BELIZE

REPORT TO THE BOARD OF EXECUTIVE DIRECTORS

ON THE

ENVIRONMENTAL AND SOCIAL TECHNICAL ASSISTANCE PROJECT (ESTAP)

(999/OC-BL)

AND THE

SOUTHERN HIGHWAY PROJECT (1018/OC-BL)

I. BACKGROUND

1.1 The US$2.6 million ESTAP project was approved on March 10, 1997 as a companion operation to the US$16 million Southern Highway Rehabilitation project (1081/OC-BL), which was approved on January 7, 1998. ESTAP was designed to enhance the prospects for the sustainable economic and social development of the southern region through the development of a regional planning capacity and the preparation of a Regional Development Plan (Plan). The Plan will anticipate and prepare for highway-induced changes, and seeks to insure that the development of the southern region is economically, socially and environmentally sustainable and that the benefits of development are equitably distributed.

1.2 To provide assurances that the ESTAP planning process has been established and is essentially irreversible, the Borrower and the Bank agreed that eight benchmarks or accomplishments should be achieved. A Bank mission in August 1997 determined that four of the ESTAP accomplishments had been achieved, and the Borrower subsequently agreed that the remaining accomplishments would be included as special conditions to the call for bids in the Southern Highway loan. At the Loan Committee review of the Southern Highway project, the status of ESTAP's planning capacity was discussed and the Loan Committee asked RE2 to "distribute to the loan committee for information before the call for bids for the physical works financed by the loan a full written report on the status of related activity in the southern region of Belize, particularly the progress in implementing the ESTAP land use planning exercise and the adequacy of public consultation within that process". A similar request was made during the Board review of the project in January 1998.

1.3 Early in February 1998 the Borrower informed the Bank that the remaining ESTAP accomplishments had been achieved. A Supervision Mission was sent to Belize to review the accomplishments and to undertake the first annual ESTAP project review. The present Report draws on the findings of that mission and recent ESTAP progress reports.

II. FINDINGS ON OVERALL PROGRESS AND ACCOMPLISHMENTS

A. Mobilization

2.1 The ESTAP project office in southern Belize (Punta Gorda, Toledo District) is now fully staffed and equipped and project activities are fully underway. The ESTAP Project Manager was recruited in May 1997 and assumed his responsibilities on June 1. Project staff for the three operational units of ESTAP (the Environment Protection Unit (EPU); the Land Use Planning (LUU) and the Community Participation (CPU)) were hired between July and September 1997 and have been carrying out field activities since that time.⁽¹⁾ An Office Manager was recruited in early February 1998 and a regional ESTAP office has been established to support field activities in Stann Creek District.

B. Project management and supervision.

2.2 The February 1998 mission identified immediate needs for strengthening overall project management in light of expanding field work activities and the demanding time-lines in ESTAP's annual work plans. Recommendations were made towards improving inter-unit coordination through regular weekly staff meetings; information sharing; a strategy for coordinating staff activities at the village level; and a more systematic liaison structure with line agencies. A follow-up plan was prepared in March 1998 which has since been used for monitoring progress by the Project Steering Committee (PSC) and COF/CBL.

2.3 Project supervision and monitoring is being carried out by the Borrower and the Bank through regular meetings of the PSC. To date there have been nine regular and two special meetings. A planning workshop was held in February with the PSC and ESTAP staff to consolidate the focus of the project and to prepare annual work plans for each unit. Subsequent PSC meetings have been held to review the terms of reference of short-term consultancies for the Regional Development Plan, to discuss mechanisms for ensuring plan implementation (see below), and to generally assess progress in ESTAP activities.

C. The ESTAP accomplishments:

2.4 In February 1998, the Borrower provided the Bank documentation reflecting the work completed for each of the remaining ESTAP accomplishment. As summarized below, the February 1998 mission concluded that ESTAP Accomplishments 4,5,7, and 8 had been completed to the satisfaction of the Bank.

1. Accomplishment 4

2.5 Initiate the process for the declaration of Aguacaliente as a protected area. This site encompasses important vegetation types (swamp grassland) which are not currently represented in the existing protected area network and are only known to occur in this location in Belize. This accomplishment is designed to ensure that full community support exists for formal declaration and management of the protected area. Remaining actions: evidence of the establishment of the Permanent Committee; provisional limits for the proposed protected area; and a work plan and budget showing how ESTAP will continue to support the activities of the Permanent Committee.

2.6 Mission Finding: The documentation provided to the Mission was: summary of the events leading to the establishment of the Aguacaliente Management Team (AMT) on August 13, 1997; a map and area description showing the proposed limits of the protected area which have been defined in a preliminary manner through a consultative process with the 11 surrounding communities; and a work plan and budget for continued support from ESTAP. The Mission determined that this accomplishment had been completed.

2. Accomplishment 5

2.7 Provide a list of priorities and supporting documentation for improved protected areas management in the southern region for potential inclusion in the Protected Area Conservation Trust (PACT) 5-year strategic plan. PACT set up a trust fund for the protection, conservation and enhancement of protected natural areas and cultural resources. This accomplishment is designed to ensure that a set of eligible proposals for improving the management of protected areas in the southern region are prepared in time for possible inclusion in the 5-year plan. Ensuring that some of the PACT funds are allocated to protected areas in the southern region will help mitigate the effects of encroachment expected with highway rehabilitation. Remaining actions: ESTAP will select top priorities within the list already prepared and prepare a budget and work plan to be submitted for financing to PACT.

2.8 Mission Finding: The documentation provided to the Mission was: copies of two proposals, including a budget and work plan, that will be submitted to PACT for funding for two Protected Areas (Rio Blanco National Park and Aguacaliente Proposed Protected Area) and the criteria used for the selection of these areas as priorities. The Mission determined that this accomplishment had been completed.

3. Accomplishment 7

2.9 Agreement by the Project Steering Committee (PSC) on the community consultation mechanisms for ESTAP based on most appropriate consultation methods and principles. The PSC will have overall responsibility for coordination of ESTAP. By requiring that the PSC formally approve the community consultation activities of ESTAP, Government will have to seek consensus (through the PSC) on the scope of consultation, timing, issues to be brought to communities and means for consultation. This will also help solidify the commitment to the community consultation process which is essential to ESTAP's successful implementation. Remaining actions: detailed terms of reference for the PSC, including regulations pertaining to honorarium and expenses; detailed terms of reference for the Community Participation Unit, particularly their working relationship with the community representatives of the PSC; and a work plan and budget projection for community consultation activities for the remainder of 1997.

2.10 Mission Finding: The documentation provided to the Mission was: terms of reference and procedures for the PSC (including clauses on honoraria and expenses for Community Representatives) incorporating comments provided at a Special PSC meeting held on Thursday, February 19; terms of reference, a work plan and budget for the Community Participation Unit and coordination mechanisms with the community representatives and other agencies. The Mission determined that this accomplishment had been completed.

4. Accomplishment 8

2.11 Completion of a regional diagnostic report (baseline) including collection of statistics on leases, titles and pending applications in Mayan villages. A considerable amount of data exists for the southern region. The objective of the baseline exercise would be to further consolidate environmental and social indicators as a basis for monitoring change induced by the highway rehabilitation project and the land use planning activities of ESTAP. Further, an inventory of the current land tenure situation in Toledo will serve as a starting point for discussions on land tenure security. Remaining actions: (a) for existing land uses: the inventory of land tenure in Stann Creek and Toledo districts will be contracted and initiated; (b) forest coverage and timber production: 1996-97 timber production statistics by sawmill, by species and location; a compilation of the logging license documents (contracts or agreements with annexed maps) in effect in the Southern Region; (c) critical habitats: no additional data required; (d) watershed and hydrological data: tables presenting field data collected and an analysis of the water quality and flow regime data as of the end of September 1997; sampling and analysis protocols; (e) demographic data: no additional data required; (f) access to social services: education facilities by village for 1996; (g) socioeconomic and other indicators: labor force statistics for 1996/1997; growth retardation statistics.

2.12 Mission Finding: The documentation provided to the Mission was: 1) a report from the ESTAP Land Use Unit regarding progress in the review of the land use situation in the Southern Region including land tenure and a justification for conducting the survey by the ESTAP office rather than a separate contract; 2) sawmill statistics and copies of logging licenses; 3) list of educational facilities in the Southern Region for 1996; 4) labor force statistics for 1997; 5) copy of "National Height Census of School Children in Belize, 1996"; 6) report on water quality monitoring in the Southern Region. The Mission determined that this accomplishment had been completed.

D. Mission conclusions and recommendation

2.13 Based on the above findings, the February 1998 mission concluded that all pending ESTAP accomplishments had been completed to the satisfaction of the Bank and recommended that, following submission of this report to Loan Committee and Board of Directors, the Country Office may authorize the call for bids for works under the Southern Highway project.

III. ESTAP ACTIVITIES

A. Land Use Unit (LUU):

3.1 The LUU has been coordinating ESTAP activities towards the preparation of the Regional Development Plan as well as carrying out specific land use planning tasks. The Regional Development Plan will constitute one of the major products of the project. It will include environmental, social, economic and land use recommendations for the Southern Region, thus incorporating the results of the village-based development planning, the land use mapping, monitoring provisions as well as elements for ensuring the sustainability of the process after the completion of ESTAP. An outline for the Plan has been prepared and circulated for review to the member of the PSC and others. While the outline of the Plan has been kept broad and comprehensive at the outset, it will eventually focus on themes central to economic development and linked to the land use changes expected over the 5-year time frame of the Plan. A retreat is scheduled for July 1998 to discuss and verify the scope of the Plan and bring all ESTAP staff units to a similar level of understanding in relation to regional planning, land use planning, commonly used planning tools and how the work of each unit will contribute to the eventual Plan. At the World Bank-sponsored Consultative Group meetings in June 1998, the Prime Minister indicated that mobilization of funds for the implementation of the Plan would be accorded very high priority in the Government's Public Sector Investment Program. He also invited the donor community to give their strong support to the Plan when it comes on stream in 1999.

3.2 The other specific land use planning activities being undertaken by the LLU are the preparation of a Land Use Potentials Plan, a Two-Mile Corridor Zoning Plan and community development planning to be incorporated into Special Development Area (SDA) plans. Data collection on current land use, land tenure, and biophysical characteristics of the Southern Region was initiated at various scales in June 1997. In addition to field data collection, activities have included: (i) design of methodologies for the Land Use Potentials Plan and the community development planning, including recommended approach for incremental review and approval; (ii) upgrading of base maps for sections of the Southern Region; and (iii) the commission of specific studies including one on the soils of Toledo. As of May 1998, base maps (scale 1:25,000) and field surveys of existing land use as well as zoning plans had been completed for the entire length of the Southern Highway Two-Mile Corridor. Digitizing and printing of the zoning plans is underway at the Land Information Center and should be completed by the end of July 1998.

3.3 The LUU has also been involved in the preparation of community development plans, as the foundation for the Regional Development Plan. Land working groups have been formed in 68 of the 71 villages/communities in the southern region, and community development plans are in process for 10 of these communities. Using a participatory process involving these working groups, the LUU has been compiling more detailed field observations of farming layout and land occupation, examining needs for town or village expansion and updating land information.

3.4 The land working groups in some villages are identifying problems that will impact on the eventual implementation of the Regional Development Plan. In some locations for example, ESTAP has encountered boundary disputes which relate directly to the villagers views on land use for the future. Real progress will have to be made on some of these land management questions during the land use planning process but ESTAP does not have the resources to resolve all problems. There are opportunities for improved coordination between ESTAP and the Bank's Land Administration Project (LAP) which could contribute to making progress in selected land tenure issues fundamental to the Regional Development Plan.

3.5 Based on recent work load estimates, completion of the Land Use Potentials Plan is foreseen for the fourth quarter of 1998, the community development plans for early 1999 with a first draft of the Regional Development Plan for mid-1999. These forecast dates are being periodically revised to take into account the time needed to allow for full disclosure, review and consultation of the land use planning products in the Southern Region and nationally. The next work plan review will take place at the ESTAP retreat scheduled for the end of July 1998.

3.6 In a related issue, there have been reports that in the run-up to elections land leases are being given out by the Ministry of Coordination and Mobilization throughout the country (including Toledo District) in a partisan manner and without regard to established procedures. ESTAP is not being consulted in the process. The issue was first brought to the attention of the ESTAP Project Steering Committee in February 1998 and comments were made to the Bank Supervision Mission. These reports have since been verified and are incompatible with a commitment made in a letter dated December 8, 1997 from the Prime Minister of Belize to various Mayan Organizations in Toledo stating that "any allocation of national land in Toledo and South Stann Creek Districts is to be consistent with ESTAP's land use planning considerations. The Land Use Unit of the ESTAP will take part in any technical decisions which are make by Government regarding the issue of land." It would also conflict with the Prime Minister's letter to the President of the Bank of the same date which states that the Government is committed to addressing the Mayan land tenure issues within the context of ESTAP.

3.7 The issue has been discussed at various PSC meetings and was raised with the Prime Minister by the community members of the PSC on May 8, 1998. The Prime Minister reemphasized his commitment that all land allocation and/or leasing licenses in the Toledo District should be done in consultation with ESTAP. The practice was also brought to the attention of the UK's Department for International Development (DFID)which is financing Section 3 of the Southern Highway and which has observer status on the Project Steering Committee. DFID is currently reviewing Belize's eligibility for relief under the Commonwealth Debt Initiative. In a letter dated June 8, 1998 the British High Commissioner requested that ESTAP and Government review all land leases issued in the ESTAP project area since December 8, 1997, and that ESTAP staff have an opportunity in the future to convey their views in respect of applications for further leases in the same region. In the response to the British High Commissioner dated June 10, 1998 Government agreed to the DFID request and noted that "the Government of Belize hereby gives the assurance that ESTAP's role of ensuring the compatibility of past and future leases with land use and village development planning considerations will not be compromised." In a letter to the Bank dated June 18, 1998 Government provided similar assurances noting that a review of all land leases issued in the ESTAP area since December 8, 1997 will be carried our by ESTAP and Government, and that ESTAP will have the opportunity to provide their views on any further lease applications in the area. The Bank fully supports the UK/DFID actions and is concerned that no leases have been given in the two-mile Southern Highway corridor, as a temporary freeze on new lease applications in this area is a previously fulfilled condition in the Southern Highway contract. The ESTAP Unit has been charged with conducting the land lease review, which will begin in late July and require an estimated two person/months to complete.

B. Environmental Protection Unit (EPU):

3.8 The EPU is tasked primarily with monitoring physical and environmental conditions in the ESTAP project area, undertaking environmental management activities including those aimed at strengthening protected area management, and contributing data and analyses for the various planning products including the Regional Development Plan. In undertaking these activities, the objectives are to understand, and where necessary, control, the various effects, both direct and indirect, associated with highway rehabilitation.

3.9 As of May 1998, water quality monitoring data were being collected at defined river crossings along the Southern Highway as well as the Port Honduras Proposed Marine Reserve where the work is being undertaking in cooperation with the Coastal Zone Management Project. Recently, the Unit initiated discussions seeking more formal collaboration with the Public Health Bureau and the Department of Meteorology to broaden the scope of water quality data collection. Other environmental data being collected and analyzed include logging/deforestation trends, erosion rates and, most recently, agrochemicals from banana and citrus farms as well as aquaculture effluents.

3.10 A community-based management team (for the Aguacaliente wetlands) has received assistance from the EPU in its effort to have the site declared a protected area and for the funding of initial activities. Technical assistance has also been provided to another community group (Friends of Rio Blanco National Park) to seek funds for management purposes. Working groups in environmental protection and sanitation have been formed in several communities as part of the community-based planning process for the Regional Development Plan. The Unit has been assisting NEAC in the review of Environmental Impact Assessments (EIAs) for several subdivisions and tourism development proposals under consideration for the Southern Region. A work plan for the second year (1998-1999) has been prepared.

3.11 The EPU has assisted the Forestry Department in monitoring and enforcement activities in forests and protected areas of the project by conducting biweekly sawmill inspections and monitoring of logging in protected and other sensitive areas. In a related matter, the Ministry of Natural Resources issued in January 1998 a proposal for new procedures for the issue of timber harvesting licences.

C. Community Participation Unit (CPU):

3.12 The objectives of community consultation are to mobilize communities to participate in the process of developing the Plan, and to build their capacity to participate in the decision making process for the implementation of the Plan. The CPU consists of a Social Planner, a Community Development Officer and two Community development Assistants. The CPU undertakes comprehensive consultations with the public, NGO and community based institutions. These consultations are designed to engage communities affected by the Southern Highway project in the planning and decision-making process at an early stage; to facilitate community inputs to the planning and decision-making process on issues such as land tenure, village boundaries, resource allocation, environmental protection; and to gather socio-economic data and document opinions and aspirations from communities that will go into the formulation of the Plan. In addition, the CPU disseminates information generated through the planning process to communities as a foundation for effective public participation, education and empowerment.

3.13 Activities to date include the design of community consultation mechanisms and procedures. Through workshops, seminars, educational and training programs and support for local organizations the project is seeking to improve the developmental capacity of public, private and community agencies in the project area. Introductory meetings have been conducted in all of the 71 villages and communities of the Southern Region and working groups have been created in 68 villages. The CPU is also updating the socio-economic profile of the southern region, using both formal research and community participatory methods. The profile includes an inventory of organizations active in the southern region and descriptions of their activities. Profiles of especially poor or vulnerable settlements are formulated by participatory methods. Community strengthening activities are being executed to improve the effectiveness of communities participation in the planning process. A detailed work plan for the second year of activities has been prepared.

IV. Southern Highway Activities

4.1 With respect to activities related to the rehabilitation of the Southern Highway, on June 5^th the Ministry of Works (MOW) informed the Bank that twelve construction firms responded to the request for pre-qualification. Procurement activities are on schedule and the call for bids should take place by end-September 1998. Regarding the supervision firm, the MOW is negotiating with BECA (the firm supervising Section 1 of the Southern Highway) and a contract may be signed this month. The MOW is reviewing the bidding documents, including quantities, and the documents should be ready by the programed date of the call for bids. The Bank will send a mission to Belize to review the feeder road component of the project. The date of the mission will be coordinated with the process underway for the preparation of the ESTAP community development plans, which are to include an analysis of priorities for improved village access by feeder roads.

V. CONCLUSIONS AND RECOMMENDATIONS

5.1 The ESTAP project has been successful in launching a regional planning process which can be instrumental in managing the social changes likely to follow from the upgrading of the Southern Highway and holding environmental impacts to acceptable levels. During the first year of operations, the efforts of ESTAP were largely devoted to data gathering and establishing community consultation mechanisms linked to the land use planning process. ESTAP's staff is developing skills in the regional planning process, but requires a clearer vision of the nature and uses of the end product. A watershed event early in the second year of operations is a one-month consultancy of an experienced planner which will be followed by a two-day retreat with ESTAP staff and the PSC. The retreat (which will be attended by Bank staff) will focus on how the Plan will result from their joint efforts and what the Plan can hope to achieve. There are resources in the project to conduct similar annual consultants/retreats as required.

5.2 There are issues that emerged in the first year of execution which reveal some of the fundamental challenges for ESTAP over the next several years. The main issues pertain to inter-agency coordination within the Southern Region in community planning activities and providing improved social services, transparency in land and resource allocation decisions, management of resource use conflicts, on-site environmental enforcement capacity, and development review and measures for ensuring the implementation of the Regional Development Plan. These issues have been clearly recognized by the Project, particularly in the context of PSC meetings which have provided an open forum for discussion.

5.3 For its part the Bank has upgraded its ability to manage and monitor the execution of ESTAP and the Southern Highway rehabilitation. In mid-1997 a Natural Resources Specialist position was established (and filled) in the Country Office, and at Headquarters an ESTAP and Southern Highway Task Force has been formed to assist the Country Office carry out its responsibilities. Task Force members conducted the first annual ESTAP review (and will conduct similar reviews in subsequent years), prepared this report, and are currently engaged in selecting a long-term Country Office-based consultant, (requested by the Loan Committee) to assist the Bank address issues related to community consultation and land tenure and both in the ESTAP and related Bank projects in Belize.

5.4 To conclude, both the Executing Agency and the Bank are well positioned and staffed to carry out and oversee the execution of the ESTAP project. The Task Force also provides the Bank with a quick-response capability to respond to challenges that may arise as the implementation of the ESTAP project proceeds.

5.5 In view of the findings of the Bank Supervision Mission concerning the completion of the ESTAP Accomplishments (see paragraph 2.13) and progress in implementing the ESTAP Project, the Task Force recommends that the Country Office be authorized to approve the call for bids for the physical works on the Southern Highway under loan 1081/OC-BL.

1. The head of the Environmental Protection Unit and his assistant recently submitted their resignations. Replacement staff are being recruited.