Profiles ofthe NEFS: North West Frontier Province, Pakistan 103. by Mohammad Rafiq. II. Goals. > Investment in environmental rehabilitation,

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1 process. A draft SPCS has been approved by the Provincial Cabinet. Following on the Pakistan National Conservation Strategy (NCS), over the past developed the Sarhad Provincial Conservation the IUCN-SPCS team working with the The idea of a Fund for Sustainable Policy for the Grant of Concessions of Mining SPCS. The Chief Minister then supported a The main motivation for the fund was to: mechanism of financing environmental funds for environmental protection. role of government departments or duplicate > Complement existing (but limited) sources of > Institute an innovative and flexible of Limestone in NWFP and the SPCS three years, the Government of NWFP has Strategy (SPCS), Sarhad being the vernacular term for Frontier. Extensive public consultation was an important part of the Development (FSD) in NWFP was conceived by Government of NWFP in the development of the document s recommendation for the development of a fund. improvements; for pursuing sustainable development in Enable and maintain partnerships between the public, private and independent sectors NWFP; and The fund is not designed to take over the mechanism focusing on provision of a healthy environment, improved social service, poverty them. Instead, it will be a complementary hopes to address the issues of recurring costs, state-delivered development. There is substantial political and objections by the Finance Department are bureaucratic support for the fund. However, the environment by encouraging sustainability in the use of natural resources of the province. The specific objectives are: development in a flexible, transparent, resource conservation, and sustainable > Investment in environmental rehabilitation, II. Goals inefficiency, and governance associated with the I. History alleviation and job creation. In the process, FSD delaying its establishment. The main purpose of FSD is to protect maintaining a healthy and productive environment. The fund has not done any strategic planning as yet, but plans to upon establishment. The initial idea was to set up the fund Government. However, to ensure stability, FSD established by an Act of the Provincial Pakistan, environmental legislation can be enacted by Federal and Provincial Governments. through an administrative order of the proponents now prefer that the fund be III. Legal Structure > Facilitating community participation in > Engendering public/private partnerships; and efficient and responsible manner; Assembly. According to the constitution of by Mohammad Rafiq North West Frontier Province (NWFP) Fundfor Sustainable Development (FSD) in Profiles ofthe NEFS: North West Frontier Province, Pakistan 103

IV. Governance/Administration with 13 other members including the Minister for (SDB) headed by the Chief Minister of NWFP, A Sustainable Development Board The fund will be initiated with modest

A small office with modest will have to be approved by the board along with secretariat support is envisioned.

The Annual Budget The fund will have an Executive Director fund according to the recommendations of the CAP and draw on the fund to maintain and CAP and the board.

2 IV. Governance/Administration with 13 other members including the Minister for (SDB) headed by the Chief Minister of NWFP, A Sustainable Development Board The fund will be initiated with modest allocation from the Government s own resources. Eventually, an amount of US$23.9 a yearly plan of operation. by the board. A small office with modest will have to be approved by the board along with secretariat support is envisioned. The ED will be (ED) appointed for a fixed tenure as determined the custodian of the fund, accountable to the operate the executive office. The Annual Budget The fund will have an Executive Director fund according to the recommendations of the CAP and draw on the fund to maintain and CAP and the board. The ED will expend the There will be a ten-member Citizens predetermined criteria approved by the board, Advisory Forum (CAF) with membership drawn nominate representatives on the CAP, which will groups. Its main responsibility will be to review applications for grants according to the CAP. public. The respective organizations will and to monitor use of the grants. No grant will from the government departments, NGO community, women s groups and the general have a balanced representation of the various be made from the fund unless recommended by year. The allocation of grants from the fund shall be neither its prerogative nor its responsibility. for the fund; will commission and consider the The board will be the policymaking body audit reports; and review annual reports. It will This is to save the Chief Minister and Ministers meet as often as necessary but at least twice a from undue political pressures for grants from the fund. govern the fund. Planning and Development, Chief Secretary, each from the Chamber of Commerce and Environment, Minister for Finance, Minister for Additional Chief Secretary, Secretary of Envi ronment, Finance Secretary, two representatives Industry, the NGOs Coalition, and donors, will 104 Profiles ofthe NEFS: North West Frontier Province, Pakistan responsible for those will also collect the new levy. mechanisms. Thus, it is an addition to the existing levies, and the departments > The levy should not require new collection environmental degradation should pay; ability to pay and who are contributing to > People and organizations who have the common person; > The burden of the levy should not be on the sustainable use of the province s resources to protect the environment, encourage rehabilitation projects and programs; and raise funds to finance environmental > The main purpose of the environment tax is view: the levy, the following considerations are kept in While determining the items and rates of per year is envisaged from this source. make a grant to the fund each year. Eventually, an allocation of US$.49 million annually. This will mark the beginning of the fund. Subsequently, the net of environment levies will be expanded. These levies will be expected to generate about US$.35 million collected by the Finance Department that will 2. An environment tax to be levied. This is years. envisages an allocation of US$.27 million for Development Program (ADP) which Phase I and similar allocations in subsequent 1. Contribution from the provincial Annual sources in three to five years. Funding for FSD is anticipated from three main sources: million will be raised for the fund from different V. Funding

from donors through grants and debt-swaps; from the Federal Government, international VI. Fundraising It will receive and spend funds on a recurrent See above.

All grants from disbursed according to an approved annual basis. and individuals. donors and other interested organizations FSD will essentially be a revolving fund. VII.

The fund will be Development Program, donors, and individuals the audit will be independently reviewed by the Auditor General of Pakistan, the CAP and the incorporating the results of annual audit of

3 from donors through grants and debt-swaps; from the Federal Government, international VI. Fundraising It will receive and spend funds on a recurrent See above. The fund will have a separate account administered by the Executive Director, under the overall guidance and supervision of the Sustainable Development Board. All grants from disbursed according to an approved annual basis. and individuals. donors and other interested organizations FSD will essentially be a revolving fund. VII. Investment Policy the Finance Department, Public Sector Annual budget. will be credited to this account. The fund will be Development Program, donors, and individuals the audit will be independently reviewed by the Auditor General of Pakistan, the CAP and the incorporating the results of annual audit of accounts and performance evaluation. as securities. in profitable but readily accessible ventures such The surplus of the fund may be invested The fund will be audited annually by a certified Chartered Accountant. The report of board. The FSD will publish an annual report interest of transparency. This report will be widely circulated in the NWFP-FSD has a direct linkage with the recommendations ofncs and SPCS as under way through the SPCS, the Social Action Programs, and other initiatives to improve and strengthen the processes for strategic planning organizations may also draw on the fund for Therefore, FSD forms an integral part of the linked to other major development initiatives. enshrined in the Five-Year Plan. It is also closely sustainable development program of the IX. Criteria for Grants professional associations, business organizations, provided the latter are in a lead role. Conflict of interest rules will be put in place to prevent board and CAF representatives from participating in decisions about their own approaches and priorities stipulated inthe the following aspects of environment: Eligibility: NGOs, research institutions, and institutional reforms in the Government. eligible to apply to the fund. The government province. The fund aims to reinforce efforts already community organizations, and others will be board. applications. appraisal of requests for grants by the CAP shall be consistent with the aims, objectives, Sarhad Provincial Conservation Strategy (SPCS). These would include: from the fund should address one or more of A. The projects and programs seeking support Funding Criteria: The criteria guiding the Funding Limits: To be determined by the 3. Major contributions to the fund will come 4. The FSD will also be open for contributions Plans VIII. Relation to National Environmental joint projects with NGOs or the private sector, I I Profiles ofthe NEES: North West Frontier Province, Pakistan 105

> Municipal and hospital waste disposal; proposed project; access to technical capacity to implement the use and conservation; similar projects in the past and/or proven >- Poverty alleviation

Track record of successful completion of resources; evidence of lack of alternative source of with CAP, will undertake regular monitoring of funding to avoid duplication and waste of the projects.

4 > Municipal and hospital waste disposal; proposed project; access to technical capacity to implement the use and conservation; similar projects in the past and/or proven >- Poverty alleviation involving natural resource D. Track record of successful completion of resources; evidence of lack of alternative source of with CAP, will undertake regular monitoring of funding to avoid duplication and waste of the projects. This will essentially be directed C. Demonstrated need for the project and the The Executive Director, in consultation The criteria for selection must be clearly environmental laws; application form. All those who apply must inputs and to assume operation and the fund itself is yet to be established. receive a response. Unsuccessful applicants non-selection of their projects. to provide counterpart funds or material No disbursements have been made as yet; maintenance responsibility in the post project period; XI. Monitoring and Evaluation System B. The willingness and ability of the applicants X. Disbursements to Date > Improving enforcement and compliance with spelled out and should form a part of the > Mass awareness. > Environmental emergencies; and must be conveyed detailed reasons for the > Population welfare; 3. The approval process must be transparent. > Improving social services; months; > Industrial pollution; power to sanction and release the grant. > Archeological and cultural conservation; two months to review the applications that the Executive Director should have full The CAP should meet, at least once every > Noise and air pollution; eligibility and framed its recommendations, quick. Once the CAP has determined may have been received in the preceding Soil and water conservation; 2. The approval process should be simple and 1. The application forms should be simple, > Biodiversity conservation; approval procedures. This shall be guided by > Resource rehabilitation and reclamation; standardized and easily available; The CAP will design the application and > Environmental health (clean drinking water, > Energy conservation; F. Any other criteria determined by the board. including urban forestry; sanitation); Application and Approval Procedure: > Afforestation and forest conservation job creation, etc.); importance (e.g. private sector involvement, three considerations: ) Recycling and waste minimization; E. Innovative projects and projects of strategic 106 Profiles ofthe NEFS: North West Frontier Province, Pakistan

5 Profiles ofthe NEFS: North West Frontier Province, Pakistan 107 towards ensuring that the purposes for which the grants are made are achieved. The monitoring will be carried out by CAP or any of its sub-committees. Where prudent, independent monitors would be commissioned. In addition, the fund and its activities would be evaluated annually to determine whether the FSD and its operations are making the desired impact, and to provide a basis for the board to adjust FSD policies accordingly. XII. Auditing Requirements The fund will be audited by a certified Chartered Accountant annually within six months of the close of the financial year. The report of the audit will be independently reviewed by the Auditor -General of Pakistan, the CAP and the board. XIII. XIV. Computer Resources and Capabilities To be acquired. Perceived Needs The establishment of the fund will require legislative underpinning, detailed operational procedures. specialized funds management and training in hinds management, and of course, fund inz. XV. Notable Accomplishments The initiation of the fund has attracted widespread support and enthusiasm and is responsible for the initiation of a similar proposal at a Federal level. XVI. Other Challenges Other challenges include the mobilization of local financial support from non-donors, the minimization of political interference, the maintenance of transparency, and the monitoring of the utilization of disbursements. Contact Persons Mr. Mohammed Rafiq Director IUCN Peshawar 2 Islamia Road Opposite Jan s Arcade Peshawar Cantt, Peshawar, Pakistan Tel: ( ) / Fax: ( ) rafiqiucn-pwr.pwr. sdnpk.undp.org Ms. Nelma Akhund Director, Business and Law Unit IUCN Karachi 1 Bath Island Road Karachi , Pakistan Tel: (92-021) / Fax: (92-021) baliucn.khi.sdnpk.unpd.org

Thailand Environmental Fund by Krisana Choeypun

Profiles ofthe NEFS: Thailand 133 Thailand Environmental Fund by Krisana Choeypun I. Background/History Thailand, with an economy expanding at an annual rate of 7% to 8%, has emerged as one of the world