paani applied a participatory and adaptable discovery learning approach attentive to the way, and by whom, knowledge was accepted, respected, taken up, discussed, and/or used. Paani’s challenge was to encourage free and “fearless” open exchange of ideas among diverse team members and to cascade that spirit of discovery, collaboration, and stewardship outward to other partners and stakeholders. Participatory principles were applied from the very beginning, at a workshop hosted in Year 1 by the Mid-Western University (MWU) in Surkhet that developed citizen science capacity and also served as a platform where district representatives of partner federations, the Paani team, government officials, teachers, and students met to identify issues and develop tools and methods for watershed profiling. Federation members and university students were trained in field testing, real-time data collection, and data analysis. This learning experience informed the training that partner federations gave to local members to gather data for the 12 watershed profiles and, later, the training of Community Aquatic Animal Conservation Group (CAACG) members to collect data on their own river stretches, as they learned to bring science and traditional knowledge together to inform discussion and negotiate.

3. Technical assistance, carried out by mixed teams of Nepali and international long-term and short-term specialists, adapted local knowledge and international best practice to design project innovations appropriate for the Nepali context and end users.

Paani’s staff and partners worked closely with relevant ministries and maintained productive relationships with water users, community-based groups, and local and national government entities, USAID.GOV PAANI FINAL PROGRESS REPORT | 25 including Paani’s national-level government counterpart, the Water and Energy Commission Secretariat (WECS). Among Paani’s studies most appreciated at the local level were the market- and investment-related analyses in fisheries and ecotourism, which highlighted significant economic opportunities without greatly impacting the living river system. In retrospect, the lack of a full-time market-oriented specialist on the team limited Paani’s ability to balance its governance and regulatory interventions (e.g., in river stretch management and road construction) with the development of livelihood alternatives. However, in its final implementation year, COVID-19 exacerbated pressures on capture fisheries as river-based communities faced increased unemployment, loss of income-generating activities, and an influx of returning migrant laborers. In response, Paani promoted Integrated Fish Farming (IFF) interventions that directly contributed to local food security and income and created job opportunities to reduce over-exploitation of fishery resources while conserving wild habitats and keystone fish species.

4. Gatherings (workshops, conferences, public education events, and working groups) engaged diverse perspectives and disciplines. Developing skills and habits for interdisciplinary approaches began within the team, as an ongoing learning exercise to collaborate, heed local wisdom, and make connections between ideas across technical and social boundaries. As a team made up largely of technical specialists, short-term support from both the home office and local experts in “softer” skills, such as facilitation, team building, and gender and social inclusion (GESI) were very useful. As the team’s capacity grew, team members facilitated deeper and more constructive dialogue, enriching perspectives to fill gaps in understanding, clarify the impacts of alternative decisions, help stakeholders better understand each other and, often, reaching consensus on new ways forward.

At the national level, the sustainable hydropower discussion series with International Finance Corporation (IFC) brought engineers, biologists, and local people together. Paani’s support to the Nepal River Conservation Trust (NRCT) and its partners for two National River Summits in March 2017 and in March 2019 and to the Nepal National Committee of the…