Attachment_14_-_Initial_Environment_Examination.pdf

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PROGRAM/ACTIVITY DATA:

Program/Activity Number: AID-OAA-M-11-00021 Program Activity Title: Agriculture, Trade and Business (ATB) Portfolio Country/Region: Mozambique/Southern Africa Functional Objective: Economic Growth Program Areas: 4.5 Agriculture

4.6 Private Sector Competitiveness

4.8 Environment

Program Elements: 4.5.1 Agriculture Enabling Environment

4.5.2 Agriculture Sector Capacity

4.6.1 Business Enabling Environment

4.8.1 Natural Resources and Biodiversity

4.8.2 Clean Productive Environment

Funding Begin: 2012 Funding End: 2017 Total Estimated Amount: $124 Million

Program Components ap. LOP funding Start Date End Date

Coastal City Adaptation Program (CCAP) $18 million 12/01/2012 12/01/2017

Biodiversity and Tourism (BIOTOUR) Program $14.5 million 12/01/2012 12/01/2017

US Global Food Security Presidential Initiative “Feed the Future” (FTF) $93.5 million FY 12 FY 15

IEE Prepared By: James Jolley, The Cadmus Group, Inc. (james.jolley@cadmusgroup.com)* with Patrick

Hall and Mark Stoughton (also of the Cadmus Group)* and Jason Katz, USAID/Mozambique MEO. *(under the USAID Global Environmental Management Support Project (GEMS))

Current Date: 26 July 2012 IEE Amendment (Y/N): N IEE Expiration Date: 30 September 2017

Other Relevant Environmental Compliance Documentation: This IEE will apply to new ATB procurements after the above-noted effective date and supersedes any pre-existing Reg. 216 documentation, with the exception of the 2009 ATB PERSUAP. Existing ATB activities will continue to be covered under the following USAID/Mozambique Reg. 216 documentation.

2009 DCA Loan Portfolio Guarantee (LPG) for Agribusiness IEE http://gemini.info.usaid.gov/egat/envcomp/repository/pdf/721.pdf

Gorongosa National Park Rehabilitation Program IEE http://gemini.info.usaid.gov/egat/envcomp/repository/pdf/37531.pdf

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2009 ATB Pesticide Evaluation Report and Safer Use Action Plan (PERSUAP) 2010 AgriFUTURO IEE (under review by BEO) 2010 ATB Portfolio IEE http://gemini.info.usaid.gov/egat/envcomp/repository/pdf/37090.pdf

ADDITIONAL ELEMENTS: (Place X where applicable) CONDITIONS _____x_____ PVO/NGO: ___x_____ EMMP __x___

SUMMARY OF FINDINGS:

Scope and background. This IEE addresses proposed activities of the USAID/Mozambique Agriculture, Trade and Business (ATB) Office. The IEE evaluates proposed activities included in the new Coastal City Adaptation program, in the Biodiversity and Tourism program, and in the Feed the Future Agriculture and Nutrition program within the framework of the Country Assistance Strategy (CAS).

Intervention Categories. For the purpose of environmental review, current and anticipated activities in the ATB portfolio are grouped into the following intervention categories.

1. Government Capacity Support and Development in the Areas of Agriculture, Agribusiness, Nutrition, Climate Adaptation, and Biodiversity-Based Tourism;

2. Agricultural Productivity and Agribusiness Sector Competitiveness and Financing in Select Provinces;

3. Agricultural Research, Experimentation and Related Capacity-Building;

4. Nutrition Improvement Activities, excluding Infrastructure;

5. Construction, Rehabilitation and/or Operation of Small Scale Agricultural Infrastructure;

6. Climate Adaptation Activities for Select Coastal Cities;

7. Biodiversity-Based Tourism Development; and,

8. Small Grants activities.

Each category contains a number of activities; recommended determinations are advanced for each activity.

Recommended Determinations

The following table summarizes the recommended determinations associated with the ATB portfolio intervention categories listed above (note that there are no separate recommended determinations associated with Categories 7).

For each, a link is provided to the activity descriptions, analysis of potential environmental impacts, and activity-by-activity determinations and conditions within the body of the IEE.

Intervention Category Categorical Exclusion(s)

Negative Determination(s)

Positive Determination(s)

Link to full analysis

Government Capacity Support and Development in the Areas of Agriculture, Agribusiness, Nutrition, Climate Adaptation, and Biodiversity-Based Tourism

(w/ conditions)

Click here

Agricultural Productivity and Agribusiness Sector Competitiveness and Financing in Select Provinces

Agricultural Research, Experimentation and Related Capacity-Building

Nutrition Improvement Activities, excluding Infrastructure

ENVIRONMENTAL ACTION RECOMMENDED: (Place X where applicable)

Categorical Exclusion: Negative Determination:

Positive Determination: Negative Determination with conditions:

Deferral:

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Construction/Rehab of Small Scale Agricultural Infrastructure

Climate Adaptation Activities for Select Coastal Cities (w/ conditions)

Click here

Biodiversity-Based Tourism Development (w/ & w/out conditions)

Note that Negative Determinations are recommended pursuant to 22 CFR 216.3(a)(2)(iii).

Deferrals of a Threshold Determination apply to:

Development of detailed statute or implementing regulations for nutrient fortification (under Government Capacity Support and Development in the Areas of Agriculture, Agribusiness, Nutrition, Climate Adaptation, and Biodiversity-Based Tourism); and

Expanding the use of USAID Development Credit Authority (DCA) facility for financing tourism enterprises (under Biodiversity-Based Tourism Development).

Irrigation Schemes of >50Ha irrigated area

These deferrals must be resolved in a new or amended IEE prior to obligation of funds for implementation of the activities identified.

General Restrictions (reproduced verbatim from section 4.1 of the IEE)

1. GMOs/LMOs: For purposes of compliance with USAID procedures, Genetically Modified Organisms (GMOs) or Living Modified Organisms (LMOs) are defined as “living organisms modified by genetic engineering techniques” and include, e.g., plants, microorganisms, live animal vaccines (if used outside a contained area and not approved in the US), animals, and insects.

This IEE does not authorize support for laboratory- or field-based research involving GMOs/LMOs, nor does it authorize support for multiplication, confined field testing, open release or commercialization of GMOs/LMOs. Support for laboratory research involving GMOs/LMOs in contained facilities would require an approved amendment to this IEE. Support for field testing or open release of GMOs/LMOs would require successful review under USAID’s Biosafety Procedures followed by an approved IEE amendment.

Mozambican national requirements must be met in either case.

See the ENCAP Biosafety Procedures Factsheet for more information:

www.encapafrica.org/meo_resources/Biosafety_5Feb2010.pdf.

2. PESTICIDES. All activities that fall outside of the category of controlled experimentation exclusively for the purpose of research and field evaluation and entail the procurement or use, or both, of pesticides shall conform with the 2009 ATB Pesticide Evaluation Report and Safer Use Action Plan, conducted in accordance with USAID Pesticide Procedures (22 CFR 216.3(b)). No funds shall be obligated or expended for the procurement or use of pesticides unless they are specifically approved in the ATB Agriculture PERSUAP developed in 2009.

General Project Implementation and Monitoring Requirements (reproduced verbatim from Section 4.2 of the IEE)

In addition to the specific conditions enumerated in Section 3 of the IEE, the negative determinations recommended are contingent on full implementation of the following general monitoring and implementation requirements:

1. Consideration of Project-level IEEs. This ATB portfolio IEE was developed, as required by USAID project design guidance, during the pre-PAD analysis stage in the project design cycle. As such, it was developed with only relatively general information available regarding proposed activities.

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Therefore, for each major ATB procurement, the ATB team, in consultation with the MEO and REA, must consider whether the goal of environmentally sound design and management and clarity and transparency regarding IP and ATB team compliance requirements would be best served by development of a project-level IEE based on far more specific activity descriptions. Such project-level IEEs would supercede this portfolio IEE for a particular procurement, but would be guided by and establish conditions no less stringent than those set out by this IEE. Such IEEs must incorporate all of the remaining conditions set out in this section.

2. IP Briefings on Environmental Compliance Responsibilities. The ATB team shall provide each ATB Implementing Partner (hereinafter IP), with a copy of this IEE; Each IP shall be briefed on their environmental compliance responsibilities by their cognizant C/AOR. During this briefing, the IEE conditions applicable to the IP’s activities will be identified.

3. Development of EMMP. Each IP whose activities are subject to one or more conditions set out in section 3 of this IEE shall develop and provide for C/AOR review and approval an Environmental Mitigation and Monitoring Plan (EMMP) documenting how their project will implement and verify all IEE conditions that apply to their activities.

These EMMPs shall identify how the IP shall assure that IEE conditions that apply to activities supported under subcontracts and subgrant are implemented. (In the case of large subgrants or subcontracts, the IP may elect to require the subgrantee/subcontractor to develop their own EMMP.)

(Note: refer to the AFR EMMP Factsheet, available at www.encapafrica.org.)

4. Integration and implementation of EMMP. Each IP shall integrate their EMMP into their project work plan and budgets, implement the EMMP, and report on its implementation as an element of regular project performance reporting.

IPs shall assure that sub-contractors and sub-grantees integrate implementation of IEE conditions, where applicable, into their own project work plans and budgets and report on their implementation as an element of sub-contract or grant performance reporting.

5. Integration of compliance responsibilities in prime and sub-contracts and grant agreements.

a. Use of ADS Tool: “Environmental Compliance: Language for Solicitations and Awards,” The ATB team shall assure that all solicitation and award documents include environmental compliance language generated by the ADS Help Document/Tool: Environmental Compliance: Language for Solicitations and Awards.(http://transition.usaid.gov/policy/ads/200/204sac.pdf)

Award language generated by this document requires not simply compliance with IEE conditions, but the budgeting and planning tasks necessary for compliance, such development of EMMPs and annual review of workplans against the scope of approved Reg. 216 documentation.

b. IPs shall assure that sub-contracts and sub-grant agreements reference and require compliance with relevant elements of IEE and EA conditions.

6. Assurance of sub-grantee and sub-contractor capacity and compliance. IPs shall assure that sub-grantees and subcontractors have the capability to implement the relevant requirements of this IEE. The IP shall, as and if appropriate, provide training to subgrantees and subcontractors in their environmental compliance responsibilities and in environmentally sound design and management (ESDM) of their activities.

7. ATB Team monitoring responsibility. As required by ADS 204.5.4, the ATB team will actively monitor and evaluate whether the conditions of this IEE are being implemented effectively and whether there are new or unforeseen consequences arising during implementation that were not identified and reviewed in this IEE. If new or unforeseen consequences arise during implementation, the team will suspend the activity and initiate appropriate, further review in accordance with 22 CFR 216. USAID Monitoring shall include regular site visits.

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8. Use of GDAs as Implementation Mechanisms. Where GDAs may be used as implementation mechanisms for any ATB activity and this activity has received a negative determination with conditions in this IEE:

a. ATB shall assure that applicable conditions of this IEE are applied to all USAID-funded and pool-funded activities. This shall include writing these conditions into the GDA agreement, and into in all contracts, grants, cooperative agreements and collaborative agreements whereby USAID-funded and pool-funded activities are implemented.

b. ATB shall undertake, document, and fully take into account the results of the due diligence investigation required for prospective GDAs. (See the ENCAP GDA Factsheet:

http://www.encapafrica.org/meo_resources/Cadmus%20GDA_factsheet_19Dec06final%20draft.doc.)

9. New or modified activities. As part of its initial Work Plan, and all Annual Work Plans thereafter, IPs, in collaboration with their C/AOR, shall review all planned and on-going activities to determine if they are within the scope of this IEE.

If any IP activities are planned that would be outside the scope of this IEE, an amendment to this IEE addressing these activities shall be prepared for USAID review and approval. No such new activities shall be undertaken prior to formal approval of this amendment.

Any ongoing activities found to be outside the scope of the approved Regulation 216 environmental documentation shall be halted until an amendment to the documentation is submitted and written approval is received from USAID. This includes activities that were previously within the scope of the IEE, but were substantively modified in such a way that they move outside the scope.

10. Compliance with Host Country Requirements. Nothing in this IEE substitutes for or supersedes IP, subgrantee and subcontractor responsibility for compliance with all applicable host country laws and regulations. The IP, subgrantees and subcontractor must comply with host country environmental regulations unless otherwise directed in writing by USAID. However, in case of conflict between host country and USAID regulations, the latter shall govern.

11. Government to Government (G2G) assistance. Where activities are carried out via direct funding of governmental partners and this is not noted in the IEE activity description, ATB will nonetheless assure, via negotiated implementation arrangements with the governmental partner and, potentially, complementary environmental monitoring and management support activities, that the conditions established by this IEE will be generally met.

In some cases, responsibility for appropriate environmental management of the activity may be appropriately assigned in the entirety to the governmental partner and/or host country environmental assessment and management authorities. Required considerations regarding degree of reliance on partner government entities for appropriate environmental management are (1) the environmental assessment and management capacity of these partners, and (2) the relative risk posed by the activities in question.

In each case, ATB will document in writing the proposed environmental compliance approach/arrangements for the activities in question and the justification for these arrangements, and obtain REA approval prior to implementation.

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APPROVAL OF ENVIRONMENTAL ACTION RECOMMENDED:

Activity Title: Mozambique Agriculture, Trade and Business (ATB) Umbrella IEE

Functional Objective: 4. Economic Growth Program Areas: 4.5 Agriculture

4.6 Private Sector Competitiveness

4.8 Environment

Program Elements: 4.5.1 Agriculture Enabling Environment

4.5.2 Agriculture Sector Capacity

4.6.1 Business Enabling Environment

4.8.1 Natural Resources and Biodiversity

4.8.2 Clean Productive Environment

CLEARANCE:

(Acting) Mission Director: Date:

Polly Dunford

CONCURRENCE:

AFR Bureau Environmental Officer: Date:

Brian Hirsch

Approved:

Disapproved

FILE Nº: Mozambique_AgricTradeBus_ATB_2012_2017_IEE.doc

Copy: USAID Environmental Compliance Database, http://gemini.info.usaid.gov/egat/envcomp/index.

ADDITIONAL CLEARANCES:

Mission Environmental Officer: Date:

Jason Katz

Acting ATB Team Leader: Date:

Michael Jordan

Acting Regional Environmental Advisor: cleared after edits addressed Date: 8/01/2012 USAID/Southern Africa Walter Knausenberger (USAID/AFR/SD)

Acting Deputy Mission Director: ____________________ Date:

Rick Burns

Distribution List:

USAID/Mozambique ATB A/COR and Activity Managers USAID/Mozambique Office of Acquisitions and Assistance USAID/Mozambique Program Office

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INITIAL ENVIRONMENTAL EXAMINATION

PROGRAM/ACTIVITY DATA:

Program/Activity Name: Agriculture, Trade and Business (ATB) Portfolio

Country/Region: Mozambique/Southern Africa

Functional Objective: Economic Growth

Program Areas: 4.5 Agriculture

4.6 Private Sector Competitiveness

4.8 Environment

Program Elements: 4.5.1 Agriculture Enabling Environment

4.5.2 Agriculture Sector Capacity

4.6.1 Business Enabling Environment

4.8.1 Natural Resources and Biodiversity

4.8.2 Clean Productive Environment

1.0 Background and Program Description

1.1PURPOSE AND SCOPE OF IEE

This IEE addresses all three program areas within the Foreign Assistance Framework relevant to USAID/Mozambique Agriculture, Trade and Business (ATB) Office including: 4.5, Agriculture; 4.6, Private Sector Competitiveness; and 4.8, Environment, through an Assistance Agreement with the Government of Mozambique. The IEE evaluates proposed activities included in the new Coastal City Adaptation program, in the Biodiversity and Tourism program, and in the Feed the Future Agriculture and Nutrition program. It supplements the existing ATB portfolio IEE issued in September 2010.

This IEE will apply to new ATB procurements after the effective date noted on the facesheet and supersedes any pre-existing Reg. 216 documentation, with the exception of the 2009 ATB PERSUAP

For purposes of analysis, this IEE synthesizes anticipated ATB activities under the office’s various projects and programs into a set of eight intervention categories, each of which contains a number of activities. As with all IEEs and in accordance with 22 CFR 216, it reviews the reasonably foreseeable effects of each activity on the environment.

On this basis, this IEE recommends Threshold Decisions and, in some cases, attendant conditions, for these activities.

In addition, this IEE sets out project-level implementation procedures intended to assure that conditions in this IEE are translated into project-specific mitigation measures, and to assure systematic compliance with this IEE during project and program implementation. These procedures are themselves a general condition of approval for the IEE, and their implementation is therefore mandatory.

To develop this IEE, Cadmus (GEMS) reviewed the concept papers and logical framework matrices on the three programs, the Coastal City Adaptation program, the Biodiversity and Tourism program, and the Feed the Future program Other project documents for current and proposed activities, including the Feed the Future Core Program Mozambique Strategy (FY2011-2015) were also examined.

This IEE is a critical element of a mandatory environmental review and compliance process meant to achieve environmentally-sound activity design and implementation.

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1.2 ATB OFFICE & PROGRAM BACKGROUND

ATB Office: The ATB office was created in August 2008 with the merging of two Strategic Objective teams, SO6 and SO7. The ATB office now addresses all activities of these two teams, including two Presidential Initiatives, Global Climate Change (GCC) and Feed the Future, as well as the African Growth and Competitiveness Initiative (AGCI)), the Partnership for Trade Facilitation and Title II programs. Funding for the ATB office is heavily earmarked with limited prospects for discretionary funding.

AO & Program Activity Areas: The Economic Growth Assistance Objective (AO) is “Improved Competitiveness of Key Economic Sectors.”

Mozambique is endowed with extensive fertile land, abundant water resources, favorable climate, unique cultural and ecological assets, relatively low-cost labor, and proximity to major markets. Mozambique’s comparative advantages in value-added agriculture (including forestry) and tourism offer excellent potential for private investment, job creation, and broad-based sustainable economic growth that is required to significantly reduce food insecurity, malnutrition, and poverty.

Yet, Mozambique remains the fifth poorest country in the world. Over 76% of the population derives their living from agriculture, which contributes only 24% of Gross Domestic Product (GDP) with 12% of arable land under cultivation.

Currently, tourism provides only 1.8% of GDP compared to 9.7% of GDP in Tanzania, 7.6% in South Africa, and 32% in Mauritius. The difficult business environment in Mozambique hinders foreign investment and the establishment of small and medium-sized enterprises, which are essential for country’s development.

The ATB Office aims to support broad-based economic growth in key areas targeted by USAID’s programs by increasing the productivity and profitability of agriculture, promoting green growth in tourism, forestry and renewable energy, and addressing issues of economic governance including policy related to business climate and human capacity issues.

In undertaking activities to increase productivity in agriculture, strengthen agribusinesses, and strengthen natural resource-based enterprises, ATB will employ a value chain approach driven by market demand. Wherever possible, it will leverage investments by the parties involved in the value chains, which will lead to long-term sustainable economic growth.

The anticipated size of the program is about $200 million over 2012-2017; it is nationwide in scope.

This new USAID/Mozambique strategy and approach are the culmination of extended consultations with Ministry officials, other donors, and current USAID partners. Decisions on the new directions envisioned in the AO reflect careful analysis of a wide variety of program evaluations and studies.

This USAID/Mozambique strategy will be implemented, in part, through partnerships with the private sector, municipalities and local government agencies.

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1.3 PROGRAM GEOGRAPHIC FOCUS

The new ATB activities will be geographically focused on areas with the highest potential for programmatic impact as noted below:

Coastal City Adaptation Program: The cities identified for partnerships include Pemba, Quelimane, and possibly Vilankulos and Maputo.

Biodiversity and Tourism Program: The program will focus efforts on the Lake Niassa Reserve, Gorongosa

National Park, Pemba and other priority biodiversity areas in Mozambique.

Feed the Future (FTF) Program: The Mozambique FTF strategy focuses on the Beira and Nacala trade corridors (Nampula, Zambezia and Manica provinces for agriculture; Nampula and Zambezia provinces for nutrition).

Sustainability is enhanced by building the capacity of Mozambique’s governmental institutions, civil society, and private sector to design, implement, and evaluate economic growth programs. These identified regions have benefited from previous USAID investments and offer synergies with other Mission portfolio activities.

1.4 DESCRIPTION OF PROGRAMS AND INDICATIVE ACTIVITIES

The elements of the ATB portfolio included in this IEE consist of the projects listed in the table below. The projects are summarized below, and indicative activities listed. These project descriptions and indicative activities form the basis for the general ATB activities listed in section 1.5.

Program Components LOP funding Start Date End Date

Coastal City Adaptation Program (CCAP) $16 million 12/01/2012 12/01/2017

Biodiversity and Tourism (BIOTOUR) Program $14.5 million 10/30/2012 5/30/2017

US Global Food Security Presidential Initiative “Feed the Future” (FTF) $93.5 million FY 12 FY 15

1.4.1 Coastal City Adaptation Program

The goal of USAID Mozambique’s new five-year coastal city adaptation program is to increase climate resiliency in select coastal cities. Direct beneficiaries include municipal and government authorities, local communities, civic organizations, and academic institutions.

The program will have three interrelated objectives:

Improve the provision of climate-resilient urban services;

Increase public demand for climate resilience measures; and Increase access to insurance and other risk management tools for vulnerable urban infrastructure and livelihoods.

The primary expected outcomes of the project include:

Increased understanding of climate change impacts in targeted municipalities and the transfer of capacities necessary for putting adaptation principles and analysis into action.

Adaptation pilot activities at the municipal and community levels that demonstrably strengthen adaptive capacity and climate readiness.

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Improved ability of partner municipalities to compete for adaptation resources available from other donors and the private sector, including those that could support implementation activities beyond the scope of the resources available for this effort.

Urban adaptation programming is new to USAID’s portfolio and therefore there are few guidelines and experiences to draw from. As a result, a critical component of the project will be to gather and disseminate lessons learned that can be applied by other coastal cities and leveraged for future USAID urban adaptation efforts.

Illustrative activities to improve the provision of climate-resilient urban services include:

Providing funding for adaptation advisors to work directly with city authorities responsible for implementing adaptation measures for the duration of the project. Access to technical experts will provide city authorities with much needed guidance on planning and implementing adaptive measures while simultaneously providing USAID with an additional and relatively impartial conduit to the municipalities.

Introducing an adaptation course (Adaptation 101) to train city authorities on climate change. The training would aim to enhance awareness of vulnerabilities, potential physical impacts and damage costs, emergency response strategies, and adaptation measures (including risk reduction and risk transfer options).

Providing incentives and targeted resources for municipalities to implement adaptation pilot programs.

Potential pilots would include changes in residential zoning, integrated coastal zone management activities, and rehabilitating natural coastal defenses, among others.

Illustrative activities to increase public demand for climate resilience measures include:

Supporting INGC’s initiative to introduce a Climate Change Knowledge Center that addresses climate change topics and adaptation measures. Through the center, adaptation training would be made available to community organizations, university students, and the private sector. One important benefit of the trainings is to focus municipal advocacy efforts by supporting community organizations to identify ways to engage directly with the municipality.

Investing in the education and professional development of a select group of talented students, professors, and city managers to participate in international conferences, workshops and certification courses that focus on climate change and adaptation. As part of their scholarship agreements, students could be required to complete an internship with the municipality as a means of providing work experience for the student while simultaneously providing the municipalities with much needed expertise and staff time.

Providing competitively-awarded grants to public and private universities in partner municipalities to introduce climate change and adaptation topics into their curriculum, and encourage students to do research work on adaptation measures, and possibly independent impact evaluations.

Working with vulnerable communities to identify and prioritize several adaptation projects which could be presented to the municipality for review. The most promising projects would be financed by small grants, either from the primary implementer or direct from USAID.

Illustrative activities to increase access to insurance and other risk management tools for vulnerable urban infrastructure and livelihoods include:

Providing financial management training for city managers to enable them to prepare realistic adaptation strategies. The training could also include advising city managers on how to make budget allocation decisions given a range of disaster risk management options like insurance, contingency funds, and catastrophe bonds, etc.

Extending awareness of individual insurance for residential and commercial properties/businesses that are vulnerable to climate shocks. This could include building capacity of local insurance companies to design and offer policies against weather risks as well as establishing linkages between local insurance providers and global re-insurance providers essential to spreading risk and keeping costs reasonable.

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Providing technical support to the GOM at the national level on how to evaluate risk management options and factor them into budgets and other planning mechanisms. The support could also help the GOM develop plans that enable it to target the use of payouts at the poorest and most vulnerable when disasters hit. The GOM could also be encouraged to purchase international risk insurance/catastrophe bonds (World Bank MultiCat, reinsurance), and USAID could also help support the establishment of a contingency capital/disaster fund, thus saving the agency and the GOM millions of dollars in the long run and increasing certainty in budget planning.

1.4.2 Biodiversity and Tourism Program

The biodiversity and tourism program’s main objective is to strengthen Mozambique’s biodiversity-based tourism sector.

The program will have two interrelated objectives:

Improve the capacity of domestic institutions to execute biodiversity conservation; and Expand biodiversity-based economic enterprises.

This project will be executed through several inter-related and reinforcing activities. Project interventions will provide direct support to GOM and independent Mozambican entities to strengthen their core functions while bolstering their ability to fulfill their mandate related to improved conservation outcomes. The activities of local partners will be complemented by expert assistance to assist them in meeting technical and administrative expectations of USAID. This project will prioritize local capacity development (LCD) throughout the implementation to ensure sustainability of outcomes after USAID support ends.

Each of these local entities is discussed below with illustrative interventions and results.

BIOFUND: The Foundation for the Conservation of Biodiversity (BIOFUND) is a private not-for-profit entity with legal and financial autonomy, and the right to own and manage its assets. Its mission is to support the conservation of aquatic and terrestrial biodiversity and the sustainable use of natural resources, including the consolidation of the national system of conservation areas.

Bilateral and multilateral donor funding is currently the largest source of support for Mozambique’s conservation areas (about US$22 million projected as of 2010). Public sources of finance are limited, with US$1.3 million in tourism revenues and negligible amounts of direct government budget support in 2008. The BIOFUND will diversify financing sources so the protected area network can reduce dependence on government budget allocations and external donor support, and manage risks in the event of unforeseen events or market downturns leading to a decline in tourism-based revenues. The BIOFUND will make grants based on the conservation priorities of the country.

USAID funding has been instrumental in the establishment of the Lake Niassa Reserve, but US support will not be sufficient to pay the new reserve’s management expenses and rehabilitation costs (estimated to be over $1 million a year).

ATB recommends providing funds to the BIOFUND to finance the Lake Niassa core management expenses over the next few years while additional funding from donors can be solicited and revenue can be developed. The funding of core expenses will build on USAID’s current site-based conservation priority, strengthen the BIOFUND’s experience and initiate the transition to local financing of the Lake Niassa Reserve.

Anticipated Results:

Lake Niassa Reserve professionally managed, based on sound organizational and scientific principles;

Lake Niassa Reserve management received financial support through GOM budgets, local fee collection and one additional source within 5-years (private donor, payment for ecosystem services, carbon credits…etc.);

BIOFUND effectively executed a small and specific grant to the Lake Niassa reserve.

ANAC: The Government of Mozambique has created a national public institution with responsibility to ensure proper management of conservation areas and wildlife (ANAC) to implement the component of the Conservation Policy linked to conservation areas and wildlife. To accomplish its mandate, ANAC will need to define the scientific agenda for

USAID Mozambique ATB IEE 31 July 2012 | Page 12/53 improving conservation in Mozambique. Through implementation of this scientific agenda, ANAC will provide a valuable service to the conservation community that will strengthen conservation outcomes throughout the country and improve tourism assets.

ATB recommends providing support to ANAC for the articulation and development of a coherent research strategy and agenda that will attract talent and investment into scientific research in Mozambique. This support complements a related objective to increase SAVE (Scientific, Academic, Voluntary and Educational) travel in Mozambique, build local capacity to receive SAVE tourists and to launch a SAVE development strategy within the national scientific, research, academic, and conservation communities. ATB also anticipates supporting ANAC in the detailed revisions to its business plan and financial projections models as input to strengthening ANAC’s revenue generation and management capabilities. DOI will provide regular technical input over the course of ANAC’s first several years of operation to improve these systems, maximize all potential revenues, and build the capacity within ANAC to meet their financial needs.

Anticipated Results:

Guidelines for science-based adaptive conservation management developed for Mozambique protected area management;

Research agenda defined to address scientific deficiencies in support of conservation priorities in Mozambique;

Partnerships established with local and international universities and organizations to finance and execute scientific studies around conservation priorities;

Competitive grants program established to finance the most promising and valuable research related to

Mozambique’s conservation priorities;

All protected area management plans updated to reflect science-based decision-making and defining local research needs;

Strengthened management of protected areas in support of improved tourism products; and, An increased percentage of operating expenses raised by ANAC from conservation and tourism-related revenue sources.

Gorongosa Restoration Project: This project aims to return the Gorongosa National Park, Mount Gorongosa, and the greater Gorongosa ecosystem to their former glory as major tourist attractions. At the same time it aims to develop financially sustainable operations for the park. USAID has been supporting the park and ecosystem restoration effort since 2007 in partnership with the Carr Foundation. Because there has been significant progress over the past 5 years, ATB recommends continuing this support to ensure priorities remain on course. These prioritized activities include community engagement, environmental education, park management and scientific services, conservation agriculture in the buffer zone, and reforestation of Mount Gorongosa.

Anticipated Results:

Reduction in the prevalence of uncontrolled fires in the park and buffer zone;

Improved capacity of community representation bodies to participate in natural resources co-management;

Mozambican scientists and local community members trained at the Community Education Center;

Increased numbers of wildlife, numbers of tourists, numbers of jobs for locals and revenue for park operations from tourism;

An end to deforestation and accelerated reforestation of degraded lands on Mt. Gorongosa;

Adoption of locally adapted conservation farming methods in the buffer zone.

Conservation and Tourism Contractor: Building the scientific capacity for conservation in Mozambique and strengthening the use of conservation assets through tourism are the mutually reinforcing goals of this project. Every effort is being made to implement this project through Mozambican organizations who will remain responsible for conservation planning and the outcomes over the long term. However, these organizations are at an early stage of their development and will require substantial technical, analytical and administrative support to accomplish what is proposed.

ATB recommends supporting a contractor to provide this technical and administrative support to all local partners over

USAID Mozambique ATB IEE 31 July 2012 | Page 13/53 the entire implementation period. In addition, the proposed contractor will implement complementary activities that will further strengthen conservation, tourism, tourism-related SMEs, natural resource management, access to clean energy, new public-private partnerships, high-impact niche marketing campaigns (SAVE), linkages with the private sector and access to financing for tourism related businesses (through an existing DCA).

Anticipated Results:

Provide technical, administrative and analytical support to ANAC, BIOFUND, and the Gorongosa Restoration Project on project implementation (work planning, monitoring, reporting), Clean energy applications, linkages with the private sector and access to finance;

Public-private partnerships established for conservation and related tourism;

SAVE strategy developed within the national scientific, research, academic, and conservation communities of

Mozambique;

Strengthen the branding/marketing capabilities of segments within the tourism sector as well as the targeting of marketing campaigns for high-potential international (i.e. Brazil, UK, Germany, Netherlands, Australia), and niche markets (e.g. SAVE, SCUBA, Kite-Surfing, Dive Safari);

Strengthen existing SME incubator and business development services (BDS) programs to focus on the conservation tourism value chain;

Value chain for clean energy developed and technicians trained;

Improve access to finance for conservation tourism-related SMEs.

Natural resources and conservation research strategy developed with ANAC;

Stronger links between universities, institutes and government established.

1.4.3 Feed the Future Program

The objective of Feed the Future program (FTF/Mozambique) is to increase equitable growth in the agriculture sector and to improve the nutritional status of Mozambicans in focus provinces. The FTF strategy harnesses the private sector’s dynamism to provide smallholders with support across the value chain – for inputs, finance, training, markets, and policy reform. The integration of nutrition activities will be based on P.L. 480, Title II experience in Mozambique, which has shown that improved agricultural production and incomes alone will not have an impact on nutritional status.

A set of comprehensive nutrition activities will be integrated with agricultural activities with a particular emphasis on improving access to nutritious foods, nutrition-related behaviors and health services.

In addition to the future projects/activities described below, other, on-going activities are executed to support the FTF objectives. Such current activities are NOT covered by this IEE.

Illustrative activities to support agricultural growth include:

Conservation Agriculture: Given the vulnerability of Mozambique’s agricultural systems to climate change (unreliable rainfall and droughts), the Conservation Agriculture project aims to improve the productivity and incomes of smallholder farmers by promoting drought tolerant crop varieties, improving soil fertility and increasing moisture retention. The project builds upon USAID research/technology transfer and food security programs to generate and disseminate improved seed varieties and sustainable farming management practices. Up-scaling Mozambique’s promising conservation agriculture technologies will contribute to their wider adoption. The end results of the project are: (1) the increased use of high yield/drought tolerant maize and legume varieties; (2) the introduction of legumes through crop rotation (contributing to soil nitrogen fixation and a diversified/nutritious household diet); (3) increased crop productivity and access to agricultural input and output markets; and, (4) increased resiliency of smallholder production systems to climate change.

Agribusiness Value Chains: USG/Mozambique will invest in private-sector change agents (commercial and emerging farmers, processors, nurseries) and farmer associations/cooperatives to stimulate improved income opportunities for

USAID Mozambique ATB IEE 31 July 2012 | Page 14/53 smallholders and to increase the availability of nutritious foods. The value-chain orientation of this program area directly aligns with that of the GOM’s national agriculture development strategy, PEDSA. This activity, the follow-on to AgriFUTURO, aims to increase Mozambique’s private sector competitiveness by developing highly competitive agriculture value chains. It focuses on four main areas of intervention: (1) the improvement of the agribusiness enabling environment; (2) the provision of business development services for agricultural enterprises and cooperatives; (3) the development of linkages between agribusiness enterprises/cooperatives and financial institutions; and, (4) the creation of public and private partnerships to mobilize additional resources, transfer technologies, and develop markets. The interventions will be executed in Nampula, Zambezia and Manica provinces. The activity will support four main value chains: (1) oilseeds (sesame, peanuts and soybeans), (2) fruits (bananas, mangoes and pineapples), (3) pulses (beans, cowpeas and pigeon peas) and (4) cashew nuts. The expected results will be increased private investment in agribusiness, increased exports to regional and international markets, increased purchases from smallholder farmers; and increased job creation.

Illustrative activities to support improved nutrition include:

Nutrition Policy: Support will be provided to the Ministry of Health and the Ministry of Agriculture to further policy in three key areas: (1) the strengthening of national policy and roll out of facility and community-based growth monitoring and promotion; (2) the development of social and behavior change communication strategies, policies and tools for Ministry of Health and partners; and, (3) the collaboration and coordination with Ministry of Health and other stakeholders (i.e. other donors, government partners, implementing partners) to operationalize the Multi-Sectoral Action Plan to Reduce Chronic Under nutrition across the country. The expected end results are: (1) the development and adaptation of approaches to support the design and implementation of FTF/GHI programs in Mozambique by FANTA III;

(2) the strengthening of capacities to implement quality programming; and, (3) the strengthening and promotion of standards for nutrition and health programming to improve nutrition.

Nutrition Challenge Fund: USAID will stimulate the supply of nutritious, diverse, and quality foods through the Nutrition Challenge Fund. The fund will manage competitive grants to encourage innovations in agro-processing (e.g.

fortification, food processing) to improve nutrition for a large share of the vulnerable population. The grants will be awarded to local small- or medium-sized enterprises. The criteria for these grants will include, at a minimum: (1) the viability of the proposed business plans; (2) the types of foods processed and produced; (3) the markets targeted, and, (4) access to capital. It is also expected that the applicants must demonstrate an ability to cost-share. The grants will provide seed capital for investment and technical assistance to ensure initiation and/or expansion of successful business ventures in nutritious food processing. It is expected that the increased availability of nutritious foods, the increased rural incomes, and the increased access to more affordable, nutritious products, will have a long-term impact on nutritional outcomes.

Community Nutrition: The community-based nutrition program includes Growth Monitoring and Promotion (GMP), and Social Behavior Change and Communications interventions which target children under the age of 5 years and pregnant and lactating women. These interventions present essential nutrition actions and key household hygiene actions.

This program provides an effective entry point to preventive and curative health care and is an integral part of other programs that are associated with significant reductions in under-nutrition. The nutrition comprehensive approach provides frequent contact with health workers. It also creates a conduit to child health interventions, thereby contributing directly to Primary Health Care, and complementing government efforts to implement the Multi-Sectoral Action Plan to Reduce Chronic Under-nutrition.

Illustrative activities to support both agricultural growth and improved nutrition include:

Agriculture and Food Security Policy and Planning: This project supports the development and implementation of Mozambique’s CAADP/PEDSA Country Investment Plan (CIP). It will help establish a performance-based Monitoring and Evaluation system for the CIP and FTF. The intervention will also support policy relevant research and outreach (i.e., grains marketing policy, inputs policy, assessments of technology packages, linkages between agriculture and nutrition). It

USAID Mozambique ATB IEE 31 July 2012 | Page 15/53 will build capacity of the agriculture/food security policy network (across ministries and potential new policy center at the University of Eduardo Mondlane). In addition, the project will: (1) enhance the capacity of the Ministry of Agriculture and National Agricultural Research Institute to perform policy analysis, investment planning, and sector monitoring; (2) conduct socio-economic studies related to technology development/transfer; and, (3) support agricultural market development. The program will also identify data, informational, and programmatic gaps to link nutrition interventions more fully into Mozambique’s agricultural development agenda.

Agribusiness and Food Security Partnerships (GDA): Partnerships in this program will be forged with the Mozambican and international private sector and with foundations to leverage funding and increase access to technologies, business skills, and markets. The partnerships will support agricultural growth and improve nutritional status for women and children. The criteria for the selection of partners will include geographic and crop focus, innovation, resources mobilized, beneficiaries and impact. The partnerships may: (1) increase the agricultural productivity of smallholders; (2) reduce post-harvest crop losses; (3) support value added processing; (4) build the capacity and competitiveness of agricultural cooperatives and agribusinesses; (5) empower women entrepreneurs; (6) strengthen markets; (7) support nutritional awareness and behavior change; and, (8) build the resiliency of agricultural systems to climate change. The program results will include adoption of more productive agriculture practices, improved market linkages, more competitive agribusinesses and agricultural cooperatives, and improved nutrition for target populations.

ICT 4 Development: The program will improve the use of promising Information Communication Technologies (ICT) applications (i.e., cell phones, videos, radio) to achieve greater impact during agriculture, nutrition and business development projects. USAID will conduct market research to determine the demand of ICTs from projects and the supply of related tools and services within Mozambique and elsewhere. The program will provide business approaches to project teams to take advantage of ICT tools or services. USAID will facilitate the roll-out of commercial mobile money services for agriculture and support mobile money for one or more government payment streams. The program will hold workshops on various approaches to innovative uses of radio, SMS messaging, mobile voice applications and low-cost video to enhance project success. The interventions will also facilitate learning site visits or video/teleconferences. These site visits or conferences will allow projects to assess the usefulness of ICT tools or services being used in Mozambique and elsewhere. The program will also assess ICT-enabled approaches to enhance agriculture extension, market information, and nutrition education.

Agriculture and Nutrition Graduate Degree Training: Mozambique has a limited number of agricultural policy analysts, research scientists, nutritionists, and agribusiness professionals with a graduate level education. This lack of training restricts the effectiveness of the Government in advancing agricultural growth, improving nutrition and developing the private sector.