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Midterm Review (MTR) of the UNDP-supported GEF-financed project Technology Transfer for Climate Resilient Flood Management in Vrbas River Basin
Commissioning Unit: Bosnia and Hercegovina
Evaluation Plan: 2015-2020
Evaluation Type: Project
Completion Date: 02/2019
Unit Responsible for providing Management Response: Bosnia and Hercegovina
Documents Related to overall Management Response:  
1. Recommendation:

Repeating exposure through on-the-job training is necessary to ensure long term sustainability of the new technologies.

Management Response: [Added: 2019/03/06]

The recommendation is accepted. UNDP, together with beneficiaries of the project: ministries in charge of water management, hydro-meteorological institutes and water agencies has already introduced follow up trainings in the hydrological and hydraulic modelling, torrents modelling and water information system.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Implement of on-the-job trainings
[Added: 2019/03/06] [Last Updated: 2019/10/08]
UNDP Project team 2019/10 Completed Set of four workshops have been held for hydro-meteorological institutes and water agencies, which focused on modelling and flood forecasting. Training on water information system has been held for ministries History
2. Recommendation:

More emphasis, capacity building and knowledge transfer regarding "making room for water" and/or "living with floods" concepts to beneficiaries would be highly beneficial in order to enable these beneficiaries to further develop means for holistic flood management in their jurisdictions.

Management Response: [Added: 2019/03/06]

The Project management is aware of and fully supports this approach vs. obsolete stand which exists in water agencies that only concrete dykes provide adequate flood protection.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Carry out wide stakeholder discussion and consultations with existing partners on adopting "making room for water" and/or "living with floods" concepts, ensure sharing of the good practices and lessons learnt from EU/ RBEC countries and ensure efficient knowledge transfer.
[Added: 2019/03/06] [Last Updated: 2019/10/08]
Project Management, ministries in charge of water management. 2020/04 Initiated Advocacy for the "making room for water" and/or "living with floods" concepts is constantly on-going and is recognized under non-structural measures included in draft project proposal. However, further consultations is required on defining concrete actions. History
Ensure emphasis, advocacy, capacity building for "making room for water" and/or "living with floods" concepts are continued within new project proposal to be submitted to GCF.
[Added: 2019/03/06] [Last Updated: 2020/01/03]
UNDP, Project Management, GCF focal point 2019/12 Completed The Funding Proposal for the new project "Scaling up climate resilient flood risk management in Bosnia and Herzegovina" designed and approved by GCF, pending approval of the full project proposal in June 2020. History
3. Recommendation:

The government of BiH as well as entities and municipalities will need to find ways and conduct the necessary legal adjustments to collect and/or allocate the necessary funds to ensure long term sustainability of the flood protection, adaptation and warning interventions. It is expected that capital intensive maintenance and replacement works will become necessary in the future that will need respective financing. Financing will need to cover both capital costs and staffing costs. The project is to develop a sustainability strategy with as exact as possible financial projections in cooperation with the respective stakeholders.

Management Response: [Added: 2019/03/06]

Agree. UNDP, together with relevant ministries, will initiate development of the sustainability strategy, which will identify needs and potential financing necessary for sustainable flood risk management.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Start analysis on existing financial flows and needs in relation to flood protection and forecasting and develop sustainability strategy which will include recommendations on financial flows and projections.
[Added: 2019/03/06] [Last Updated: 2019/10/08]
Project management, ministries in charge of water management, ministries of finance. 2020/02 Overdue-Initiated Analysis on existing financial flows and needs has been completed, development of the strategy is on-going. History
4. Recommendation:

Guidelines for potential upscaling including lessons learnt should be produced. Upscaling of project methodologies and results should be done through concrete project proposals covering other flood prone river basins in Bosnia and Herzegovina.

Management Response: [Added: 2019/03/06]

The recommendation is accepted. UNDP BiH and Ministry of Spatial Planning, Civil Engineering and Ecology (UNFCCC and GCF focal point) agree to this recommendation and thus have already started programming for the upscaling of the project. Preparation of the new project proposal has already started to cover the entire country. It is intended to submit the project to Green Climate Fund. The new GCF project will scale up adaptation solutions and technologies developed and for the first time used in B&H within the Vrbas project, in particular: flood risk monitoring and forecasting, last mile EWS, structural and non-structural community-based flood protection measures, flood plain zoning, etc.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Prepare a new project proposal (project idea, concept, note and full project proposal)
[Added: 2019/03/06] [Last Updated: 2019/10/08]
UNDP, GCF focal point 2019/10 Completed Concept note and pre-feasibility study for the new project proposal “Scaling up climate resilient flood risk management in BiH” has been completed and accepted by GCF. History
Finalization of pre-feasibility and feasibility study for the new project.
[Added: 2019/03/06] [Last Updated: 2020/01/03]
UNDP, GCF focal point 2019/12 Completed The funding proposal for the new project Scaling up climate resilient flood risk management in Bosnia and Herzegovina identify, develop and implement other risk for financing and transfer mechanisms products and tools. Under the Vrbas project, a feasibility study for a flood insurance scheme for Vrbas basin explored the potential of developing property or infrastructure investment insurance products that can provide strong flood exposure signals and steer the new infrastructure, settlement development and expansion away from high risk zones. The feasibility study identified the type of scheme that would be most appropriate for BiH and considered ex-ante, ex-post, index-based, and indemnity-based schemes, with various configurations of government role. The feasibility study included a review of data availability for the development of the identified preferred scheme. History
5. Recommendation:

Explore implementation of agro-forestry measures with direct involvement of beneficiaries e.g. project to provide seedlings and municipality or farmers to provide labor for planting.

Management Response: [Added: 2019/03/06]

Accepted. Due to high costs of identified agroforestry measures, the project will explore options with direct involvement of beneficiaries, which will be identified by municipalities. This is a completely new approach in the country and will take additional efforts.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Implement agro-forestry measures.
[Added: 2019/03/06] [Last Updated: 2019/10/08]
Project Management, municipalities. 2020/04 Initiated The most efficient way of implementation of agro-forestry measures in line with project budgetary framework and in combination with other non-structural measures, has been identified with technical and financial assistance of municipalities: forest stripes will be planted within municipal owned agricultural area with most intensive production, which should provide flood risk reduction for app 1.3 ha of agricultural land. History
Implement agro-forestry measures Ensure integration of agroforestry approach and measures in the new project proposal.
[Added: 2019/03/06] [Last Updated: 2019/10/08]
UNDP, Project Management, GCF Focal point 2020/03 Overdue-Initiated Agro-forestry measures have been included in the new project proposal “Scaling up climate resilient flood risk management in Bosnia and Herzegovina” History
6. Recommendation:

The project should support development of by-laws that will regulate the development of the flood risk management plan and continue with the development of the Vrbas river basin flood risk management plan as a pilot for the rest of BiH.

Management Response: [Added: 2019/03/06]

Accepted. Project management, together with ministries in charge of water management has developed by-laws regulating transposing of EU flood directive and content of the flood risk management plan (FRMP), which have been adopted by the government. FRMP for Vrbas river basin will also be developed.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Develop Floods Risk Management Plan for Vrbas River Basin.
[Added: 2019/03/07] [Last Updated: 2019/08/09]
Project management, ministries in charge of water management. 2019/07 Completed Floods Risk Management Plan was completed in May 2019. Full document is available here: http://www.voders.org/dokumentacija/Radna%20verzija%20Plana%20upravljanja%20rizikom%20od%20poplava%20za%20sliv%20rijeke%20Vrbas%20Republike%20Srpske.pdf History
Ensure the same methodology is adopted for the rest of the country.
[Added: 2019/03/07] [Last Updated: 2019/10/08]
Project management, ministries in charge of water management. 2019/10 Completed Flood Risk Management Plan has been developed for Vrbas River Basin. Development of the Flood Risk Management Plan for the rest of the country, using the same methodology, will be financed by IPA 2016. History
7. Recommendation:

Insurance models with applicable tariffs to be developed and discussed with stakeholders. Simulation of the model can be initiated in pilot municipalities. In order to ensure necessary insurance take-up, the ‘solidarity’ approach for financing should be explored.

Management Response: [Added: 2019/03/07]

Accepted. Simulation of the model has been initiated in three pilot municipalities. Further work on establishment of the insurance model for the whole BiH is necessary.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Finalize simulation of the model in pilot municipalities.
[Added: 2019/03/07] [Last Updated: 2020/01/03]
UNDP 2019/12 Completed Pre-feasibility studies conducted within design of the Funding Proposal. The following feasibility studies will be undertaken at the activity level, pending approval of the proposal: • Undertake a feasibility study into the introduction of micro-insurance for agricultural producers, entrepreneurs and small and medium-sized enterprises in different industries. • Establish a connection between micro-insurance and microfinance. In order for the micro-insurance program to be implemented in practice, changes to the current regulations in the field of insurance are necessary. The micro-insurance concept is mostly unknown in B & H, while the microfinance sector, however, is quite well-developed and regulated, which is often prerequisite for the successful launch of microinsurance in a new market. • Feasibility study for creating a regional disaster risk insurance micro-insurance program to increase the degree of diversification of risk. • Feasibility of issuing catastrophe bonds to transfer disaster risk to the capital market. In addition to insurance and reinsurance companies and other business entities, these bonds may also be broadcast by governments of countries in order to mitigate fiscal pressures after the realization of catastrophic adverse events. History
Continue work on identification of the insurance flood model: a) provide technical advice on insurance and reinsurance capacities in B&H, assess the affordability, accessibility; review current coverage of property insurance, agro-insurance, etc. and advise on potential developments and further steps; b) develop flood/natural disasters insurance model and insurance scheme for BiH, which is agreed upon by relevant authorities; c) provide advice on next steps in further development of effective and sustainable flood/natural disasters insurance market in BiH.
[Added: 2019/03/07] [Last Updated: 2019/10/08]
UNDP 2020/12 Initiated In order to identify adequate flood insurance model willingness to pay survey has been implemented in whole Bosnia and Herzegovina. Advice on insurance and reinsurance capacities in the country have been provided and the affordability assessed. Flood/natural disasters insurance model for households has been developed. Insurance product has been developed and premiums are still to be finalized together with the recommendation for the insurance pool establishment and to be presented to the authorities. History

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