2. Ministry of the Environment and Energy (MINAE) Government of Costa Rica Ministry of the Environment and the Natural Resources (MARENA) Government of Nicaragua INTEGRATED MANAGEMENT OF WATER RESOURCE AND SUSTAINABLE DEVELOPMENT OF THE SAN JUAN RIVER BASIN AND ITS COASTAL ZONE (SJRB) General Secretariat of the Organization of American States (GS/OAS) United Nations Environment Programme (UNEP) Global Environment Facility (GEF)

3. Ia. PHYSICAL BACKGROUND

4. SJRB PROJECT AREA n Constitutes the most significant freshwater reserve in Central America n Coastal/Marine Zone Includes valuable habitats at the mouth of the San Juan River and the sedimentation plume in the marine zone n Land Area - Covers 38,569 km 2 24,684 km 2 (64%) in Nicaragua 13,885 km 2 (36%) in Costa Rica n Shared by Costa Rica and Nicaragua Nicaragua Costa Rica

5. HYDROGRAPHIC SYSTEM n Lake Nicaragua, consists of 104,109 hm 3 with an area of 8,000 km 2 n San Juan River Basin n Indio and Maíz River Basins (Nicaragua) n Colorado and Tortuguero River Basins (Costa Rica) n Lake Managua - Although the lake itself is not within the project area, the SJRB project considers its inputs in to the San Juan River Basin because of their negative environmental impacts - Lake Manuagua has at times been connected to the San Juan River Basin. For example, the torrential rainfall associated with Hurricane Mitch in October 1998 caused Lake Managua to overflow its banks, flooding the surrounding areas and sending water into Lake Nicaragua

6. WATER RESOURCES n Average Annual Rainfall: 1,500 - 6,000 mm n San Juan River Flow –475 m 3 /s at outlet of Lake Nicaragua –1,308 m 3 /s at mouth n Groundwater is abundant and of high quality

7. ELEVATION AND TERRESTRIAL ECOSYSTEMS 1. Dry tropical forest to the east, north and west of Lake Nicaragua 2. Cloud forest in the high areas of the Central Volcanic Cordillera n Elevation - Below 500 m asl in the majority of the river basin - 1,500-3,000 m asl in the Central Volcanic Cordillera n Terrestrial Ecosystems - The waters of the Lake Nicaragua-San Juan River watershed flow through at least eight distinct watershed flow through at least eight distinct terrestrial ecosystems terrestrial ecosystems 3. Moist tropical forest to the south and southwest of Lake Nicaragua and in the eastern foothills 4. Very moist tropical forest in the San Juan Valley and on the coastal plains 5. Gallery forest along river banks 6. Wetlands to the south of Lake Nicaragua and at the confluences of the Colorado and Tortuguero rivers with the San Juan 7. Second-growth forest, meadows, and agricultural land in extensive areas of the basin 8. Coastal forest and mangrove swamps on the Caribbean coast

8. BIOLOGICAL DIVERSITY AND PROTECTED AREAS n High biological diversity due to the confluence of the South American neo-tropical zone and the North American neo-artic zone n Region contains part of the largest tropical humid forest north of the Amazon region n 51 Protected Areas - 33 in Costa Rica, covering 4,257 km 2 - 18 in Nicaragua, covering 4,555 km 2 n Important coastal regions fall under protected status in both countries n Protected areas have not been created in accordance with river basin boundaries

9. Ib. SOCIO-ECONOMIC BACKGROUND

10. POPULATION n Total Population: 1,068,152 inhabitants, of which 73% reside in Nicaragua n In Nicaragua: Density 46 h/km 2 55% Rural n In Costa Rica: Density 22 h/km 2 85% Rural n Index of Average Annual Population Growth Population Growth - 4.1%/year (Nicaragua) - 3.7%/year (Costa Rica) n High population growth n Uncontrolled migration patterns

11. ECONOMIC CONDITIONS n Increasing pressure on the natural ecosystems due to expansion of the consolidated agricultural frontier in Costa Rica and a strong advance in Nicaragua, particularly in the Indio and Maíz River Basins AGRICULTURE and CATTLE RANCHING n Economic development in both countries is based predominantly on the primary sector, at the expense of the existing vegetation coverage n Low incomes and subsistence economies in rural areas, in Nicaragua n Expansion of commercial agriculture in Costa Rica

12. ECONOMIC CONDITIONS, cont. EXPLOITATION OF FOREST FOR WOOD AND ENERGY n The main cause of deforestation is the advance of the agriculture frontier and inappropriate forest exploitation. More lands are deforested for commercial agriculture and live-stock rearing n Also, equally important is the overexploitation of forest for wood and energy n In Nicaragua deforestation rates reach over 150,000 ha per year and in Costa Rica over 18,500 ha per year n Relative imbalance in employment and income-generating opportunities across the border

13. Ic. POLITICAL ORIGIN, REGIONAL CONTEXT, AND TECHNICAL COOPERATION BACKGROUND

14. POLITICAL ORIGIN n December 1992 - XIII Summit of Central American Presidents, Panama –Initial expression of support for a regional approach in the management of the SJRB n September 1993 - Forum of Central American Vice-Presidents, Guatemala –Central American Vice-Presidents reiterated support for regional development projects set forth in the Action Plan for the Development of Border Zones, which names the SJRB as a priority area. This led to the 1994 request, by the governments of Costa Rica and Nicaragua, to the UNEP and the OAS to undertake a diagnostic study on the state of the SJRB environment

15. REGIONAL CONTEXT n October 1994 - Central American Alliance for Sustainable Development (ALIDES), Managua –Execution of the SJRB project contributes to implementation of priorities set out under ALIDES, including economic goals, such as development of border areas; conservation of natural resources; protection of biodiversity, specifically the Meso-American Biological Corridor; achieving sustainable use of water resources, and protecting the integrity of drainage basins n May 1999 - Joint Declaration of the XXX Meeting of Central American Vice- Presidents, Managua –The SJRB will further contribute both to regional initiatives and to the development of an Action Plan for Integrated Water Resources Management on the Central American Isthmus, which is being implemented by the Regional Committee on Water Resources (CRRH) as Technical Secretariat of the Water Group created by the System for the Central American Integration (SICA)

16. TECHNICAL COOPERATION n 1995 - Diagnostic Study of the San Juan River Basin –The purpose of the study was to assess the environmental situation and form conclusions and guidelines for the formulation of a Strategic Action Program –Prepared by two technical units located in the Ministries of Environment of Costa Rica (MINAE) and Nicaragua (MARENA), with the technical assistance of UNEP and the GS/OAS –Completed in 1997

17. TECHNICAL COOPERATION, cont. 1997 - 1998 - Global Environment Facility (GEF) PDF Block B Grant 1997 - 1998 - Global Environment Facility (GEF) PDF Block B Grant –Prepared and negotiated by the governments of Costa Rica and Nicaragua, with the technical assistance of UNEP and the USDE of the GS/OAS. Activities during this phase focused on strengthening the San Juan River Basin Information System and bi-national coordination for the management of the river basin –Approved in July, 1998 as a GEF PDF Block B Project “Integrated Water Resource Management and Sustainable Development of the San Juan River Basin and its Coastal Zone” November 1999 - Completion of GEF Project Brief for the Formulation of a Strategic Action Program (SAP) for the SJRB November 1999 - Completion of GEF Project Brief for the Formulation of a Strategic Action Program (SAP) for the SJRB Proposal to procure financing for the formulation of a Strategic Action Program (SAP) for the Integrated Management of Water Resources and the Sustainable Development of the San Juan River Basin and its Coastal Zone –Implementing Agency: UNEP –Regional Executing Agency: GS/OAS –National Executing Agencies: MINAE and MARENA

18. CONCLUSIONS FROM THE INITIAL PHASES OF THE PROJECT n Water bodies and their associated biodiversity and natural ecosystems have inherent global value n Integration of land and water issues is necessary in the planning and management of water basins n An intersectoral focus is necessary in addressing causes of basin deterioration n There is a need for comprehensive basin-wide information on quality and quantity of water, and the hydrologic processes that affect sustainable development in the region n Strategic planning must incorporate actions based on local, national, and international interests in order to address transboundary issues

19. MORE CONCLUSIONS FROM THE INITIAL PHASES OF THE PROJECT n There is a need to promote and strengthen civil society, increase participation of women, and involve more people in making decisions on the sustainable development of the region n There is a need to define common objectives in the management of natural resources, and to reach agreement on the access to and use of water resources n Institutional capacity is inadequate for controlling and ensuring compliance with environmental legislation n Strong political will exists

20. II. STRATEGIC ACTION PROGRAM (SAP) FOR THE INTEGRATED MANAGEMENT OF WATER RESOURCES AND THE SUSTAINABLE DEVELOPMENT OF THE SJRB

21. ORGANIZATIONAL STRUCTURE FOR THE FORMULATION OF THE STRATEGIC ACTION PROGRAM (SAP)

22. STEERING COMMITTEE MINAE MARENA UNEP CONSULTATIVE COMMITTE COSTA RICA CIVIL SOC., ACADEMIA, LOCAL GOV. & GOVERNMENTAL INST. PUBLIC PARTICIPATION WORKSHOPS STRATEGIC ACTION PROGRAM FOR THE INTEGRATED MANAGEMENT OF WATER RESOURCES AND THE SUSTAINABLE DEVELOPMENT OF THE SJRB BASIC STUDIES DEMONSTRATION PROJECTS MINISTRIES OF FOREIGN AFFAIRS CONSULTATIVE COMMITTE NICARAGUA CIVIL SOC., ACADEMIA, LOCAL GOV. & GOVERNMENTAL INST. USDE GS/OAS WORLD BANK AND UNDP DONORS, BANKS AND COOPERATION ORGANIZATIONS MUNICIPALITIES TECHNICAL UNITS nNational Director Costa Rica National Director Technical Coordinator nTechnical Coord. Costa Rica nNational Director Nicaragua National Director Technical Coordinator nTechnical Coord. Nicaragua Consultants

23. FORMULATION OF THE SAP The ultimate objective of the SAP is to ensure that water resource goods and services are available to satisfy present and future needs for conserving both natural ecosystems and social and economic development, as agreed by all parties involved Proposed activities for the formulation of the SAP rely on the findings of the Transboundary Diagnostic Analysis (TDA) that was carried out during preparation of the Project Brief

24. PRESENT AND EMERGING ENVIRONMENTAL PROBLEMS (as determined by the TDA) n Accelerating Degradation of Transboundary Ecosystems, stemming from inadequate wastewater treatment, migratory agriculture, overgrazing, deforestation, unregulated ecotourism, and the introduction of aggressive exotic species; emerging problems include the increasing use of small hydropower plants without regard for environmental considerations n Overexploitation of Valuable Natural Resources, due to farming of hillsides and wetlands, construction of poorly designed roads, unregulated fishing, excessive exploitation of valuable moist tropical forest species, and destruction of plant cover in fragile areas

25. PRESENT AND EMERGING ENVIRONMENTAL PROBLEMS (cont.) (as determined by the TDA) n Pollution of Water Bodies, caused by the indiscriminate use of pesticides and fertilizers and by uncontrolled agroindustrial waste discharges n Soil Degradation and Increasing Sedimentation, caused primarily by inappropriate agricultural practices, inadequate road construction, and deforestation; emerging problems include open-pit mining and extraction of construction materials

26. PRESENT AND EMERGING ENVIRONMENTAL PROBLEMS (cont.) (as determined by the TDA) n High Vulnerability to Natural Hazards, as a result of poor infrastructure, farming on previously forested land, fragile soil, and areas exposed to landslides caused by hurricanes, tropical storms, and seismic or volcanic activity

27. MAJOR COMPONENTS OF THE FORMULATION OF THE SAP n Strengthening a basin-wide information system that provides mechanisms for gathering and disseminating data adequate for making decisions on integrated basin management n Creating a well coordinated bilateral planning process for the SJRB n Building capacity for sustainable development planning and management, improving infrastructure, equipping institutions and designing mechanisms to increase incomes of local and regional institutions

28. MAJOR COMPONENTS OF THE FORMULATION OF THE SAP (cont.) n Formulating and implementing environmental education activities n Promoting strategic actions, such as sustainable agricultural production, and restoration of deforested lands n Strengthening public institutions and private organizations to achieve a more active and effective participation on the sustainable development of the region n Implementing a gender oriented public participation process

29. EXPECTED RESULTS Completion of a Strategic Action Program for the Integrated Management of Water Resources and the Sustainable Development of the San Juan River Basin and its Coastal Zone A coordinated program of action conducted jointly by the Governments of Costa Rica and Nicaragua with the participation of local governments, non-governmental organizations, the private sector and organized civil society groups, will serve to guide and coordinate the investment in the SJRB, so that conflicts related to the use of the goods and services generated by the SJRB ecosystems are minimized, and agreed present and future water demands are met

30. EXPECTED RESULTS (cont.) Specific results will be: n Identification of Incremental Costs to reach Global Benefits n Identification of Baseline Investment -- Domestic Development Plans n Identification of Partners for the Execution of the Strategic Action Program

31. EXPECTED RESULTS (cont.) Public participation program for the implementation of the SAP Bi-national, national, and local institutional arrangements for the implementation of the SAP Integrated in the SAP, these two elements are the foundation for its formulation and execution, and have deserved particular attention throughout the execution of the project

32. ADDITIONAL EXPECTED RESULTS It is expected that the SJRB project will contribute to the development of the PACADIRH, which is being implemented by the Regional Committee on Water Resources (CRRH) as Technical Secretariat of the Water Group created by the System for the Central American Integration (SICA). The project also contributes to the strengthening of the MBC. In addition to the specific results sought by the project, relevant inputs for regional initiatives are expected Action Plan for Integrated Water Resources Management of the Central American Isthmus (PACADIRH) Meso-American Biological Corridor, MBC

33. This presentation was prepared by: the Unit for Sustainable Development and Environment of the General Secretariat of the Organization of American States For more information visit us at http://www.oas.org/usde/sanjuan.htm