2. The Pantanal/Upper Paraguay Project Promote the sustainable development of the basin through the implementation of the strategic activities identified in the Upper Paraguay Basin Conservation Plan (PCBAP) and the elaboration of a Strategic Action Program for the Integrated Management of the Pantanal and the Upper Paraguay Basin ­ SAP Background 1996-1997: Designing the Project - 3 Public Consultation Workshops (Cuiabá, Corumbá, and Campo Grande) - more than 200 stakeholders - 60 key institutions - more than 45 proposals based on the PCBAP 1998: Project approved by the GEF (UNEP ­ Implementing Agency, OAS ­ International Executing Agency, SRH/MMA - National Executing Agency (2000), ANA ­ National Executing Agency (from 2001). Cost and Financing GEF Grant Co-financing Government of Brazil UNEP/OAS Total Cost of the Project US$ 6,615,000 9,513,000 275,000 16,403,000 Objectives

3. Project Location Paraguay River Basin (Brazil, Argentina, Bolivia, and Paraguay) 1,095,000 km 2 - part of La Plata Basin (3,100,000 km 2 ) Upper Paraguay Basin (Brazil, Bolivia, and Paraguay) approximately 600,000km 2 362,376 km 2 in Brazil States of Mato Grosso (48%) and Mato Grosso do Sul (52%) The Pantanal One of the largest wetland areas on the planet ­ 147,574 km 2 Link between the biomes of the Brazilian Cerrados and the Chaco plains of Bolivia and Paraguay ­ Brazilian National Heritage Area (1988 Constitution) ­ Ramsar protected areas (1998) ­ UNESCO Biosphere Reserve (2000)

4. Project Location Paraguay River Basin (Brazil, Argentina, Bolivia, and Paraguay) 1,095,000 km 2 - part of La Plata Basin (3,100,000 km 2 ) Upper Paraguay Basin (Brazil, Bolivia, and Paraguay) approximately 600,000km 2 362,376 km 2 in Brazil States of Mato Grosso (48%) and Mato Grosso do Sul (52%) The Pantanal One of the largest wetland areas on the planet ­ 147,574 km 2 Link between the biomes of the Brazilian Cerrados and the Chaco plains of Bolivia and Paraguay ­ Brazilian National Heritage Area (1988 Constitution) ­ Ramsar protected areas (1998) ­ UNESCO Biosphere Reserve (2000)

5. Project Structure and Execution I. II. III. IV. V. VI. ­ 44 Activities ­ Institucional partners (direct execution): Federal institutions (4), State agencies (2), Municipal agencies (3), NGOs (5) ­ Institucional participation: more than 250 institutions Componentes I - Water Quality and Environment Protection; II - Conservation of the Pantanal; II - Land Degradation; IV - Stakeholder Involvement and Sustainable Development; V - Organizational Structure Development; VI - Integrated Watershed Management Program Implementation.

6. Main Results I. Water Quality and Environment Protection: Sound Scientific and Technical Basis for the basin management The mercury contamination in the UPRB is confined to a few specific regions, without threat of transboundary transport and contamination. More than 16,900,000 tons of sediments are retained in the Pantanal each year, resulting in the expansion of the flooded areas. Mapping and characterization of meander cuts in the Taquari River: The Arrombados Zé da Costa and Caronal (11,000 km 2 ) cause permanent floods in the Paiaguas Pantanal region. Implementation of Water Resources Information System for water users in the Upper Paraguay River Basin. Water Quality Reports for the Pantanal/MS, elaborated and published for 1999-2003. The volume of fish production in the Taquari River has been reduced by 20% during the last 15 years.

7. Main Results II. Conservation of the Pantanal: Preserving the natural habitat through Conservation Units and Sustainable Tourism Definition of Strategies for the Participative Action for the Biodiversity Conservation in the UPRB and Prioritization of Conservation Targets Creation of the State Park of the headwaters of the TaquariRiver Source (30,600 ha) and elaboration of the Park Management Plan Definition of area and strategies for the implemen- tation of the Pantanal-Cerrado Ecological Corridor Creation of the State System of Conservation Units in the State of Mato Grosso do Sul Management Plans for the buffer zones of the Acurizal, Penha, and Dorochê natural reserves, protecting the Pantanal National Park Geo-referenced Information System supporting the management and monitoring of the illegal live-animal trade.

8. Main Results III. Land Degradation: Rehabilitating Critical Areas Rehabilitation of an abandoned gold mine (3 ha, approximate volume of 280,000 m 3 ) in the city of Poconé (MT) and creation of a Mining Thematic Park Development of the Protection and Recovery Plan for the area of the Paraguay River headwaters (10,000 ha) Consolidated proposal for the Integrated Environmental Management of Solid Waste for the 19 municipalities of the Miranda and Apa river basins. Implementation of sustainable soil use practices: Non-tillage planting in the Upper Taquari

9. Main Results IV. Stakeholder Involvement and Sustainable Development: Including People, Municipalities, and the Private Sector in Developing Solutions Environmental Education Program for the Tourism Sector in the Miranda River sub-basin Aquaculture ­ source of alternative income for local producers in the Taquari river basin Bringing Environmental Education to Local School and Communities: Education and training program for local environmental agents Public-private partnerships: Methodology and training for sustainable management of the buffer zones and areas of nesting grounds in the Pantanal de Barão de Melgaço Community enpowerment and Sustainable Economic Activities: Live bait collectors ­ the new members of the State Fishing Council

10. Main Results V. Organizational Structure: Improving Institutional and Staffing Capabilities for Integrated Water Management Environmental Management System for the border Municipality of Corumbá, including formulation of environmental legislation, implementation of environmental licenses, and GIS information system. Establishing institutional partnerships and strengthening environmental bodies in the states of MT and MS. Strengthening local governments: training of the Inter- municipal Water Resources Consortia in the Miranda and Apa sub-basins (CIDEMA) and the Taquari river basin (COINTA) Training of more than 1,000 public managers, community voluntary agents, and NGO representatives in water management issues. Hydrological Model for the Pantanal and the UPRB Creation and implementation of ICMS Ecológico, an eco-tax stimulating the establishment of Conservation Units in MS Assesment of the impact of water charges in the Cuiabá river basin estimated income: US$ 20,5 million (10 years)

11. Main Results VI. Strategic Action Program for the Integrated Management of the Upper Paraguay River Basin Diagnostic Analysis of the Basin - DAB ­ 112 stakeholders ­ 40 institutions Strategic Action Program for the Integrated Management of the Pantanal and Upper Paraguay River Basin ­ SAP ­ 5 public events ­ 363 participants from the government and NGO sector, and civil society members ­ more than 60 institutions

12. DAB - Basin Problems and Related Critical Issues: Related To Anthropogenic Actions Related To Hydrological System Flow Related To Socio-political Organization Water Pollution Soil Degradation Biodiversity Loss Critical Events Emerging Water Use Conflicts Social and Economic Losses Political and Institutional Weakness and Lack of Implementation of the Instruments for Water Resources Management

13. The Strategic Action Program - SAP The Strategic Action Program was prepared between February and August 2004 on the basis of the results from the feasibility studies and demonstration projects, the causal chain analysis of the basin critical issues of the DAB, and the series of debates held during the DAB/SAP preparation process. The 8 DAB/SAP public events involved 478 representatives from 60 basin institutions

14. Strategic Actions and Selected Activities ­ SAP Strategic action program for the integrated management of the Pantanal and Upper Paraguay River Basin ­ SAP Component Component I Strengthening of Integrated Water Resources Management Institutions Component Component II Sustainable Development and Protection of Biodiversity Component Component III Soil Conservation and Rational Land Use 1.II.1 Deployment of management instruments and strengthening of links between institutions Strategic Actions I.2 Partnership: Brazil ­ Paraguay - Bolivia I.3 Monitoring and control of flows and water quality II.1 Environmental protection of the Pantanal Strategic Actions II.2 Establishment of Conservation Units II.3 Guidelines for the use of environmentally sustainable methods and techniques III.1 Strengthening of the system for the control of land use and settlement on the Plateau Strategic Actions III.2 Soil Conservation on the Plateau and in the Pantanal Activities

15. Sustainability of the Strategic Actions: Programmed Investments Federal and State Pluriannual Plans Investments (2004 a 2007): US$ 149,100,000 Other Investments for the Basin: Pantanal Program (MMA/States of MT and MS/IDB); ISARM Americas Program ­ Transboundary Aquifers of the Americas (UNESCO ­ OAS) Water Resources Observatory in the UPRB (FFEM) NGOs Programs and Projects US$ 30,500,000 from the Federal Government US$ 65,500,000 from the State of Mato Grosso US$53,100,000 from the State of Mato Grosso do Sul Framework Program for the La Plata Basin (Brazil, Bolivia, Argentina, Paraguay, and Uruguay/GEF/UNEP/OAS) Guarany Aquifer System Project (Brazil, Argentina, Paraguay, and Uruguay /GEF/World Bank/OAS)

16. Unprecedented Mobilization of Basin Stakeholders 116 public events 4,533 participants 258 organizations (47 federal, 30 state, 55 municipal, 66 NGOs, 45 private enterprises, 3 international organizations, 12 foreign-country institutions) Water Quality Reports for the Pantanal/MS (1999-2003) International Seminar for the Integrated Management of the Transboundary Apa River (Brazil-Paraguai) Seminar on Strategic Actions for the Transboundary Integrated Management of the UPRB (Brazil-Bolivia) DVD Introducing the Pantanal/UPRB Project (Portuguese, English, and Spanish) VHS Ecological Corridor Pantanal-Cerrado DVD Taquari River: Problems and Solutions (Portuguese and English) NGOs ­ 26% Municipalities ­ 22% Federal ­ 18% Private ­ 17% State ­ 12% Other Countries ­ 4% Internacional Organization ­ 1%

17. Global Benefits and Lessons Learned: Protecting the Largest Wetland in the World and Globally Important Natural Area Lessons with potential application in other parts of the world: Integrating natural resource values into human economic development programs and policies Identifying and implementing appropriate practical measures that balance human use of important ecosystems with the ecological requirements of such systems Protecting critical ecosystems, including riparian forests, wetlands, and floodplains while protecting and sustainably harvesting species of economic importance by using innovative approaches such as aquaculture that provide traditional people with alternative economic opportunities Including people, municipalities, and the private sector in developing solutions to water use conflicts in a complex river basin Disseminating information throughout the basin and providing feedback to basin stakeholders and communities on the achieved results Encouraging community action through developing and utilizing local knowledge for thesustainable exploitation of natural resources Coordinating activities and strategies between the three countries involved for sustainable and integrated water resources management of the transboundary basin

18. Communication and Dissemination www.ana.gov.br/gefap/ 3,000 copies in portuguese of the SAP/DAB for national distribution 2,500 copies in english of the SAP/DAB forworldwide dissemination including III GEF IW Conference in Rio de Janeiro 2,000 copies in portuguese of the SAP/DABExecutive Summary 2,000 copies in english of the SAP/DABExecutive Summary All Project Documents, Products, and Results are available in Portuguese and English at:

19. National Water Agency ­ ANA Paulo Lopes Varella Neto Program and Project Superintendent GEF Pantanal / Upper Paraguay National Coordinator paulovarella@ana.gov.br Thanks for attention www.ana.gov.br