Project co–financing strategy – Experience, Challenges and Lessons Learnt –

1. UNDP/GEF: Integrated Ecosystem Management in the Prespa Lakes Basin of Albania, Macedonia and Greece Project co–financing strategy – Experience, Challenges and Lessons Learnt – Daniela Stefkova, GEF Operational Focal Point for Macedonia Dimitrija Sekovski, UNDP/GEF National Project Manager Dubrovnik 2009

2. Transboundary Prespa Lakes Basin- Basin area of 1,600 sq km shared between the three neighboring countries (MK 62%, AL 17%, GR 21%)- Approximately 30,000 inhabitants (MK 75%, AL 17%, GR 8%)- Local economy based on agriculture, tourism, fishing, NTFPs, factories in MK…

4. Prespa region: unique values of the ecosystem under continuous stress • Underlyingcauses for stress on ecosystem health: • Serious decline of the water level of the Prespa Lake • Inappropriate scale for land-use and water use planning • Ecosystem objectives not sufficiently incorporated into the sectoral law and regulatory instruments • Pollution from pesticides, fertilizers and industrial compounds • Waste management practices (agricultural, industrial, domestic) • Fisheries and forestry management practices • Protected areas management • Wastewater management etc.

5. Supporting the trilateral initiative • History • Trilateral Declaration – signed 02 February 2000 • Trilateral Prespa Park Coordination Committee • Strategic Action Plan for the Sustainable Development of the Prespa region adopted in 2003 • Resource mobilization efforts • National Governments, Municipalities (primarily in-kind contribution) • Donors: GTZ, KfW, GEF, UNDP, SDC, REC, SIDA, NATO, WWF (through Society for the Protection of Prespa, GR), MedWet… • Projects in agriculture, infrastructure development, nature conservation and protected areas management, water and wastewater and solid waste management, river restoration, forest regeneration etc) • UNDP/GEF role: to coordinate and integrate the support by all donors (in cooperation with Ministry of Environment and Physical Planning and Municipality of Resen) • Advantage: Existence of locally based Project Management Unit (PMU) established during PDF – B stage (January 2004)

7. Complementary/parallel funding provided by other Donors and Governments: • KfW: 5,000,000 USD • NATO: 250,000 USD • Ministry of Environment and Physical Planning (MK): 300,000 USD • Ministry of Environment and Public Works (GR): 560,000 USD • Municipality of Resen: 780,000 USD • Italian Government: 1,000,000 USD • WWF (through SPP): • TOTAL: 12,330,000 USD (co-financing to GEF project prior to its submission for approval)

8. Co-financing arrangements- experience, examples and lessons learnt - • Building on existing initiatives provides opportunities for commitment and support by national governments and interested donors (Prespa Park, SAP) • High level commitment (Signing of Project Document; Working Group established by the Prime minister) • Provide coordination role for the other donor funded projects / Results: a) long-term cooperation with donors (for e.g. SDC) b) avoid duplication/overlapping with other projects pursuing similar objectives (for e.g. KfW interventions) • Maintain local office in the Project region as a key advantage compared to the other donors (bridging the gap between PDF-B and full-size GEF project with other complementary projects developed during PDF-B)

9. Co-financing arrangements- experience, examples and lessons learnt - • Promote transparency, provide adequate participation and maintain continuous communication with the key stakeholders including the affected communities to stimulate local resource mobilization actions: • Example: construction of wastewater treatment system in one rural community (GEF, MoEPP, local community raised more than 40,000 EUR to support the construction works) • Use the possibilities of the GEF Small Grants Programme (develop NGO implemented complementary projects for which parallel co-financing is provided by projects funded by donors other than GEF) • Examples: integrated crop production and integrated pest management in apple production • pesticide and fertilizer packaging management system (project proposal under preparation) • Provide support (professional, financial) to the subjects interested in implementing relevant initiatives to optimize the use of resources, avoid overlapping and ensure sustainability of results (matching funds) • Example: Co-financing from transboundary partners (WWF/SPP from Greece – support in the establishment of a basin-wide monitoring system)

10. Ensuring mechanisms for long-term support to the ecosystem priorities beyond the project closure • Ensure Central and Local Governments’ commitment for providing long-term funding for securing sustainability of the project results • Natural Capital Resource Center, the Ezerani Nature Reserve Management Body, Watershed Management Council, Environmental Monitoring system… • Spatial Plan and Water ManagementPlan for the Prespa Region (planning documents of highest legal power in the country endorsed by the Parliament; clear proposals with timeframe, budget and sources of financing) / planning horizon of 15 – 20 years • Develop and implement initiatives with potential for replication and scaling-up (in the same region and/or across the country): • Wastewater treatment plant • Spatial plans • Agricultural waste management • Water management plans • Other pilot initiatives (local action to serve as a model for national/regional replication)

11. THANK YOU!

12. The Prespa region