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DAM SYNCHRONISATION AND FLOOD RELEASES IN THE ZAMBEZI RIVER BASIN: ANNEX 4 OF FINAL REPORT CARRY OUT A FINANCIAL ASSESSMENT OF THE PROJECT RECOMMENDATIONS AND THE IMPLICATIONS OF IMPLEMENTATION Intervention Sheet 4.11 Time Short to Budget Budget to be determined per # Frame: long term range: recommendation to be investigated. Linkages Main report, Annex 1, Annex 2, Annex 3, Annex 4 Concept: To implement each of the project recommendations will draw upon financial resources of the organisations responsible for implementation and the implementation may have positive or negative economic and social impacts. Purpose To prioritize and develop the project intervention sheets into bankable project proposals, assessment of the financial, economic and social impacts of implementing the Project‘s recommendations is recommended. Justification: The Project presents overall concepts and recommendations on ways and means of improving dam management, flow forecasting, hydropower generation, flood protection and environmental flows in the Zambezi River Basin. In general, studies that to improve the dam operating rules and the development of a basin-wide flow forecasting system or investments that improve flood protection or environmental releases, can contribute to the transboundary management of the Zambezi River with due regard for all diverging interests. Some of the Project's interventions are studies and assessments, including pilot projects. It is premature at this stage to give a comprehensive "if/then" analysis of all the Project's recommendations. Implementing dam management recommendations for the benefit of flood protection or environmental releases will affect power generation. A basin-wide flow forecasting system will provide other benefits besides flood protection and environmental releases, such as improved power production and drought management. Most of the investments investigated in the Project do not consider water management issues for the prevention of floods or the regulation of environmental releases as a first objective. Therefore implementing the recommendations of this the Project may require compromises or may have additional benefits. Actions/ Responsibility Benefits/ Beneficiaries: Means of implementation: Specific assumptions/risks The intention of this recommendation is to provide a holistic understanding of the financial, economic and social costs, risks and benefits of the proposed Project Recommendations that are taken further. This financial, economic and social assessment of the Project's Recommendations will facilitate the identification and improved understanding of the anticipated impacts should the Recommendations be implemented and would be the first step in preparing stakeholders, decision makers and funding agencies for implementation, before any commitments are made. It is thus important and critical that this assessment is undertaken before implementation of the preselected recommendations. Carry out an Assessment Study on the ZAMCOM Secretariat, Consultant financial, economic and social impacts of implementing the Project‘s Recommendations. Improved understanding of the overall financial, economic and social impacts of implementing each Project Recommendation, if selected for assessment. This will inform potentialstakeholders /funders before any commitment to implementation is made. Better informed prioritization of the Recommendations. Possibility to initiate development of risk management plans for recommendations that may have negative impacts. All stakeholders, but the main beneficiaries would be Dam and Barrage Operators, Disaster Management Agencies and the citizens of Riparian States living in flood prone areas. Organisations responsible for or funding the recommendations Stakeholders negatively affected by implementation of the recommendations. Or those responsible to mitigate negative impacts. Assessment study / Assessment studies for groups of recommendations. This should be considered as a short to long term intervention to allow prioritization and sequencing of the Project‘s recommendations. Depending on the particular recommendation being investigated, dam operators, power producers and stakeholders would need to be engaged to obtain their acceptance of the 120
DAM SYNCHRONISATION AND FLOOD RELEASES IN THE ZAMBEZI RIVER BASIN: ANNEX 4 OF FINAL REPORT Comments associated assessment. It is not logical to undertake such assessments for all recommendations as this will increase the cost of each assessment and additionally be too complicated to manage. Each of the recommendations have been prioritized in the Main Report. If this prioritization is accepted by the stakeholders, recommendations of Priority 1 and recommendations that would need long preparation times would be given priority for assessment. Some recommendations clearly do not have large financial costs or high economic and social impacts so do not need an assessment at all. Before starting an assessment as proposed above, dependent on the project recommendation considered, the availability of data to do such an assessment and the possible insights that can be gained within the project budget and time should critically be looked at. Some insights in impacts can only be computed a priori at a very course level of accuracy, because of all other external influences that will impact on the objectives of the project recommendation. It also needs to be taken into consideration if prioritization will take place at catchment scale or at national scale (see chapter 11). This is a cross-cutting Recommendation that does not deal with Investments only but with all Project Outputs. It has been placed under Annex 4 as this is the closing Annex and because social and economic impacts are mainly discussed in this Annex. 121
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