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BROAD DEVELOPMENT GOALS
1. The goal of the Strategic Action Program for the Binational Basin of the Bermejo River is to promote environmentally sustainable development within the basin, taking into consideration the program of investments being prepared by the Binational Commission for the Development of the Upper Bermejo and Grande de Tarija Rivers Basins.
BASELINE SITUATION
2. The baseline situation consists of: (1) a long term development program for the Upper Basin of the River, where investments in three dams and reservoirs, hydropower generation, roads and some irrigation infrastructure are being planned for construction in the next ten to fifteen years; (2) A minimum of environmentally related activities, basically those considered as remedies to problems created by the construction of the reservoirs described in (1), and forming part of the environmental impact assessments: and, (3) Relatively uncoordinated activities and concerns being planned or executed by many government agencies of both governments and/or private parties, in the whole basin or even outside it - some creating negative impacts and others seeking to redress or mitigate negative impacts - requiring some coordination.
3. The baseline activities in category (1) include: (a) a program of investments for an estimated US$ 460 million (See Annex 1), to be executed primarily with private sector participation, under a concessionary program to be devised in consultation with interested investors; (b) additional investments required for general development of irrigated agriculture, industry and urban infrastructure, not calculated yet, but possibly in an order of magnitude comparable to (a) above; and (c) possibly compensation or subsidies to investors willing to develop some of the activities in (a), not yet defined.
4. Costs of these general development programs have not been considered in the calculations presented in Table 1; those activities, however, are a main reason for a GEF financed project in the basin, and may be subject to substantial modification as a result of the GEF project, in order to take into consideration sustainable development. In this sense, a modest GEF project in the Bermejo might have a substantial leverage effect, redefining projects that might, otherwise, have not been environmentally aware.
5. Table 1 has included some of the costs belonging to category (3): activities presently being executed by some government agencies, having direct relation to specific Program Elements. Baseline costs are the amounts that would be justified in the next two years without consideration of tranboundary effects.
GEF ALTERNATIVE SITUATION
6. The alternative situation consists of the actions needed to both introduce sustainable development within projects of development in the Bermejo River Basin, and capture the resulting global environmental benefits, including transboundary environmental problems. These are the costs necessary to include sustainable development concerns in projects for the development of the basin over and above the requirements of regular environmental impact assessments.
7. Development of the Bermejo River Basin will be directed and coordinated by the Binational Commission. This new agency will require strengthening, to be provided through GEF support.
8. Each Activity of the project, its baseline cost and incremental cost is presented in Table 1, and analyzed below.
9. Activity 1 (Project Element 1.1). The baseline cost of this alternatives US$100,000, and is associated with continued monitoring of the streamflow of the Paraguay and Parana rivers and the transportation of sediments, using the same methods as were utilized in the last year. During the PDF/B process it was concluded that additional observations were required in the Upper Bermejo tributaries, as well as additional simulations utilizing available models, to adequately evaluate the future behavior of Paraguay and Parana Rivers, as detailed in Program Element 1.1. The alternative project cost are US$ 440,000: GEF funding in the amount of US$200,000 is requested for consulting costs, travel expenses, preparation and use of models describing the behavior of the basin, and similar components. UNEP is expected to contribute US$ 50,000, and the Governments of Argentina and Bolivia US$190,000 to cover reinforcement of the hydrometeorological network, personnel costs, and additional operation costs.
10. Activity 2 (Project Elements 2.1 through 2.6). The baseline cost of this activity is US$ 260,000, and is comprised of the cost associated with controlling erosion in the Santa Ana-Camacho area of the Central Valley of Tarija, Bolivia (S$60,000) and the cost of providing improved information for environmental zoning in the Lower Basin within Argentina (US$ 200,000). The alternative project cost is US$1,735,000: GEF funding in the amount of US$900,000 is requested for consulting costs, travel expenses, purchase of basic equipment and remote sensor imagery. Work required is described in Program Elements 2.1 through 2.6. UNEP is expected to contribute US$ 100,000 and the Governments of Argentina and Bolivia US$735,000 to cover strengthening of human resources capacity, reinforcement of institutions working in the basin, and additional operation costs.
11. Activity 3 (Project Elements 3.1 through 3.4). The baseline cost of this activity is US$ 150,000, and is comprised of the cost incurred by the Governments and NGOs associated with controlling erosion in the Tolomosa area of the Central Valley of Tarija, Bolivia and the Yungas region, Salta Province, Argentina, including actions being taken by the University of Tucumán. The alternative project cost is US$1,260,000: GEF funding in the amount of US$725,000 is requested for implementation of demonstration projects activities (covering popular participation and the cost of the construction of dikes and sediment control works, the supply of seeds and seedlings, some agricultural equipment and partial on-farm costs). Work programmed has been described in Program Elements 3.1 through 3.4. The Governments of Argentina and Bolivia are expected to contribute US$535,000 to cover strengthening of human resources capacity, and additional operation costs.
12. Activity 4 (Project Elements 4.1 through 4.3). The baseline cost of this activity is US$160,000, and is comprised of the cost incurred in monitoring streamflow and sediment transport within the Bermejo River Basin; and some costs associated with the improved management in Tariquia National Reserve. Needs for additional work were identified during PDF/B preparation, in order to obtain the information detailed in Program Elements 4.1 through 4.3, and in the consultants reports mentioned in paragraph 6 of the Proposal. The alternative project cost is US$480,000: GEF funding in the amount of US$ 230,000 is requested to improve the design of the international network of hydrometeorological observations, install a few additional key stations, support national efforts at improving environmental regulations and establish a corridor between Tariquia and Baritu National Parks. The Governments of Argentina y Bolivia are expected to contribute US$250,000 to cover additional equipment and installation of new hydrometeorological stations and reinforcement of institutional capacity.
13. Activity 5 (Project Elements 5.1 and 5.2). The baseline cost of this activity is US$20,000, and is comprised of the cost incurred in undertaking current statistical surveys of migrants at frontier stations. Needs for additional, environmentally focused research were identified in the PDF/B preparation, as presented in Program Elements 5.1 and 5.2. The alternative cost is US$210,000: GEF funding in the amount of US$120,000 is requested to conduct additional special surveys and investigations into the environmental costs of transboundary migrations, and a demonstration project on environmental education in Formosa. The Governments of Argentina y Bolivia are expected to contribute US$90,000 in support of the migration surveys and environmental education project.
14. Activity 6 (Project Elements 6.1 and 6.2). The baseline cost of this activity is US$10,000, and is comprised of the cost regularly incurred in public participation activities in Tarija, Bolivia. The alternative project cost is US$1,600,000: GEF funding is requested in the amount of US$815,000 is requested to cover costs of formulating the SAP (including public participation), personnel, travel expenses, and some equipment required for the interconnection the offices of the Binational Commission in Argentina and Bolivia and government agencies involved in the development of the basin. Description of requirements are shown in Program Elements 6.1 and 6.2. The purchase of vehicles needed for field operations is also included, as is the costs of out reach materials seminars, courses and workshops. OAS is expected to contribute US$75,000, and the Governments of Argentina and Bolivia US$710,000 in support of operational costs, maintenance and operation of vehicles, public participation programs and strengthening of the Binational Commission.
ADDITIONAL DOMESTIC BENEFITS AND COSTS
15. Increased productivity of soils and other natural resources is a local benefit to be expected as a result of the activities of the Program. Those benefits, as well as additional costs associated with increasing productivity cannot be estimated at this moment, but are expected to be substantial; the Program is expected to produce accurate estimates of additional costs and benefits. An indication of the importance of additional domestic benefits to the Governments of Argentina and Bolivia is their willingness to co-finance 44% of the cost of the Alternative Project if GEF and UNEP/OAS contribute an additional 56%. At this stage of research it is reasonable to assume that this is the expected equivalent - and a reasonable compensation - for any local benefits originated in the Program.
TABLE 1. INCREMENTAL COST MATRIX IN US$