Integrated Safeguards Data Sheet (Updated)

Report No: ACl63Section I - Basic InformationDate ISDS Prepared/Updated: 07/23/2003A. Basic Project Data ('from PDS)I.A. I. Project StatisticsCountry: SOUTH AFRICA Project ID: P064438Proj ect: THE GREATER ADDO ELEPHANT Task Team Leader: Christopher James WarnerNATIONAL PARK PROJECTAuthorized to Appraise Date: August 8, 2002 IBRD Amount ($m):Bank Approval: November 25, 2003 IDA Amount ($m):

Global Supplemental Amount ($m): 5.50Managing Unit: AFTS I Sector: General agriculture, fishing and forestryLending Instrument: Specific Investment Loan (SIL) sector (100%)Status: GEF $5,5 million Theme: Environmental policies and institutions (P);

Biodiversity (P); Other environ-ment and naturalresources management (S)

I.A.2. Project Objectives (From PDS):The project 's development objective is to establish a megabiodiversity conservation area aroundthe existing Addo Elephant National Park (AENP) where ecosystem degradation and loss ofnatural resources is now beginning to impact on biodiversity. The project will support innovativeconservation and development models involving landowners, communities and the private sectorin National Park operations. The project will help avert further loss of terrestrial and marinebiodiversity, and improve local livelihoods through an integrated and replicable managementapproach.

Global environmental objective. The global environmental objective of the project is to conservea significant representation of five of the country's seven terrestrial biomes and one of thecountry's three marine provinces, including globally important biodiversity, through enhancedprotected area and ecosystem management in a single National Park. The project will addressthreats and root causes of biodiversity degradation across a wide range of landscapes, andterrestrial and aquatic systems.

Background to the project area and proiect

The project is located in the Eastern Cape Province, situated along the eastern seaboard of SouthAfrica. The province is the second largest in South Africa and comprises 24% of the surface areaof the country. The province is situated in a climatic transition zone with rainfall ranging from250 mm in lowland areas to 900 mm per annum on high mountain peaks. The relief is varied andcomprises coastal dunes, river valleys, mountains and a plateau. The undulating terrain meansthat only 4% of the surface area is used for agriculture, mainly grazing. Agricultural lands aregenerally of lower productivity classes.

The province has a population of 6.7 million people out of a national total of 40 million and isexperiencing high annual population growth. The province lags behind most other parts of the

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country in terms of socioeconomic development, with average Gross Domestic Product (GDP)per capita at 50% of the national figure. Approximately 57% of all households live in poverty.The Eastern Cape's economic base is less diverse than in other provinces and is centered aroundagriculture, manufacturing and industry, although tourism is becoming a more important sector inmany rural areas. While traditional agriculture is in decline, ecotourism is growing and can offera productive land-use alternative. Secondary industry is focused around motor vehiclemanufacturing, largely around the maini commercial centers of Port Elizabeth, Uitenhague andEast London. The proposed Coega Harbor development east of Port Elizabeth is expected toenhance economic expansion in this area, through container traffic and a possible aluminiumsmelter.

The Eastern Cape Provincial governimenit has had to amalgamate former so-called homelandsincluding the Ciskei and Transkei, together with administrations from South Africa. This hasproven to be a difficult task and provincial and local governments are generally regarded as weakin terms of staff numbers and technical capacities.

South Africa is considered a megadiversity country (CI) primarily due to its floristic variationand high levels of endemism. South Africa's plant diversity is estimated at over 23,000 species,representing at least 9% of the global total. Two of the world's 25 threatened biodiversityhotspots are found within the country's boundaries. These include the Succulent Karoo Biomeand the Cape Floral KIingdom, portions of which are found within the project area. The projectarea also contains the so-called Albany center of plant endemism, which is located in the Thicketbiome. This biome, which is confined to South Africa, has some of the highest levels ofendemism globally per km. Terrestrial biodiversity is under threat from land uses such asagriculture, which is causing land degradation, but also from the loss of key species in theecosystem including major herbivores and carnivores. It is for these reasons that two other GEFactivities are focused on the region. The Thicket Biome Project will develop a bioregional planfor the greater area, while the Conservation Farming Project will develop broad land-use models,and research how farmers can chanige from traditional (and environmentally degrading)agricultural practices to those of lower impact and higher economic value. This land-use changeis particularly important as a buffer on the ecdges of areas requiring protective management. In themarine environment, bounded by the proposed Marine Protected Area, over 11,000 species havebeen found, of which 3,500 are endemic. Algoa Bay contains 10% of South Africa's populationof humpback dolphins. Two island groups within Algoa Bay (Bird islands and St. Croix group)are of great historical and conservation value. Over-harvesting of marine resources is a key causeof biodiversity loss.

The Addo Elephant National Park (AENP) was established in 1931 and currently coversapproximately 157,000 ha. It is a main tourism attraction in the province, attracting 120,000visitors in 2002 (50% foreign). Tourism only impacts on 11 percent of the Park area at present.Incomes from ecotourism are significant; studies in 1995 estimated total revenues from tourismin AENP were between US$83 and US$110 million. At a micro-level, total gross income/hafrom ecotourism can be as much as four times higher than for pastoralism. A strong case can alsobe made that the environmental impacts from ecotourism are considerably less than agriculture inthe area, especially farming that is based on high chemical inputs. The Eastern Cape's 800 km of

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coastline supports a small fishilng industry based on squid, sardines, hake, kingklip and crayfish.Mariculture ventures produce abalone and oysters for export, mainly to the Far East. hi the AlgoaBay project area, the dune coast provides high tourism potential for beach activities, boating,whale and shark watching, recreational fishilng, and diving.

The aim of the project is to increase the area under conservation within the current AENP, intothe Greater Addo Elephant National Park (GAENP), including terrestrial and marine ecosystems.Over six years, the project will seek to protect the area of globally significant biodiversitythrough land acquisition under new forms of partnerships with private land owners. Only a verysmall percentage of land in the project area falls under communal land tenure. An estimated27,000 people live in the broader project planning domain (including towns), however thepopulation density around the Park and proposed area of expansion is very low. It is estimatedthat approximately 545 people, mainly farm workers and their families, could be affected byinitial Park expansion in years I and 2. In years 3-6, another 2,723 people could be impacted byexpansion. These figures however, reflect the worst-case scenario with all prospective landsbeing purchased by SANParks and simply added to the Park without new economicdevelopment. hi terms of the RPF and the RAP's SANPark's has identified d 6 options for farmworkers. These 6 options include workers being fully incorporated into SANPark's employment,workers on existing land being employed by the farmer on a farmer's new farm, workers beingprovided with land under the Land Reform Grant (under consideration) to workers beingprovided with employnment through the SANPark's- Poverty Relief program. Every attempt willbe made by SANParks to incorporate workers in the Poverty Relief Program into longer termlivelihoods once the Poverty Relief Program has ended.

It is within this context that the South African Government has identified this project as one of itskey deliverable initiatives in the Eastern Cape and requested World Bank and GEF assistance.The overall investment in this project will be approximately US$39.6 million with approximatelyUS$5.5 million coming from GEF, US$6,5 million from private sector and the remainderprimarily from government and the South African National Parks (SANParks). This provides anexcellent leveraging ratio for GEF funds of 1:6.3.

T.A.3. Project Description (From PDS):Project VisionThe project has identified five inter-related components to protect the exceptional terrestrial andmarine biodiversity of the Addo region through strategic conservation planning andimplementation, innovative land incorporation and development planning, and social capacitybuilding. Over the six years of the project, the total Park area will likely increase to cover about237,000 ha of terrestrial (Table 1) and 100,000 ha of marine habitat. During the project, themajority of land acquisition will be through new contractual arrangements and gradually reducethe ratio of purchased/contractual land form 87/13 to 72/28.

Table 1. Land acquisition planned under the GAENPTime Frame Purchased Land Contractual Land Total Land (ha) Purchased/Contr-ac

(ha) (ha) tualPresent time 136,859 20,085 156,944 87/13

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End of project 170,337 66,3371 236,674 72/28Increment from 33,478 46,252 79,730 42/58project

The current AENP is a mosaic of landscapes, which are not completely contiguous. Thelong-term vision is that of a Park with a single fenced area for wildlife, but significantly largerthan at present. The project will achieve this vision by consolidating existing park areas throughhighly strategic land acquisition, focusing on priority parcels identified using a range of criteria,but in particular, potential conservation values. Given the need to address broader goals ofgreater public participation, expanded tourism development with private-public partnerships, andincreased social development in the region, a cautious and phased approach is warranted. Parkexpansion is planned over five phases (see Figure 1). Each phase would focus on a specificblock of the Park, and include boundary expansion, fencing, wildlife management, tourismdevelopment and social development. Wheni all five phases are completed, many of the fencesseparating each of the five blocks will be removed, thus consolidating one single large Park withexpanded wildlife range and well-developed tourism products. A marine protected area of100,000 would be added in Algoa Bay to complete the vision of a contiguous Park spanningseveral terrestrial and marine ecosystems.

Figure 1.

Addo Elephant National Park:Expansi n ofthe gam area

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0 5 1020 Kiome ersX :! , I,, 10 wf^_5 " ~

Present Reservo Stages

j Category Two Parks 7] Existing AreaMajor Roais F One

F71 Twon)flree

7 FourFiva

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COMPONENT 1: CONSER VA TION PLANNINGThis is concerned wit/h the planinii,g and mnonitoringfranteworkfor the long-termnconservationz of the uinique assemblage of biodiversity in the region and the arrest ofenvironmental degradation.

This component builds on the conservation planning exercise largely undertaken during thepreparation phase of the project and forms the biological basis for the implementation phase. Thepreparatory studies focused on the systematic conservation planning exercise, freshwaterconservation, proposed marine protected area (MPA), and ecological monitoring of the marineenvironment.The five sub-components each largely deal with park planning and will form partof the overall Integrated Environmnental Manageme'nt System (IEMS).

i) Conservation Plan:This sub-component will update the terrestrial, aquatic, marine, and cultural databases producedduring preparation, and subsequent studies, and amend the drafted conservation plan as requiredto help conservation science better direct conservation management. Selected research projectswill be identified and commissioned, monitored and evaluated under this component as part ofthe ongoing maintenance of the Conservation Plan. Issues concerning zonation, surroundingland-use, contractual incorporation and business arrangements will be further negotiated, withaction plans prepared for implementation.

ii) Strategic (Development) Plan:Based primarily on the above information, a costed and phased strategic development plan willbe produced to guide the Park for the next six years. It will indicate the preferred developmentzones (as part of the Zonation Plan), relhabilitation areas, as well as infrastructure (roads, fences,buildings, visitor facilities) within the Park. ln addition, it will address the redefinition of anupgraded SANParks management structure for the Park, plus the development of are-introduction plan for key game species.

iii) Park Management Plan:A Park Management Plan (procedures and policies) will be drafted as part of the TEMS tofacilitate more effective and efficient daily management. It will include clear and measurabledeliverables, which will be monitored and reported on a monthly basis.

iv) Monitoring System and Research:Key baseline information is needed, for example in the biophysical and socioeconomicenvironments to monitor the internial and external impact of the development of the Park, andother management actions on the community, economy and environment. To acquire baselineinformation from teirestrial and marinie areas, the biophysical and socioeconomic elements thatneed to be monitored will first be identified and approved, then data will be collected based onsound scientific protocols and best-practice. The project Business Plan for year 1, set out in theProject Implementation Plan (PIP), has already identified a number of result indicators wherebymonitoring and evaluation for the social objectives can take place.

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v) Marine Protected Area (MPA):To facilitate the proclamation of the Addo Marine Protected Area (MPA), a marine planningframework will be developed through consultationis with all relevant stakeholders. Animplementation plan will then be prepared once all required negotiations have been conductedand approvals obtained. Legal studies will be undertaken to address potential conflicts betweencurrent terrestrial and marine conservation legislation. A social assessment will be undertaken toevaluate the impact of the MPA on current users as part of the marine planning framework.

GEF: $0,345 million Co-financing: $0,553 million Total: $0,898 million

COMPONENT 2: IMPLEMENTA TIONThle implemnentationt of'tl/e developnment plan including ecological mzanagelmzent,

infrastructure and land incorporation, and socioeconomic capacity building.

Implementation will occur in three different management scenarios: I) SANParks land ownedand managed by SANParks, 2) concessioned areas within SANParks land and 3) contractual landadjoining the Park where SANParks may or may not manage the land. The threesub-components will roll out of the development plan, inclusive of ecological management,infrastructure development and land incorporation, to ensure effective implementation of thedevelopment plan.

i) SANParks/Park Environmental Infrastructure Provision:This sub-component focuses oni the implementation of the development plan. Developmentwithin identified zones will follow a plan, and investments will include all fixed infrastructure(roads, fences, water provision, conservation center, heritage sites, waste management systems,alien control, EMP and rehabilitation plans).

ii) Land Incorporation:Land will be incorporated into the Park depending upon: its relative value with respect toenhancing ecological integrity and biological representativeness and biodiversity; improvinglocal socioeconomic conditions and minimizing costs of acquisition (including resettlement); andthe potential to reduce threats to biological integrity. Options for land acquisition include directpurchasing, contractual arrangements, management agreements, buffer arrangements, andexpropriation. A prioritization matrix for the incorporation option has been developed forSANParks. The Conservation Plan developed in the preparatory phase helped define the strategicincorporation zones but will need constant refinement as new information and assessmenttechniques are developed (see Componenit 1).

iii) Incentive Contracting Partnerships:Incentives will be offered to induce land owners to convert high priority areas to away frommarginal agriculture to conservation, according to the relative value of the land for biodiversityconservation. Incentives coLild include legal recognition, traversing rights, management inputs,extension services, fencing support, tax exemptions and consumption of game.

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GEF: $2,945 million Co-Financing: $21,420 million Total: 24,365 million

COMPONENT 3: INSTITUTION & GOVERNANCE STRUCTURESThe development of in stitiutioiis anl governanlce structures to ensure the successfulimplementationt of tihe Addio pr9ioect antd managenment of thte park.

This component includes the design, implementation and maintenance of management systemsand structures to enhance park management and strengthening/creating institutional structures foreffective, participatory Parlc planning and program implementation.

i) Integrated Environmental Management System (IEMS):An IEMS based on 1SO14000 will be developed to enhance Park environmental and generalmanagement. Technology and expertise developed in the GEF-financed Cape Peninsula NationalPark project will be used in developing the Addo [EMS. The EEMS will include the developmentof corporate policies and park specific policies, the strategic development plan, procedures,monitoring indicators, review and auditilng procedures. Environmental management plans thatare prepared for packages of capital investments in GAENP will contribute to detailing theEEMS.

ii) GAENP Management Structures:Based on the developmental plan and the extent to which concessions will be introduced, a newGAENP management structure will be developed and approved by SANParks forimplementation for the day-to-day management of the expanded Park. The existing Park SteeringCommittee (PSC) will be reviewed and restructured in line with SANParks strategy for overallgovernance of the GAENP. The PSC's prime fuinction would be to provide high level oversightfunction for the park, project and the Project Management Unit (PMU), to ensure compliancewith the project's goals and GEF grant funlding agreement. It is envisaged that as the parkmanagement plan development is initiated, the Addo Planning Forum (APF) will be adapted andtransformed to form a dedicated Park Committee (PC). This activity will follow the procedureaccepted by the SANParks Board in 1999.

iii) Project Management Unit (PMU):An outsourced PMU consisting of project management, procurement, and administrativeftinctions will be appointed to execute the project on a daily basis. The unit will work closelywith GAENP staff but under supervision of the PSC, and particularly that of the GAENPCoordinator. Financial management will be provided through SANParks staff and systems.

iv) Park Business Plan:A business plan will be prepared, which models the financial requirements of the Park includingincome and expenditure, and which provides a basis for adjusting to the roll out of theDevelopment Plan from the PIP. Initially, a year-one business plan will be drafted with financialbudgets, followed by a full plan, utilizing consultants under PMU and PSC guidance. The fullbusiness plan will take into consideration the deliverables of the PIP inclusive of detailed action

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plans, responsibilities, measurables and financials. The business plan will be reviewed annuallyas the project is implemented.

v) Management Information and Reporting System (MIRS):An electronic hardware and software system will be designed and implemented to manage the[EMS. The MIRS will be database driven, producing reports in conformance with therequirements of the governance stiuLctures of the project, plus the management of the GAENP. AGIS officer will be appointed by SANParks to oversee the necessary databases and generate therequired reports in consultation with the PMU. The design and implementation of the MIRS willbe coordinated by the PMU, utilizing services of suitable providers.

vi) Training Programs:Training programs will help staff apply the previous new systems and technologies, and build aclearer understanding of policies and operational procedures contained in the IEMS. A trainingneeds analysis for new and existing staff will identify required training to implement with thenew requirements posed by monitoring systems, environmental and cultural management,business and financial management, socio-ecology, communication and public information, andHIV-AIDS awareness. Training needs will be matched with suitable activity-related courses, andstaff enrolled accordingly. Staff will be monitored on completion of training to ensureconformance with new systems and usefulniess of training programs. Training for non-SANParkstaff will be addressed in Component 4.

GEF: $1,620 million Co-Financing: $2,097 million Total: $3,717 million

COMPONENT 4: COMMUNITY DEVELOPMENT & SOCIAL ECOLOGYThe park should benefit comminiunities through enabling nianaged access to naturalresources, access to emilployment, micro enterprise opportunities, training anden vironmnental education.

This component will support implementation of the Park development plan where it relates toemployment and economic benefits tlhrough communal conservation strategies, Small, Mediumand Micro Enterprise (SMME) opportLnities, envirounmental education and fair resettlement ofdisplaced communities and individuals. This component will forge the benefits of sustainablenatural resource use with social upliftment, particularly of previously disadvantaged sectors ofsociety.

i) Access to Natural and Cultural Resources:Although a preliminary survey was completed during project preparation, the project will financefurther research to better understand the scope and importance of important cultural sites andresources within the Park boundaries. In addition, a policy guiding managed access to theseresources, in compliance with SANParks policies, will be developed and implemented for thepark. This would also meet the requirements of the Bank's safeguards for cultural resources(OPN 11.03 and OP 4.1 1).

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ii) Access to employment:Members of local communities, and in particular displaced people, will be given priority for newjobs created through the project directly and through expanded ecotourism development. Inaddition, these individuals will be offered training opportunities to help them benefit from newemployment opportunities in the Park. As part of this process, a database and suitable policyframework are needed. The SANParks national policy on Social Ecology will be modified to suitthe GAENP project in relation to meetinig Bank safeguard requirements on involuntaryresettlement. Available employment data/databases will be acquired from local government foranalysis to match with GAENP employment opportunities. The Resettlement Policy Frameworkand Resettlement Action Plans (RAPs) will provide useful baseline information aboutindividuals affected by farm conversion that can feed into employment programs.Gaps in thedatabase, such as skills analysis, will be identified and corrected.

iii) Employment and Economic Benefits Based on Communal Conservation Strategies:Employment opportunities for local people will identified in ecotourism, small works supportingthe roll-out of park infrastructure, and sustainable harvesting. Analyses will be also undertaken toidentify SMME development opportunities within GAENP in areas such as fencing, arts andcrafts, charcoal production, ecotourism, alien clearing, rehabilitation, construction, andsustainable harvesting. SMMEs will be assisted by gaining access to all available nationalSMME incentive schemes. Research will be done to identify what goods and services toGAENP may be sourced from SMMEs. Training of SMME staff members will be an importantsection of this component with a needs analysis having to be undertaken, with trainingundertaken in identified gap areas. Such training will be coordinated where possible with thatidentified in Component 3. Some employment opportunities will be through Working for Waterand Poverty Relief programs funded by the South African government.

iv) Conservation Education:An environmental education (EE) program will be designed and implemented. As part of theprogram, a sustainable and cost-effective education program and conservation center will beestablished to support community and visitor awareness about the Park. A limited number oftertiary scholarships (possibly two per annium) will be provided to train a cadre of new officialsfrom the community to enter SANParlcs at a professional level and advance in the organization.Relevant tertiary education courses will be identified and then a recruitment process will bepursued to select suitable candidates for evaluation and enrolment. To ensure effective operationof the Conservation Education Center, a number of Conservation Education Officers will berecruited.

v) Resettlement Compensation (Resettlement):Although the project's social objective is to ensure that the greater Addo community largelybenefits from the project, SANParlcs will make funds available and source opportunities inassociated projects (Work for Water, and Poverty Relief and Land Reform Grant) to ensure thatany local people negatively affected by the project are fairly compensated. Site-specific criteriafor compensation, developed during project preparation as part of the Resettlement PolicyFramework and Resettlement Action Plans (RAPS) will be implemented in conjunction with

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other- govemment and local government authorities responsible for restitution issues. In addition,SANPark's recognizes that the Poverty Relief and Working for Water Programs should beregarded as a transition to longer term more sustainable livelihoods. It will therefore endeavor tomeet requirements in this regard.

GEF: $0,180 million Co-Financing: $3,321 million Total: $3,501 million

COMPONENT 5: ECONOMIC DEVELOPMENTStiomulatinig overall economiiic developmzent in tlhe region by creating an enablingenvironm ent for tourism an td associated econoomic activity.

This component will focus on enhlancing the conditions for broader economic development in theregion, largely through the tourism sector and the National Park. Mainstreaming the projectobjectives and achievements will be a priority to sustain the considerable support the project hasreceived from central government, local communities and donors.

i) Marketing and Product Development:A marketing plan will be prepared for the Park, inclusive of existing Addo market researchinformation pltus an MIRS module to record relevant tourism statistics. The marketing plan willinclude a communication strategy, new product development, and identify prospectiveecotourism products emanating fromi GAENP. These identified products will be packaged on anestablished web site, along with all other relevant information associated with the project (seewww.addoelephantpark.co.za). A communications/marketing officer will be recruited as part ofthe new GAENP management structure.

ii) Concessioning and Partnership:The SANParks concessioning plan will be implemented to attract private sector investment inecotourism facilities in the Park. Part of this sub-component includes the development of termsof reference, identification of contractual partners, and creating a MIRS module to feed into thewider IEMS-MIRS.

GEF: $0,400 million Co-Financing: $6,729 million Total: $7,129 million

I.A.4. Project Location: (Geographic location, information about the key environmental and socialcharacteristics of the area and population likely to be affected, and proximity to any protected areas, or sitesor critical natural habitats, or any other culturally or socially sensitive areas.)

The Addo Elephant National Park (AENP) is located in the Eastern Province, 70 km from thecity of Port Elizabeth on the eastern seaboard of South Africa. The current National Parkcomprises approximately 157,000 ha and expansion by another 79 000 ha of land plus 100 000ha of marine protected area is proposed. The park is home to over 350 elephants as well asendangered species such as the black rhino. The area proposed for incorporation into the parkcontains 6 out of 7 of South Africa's pant biomes. The proposal will include fynbos as well as

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the Nama Karoo vegetation and thicket biome. The fynbos biome is regarded internationally asbiodiversity hotspot and the thicket biome, like fynbos, is confined to the boundaries of SouthAfrica. The proposal will make a significant contribution to protecting savanna, grassland, forestand thicket biomes which are currently under protected in South Africa.

The proposal is to create a Marine Protected Area (MPA) to include important offshore islandswhich contain endangered species including the jackass penguin. The proposed marine reservewill bring over 95 % of the primary production of Algoa Bay area under marine protection andwill provide protection for over 86 % of South Africa's endemic invertebrate marine species. Itwill from ecosystem perspective create an important link between the marine and terrestrialcomponents. It will also be South Africa's largest marine reserve and the 100,000 ha area willmake an important contribution to reachinlg a proposed national target to bring 20% of thecoastline into MPA's.

The project area also contains a wealth of rock art which will be conserved by the proposal.

The Eastern Cape is the poorest Province in South Africa and the economy has been laggingbehind the rest of the country. The Province contains 16% of the population and contributes 7%Y0to GDP. It has the highest unemployment rate at 48% of population versus national average of34%.

Tourism numbers to the park have been growing at steady 8% per annum with over half thetourists being foreigners. The 140 bed facilities run at 67% to 97% occupancy. In 1995 the75,000 visitors to the Park were estimated to inject $32 million into the national and provincialeconomy. The current annual Park budget is approximately $1 million.

In the actual project area the main land use outside of the Addo Elephant National Park isagriculture. All land is privately owned and pastoralism predominates. Higher value dairy andchicory farming takes place to the south east and for various reasons is proposed to be excludedfrom the proposed park. Preparatory studies have shown that the Province is culTentlyexperiencing a conversion fri-om low intensity commercial agricultuLre to game ranching andhunting. Over 400 farms have converted as grazing uses have become less viable andeco-tourism related uses have increased. A combination of SANParks records, and surveysindicate very low population in the area with an increase in the size of farms being accompaniedby an exodus of farm workers and managers. It would appear that densities are in the vicinity ofone laborer per 1,300 ha. Wages average no more than $24 per month. Livelihoods earned fiomfarming provide an extremely meager living.

B. Clheck Environmental Classification: B (Partial Assessment)

Comments: A limited environmental and social assessment has been undertaken and will becompleted prior to appraisal to meet Bank requirements. The EA is being termed a strategicenvironmental assessment as both an environimental assessment and strategic instrument wasneeded.

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C. Safegtuard Policies Trig,;ered (firomi PDS)(click on Q for a detailed desciption or click on the policy number for a brief description)

Policy TriggeredEnvironmental Assessment (OP 4.01, BP 4.01, GP 4.01) Yes ( No

Natural Habitats (OP 4.04, 1P 4.04, GI' 4.04) )Yes * No

Forestry (OP 4.36, GP 4.36) Yes * NoPest Maniagement (OP 4.09) Yes No

Cultural Plroperty (OPN 11.03) *Yes( )No

Indigenious Peoples (OD 4.20) ( ) Yes * No

lnvolumitary Resettlement (OP/BP 4.12) Yes( ) No

Safety of Dams (OP 4.37, BP 4.37) I Yes *No

Projects in International Waters (OP 7.50, BP 7.50, GP 7.50) ( ) Yes * No

Projects in Disputed Areas (OP 7.60, BP 7.60, GP 7.60)* )Yes * No

Section 1I - Key Safeguard Issues and Their ManagementD. Sumnmary of KeJy Safeguard Issues. Pleasefill in all r elevant questions. Ifinformationi is not available.describe steps to be taken to obtain necessasy data.

Il.D. I a. Describe any safeguard issues and impacts associated with the proposed project. Identify anddescribe any potential large scale, significant and/or irreversible impacts.

An independent EA was commissioned as part of project preparation in January 2002 to meetOP/BP/GP 4.01 requirements. The semi-final EA was presented to the general public in May2002 and final comments were included in the SEA. The TOR's required the consultants to (1)assess the findings of the separately produced specialist reports on the biological, social,economic and institutional components of the project in terms of relevant South Africanlegislation and Bank policy, (2) take cognizance of the South African integrated environmentalmanagement (IEM) procedure which require full public consultation, (3) make recommendationsand costings in term of mitigating impacts. The SEA has been circulated to ASPEN team forapproval.

The interim finding is that the project will have a highly beneficial impact on the marine, aquaticand terrestrial environment. No adverse environmental issues have been found which requirespecial mitigation. The SEA specifies an environmental assessment and management frameworkthat subjects packages of capital investments in the park to South Africa and World Bank EArequirements prior to approval.

The social component of the project has always been regarded as the most complex componentsince the proposal will (1) result in change in land use and livelihoods and therefore triggerOP/BP.4.12. (2) the public increasingly expect to be consulted on any significant projects. Aspart of the EA process two specialist reports have been commissioned. The first undertook adetailed survey of a selection of farms which might fall within the proposed boundaries of thepark in order to (I) determine the levels of farm occupancy, (2) income levels, (3) means ofincome, (4) indication of assets, (5) education levels, (6) employment, (7) family size and

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structure etc. The second study scoped the parameters of a resettlement policy framework (RPF)based on1 the concept of a large park but with the boundaries not finalized. Finally, RAP's havebeen produced for the affected farms. The RPF and RAP's have been approved by ASPEN.

The quantum of potential inhlabitanits impacted by the triggering of OP4. 12/BP 4.12 is expectedto be in the order of 570 to 3300. SANParks records relating to the last series of farms purchasedindicate that the levels of vacancy are extremely low i.e. I worker per 1,300 ha. The approachbeing taken to farm incorporation whether by long lease agreement or purchase is that: (1) parlcboundaries should be and are planned to exclude high value land and areas where there are higheroccupancy levels, (2) unless a farmer wishes to sell his or her property the proffered. SANParksincorporation option will be via partnership agreements with the landowners, (3) the park optionshould enhance socio economic standards in the region and farm workers from incorporated andadjoining farms will be given preference in employment and SMME opportunities as they arise.

Cultural Property safeguards, OP4. 1 is triggered due to the presence of fossils and importantrock art in the area. Whilst the project is likely to have a beneficial impact by creating a land usewhich is highly compatible with the conservationi thereof; the project will be pro-active in thisrespect. The SANParks is undertakinig a cultural resources inventoly of the cultural property inthe area. They have produced basic management guidelines for the treatment thereof that havebeen included in the SEA.

ll.D. lb. Describe any potential cumulative impacts due to application of more than one safeguard policy ordue to multiple project component.No impacts expected to be identified

Il.D. Ic Describe any potential long term impacts due to anticipated future activities in the project area.

Positive long term impacts on the environment and socio economic conditions in the region areexpected.

ll.D.2. In light of 1, describe the proposed treatment of alternatives (if required)

The alternative would be to mainitain the status quo. ie declining agricultural and ecosystems management inthe area with gradual reduction in employmenit in the area. Alternative development scenarios will beconsidered in preparing the St-ategic (Development) Plan (Component 1) and in plarning subsequentpark infrastructure and use.

II.D.3. Describe arrangement for the borrower to address safeguard issuesWith regard to environmental assessment (OP4.01, BP 4.01, GP 4.01), the project was ratedenvironmental Category B. A strategic environmental assessment was carried out, whichincluded local stakeholder participation. The assessment and record of public consultations wassubmitted to the Infoshop before appraisal. All developments in the Park will be subject tonational EA processes and to meet Bank requirements. The process for doing this is spelt out inAlnexure 4 to the SEA.

With regard to cultural property (OP 4.11), the project meets Bank requirements through anumber of measures. These include adherence to the National Heritage Resources Act (1999),

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development by SANParks of a strategic framework for the conservation of cultural resources,and a cultural resource managemeiit policy. A preliminary inventory and mapping of culturalsites is being completed as part of project preparation. This will form the basis for furtherassessment and guide the development of suitable measures for cultural site management,compatible with Bank policy. Field staff will receive basic training in cultural resourcemanagement and a specialist staff member will be appointed to manage the data base and overseepolicy compliance.

With regard to involuntary resettlement (OP/BP 4.12). Due to the fact that some farm workerswill fall within the scope of the resettlement definition, a Resettlement Policy Framework hasbeen completed and RAPs have been produced prior to appraisal for fanms anticipated to beincorporated into the GAENP in years one and two. The community development component ofthe project and a SANParks budgetaiy provision including Poverty Relief Programs, will setaside sufficient financial resources to cover the resettlement requirements for the lifespan of thisproject. Employment creation thlrough the project and with private sector tourism development isexpected to absorb most displaced workers who wish to remain in the area and continue working.Salaries paid by these alternative employment options are significantly higher than in pastoralagriculture. The Bank is responsible for assessing and, either rejecting (and suggestingmodifications) or approving the RAPs. histitutional and monitoring arrangements forimplementation are documented in the RPF

II.D.4. Identify the key stalceholders and describe the mechanisms for consultation and disclosure onsafeguard policies, with ain emiplhasis oin potentially affected people.

Stakeholders will be able to participate at different levels. There is the Addo Planning Forum, tobe transformed into a Park Committee which will form the main body for consultation on overallimplementation. A resettlement working group (RWG) is being formed to overseeimplementation of the RAP's.

The SEA has been planned with and disclosed to over 234 interested and affected parties. Thisprocess was largely completed in May 2002 with copies of the report provided to all parties. Thepublic process was advertised, meetings held and disclosed in the press and on the GAENPweb-site. The SEA identifies that sub-projects will require South African and Bank EA approval.The main affected stakeholders in terms of EA requirements will be land owners and occupants.South African EA requirements have been identified as meeting Bank requirements regardingpublic consultation and disclosure. ln order to meet South African EA requirements, a publicparticipation plan has to be prepared and approved by the Provincial EA authority. The publicprocess must actively involve all interested and affected parties including the poor and providethem with adequate input into the EA process as well as the opportunity to provide coniments on1the draft EA report before submission. Draft reports are also made available in public places forcomment.

It is not foreseen that the Banlc will need to approve any further studies to comply with OP 4.1 1as South African requirements are sufficiently clear and the project will have a beneficial impacton cultural resource management. It is anticipated that the entry point for ensuring compliance toBank requirements and South Africain cultural heritage legislation will be through the EA process

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In temis of resettlement, the main affected parties are farm workers on farms and to lesser extentland owners who would be fully compensated through loss of property and livelihoods throughsale of property. Due to the relatively small numbers of inhabitants falling within the ambit ofresettlement, lost communities will not be significantly affected. Detailed consultations havebeen held with affected communities to develop the RPF and the RAP's. Hard copies of the nearfinal documents ( very minor editorial changes subsequently made) have also been workshoppedand provided to the affected parties (July 7tlh to July 18th). This method will continue to bepracticed with formal institutional arrrangements being put in place for the resettlement process.This will include the proposed Resettlement Working Group on which inter alia affected partieswill be represented. Future RAP's, including the independent monitoring thereof will also beprovided to the proposed Park Committee which will include community representatives.

Once agreement has been reached on each fLiture RAP by the interested and affected parties,SANParks will forward the RAP's to the Bank for approval.

E. Safeguards Classification (veleci in SAP). Category is determined by the highest impact in any policy.Or on basis of cumulative imipacts from multiple safeguards. Whenever an individual safeguard policy istriggered the provisions of that policy apply.

SI. - Significant, cumulative and/or irreversible impacts; or significant technical and institutional risksin management of one or more safeguard areas

[X] S2. - One or more safeguard policies are trigger-ed, but effects are limited in their impact and aretechnically and institLtionially manageable

S3. - No safeguard issuesSF. - Financial intenrediary projects, social development funds, community driven development or

similar projects which require a safeguard framework or programmatic approach to addresssafeguard issues.

F. Disclosure Requirements

Environmental Assessm7ent/Alnalysts/Managenment Plan: Expected ActualDate of receipt by the Bank 7/31/2002 7/17/2003Date of "in-country" disclosure 8/7/2002 2/28/2003Date of submission to InfoShop 8/7/2002 7/21/2003Date of distributing the Exec. Summary of the EA to the Executive Not Applicable Not ApplicableDirectors (For category A projects)

Resettlement Action Plan/Fraulneiwork: Expected ActualDate of receipt by the Bank 7/31/2002 7/17/2003Date of "in-country" disclosure 8/7/2002 7/7/2003Date of submission to InfoShop 8/7/2002 7/21/2003

Indigenous Peoples Developmient Plan/Framework: Expected Actual

Date of receipt by the Banlc Not Applicable Not ApplicableDate of "in-country" disclosure Not Applicable Not ApplicableDate of submission to InfoShop Not Applicable Not Applicable

Pest Managenment Plan. Expected Actual

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Date of receipt by the Bank Not Applicable Not ApplicableDate of "in-country" disclosure Not Applicable Not ApplicableDate of submission to InfoShop Not Applicable Not Applicable

Dam Saqeiy Mcmnagentetit Plan. Expected ActualDate of receipt by the Bank Not Applicable Not ApplicableDate of "in-country" disclosure Not Applicable Not ApplicableDate of submission to InfoShop Not Applicable Not Applicable

If in-country disclosure of any of the above documents is not expected, please explain why.

Sif!ned and submitted bv Name DateTask Team Leader: Christopher James Warner 07/18/2003Project Safeguards Specialists 1: Dan R. Aronson 07/18/2003Project Safeguards Specialists 2: Johln Boyle 07/18/2003Project Safeguards Specialists 3:

Approved bv: Name DateRegional Safeguards Coordinator: Serigne Omar Fye 07/18/2003

Sector Manager/Director Richard Scobey 07/18/2003