United Nations Environment Programme

Transcription

1 UNITED NATIONS United Nations Environment Programme Distr. LIMITED EP UNEP(DEPI)/CAR WG.37/INF.14 7 October 2016 Original: ENGLISH Third Meeting of the Scientific, Technical and Advisory Committee (STAC) to the Protocol concerning Pollution from Land based Sources and Activities in the Wider Caribbean. Miami, Florida, USA, 31 st October to 2 nd November 2016 PROJECT IMPLEMENTATION FORM (DRAFT) UPSCALING AND ENHANCING THE EXPERIENCE OF THE CARIBBEAN REGIONAL FUND FOR WASTEWATER MANAGEMENT TO THE WIDER CARIBBEAN PROMOTING THROUGH AN INTEGRATED APPROACH OF INNOVATIVE TECHNICAL SOLUTIONS AND FINANCING MECHANISMS (CREW+) For reasons of economy and the environment, Delegates are kindly requested to bring their copies of the Working and Information documents to the Meeting, and not to request additional copies. *This document has been reproduced without formal editing.

2 For reasons of economy and the environment, Delegates are kindly requested to bring their copies of the Working and Information documents to the Meeting, and not to request additional copies. *This document has been reproduced without formal editing.

3 GEF-6 PROJECT IDENTIFICATION FORM (PIF) PROJECT TYPE: FULL-SIZED PROJECT TYPE OF TRUST FUND: GEF TRUST FUND For more information about GEF, visit TheGEF.org PART I: PROJECT INFORMATION Project Title: CReW+: Upscaling and enhancing the experience of the Caribbean Regional Fund for Wastewater Management to the wider Caribbean promoting an integrated approach of innovative technical solutions and financing mechanisms Country(ies): Barbados, Belize, Colombia, Costa Rica, Cuba, Dominican Republic, Grenada, Guatemala, GEF Project ID: 1 Guyana, Honduras, Jamaica, Mexico, Panama, Saint Kitts and Nevis, Saint Lucia, St. Vincent and the Grenadines, Suriname, Trinidad and Tobago GEF Agency(ies): IADB, UNEP GEF Agency Project ID: GEF ID: 9601 IADB:DF-RG-G1011 UNEP: Other Executing Partner(s): UNEP CAR/RCU, National Pilot Executing Submission Date: July 25, 2016 Agencies GEF Focal Area(s): International Waters; Chemical and Waste; Land Degradation Project Duration (Months) 60 Integrated Approach Pilot IAP-Cities IAP-Commodities IAP-Food Security Corporate Program: SGP Name of parent program: [if applicable] Agency e ($) 4,147,632 A. INDICATIVE FOCAL AREA STRATEGY FRAMEWORK AND OTHER PROGRAM STRATEGIES 2 (in $) Objectives/Programs (Focal Areas, Integrated Approach Pilot, Trust Corporate Programs) GEF Project Co-financing Fund Financing IW-2 Program 4 GEFTF $6,782,416 $41,633,843 IW-3 Program 5 GEFTF $16,315,583 $99,727,525 IW-3 Program 6 GEFTF $8,150,839 $47,806,205 CW-2 Program 6 GEFTF $14,478,162 $93,369,481 LD-1 Program 1 GEFTF $197,978 $1,523,081 LD-1 Program 2 GEFTF $159,820 $1,229,525 Total Project Cost $46,084,798 $286,873,075 1 Project ID number will be assigned by GEFSEC and to be entered by Agency in subsequent document submissions. 2 When completing Table A, refer to the excerpts on GEF 6 Results Frameworks for GETF, LDCF and SCCF. GEF-6 DRAFT PIF CReW+-July

4 Financing Type 3 B. INDICATIVE PROJECT DESCRIPTION SUMMARY Project Objective: Upscaling and enhancing the experience of the Caribbean Regional Fund for Wastewater Management to the wider Caribbean promoting an integrated approach of innovative technical solutions and financing mechanisms (in $) Project Components Project Outcomes Project Outputs Trust Fund GEF Project Financing Co-financing Component 1 Reforming institutional, policy, legislative and regulatory frameworks for Integrated Water and Wastewater Management. Sustainable Development Goals Goal 1 - Target 4 Goal 2 - Target 4 Goal 3 - Target 9 Goal 6 - Target 2,3, 5,6,a,b, Goal 12 - Target 4,5 Goal 13 - Target b Goal 14 - Target 1,5 Goal 15 - Target 5 Implementing agencies UNEP: $3,412,000 IDB: $1,450,000 TA Outcome 1.1 Consolidated, improved and reformed institutional, policy and legislative frameworks for Integrated Water and Wastewater Management including management of Chemicals and Waste in at least 11 countries. Outcome 1.2 Enhanced regional and national coordination and information exchange and science based decisions resulting from the use of the platform/database for Integrated Water and Wastewater Management including Chemicals and Waste by national and regional institutions in at least 6 countries. Output National development strategies and plans incorporating multisectorial approaches to Integrated Water and Wastewater Management and Chemicals and Waste in wastewater. Output New or updated national/regional platform/database for Integrated Water and Wastewater Management, including Chemicals and Waste and impacts on the coastal and marine environment developed in at least 12 participating countries. Output Training provided to selected persons and agencies to drive national and regional reforms for Integrated Water and Wastewater Management including Chemicals and Waste, and for reporting GEFTF $4,862,000 IW: $3,412,000 CW:$1,450,000 $17,309,159 3 Financing type can be either investment or technical assistance. GEF-6 DRAFT PIF CReW+-July

5 Component 2 Developing sustainable and tailor made financing options for urban and rural Integrated Water and Wastewater Management. Sustainable Development Goals Goal 17 - Target 1,7,8 Implementing agencies UNEP: $0 IDB: $5,490,000 TA Outcome 2.1, Enhanced stakeholder understanding of different financing mechanisms and options applicable at small scale, rural, local community and national levels for informed decision and sustainable waste water management in 18 countries. Outcome 2.2 Improvedd readiness for wastewater management financing, as evidenced by implementation of a practical and replicable sustainable financing mechanism for Integrated Water and Wastewater Management at small-scale local, community and national levels in at least 10 countries. TA Outcome 2.3 Understanding and implementation of business models and improved capacity to design and manage sustainable financing mechanisms at small scale, rural, local community, and national levels in at least 10 countries.. on relevant SDGs and MEAs; at least 230 people trained. Output Customized documentation and recommendations regarding existing financing mechanisms for Integrated Water and Wastewater Management at local, national and regional levels, provided to 18 countries. Output At least 12 countries with the appropriate structure to operate a financing mechanism at small, local, community or national level, depending upon country context and size. Output In at least 12 countries alternative funding options as well as financing action plans, and business models drafted to address sustainability of the upscaled or developed financing mechanisms. TA Output Training provided to selected persons and GEFTF $5,490,000 IW: $2,588,818 CW: $2,901,182 $26,195,906 GEF-6 DRAFT PIF CReW+-July

6 Component 3 Developing infrastructure linked to innovative financing mechanisms to address wastewater treatment, including tertiary level treatment, reuse and removal of Chemicals and Waste, in urban and rural settings. Sustainable Development Goals Goal 1 - Target 4 Goal 2 - Target 4 Goal 3 - Target 3,9 Goal 6 - Target 2,3,5,6,a,b Goal 7 - Target b Goal 12 - Target 4,5 Goal 14 - Target 1,5 Goal 15 - Target 5 Goal 17 - Target 17 Implementing agencies UNEP: $4,545,000 IDB: $22,062,798 Component 4. Implementing smallscale local, rural TA Outcome 3.1 Enhance technical knowledge for successful implementation and replication of proven solutions, for Integrated Water and Wastewater Management, in national/local institutions in 18 countries; including treated water reuse and chemical and waste treatment at small-scale, local, community and national levels. Outcome 3.2 Increased and improved wastewater treatment, of which a part is reused, linked to the development or upscaling of a financing mechanism. TA Outcome 4.1 Improved wastewater agencies in the design, establishment and management of the financial mechanisms in selected countries; aat least 170 people trained. Output country specific, customized sets of recommendations regarding on-site or location-specific treatment technical approaches for integrated water and wastewater solutions, treatment of Chemicals and Waste in wastewater effluent and sludge, including opportunities to maximize reuse opportunities. Output Design and implementation of integrated water and wastewater solutions linked to a new or upscaled financing mechanism, appropriate to local conditions in at least 12 participating countries. Output Training in operation and maintenance for wastewater facilities, procurement, tendering and contractual processes; and in Integrated Water and Wastewater Management; at least 95 people and 19 operators trained. Output Community/rural specific financing action plans and GEFTF $26,607,798 IW: $16,891,520 CW:$9,358,480 LD: $357,798 $4,887,500 IW: $4,887,500 $204,698,709 $17,900,000 GEF-6 DRAFT PIF CReW+-July

7 community-based solutions for Integrated Water and Wastewater Management NOT linked to financing mechanism Sustainable Development Goals Goal 1 - Target 4 Goal 2 - Target 4 Goal 3 - Target 3,9 Goal 6 - Target 2,3,5,6,b Goal 7 - Target b Goal 12 - Target 4,5 Goal 14 - Target 1,5 Goal 15 - Target 5 Goal 17 - Target 17 Implementing agencies UNEP: $4,887,500 IDB: $0 Component 5 Knowledge Management and Advocacy, including the importance of water and wastewater management, including Chemicals and Waste, to achieve the Sustainable Development Goals. treatment, including reuse,) in rural hotspots using low tech and Integrated Water and wastewater solutions. TA Outcome 5.1 Improved awareness and understanding of the importance of water and wastewater management, including reuse and Chemicals and Waste in 18 countries. business models drafted to address Integrated Water and Wastewater Management including reuse and chemicals in at least 10 sites. Output rural and community level Integrated and Innovative Water and Wastewater low tech solutions implemented at selected hotspots. Output Implementation of a communications strategy, including information products and training on wastewater and use of treated wastewater as a resource and the need to tackle Chemicals and Waste, for key target groups in 18 countries. GEFTF $1,927,000 IW: $1,927,000 $8,890,410 Sustainable Development Goals Goal 1 - Target 4 Goal 3 - Target 3,9,d Goal 5 - Target 5 Goal 6 - Target a Goal 12 - Target 6,8 Goal 13 - Target 3,b Goal 17 - Target 6,7,8,16,17 Implementing agencies UNEP: $1,927,000 IDB: $0 Outcome 5.2 Improved access to an information exchange Output Updated CReW clearinghouse mechanism on financial options, smalland large-scale technologies, policies and practices for wastewater, reducing chemicals in wastewater, and water and sludge reuse experiences. Output Documented best practices, lessons and experiences from Components 1, 2,3 and 4. GEF-6 DRAFT PIF CReW+-July

8 mechanism, including knowledge of experiences and lessons learnt in wastewater management, as well as improved information sharing capability with GEF and the wider, local and national communities amongst all participating countries. Output Development and implementation of information exchange mechanisms for the wider GEF portfolio and non-gef projects. Subtotal $43,774,298 $274,994,184 Project Management Cost (PMC) GEFTF $2,310,500 $11,878,891 Total Project Cost $46,084,798 $286,873,075 a) b) c) & d) These quantities are estimated and will be revisited during the development of the final project proposal For multi-trust fund projects, provide the total amount of PMC in Table B, and indicate the split of PMC among the different trust funds here: ( ) C. INDICATIVE SOURCES OF CO-FINANCING FOR THE PROJECT BY NAME AND BY TYPE, IF AVAILABLE Sources of Co-financing Name of Co-financier a); Type of Co-financing Amount ($) GEF Agency IDB b) Hard loan $270,935,200 GEF Agency IDB b) Grant $6,385,068 GEF Agency UNEP In-kind $7,860,807 Other - NGO CWWA In-kind $200,000 Private Sector CAWASA In-kind $100,000 Local Government US EPA In-kind $200,000 Inter-Regional Multilateral CARPHA In-kind $130,000 Agencies GEF Agency PAHO-WHO Grant $162,000 GEF Agency PAHO-WHO In-kind $900,000 SGP (Small Grant Program) Total Co-financing $286,873,075 a) UNEP and IDB are currently liaising with likely partners including the following: Donor agencies (CAF,USAID, GIZ); GEF Agencies (PAHO-WHO, FAO); National Governments; Development Banks (CDB); Non-Governmental Organizations (TNC, WOP,GWP-CA, GWP-C, RRASCA,WRI); Inter-Governmental Organizations (CARICOM, OECS,SICA CCAD); the Private Sector (Caribbean Tourism Organization (CTO), Central America Tourism and Hotel Investment Exchange, CH2M) Universities (Centro del Agua Monterrey, UTECH), Stockholm Conventions ( Panama, Mexico, Basel Convention Regional Centre for the Caribbean Region) in order to secure commitments from a sound group of partners and a fair level of Co-financing to support implementation of the project. a); b) D. INDICATIVE TRUST FUND RESOURCES REQUESTED BY AGENCY(IES), COUNTRY(IES) AND THE PROGRAMMING OF FUNDS GEF Trust Country/ Focal Area Program (in $) GEF-6 DRAFT PIF CReW+-July

9 Agency Fund Regional/ Global ming of Funds GEF Project Financing (a) Agency Fee (b) Total (c)=a+b IADB GEFTF Barbados Land Degradation $357,798 $32,202 $390,000 UNEP GEFTF All Participating Countries International Waters $15,545,000 $1,399,050 $16,944,050 IADB GEFTF All Participating Countries International Waters $15,694,838 $1,412,535 $17,107,373 IADB GEFTF All Participating Chemical and Waste Countries $14,487,162 $1,303,845 $15,791,007 Total GEF Resources $46,084,798 $4,147,632 $50,232,430 a) Refer to the Fee Policy for GEF Partner Agencies b) Included percentage contribution of each focal area to Project Management E. PROJECT PREPARATION GRANT (PPG) 4 Is Project Preparation Grant requested? Yes No If no, skip item E. PPG AMOUNT REQUESTED BY AGENCY(IES), TRUST FUND, COUNTRY(IES) AND THE PROGRAMMING OF FUNDS GEF Agency Project Preparation Grant amount requested: $275,229 PPG Agency Fee: $24,771 Trust Fund Country/ Regional/Global Focal Area Programming of Funds PPG (a) (in $) Agency Fee 5 (b) Total c = a + b UNEP GEFTF All Participating International Water Countries 93,490 8, ,903 IADB GEFTF All Participating International Water Countries 93,733 8, ,170 IADB GEFTF All Participating Chemical and Waste Countries 88,006 7,921 95,927 Total PPG Amount 275,229 24, ,000 F. PROJECT S TARGET CONTRIBUTIONS TO GLOBAL ENVIRONMENTAL BENEFITS 6 Provide the expected project targets as appropriate. Corporate Results Replenishment Targets Project Targets 1. Maintain globally significant biodiversity Improved management of landscapes and 10 million Hectares and the ecosystem goods and services that seascapes covering 300 million hectares it provides to society 2. Sustainable land management in 120 million hectares under sustainable land Hectares 5 4 PPG requested amount is determined by the size of the GEF Project Financing (PF) as follows: Up to $50k for PF up to$2m (for MSP); up to $100k for PF up to $3m; $150k for PF up to $6m; $200k for PF up to $10m; and $300k for PF above $10m. On an exceptional basis, PPG amount may differ upon detailed discussion and justification with the GEFSEC. PPG fee percentage follows the percentage of the Agency fee over the GEF Project Financing amount requested. 6 Provide those indicator values in this table to the extent applicable to your proposed project. Progress in programming against these targets for the projects per the Corporate Results Framework in the GEF-6 Programming Directions, will be aggregated and reported during mid-term and at the conclusion of the replenishment period. There is no need to complete this table for climate adaptation projects financed solely through LDCF and/or SCCF. GEF-6 DRAFT PIF CReW+-July

10 production systems (agriculture, rangelands, and forest landscapes) 3. Promotion of collective management of transboundary water systems and implementation of the full range of policy, legal, and institutional reforms and investments contributing to sustainable use and maintenance of ecosystem services 4. Support to transformational shifts towards a low-emission and resilient development path 5. Increase in phase-out, disposal and reduction of releases of POPs, ODS, mercury and other chemicals of global concern 6. Enhance capacity of countries to implement MEAs (multilateral environmental agreements) and mainstream into national and sub-national policy, planning financial and legal frameworks management Water-food-ecosystems security and conjunctive management of surface and groundwater in at least 10 freshwater basins; 20% of globally over-exploited fisheries (by volume) moved to more sustainable levels 750 million tons of CO 2e mitigated (include both direct and indirect) Disposal of 80,000 tons of POPs (PCB, obsolete pesticides) Reduction of 1000 tons of Mercury Phase-out of tons of ODP (HCFC) Development and sectoral planning frameworks integrate measurable targets drawn from the MEAs in at least 10 countries Functional environmental information systems are established to support decision-making in at least 10 countries Number freshwater basins of Percent of fisheries, by volume metric tons metric tons metric tons ODP tons Number of Countries: 18 Number of Countries: 9 GEF-6 DRAFT PIF CReW+-July

11 PART II: PROJECT JUSTIFICATION 1. PROJECT DESCRIPTION. I) Global environmental problems, root causes and barriers to be addressed a) Background The identification of untreated domestic wastewater as the number one point source of contamination to the marine environment of the Wider Caribbean Region (WCR) was a major factor leading to the development of the Protocol on the Control of Land Based Sources of Marine Pollution (LBS Protocol) of the Cartagena Convention. This was reinforced by the regional priority rankings of the Global Programme of Action for the Protection of the Marine Environment from Land-based Activities (GPA) categories, which showed sewage to be the first priority 7. Since the LBS Protocol was adopted in 1999 and entered into force in 2010, the situation has not changed much. To date it has been ratified by 12 countries in the WCR with several more countries still considering ratification. Between 1990 and 2015 the investment in water and sanitation in Latin- American and the Caribbean has been in the range of US$4,063 million 8, including the support of the GEF through multiple projects in the region. The situation still requires much attention however as it is estimated that about 86% of wastewater is still discharged into the sea untreated. 9 Throughout the Region, industries and municipalities discharge liquid wastes through the same sewers as domestic and commercial non-industrial waste, resulting in high levels of industrial chemicals and heavy metals including lead, mercury cadmium, and Persistent Organic Pollutants (POPs) in sewage. Globally two million tonnes per year of sewage, industrial and agricultural waste is discharged into the world s waterways every year 10. Waste pre-treatment before delivery to a wastewater treatment plant is often non-existent or inadequate and chemicals and other substances not removed by wastewater treatment processes are discharged via the treated effluent into receiving streams, rivers, or coastal outlets. In the WCR as little data on such discharges exists. Industrial chemicals and heavy metals are of particular concern as activities which generate them continue to increase in many countries. The countries of the WCR are now more aware of the issue of poor wastewater management and its consequences and the need to address this. The GEF-funded Caribbean Regional Fund for Wastewater Management (CReW) Project has underlined the need for systematic, integrated solutions and access to sustainable financing if the situation is to improve. Of growing concern are the negative effects of pesticides in the marine and coastal environments as they cause changes in reef community structure, such as decreases in live coral cover and increases in algae and sponges and damage to seagrass beds and other aquatic vegetation from herbicides. UNEP noted that POPs ranked second in the Wider Caribbean Region priority rankings of the GPA contaminant categories 11, they may however not be a priority for the smaller SIDS with limited industrial development 12. According to a regional report covering over 23 countries in Central America and the Caribbean, it is reported that there is a lack of data and monitoring capacity for Persistent Toxic Substances (PTSs) 13. This is further confirmed by Fernandez et al (2007), who confirmed the limited availability of data in the Wider Caribbean Region. Smaller and rural communities in particular do not have access to affordable financing for wastewater infrastructure improvements. According to the Joint Monitoring Program of UNICEF and the World Health Organization (2008) the 7 GESAMP IDB 2015 (Conclusion from the 2015 world water week) 9 UNEP/GPA, 2006, The State of the Marine Environment: Trends and Processes, The Hague. 10 UNEP/UN-HABITAT (Sick water? The central rol of wastewater management in sustainable development) 11 GESAMP UNEP/GPA 2006b 13 (UNEP 2002) GEF-6 DRAFT PIF CReW+-July

12 percentage of people in the region who have access to improved sanitation facilities has risen from 68% in 1990, 77% in 2004 to 79% in According to 2004 calculations, of those 77%, 51% of the houses were connected to a sewer and 26% of the population had access to septic tanks and various types of latrines. Today as many as 51.5 % of households in the Region lack sewer connections and only 17% of households are connected to acceptable collection and treatment systems. There is therefore a need for innovative solutions which meet the needs of small and rural communities. Countries increasingly realize that the provision of wastewater treatment can have a positive impact on the water-energy-food nexus; bringing additional benefits in a region which is generally both energy and water challenged. Treated wastewater is a valuable resource for irrigation, the solid waste is beneficial as a soil enhancer and for fertilizer application and the gases generated in bio-digesters can contribute to power production. These are key resources that would be lost if wastewater is discharged untreated and of significant importance in countries with limited natural resources. b) Global Environmental Problems Untreated sewage, result of rapidly expanding populations, poorly planned development, and inadequate or poorly designed sewage treatment facilities, is still one of the largest contributors to deteriorating public health and the region s rich biodiversity. Marine life, fisheries, mangroves, coral reefs, and estuarine and coastal zones are all threatened by pollution, with some 80 per cent of the pollution coming from land-based sources, including pesticides, chemical fertilizers, heavy metals, detergents, oil, sewage, plastics and other solids 14. Global chemical pollution is a serious threat to sustainable development and livelihoods. Currently, more than 90 per cent of water and fish samples from aquatic environments are contaminated by pesticides 15. Untreated, or inadequately treated, wastewater is therefore often the carrier of chemicals and waste which have detrimental effects to both human health and the environment. Sewage contains a range of contaminants that individually are known stressors of coral reef ecosystems. These include endocrine disrupters such as polychlorinated biphenyls (PCBs), plasticizers, pharmaceuticals, parabens, phthalates, dioxins, petrochemicals, organochlorinated pesticides, micro plastics, and detergents; heavy metals such as include mercury, lead and, cadmium; and, many other chemicals including PCBs, chlorine, pesticides, herbicides, petroleum hydrocarbons, and pharmaceuticals. Sewage should therefore be viewed primarily as a multiple, rather than a single stressor 16, and its components may interact with each other to create as-yet poorly understood synergisms (e.g., nutrients facilitate pathogen growth), and escalate impacts of other, non-sewage based stressors. The additive or synergistic impacts of these multiple contaminants also have the potential to combine with one another and with other stressors beyond sewage, such as warming waters, to accelerate coral reef ecosystem declines. Improved wastewater management is needed to reduce the amounts of a wide range of substances from a range of human activities which reach rivers and coastal waters, including these stressors. Nutrient enrichment of rivers causes eutrophication, which stimulates algal blooms that cause red tides 17. Polluted beaches and waters and declining coral reef quality and quantity (a 1.5% percent area loss annually was observed from 1977 to keep tourists away, resulting in a loss of key sources of income for Caribbean nations 19. The Caribbean Sea generates more than US$3 billion annually from tourism and fisheries 20. In addition coral reefs are nurseries for many species of fish and shellfish 21 so that the loss of coral reef habitat strongly impacts the local fisheries industry as well. They also serve an important function as protective barriers, protecting mangroves, sea grass beds, and inland areas in general from storm surges and rising seas. The Caribbean Sea Ecosystem Assessment (CARSEA) study found that the Caribbean is the region in the world most 14 (UNEP 2011) 15 GEO 5 Report, UNEP 16 Wear and Thurber (2015) 17 UNEP Bruno and Selig Jackson et al. 2014, World Travel and Tourism Council IUCN Burke et al GEF-6 DRAFT PIF CReW+-July

13 dependent on tourism for jobs and income, while fishing is also a significant source of both income and subsistence. Yet both of these sectors are directly threatened by environmental degradation due to wastewater discharge. Polychlorinated biphenyls (PCBs) have been used extensively in the Wider Caribbean Region since the 1930s (Fernandez et al 2007) and have been detected in atmospheric, marine, freshwater, groundwater, sediment, soil, food and biota samples, including human blood and milk. According to the World Health Organization, POPs can be very persistent and pervasive, for instance, heptachlor, an insecticide used primarily against soil insects and termites was detected in all samples of raw wastewater ( ng/l; median 200 ng/l) and secondary sedimentation effluent (6 120 ng/l; median 13 ng/l) at the municipal wastewater treatment plant in Thessaloniki, northern Greece (Katsoyiannis & Samara,2004). While data on the fate of these chemicals is scarce in the WCR, given their potential to affect human health, it must be a concern. As countries, including Caribbean SIDS which have limited natural resources, look towards treated wastewater and byproducts as significant resources for reuse as irrigation water, energy production (and reduced energy demand), nutrient recycling etc., as stressed by UN-Water (2013), the need for integrated water and wastewater management is essential for future water security. c) Root causes/barriers Although the needs for improved wastewater management in the region are great, there is a substantial funding gap between what is needed and what Caribbean governments have available. The IDB concluded at World Water Week in 2015, that in order to achieve universal coverage over the next fifteen years, the region must develop innovative mechanisms to attract capital, ensure the sustainability of small-scale services, expand the treatment of wastewater in a sustainable manner, and improve institutional organization and governance in the sector. They estimated that while the Latin American and the Caribbean (LAC) invests US 4 billion per year at present, over the next fifteen years US 107 billion will be needed. Unless the region can address these issues and find alternative sources of financing, the wastewater treatment needs of secondary cities and smaller towns, villages and communities, will continue to be neglected. Within national budgets in the WCR, wastewater management is typically assigned low priority in public sector spending. Governments have not found sustainable mechanisms for providing the funding for capital investments in wastewater. Sanitation services are provided largely by public authorities. Costs for investments, operation and maintenance often outstrip their capacities, as do present and future requirements for serving unserved sections of the population. Inefficient wastewater utilities are both a result of inadequate financing of the wastewater sector as well as a contributing factor to the lack of finances available for wastewater treatment. Most national utilities in the region operate inefficiently, with the percentage of non-revenue water in some countries being over 50 per cent 22. On average, well performing utilities have a non-revenue water percentage at or below 25 per cent. Amongst the CReW participating countries, only Belize Water Services Limited shows a relatively efficient level of non-revenue water at 27 per cent. Improving efficiency would reduce the required resources for the water sector and make additional resources available to invest in wastewater projects. Traditionally, Caribbean utilities have accessed funds to finance capital expenditure from: i) internally generated funds (e.g. tariffs for wastewater); ii) government financing; iii) bilateral funding grants and concessionary loans; and iv) multilateral financial institutions, for example, CDB, World Bank and IDB. Clearly if there is to be a quantum leap in the funding of water supply and sewerage projects and to sustain such funding, other sources of financing must be tapped, such as: i) commercial banks; ii) direct equity investment (foreign and/or local); iii) capital markets [fixed income investments (bonds) and equity investments (securities); iv) multilateral, bilateral, private and mixed Climate Funds; and v) payments for environmental services. Another critical constraint limiting countries ability to effectively reduce pollution of the Caribbean Sea from land based sources are their weak policy, institutional, legal and regulatory frameworks for managing land-based pollution of coastal and marine waters. Even those countries with sufficient laws and regulations for wastewater management are challenged by poor 22 Janson 2014 GEF-6 DRAFT PIF CReW+-July

14 enforcement, primarily due to a lack of capacity. Regulatory actions need to be applied and enforced through guidelines, standards and codes of practice. In addition, to support enforcement efforts, monitoring programmes need to be strengthened. Furthermore, an unclear or unstable regulatory regime can deter investment in wastewater management, especially by the private sector. In some countries, data and information collection to inform decision making is minimal, outdated and often not used in national planning processes. Under the CReW Project, operational assessments conducted were useful at the national utility level but it was found that systems for using data compiled from the studies such as the baseline assessments seemed lacking. Data from baseline assessments or any kind of data compilation are important for national decision making, reporting or awareness raising efforts. At the 11 th High Level Forum of Caribbean Ministers responsible for Water in 2015, keynote speaker Dr. Douglas Slater, Assistant Secretary-General of Human and Social Development of CARICOM urged Caribbean Water Ministers to explore the need to support greater capacity building in data management in their respective countries. A more integrated approach to water and wastewater management, with particular attention to toxic chemicals, is needed. Policy and legislative changes need to be accompanied by complementary institutional approaches and relevant stakeholders need to be engaged at the same time. The IDB s Water and Sanitation Sector Framework Document, 2014, notes that despite the region s progress in recent years, major challenges remain to be addressed: (i) unequal access to and poor quality of services; (ii) limited institutional governance; (iii) inefficient service management, low private sector participation, and financial instability; and (iv) little inclusion of social and environmental considerations. Boosting the percentage of treated wastewater, currently less than 15%, is a major challenge. It further notes that there is an enormous need for investment funds in the region, with an estimated US$43 billion needed to provide universal access to improved sanitation. Greater political priority must be given to the water and sanitation sector to enable the scale of change that is needed, hence the need to raise its profile in national debates. A Regional Baseline Assessment on the LBS Protocol in selected countries conducted by the CReW Project in 2013 confirmed that foremost among root causes of poor wastewater management was the lack of financing (including the lack of sustainable funding) for the replacement of old infrastructure and existing, overloaded systems, for the development of laboratory capacity in support of monitoring programmes, and; to access and adopt more appropriate technology inadequate (and sometimes uncoordinated) policy, legislative and institutional frameworks to facilitate the fulfilment of the countries obligations under the LBS Protocol; lack of human, financial and technical resources and the need to enhance institutional capacity through training and the provision of technical and other assistance; lack of adequate maintenance and poor operational systems; a need for sustained water quality monitoring programmes as well as more comprehensive information management systems, and; a need for more focused public awareness and environmental education programmes in respect of pollution of the marine environment. Cultural barriers and inadequate knowledge of good sanitation and wastewater disposal practices also point to the need for more education and public awareness programmes. The lack of knowledge about decentralized technologies that offer the most potential for scaling up mean that exposure and training in appropriate technologies is needed, particularly for rural areas and small communities. The root causes of risks associated with the management of chemicals and waste are similar, including: limited institutional capacity to analyse and address the issues and absence of legal framework and effective enforcement by Environmental regulatory agencies; the absence of relevant regulatory and institutional framework to implement and enforce good practices in clean technologies and operational, practical and sustainable systems; lack of data and information about environmental health risks of exposure to pollution from chemicals and waste; need for greater public awareness of chemical and waste issues; lack of institutional mechanisms to promote innovative techniques, practices and approaches for the elimination and reduction of harmful chemicals and waste. II) Baseline scenario and associated baseline projects a) Baseline Scenario GEF-6 DRAFT PIF CReW+-July

15 38 per cent of the countries in the WCR could be considered to have a weak policy and legislative framework translating into poor practices, according to a regional gap analysis conducted by the CReW project in It found that while 23 per cent (countries such as Colombia, Cuba and the Dominican Republic) had made considerable progress and provide a comprehensive framework for wastewater management in their country, less than 10 per cent had legislation that focused on wastewater management. Although some countries had integrated water and wastewater management plans, there was generally lack of coordination of legislative instruments for wastewater management. Legislation was often outdated and did not reflect modern realities. There was inadequate capacity to enforce wastewater laws as well as surveillance and monitoring laws and there were low levels of compliance with standards in some countries. While CReW began to address this, there is still a lot to be done in terms of policy, legislative and institutional reform if there is to be significant change. Although most participating countries have access to funding for wastewater infrastructure from development banks, they often do not have the organizational readiness and absorptive capacity to effectively use the available funding opportunities. Generally, it is difficult to cover the costs of wastewater investments with tariffs charged to customers of the wastewater utilities. Recovering the costs of a new wastewater system may lead to an increase of as much as 100 percent of the existing tariffs 23, often socially unacceptable. The governments in most Caribbean countries have not put in place tariffs, along with complementary funding mechanisms (such as dedicated subsidies), that can adequately cover the cost of developing and then operating and maintaining wastewater services. An exception is Jamaica 24 which has wastewater tariffs that are used to recover operation and maintenance costs of its wastewater facilities as well as capital investments or debt repayments for long-term loans. Under CReW, through the establishment of revolving funds in Belize, Guyana and Trinidad & Tobago and a credit enhancement facility in Jamaica, the intention was to test and evaluate different financing modalities for wastewater management projects. Where there were supportive policies and regulations (for example sewer connection policies and effluent/sludge regulations) there was greater incentive to seek access to the financing mechanism to implement wastewater infrastructure projects. Creating demand for financing will require the strengthening of policy frameworks to provide more credible and stable conditions for investment planning. The lessons learnt in CReW are summarized in Annex 1. With regard to treated water reuse, in many countries, existing legislation aims to place controls on already occurring reuse, mainly in agriculture. There is often resistance to the idea of treated water reuse due to cultural taboos and/or lack of confidence in monitoring controls. Wastewater reuse guidelines aim to protect the population from health risks and the environment from degradation and pollution. Most of the worldwide available guidelines on reuse of wastewater are based on either the US Environmental Protection Agency (EPA) guidelines or the 2006 WHO guidelines. These guidelines are suitable for developed countries with high wastewater treatment standards, but should be adjusted for countries in the WCR. The IDB has been working in the region on issues related to wastewater management for more than 50 years. Currently the IDB INE/WASA portfolio amounts to USD$949,085,091, of which 277,320,268 is fully dedicated to corresponding CReW+ activities with several projects that support improving the quality of water supply and sanitation services within the urban and rural areas, and institutional and legislative strengthening to enable better water and wastewater management. Some examples are the work done in metropolitan and rural areas of Costa Rica, Dominica Republic, Guyana, Mexico, Jamaica and Trinidad &Tobago aiming to address the issues of non-potable water and to ensure the long term sustainability of the systems designed, to promote awareness and community participation. Additionally, in Colombia, for example, the IDB is working to assist with the development and strengthening of strategic policies and regulation studies in water and basic sanitation. From 2014 to 2016 the IDB has invested over 9 million in the region through Technical Cooperation s (TC s). This is grant money used to support the development and the implementation of the project in areas such as, capacity building, Governance, institutional strengthening, improved coordination with other sectors, production of knowledge products etc. In 2017 the amount allocated for TC s in the region is approximately 8 million. 23 Janson Janson 2014 GEF-6 DRAFT PIF CReW+-July

16 Mexico and Honduras are designing intervention models for the provision of water and sanitation in rural communities; this project aims to develop a model of intervention for technical and financial feasible water and sanitation solutions in dispersed rural communities which involve rural community involvement and the creation of intervention/ business models designed to assist with integrated water and wastewater management. Several other projects have also focused on institutional strengthening and capacity building. In countries such as Jamaica, Barbados, Bahamas, and Trinidad & Tobago, funds are used to improve Institutional strengthening of the executing agency to promote the efficient use of resources and facilitate the execution of project works. The CDB is an important player in the region assisting its member countries to mobilise financial resources, promote private and public investment and provide technical assistance among other activities. Some examples of its work are a USD 39.5 m loan to upgrade the water supply network in Barbados, thus reducing disruptions in water supply and improving operational efficiency; a technical assistance grant to Belize to help make the country s water sector less vulnerable to climate change impacts; and a USD11.2 m Water Supply Project to help improve the water supply system in St Lucia. b) Regional Baseline The following areas are of relevance to this project at the regional level: Caribbean regional coordination for integrated water and wastewater management: Caribbean SIDS, at governmental agency and professional levels have been engaged in various regional water resources management initiatives facilitated by entities such as the Global Water Partnership Caribbean (GWP-C), the Caribbean Water and Wastewater Association (CWWA), the Caribbean Water and Sewerage Association (CAWASA), the Caribbean Public Health Agency (CARPHA, formerly the Caribbean Environmental Health Institute) and the University of the West Indies (UWI). These interventions brought some level of donor support to advancement of the IWRM framework inclusive of land and ecosystem services considerations to the region. The GEF-IWCAM project, implemented from , brought significant resources to augment these efforts in the SIDS but many initiatives have faced resource challenges following its closure. At the Caribbean Community (CARICOM) level efforts are being made to activate a CARICOM Consortium on Water, designed to coordinate the activities of regional organizations working in IWRM and related areas. Entry into force of the Land-Based Sources of Marine Pollution (LBS) Protocol of the Cartagena Convention, in 2010 committed the Governments which ratified or acceded to it to making major improvements in wastewater management by introducing innovative and cost effective treatment technologies, improving the policy, regulatory and institutional frameworks, and expanding access to affordable financing. Participation in the CReW Project was a response to the need to meet the obligations of the Protocol. The CReW was developed to facilitate participating countries to address these challenges and meet their commitments to the Protocol by addressing three significant challenges that have been identified for effective wastewater management: inadequate policy and legal frameworks, insufficient financing and the low priority placed on wastewater treatment. Annex I of the LBS Protocol lists Primary Pollutants of Concern, which include, but are not limited to, organotin compounds, polycyclic aromatic hydrocarbons, biocides and their derivatives and compounds with hormone-like effects. Regarding pesticides, Annex IV of the LBS Protocol refers to Agricultural Non-point Sources of Pollution and states that the Parties shall develop plans for the prevention, reduction and control of agricultural non-point sources of pollution. To date a total of 12 countries have ratified the Protocol. The CEP Secretariat continues its assistance to countries in the implementation of the provisions of the Protocol to enable them to meet their obligations, including meeting effluent discharge quality standards over time. Approximately US$500,000 is contributed by Member Governments annually to the Secretariat to support the work of the Secretariat for the ratification and implementation of the Protocol through the Assessment and Management of Environmental Pollution Sub Programme. Country motivation for accession to the Protocol has largely been to avail themselves of needed resources and support. Projects designed based upon the lessons learnt in the past, and in consultation with the countries, such as CReW and CReW+ are manifestations of their commitment as well as the means by which they can implement improvements that are sustainable. GEF-6 DRAFT PIF CReW+-July

17 Many of the countries in the Wider Caribbean Region have signed and/or ratified the Stockholm Convention on Persistent Organic Pollutants (POPs): Enlisted parties are required to take measures (legal and/or administrative) to eliminate or heavily restrict the production and use of POP pesticides and PCBs, and to minimize the unintentional production and release of POPs. High Level political support for reforms: At a meeting of the High Level Forum of Ministers with Responsibilities for Water in 2013 in Barbados (supported by GWP-C and the GEF CReW project), 11 Ministers signed a declaration acknowledging the critical condition of wastewater treatment in the region and recommending key actions that would result in improvement to the ecosystem and socio-economic status. The support of ministers for enhancements to wastewater collection/treatment is paramount to the success of the proposed project further illustrating the country drivenness of the proposed approach. Regional centers for training in wastewater management: the newly established Waste Management Centre at the University of Technology, Jamaica establishment of a programme for training and certifying wastewater operators. This aims to address operation efficiency of treatment plants throughout the country and is the heart of a larger capacity development and training programme for Jamaica and other Caribbean countries. In addition the University s Faculty of Engineering and Computing entered into an agreement with GEF CReW and the University of Monterrey, Mexico to develop online courses to be offered to the English speaking community in the Caribbean and Central America thus facilitating capacity building throughout the region. c) Country Institution and Policy Baseline Policy: There is growing recognition amongst governments in the region of the importance of holistic, national sustainable development planning and some countries in the region have national development plans all of which include environmental protection with wastewater management included as a sub-component. For example, Guatemala has developed a National Plan of the Public Services of Potable Water and Sanitation for Human Development In Costa Rica, a new Water Law was established in 2014 to provide the main legal framework for the use and management of water resources. Barbados Five-year National Development Plan includes a focus on wastewater management. The Barbados Water Authority (BWA) is responsible for supplying the island, which is among one of the ten most water scarce countries in the world, with potable water as well as the provision of wastewater treatment and disposal services to the sewered areas of Bridgetown and the South Coast. The Authority is also responsible for the monitoring, assessment, control and protection of the water resources. To improve the efficiency of this sector, the Inter-American Development Bank (IDB) has provided a loan to Barbados for upgrading BWA s Water and Sanitation Systems25. Legislative and regulatory framework: Colombia, the Dominican Republic and Mexico are the countries with the most advanced legislation and supporting regulations. Jamaica is one of the few countries to develop sewage sludge regulations. The 2013 Natural Resources Conservation (Wastewater and Sludge) Regulations provide the regime for regulating the construction, modification and operation of wastewater treatment facilities and the discharge of sewage and trade effluent. Institutional and governance framework: Most countries have a designated national provider of water and wastewater services. Low levels of technical capacity and inadequate funding characterize the sector. There is generally a need to improve skills and knowledge needed for policy formulation, planning and financing in water and wastewater management. Countries participating in CReW agreed on the following at a Knowledge Sharing session during the last Project Steering Committee Meeting in 2015: many countries do not already have some efforts ongoing to develop or strengthen existing wastewater management institutions, policies and laws, and additional efforts are needed at country level to raise awareness amongst both technocrats and policy makers; consistent or coherent identification of what is needed in terms of policies, strategies, action plans and training is sometimes lacking and feedback from different agencies (utilities, regulatory agencies and relevant ministries) can differ. There is also a need to improve data collection and analysis to strengthen decision-making. Land degradation concerns, Barbados: The frequency of drought in Barbados is about 3 in 10 years and has been related to El Nino occurrences. In recent years drought has been recorded in 1982, 1986, 1993, 1994 and In Barbados domestic fresh 25 CReW Enabling Environment Case Study, 2016 GEF-6 DRAFT PIF CReW+-July