1. Implementation of Integrated Watershed Management Practices for the Pantanal and Upper Paraguay River Basin Project Overview Organization of American States Unit for Sustainable Development and Environment Agência Nacional de Água Ministerio do Meio Ambiente dos Recursos Hidricos e da Amazonia Legal do Brasil Global Environmental Facility United Nations Environmental Programme

2. The Upper Paraguay River Basin is a 496,000 km2 transboundary river basin shared by Brazil, Bolivia, and Paraguay. The Basin is one of the main components of the Plata Basin System, which drains almost 20 percent of the South American continent. Physical Background

3.  396,000km2 of UPRB are located in the States of Mato Grosso and Mato Grosso do Sul, Brazil.  Two interdependent ecosystems: upper sub- basin (or Rim) (256,000km2) and lower sub-basin (or Pantanal) (140,000km2) Upper Paraguay River Basin in Brazil

4. Planalto Rainfall exceeds 1,400mm/per year Definite seasonality Land surface used mainly for agriculture Pantanal World’s largest freshwater wetland Seasonal flooding (November- March) Meander cut-off, stream captures, displacement of outfalls The Upper Paraguay River Basin comprises two areas with significantly different water and natural resources conditions:

5. Natural Resources Rich and unique terrestrial and aquatic wildlife: 230 species of fish, 80 species of mammals, 81 of reptiles, and 650 species of birds contribute to the biological diversity of this large waterland Extensive diversity of highland and lowland forests and different kinds of Savanna (cerrado) Rich natural resources including lands suitable for agricultural and pastoral development Rich mineral resources including iron, manganese, copper, gold, limestone, etc. with good potential for exploitation.

6. Socioeconomic Background Sparse human population, with density of 2.2 hab/km2 in Mato Grosso do Sul and 2.5 hab/km2 in Mato Grosso, Agriculture and livestock production, tourism and mining, Paraguay-Paraná Waterway Project (Hidrovia). Expansion of the agricultural frontier in the upper sub-basin: mechanized production of soybeans and rice,

7. Environmental Problem Areas  Wetlands: Declining species diversity among terrestrial flora, diminishing number and diversity of animals  Land Degradation: soil erosion estimated at 300 tons/km2/year in the upper sub-basin; draining of wetlands, industrial farming, introduction of exotic species, mining activities  Water Quality: contamination of surface and ground waters

8. Environmental Problem Areas  Environmental Education  Institutions: lack of appropriate laws and regulatory regimes for environmental control and ineffective management  Human Resources: lack of institutional capacity  Stakeholder Involvement: lack of appropriate forums for encouraging participation  Fisheries: contamination, overharvesting, changes in species composition  Hydrology and flooding: flooding and channel movement  Urbanization and industrialization: surface or open cast mining, residential area encroachment, export processing zones etc  Economic Development: unregulated exploitation of lands and natural resources.

9. Project Background Plan for the Integrated Development of the Upper Paraguay River Basin (EDIBAP). Conducted by the Government of Brazil/OAS/UNDP, 1978-1981, the Project formulated a series of economic development proposals for the Pantanal region, based on the principles of environmental conservation, ecological balance, and rational use of land. Upper Paraguay River Basin Conservation Plan (PCBAP). Conducted by the Government of Brazil/The World Bank, 1991, this plan employed an environmental zoning approach to delineate general and site-specific guidelines for the conservation, rehabilitation and preservation of degraded lands; created a geographic information system; and proposed the operation of a real time flood warning system designed to prevent negative impacts in urban and rural areas. Field Mission to the UPRB, the Government of Brazil invited UNEP, OAS, and the World Bank, 1996

10. Project Objectives  Protect habitat (land and water) and its biodiversity against present mismanagement actions,  Diagnose, recommend, and implement measures to enhance public environmental awareness,  Promote sustainable economic activities to replace present non- sustainable practices,  Provide tools to strengthen and support institutions, train professionals, and educate community at large,  Develop and implement an Integrated Water Management Program.

11. Project Components  Water Quality and Environmental Protection  Conservation of the Pantanal  Land Degradation  Stakeholder Involvement and Sustainable Development  Organizational Structure Development  Integrated Watershed Management Program Implementation

12. Expected Key Results Improved environmental functioning of the Upper Paraguay River system through preservation and protection of the river system and the Pantanal; Improved Public awareness, stakeholder participation, and organizational development; Improved individual capacities for economically sustainable development and environmental protection, conservation, and management.