Coastal Resilience and Sustainable Tourism Project

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Climate change resilience, coastal adaptation and the sustainable tourism agendas are inextricably linked in São Tome e Principe (STF). The STP Coastal Areas Resilience and Sustainable Tourism Project (WACA+) aims to to strengthen the resilience of targeted coastal communities and promote sustainable tourism in São Tome e Principe, through two interrelated operational components, in addition to components on project management and Contingent Emergency Response Component (CERC). The operation builds on foundations and lessons learned from the West Africa Coastal Areas Resilience Investment Project (WACA, P162337), further strengthening early warning and disaster risk management systems, and financing coastal adaptation investments in priority areas. In addition, it will develop institutional capacity for the development of sustainable tourism and carry out investments to catalyze a sustainable tourism economy in selected destinations, building on the experience of other small island and coastal states. Project components are summarized below. 1. Strengthening the Policy and Institutional Framework for Coastal AdaptationThis component will support improvements in the regulatory and institutional framework underpinning coastal adaptation and tourism development. Sub-component 1.1: Policy and Institutional Framework for Coastal AdaptationThis subcomponent aims to strengthen STP's policy framework and key institutions involved in coastal management and adaptation, weather and climate services, and disaster risk reduction through technical and financial support. The following specific areas will be targeted: (i) strengthening the National EWS, with a focus on improving the capacity to generate and transmit more accurate and reliable meteorological forecasts and warnings in a timely manner to allow effective early actions; (ii) strengthening the National Council for Disaster Prevention and Response (CONPREC), the National Service for Civil Protection and Fire Brigade, and local risk management committees (LRMCs) to enhance their capacity to reduce and manage disaster risks; (iii) enhancing the capacity of relevant institutions to reduce and manage incidents at sea due meteorological-related conditions, with a specific focus on artisanal fishers; (iv) implementing recommendations from the WB-supported Disaster Risk Finance (DRF) diagnostic (ongoing) to support a risk layering approach; and (vi) strengthening the national coastal observatory within the context of the WACA network of national coastal observatories.Sub-component 1.2. Supporting the Blue Economy TransitionThis sub-component will support planning and institutional strengthening activities aligned with STP’s Blue Economy Transition Strategy. Activities will be implemented in coordination with Government entities and other stakeholders engaged in the blue economy, including the Blue Economy Intelligence Unit at the Ministry of Planning, Finance, and Blue Economy (MPFEA). It will: (i) support legal framework, capacity building and policy reform on integrated blue economy planning and specific blue economy sectors (e.g. sustainable fisheries, energy, transport, natural resource extraction, trade, tourism etc.); (ii) provide analytics and technical assistance towards the implementation of the Blue Economy Transition Investment Plan; (iii) undertake demand-driven assessments and studies linked the blue economy, such as alternatives to the unregulated sand extraction and use in the construction sector, just-in-time feasibility assessments for investment projects, ecosystem extent and health analysis and carbon assessments. This sub-component is under the overall technical responsibility of the MPFEA.Sub-component 1.3. Institutional Capacity for Sustainable Tourism DevelopmentThis sub-component will support DGTH in upgrading its capacity for better tourism planning and management, involving other relevant agencies. As priority, the project will strengthen the capacity and resources of DGTH to undertake essential functions, such as improving its internal organization, managing the Tourism Fund, and elaborating and deploying promotional strategies for destination promotion, with a focus on digital tools. The project will support DGTH to increase STP’s digital presence and brand visibility to reach untapped demand and support expanding to new markets. The activities will strengthen DGTH’s convening role in policy dialogue and coordination of initiatives promoting sustainable tourism and private tourism investment. This may include studies and technical assistance on good practices for sustainable destination planning and management, financing of low carbon tourism development, and public-private dialogue. The subcomponent will support the development, in collaboration with the private sector, of sustainability and quality guidelines for accommodation and tour operator, which will include follow up to measure uptake. This subcomponent will also reinforce inter-institutional coordination for the production of tourism statistics and deployment of visitor surveys by strengthening the coordination with relevant stakeholders such as the National Statistics Institute (INE) and Service of Migration and Frontiers (SMF). 2. Strengthening National Physical and Social Investments This component will have a geographic focus and will support investments in coastal adaptation and community climate and economic resilience, and the implementation of selected integrated tourism destination initiativesSub-component 2.1 - Physical and social investments for coastal resilience This sub-component aims to increase the resilience of targeted coastal areas by financing physical and social investments in select vulnerable coastal communities. It will support site-specific grey, green, and/or hybrid physical rehabilitation and infrastructure investments for erosion and flood control, as well as the planned relocation strategy underway in target communities. In terms of erosion and flood control, the project will support: (i) green infrastructure, such as vegetation enrichment aimed at trapping sand and protecting coastal areas; mangrove and coastal forest restoration; and beach replenishment; (ii) grey infrastructure such as the construction of breakwaters, seawalls, revetments, groynes, dikes and drainage channels; and (iii) land claiming and reclamation. In terms of planned relocation, the project will support: (i) development of green spaces in SEZs, using, where feasible, alternative construction materials; (ii) supporting social infrastructure within SEZs (e.g. schools), based on needs ; and (iii) the promotion of economic development opportunities within SEZs and targeted communities, through training and advice to connect access financing opportunities. Sub-component 2.2. Integrated Tourism Destination Development33. This sub-component aims to improve the physical conditions of high-potential tourism areas and increase economic opportunities from tourism for the local MSMEs and communities. This will be done by identifying a short list of destinations with existing or potential tourism attraction, to develop a distinct set of tourism products that could be developed by the private sector by leveraging the existing natural and cultural assets in these areas. Activities will follow an integrated destination development approach focused on enhancing the attractiveness of the area for tourists and fostering economic participation of locals while supporting natural habitat preservation and reducing environmental and climate negative externalities associated with increased tourism. Women-led/owned MSMEs, and activities supporting low-carbon, circularity, biodiversity conservation and climate adaptation measures, will be prioritized. Activities under this subcomponent will include (i) investment in last mile infrastructure, (ii) training and advice to support the economic resilience of targeted communities, and (iii) matching g