Programme Document Environmental Sector Programme Support. Tanzania

Transcription

1 Government of Tanzania GoT Danish Ministry of Foreign Affairs Danida Programme Document Environmental Sector Programme Support Tanzania Ref. No. 104.Tanzania.1.MIKA.29 January 2007

2 COVER PAGE Country: Tanzania Title: Environmental Sector Programme Support Cooperating Agencies Vice President s Office (VPO), Division of Environment (DoE) Prime Minister s Office, Regional Administration and Local Government (PMO-RALG) Ministry of Natural Resources and Tourism (MNRT), Forestry and Beekeeping Division (FBD) Duration: Five Years Starting Date: 1 July 2007 Overall Budget: DKK 180 million Danida s Environment Sector Programme Support (ESPS) from July 2007 to June 2012 has following development objective: Sustainable management of Tanzania s natural resources and environment contributing to growth and income poverty reduction, to social well being, and to improved governance and accountability. ESPS will comprise the following components: 1. Environmental Management Act Implementation Support Programme (EISP); 2. Urban Development and Environmental Management Framework (UDEM Framework); 3. Participatory Forest Management Programme (PFM Programme). The ESPS will take advantage of the momentum gained with the successful mainstreaming of environment in the Government of Tanzania s (GoT) National Strategy for Growth and Reduction of Poverty (MKUKUTA, and with the passing of the Environmental Management Act (EMA). ESPS will balance interventions between natural resources management and urban environmental management, will link policy & strategy with implementation in the field, and will consolidate and sustain achievements made so far. Danida s assistance will contribute substantially to launching and implementing the EISP and the UDEM Framework and further developing the PFM Programme. ESPS will include funding for harmonisation and alignment, incl. Danida s lead role in the sector, and for strategic support to Civil Society. The management of the EMA, UDEM and PFM components is fully integrated into the GoT institutional structures. The Danida and other Development Partners (DP) funds for EISP, UDEM and PFM (at a later stage) will be routed through basket fund arrangements, and management will be informed by Memorandum of Understandings (MoUs), to be developed in the inception phase. Signatures For Danida For Government of Tanzania i

3 Table of Contents ii

4 List of Abbreviations ALAT CAG CBF CBFM CBG CBO CCM CDG CEO CSO CPAR CSRP Danida DfID DIMS DKK DLG DLS DoE DP DPG DPG-E DPP DSC D-by-D EAC EC EIA EIU EISP EMA EMIS EPM ESPS EWG FAO FBD FCS FY GDP GoT GTZ HBS HIPC HIV/AIDS HLG HSD Association of Local Authorities in Tanzania Controller and Audit General Common Basket Fund Community Based Forest Management Capacity Building Grant Community Based Organisations Chama Cha Mapinduci Common Development Grant Chief Executive Officer Civil Society Organisation Country Procurement Assessment Report Civil Service Reform Programme Danish International Development Assistance Department for International Development (UK) Division of Information Management Systems Danish Kroner Division of Local Government Division of Legal Services Division of Environment Development Partners Development Partner Group DP Group-Environment and Natural Resources Division of Policy and Planning Division of Sector Coordination Decentralisation by Devolution East African Community European Commission Environmental Impact Assessment Economist Intelligence Unit Implementation Support Programme Environmental Management Act Environmental Management Information Systems Environmental Planning and Management Environmental Sector Programme Support Environment Working Group Food and Agriculture Organisation The Forestry and Beekeeping Division Foundation for Civil Society Financial Year Gross Development Product Government of Tanzania German Technical Cooperation Household Budget Survey Heavily Indebted Poor Countries Human Immune-Deficiency Virus / Acquired Immune-Deficiency Syndrome Higher-level Local Governments Human Settlement Division iii

5 ICDP IDA IFMS IFP ILO IMF IMTC INGO JAS JAST JFM LDS LFA LGA LGCDG LGRP LGSP LLG LoI LVEMP M&E MCDGC MDA MDGs MFA MIS MLHHSD MKUKUTA MMS MNRT MoF MoU MoW MPEE MSD MTEF MTP MTRPS NAPA NEAC NEAP NEMC NEP NFP NGO Norad NPAC NPRS NRM International Conference for Population Development International Development Agency Integrated Financial Management System Indicative Planning Figure International Labour Organisation International Monetary Fund Inter-Ministerial Technical Committee International Non-Government Organisation Joint Assistance Strategy Joint Assistance Strategy, Tanzania Joint Forest Management Land Development Services Logical Framework Approach Local Government Authority Local Government Capital Development Grant Local Government Reform Programme Local Government Support Programme (WB) Lower-Level Government Letter of Intent Lake Victoria Environmental Management Project Monitoring & Evaluation Ministry of Community Development, Gender and Children Ministry, Departments and Agencies Millennium Development Goals Ministry of Foreign Affairs Management Information System Ministry of Lands, Housing and Human Settlement Development Swahili acronym for: National Strategy for Growth and Reduction of Poverty MKUKUTA Monitoring Systems Ministry of Natural Resources and Tourism Ministry of Finance Memorandum of Understanding Ministry of Water Ministry of Planning, Economy and Empowerment Mapping and Surveys Division Medium Term Expenditure Framework Medium Term Plan Medium-Term Pay Reform Strategy National Adaptation Programme of Action National Environmental Advisory Committee National Environmental Action Plan National Environment Management Council National Environmental Policy National Forest Programme Non Governmental Organisation The Norwegian Agency for Development Cooperation National Programme Advisory committee National Poverty Reduction Strategy Natural Resources Management iv

6 NSGD NSGRP NSoR NWWG O&M O&OD OC PBG PE PEFAR PER PHDR PFM PFMRP PMO-RALG PMS PO-PSM PPRA PRGF PRS PS PSI PSRP RDE RS SADC SASE SBAS SEA Sida SIMMORS SoER SP SUALDWC SUDP SWAp SWM TA TACAIDS TAS TASAF TFCMP TFS TI ToR ToT TRA National Strategy for Gender Development National Strategy for Growth and Reduction of Poverty National State of Environment Report National Wetlands Working Group Operation & Maintenance Opportunities & Obstacles to Development Other Charges Plan and Budget Guidelines Personnel Emoluments Public Expenditure and Financial Accountability Review Public Expenditure Review of Environment Poverty and Human Development Report Participatory Forest Management Public Financial Management Programme Prime Minister s Office, Regional Administrations and Local Governments Poverty Management System President s Office, Public Service Management Public Procurement Regulatory Authority Poverty Reduction and Growth Facility Poverty Reduction Strategy Permanent Secretary Policy Support Instrument Public Service Reform Programme Royal Danish Embassy Regional Secretariat Southern Africa Development Community Selective Accelerated Salary Enhancement Strategic Budget Allocation System Strategic Environmental Assessment Swedish International Development Assistance Sustainable and Integrated Management of the Malagarasi-Muyovosi Ramsar Site State of the Environment Report Strategic Plan Strategy for Urgent Action on Land Degradation and Water Catchments Strategic Urban Development Plan Sector Wide Approach Sustainable Wetlands Management Technical Assistance Tanzania Commission for AIDS Technical Assistance Strategy Tanzania Social Action Fund Tanzanian Forest Conservation and Management Programme Tanzania Forest Services Transparency International Terms of Reference Training of Trainers Tanzania Revenue Authority v

7 TZS UCLAS UDEM UDEMG UDMP UEM UN UNDP UN-Habitat UNIDO USD VPO WB WD-WU WG WMA WWF Tanzanian Shilling University College of Lands and Architectural Studies, Dar es Salaam Urban Development and Environmental Management UDEM-Capital Grant Urban Development Management Policy Urban Environmental Management United Nations United Nations Development Programme United Nations Habitat United Nations Industrial Development Organisation United States Dollars Vice President s Office World Bank Wildlife Division-Wetlands Unit Working Group Wildlife Management Areas Worldwide Fund for Nature vi

8 EXECUTIVE SUMMARY Background Danida has provided support to the environment sector since the 1980, which intensified in the late 1990ies. The main elements of the current support are concerned with Urban Environmental Management (UEM), Participatory Forest Management (PFM), and Sustainable Wetlands Management (SWM). A number of reviews of the current support were conducted during 2005 to feed into the preparation of Danida s continued support to the environment sector. A Concept Note was prepared in January 2006 that outlined the intended scope for a new programme. Following discussions with the Government of Tanzania (GoT) and in Danida internally it was agreed that Danida s Environment Sector Programme Support (ESPS) from July 2007 to June 2012 should comprise the following components: Environmental Management Act Implementation Support Programme (EMA- ISP); Urban Development and Environmental Management Framework (UDEM Framework); Participatory Forest Management Programme (PFM Programme). The EMA-ISP is a new Component supporting the implementation of the Environment Management Act, The UDEM Component replaces the projectbased support to selected urban centres with support that is fed into GoT s new UDEM Framework. The PFM Component is a continuation of the existing component that has been extended to June 2009 within the current budget frame, but will receive additional funding for the remaining programme period under the ESPS. It was decided not to include the support to SWM in the ESPS, but to let it continue on the basis of the already agreed format. The SWM Component has been extended till June 2011 within the agreed budget frame. GoT has since the early 1990s embarked on a number of reform programmes. These gained momentum during the second half of the 1990s and has since year 2000 been guided by the poverty reduction strategies. The key reforms are: Public Financial Management Reform; Legal Sector Reform; Public Service Reform; Civil Service Reform; and Local Government Reform. It became apparent that local government a sizable segment of the public service needed separate attention. The GoT and its DPs developed the Local Government Reform Agenda Subsequently in 1998, GoT published its Policy Paper on Local Government Reform that was termed Decentralisation by Devolution (D-by- D). It has been recognised that D-by-D requires a fundamental change in the way government carries out its business, that it has implications for all ministries, and requires harmonisation of national policies and major reforms. A new Local Government Authority (LGA) formula-based recurrent grant system was introduced beginning from FY and followed by a new block development grant system, the Local Government Capital Development Grant (LGCDG). Each LGA is also allocated a discretionary capacity building grant (CBG). The LGCDG and CBG are provided on an annual basis. The LGCDG and CBG are only transferred vii

9 to LGAs that fulfil a set of minimum conditions. The yearly LGCDG will be adjusted based on an assessment of the LGA s performance of its functions. The LGCDG annual allocation will be adjusted based on the performance either upwards or downwards. From 2005, the national development agenda is stated in: 1) the Tanzania Development Vision 2025; and 2) the National Strategy for Growth and Reduction of Poverty (NSGRP MKUKUTA, the Swahili acronym). The MKUKUTA aims at poverty reduction through three broad outcomes, which all link to the environment: 1) Growth and reduction of income poverty; 2) Improved quality of life and social well being; and 3) Good governance and accountability. MKUKUTA emphasises mainstreaming of environment and poverty-environment linkages into all sectors. The MKUKUTA acknowledges that the link between poverty and environment has relevance in each of the three outcomes: 1) growth and reduction of poverty mentions improvement in access and ability to use productive assets such as natural resources; 2) quality of life and social wellbeing refer to environmental protection and sustainable use of natural resources; and 3) governance and accountability mentions the transparent and accountable use of natural resources. In spite of stable GDP growth for several years in Tanzania (averaging about 6.8% during the last five years), the basic needs poverty only decreased from 38.6 to 35.7% from 1991/92 to 2000/01. The WB estimates that Tanzania needs a growth rate at around 6% per year to half poverty by The aim to halve poverty by 2010 will require GDP annual growth rates in the range of 8%. However, despite a pick-up in growth, Tanzania remains a very poor country even by the standards of Sub-Saharan Africa. Since 2001, the annual national average population increase is estimated at about 2% and the urban population in the range of 6%. With these growth rates, the urban population will increase from around 8.0 million in 2001 to 13.4 million in 2010 and in 2010 constitute 32% of the total population and the rural population from 26.6 million in 2001 to 27.9 million in 2010 and in 2010 constitute 68% of the total population. Although considerable, the contribution from natural resources to Tanzania s economic growth and poverty reduction is largely unacknowledged. It is generally difficult to predict the growth potential of the natural resources, as the knowledge about the abundance, value, and current exploitation is limited. Although natural resources are fundamental to the economy and rural and urban peoples livelihood, the development potential is often underestimated. This underestimation is partly caused by missing market mechanisms, including pricing below the market values. The contributions to Tanzania s development from natural resources could be larger and benefit more people if natural resources were managed in a more sustainable and equitable manner, building on principles of good governance. Though policies and the legal framework is largely in place, there is a wide gap between policy and planning, and action on the ground. The increasing urbanisation places correspondingly increasing strains on urban-rural relations: 1) as the supply from the rural to the urban areas of food, energy, construction materials, and natural resources inputs to manufacturing increase; and 2) viii

10 as pollution levels increase as a consequence of having expanded urban economic and social activities, which in turn also have negative impacts on the environment outside the urban areas. The high rate of urbanisation constitutes particular environmental challenges concerned with problems from industrial pollution and health hazards due to poor sanitation, stormwater drainage and solid waste management. With the passing of the Environmental Management Act in 2004 (which became effective in July 2005) and other legal and policy provisions, there is a good framework for environmental planning, management, and enforcement. Since the enactment of EMA in 2005, progress has been slow in establishing environment sections in sector ministries and there has been limited progress in harmonising policies, legislation and regulations except for a few MDAs The challenge is to make use of the environmental management framework in order to attain substantial and visible effects on the state of environment. This will require substantial capacity building, institutional development, and development of inter-institutional relations. The water and energy crisis in early 2006 underscored the need for macro level environmental management and coordination between Ministries, Departments and Agencies (MDAs). In response to the crisis, GoT adopted the Strategy for Urgent Action on Land Degradation and Water Catchments. The Minster of State for Environment within the Vice President s Office (VPO) is overall responsible for matters relating to environment. The two core institutions for environmental management in Tanzania under the auspices of VPO are: Department of Environment (DoE) responsible for environmental policies, coordination, state of the environment reports and environmental action plans; and the National Environmental Management Council (NEMC) responsible for enforcement, compliance, review of environmental impact assessments, and research and studies. In accordance with EMA s stipulations, each sector ministry shall establish an environmental section, which shall ensure compliance with the environmental management requirements. Regional Secretariats shall be responsible for coordination of all advice on environmental management in their respective regions and liaise with DoE and NEMC on the implementation and enforcement of EMA. Each LGA shall establish an environment management committee and designate an environmental management officer. The Prime Minister s Office, Regional Administration and Local Government (PMO-RALG) provides the interface between LGAs and sector ministries via the Regional Secretariats. The Environment Working Group (EWG) is the government-led, national level forum for policy and strategy discussions and coordination of GoT and development partner (DP) interventions. The EWG acts as the critical link between the environment sector and national policy, planning and monitoring processes including representation of the environment sector in MKUKUTA s three cluster groups. The active development partners for environment form a group referred to as DP Group-Environment and Natural Resources (DPG-E). Danida currently holds the chairmanship for the DPG-E. The DPG-E has elaborated an overview on how DPs distribute their environmental assistance to regions and districts. All regions receive some assistance and 94 out of 120 districts receive assistance. The overall picture is that development assistance is very unevenly distributed nationwide among the ix

11 regions/districts. Almost all DPs support the green environmental sub-sector; the blue sub-sector is primarily supported the multilateral DPs (WB and EC); and UN Habitat and Denmark largely cover the brown sub-sector. The civil society s roles in environment and natural resources management are articulated in EMA, in many government policies, and in public sector reforms. The environment sector civil society in Tanzania is developing, but is in the present situation relatively weak in terms of resources and capacity. The civil society has a huge potential role in service delivery and advocacy in the environment sector. The private sector is primarily involved in construction of investment projects through competitive bidding, but could also be involved in public-private partnerships concerned with provision of public services and maintenance of public infrastructure. GoT has formulated the Joint Assistance Strategy (JAS) for Tanzania which links up to the Paris Declaration on Aid Effectiveness and the MKUKUTA. GoT will work towards a more effective division of labour, cooperation and coordination among and between MDAs, Regions and LGAs. It will do so by taking into account the principle of subsidiarity. Objectives The overall ESPS development objective is: Sustainable management of Tanzania s natural resources and environment contributing to growth and income poverty reduction, to social wellbeing, and to improved governance and accountability. Objectives of the EISP The development objective of the EISP is: State of Environment in Tanzania improved through implementation of EMA, contributing to growth and income poverty reduction, social well being, and improved governance and accountability The immediate objectives of the EISP are: 1) Coordination of environmental management in Tanzania improved; and 2) Effective implementation of environmental mandates. Objectives of the UDEM The development objective of the UDEM is: Improved living conditions of the urban communities in Tanzania by facilitating decentralised implementation and monitoring of sustainable urban development and environmental management in the Local Government Authorities sector. The immediate objectives of the UDEM are: 1) To provide coordinated financial and technical assistance to relevant LGA sector institutions at the national and Regional levels to create an enabling atmosphere for implementation and monitoring of urban development and environmental management activities at the local levels through a supportive legal and policy framework; x

12 2) To provide nationally compatible assistance for the effective management of the supply and demand sides of capacity building of relevant stakeholders at both national and urban local government levels to facilitate the implementation of local level UDEM initiatives; 3) To provide financing to national and local level LGA sector institutions to operationalise a UDEM supportive national Local Government sector and enable LGAs to make investments in improved urban development and environmental management through nationally compatible intergovernmental transfers. Objectives of the PFM The development objective is: Improved and sustainable management of Tanzania s diverse forests and woodlands resources contributing to the maintenance and development of sustainable livelihoods especially among the poor rural communities. The immediate objectives are: 1) A national framework for PFM under implementation 2) PFM developed and operational in selected districts in four regions. Outputs ESIP The outputs that will be achieved by the EISP are summarised below: Focus area Outputs related to immediate objective 1 Environment Policy and Planning Environment Assessment Environment Reporting, monitoring, enforcement Environment Information and awareness EMA associated regulations, standards, guidelines and manuals prepared and disseminated to implementing institutions National Environment Advisory Committee established; National Environment Fund established EIA and SEA experts registered, EIAs and Strategic Environmental Assessments (SEAs) reviewed and acted upon; and Environmental audits conducted Central Environmental Information System established and State of the Environment Reports prepared and disseminated; Environmental inspectors, Analysts, and Reference Analysts designated/appointed; Environment Appeals Tribunal established and functioning Awareness of EMA and Multilateral Environmental Agreements amongst all stakeholders increased. xi

13 Focus area Outputs related to immediate objective 2 Environment Policy and Planning Environment Assessment Environment Reporting, monitoring, enforcement Environment Information and awareness EMA mandates specified and internalised within implementing partners; Environment sections and committees established (reviewed, where they exists) in Ministries, Departments, Agencies (MDAs) and Loal Government Authorities (LGAs) Sector specific and LGA environmental action plans/strategies developed, implemented and monitored; Sector legislation, policies, strategies, plans/strategies reviewed and harmonised, and implemented where necessary Sector specific EIA guidelines produced (reviewed if in place) and implemented for approval; Compliance inspections conducted; SEAs of legislation, policies, strategies, plans and programmes conducted and submitted for approval Sector and LGA (consolidated report from PMO-RALG) State of Environment reporting system established; and reports produced and disseminated; Information on EMA and sector specific implications disseminated to all stakeholders in respective sectors; Information on EMA disseminated to regions, LGAs, wards, mtaas and kitongojis. UDEM The outputs that will be achieved by the UDEM are summarised below: Component/ sub component National Level Component Sub-component - National Policy and Legal Framework National Level Component Sub-component - National Level Capacity Building LGA Level Capacity Building Component UDEM Funding Framework Outputs Output 1: Framework consolidated through insertion of the framework in Medium Term Expenditure Frameworks (MTEFs) & pre studies for the Urban Development Management Policy (UDMP) Output 2: Existing laws, guidelines and strategies harmonised Output 3: Urban Development Management Policy (UDMP) developed Output 4: sustainable long term responsiveness to LGAs operational Output 1: Capacity of national level institutions to serve LGAs for UDEM enhanced Output 2: Platform to coordinate and enhance all national efforts strengthened and operational Output 1: Capacity Building Grant (CBG) for UDEM established and operational Output 2: Improved implementation of UDEM activities in LGAs through increased capacity for using the Environmental Planning and Management (EPM) process Output 1: National level Common Basket Fund (CBF) established and operational Output 2: UDEM Capital Development Grant (CDG) established and operational Output 3: Utilisation of other sources of funds for UDEM activities promoted xii

14 PFM The outputs of the PFM, related to the immediate objectives, are summarised in the table below: # Output 1.1 A national framework for PFM implementation developed and institutionalised. 1.2 Applied research and development to facilitate PFM supported. 1.3 National PFM monitoring system developed and dovetailed to Poverty Monitoring Master Plan, National Forest Programme (NFP) and Local Government Reform Programme (LGRP). 1.4 Manual of PFM best practices based on simple and practical handbooks developed and published. 2.1 Local Government Authority human resources capacity and financial ability to support PFM enhanced. 2.2 Village, sub-village and user group committees promoted and strengthened to support implementation of PFM. 2.3 PFM plans in selected districts developed and under implementation. 2.4 Private forestry initiatives enhanced. Cross cutting issues The MDAs and LGAs are responsible for environment and gender mainstreaming, for initiating efforts to respond to HIV/AIDS, and for good governance in their institutions. The MDAs and LGAs have committees and staff dealing specifically with environment, gender and HIV/AIDS interventions, which are incorporated in their Strategic Plan and MTEF and which are subject to reporting and monitoring. If the need for corrective measures, e.g. in the case of an EMA activity, arises, the relevant focal points or sections will resolve what measures should be applied. Implementation of SUALDWC will be a test of how good governance is as there will be a need to balance environment requirements with human welfare/rights and adherence to environmental laws as well as resettlement laws. Sustainability and replicability issues The implementation of EMA, UDEM and PFM will take place within existing government structures and mandates, which will enhance sustainability significantly. Sustainability within the EMA component will furthermore be promoted by ensuring that environment sections in MDAs are properly established, staffed, equipped, and that environmental management functions are well conceived and not least that they continue to be well undertaken. There will be considerable scope for replication, as the EMA implementation will be undertaken in phases and batches. When all MDAs and LGAs have implemented the initial requirements, there will be a need for continuing refinements of EMA implementation. Regarding the local level activities, sustainability will be promoted by facilitating that investment projects are properly conceived, relevant and well designed. Emphasis will be placed on LGAs undertaking their own internal appraisal and approval procedures. Sustainability will, furthermore, be promoted by developing and sustaining LGAs corporate competence in urban planning, development and environmental management. Regarding the national level activities within the UDEM component, sustainability will be enhanced by developing a comprehensive long-term UDP that provides xiii

15 effective directions for urbanisation at national and local levels; and integrating development interventions into GoT s planning, budgeting, accounting and reporting systems. There will be considerable scope for replication, as more LGA s qualify and as the need for investment in urban LGAs is enormous. Best practice cases will continue to be documented based on the positive experiences gained that will help inform procedures and guidelines for new eligible LGAs wanting to access the UDEM grant. The UDEM Framework should, according to Danida, be seen as a medium term intervention, addressing the urban environmental challenges, which are not fully accommodated in the current policy, capacity building, and investment frameworks. The grants may at a later stage be fully integrated in the LGCDG and LGCBG. When the policy is in place and institutional mandates for servicing LGAs in this field are fulfilled, the need for a specific earmarked national level support may dissolve. Sustainability within the PFM component will be promoted by use of participatory approaches that will increase the effectiveness of collective action and that respond to the core interests of the communities in the vicinity of forest areas. Sustainability is further enhanced by improved regulation from the public sector. Replicability is enhanced by the emerging sector wide approaches which will allow unimpeded transfer of good demonstrations throughout the country. Management arrangements GoT-DP MoUs regarding EISP, UDEM Framework, and NFP SWAp basket will be developed, and they will include detailed specifications on management, on planning and budgeting, on fund transfers, on procurement, on reporting and accounting, and on auditing. This section is thus giving a preliminary presentation of the implementation modalities. The table summarises the implementation arrangements, which are further described in the specific component descriptions. Implementation Arrangements ESPS components Roles EMA UDEM PFM Executing & VPO-DoE & NEMC PMO-RALG FBD, MNRT Coordinating institution Cooperating MDAs (selected) incl. MLHSSD, VPO-NEMC, PMO-RALG, LGAs Institutions PMO-RALG LGAs Steering Committee(s) EWG Funding mechanism Funding channel UDEM Steering Committee (SC), LGCDG Steering Committee and Technical Committee PFM working group under SWAp Steering Committee) Basket Basket Continued component. After 2009 basket Satellite account in Satellite account in Disbursed to FBD and PMOtreasury, release based treasury, release based on RALG based on request, on on EWG approved SC approved work plans a grant basis. Manual work plans and budgets and budgets (including for available the grants) Planning mechanism Use of GoT planning mechanism. Extracted Use of GoT planning mechanism. Extracted and Use of GoT planning mechanism. Extracted and xiv

16 Roles EMA UDEM PFM and aggregated work plans and budgets, based on respective institutions related activities and budgets, produced by VPO-DoE. First year allowing activities outside MTEF aggregated work plans and budgets, based on respective institutions related activities and budgets, produced by PMO-RALG Use of GoT planning mechanism integration in aggregated work plans and budgets, based on respective institutions related activities and budgets, produced by FBD. Use of GoT planning mechanism at local level as well - integration in LGA Reporting mechanism TA Use of GoT reporting mechanism. Extracted aggregated physical and financial report, based on respective institutions reports, produced by VPO-DoE Procured by respective institutions using GoT rules. First 1½ year short term continous TA procured by RDE, from Programme Management budget LGA development plans Use of GoT reporting mechanism. Extracted aggregated physical and financial report, based on respective institutions reports, produced by PMO- RALG. PMO-RALG also extracts and aggregates LGA reporting Procured by respective institutions using GoT rules. Danida Technical Adviser first 2 years development plans Use of GoT reporting mechanism. Extracted aggregated physical and financial report, based on respective institutions reports, produced by FBD Specific mechanism for reporting from local level to PFM working group. Services procured by FBD using GoT rules, goods procured through Crown Agent, Danida Technical and Financial Adviser - all until After 2009 all procurement by GoT Transfer and channelling of funds The Danida and other DP funds for EISP, UDEM and later on the PFM will be routed through basket fund arrangements via the Ministry of Finance (MoF) Exchequer System thus enabling the transfers to be recorded in the Integrated Financial Management System. The DPs will indicate their funding commitments well in advance to ensure that budget preparation can take place based on predictable DP contributions to allow MTEF budget ceilings to be realistically set. For EISP and UDEM Framework each implementing institution will identify the relevant activities to be included in their annual plans and budgets in their MTEF. The executing institution, meaning VPO-DoE and PMO-RALG, will prepare annual aggregated budgets and work plans, based on the implementing institutions annual plans and budgets. The aggregated plans and budgets will thus constitute extracts of the MTEF, and will be submitted to the Steering Committees for endorsement. After the flow of funds and the decision making, accounting, financial reporting and auditing mechanisms, there will follow the GoT standards. The planning and budgeting in the PFM component is already expressed in manuals, incl. a recently approved manual for district PFM funding, developed by MoF, PMO- RALG, and FBD, and building upon the existing GoT system. Budget The overall budget for the Danida contribution is shown below: xv

17 Total 1 EMA Component UDEM Component 3 PFM Component ESPS Management 5 Unallocated Funds Total Assumptions and risks There are 9 formal assumptions that pertain to the EISP and UDEM components: The public sector reforms in Tanzania successfully increase the effectiveness of the civil service. The capacity of the LGAs is sufficient to fulfil the conditions of the capital grant, make use of the capacity grant and ensure adequate operation and maintenance. Central government institutions are able to focus on their facilitating and regulatory role and allow LGAs to assume the implementation role. Development partners provide sufficient funding and channel their funds through the UDEM framework. Urban communities will actively participate in the planning and implementing of the UDEM activities. Increased commitment, by DoE and NEMC, to implementation of EMA. Increased commitment by MDAs to implementation of EMA Increased management capacity in DoE/NEMC to coordinate the implementation of EMA. Continuing political support for environmental management. The major risk factors listed below these risk factors are considered pivotal, the main document and the component description give a fuller list: The public sector is overwhelmed by the number of reforms and is unable to complete them. Vested interests work against the public sector reforms e.g. in decentralisation and the process takes much longer than envisaged. Political instability at local government level which means that longer term urbanisation challenges are not addressed. Presence of more urgent problems and challenges in the MDA and LGAs so that environment is placed on a lower priority. PMO-RALG / DoE do not have sufficient capacity to coordinate and manage the UDEM/EISP. The EISP and UDEM framework do not attract sufficient donors and donors are not stable in their cooperation and change focus before allowing results to be consolidated. xvi

18 The main assumption/ risk associated with the PFM Component is that the transaction costs of engagement in PFM are high, making more unsustainable forest management more attractive. Monitoring Monitoring of the ESPS will take place at objective, output, and process level and use existing monitoring systems as shown below: Level EISP Existing monitoring system UDEM Objective/ outcome MKUKUTA Output MTEF annual and 3 year strategic level for each budget holding entity Process EWG assessment CDG performance measures Thus no new monitoring system will be set up for the ESPs and the EMA and UDEM components, neither by the government nor by donors supporting the EISP. The outcomes will be monitored using the MKUKUTA indicators and monitoring systems. The key indicators in MKUKUTA that relate to the EISP are shown in the table below. Poverty-environment indicators and relations to the ESPS Cluster/Goal Indicator EMA UDEM PFM Cluster1/Goal 2* Proportion of enterprises undertaking EIAs X X complying with standards. Cluster1/ Goal 5* % of households whose main income is derived X from harvesting, processing and marketing of natural resources products. Cluster 1/ Goal 6* % of households in rural and urban areas using X X alternative sources of energy to wood fuel (including charcoal) as their main source of energy for cooking. Cluster2/ Goal 3* Proportion of population with access to piped X water as their main drinking water source. Cluster2/ Goal 3* % of households with basic sanitation facilities. X Cluster2/ Goal 3* % of schools having adequate sanitation facilities. X Cluster2/ Goal 3* No of reported cholera cases X Cluster2/ Goal 3* Total area managed by mandated local institution X for the purposes of community based natural resources management. Cluster3/ Goal 1* % of female small holder households with land X X ownership or customary rights. Cluster 3/ Goal 2* Total value of revenues received from concessions and licences for mining, forestry, fishing and wildlife as % of their estimated economic value. X X Specific target setting has been done in MKUKUTA, e.g. the target for households with basic sanitation facilities is 95% by Detailed indicators at output and process level are given in the component descriptions. xvii

19 Part I: Background and Context 1. INTRODUCTION Danida has provided support to the environment sector in Tanzania since the 1980s. The support intensified in the late 1990 ies. An Environment Programme Document was prepared for the period to guide the strategic considerations. Projects were the preferred modality for Danida interventions at the time, but all ongoing projects will cease during The support to PFM was structured as a component in 2003 adhering to the programmatic approach. Similarly, the support to Sustainable Wetlands Management (SWM) was formulated as a component in The Danish support to the Sustainable Cities Programme continued as projects for each of the six selected municipalities. It was decided not to prepare a new Programme Document for the Danish environmental assistance replacing the Document. A number of reviews were concluded during 2005 to feed into the preparation of the continued support to the environment sector: 1) Participatory Forestry Management Programme 1 ; 2) Support to Sustainable Cities Programme 2 ; and 3) Sustainable and Integrated Wetlands Management 3. The Government of Tanzania has undertaken a needs assessment in relation to the Environmental Management Act (EMA, 2004), which also highlights lessons learned in capacity building in the sector, and points at ways forward. Finally, the European Commission has recently finalised a sector review, which also provides useful insights. The following crosscutting experiences can be extracted: Past project approach, with partly parallel structures, has not resulted in sustainability of achievements although improvements in environment and living conditions have taken place. Past projects have been beneficial in piloting new approaches in the sector, but the challenge is to link this to policy and strategy development and to scale up and replicate the achievements. The move from project-based implementation to an implementation modality through the government system results in delays, due to the limited resources and capacity of the government. The support has over-emphasised the role of the line agencies and underemphasised the Decentralisation by Devolution (D-by-D) process and thereby the role of local government authorities. A Concept Note 4 was prepared in January 2006 outlining the intended scope of the Danida Environment Sector Programme Support (ESPS): 1) support to the implementation of the Environmental Management Act (EMA; 2) support to Urban Development and Environmental Management (UDEM); 3) continuation of the support to PFM; and 4) continuation of the support to SWM. The Danida Programme Committee responded favourably to the Concept Note in February 2006, however, one comment being the need to have a more focussed ESPS in light of Tanzania s 1 Danida/ Finnida/ WB. Joint Review Report: Participatory Forestry Management Programme, Tanzania, August Danida/PEM. Technical Review of Danida Support to Sustainable Cities Programme, June Danida. Mid-term Review: Report, Sustainable and Integrated Management of the Malagarasi- Muyovosi Ramsar Site (SIMMORS), March Danida. Concept Note: Tanzania/ Environment SPS , January

20 Joint Assistance Strategy, which builds on the Paris Declaration s principles of increasing the effectiveness of aid. As a consequence, it was decided not to include the support to SWM in the ESPS. The importance and multi-sectoral nature of wetland management is recognised by the official creation in 2001 of the National Wetlands Working Group (NWWG) comprising of 30 key wetland stakeholders primarily at the central level. The support is assisting GoT in establishing a National Wetlands Strategy, a more comprehensive National Wetland Management Programme and is piloting wetlands management activities at regional, district, village and site level. The regional activities are focussed in Iringa and Mbeya Regions and in the Malagarasi Muyovozi and Lake Natron Ramsar Sites. In recognition of the need to consolidate the achievements to date it was decided to continue the SWM on the basis of the already agreed objectives and outputs, as stipulated in the Component Description. The SWM Component has encountered delays and it has subsequently been agreed to extend to the Component till June 2011 within the agreed budget framework. The Government of Tanzania (GoT) is in the process of developing the EMA Implementation Support Programme (EISP) into which GoT and development partner (DP) assistance could be channelled. Similarly, GoT is developing the UDEM Framework, which constitutes the framework for GoT and DP interventions in support of urban development. The EISP and the UDEM Framework are intended to mature in structure and substance during the initial period of implementation. Danida has provided technical assistance to GoT to facilitate the formulation of the EISP and the UDEM Framework, which includes national and local level interventions. Danida s support to the EISP and the UDEM Framework will be fully aligned with the national structures and procedures and will be harmonised with other donors support, which is anticipated to be forthcoming. The support to PFM is a continuation of the ongoing support. The PFM Component has been extended to June 2009 within the current budget frame, but will receive additional funding for the remaining programme period under the ESPS from July The present Environment Sector Programme Support (ESPS) Document presents Danida s support to Tanzania s environment sector from July 2007 to June 2012, and will comprise three components as follows: 1. Environmental Management Act Implementation Support Programme; 2. Urban Development and Environmental Management Framework; 3. Participatory Forest Management Programme. The budget for ESPS is DKK 180 million. The Danida funds will largely be part of pooled funding arrangements. An inception phase will take place of about one year for the EISP, while the inception phase for the UDEM framework is already underway. The EISP and the UDEM Framework and the lessons learned from the ongoing assistance form the basis for formulating the Danida ESPS Document, the EMA Component Document, and the UDEM Component Document. The current PFM Component Document is considered to remain valid as regards already agreed objectives and outputs stipulated in the Component Description, and it is therefore not deemed necessary to update the Document at this point in time. Section 5.3 of the ESPS Document elaborates on PFM development scenarios by the end of the adjusted 2

21 Component period (2009) and by the end of the ESPS (2012). The ESPS Document and the EMA and UDEM Component Documents have been drafted during the April- August 2006 period. An appraisal took place in October 2006 which was followed up by a 2 month period during which the comments were taken into account and the component descriptions and programme document updated in line with adjustments that were also being made in the national sector framework at the same time. The purpose of the Danida documents is to obtain agreement and approval by the Governments of Tanzania and Denmark on the scope of the Danish assistance to the environment sector in Tanzania. 3

22 2. NATIONAL CONTEXT 2.1 Political and governance context Political context The United Republic of Tanzania was formed by the union of Tanganyika and Zanzibar in Zanzibar continues to have its own government for internal affairs. Tanzania embarked on a socialist direction, and the ruling party Chama Cha Mapinduci (CCM) dominated virtually all aspects of political life. In the early 1990s Tanzania began to move towards a multiparty system, and in 1991, a presidential commission published recommendations for the establishment of a multiparty system and several new political organisations emerged. Although Tanzania abandoned its socialist policies in the mid-1990s and has held multiparty elections since 1995, they have been overwhelmingly won by CCM and it remains the strongest political party in Tanzania. CCM won an overwhelming victory in the Union presidential and legislative elections in December CCM s presidential candidate, Jakaya Kikwete, secured just over 80% of the votes and became Tanzania s new president. The party captured 206 out of the 232 parliamentary seats up for election. The smooth electoral process has boosted Tanzania s image as one of Africa s best performing countries. President Kikwete has pushed ahead with the current reform programme and builds on the progress made under the former president, Benjamin Mkapa. The new government has reiterated its commitment to market-oriented reforms that characterised the former government of President Mkapa. Further privatisation and the increase in the number of special economic zones will be strategies in promoting manufacturing-led economic growth. The environment sector is influenced by the political transition in the last two decades and the economic market oriented reforms - private sector and civil society have been given more space in the environmental management, while environmental challenges have increased with the growing economy. President Kikwete has furthermore made environmental management a priority area for the new government. It was one of his ten core priority issues for the government, mentioned in his initial speech to the national assembly (31/ ), and this has since been followed up in various actions e.g. the establishment of a cabinet committee on environment. Regional integration Relations between Uganda, Kenya and Tanzania have steadily improved since the early 1990s. In addition they have increasingly similar economic reforms and have adopted similar forms of democracy. Consequently, the countries revived the East African Community (EAC) leading to the establishment of the East African Custom Union in January The three countries have also established an EAC Parliament and an EAC Secretariat in Arusha. Trade relations have been complicated by the fact that Tanzania withdrew from the Common Market for Eastern and Southern Africa (Comesa), on the grounds that it felt it was involved in too many trade bodies with overlapping goals although Uganda and Kenya remain members. Tanzania unlike Kenya and Uganda is a member of the Southern African Development Community (SADC), as Tanzania feels that SADC, rather than Comesa, offers better trading opportunities and a more realistic chance of regional economic integration. In April at 4

23 an EAC summit it was decided to speed up the process of negotiating a common market, and implementation is aimed to start in January It was also agreed to push ahead towards the goal of a political federation. The closer cooperation between Kenya, Uganda and Tanzania is intended to promote increased production and trade, which will have environmental management implications. The cooperation will also provide new opportunities to address regional level environmental problems and harmonise environmental management interventions, e.g. in the Lake Victoria, where the Lake Victoria Environmental Management Project (LVEMP) aims at restoring Lake Victoria s ecosystem. Government structure and reform process Tanzania has two tiers of government: central government sector ministries, departments and other national agencies (MDAs), and LGAs comprising rural and urban local governments. The PMO-RALG is the central agency for policy-making and with regulatory and coordination functions for LGA affairs. The former Regional Administrations have been transformed to Regional Secretariats, which have an advisory and facilitating role towards the LGAs and are the intermediary link between local and central government. The rural LGAs district councils lower levels are: ward, village and kitongoji. Village councils with elected members govern village affairs. The urban LGAs city, municipal, and town councils lower levels are: ward and mtaa. GoT has since the early 1990s embarked on a number of reform programmes. These gained momentum during the second half of the 1990s and has since year 2000 been guided by the poverty reduction strategies. A Public Service Conference was held in October 2004 with a view to coordinating the major reforms: Public Service Reform, Public Financial Management Reform, Legal Sector Reform, and Local Government Reform. While all the reforms are addressing the public service, some are mainly addressing administrative procedures, while others deal with core power balances, and the nature of governance aspects of the reforms therefore varies. As an example, PMO-RALG stressed at the Conference that Decentralisation by Devolution (D-by- D) must be seen as a fundamental change in the way government carries out its business, that it has implications for all ministries, and requires harmonisation of national policies and political reforms. The national development agenda is stated in: 1) the Tanzania Development Vision 2025; and 2) the National Strategy for Growth and Reduction of Poverty (NSGRP MKUKUTA, the Swahili acronym). The reform process is adjusted in order to be consistent with the development agenda key strategies. The Tanzania Development Vision 2025 The Vision envisages that Tanzania will have the following attributes by year 2025: High quality livelihood: The development should be people-centred based on sustainable and shared growth and result in Tanzania being free from abject poverty; A strong competitive economy: Emphasis on the need to have an economy that can effectively cope with development challenges; Good governance: This entails strengthening a culture of accountability, rewarding good performance and effectively curbing corruption; 5