PROJECT TITLE: PARTNERSHIP MANAGEMENT OF THE OIL AND GAS SECTOR DEVELOPMENT IN THE NAIROBI CONVENTION AREA IN WESTERN INDIAN OCEAN ( KENYA, TANZANIA,

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1 PROJECT TITLE: PARTNERSHIP MANAGEMENT OF THE OIL AND GAS SECTOR DEVELOPMENT IN THE NAIROBI CONVENTION AREA IN WESTERN INDIAN OCEAN ( KENYA, TANZANIA, MOZAMBIQUE AND MADAGASCAR] Geographical scope: Coastal and marine Areas of the WIO countries- KENYA, TANZANIA, MOZAMBIQUE AND MADAGASCAR] Brief background In recognition of the uniqueness of the coastal and marine environment of the region, the threats it faces, and the necessity for remedial and/or pre-emptive action, the countries of the WIO region adopted the Nairobi Convention for the Protection, Management and Development of the Marine and Coastal Environment of the Eastern African Region (Nairobi Convention) and its two protocols, the Protocol on Protected Areas and Wild Fauna and Flora (SPAW Protocol) and the Protocol concerning Cooperation in Combating Marine Pollution in Cases of Emergency (the Emergency Protocol), in The Nairobi Convention is a regional platform for addressing challenges affecting the marine and coastal ecosystems of Western Indian Ocean through catalytic interventions, dialogue and partnerships. The 10 contracting parties to the Nairobi Convention comprise the island states of Comoros, France (Reunion), Madagascar, Mauritius and Seychelles and the mainland states of Somalia, Kenya, Tanzania, Mozambique and South Africa. In 2010, the text of the Nairobi Convention was updated to become the Amended Nairobi Convention with an additional Protocol for the Protection of the Marine and Coastal Environment of the Western Indian Ocean from Land-based Sources and Activities (LBSA Protocol) that was also adopted in A new protocol concerning integrated coastal zone management is currently under preparation and is expected to be adopted by the member states in December The Western Indian Ocean (WIO) is characterized by high biodiversity and immense natural beauty. The WIO region supports the livelihoods of a rapidly growing population, currently estimated at over 60 million and is still one of the least ecologically disturbed in the world, hosting over 2,200 species of fish, including rare and endangered species, such as the dugong, coelacanths, marine turtles, sharks, birds and over 350 species of corals and a diverse assemblage of coastal forests, mangrove forests and sea grass beds. It is estimated that about 22 per cent of the species found in the WIO region are found nowhere else on earth. The region s biodiversity is supported by the high biological productivity of two Large Marine Ecosystems (LMEs) - the Agulhas Current LME and the Somali Current LME. These two LMEs are influenced by the East Africa Coastal Current, the Mozambique Channel Eddies, the East Madagascar Current, the South Equatorial Current and the South Equatorial Counter Current, to form the Western Indian Ocean Super Marine Ecosystem (WIO-SME). Although many pristine areas remain in substantial parts of the WIO region, there is growing pressure from the development of oil and gas sector that has the potential to cause serious degradation to the coastal and marine environment. If left unchecked, this degradation will erode socio-economic development gains, magnify problems associated with increased poverty, food shortages, ill-health and eventually also compromise social stability and security in countries in the region, some of which are listed among the least developed countries in the world. By mid-2012, international exploration companies had made major discoveries of on-shore and off-shore natural gas in Mozambique in Rovuma basin. An estimated 60 trillion cubic feet of natural gas reserves had been confirmed from Songo Songo, Mtwara, Mnazi Bay, Ntoria, Mikindani, Nyuni and Mkuranga in Tanzania. In Madagascar, onshore discoveries of bituminous (tar) sands and subsurface heavy oil deposits have been discovered. Additionally, 1

2 large prospective zones have been identified along the island s west coast within the Ambilobe, Majunga and Morondava basins, all extending into the deepwater Mozambique Channel. On-shore oil and gas discoveries have been made in Turkana County extending to Marsabit County in Kenya with potential offshore reserves. In a Conference of Parties meeting for the Nairobi Convention, held in Mozambique in 2012, the Governments of the region (Comoros, Kenya, Madagascar, Mauritius, Mozambique, Seychelles, Somalia, South Africa and Tanzania) recognized the need for coordinated action in the management of transboundary marine and coastal resources especially in areas where oil and gas exploration is ongoing. The governments of the region have urged the Contracting Parties to the Nairobi Convention, to take into account environmental concerns during exploration and production of oil and gas, including establishing contingency plans and mitigation measures to address negative, chronic and accidental impacts on the marine and coastal environment. The Contracting Parties have called for collaboration with, scientific institutions, the oil and gas industry, private sector, civil society and other partners to facilitate the collection and sharing of information and best practices on the management of environmental impacts of oil and gas exploration and production particularly on transboundary resources. It is envisaged that through national and regional collaborative action, the countries of the Western Indian Ocean will carry out strategic environmental assessments for oil and gas exploration and production in the marine and coastal environment, undertake a review on Environmental and biodiversity related policies with respect to oil and gas development (including biodiversity off-sets) and develop knowledge and information sharing and capacity building tools. This proposal is a response to a request from the Governments of the Western Indian Ocean region and their partners, under the framework of the Nairobi Convention, to facilitate the development of national guidelines to address transboundary environmental impacts of oil and gas industry in relation to oil and gas extraction and processing; transaction processing; and market activities that may have impacts on the land, coasts and oceans. The oil and gas sector is a new and emerging sector with new issues and all the governments have acknowledge that there is no resident capacity, or prior experiences in the region. The proposed project will mainstream, review existing laws, on biodiversity and the policies against known requirements and practices for a nascent oil and gas industry in the WIO region. The project objective is to guide the development of the oil and gas industry in a manner that does not degrade natural ecosystems and resources, and provides benefits to local communities, through a concerted partnership involving the Governments of the WIO region, the oil and gas industry, and all other stakeholders. Description of the project and project idea In the absence of the proposed Sida project, the rapid development of the oil and gas sector in the Western Indian Ocean region in the coming years will take place with little or no consideration of the fragile coastal and marine ecosystems or sustainable management of critical natural resources such as fisheries, landscapes, rivers and water quality etc. Baseline efforts to establish mechanisms for environmental impact assessments, siting decisions, mitigation measures, and policy interventions for the oil and gas sector have not been addressed, and there is little progress in developing awareness material, or involvement of key stake holders in the development of the oil and gas sector policies. However, Progress has been made in the developement of tools that are broadly designed for environmental management, but this tools have only been tested outside of the WIO 2

3 region. In general, there is no specific criteria regarding globally significant biodiversity in some of the sites. In many instances, Strategic Environmental Assesments, (SEA) for the oil and gas indusrty or Environmental Impact Assesments (EIAs) for the infrastructure that is required for resource extraction, processing and transportation are yet to be undertaken. There is a likelihood that Government revenues from oil and gas production will be earmarked for large development programs, in particular infrastructure, rather than on measures, or tools that promote sustainable resource use. Sida funding will go along way in supporting a process to remove a variety of barriers including those related to the nature of operations of the oil and gas sectors, the enabling policy and legal environment, and oil and gas revenue allocation policies to allow sustainable extraction and use of natural resources while recognising the unique biological richness, natural beauty and high ecological and socioeconomic endemism in the western Indian Ocean. Partnerships and capacity development are key to this proposal and are the main means through which the Western Indian Ocean region can better conserve its biodiversity. The proposed Sida project has been designed within the framework of other existing and planned interventions related to the Oil and Gas sector s development in Western Indian Ocean region, so as to clearly define Sida s contribution to the conservation of globally important biodiversity. The outputs of the proposed project will contribute significantly by preventing/reducing pressure on globally significant species in the coastal and marine ecosystems of the Western Indian Ocean region, which contain higher levels of globally significant biodiversity, some which are not available anywhere else in the world. In addition, coastal and marine ecosystems in WIO region provide critical habitats for millions of migratory birds, as well as spawning grounds for fish populations that are ecologically and economically important throughout the Western Indian Ocean region, and their conservation will therefore provide benefits that extend far beyond the WIO region s borders. Protected areas that provide critical habitat for biodiversity including the Primeiras and Segundas Marine Protected Area, Bazaruto archipelago, the Rufiji, Ruvuma and Zambezi deltas, the Mozambique Channel, and others, will be strengthened through policy and institutional strengthening, while biodiversity throughout the entire WIO region will benefit from well managed and controlled oil and gas exploration, extraction, processing, transportation including market activities. Proposed project activities This project proposal identifies three major components as follows: a) ecosystems assessments; b) Legal, policy and institutional strengthening; and c) knowledge and information sharing and capacity building. The main activities to be carried out in each component are as follows: Component 1: Ecosystems Assessments There is a high overlap between ecologically sensitive and biodiversity rich areas and the occurrence of exploitable hydrocarbons in the Western Indian Ocean (WIO) region. The WIO region supports the livelihoods of a rapidly growing population, currently estimated at over 60 million and is still one of the least ecologically disturbed in the world, hosting over 2,200 species of fish, including rare and endangered species, such as the dugong, coelacanths, marine turtles, sharks, birds and over 350 species of corals and a diverse assemblage of coastal forests, mangrove forests and sea grass beds. It is estimated that about 22 per cent of the species found in the WIO region are found nowhere else on earth. The region s biodiversity is supported by the high biological productivity of two Large Marine Ecosystems (LMEs) - the Agulhas Current LME and the Somali Current LME. These two LMEs are 3

4 influenced by the East Africa Coastal Current, the Mozambique Channel Eddies, the East Madagascar Current, the South Equatorial Current and the South Equatorial Counter Current, to form the Western Indian Ocean Super Marine Ecosystem (WIO-SME). Although many pristine areas remain in substantial parts of the WIO region, there is growing pressure from the development of oil and gas sector that has the potential to cause serious degradation to the coastal and marine environment. If left unchecked, this degradation will erode socio-economic development gains, magnify problems associated with increased poverty, food shortages, ill-health and eventually also compromise social stability and security in countries in the region, some of which are listed among the least developed countries in the world. By mid-2012, international exploration companies had made major discoveries of on-shore and off-shore natural gas in Mozambique in Rovuma basin. An estimated 60 trillion cubic feet of natural gas reserves had been confirmed from Songo Songo, Mtwara, Mnazi Bay, Ntoria, Mikindani, Nyuni and Mkuranga in Tanzania. In Madagascar, onshore discoveries of bituminous (tar) sands and subsurface heavy oil deposits have been discovered. Additionally, large prospective zones have been identified along the island s west coast within the Ambilobe, Majunga and Morondava basins, all extending into the deepwater Mozambique Channel. On-shore oil and gas discoveries have been made in Turkana County extending to Marsabit County in Kenya with potential offshore reserves. Oil and Gas exploitation and production activities have the potential for a variety of negative impacts on the environment. They induce, economic, social and cultural changes through alteration in land use patterns, local population levels, social economic, and cultural systems. They also contribute to increases in aqueous and gaseous waste streams which may affect coastal and marine ecosystems due to changes in their environment through variations in water, air and soil/ sediment quality and through disturbance by noise, extraneous light and changes in vegetation cover. These negative impacts need to be mitigated and addressed to ensure ecosystem integrity. Oil exploration and development environment issues are largely regulated through the National Environment Act and the other related regulations that prohibit degradation of the natural environment (Water, Air and Land), and promotes the protection of biological diversity. Specific petroleum laws, guidelines and policies that enforce/ provide for detailed requirements for environment pollution control are however inadequate and the existing legal framework (policies, laws and regulations) in other sectors need to be updated as well. In many cases, human capacity and technical infrastructure in government agencies is inadequate to handle upstream and downstream oil and gas impacts on the environment. In addition there is insufficient knowledge about the environment and possible environmental impacts of oil and gas exploration in the potential oil and gas areas. This calls for integrating environmental safeguards in all stages of exploration, development and production, including Strategic Environmental Assessment (SEA), oil spill contingency planning and stakeholder sensitization. In the context of these project, the objective of this ecosystems assessement component is to prevent and mitigate the deterioration of the environment due to hydrocarbon exploration and exploitation by strengthening the capacity of the environmental authorities in the WIO region to regulate the oil and gas industry in accordance with the national environmental policies. This includes carrying out comprehensive regional Strategic Environmental Assessment with clear objectives, indicators, linkages with other existing plans and programmes, scenarios and options, monitoring programme and its results wideldy shared and discussed with a broad range of stakeholders. Preparation of SEA is critical in providing guidance to the oil and gas sector and provides the basis for all other interventions. Skills 4

5 development in SEA, EIA, waste management and ecosystem management will go a long way in strengthening the capacity for addressing environmental aspects of upstream and down stream oil and gas activities. Component 2: Legal, policy and institutional strengthening There is limited or no regional information on the legal, policy and institutional readiness of the governments of the Western Indian Ocean to deal with the environmental, social and economic impacts envisaged emerging from oil and gas development. Under this component, the Nairobi Convention Secretariat in partnership with the governments of the region will undertake comprehensive analysis of the existing environmental and biodiversity related policies with respect to oil and gas including biodiversity off-sets. This information will provide a baseline for reviewing and strengthening the legal, policy and institutional mechanism of the participating countries of the WIO region. This includes the development of an appropriate legal frameworks, guidelines and procedures, risk assessments, compliance monitoring, oil spill contingency planning, management plans for protected areas, payment for ecosystems, EIA and SEA legal and policy frameworks, national and regional consultations, oil and gas concession siting guidelines including development of an overall national strategy for mainstreaming biodiversity conservation into development of O&G sector. Component 3: Knowledge and information sharing and capacity building Under this component, the Nairobi Convention Secretariat in partnership with the participating countries will undertake a capacity needs assessment to establish the status of existing human resources and institutional infrastructure including the national curricula in training of professionals to deal with the challenges of oil and gas development. The activity will also seek to establish gaps and how best the same to could addressed during the project phase. The Secretariat will therefore undertake capacity building activities through structure and targeted training programmes and plans for government officials, oil and gas sector and local communities; review and update the Nairobi Convention Clearinghouse and information sharing system as an IT platform for sharing lessons learnt, efficient and low cost technologies, Petroleum Geoscience and Technical data, GIS Maps, resource data, administrative data, incidents and accidents data; resource inventory systems (Yet to find resources, Discovered resources and Reserves); capacity building programmes to conduct SEAs and review Environmental Impact Assessments (EIA) and SEAs; and capacity strengthening in participating countries to monitor and regulate O&G sector s activities, and to monitor and manage coastal and marine ecosystems, specifically to determine the threats and prevent/mitigate the impacts of O&G development on (Oil exploration activities, Extractive and infrastructure development activities i.e. roads, ports, harbours, etc, and midstream and downstream activities. 5

6 Project results framework COMPONENT 1: ECOSYSTEMS ASSESSMENTS OUTPUTS INDICATORS Means of Verification RISKS/ASSUMPTIONS 1.1 Strategic Environmental Assessment Report prepared Assessment Cooperation from (SEA) for the WIO region conducted and List of participants reports stakeholders results widely disseminated. Number of workshops held Workshop reports List of participants Screening conducted to determine Inception workshop Report Cooperation from the requirements for SEA in the WIO List of participants stakeholders region Availability of financial resources Linkages established between SEA with other plans and programmes Existing Plans and programmes on oil and gas Report Cooperation from stakeholders Geographical coverage of the SEA determined including key issues, assessment methods, data needed, level of detail needed, and who should be consulted reviewed Proposed outline of the SEA Annotated outline Objectives, targets and indicators Objectives and indicators Annotated outline Baseline data collected and Report prepared Contracts signed assessed for marine biodiversity and TORs for consultants with consultants ecosystem services ( i.e. background, MOUs with situational analysis both upstream and participating downstream, socio-economic values of countries biodiversity, of ecosystem services, and existing resource uses in marine and coastal areas subject to O&G development Identification of alternative/options including scenario setting Impact identification, prediction and evaluation, Scenarios modelling 6

7 1.1.8 Mitigation Mitigation measure developed/proposed Proposed monitoring programme and auditing procedures Monitoring programme Approval of the proposed monitoring Stakeholder consultations and decision making Stakeholder consultation workshops Report COMPONENT 2: LEGAL, POLICY AND INSTITUTIONAL STRENGTHENING programme Agreement amongst stakeholders OUTPUTS INDICATORS Means of Verification RISKS/ASSUMPTIONS 2.1 Environmental and biodiversity related policies reviewed with respect to oil and gas (including biodiversity off-sets), and negotiated with participating countries Existing National legal, policies and regulations reviewed, amendments drafted and negotiated with participating countries and presented to the Conference of Parties for consideration and approval Policies reviewed and updated for Wildlife, Coastal Forests, Wetland, Coastal and Marine, Water resources management, Fisheries, Environment management, Land use, and Occupational health and safety National legal, policies and regulations reviewed and updated for Wildlife, Coastal Forests, Wetland, Coastal and Marine, Water resources management, Fisheries, Environment management, Land use, and Occupational health and safety Review report with proposed amendments or gaps Review reports with proposed amendments Meeting reports List of participants The relevant government institutions approve the recommended changes and amendments The relevant government institutions approve the recommended changes and amendments 2.2 Management plans for protected areas, and relevant sector plans for the MPA/reserves plans reviewed and or prepared Proposed management plan Enabling policy and legal framework exists 7

8 participating countries, reviewed and updated taking into consideration issues oil and gas 2.3 An environmental monitoring system for the WIO region, with clear and agreed indicators, established. 2.4 Mechanisms for oil and gas industry (hazardous) waste strengthened. 2.5 Framework for compliance monitoring and enforcement of the oil and gas industry strengthened including the issue of payment of ecosystem services (PES). Coastal Forest Reserves management plans reviewed Proposed land use management plans prepared Indicator list Baseline data collected on indicators Database IT equipment Data collection tools Waste types identified and categorised Handling procedures developed Collection and disposal sites available Staff trained (including private sector) to manage hazardous waste Compliance management information system developed Compliance assistance provided to companies Monitoring checklists developed Monitoring teams established and regular meetings Public disclosure procedure developed Licensed facilities inspected and audited Monitoring equipment documents Consultation reports Baseline data report Regular reports generated from the system Report on categories and composition of wastes generated List of licensed facilities Draft procedures for handling different wastes Training reports Agreed checklists Meeting reports of monitoring teams Negotiated and agreed disclosure procedure Inspection and audit reports Training reports Compliance and enforcement manual Cooperation from stakeholders Reliable baseline data available Acceptance of the indicators by stakeholders Industry best practices available Cooperation between government and private sector Willingness of operators to comply Company take up voluntary initiatives Commitment from government agencies to allocate resources Reliable baseline data available 8

9 2.6 National Oil spill contingency mechanism in place and operational. procured and installed Key personnel of government agencies trained in using monitoring equipment Compliance and enforcement manual developed Data management systems reviewed and improved. Develop GIS-monitoring system Establish and update relevant Quality Assurance /Quality Control-procedures and standards Establish PES models Environmental sensitivity atlas regularly updated Equipment in place Response units established Staff trained (private and government agencies) Published updated atlas of the WIO region Meeting reports Functionality of equipment Spill response reports Training reports Reliable baseline data available Cooperation between government and private sector Mechanisms for oil spill contingency planning in place, focused on rapid response measures for biodiversity rich areas, particularly marine ecosystems Oil spill contigency plans Response organization Resource inventory Training program Risk assessment Inventory Training manual Oil spill contingency plan Meeting reports Number of experts trained 9

10 2.7 Strengthening legal and regulatory framework EIA and SEA legal and policy frameworks governing oil and gas contracts and developments, and regulations governing oil and gas siting agreements, upstream and mid stream strengthened to incorporate biodiversity/environmental conservation Petroleum Law Petroleum upstream and midstream regulations Guidelines for Resource and Health Safety and Environment management developed/revised, Legislations negotiated with participating countries Delay in approvals at different stages of the process Inadequate public participation National and regional consultations, O&G concession Siting guidelines on biodiversity (location, size, permitted activities) negotiated with industry; 2.8 O&G corporate environmental management plans negotiated with industry to effectively incorporate principles and implement actions to conserve biodiversity, including exploration, extraction, transport, and decommissioning activities within concessions; 2.9 Work with existing initiatives develop overall national strategy for mainstreaming biodiversity conservation into development of O&G sector O&G concession siting guidelines MOUs/agreements Environmental Management plans Implementation plan Tools and strategies for mainstreaming National strategy for mainstreaming biodiversity conservation in to oil and gas sector Capacity building workshops Meeting reports List of participants Concession siting guidelines for WIO region Signed MOUs Meeting reports Environmental Management plans signed Workshop reports 10

11 2.10 Mechanisms for O&G industry to pay for biodiversity offsets (paying for conservation in priority marine and coastal ecosystems to offset damage, including unavoidable damage, done in concession areas and to mitigate displaced fishing effort), linked to Siting Agreements, Public awareness and education campaign regarding the impacts of O&G development on marine and coastal ecosystems Voluntary biodiversity offset payments supporting conservation in priority threatened marine and coastal ecosystems (e.g. MPAs and fisheries conservation zones) agreed upon by the participating countries, O&G companies, and relevant civil society partners 2.11 Monitoring and Regulation Oil and Gas Exploration An appropriate supervisory (regulatory) framework for monitoring and regulating petroleum exploration programmes in place with regards to; Data collection, studies, drilling, relinquishment, Health Safety and Environment, Costs Regulatory framework in place; Well executed work programs with regards to Data collection, studies, drilling, relinquishment, HSE and costs. Monitoring reports Inspection and Audit reports Efficient approval for planning document Lack of cooperation with industries Lack of cooperation between supervisory institutions Inadequate supervisory systems and enforcement mechanism Non qualified operators and licensees Lack of public and political consensus Monitoring of Oil and Gas Policy and Programs The National Integrated Monitoring and Evaluation Strategy (NIMES) reviewed, to incorporate oil and gas monitoring and evaluation systems. NIMES uses oil and gas data reports Inadequate knowledge of the sector in NIMES Lack of support to NIMES 11

12 COMPONENT 3: KNOWLEDGE AND INFORMATION SHARING AND CAPACITY BUILDING OUTPUTS INDICATORS Means of Verification RISKS/ASSUMPTIONS 3.1 Institutional Development and Capacity Building A strategy for the establishment/ strengthening existing relevant institutions Capacity Building Plans for Human resources, Implementation of Training Plans, including IT systems (Nairobi Convention Clearinghouse and Information Sharing System) National Local Participation: Skills Development for the Oil and Gas sector: Education Curriculas, Trainers Educated, Petroleum related Courses at Professional, Technical and Crafts level, Contribution to Implementation of Petroleum Related Training 3.2 Data, Records and information Management: Capacity needs assessed Adequate plans for personnel and infrastructure development for institutions Training manuals IT (Nairobi Convention Clearinghouse mechanism) systems updated/upgraded Reviewed National Curricula Petroleum Geo-science and Engineering training introduced at different post secondary education levels. Number of capacity building trainings held Reports of workshops Training reports Annual/quarterly reports Reviewed curriculum in place Petroleum related training within Uganda Inadequate budget/financial resources Lack of training capacity Lack of qualified lecturers/teachers Lack of cooperation with respective institutions Lack of IT-infrastructure and adequate facilities and equipment Management Systems for Petroleum Geoscience and Technical data, resource data, administrative data, incidents and accidents data, production and cost data: GIS-system developed Relevant QA/QC-procedures and standards established and updated High quality data available Relevant software in place Rapid technological changes and incompatibility IT systems failures 12

13 Improved data and records management systems. Development of procedures for operations and records management systems 3.3 Resource Assessment Efficient retrieval of data QA/QC procedures in place Lack IT-experts and competence Lack of reporting procedures A system for continuously updating resource inventory developed Plan and contribute to the assessment of the WIO region s oil and gas resources: System for continuously updating resource inventory, developed capacity and procedures to assess petroleum resources. 3.4 Capacity development programs, to conduct SEAs and review Environmental Impact Assessments (EIA) and SEAs, planned and conducted within relevant institutions. 3.5 Capacity development programs developed and implemented in all relevant institutions, for areas identified as relevant/critical to the oil/gas sector (based on capacity needs assessment). Resource inventory system in place Updated resource assessments o Yet to find resources o Discovered resources o Reserves Institutional needs assessments conducted in all relevant agencies based on agreed ToRs Capacity building plans, specific for SEA and EIA work, for all relevant institutions Staff trained in SEA and EIA on Oil and gas Missions/travel conducted Capacity needs assessments conducted in all relevant organisations based on agreed ToRs Capacity plan for all relevant institutions Performance level of institutions Update resource database Activity plans for relevant institutions Annual reports from Project Management unit Training reports Approved plan documents Performance reports from institutions IT systems failures Lack IT-experts and competence Lack of reporting procedures Staff available in respective agencies Enabling human development policies in place National private environmental practitioners participate on the training Cooperation from relevant institutions 13

14 3.5.1 Capacity strengthening in participating countries to monitor and regulate O&G sector s activities, and to monitor and manage coastal and marine ecosystems, specifically to determine the threats and prevent/mitigate the impacts of O&G development on (Oil exploration activities, Extractive and infrastructure development activities i.e. roads, ports, harbours, etc, and midstream and downstream activities Strengthen capacity to monitor and report on O&G sector s activities, specifically to incorporate biodiversity considerations into EIAs and Siting agreements Strengthened capacity of local governments, resource management agencies, coastal communities, artisanal and commercial fishers to fully gauge, assess and manage risks to biodiversity posed by O&G industry development and work in partnership with O&G companies for developing plans to conserve marine biodiversity Report on capacity needs assessment Capacity building plans developed Capacity building workshops organised List of participants Report of workshop Reporting format 3-5 targeted workshops on capacity strengthening At least 200 experts including local communities trained Cooperation from relevant institutions 14

15 Proposed budget (in USD) OUTPUT/Activities Budget Project coordination costs 2013 USD 2014 USD 2015 USD Project Officer Project Assistant SUB TOTAL Project Inception workshop Component 1: Ecosystems assessment Strategic Environmental Assessment (SEA) for the WIO region conducted and results widely disseminated. Activities: a) Scoping Process (Concept note, stakeholder workshop, guidelines for Terms of Reference) b) Drafting and approval of the Terms of Reference (ToR) c) Procure and approve (incl. assessment of proposal from consultancies) consultancy (ies) (national/international) d) SEA Inception workshop e) Baseline data collection and processing (background, situational analysis, mapping of existing resources and use, etc) f) Alternative/scenario modeling, prediction, and development of a monitoring programme g) Stakeholder consultation workshops SUB TOTAL Component 2: Legal, Policy and Institutional Strengthening a) Environmental and biodiversity related policies reviewed with respect to oil and gas (including biodiversity off-sets), and negotiated with participating countries

16 i) Existing National legal, policies and regulations reviewed, amendments drafted and negotiated with participating countries b) Management plans for protected areas, and relevant sector plans for the participating countries, reviewed and updated taking oil and gas issues into consideration c) An environmental monitoring system for the WIO region, with clear and agreed indicators established d) Mechanisms for oil and gas industry (hazardous) waste strengthened i) Identify and categorise waste types ii) Compile existing best practices for handling oily and hazardous waste iii) Develop framework for handling oily and hazardous waste e) Framework for compliance monitoring and enforcement of the oil and gas industry strengthened including the issue of payment of ecosystem services (PES) f) National Oil Spill Contingency mechanism in place and operational including an updated sensitivity maps i) Complete national oil spill contingency plan ii) Establish, develop, maintain and update the sensitivity atlas g) Strengthening legal and regulatory framework (i.e. SEA and EIA, regulations governing oil and gas siting agreements, upstream and mid stream strengthening to incorporate biodiversity/environmental conservation) h) O&G corporate environmental management plans negotiated with industry to effectively incorporate principles and implement actions to conserve biodiversity among others i) Work with existing initiatives to develop an overall national strategy for mainstreaming biodiversity conservation into development of O&G sector j) Mechanisms for O&G industry to pay for biodiversity offsets (paying for conservation in priority marine and coastal ecosystems to offset damage, including unavoidable damage done in concession areas and to mitigate displaced fishing effort k) Monitoring and regulation

17 Sub - Total Component 3: Knowledge and Information Sharing and Capacity Building a) Institutional development and capacity building i) A strategy for the establishment/strengthening existing relevant institutions ii) Capacity building plans for human resources iii) National local participation i.e. skills development for the oil and gas sector: Education Curricula, trainers educational programme at professional and crafts level b) Data, Records and Information Management systems i.e. Petroleum Geoscience and technical data, resource data, administrative data, incidents and accidents data, etc. c) Resource assessment i.e. setting up a resource inventory system containing information such as resources yet to be found, discovered resources and reserves) d) Capacity development programmes to conduct SEAs and review EIAs and SEAs, planned and conducted within relevant institutions i) Carry out capacity needs assessment for SEA and EIA among government relevant institutions and develop training programs ii) Review and update SEA/EIA guidelines e) Capacity development programmes developed and implemented in all relevant institutions for areas identified as relevant/critical to oil/gas sector based on capacity needs assessment i) Conduct capacity needs assessments in all relevant organisations based on agreed ToRs ii) Develop capacity plans for all relevant institutions iii) Develop integrated capacity development plan Sub-Total TOTAL a): Operation and maintenance of equipments Transport costs

18 Equipment Maintenance Sundry (communication, postage, freight, clearance, etc) Reporting costs (publications, printings, newsletters) Communications products (i.e. videos, brochures, newsletters, etc) Printing and Other publications Evaluation costs (travel, consultants fees, Mid term evaluation Terminal Evaluation SUB TOTAL TOTAL a) GRAND TOTAL