Public Disclosure Copy The World Bank Implementation Status & Results Report Amazon Sustainable Landscapes Project (P158000) Amazon Sustainable Landscapes Project (P158000) LATIN AMERICA AND CARIBBEAN | Brazil | Environment, Natural Resources & the Blue Economy Global Practice | Global Environment Project | Investment Project Financing | FY 2018 | Seq No: 9 | ARCHIVED on 29-Apr-2022 | ISR50701 | Implementing Agencies: Ministry of Environment - MMA, Fundo Brasileiro de Biodiversidade - FUNBIO, Conservacao Internacional - CI Brazil, Fundacao Getulio Vargas - FGV, Fundação Getulio Vargas Key Dates Key Project Dates Bank Approval Date: 14-Dec-2017 Effectiveness Date: 12-Jun-2018 Planned Mid Term Review Date: 15-Jun-2022 Actual Mid-Term Review Date: Original Closing Date: 31-Dec-2026 Revised Closing Date: 31-Dec-2026 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective (PDO) is to expand the area under legal protection and improve management of Protected Areas, and increase the area under restoration and sustainable management in the Brazilian Amazon. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Component 1: Amazon Protected Areas System:(Cost $34.90 M) Component 2: Integrated Landscape Management:(Cost $25.58 M) Component 3: Policies for Conservation, Sustainable Use and Restoration:(Cost $12.33 M) Component 4: Capacity Building, Cooperation and Project Management:(Cost $6.80 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions This project is part of the Amazon Sustainable Landscape Program, a regional World Bank-led and GEF-financed initiative to protect globally significant biodiversity and implement policies to foster sustainable land use and restoration of native vegetation cover in Brazil, Colombia and Peru. The ASL Brazil project acts in synergy with the other ASL projects and contributes to the achievement of objectives of the regional program. 4/29/2022 Page 1 of 8 Public Disclosure Copy The World Bank Implementation Status & Results Report Amazon Sustainable Landscapes Project (P158000) This ISR is based on a supervision mission carried out in March, 2022, with the participation of the project executing entities and operation units, on a desk review of project documents, and on a draft mid-term evaluation report prepared by an independent consultant to MMA, as well as one prepared by World Bank consultants. Component 1. Amazon Protected Areas System: This component focuses on the expansion and consolidation of the over-60 million ha PA system in the Brazilian Amazon and advances ongoing efforts to secure its long-term financial sustainability by capitalizing the ARPA Transition Fund (FT), an innovative financial mechanism with strong support from public and private donors. The project design contemplated disbursements to capitalize the FT in three separate tranches of US$10 million each. The first US$20 million have been disbursed. The Transition Fund currently supports the consolidation of 119. Protected Areas (PAs) and the coordination, management, monitoring, and communication of ARPA as a whole. Technical studies supported by ARPA are ongoing for the creation of 19 new federal and state-level areas, with an estimated total area of 4.96 million ha. Additionally, three studies have been completed on (i) pressures and threats to PAs; (ii) evaluation of Integrated Management Nuclei (NGIs); and (iii) review of cost and financing models, with a fourth study on socio economic evaluation of PAs ongoing Unfortunately, due to COVID-19 pandemic most field activities have been paralyzed since early 2020. These are now slowly being resumed. An ARPA COVID-19 response strategy to ensure food security for affected families and safety of PA staff and collaborators was prepared in June 2020. Support has been extended to 33 PAs, providing PPE for 293 collaborators, disseminating information, assisting communities access federal COVID-19 aid and providing food security assistance to 210 communities, serving 8,157 people. The two-yearly operational plans for ARPA PAs for 2022/2023 are currently being prepared and launched on a rolling basis, and launch of all new operational plans expected by mid-May 2022. Component 2. Integrated Landscape Management: The cooperation agreements for integrated landscape management in the states of Amazonas, Pará, Rondônia, and Acre are under implementation. In this period the Operational Units have begun the training of new Voluntary Environmental Agents in the State of Amazonas; initiated construction of 9 additional fishing agreements in the State of Amazonas; purchased equipment to support consolidation of community-based tourism in APA do Igarapé São Francisco e APA Lago do Amapá in the State of Acre; finalized 18 additional seedling nurseries and installed 24 identification signs in APA Triunfo do Xingo, in the State of Para; evaluated proposals for elaboration of management plans for APAs of Triunfo do Xingu; FLOTA do Iriri, RESEX Alto Juruá, and APA Tapajós; proposed a monitoring system of fish landing in the ports of Manaus and Santarém; and analyzed proposals for contracting restoration in RESEX Alto Jurua, RESEX Chico Mendes and Flona Bom Futuro. Restoration activities are also happening in the framework of environmental regularization in Acre. Component 3. Policies for Protection and Recovery of Native Vegetation: Activities in support of the environmental regularization process (CAR) continue, including analysis and validation of registrations and preparation of PRADAs. In total, contracts have been signed to analyze 52,706 CARs, with 16,445 underway and related capacity-building activities are planned. A collaboration process was signed with EMATER to elaborate 10,000 PRADAs. Call for proposals for the forest concession preparatory studies have been issued, with public consultations processes conducted virtually due to COVID-19 restrictions. Technical studies related to the forest concessioning process have been launched. Proposals for the inventory of the Floresta Estadual de Maues are under evaluation, while the study on infrastructure and logistics of the same forest is finalized. The study on logistical transport conditions, infrastructure and forest prices in the area of Gleba Castanho is under way. The inventory for Flona Tapirape-Aquiri was finalized, which showed a medium commercial volume, viability for forest concession project and positive potential for NTFPs.. In addition, services of geoprocessing and remote sensing to characterize areas, data analysis from LIDAR and production of technical orientation manuals are under way. Component 4. Capacity Building, Cooperation, and Project Coordination: The project coordination unit is providing support for the project participant agencies, including regular virtual meetings to accompany and monitor project implementation and provide technical support, including on improving monitoring of safeguards, indicators and cofinancing. A new strategy is in place to increase the effectiveness of POAs and ensure more efficient disbursement. The participation of two ASL representatives to the Brazilian Space at the UN Conference on climate change was financed. A project newsletter is being issued regularly. The COVID-19 pandemic has considerably reduced the field activities with all the project's partners, although some field activities have resumed in the last few months. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Substantial Substantial Substantial Macroeconomic Substantial Substantial Substantial Sector Strategies and Policies Moderate Moderate Moderate 4/29/2022 Page 2 of 8 Public Disclosure Copy The World Bank Implementation Status & Results Report Amazon Sustainable Landscapes Project (P158000) Technical Design of Project or Program Substantial Moderate Moderate Institutional Capacity for Implementation and Moderate Substantial Substantial Sustainability Fiduciary Substantial Moderate Moderate Environment and Social Substantial Moderate Moderate Stakeholders Substantial Moderate Moderate Other -- -- -- Overall Substantial Substantial Substantial Results PDO Indicators by Objectives / Outcomes Expand the area under legal protection IN01118284 ►New area supported by the project with status as protected areas (Hectare(Ha), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1,106,187.00 1,215,827.00 3,000,000.00 Date 30-Jun-2017 30-Jun-2021 31-Dec-2021 31-Dec-2026 A total of 1,215,827 hectares of new Protected Areas (PAs) have been incorporated into the project between December 2017 and December 2021. There have not been created new PAs since last mission (in October 2021). However, there are 19 PAs Comments: with creation processes underway with support from ARPA: 5 federal PAs (covering around 320,000 ha) for which the diagnostic and public consultations have been completed and 14 state-level PA (covering around 4.3 million ha) with these processes ongoing. Improve management of Protected Areas IN01118285 ►Area of existing protected areas supported by the project with (i) low, (ii) moderate and (iii) high management effectiveness as per defined criteria (Hectare(Ha), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 60,000,000.00 37,435,051.00 34,145,320.00 60,000,000.00 Date 30-Jun-2017 30-Jun-2021 31-Dec-2021 31-Dec-2026 This is a compounded indicator with an individual baseline for each group of management effectiveness of PAs. The Portal system does not allow adding the entire information as defined in the PAD. The Project baseline and end-of-project targets as set out in the PAD are divided in three groups as follows: (i) low management effectiveness (Baseline: 10 million hectares, End Target: 0 hectares) (ii) moderate management effectiveness (Baseline: 44 million hectares, End Target: 34 million hectares) (iii) high management effectiveness (Baseline: 6 million hectares, End Target: 26 million hectares) Comments: Current progress towards these end project targets as reported by MMA in December 2021 are as follows: (i) Low management effectiveness: 11,462,324 ha corresponding to 9PAs (ii) Moderate management effectiveness: 16,526,301 ha a corresponding to 22 PAs (iii) High management effectiveness: 34,145,3201 ha corresponding to 80 PAs. The consolidated value reported in this table corresponds to the high management group ( as provided by MMA in December 2021: 34,145,320 ha. Between 2020 and end 2021, the pandemic prevented most field activities, which has led to a decline in management effectiveness scores in certain protected areas. 4/29/2022 Page 3 of 8 Public Disclosure Copy The World Bank Implementation Status & Results Report Amazon Sustainable Landscapes Project (P158000) Six protected areas have joined the ARPA program since 2017 (REBIO do Guaporë, PARNA de Pacaás; PARNA do Monte Roraima; PARNA do Acari; REBIO do Manicoré and PE Cristalina and Cristalina II – jointty managed).bringing the number of protected areas to 120 and increasing the total area of the program to 62,133,945 ha (current). Increase the area under restoration IN01118341 ►Area under restoration or reforestation supported by the project (disaggregated by (i) assisted natural regeneration, and (ii) active restoration) according to defined criteria. (Hectare(Ha), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 4,492.28 1,301.00 29,200.00 Date 30-Jun-2017 30-Jun-2021 31-Dec-2021 31-Dec-2026 The baseline and end-of-project target are divided in two categories as follows: (i) assisted natural regeneration (Baseline: 0 hectares, End Target: 23,800 hectares) (ii) active restoration (Baseline: 0 hectares, End Target: 4,200 hectares) Current values as reported in December 2021 are: (i) Assisted natural regeneration: 1,301 ha Comments: (ii) Active restoration: 0 ha. The decline in this indicator is due to loss of some of the previously restored areas to forest fires. Currently, a contract has been issued for an additional 195 ha in Acre, and is in preparation for 102 ha in Resex Chico Mendes; 140 ha Resex Alta Juruá; 80 ha Flona Bom futuro; and 3,120 ha in PRADAs. Increase the area under sustainable management IN01118342 ►Forest area brought under management plans (Hectare(Ha), Corporate) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 1,400,000.00 Date 30-Jun-2017 30-Jun-2021 31-Dec-2021 31-Dec-2026 The forest concession process is underway. The target national forests have been selected and the call for proposals is underway, but no concession agreements have been signed yet. Competitive processes being launched for two public forest concessions covering a total area of 1.14 million ha, comprising 900,000 ha in the Flona Humaitá e Jatuarana (AM) and 240,000 ha in the state forest complex of Rio Comments: Gregório (AC). Additionally, areas totaling more than 800,000 have bidding processes under preparation: Flota Maués (AM), Flota Irirí (PA); and Gleba Castanho (AM). Results are expected in for this indicator. The target and description of this indicator will be reviewed during the MTR. Intermediate Results Indicators by Components Component 1: Amazon Protected Areas System IN01118343 ►Existing protected areas supported by the Transition Fund under improved management (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 65.00 77.00 79.00 114.00 Date 30-Jun-2017 30-Jun-2021 31-Dec-2021 31-Dec-2026 Comments: The indicator is measured as all PAs receiving funds from the FT and under “improved management”, as defined as the number of PAs passing from “consolidation” to “maintenance” as defined by the FAUC for 4/29/2022 Page 4 of 8 Public Disclosure Copy The World Bank Implementation Status & Results Report Amazon Sustainable Landscapes Project (P158000) PA monitoring. Six protected areas have joined the ARPA program since 2017 (REBIO do Guaporë, PARNA de Pacaás; PARNA do Monte Roraima; PARNA do Acari; REBIO do Manicoré and PE Cristalina and Cristalina II – jointly managed) bring the number of protected areas disbursing resources from the FT to 120. Of these 79 have been fully consolidated and are moving to maintenance. The description of this indicator will be reviewed during the MTR. IN01118347 ►Capitalization of the Protected Areas trust fund (Transition Fund) (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 134,000,000.00 238,100,000.00 230,000,000.00 215,000,000.00 Date 30-Jun-2017 30-Jun-2021 31-Dec-2021 31-Dec-2026 The actual value of the fund is USD 230 million corresponding to donations and earned income, and not taking into consideration expenditures realized. The baseline funds refer to the capital secured during previous phases of the ARPA program. Comments: IN01118350 ►Area of existing protected areas not supported by the Transition Fund under improved management, supported by the project (Hectare(Ha), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 2,373,628.00 Date 30-Jun-2021 30-Jun-2021 31-Dec-2021 31-Dec-2026 This is a new AF indicator. The AF was approved by the Board on October 5, 2021. The Financial Agreement was s Comments: 2021. Effectiveness is anticipated in July 2022 Component 2: Integrated Landscape Management IN01118344 ►Area of rural properties adopting sustainable land management practices supported by the project according to defined criteria (Hectare(Ha), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 77,500.00 64,900.00 1,200,000.00 Date 30-Jun-2017 30-Jun-2021 31-Dec-2021 31-Dec-2026 649 properties (an estimated 64,900 ha) have been enrolled in the Environmental Regularization Program (Programa de Regularização Ambiental, PRA) and are developing sustainable land management practices. Currently, preparation is underway for an additional 10,000 PRADAs in 14 munipalities of Comments: Rondonia (approx. 600,000 ha). Note: The previously reported results have been adjusted, correcting for different interpretations of PRA stage to be reported for this indicator. The description for this indicator will be reviewed during the MTR. IN01118348 ►Sustainable use protected areas under sustainable land management practices supported by the project according to defined criteria (Hectare(Ha), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 963,175.75 968,519.00 5,000,000.00 Date 30-Jun-2017 30-Jun-2021 31-Dec-2021 31-Dec-2026 Amazonas State: 16 fishing accords have been established, corresponding to 597,251.29 ha, involving 169 communities and 3331 families. Comments: Acre State: Three forest and four community management plans have been prepared, corresponding to 306,876.83 ha. 4/29/2022 Page 5 of 8 Public Disclosure Copy The World Bank Implementation Status & Results Report Amazon Sustainable Landscapes Project (P158000) Preparation of management plans is underway in Amazonas state for APA Triunfo do Xingo (1,679,281 ha); in Pará for Flota do Iriri (440,493 ha); and in Acre for Reserva Extravista Alto Juruá (2,030,581 ha). Contracts have been signed for management plans and turtle nesting areas in Abunã and Juruá in Acre, and for fishery agreements in Amazonas. IN01118351 ►Land area where sustainable land mgt. practices were adopted as a result of proj (Hectare(Ha), Corporate) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1,045,168.03 1,034,720.00 6,229,200.00 Date 30-Jun-2017 30-Jun-2021 31-Dec-2021 31-Dec-2026 This Corporate outcome indicator is calculated as the sum of Key Performance Indicator 3 (reforestation) and Intermediate Results Indicator 2.1 (area of rural properties adopting sustainable land management Comments: practices) and Intermediate Results Indicator 2.2 (sustainable use protected areas under sustainable land management practices). IN01118352 ►Area under improved integrated landscape management (excluding protected areas) (Hectare(Ha), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 11,900,000.00 Date 30-Jun-2021 30-Jun-2021 31-Dec-2021 31-Dec-2026 This is a new AF indicator. The AF was approved by the Board on October 5, 2021. The Financial Comments: Agreement was signed December 2021. Effectiveness is anticipated by July 2022. Component 3: Policies for Conservation, Sustainable Use and Restoration IN01118345 ►Rural properties adopting land use planning tools for sustainable land management (Number (Thousand), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 20.33 4.59 27.00 Date 30-Jun-2017 30-Jun-2021 31-Dec-2021 31-Dec-2026 Contracts are in place to analyse 52,706 rural properties registered in the Rural Environmental Registry (Cadastro Rural Ambiental, CAR), with 16,445 completing at least the first stage of analysis (14,445 in Comments: Amazonas; 1,001 in Pará; 1,000 in Rondonia). The target and description for reporting on this indicator will be reviewed during MTR. IN01118349 ►Incentive mechanisms for reducing forest loss and increasing restoration improved (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 3.00 5.00 14.00 Date 30-Jun-2017 30-Jun-2021 31-Dec-2021 31-Dec-2026 Development of incentive mechanisms launched at state level, includes fishery agreements Acre’s socio- biodiversity law, and RESEX management agreements. The federal government is preparing legislation for additional mechanisms such as a national payment for environmental services law and the Comments: environmental fine conversion law. The description for reporting on this indicator will be reviewed during MTR. Component 4: Capacity Building, Cooperation and Project Management IN01118346 ►Local people consulted on project activities (disaggregated by gender) (Number, Custom) 4/29/2022 Page 6 of 8 Public Disclosure Copy The World Bank Implementation Status & Results Report Amazon Sustainable Landscapes Project (P158000) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 3,950.00 4,191.00 7,000.00 Date 30-Jun-2017 30-Jun-2021 31-Dec-2021 31-Dec-2026 Project activities have included consultations with 4,191 people, of which 2,841 men and 1,350 women, including those involved in preparation of fisheries accords. Additional people have been consulted as part Comments: of PA management council meetings. This indicator will be reviewed during MTR. Performance-Based Conditions Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P158000 TF-A6056 Effective USD 30.33 30.33 0.00 5.94 24.39 20% P158000 TF-A6057 Effective USD 30.00 30.00 0.00 20.00 10.00 67% Not P158000 TF-B6898 USD 19.28 19.28 0.00 0.00 19.28 0% Effective Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P158000 TF-A6056 Effective 14-Dec-2017 19-Dec-2017 12-Jun-2018 30-Apr-2024 30-Apr-2024 P158000 TF-A6057 Effective 14-Dec-2017 19-Dec-2017 12-Jun-2018 30-Apr-2024 30-Apr-2024 Not P158000 TF-B6898 20-Sep-2021 -- -- 31-Dec-2026 31-Dec-2026 Effective Cumulative Disbursements 4/29/2022 Page 7 of 8 Public Disclosure Copy The World Bank Implementation Status & Results Report Amazon Sustainable Landscapes Project (P158000) Restructuring History There has been no restructuring to date. Related Project(s) P171257-Brazil Amazon Sustainable Landscapes Project Phase 2 4/29/2022 Page 8 of 8