1. Dr. Sergey Kudelya Project manager Integrated Natural Resource Management in the Baikal Basin Transboundary Ecosystem Russian Federation and Mongolia Baikal Project 2014 workplan and budget Third Steering Committee Meeting, 24 July 2014 Gremyachensk, Russia

2. Total proposed 2014 budget Project Outcomes Total budget (USD) Expenditure 2011+2012 Expenditure 2013 Proposed Budget 2014Budget balance Outcome 1: Strategic policy and planning framework $ 917 930.00 $ 486 312.97 $ 292 882.27 $ 109 425 $ 29 309.76 Outcome 2: Institutional Strengthening for IWRM. $ 751 534.00 $ 242 852.27 $ 218 659.92$ 184 500$ 105 521.81 Outcome 3: Demonstrating methods and approaches for water quality and biodiversity mainstreaming. $1 844 174.00 $ 202 329.09 $ 517 112.47$ 623 080$ 501 652.44 Project Management $ 384 362.00 $ 102 990.12 $ 98 744.84$ 92 210$ 90 417.04 TOTAL $3 898 000.00 $1 034 484.45 $1 127 399.5$ 1 009 215$ 726 901.05

3. Outcome 1: 2014 goals PROPOSED BUDGET: $109 425 Strategic Action Programme (SAP) development Regular water quality monitoring in the Selenga Delta Implementation of sub-basis watershed management plans

4. Outcome 2: 2014 goals PROPOSED BUDGET: $184 500 Support of the Plenipotentiaries meeting Support of the working group within implementation of the bilateral agreement 1995 “Protection and Use of Transboundary Waters" (PUTW) between Russia and Mongolia Enhance the legal and institutional framework of bilateral transboundary water cooperation. Develop training materials and organize trainings for enhancing INRM. Make second phase of and intercalibration for the harmonized water quality monitoring program for the Selenga Basin. Purchase an ion chromatograph procurement for Mongolia. Setting up the model of pollutants transport for the important areas of the Selenga river. Publications (training materials and etc.)

5. Outcome 3: 2014 goals PROPOSED BUDGET: $623 080 Pilot project for mainstreaming biodiversity into mining. Eco-tourism development in PAs of the Baikal Basin. “Reserve necklace of Baikal“. Eco-trail and an observation desk, pilot eco-camp construction for Zabaikalski protected area Complex eco-travel tour Baikal State Nature Biosphere Reserve, Russia. Biodiversity compatible tourism plan development for Baikalo- Lensky Reserve, Russia. EUROPARC integration support

6. Outcome 3: 2013 goals BIС (Baikal Information Center) maintenance. BIC GIS software and hardware procurement. BIС Ecological Atlas - printing. BIC NGO Network Friends of Baikal Basin. Shoreline clean-up campaigns of Baikal Lake, Khuvsgul Lake and the Selenga river. Local environmental inspectors support, Russia Pilot sport fishing program, Russia. Publications (strategies implemented at 4 sites mining sites, ecotourism materials, training materials and etc.)

7. Pro-doc change 1 p.64 Strategic Results Framework Results framework, General objective. MTE comment Pollution levels in pollution hot spot monitoring areas Mercury, other mining pollutants at elevated levels in hot spot areas. Specific levels TBD at inception. Reduction of at least 20% in target areas by EoP It is not anticipated that the project will directly contribute to reducing pollution in hotspots by the end of the project, with the exception of the benefits expected from the closure of the Irkutsk paper mill. Mid-Term evaluation Report: Considering it is only the mid-point of the project, it is early to expect there to be any notable impact level results, and certainly not Global Environmental Benefits. Both site-level impacts, and broader Global Environmental Benefits are often not likely to be achieved in the lifetime of a single project, which has only a four-year implementation period. In addition, the project has relatively few on-the- ground demonstration or pilot activities, and the project strategy is long-term, primarily focused on increasing knowledge and understanding of the Baikal watershed ecosystem(s), strengthening environmental management institutions and mechanisms, and developing the SAP to undertake future activities and efforts for improving the integrated watershed management in the Baikal basin. Once the environmentally friendly mining demonstration activities are completed there may be some site-level impacts that could be documented and attributed to the project. The closing of the Irkutsk paper mill plant will certainly have positive impact level results, though this was primarily an initiative of the Russian government, without significant contribution from the project. In any case, in an area the size of the Baikal watershed (an area approximately the size of France) there are numerous actors and stakeholders, and it is difficult to identify the specific contribution of one four-year ~$4.00 million dollar project. Proposal for changing: Remove this indicator from Strategic Results Framework. Reason for changing: Mid-Term evaluation report. Achievement Uncertain.

8. Pro-doc change 2 p.65 Strategic Results Framework Results framework, General objective. MTE comment Outcome 2: Institutional strengthening for IWRM Governments of Russia and Mongolia extend/do not extend legal status to Joint Commission on Baikal Basin. Joint Russian- Mongolian Task Force on Transboundary Waters Use is not a legal entity. Legal status obtained under Russian and Mongolian law by end of year 3. 2013 PIR: Concept paper and road map for the process of developing and enhancing the legal and institutional framework of bilateral transboundary water cooperation have been developed. During Second Steering Committee Meeting the decision of preparation of new bilateral agreement with Joint Commission structure has been made. Outcome 2: Institutional strengthening for IWRM Full-time Executive Director of Joint Commission appointed/not appointed. No full time director of Joint Task Force. Appointed by year 4. No full time director of Joint Task Force Proposal for changing: Remove this indicator from Strategic Results Framework. Reason for changing: Mid-Term evaluation report. Achievement Uncertain.

9. Pro-doc change 3 Mid-Term evaluation Report: Another issue is whether the two countries will agree to a revised and updated transboundary agreement for water and environmental management; the draft agreement produced with project support has evidently received a positive response at high levels in the Russian government, but the view from Mongolia remains uncertain as there has as of this mid-term evaluation been no official reply regarding the draft agreement. Finally, there is a question of whether the two countries will take steps to strengthen and enhance the joint institutional mechanism for addressing transboundary water management issues. While the topic has been raised at PSC meetings and other project events, neither Russia nor Mongolia has thus far indicated a strong willingness to change the status quo of the plenipotentiaries mechanism and the 1995 agreement. Considering the issues at stake, such as the fact that Mongolia is in the process of conducting feasibility assessments for hydropower development in the Selenga watershed, it would be highly useful for Russia and Mongolia to have a well- established mechanism for substantive dialogue and cooperation on natural resource management issues in the Baikal basin. This would not necessarily require a “new” Joint Commission with full-time staff, as discussed in the project document, but would require enhancements to the status quo. Key Recommendation 2: The project should explore the possibility of providing further immediate support to the government of Mongolia for reviewing and analyzing the draft revised transboundary agreement with Russia. This approach would follow similar activities undertaken in previous donor projects in which the project supported activities such as expert legal analysis, and consultation with the Department of Justice. Being a transboundary agreement, this would be facilitated in collaboration with both the MNGD and the Ministry of Foreign Affairs. The UNDP Mongolia Country Office may be able to help facilitate such an approach. [PMU, PSC] Recommendation 6: The project should consider a variety of approaches to increase the chances of the two countries moving toward accepting the revised and updated transboundary water and environment management agreement. One opportunity could be to hold a media event highlighting “20 years of cooperation” on water management between Russia and Mongolia (or even 40 years, going back to the 1974 agreement). This theme could also be extended to an academic conference on the subject where participants discuss and explore current key topics related to transboundary water management for the two countries. [MNRE, MNGD, PMU, PSC]

10. Pro-doc change 3 p.65 Strategic Results Framework Results framework, General objective. Outcome 2: Institutional strengthening for IWRM New bilateral agreement with Joint Commission structure has been made and submitted in Russian and Mongolian governments. noneNew bilateral agreement developed and feedback received from Russia and Mogolia by end of year 3. Consultations around new bilateral agreement were made. Proposal for changing: Change this indicator from Strategic Results Framework. Reason for changing: Mid-Term evaluation report. Achievement Uncertain.

11. Mid-Term recommendations management response Key Recommendation I: The SAP development process should include consultations with sub-national government stakeholders, such as soum and aimag level government representatives in Mongolia. To ensure implementation of the SAP it must be integrated with the planning processes and policies of the Aimags whose territories are included in the Selenga basin. The project could support at least one round of stakeholder consultations, which should be held in the early phases of SAP development (presumably in the third quarter of 2014). If necessary the project should transfer resources from Outcome 3 to Outcome 1 to cover these activities. This could be facilitated through the environment departments of the Aimag governments. Management Response: Consultations with sub-national government stakeholders will be organized in the fourth quarter of 2014 and first quarter of 2015. Necessary resources will be transferred from Outcome 3 to Outcome 1 to cover these activities after the PSC approval on the third SC meeting in July 2014.

12. Mid-Term recommendations management response Key Recommendation II: The project should explore the possibility of providing further immediate support to the government of Mongolia for reviewing and analyzing the draft revised transboundary agreement with Russia. This approach would follow similar activities undertaken in previous donor projects in which the project supported activities such as expert legal analysis, and consultation with the Department of Justice. Being a transboundary agreement, this would be facilitated in collaboration with both the MEGD and the Ministry of Foreign Affairs. The UNDP Mongolia Country Office may be able to help facilitate such an approach. Management Response: Consultations with the Department of Justice of MEGD will be organized with the support of UNDP Mongolia Country Office and under the lead of international legal expert.

13. Mid-Term recommendations management response Key Recommendation III: It is recommended that the project explore all potential opportunities to undertake additional demonstration or pilot activities in Mongolia related to integrated natural resource management. The project has thus far included relatively few practical on-the-ground activities in Mongolia, and such activities are often important for gaining stakeholder support and buy-in, and raising awareness. This could have important dividends for the project in Mongolia, by engaging aimag and soum government stakeholders. Management Response: Demonstration or pilot activities in Mongolia are not mentioned in the project document but this key recommendation will be raised on the third SC meeting and after consideration will be taken into account in the 2015 project workplan.

14. Mid-Term recommendations management response Key Recommendation IV: The project should consider a variety of approaches to increase the chances of the two countries moving toward accepting the revised and updated transboundary water and environment management agreement. One opportunity could be to hold a media event highlighting “20 years of cooperation” on water management between Russia and Mongolia (or even 40 years, going back to the 1974 agreement). This theme could also be extended to an academic conference on the subject where participants discuss and explore current key topics related to transboundary water management for the two countries. Management Response: The Baikal project will organize a conference “20 years of cooperation” on water management between Russia and Mongolia (or even 40 years, going back to the 1974 agreement) after both government approvals.

15. 2015 arrangements - discussion January 2015 – 2014 Results, 2015 workplan and budget will be sent to SC members for approval 20 June 2015 – official final date of the project. PMU proposal - No Cost Extension till 20 December 2015. July-August 2015 - Final Steering Committee September 2015 - final evaluation. October–November 2015 – Project closure

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