Submission Date: 30 Sept 2007

Re-submission Date: 18 March 2008

Indicative Calendar
Milestones	Expected Dates
Work Program	June 2007
CEO Endorsement	July 2009
GEF Agency Approval	Oct 2009
Implementation Start	Nov 2009
Mid-term Review	Dec 2011
Completion	Dec 2013

part i: project IDentification

GEFSEC Project ID: 3391

gef agency Project ID: PIMS 409

Country: Tanzania

Project Title: Reducing Land Degradation on the Highlands of Kilimanjaro Region

GEF Agency: UNDP

Other Executing partners: Government, ICRAF, Civil Society

GEF Focal Areas: Land Degradation,

GEF-4 Strategic program(S):SO1 (SP1, relevance to SP2)

Name of parent program/umbrella project: SIP

A. Project framework

Project Objective: To create a sustainable enabling environment for integrated sustainable land management that reduces land degradation and improves livelihoods in the Kilimanjaro Highlands, Tanzania.
Component	T	Expected Outcomes	Expected Outputs	GEF		Co-fin		Totl
				$ m	%	$m	%	$m
1) A sustainable Land Use System that is based on incentives for coffee as a cash crop is tested and adopted in zone 2 of Mountains. SIP IR 2	TA	* SLM systems in place that emphasize tree cover, (the Chagga Home Garden System - CHGSystem) especially shade coffee, in four Districts * SLM systems that incorporate soil – water conservation (SWC) inputs so as to reduce pressure on Natural Resources, and consider future climate change, are developed for montane agro-ecological zones, and adopted by District & Regional Govts. *Business Plan for shade Coffee is developed and adopted by small-holders, cooperatives, buyers and governments; setting out markets, incentives, targets and environmental / economic benefits.	* Four mountain Districts Land Use Plans that emphasize improved SLM; * Training materials on SWC updated to reflect state of the art knowledge; and in use by Extension * Land managers and technical officers trained and apply skills in land use planning and improved farming practices, particularly linked to coffee based agricultural systems. * Technical staff have tools (updated extension packages for SLM extension) & support farmers on shade coffee based agricultural system; *Coffee is integrated into LUP covering 20,000ha, across eight watersheds in three mountain blocks (Kilimanjaro, Pares); * Incentives for coffee and other tree crops agreed via private sector, within a business plan; and their application encourages adoption of improved land management practices; * Coffee farmers linked to better paying coffee markets, including demand – supply chains and certification, resulting to increased coffee earnings. * Analytical studies on economics of coffee, CHG System and SLM, tenure and resource management issues are undertaken and inform policy reform; need for micro-finance assessed. SIP indicators : 40,000 ha under direct SLM (project area) and 100,000 ha impacted by up-scaling in next 2 yrs. Of the 40,000 ha half has improved coffee with 30% increase in tree cover and 20% increase in household income	1.1	35	2	65	3.1
2- Farmers in zone 3, via Village Govt / CSO, increase tree cover on farm and common lands, providing increased livelihood support and flow of ecological goods and services. (SO2) SIP IR 1	TA	* Increased woody cover: as woodlots are planted with economically as well as environmentally useful species (or species mix); e.g. improved fruit trees; * Better land management: village groups adopt SLM and SWC best practices leading to more water infiltration, reduced soil erosion, increased soil fertility and agricultural productivity * Extension agents provided with skills and capacity to provide extension services for improved SLM and SWC practices in zone 3 *Land management practices adapted to effects of climate change	* A land capability assessment undertaken that provides a basis for tree establishment and other forms of SWC in zone 3; * A socio-economic assessment undertaken that form the basis for identifying community groups to be facilitated to establish woodlots * A climate vulnerability assessment undertaken and a local level adaptation strategy formulated * Training materials incorporating best SLM practices and adaptation to CC produced and land managers trained; * Land managers facilitated to link to sources of funding to finance the implementation of the local level adaptation strategy, including tapping into the Carbon Finance (CDM/voluntary markets) *Extension agencies provided with kits that mainstream SLM and adaptation and the resources necessary to deliver extension services, & available for similar districts. SIP Indicators :> 10 community groups invest in tree cover, tree cover increases by >10% in target village site; and invest in SWC.	0.87	38	1.4	62	2.27
3 Institutional and systemic capacity to monitor and evaluate cross sectoral & vertical environment processes created and used to mainstream SLM in development process (via CSIF at national Levels) SIP IR 4	TA	* Communities, local and national levels of govt have M&E skills and systems to monitor adoption of coffee and SLM, and their impacts on the environment and poverty (and feeds into the PRSP - Mkukuta) * M&E is linked to the TerrAfrica CSIF process & information is disseminated and used by all relevant stakeholders – especially ministries for decision making. SIP indicators: > 75% score on Composite Index for the SLM Enabling Environment against baseline; including policy changes, availability of finance resources to address SLM at national level	* M&E needs assessment conducted to establish levels of skills and system capacity amongst key stakeholders *An M&E training package developed and delivered to respond to the needs identified in the needs assessment * Communities, local and national government facilitated to develop an integrated M&E system to monitor SLM adoption and the coffee marketing processes; * The M&E system linked to the CSIF process and information collated shared widely within the National SLM Platform members * National SLM network with awareness strategy is established and exchanging information, strengthening cross * Inter-ministerial SLM Steering Committee formulates Tz CSIF to guide programmatic approach to SLM; * Information from M&E used to adapt project management and SLM and coffee marketing processes countrywide	0.42	46	0.5	54	0.92
5 Project Management				0.26	22	0.9	78	1.16
Total project costs				2.65	36	4.8	64	7.45

C. Indicative Financing Plan Summary For The Project ($)

	Project Preparation	Project	Agency Fee	Total
GEF Grant	125,000[1]	2,650,229	249,771	3,025,000[2]
Co-financing	50,000	4,800,000		4,850,000
Total	175,000	7,450,229	249,771	7,875,000

D. Indicative Co-financing

Co-financing Source	Cash	In-kind	Total
Project Government Contribution		750,000	750,000
GEF Agency	100,000		100,000
Bilateral Aid Agency (* includes German funds via FAO)	3,250,000	250,000	3,500,000
Private Sector	50,000	200,000	250,000
NGO	200,000	50,000	250,000
Total co-financing	3,600,000	1,250,000	4,850,000

part ii: project JustiFication

A. issues, proposed solution and expected global environmental benefits:

1. Mount Kilimanjaro & Pare Mountains are World Heritage Sites in Kilimanjaro Region, Tanzania, with ecosystems of high national / global importance. Mount Kilimanjaro as an African “icon” has interested scientists and conservationists over the past century. The Pare Mountains, part of the Eastern Arc Mountains, have a high diversity of plant and animal species, and are part of a global “biodiversity hotspot”. Both mountains provide supportive regulatory ecosystem services. Past studies (e.g. UNEP 2001) concluded that Kilimanjaro was a high impact zone; FAO in 2002 documented severe human induced soil degradation; and the UNEP–GEF project “LUCID”^[3] reported serious land degradation problems. Mount Kilimanjaro has recently experienced the phenomena of retreating glaciers as a result of climate change.

2. Mount Kilimanjaro has three distinct production zones, with interrelated land use problems. Zone 1 has Forest Reserves/National Park above 1900m asl; Zone 2 has intensive tree cropping (Chagga gardens) up to 1900m asl. Zone 3 is more arid, and characterized by extensive grazing and rain-fed cultivation, supported through perennial springs and seepages, and occupies land below 900m asl. Forest Reserves date from the 1920s, but poor management results in fires, deforestation, encroachment, and reduced catchment value.

3. The highland inhabitants of Zone 2 developed a unique traditional farming system: the Chagga Home Garden System; which integrates trees/shrubs with food and cash crops and livestock on the same land unit. The farmers practice agro-forestry practices using multipurpose trees and shrubs to provide shade for coffee, as live fences, for fodder and mulch production. The major cash crop is coffee (Coffea arabica), grown together with bananas under tree shade canopies (for food and cash); and a lower ground cover of food crops (beans), medicinal plants and annual fodder plants[4].

4. The last decade has seen a significant and deleterious change in agricultural land-use in Zone 2, as the multi-tier tree-based Chagga Home Garden system is replaced by an open (less trees) annual crop mix of maize and beans. Reduced tree cover and long dry season fallow periods leave the friable volcanic ash soils open to wind and water erosion, less infiltration, more sediment, reduced spring flow and reduced soil fertility. Three main root-causes drive this change, both linked to coffee. Firstly, coffee yields were in decline, with old trees that are susceptible to coffee berry disease (CBD). Secondly coffee quality declined with poor pulping, washing, drying and grading processes. Thirdly, and as a consequence of the first two, coffee prices were declining – low prices and delayed payments. Many farmers replaced coffee (and its attendant home garden trees) with annual crops and so land was increasingly degrading. The same decade has seen Kilimanjaro Region drop in per capita income from the top 3 Regions out of 20, to be amongst the bottom 5. Poverty is an issue.

5. Whilst Paragraph 4 sets out the main SLM problem statement; further threats leading to land degradation are described briefly in Paragraphs 5-9. Land is privately owned (ownership passing to sons) increased population, coupled by the high dependence on agriculture for economic activities in the region, has led to frequent sub-division and smaller plot sizes. High cost of agricultural inputs, particularly since the removal of price subsidies introduced by the IMF/WB led Structural Adjustment Policies has resulted in low use of inputs (fungicide, fertiliser, furrows for irrigation), further reducing the productivity of the Chagga home gardens.

6. Many farmers have opened annual crop gardens in the lower semi-arid zone 3, exporting soil erosion problems. Zone 3 was, until recently, under natural vegetation, supporting few government owned plantations of sisal and livestock. Farmers migrating from zone 2 have converted most natural vegetation to annual crops (maize and beans) without appropriate SLM measures. The soils are inherently infertile (especially below the Pare Mts), and without fertilizers, productivity declines drastically after a few crop cycles. Aridity reduces yield, many areas are subject to landslides from mountain slopes. Poor farmers migrating from the highlands cannot afford fertilizers and other inputs; this migration of farming practices is spreading a land degradation/poverty belt down the mountain, with serious environmental consequences. Soil erosion has increased tremendously, reflected by siltation of the Pangani River system, with reduced water flows in its tributaries for long periods of the year.

7. Throughout zones 2/3, agricultural intensification in response to decreased farm size has resulted in heavy nutrient mining without replenishment. Increased population pressure has led to cultivation in ravines, on steep slopes and other marginal lands; resulted in reduced fallow systems in the lowlands; all adding to land degradation problems. The impact of these problems is reflected in increased soil erosion, decreased land productivity, reduced ecosystem integrity and catchment capacity, and impoverished livelihoods of Kilimanjaro region inhabitants (1.4 million in 2002).

8. The Pare Mountains are similar to Kilimanjaro, but soils are old acid and leached, and of lower fertility than the volcanic ash of Kilimanjaro. Combined with the steeper slopes on the Pare Mountains, soil erosion here is even more serious. Coffee was a major cash crop, interspersed with other perennial and annual crops in a shade environment. There is great need for agro-forestry inputs involving nitrogen fixing trees amongst cash and staple food crops. Water is a major concern with increased run-of and siltation impacting both upland and downstream water sources.

9. The current resource management practices, from land-use planning to agriculture, forestry and water management (ie integrated catchment management), are failing to maintain and restore ecosystem function and cannot facilitate sustainable development. With the exception of the National Action Plan to Combat Desertification, resource policies lack specific measures for controlling land degradation. While environmental considerations are included in broad national development policy, strategies and legislations, there is low level of implementation of these policies due to shortage of financial resources, poor coordination and collaboration among implementing institutions and inadequate technical skill. Examples of good SLM practices that do exist are unlikely to reach the scale necessary to comprehensively address the problem of land degradation, unless the barriers and bottlenecks are alleviated.

10. In summary, three factors interact in a positive feedback loop to drive land degradation and poverty.

· Changing land-use practices in Zone 2 (perennial tree crop to annual crops) are reducing productivity, income and ecosystem functions.

· This leads to spill-over effects in arid Zone 3, with vegetation clearance, inappropriate cultivation, severe erosion and failing ecosystem services.

· There is an unresponsive land-use decision making system (from policies and their implementation and regulation, to oversight and local capacities); this system is not responding to growing land degradation.

11. The ideal long-term condition (the normative solution or vision) desired by the stakeholders of the Kilimanjaro area, and supported by this project is that: “The mountain systems of Kilimanjaro maintain a tree cover agro-forestry system based on productive shade coffee that sustains soils and livelihoods”. The project’s working hypothesis is that the vision can be achieved if an enabling environment for the return of shade coffee as a cash crop is created, through markets, local policies, incentives, and enhanced capacity, that facilitates implementation of integrated sustainable land management, reducing land degradation and supporting healthier economy and ecosystems in the Kilimanjaro Highlands. This needs to be supported by a programme of soil and water conservation in the arid zone 3, which will continue to absorb excess population from zone 2 for the foreseeable future.

12. Government and farmers are concerned about land degradation and poverty in the region, and have taken measures to reverse the trend. Most important inputs have been an increasing scale and transparency of incentives to maintain a tree-crop in zone 2, promoting a return to coffee production as the major economic driving force for change. In partnership with the Private Sector (Techno-serve and Fair-Trade, and buyers) and research institutions, government has developed new coffee planting stock (still a shade coffee) with greater, earlier yield and disease resistance, and encouraged private coffee buying companies that pay higher prices more regularly. Farmers are adopting the new coffee, which needs more focused support; politically and technically. Coffee prices are increasing, led by recent liberalization of private sales. Buyers, including niche entrepreneurs, take high grade coffee (Grades 1 – 5 of the international grading system of 1-14), greatly increasing farm revenue. Private buyers pay almost immediately, whereas government paid months in arrears. This has introduced a five-part incentive package – a) higher prices, b) rapid payment, c) higher yielding plants, d) early maturing plants, and e) disease resistant plants (CBD and rust). The new coffee varieties were developed by Government Coffee Research Station (EU supported) with part funding from coffee producers (<1% levy on sales). Research continues, focusing on grafting new material onto older rootstocks, into simple multiplication techniques at village nurseries, based on mother clonal plants; and integrating improved planting stock with available village “mini-pulping stations” to improve coffee quality.

13. Despite this increasing effort, the effectiveness of government to mainstream sustainability into agricultural production is still hampered by several barriers (see below). A stakeholder analysis of the threats, roots causes and barriers to sustainable land management in Kilimanjaro Region has showed four main barriers.

Ø Knowledge of new improved SLM practices for the Chagga Home Garden System – which is based on improved coffee seedlings, is not readily available to the majority of the farmers, as the recent developments in coffee are not captured in the extension packages and the private sector is not integrated with extension services. The changing market situation has still not reached distant farmers. Farmers have low skills in business practices, reducing their abilities to exploit the improving business opportunities.

Ø Lack of knowledge on conservation agriculture required to farm in the semi-arid lands. Despite the incentives being offered for coffee in zone 2, population pressure is still forcing immigration into zone 3. Farmers from the highlands emigrate to the semi-arid lands and apply agricultural practices that are not adapted for the region. This is compounded by the low capacity of the extension service.

Ø Uncoordinated efforts on SLM across government and vertically between layers of Government, leading to insufficient financial investment in land management, fuelling the poverty/environment nexus; and the lack of political will to effect realistic change.

Ø And, across all zones, the realization that climate change[5] will worsen an already severe situation.

14. The project proposes to develop a sustainable enabling environment, through local policies, incentives, and enhanced capacity, to facilitate implementation of integrated sustainable land management in the Highlands; as part of the SIP input to TerrAfrica”. The objective will be achieved though three outcomes, with a fourth Management component. Technical Outcomes are linked to Barriers as follows:

Ø Sustainable Land Use Systems based on incentives for shade coffee as cash crop are mainstreamed into the Chagga garden systems in zone 2.

Ø Farmers increase tree cover through improved soil and water conservation system adopted in the drylands (zone 3).

Ø Institutional and systemic capacity to monitor and evaluate adaptive SLM interventions, lessons are reflected in local / national policy processes and inform the Tanzania TerrAfrica CSIF process.

15. Outcome 1 The project will use a cross-sectoral development approach (Soil and Water Conservation) to improve overall land-use practice. In addition, the project will target coffee issues through two sub-outcomes: one focusing on improving business practices, looking at market and non-market based incentives for the further adoption of shade coffee that will drive SLM across the farming system. Through incremental activities by government, NGO & donor agencies, the project will strengthen capacity and provide incentives for increasing the productivity and marketing of coffee as a cash crop to increase productivity in zone 2; thus reducing the need for migration into zone 3. The project will work with established coffee expertise (e.g. Techno-Serve) to promote niche buyers and link them to coffee farmers. Secondly, at environmental level, the project will promote the benefits of shade coffee to sustainable land management and biodiversity conservation to both farmers and technical officers. Adaptation to Climate-Change is a cross-cutting theme within the project. Possible co-funding from GEF CC/SPA will be considered in the PPG phase, subject to funding availability.

16. The project will assess the capacity needs required to effectively support both a Chagga garden system based on shade coffee and improved SLM in the drier zone 3. This will be the basis for the design and implementing a programme of capacity building. Training materials on SWC will be updated to reflect state of the art knowledge; (e.g. gully plugs, stream bank conservation, bund –terracing, increased tree cover, reintroducing traditional irrigation practices etc). Technical staff will be provided with current tools for extension (updated extension packages for SLM extension & support to reach farmers; all stakeholders will be facilitated to undertake land-use planning as a guide for improved SLM.

17. Outcome 2: To increase productivity in the semi-arid zone 3, the project will support land use planning/zoning to determine areas that can support different levels and types of crops (e.g. Fruit Trees such as improved mangoes, tamarind etc), including the possibility of bio-fuels and tree plantations for carbon finance. The project will review drylands agricultural practices from the region and elsewhere and pilot promising methods. An extension package will be developed around the selected methods (including bio-fuels and carbon finance) and extension officers will be trained to deliver the same to the farmers. The project will develop an incentives-mix to promote sustainable tree planting (rehabilitating already degraded land) and maintaining improved land management practices. This includes investigating and piloting alternative income generating activities (not crops), linkage to markets for alternatives and improving local business practices and capacities for exploiting the emerging opportunities in international capital flows to support adaptation to climate change.

18. Outcome 3: Capacity for participatory M&E processes will be strengthened and monitoring information, together with information gathered from policy reviews, used to mainstream SLM into local and national development processes. This outcome will be implemented in close collaboration with the TerrAfrica supported, UNDP-led Tanzania SLM National Dialogue Process, which will bring together relevant SLM stakeholders. The stakeholders will, through consultation and dialogue, develop a Tanzania SLM Strategic Investment Framework, which will guide the country in mainstreaming SLM into national development processes. To establish a policy enabling environment, policy reviews will be undertaken at both national & local level identifying ways in which SLM can be promoted by policies & legislation. Government expenditure will be reviewed to identify potential sources of domestic finances that can be invested in financing environment as a pillar of sustainable development. This work will be done jointly with NEPAD’s CAADP and the World Bank.

19. Global Benefits: Improving SLM practices in Kilimanjaro is expected to lead to three streams of global environmental benefits: increasing woody vegetaion is expected to increase net Primary Productivity and Rainfall Use Efficiency (NPP/RUE). This will increase the rates of photosynthesis, leading to better sequestration of carbon, as well as increasing productivty of the land (contributing to MDGs). The second strream is related to improving soil quality (including carbon). The SWC practices will lead to increase in soil organic matter which supports higher productivity and sequesters more carbon. More importantly, the SLM practices will lead to greater ground cover, reducing water run-off and increasing water infiltration, particulalry in zone 3. Less erosion means less siltation in the Pangani river basin and a more regulated flow of its tributaries, improving water supply to the catchment. Finally, a return to coffee under the shade will conserve biological diversity of global importance by providing critical habitat, especially in the event of loss of natural habitats. The Chaggah home Gardens contain a great variety of trees that provide a high level of diversity of plants, reptiles, birds and mammals. Over 230 species of birds, including migratory species, have been observed in shade-coffee habitats elsewhere.

B. consistency of the project with national priorities

20. The project aims to achieve concrete and measurable improvements in the livelihoods and living conditions of the rural poor and traditional coffee farmers, increasing food security and improving the sustainability of their agro-environments. The project contribute directly to several policy instruments: The evolution of national policies for tackling land degradation in Tanzania has culminated in the 2005 National Strategy for Growth and Reduction of Poverty (NSGRP) (Vice President's Office, 2005). The Strategy acknowledges the fundamental importance of land and defines clear actions on SLM to be taken in the period up to year 2010. The strategy also recognises the fundamental importance of SLM for broad-based social and economic development. It fully embraces a human rights based approach and notably, the principles of equality and non-discrimination, empowerment and participation. The NSGRP is committed to the Millennium Development Goals and is time-bound from 2005 to 2009. The project supports the Tanzania Development Vision 2025 (TDV2025), the Poverty Reduction Strategy Paper (PRSP), Rural Development Policy (RDP) and the National Strategy for Growth and Reduction of Poverty (NSGRP) and the Agriculture Sector Development Strategy (ASDS). All these instruments are used to guide the process in stimulating growth and reducing poverty, and they all recognise and prioritise agriculture and sustainable natural resource management as key development pillars in realising the intended acceleration in real GDP growth and the needed reduction in poverty.

C. consistency of the project with GEF STRATEGIES and programs

21. The proposed project satisfies the requirements for GEF financing under the Strategic Priority I (SP1, with some relevance to SP2). The project is part of the SIP and will contribute to the SIP’s Goal by reducing land degradation in Tanzania - thus supporting the country in improving its natural resource based livelihoods. More specifically, the project will foster system-wide change through the removal of policy, institutional, technical, capacity and financial barriers to SLM, in line with the LD SO 1, 2 and 3. It will build capacity for achievement of SIP Intermediate Result 1: SLM applications on the ground are scaled up in country-defined priority agro-ecological zones. It will work directly towards Intermediate Result 2: effective and inclusive dialogue and advocacy on SLM strategic priorities, enabling conditions, and delivery mechanisms established and ongoing. Objectives coincide with Intermediate Result 4: targeted knowledge generated and disseminated; monitoring and evaluation systems established and strengthened at all levels.

D. Coordination with other related initiatives

22. The Government of Tanzania, assisted by NEPAD/SIP Partners is forming a National SLM Platform to oversee and coordinate the development and implementation of the National Framework for SLM, including this project. The National Framework for SLM and the National SLM Platform will be supported by a collective, multi-partner, coordinated effort, in line with the objectives and approach advocated by the TerrAfrica multi-stakeholder partnership. All development partners operating in the country (including the WFP, GTZ, Finland, Norway, FAO, and The GM of the UNCCD, AfDB, IFAD, and the World Bank) will be encouraged to align their support with the SLM Framework through different delivery mechanisms, based on their respective country dialogue and comparative advantages. UNDP will ensure close coordination of the SLM initiatives, as lead GEF Agency for LD, and the Coordinator of UN Agencies in Tanzania. The project will link with agricultural support programmes and the adjacent SF CC-A MSP (another GEF project), deriving lessons from these and other projects. It will also work closely with private sector interests through the coffee interventions. The project will link to and learn lessons from shade coffee projects in South America (eg Columbia), and will work with specialist coffee agencies (eg TechnoServe, Fairtrade) within full project implementaion and PPG process.

E. Incremental reasoning of the project:

23. Baseline scenario: An assessment of the baseline show that the government of Tanzania has invested considerably in improving incentives for coffee-based agricultural system (promoting quicker maturing, disease resistant higher yielding clones, allowing private coffee buyers, etc). However, many land managers and farmers have not accessed the new opportunities because there are still major barriers; the technologies required to support the better coffee is still not captured in the extension services, and market opportunities have not reached farmers in remote areas. Even more serious is the fact that farmers continue to migrate to the drier zone 3, utilising innapropriate agricultural practices, thus importing land degradation. This is primarirly because the current effort is failing to mainstream SLM into sector development.

24. Without the GEF's involvement, the key players (government ministries and the coffee private sector) will continue to address effects of land degradation in their specific relatively narrow scopes, using the same approaches they’ve always employed that have had limited success so far. The government does not have adequate capacity to deal with an integrated approach; the private sector providing support to coffee has no mandate or capacity to mainstream SLM in coffee production, thus productivity is likely to continue to decline, exposing farmers to food insecurity and compounding effects of climate change. The GEF funding will help remove the barriers that have prevented an integrated approach to development in the past. These are inadequate capacity of the government system to provide knowledge based, affordable techniques and incentives for SLM, sector based planning compounded by a weak extension service, poor linkage between the SLM and rural development initiatives, lack of collaboration between the private and the public sectors in planning and local economic development, and weak institutions for basin level coordination.

25. With GEF funding, the project will bring together all the key stakeholders to adopt an integrated approach to SLM and ecosystem services, particularly addressing problems in zone 2 and 3 simultaneously to prevent the importation of land degradation problems down the mountain slopes. The project will promote integrated, cross-sectoral management of natural resources, mainstreaming SLM into policy and land use planning, strengthening institutions and incentives for adoption of SLM. This will provide incentives for conservation agriculture and other SLM practices. By enhancing the knowledge base and raising awareness among policy makers and the public, the GEF alternative will enhance innovation and the scaling up of good practice through a participatory and replicable approach on the ground.

F. risks, including cc and risk management measures

Risks	Rate	Mitigation measures
At local level, new local government systems may not receive the support and legitimacy it needs to serve as the basis for proposed SLM approach	Low	The project will work closely with the Ministry of Local Government (MOLG) to build national and community support for the new system
Some farmers may resist re-introduction of new coffee varieties (low disease, high yield, young maturing), and prefer to use annual crops;	Low	The pyrpose of the roject is to increase uptake – all signs so far show that there is increasing uptake, but that this is linked to better extension, available goods and markets
Local economies may be slow in demonstrating economic returns on SLM investments thereby promoting short term decisions of survival over investment into good practices with later returns by both land managers and their leaders	Med	By enhancing natural resource management, the project will enhance the economic and other benefits flowing from the natural resource base and thus stimulate a stronger commitment to SLM. This will be supported by work on sustainable economic options and linkages to markets. The project will demonstrate the benefits of participating in SLM knowledge management and will make such participation easy and attractive for all stakeholders.
Policy mainstreaming is expected to be achieved via the National Dialogue and CSIF processes. This introduces the risk of the slow pace of achieving conditions needed for alignment and harmonization. Some members of the National Dialogue Process may be unwilling to participate in knowledge management process.	Med	This risk will be mitigated by constant and continueed policy dialogue with Government and Development Partners, who have expressed commitment towards a more programmatic approach to address land degradation. Some partners agreed to align and support the implementation of a more programmatic approach to SLM scale-up.
At both local and national scales there are risks associated to climate change, that may undermine the gains made from SLM related investments, and/or may render proposed strategies/technologies for pursuing SLM obs	Med	Risks associated to climate change will be mitigated by integrating CC concerns and adaptation issues into the formulation and implementation of SLM strategies and activities. Several studies on impacts of climate change in Tanzania have prompted development partners to assisting the country adapt to climate change. This project would liaise with such initiatives and provide government with an additional tool to address the root causes of climate change (through, for instance, increased carbon sequestration) and reduce the negative effects of climate change (i.e. by preserving and restoring critical habitats that can provide a buffer zone for increased weather variability).

G. Expected COST EFFECTIVENESS of the project (e.g. $/tons of CO2 abated).

26. Investment in mountain catchments has a positive knock-on effect to arid downstream biomes. The project will work with 40,000 ha, across eight watersheds in three mountain blocks (Kilimanjaro, North and South Pares). Targeting the coffee sector can alleviate poverty levels to the point where investment into maintaining other systems e.g. traditional irrigation starts again. Project successes in Kilimanjaro are easily replicated on Mt Meru, Usambara and southern highlands. At operational level, project implementation arrangements will minimize bureaucracy, administrative and managerial wastage, and follow UNDP standard rules and procedures for procurement and recruitment. A cost effectiveness appraisal will be made prior to final approval by the EA. The project will build local capacity for replicating and adapting new participatory management models, a cost-effective approach for ensuring sustainability and replicability.

27. “Realistic” Alternative Interventions could focus on individual stand alone inputs, such as “a coffee support project” and / or an “extension support project” and / or “a watershed catchment project”. The GEF alternative is built on GEF/SLM guidance, looking for integrated multi-sectoral interventions, including both bottom up (community) and top-down (empowering local governance) approaches. These approaches are embedded in the GEF TERRAFRICA SIP programme and TERRAFRICA best practices. Although values on financial indices such as IRR or NPV are not available for such an investment, it is evident that investing in the integrated approach has a higher return than investing in sector based approaches, particularly on improving the environment, contributing to climate mitigation and improving lvelihoods. The exact values (NPV, IRR) will be established during the PPG and provided at CEO endorsement.

part iii: approval/endorsement by operational focal points and GEF agencY

a. GEF agency comparative advantage (leave blank if GEF Agency is in comparative advantage matrix)

28. This is a national capacity building project, for which UNDP has comparative advantage. In addition UNDP will be the lead Agency in Tanzania within the TERRAFRICA SIP – Strategic Investment Programme, with the Kilimanjaro project as the flagship intervention in GEF 4.

A. Record of Endorsement of GEF Operational Focal Point on Behalf of Government:

Ruth Mollel – PS Environment; Office of the Vice President.

Date: (Month, day, year)

B. GEF Agency Certification

This request has been prepared in accordance with GEF policies and procedures and meets the GEF criteria for project identification and preparation.
John Hough, UNDP-GEF Deputy Executive Coordinator, a.i.	Project Contact Persons UNDP - Veronica Muthui, RTA - SLM Pretoria. Tel: +27 12 354 8124 Email:veronica.muthui@undp.org
Date: 18 March 2008

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