The World Bank Implementation Status & Results Report Forests for Prosperity Project (P170798) Forests for Prosperity Project (P170798) SOUTH ASIA | Nepal | Environment, Natural Resources & the Blue Economy Global Practice | Recipient Executed Activities | Investment Project Financing | FY 2021 | Seq No: 3 | ARCHIVED on 21-Dec-2021 | ISR49395 | Implementing Agencies: Nepal, Ministry of Forests and Environment Key Dates Key Project Dates Bank Approval Date: 08-Jul-2020 Effectiveness Date: 16-Jul-2021 Planned Mid Term Review Date: 27-Sep-2023 Actual Mid-Term Review Date: Original Closing Date: 30-Sep-2025 Revised Closing Date: 30-Sep-2025 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective (PDO) is to improve sustainable forest management; increase benefits from forests and contribute to net Greenhouse Gas Emission (GHG) reductions in selected municipalities in Province 2 and Province 5 in Nepal. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Policy & capacity building support for new government structures and processes for sustainable forest management:(Cost $2.90 M) Community-based sustainable forest management and smallholder forest plantations:(Cost $10.76 M) Forest enterprise improvement and development:(Cost $7.35 M) Project management, monitoring and learning:(Cost $2.99 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions This is an interim ISR, which will be updated following a planned mission in February 2022. The project was approved by the Board of the WBG on July 8, 2020. Financing agreements were signed on March 19, 2021 and the project was declared effective on July 16, 2021. The project has been experiencing significant delays early on which affected its implementation and disbursement of funds to date. The project is in the process of meeting the disbursement conditions, and is preparing the 1st Withdrawal Application. Partial institutional arrangements have been completed and the rest are being pursued. The delays jeopardize the full achieving the Project's Development Objective in time. 12/22/2021 Page 1 of 7 The World Bank Implementation Status & Results Report Forests for Prosperity Project (P170798) 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 Technical Design of Project or Program Substantial Substantial Substantial Institutional Capacity for Implementation and Substantial Substantial Substantial Sustainability Fiduciary High High High Environment and Social Substantial Substantial Substantial Stakeholders Moderate Moderate Moderate Other -- Substantial Substantial Overall Substantial Substantial Substantial Results PDO Indicators by Objectives / Outcomes to improve SFM; increase benefits from forests and contribute to net GHG emssion reductions IN01074621 ►People in targeted forest and adjacent communities with increased monetary or non-monetary benefits from forests (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 110,000.00 Date 13-May-2020 08-Oct-2020 08-Oct-2020 13-May-2026 This indicator includes all paid work attributable to the sustainable forest management including Comments: plantations and in forest-based enterprises. Data will be dis-aggregated by gender and disadvantaged group. IN01074622 ►Net GHG emissions reduced (Metric ton, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 17,740,000.00 Date 13-May-2020 08-Oct-2020 08-Oct-2020 13-May-2026 12/22/2021 Page 2 of 7 The World Bank Implementation Status & Results Report Forests for Prosperity Project (P170798) This includes sequestration through improved forest condition and tree planting on non-forest lands and Comments: emissions reduction from reduced forest degradation IN01074623 ►Share of project beneficiaries with rating “Satisfied’ or above on project interventions (livelihoods, forest management, other) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 80.00 Date 13-May-2020 08-Oct-2020 08-Oct-2020 13-May-2026 This indicator measures the level of satisfaction of targeted forest-dependent people on project Comments: interventions (livelihoods, forest management, other). Data will be dis-aggregated by gender and disadvantaged group. IN01074624 ►Forest area brought under management plans (Hectare(Ha), Corporate) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 15,900.00 Date 13-May-2020 08-Oct-2020 08-Oct-2020 13-May-2026 Intermediate Results Indicators by Components 1 - Policy and Capacity Building for Federal Structures & Processes IN01074625 ►Policy and regulatory reforms supported at federal, state and municipal levels supporting SFM (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 50.00 Date 13-May-2020 08-Oct-2020 08-Oct-2020 13-May-2026 This indicator applies a wide definition to cover all policies, acts, regulations, directives, guidelines, protocols, and standards relevant to SFM and FBEs coming from all levels of government (Federal, Comments: Provincial, Local). It tracks not just new policies/regulations but also existing policies/regulations that have been revised to promote sustainable and productive forest management and FBEs. Disaggregated by government level. IN01074629 ►Local governments with approved land-use plans and/or strategic forest sector plans (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 50.00 Date 13-May-2020 08-Oct-2020 08-Oct-2020 13-May-2026 This indicator records the number of municipalities/rural municipalities that have prepared land-use plans Comments: and longer-term strategic plans for the forest sector IN01074633 ►Awareness of the federal forest sector structure (Number, Custom) 12/22/2021 Page 3 of 7 The World Bank Implementation Status & Results Report Forests for Prosperity Project (P170798) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 0.00 Date 13-May-2020 08-Oct-2020 08-Oct-2020 13-May-2026 This indicator assesses the extent to which stakeholders in the forest sector are aware and implementing Comments: their new roles and responsibilities under the federal system – the extent to which sector reforms have taken place and been institutionalized. The indicator is measured as a score. IN01074636 ►Quality of services provided by local government to communities and forest-based enterprises (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 80.00 Date 13-May-2020 08-Oct-2020 08-Oct-2020 13-May-2026 This indicator will measure the client satisfaction of the services provided to communities and forest-based Comments: enterprises . 2 - Community-based sustainable forest management and forest plantations IN01074626 ►Forest area under CBFM (Hectare(Ha), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 530,000.00 530,000.00 530,000.00 545,000.00 Date 13-May-2020 08-Oct-2020 08-Oct-2020 13-May-2026 The total area for which new sustainable forest management plans have been prepared and are being implemented according to the agreed timber harvesting prescriptions. It includes plans for all types of Comments: CBFM including CF, CFM, and LHF and includes newly established and existing CBFM groups for which revised plans have been prepared. IN01074630 ►Poor households with land allocation inside CBFM areas (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 650.00 Date 13-May-2020 08-Oct-2020 08-Oct-2020 13-May-2026 This indicator records the number of poor or disadvantaged households for which specific provision has Comments: been made in CFUG operational plans. Data will be dis-aggregated by disadvantaged group and female/male household. IN01074634 ►Private smallholder plantations area (Hectare(Ha), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 5,000.00 Date 13-May-2020 08-Oct-2020 08-Oct-2020 13-May-2026 12/22/2021 Page 4 of 7 The World Bank Implementation Status & Results Report Forests for Prosperity Project (P170798) This indicator records the area of private (non-forest) land that has been supported by the project for tree Comments: planting and/or agroforestry (normally underutilized or abandoned agricultural land or land owned by absentee landlords) IN01074637 ►Area of public land managed by disadvantaged/poor groups for plantation/agroforestry (Hectare(Ha), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 1,350.00 Date 13-May-2020 08-Oct-2020 08-Oct-2020 13-May-2026 This indicator records the area of public land (under Local Government jurisdiction and often located along river banks and in flood-prone areas in the Terai) that has been assigned to PLMGs (poor and otherwise Comments: disadvantaged farmers) for tree planting and agroforestry activities. Data will be dis-aggregated by disadvantaged group. 3 - Forest enterprise improvement and development IN01074628 ►Timber and non-timber forest enterprises registered (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 0.00 Date 13-May-2020 08-Oct-2020 08-Oct-2020 13-May-2026 This indicator monitors the registration of all types of small, medium and large forest-based enterprises Comments: with women-owned and/or managed enterprises tagged. Data will be dis-aggregated by type and ownership. IN01074632 ►Roundwood supplied from CBFM areas (Cubic Meter(m3), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 0.00 Date 13-May-2020 08-Oct-2020 08-Oct-2020 13-May-2026 This indicator measures the volume of timber produced (from several forest areas within a single Comments: landscape/municipality) as a result of implementation of revised sustainable forest management plans with total production being geared towards ensuring a predictable, sustainable timber supply. IN01074635 ►Increase in number of women with skilled jobs in the forestry value chain (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 50.00 Date 13-May-2020 08-Oct-2020 08-Oct-2020 13-May-2026 This indicator records the extent to which women are participating in and benefiting from enhanced Comments: productive work in the forest sector. The aim is to find the percent of women involved as skilled workers in different types of enterprise and parts of the value chain for forest products. IN01074638 ►Finance provided for establishing or improving FBEs (Amount(USD), Custom) 12/22/2021 Page 5 of 7 The World Bank Implementation Status & Results Report Forests for Prosperity Project (P170798) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 6,000,000.00 Date 13-May-2020 08-Oct-2020 08-Oct-2020 13-May-2026 This indicator records the type of enterprises and the size of loans being provided from the project and the extent to which women are also benefiting. Data will be dis-aggregated by loan type, loan size and Comments: enterprise ownership. ADBL will share the performance of the forestry SME portfolio supported by the project in a separate report on an annual basis. Project management, monitoring and learning IN01074627 ►Annual participation of stakeholders in project governance (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 5,000.00 Date 13-May-2020 08-Oct-2020 08-Oct-2020 13-May-2026 This indicator records the number of stakeholders who have participated in various project governance related meetings/workshops including project steering committees, and coordination and sector planning Comments: meetings at Local, Provincial and Federal levels. Data will be dis-aggregated by gender and disadvantaged group. The figure is expected to remain constant throughout the project. IN01074631 ►Documents, including studies, stories and surveys produced and shared with open access. (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 30.00 Date 13-May-2020 08-Oct-2020 08-Oct-2020 13-May-2026 This indicator tracks publications and social media/website usage and the subsequent incorporation of new ideas and practices into regular planning, monitoring and implementation activities of forest sector Comments: institutions. It includes documentation and dissemination of good practices such as gender specific activities and safeguard mechanisms. Performance-Based Conditions Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P170798 TF-B2488 Effective USD 17.90 17.90 0.00 0.00 17.90 0%% P170798 TF-B2796 Effective USD 6.10 6.10 0.00 0.00 6.10 0%% Key Dates (by loan) 12/22/2021 Page 6 of 7 The World Bank Implementation Status & Results Report Forests for Prosperity Project (P170798) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P170798 TF-B2488 Effective 08-Jul-2020 19-Mar-2021 16-Jul-2021 30-Sep-2025 30-Sep-2025 P170798 TF-B2796 Effective 08-Jul-2020 19-Mar-2021 16-Jul-2021 30-Sep-2025 30-Sep-2025 Cumulative Disbursements PBC Disbursement Achievement Disbursed amount in Disbursement % PBC ID PBC Type Description Coc PBC Amount Status Coc for PBC Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 12/22/2021 Page 7 of 7