Document o f The World Bank ReportNo: 37389-LR PROJECTAPPRAISAL DOCUMENT ONA PROPOSEDGRANT FROMTHE TRUST FUNDFOR LIBERIA INTHE AMOUNT OFUS$2.0MILLION TO THE GOVERNMENT OF LIBERIA FOR A DEVELOPMENT FORESTRY SECTORMANAGEMENT PROJECT September6,2006 Environmentally and Socially SustainableDevelopment 4 (AFTS4) Country Department 10 Africa Region This document has a restricted distribution and may be usedby recipients only inthe performance o f their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective June 30,2006) Currency Unit = Liberian Dollars 59.76 LRD = US$l.OO FISCALYEAR January 1 - December31 ABBREVIATIONSAND ACRONYMS ACPA Accra Comprehensive Peace Agreement CDD Community Driven-Development C I Conservation International CIFOR Center for InternationalForestry Research CGIAR Consultative Group on International Agricultural Research FDA ForestryDevelopmentAgency IATA InternationalAir Transport Association LACE Liberian Agency for Community Empowerment LFI Liberia Forestry Initiative LICUS Low Income Countries under Stress NTFP Non-Timber Forest Products NTGL NationalTransitional Government of Liberia RFTF Results-Focused Transitional Framework TFLIB TrustFundfor Liberia UNDP UnitedNations Development Program UNSC UnitedNationSecurity Council IUCN InternationalUnion for the Conservation ofNature and Natural Resources WWF World Wildlife Fund Vice President: Gobind T. Nankani Country Director: Mats Karlsson Sector Manager: M a r y Barton-Dock Task Team Leader: Paola Agostini Table of Contents Strategic Context and Rationale...................................................................................................... 1 1 Rationale for Bank Involvement................................................................................................. Country and Sector Issues............................................................................................................ 2 Higher level objectives to which the Project Contributes........................................................... 2 Project Descnption.......................................................................................................................... . . Project development objectives and key indicators .................................................................... 3 3 Implementation........................................................................................................................... 3 4 Appraisal Summary and Implementation....................................................................................... Project components ..................................................................................................................... 9 Monitoring and evaluation o f outputs/outcomes/results............................................................. 9 Social......................................................................................................................................... 10 Critical risks and possible controversial aspects....................................................................... Sustainability............................................................................................................................. . . 11 11 Annex 1: Results Framework and Monitoring.............................................................................. 13 Annex 2: Project Costs.................................................................................................................. 15 16 Annex 4: Procurement Arrangements ........................................................................................... Annex 3: Risk Analysis ................................................................................................................ 17 Annex 5: FinancialManagement and DisbursementArrangements ............................................ 20 29 Annex 7: Liberia Forest InitiativeWork PlanJanuary-December 2006 ...................................... Annex 6: Co-Financing................................................................................................................. 30 Annex 8: Maps.............................................................................................................................. 39 LIBERIA DEVELOPMENT FORESTRY SECTOR MANAGEMENTPROJECT PROJECT DOCUMENT AFRICA AFTS4 Date: September 6, 2006 Team Leader: Paola Agostini Country Director: Mats Karlsson Sectors: Forestry (100%); Sector ManagedDirector: Mary Barton-Dock Themes: Other Environment andNatural Project ID: PO91984 Resources Management(P) Lending Instrument: Technical Assistance [ ] Loan [ ] Credit [XI Grant [ ] Guarantee [ 3 Other: For Loans/Credits/Others: - Total Bank financing (US$m.): US$2.0 Million Proposed terms: - Borrower: Responsible Agency: Ministry o f Finance UNDP 1000 Monrovia 10 UnitedNations Drive Monrovia Monrovia Liberia Liberia Project implementationperiod: September 2006 to September 2009 Expected effectiveness date: September 30,2006 Expected closing date: September 30,2009 DeveloDment Obiective 1. The objective o f the component and o f the World Bank medium term engagement in this sector i s to assist Liberia to harness the potential o f forest to reduce poverty in a sustainable manner, integrate forests effectively into sustainable economic development, protect the vital local and global environmental services and values o f forests, based on an integrated package o f key reforms inthe sector, that will improve the performance o f national institutions to make the forest sector vibrant and sustainable. Inclose coordination with the LFI, the Bank will assist the Government to implement the forestry program. Project description: Priority actions that needto be undertaken inorder to transform the forestry sector into a vibrant and sustainable engine o f growth inthe country require the following six program components/activities Component1:Institution-building inthe public sector: consolidation o f a number o fimportant institutional reforms inthe public sector. Component 2: Sustainable management o f community forests: Promotion o f the conservation and sustainable use o fnatural forests. Component 3: Sustainable agro-forestry systems: focus on management of natural forests, but also on management o fplantations and agro-forestry systems Component4: Sustainable small andmediumprivate sector development: Creationo fa modem andcompetitive private sector that will contribute to sustainable development o fthe forest sector inLiberiaas one ofthe drivingforces ofgrowth ofthe economy. Component5: Competitive Forest Development Facility: Financing on a cost-sharing basis, o f a program o f grants to private sector, non-governmental organizations, and communities for the creation o f micro-enterprises for reforestation and sustainable forestry management sub-projects. Component6: Public Communication Program for Forestry Sector: Development and implementationo f a Public Communication Program on the forestry reform, aimed at building public support to transparent and equitable management o f forestry resources, fostering broad- based debate on forest management, and support community oversight andbottom-up pressure for change. PROJECT APPRAISAL DOCUMENT LIBERIA SURPLUS GRANT DEVELOPMENT FORESTRYSECTORMANAGEMENT PROJECT (P091984) StrategicContext and Rationale Country and Sector Issues 2. Liberia has undergone profound changes inthe past two years. A country long known for conuption and exploitation of the population by a minority descended into civil and political strife inthe 1 9 8 0 in ~ ~a civil and regional war known for its brutality against civilians. The Accra Comprehensive Peace Agreement (ACPA) o f August 2003, UN Security Council Resolutions 1509 and 1521, the collaborative work between the transitional government and donors that followed, leading to the legislative and presidential elections o f October-November 2005 that were generally considered peacefil, free and fair have created a spirit o f hope after these decades o f conflict. An elected government headed by Ellen Johnson Sirleaf assumed office on January 16, 2006. An ambitious 165 day reform program has been announced, which includes moving forward on long delayed economic governance reforms. This provides a unique opportunity to work jointly with a reformist government in critical reform areas, two o f which are covered through this document. 3. The World Bank has been actively involved from the outset of the process o f peace, reconciliation and reconstruction, beginning with the needs assessment in December 2003 and continuing through the evolution o f a powerfil Results-Focused Transitional Framework (RFTF) that was adopted inJanuary 2004 by the National Transitional Government o f Liberia (NTGL) as its strategic plan to guide the transition period, to a successful International Reconstruction Conference inNew York on 5-6 February 2004. The Bank's re-engagement activities form part o f a closely coordinated multi-partner effort inhumanitarian, political, security and development reform to assure that this peace becomes permanent and that Liberia can be placed firmly on a path to human and economic development. 4. On March 9, 2004, the Bank's Executive Directors discussed a reengagement strategy for Liberia'. Based on the progress toward transition in Liberia, this strategy outlined a plan for Bank re-engagement within the RFTF. On August 25,2004 they approved the establishment o f a Trust Fundfor Liberia (TFLIB). Subsequently, the Board o f Governors o f the Bank approved on October 13, 2004 the transfer from surplus to the TFLIB o f US$25,000,000 as a grant to be administered by the International Development Association. The three priority programs being supported by TFLIB are infrastructure rehabilitation, community driven development, and economic management and development. The Economic Management and Development Program focuses on both financial management and forestry and an amount o f US$4.50 million was set aside for this program. The new Minister o f Finance has requested a review o f the financial management component o f the program. To accommodate this request, and in light o f the economic management crisis facing the forestry sector, it has been decided to process the 1IDA/R2004-0046 titled: Liberia:CountryRe-EngagementNote andAdditionalActivities 1 financial management and forestry components o f the economic management and development program separately. Consequently, this Project Appraisal Document focuses only on the forestry component of the program to which the amount o fUS$2.00 million has been allocated. 5. InOctober 2005, legislative andpresidential elections considered by observers to be free, fair and transparent led to the inauguration on January 6, 2006 o f Ellen Johnson-Sirleaf. The new administration is assured the continued support of the UN and other partners in maintaining security, reforming the armed forces and reinserting ex-combatants into civilian life, and in reinstalling rehgees and the internally displaced. However, the challenges are immense. Regional conflict, still active in CGte d'Ivoire, continues to threaten to re-erupt in Liberia or Sierra Leone, its birthplace, as well as in neighboring Guinea; security expenses remain immense. Decades o f conflict, conflict-driven emigration and a heritage o f corruption have drained the pool o f basic domestic competence and integrity required to recruit the new government's economic management at all levels. The opposition-led legislature covers a broad range o f interests including ex-warlords, and its contribution to development and economic management i s not yet known. Three o f the country's major sources o f export revenues and fiscal receipts (diamonds, gold and forest products) are under international sanction by the UN Security Council due to their role infinancing conflict. Rationalefor Bank Involvement 6. The case for Bank re-engagement inLiberia at this time is compelling. The infrastructure and databases, physical and intellectual, for public economic management have been destroyed through decades o f conflict and public malfeasance. The August 2003 peace agreement and the work o f the donor community in the months that followed have set Liberia on a promising path to peace and recovery. The path is rocky; however, there have already been stumbles and a significant risk o f a damaging fall. To stay the course, Liberia's new government needs to be able to rely on an adequate response from international donors both in terms o f expertise and finance. In addition, peace provides a window o f opportunity for the Bank to rebuild its knowledge base and understanding o f national partner institutions, both o f which are essential to increase readiness for a Bank lending program when that becomes possible. 7. The World Bank has had extensive involvement in the rehabilitation o f the economic management o f post-conflict countries and collapsed states worldwide. This experience ranges from the establishment o f the basic transparency and governance that permits the mistrustful parties to the peace process as well as the population at large to gain confidence in the institutions emerging from the transition, to the development o f regulations, codes and laws as well as the tools and other means o f implementing and monitoring the reforms. The transition government seeks to install the basic economic and regulatory infrastructure upon which the post-election government can build its operations. TFLIB will enhance the ability of the Bank to participate inthe coordination o f the transition. Higher level objectives to which the Project Contributes 8. The various activities financed by TFLIB contribute to the rehabilitation o f essential economic and social infrastructure and reduce the root causes o f conflict. Among the components, the economic management and development component has the least direct impact on populations but i s essential for the transition to longer-term sustainability o f other initiatives. Though this component may present a high risk, in that the infrastructure for economic and regulatory management may be evaded by office holders, even partial success will lead the way 2 for good governance in a country with little history o f providing social services to its population and an environment conducive to growth. Project Description Project development objectives and key indicators 9. The main objective o f the proposedDevelopmentForestry Sector Management Project i s to build robust and transparent structures for economic and fiscal governance and prepare a foundation for good governance, economic recovery and growth inthe forestry sector. This will provide a regulatory and governance framework for the new government. The Bank will support activities identified in the areas of: (i) public sector reform (civil service/decentralization of salary payment), (ii) governance and management in the forestry sector, (iii) enterprise public reform (private sector participation), (iv) the fiduciary framework (procurement/financial management and controls), and (v) the policy and regulatory framework and instruments for guidingfiscal and financial sector reform. This activity addresses one o fthese topics: governance inthe forestry sector. 10. Key indicators for the proposed technical assistance program and subsequent downstream implementation of emergency work will include: a. completion o f critical institutional reforms (in particular FDA institutional reform; forestry policy, forest taxes reform), b. implementation o f the results o f the concession review through Executive Order or other instrument, c. collaborationwith five Forestry Producer Associations active inForestry Districts; d. chain o f custody for export logs that is operating ina transparent manner from the stump to aboard ship; and e. functioning o f a voluntary Forestry Certification Program Office. 11. Progress depends on activities contributed or supported by other partners (primarily the European Commission, the U.S. and the UNagencies). Progress will be evaluated and reflected inthe PAD for a follow-on activity; it is not expected that meaningful quantitative benchmarks o fprogress can be identified under this sub-activity inthe time span covered. Implementation 12. It is proposed that the activities to be financed under this Grant be implemented by the United Nations Development Program (UNDP) in light o f the limited capacities within the Republic o f Liberia. The description andjustification by component are given inthe next section. The financing envelope for assistance inthe development forestry sector management-project will be US$2.00 million. 3 Project components 13. The major activities in forestry sector reform that the Bank will finance from the trust fund are given inBox 1.They will be executedbyUNDP. Box 1. Componentsofthe ForestrySector ReformActivity Support to a key Liberian governance instrument of the transition, the Liberia Forest Initiative, in the development o fthe policy or procedural reforms mandatedto it, particularly to provide: 1. technical assistance to the FDA in improving governance and performance within the forestry sector, and 2. support to the FDA and forest sector reform that might establish the conditions for no re- imposing o fUNSanctions against the country's major potential export earner. 14. Forests are clearly one of the most important natural resources in Liberia, yet have never been managed to deliver anywhere near their full potential to contribute to the long-term, sustainable economic growth o f the nation, the livelihoods o f local andrural communities, or the long-term conservation o f the country's natural heritage. 15. Liberia lies entirely within the Upper Guinean Forest Ecosystem, and contains two o f the last three remaining large blocks of Upper Guinean Rainforest in West Africa, an equivalent o f 42-43% o f this forest type. These biologically rich forests are home to approximately 240 timber species, 2,000 flowering plants, 125 mammal species, 590 bird species 74 reptiles and amphibians and over 1,000 insect species. Such statistics serve to emphasize the incredible diversity and value o f Liberia's forest biodiversity, andthe needto develop systems and capacity to manage these forests inways that enhance, and not degrade, this globally important resource. Forestry in Liberia has the potential to contribute 8-10 percent o f GDP and contribute significantly to export revenue and fiscal receipts. In recent years these forests have not been managed either to supportbiodiversity or to support the livelihoods o f the poor. 16. To halt the rapacious anarchic, full-scale logging begun in the 1990s in order to finance Liberia's civil war, the United Nations in May 2003 imposed Sanctions on timber exports (Box 2). These Sanctions were renewed for one year in December 2004 (a decision confirmed in the June 2005 mid-termreview by the Security Council) and have been renewed for an additional year in December 2005. Additionally, in July 2005 the NTGL's Forestry Concession Review Committee recommended all existing forestry concessions be cancelled, and that a committee comprising Liberian and international interests including civil society be established under the Liberia Forest Initiative (LFI) partnership (Box 3)-to monitor land use planning, the chain o f custody, and the forest revenue system, so that the system o f forest concessions and operations be transparent and inthe public interest. The cancellation of all concessions by Executive Order No. 1by the President in Feb 2006 and all the draft reform work done contributed to the lifting o f these Sanctions on June 19 2006 (Resolution 1689) that will be re-imposed if the Forestry Law and other reforms are not approved inthe next 3 months. 4 Box 2. UNSanctions against Liberia The UNinitially imposed Sanctions on Liberia in2001 inresponse to the role o f Liberia (and Charles Taylor in particular) in the conflict in Sierra Leone. The Sanctions included a ban on arms procurement, a ban on the diamond trade and a travel ban on officials. The Security Council announced inNovember 2002 that the Sanctions would remain inplace untilM a y 2003. InMay 2003 the Sanctions were renewed again in Security Council Resolution 1478 and extended to include a ban on timber production and exports. This ban was based on evidence suggesting that diamond and timber exports were being used primarily to finance the internal conflict. This ban has thrice been extended, most recently in December 2005. The Panel o f Experts re-established by resolution 1579 (2004) reported to the UNSC in June 2005 that there i s no evidence o f illegal timber being exported from Liberia, but noted that few o f the reforms inthe NTGL roadmap necessary to meet the conditions set forth inresolution 1521 (2003) for lifting the measures on timber have been implemented. In order for the ban to be lifted, the Security Council has stated that a transparent government accounting system should be in place, the Government should be in control o f the logging areas and that a review o f timber concessions and a sustainable logging plan be developed. On June 19,2006 Sanction have been lifted but will be re-imposed in 3 months ifthe Forestry Law and Regulations are not passed before inthe Assembly. 17. The performance o f this sector i s closely linked to both economic management and economic growth. A well-managed forest sector has a strong potential to contribute to economic growth, poverty alleviation, and environmental sustainability in Liberia. Forested lands still cover a large part o f the country and their sustainable development could become a pillar o f the rural economy. Furthermore, the areas o f greatest poverty in Liberia tend to correspond with areas o f remaining forest, so development in this sector will have an immediate impact on the alleviation o f poverty in the poorest rural areas of the country. Finally, forests inLiberia provide many environmental services, including conservation o f globally critical biodiversity, and the ongoing provision o f these services depends on a well-managed sector. Box 3: The LiberiaForestry Initiative The Liberia Forest Initiative (LFI) i s a coalition o f donor governments, lending agencies, non-governmental organizations and civil society participants committed to the long-term sustainable management o f Liberia's forest estate through a shared multi-donor program sponsored by parallel financing mechanisms. Members o f the LFI, in addition to the World Bank, include organizations such as the U S State Department, the European Commission, the U S Forest Service, the International Monetary Fund, the Food and Agriculture Organization, IUCN, the Environmental Law Institute, Conservation International, CIFOR, IATA, CGIAR, and Fauna and Flora International, as well as Liberian government agencies and civil society organizations. The LFI's primary objective i s to ensure Liberia's forests contribute to the long-term well-being o f Liberia's people, while maintaining and enhancing its rich biological diversity. 18. The current post-conflict situation, andthe efforts of the LFI and other initiatives, provide an unique, if fragile, opportunity to assist Liberia in rebuilding its institutional structure and support civil society organizations to manage Liberia's forest estate in a sustainable manner and to conserve its biological diversity. 5 Development Forest Sector Program Objective 19. The objective o f the component and o f the World Bank medium term engagement in this sector is to assist Liberia to harness the potential o f forest to reduce poverty in a sustainable manner, integrate forests effectively into sustainable economic development, protect the vital local and global environmental services and values o f forests, based on an integratedpackage o f key reforms inthe sector, that will improve the performance o f national institutions to make the forest sector vibrant and sustainable. In close coordination with the LFI, the Bank will assist the Government to implement the forestry program described above. 20. The Forestry Reform Program builds on the experience o f the World Bank in many other forestry projects inAfrica, Latin America andAsia, and on the experience o fmany other donors. Project Components 21. The World Bank decided to take a step by step approach to the forests issues in Liberia, where the LICUS Trust Fund grant financed some immediate enabling actions supporting the multi-donor LFIinthe pre-election period, and funds from this component will finance medium term actions after elections and leading into the new administration. A GEF medium size grant for the only national park in Liberia (Sapo Park) has been approved also for an integrated approach to forests that includes conservation and sustainable use. 22. Priority actions that need to be undertaken in order to transform the forestry sector into a vibrant and sustainable engine o f growth in the country require the following six program components/activities: (i) Institution-Building in the Public Sector, (ii) Sustainable Management of Community Forests, (iii) Sustainable Agro-Forestry Systems, (iv) Sustainable Small and Medium Private Sector Development, (v) Competitive Forest Development Grant Facility, and (vi) Public Communication Program for Forestry Sector. Certain components (institution- building, sustainable private sector development andthe Forest Development Grant Facility) are o f a national scope. Others (sustainable management o f community forestry, sustainable agroforestry systems) will be targeted to specific geographical areas. The forest sector components are proposed as an integrated package, with a comprehensiveness and breadth commensurate with the seriousness o f Liberia's governance problems on the one hand and the potential of Liberia's forest resources, if well managed, on the other. The proposed reform package i s intended to alter permanentlythe conditions that led to the imposition o f the timber Sanctions. The Bank, in close coordination with all the LFI partners, will assist the Forestry Development Administration (FDA) undertake the basic activities necessary to ensure that the forestry sector contributes to the national and local economies. The timeline for the forestry activities i s given inBox 4. te sector development 6 Component 1: Institution-building inthe public sector (US$OSm) 23. Activities under the LICUS TF have supported the initiation o f a number o f important institutional reforms in the public sector that still must be consolidated. A process o f modernizing the Forestry Development Authority (FDA) has been initiated by the LICUS TF and needs to be completed, based on the principle o f decentralization to local authorities, participation o f civil society, and regulatory efficiency. A draft forest law needs to be finalized and approved, which will better establish the legal framework and the responsibilities o f each actor. More specifically, Component 1will support: a. Restructuringo f FDA's role and responsibilities; b. Design and implementationo fnew forestry regulations, policies and C. Design of financing instruments such as a Protected Areas Fund ; d. Local governance for legalreforms; e. Forestry Reform and MonitoringCommittee; f. Trainingfor FDApersonnel onlog-tracking andchainofcustody; 8. Establishment o f an information management system (including FDA website); and h. Development ofCode ofForest Practice i. EnvironmentalandSocialAssessmentoftheProject Component 2: Sustainable management o f community forests (US$0.3m) 24. This component will promote the conservation and sustainable use o f natural forests. It builds on the LICUS TF activities related to Forestry Inventory and Log Tracking, as well as other LFIactivities inthese fields. Component 2 will: a. Provide training and technical assistance for the development o f sustainable forest management plans for communities (including certification where appropriate) and the sustainable use o f non-timber forest products (NTFPs) using Market Analysis and Development Methodology ( a methodology developedby FA0 inthe 90); and b. Support the establishment o ftwo pilot community forestry concessions. Component 3: Sustainable aao-forestry systems (US$0.3m) 25. It has been increasingly recognized that the integration o f the forest sector with other productive sectors (such as crop production, cacao, and rubber) i s essential to achieve a sustainable sector. The Tree Outside the Forest Program will therefore not only focus on management o f natural forests, but also on management o fplantations and agro-forestry systems. Component 3 will build on the considerable advances made in this field in West Africa by the tree-crops program o f the InternationalInstitute for Tropical Agriculture. Activities will include: a. agriculture sectoral analysis o f the interface between agriculture and forestry; and b. Assessment of the current situation and provision o f technical and market-oriented training and technical assistance for tree crops management activities. 7 Component 4: Sustainable small and medium private sector development (US$0.3m) 26. This component seeks to create a modem and competitive private sector that will contribute to sustainable development o f the forest sector in Liberia as one o f the driving forces o f growth o f the economy. The program will: a. perform an assessment o f the capacity and needs of small and medium private sector forest institutions; and b. provide training to strengthenprivate sector forest institutions intheir ability to practice innovation and research, marketing, and information management for tree and forest products. Component 5: Competitive Forest Development Facility (US$0.3m) 27. This component would finance, on a cost-sharing basis, a program o f grants to private sector, non-governmental organizations, and communities for the creation o f micro-enterprises for reforestation and sustainable forestry management sub-projects. Specifically, the program will fund: a. a seed grant program for communities, NGOs, and private sector to start up innovative activities, following the manual and criteria already developed under Small Grant Programby UNDP and CI; and b. a Sapo CDD program through Liberian Agency for Community Empowerment (LACE) for community driven development projects around Sapo National Park, to cover the extraordinary costs to L A C E for project execution inthis remote region. Component 6: Public Communication Program for Forestry Sector (US$0.3m) 28. This component will support the development and the implementation o f a Public Communication Program on the forestry reform, aimed at buildingpublic support to transparent and equitable management o f forestry resources, fostering broad-based debate on forest management, and support community oversight and bottom-up pressure for change. Activities will include public awareness campaign on the forestry reform, support to advocacy work ledby civil society and community groups and capacity buildingto the FDA on transparency andpublic communication. These activities will be implemented in close coordination with the other LFI members and will benefit from synergy from their own proposed activities. A LFI Communication Steering Committee has been set up to facilitate the development o f the strategy and the coordination interms o f its implementation. Activities will include: a. designing a Public Communication Program that raises awareness on forestry reforms; and b. implementing the Public Communication Program through training in communication strategy and methodologies to support FDA transparency and public communication capacities and civil society and community group advocacy work. 8 AppraisalSummaryandImplementation 29. This activity, which will assist Liberia to harness the potential of its forests to reduce poverty ina sustainable manner and contribute to national growth and sustainable environmental services, will primarily consolidate activities launched under the LICUS Trust Fund. It would be third-partyexecutedbyUNDP. Activity Financing 1 Institution-building inthe public sector 470,000 2 Sustainable management of community forests 280,000 I 3 Sustainable agro-forestry systems 280,000 4 I Sustainable small-medium private sector development I 280,000 I TOTAL FORESTRY SECTOR REFORM FinancialManagement 30. The grant will be third-party executed by UNDP, the Bank's partner in this conflict- affected country. UNDP's fee under the management contract will be six point five percent (6.5%). UNDP will only be responsible for the project financial management, recruitment and procurement o f good and service for the project and will facilitate the actual implementation o f the other activities for which the Government i s responsible for (FDA) .UNDP will still be responsible for sending progress report to the Bank. Partnership arrangements 31. Liberian Forestry Initiative partners include the US, EC, IMF, FAO, IUCN, CGIAR, CI, the Environmental Law Institute and the Bank. The Bank would devote attention to bring other donors on board. Monitoring and evaluation of outputs/outcomes/results 32. Inthe forestry sector, the process of reform is constantly monitored by meetings of the LFIandwillbereviewedregularlybyBank Staff. 33. Output and outcome indicators have been listed inparagraph 10 above. Specific indicators include: a. the completion o f critical institutional reforms (reform of FDA, new forestry policy approved, forest taxes regulation issued), b. implementation o f the results o f the concession review through administrative and/or legal action, c. active operation o f five Forestry Producer Associations inForestry Districts, d. numbero f forest users groups registered and operational, 9 e. operation in a transparent manner o f a chain o f custody for export logs from the stump to aboard ship, and f. establishment andfunctioning ofavoluntary Forestry Certification ProgramOffice. 34. Results will be measured by the not re-imposing o f Security Council Sanctions against forestry production and the re-establishment of one o f Liberia's major sources o f employment, income and government revenue. Social 35. The principle social issues are related to the role o f local communities in implementing forestry activities. A social assessment, that will complement the social assessment done for the CDD project, will be carried out at the beginning o f the program to ensure that project objectives and impacts are appropriate to beneficiaries. The activity will give particular emphasis to working on community forestry according to the "3 C's" LFI principles: community use, conservation, and commercial forestry. Participatory Approach and Consultation 36. The Bank's new forest policy promotes the active involvement o f people living in and near forest areas in all aspects o f the management, conservation, and sustainable development of their naturalforests. This approach is consistent with the proposedoperation. 37. A wide range o f stakeholders will be involved in project implementation through the multi-donor LFI. Local and international NGOs will continue to be consulted during implementation. It i s expected that some parts o f the program will ultimately be implementedby the NGO community. Environment/Safeguardissues, includingpossible exceptions 38. The Forestry Reform activity does not expect to generate negative environmental impacts. On the contrary, it is expected to be highly beneficial environmentally, as it will promote sustainable forest management and conservation o f areas important for biodiversity. Moreover, by supporting the development o f a sustainable forestry sector in general, it will lead eventually to more standing forests that can provide an array o f environmental services. The project will be implementedfollowing all the principles of the new World Bank Forests Policy OP 4.36 and OP 4.01. The project could have unintended minor negative environmental impacts from investments inreforestation, forest management, or even conservation. The project team suggests a category "B" rating. An EMP i s not currently seen as necessary for the proposed project. Nonetheless, as agreed at the review meeting and suggested by the Safeguard Team, a Strategic Sectorial Environmental assessment will be preparedwithin six months o f the effectiveness date o f the project. The study's intention i s to analyze possible negative environmental and social impacts o f the entire forestry sector. 39. The project will not finance any activity that would cause conversion or degradation of critical natural habitat and will give preferences to unforested or degraded forest land for establishment o f plantations (Component 3). The project will not support industrial-scale commercial logging (under Components 2 and 4). The project may support forest management and harvesting by enterprises at community level and scale, but only if it i s conducted in 10 accordance with the principles for sustainable, participatory forest management set forth in OP 4.36. 40. The forestry reform key stakeholders are identified as: i)local communities; ii)farmers; iii)consumers ofwood; iv) consumers of other environmental services such as water; v) commercial timber dealers and processors; vi) public institutions , vii) private institutions ; and viii) women working inthe forestry sector. Sustainability 41. While emergency projects like this do not directly address sustainability issues, reform o f forestry sector should contribute to long term sustainability and lay the basis for the post- transition governance. Indeed, the sustainability o f the reforms supported by this project depends upon the efforts by the public, including international as well as national communities, to require transparency and accountability o f the government and its members inthe forest sector. 42. Also sustainability is strengthened by the following: (i) the design o f the Program has, from the beginning, been based upon a successfully implementation o f the LICUS TF and the active collaboration o f the LFI, (ii)the Program focuses on capacity-building o f forest communities and the public and private sector; (iii) the Program in component 1 supports the design o f a Protected Areas Fund to ensure long-term availability o f capital for conservation o f critical protected areas in the country; and (iv) the Program encourages policy reforms to improve sustainability o f the forest sector. Critical risks andpossible controversial aspects 43. This project, including the complementary endeavors financed outside this activity, is a high-riskproject. The risks to the people of Liberia and to the subregiondue to the likelihood o f disillusionment with the transition and from that, the possible returnto violence if the project i s not undertaken are greater, whichjustifies proceeding and taking extra efforts to reduce the risks where possible, and manage themwhere this i s not possible. 44. Donor coordination may falter. This i s being addressed through regular and frequent meetings through relevant institutions present inMonrovia, including LFI. 45. After an initial high level o f commitment to Liberia's recovery, donor fatigue and other priorities may lead to a loss o f donor focus and a mismatch between early pledges and actual funding. This risk is present in all post-conflict contexts, but is particularly true at the present time given the coincidence o f Liberia's transition with other high profile post-conflict reconstruction situations demandingdonor response. 46. In forestry, there is a reputational risk that the program may be stopped by public opposition to harvesting o f natural forests, even if certified. This i s being addressed and will continue to be addressed through working closely with national and international NGOs from the inceptiono f the program (e.g. IUCN, CI, WB/WWF alliance, Green Advocates). 11 Grant conditions and covenants 47. This activity will be implementedthrough a direct Grant Agreement signed between the World Bank and UNDP. This agreement will detail the terms and conditions governing the implementation o f this grant. The financial management arrangements for this Grant Agreement will be in accordance with the Memorandum o f Understanding between the World Bank and UNDP o f February 9, 2004 which i s valid for a period o f four years.. The detailed terms and conditions covering the financial management and disbursement arrangements are specified in Annex 5. Proiect ClosinP Date 48. The expected closing date o fthe Project is Sept 30,2009, 12 Annex 1:ResultsFrameworkandMonitoring Higher Level Objective: Contribute to reducing the root causes o f conflict through rehabilitation of essential economic and social infrastructurethat will permit the transition to longer-term sustainability o f other initiatives. Project Objective: To assist Liberia to harness the potential o f its forests to reduce poverty in a sustainable manner by integrating its forests effectively into sustainable economic development that protects the vital local and global environmental services and values o f its forests. Sub-component Activity Outcome/ Results Indicators 1 Institution-Building a. Restructuringo f FDA financial and Transparent internal inthe Public Sector FDA'srole and institutional reform financial management responsibilities. designed system o f FDA b. Design and operational. implementation o fnew Commercial procedures forestry regulations reform package Transparent macro-level and policies. finalized revenue management C. support to started. organizations o f local governance. Monitoring o fphysical d. Support to the Forestry production; log tracking Reform and inplace. Monitoring Committee. e. Training for FDA Institutionalreform o f personnelon log- FDAplanned. tracking and chain o f custody. Concession f. Establishment ofan management legislation information reviewed and improved management system (including FDA Assistance to the website). Forestry Reform g. Development o f Code Monitoring Committee o f Forest Practice provided. 2: Sustainable i. Provide training and Community forestry Community forestry Management o f technical assistance for established inLiberia program and support Community Forests the development o f andtest pilotprojects needs for the FDA sustainable forest initiated community forestry management plans for division designed. communities (including certification where appropriate) and Community forestry test the sustainable use o f sites established. non-timber forest products (NTFPs); 13 Sub-ComDonent Activity Outcome/ Results Indicators b. Establishment o f two pilot community forestry concessions. 3 Sustainable Agro- a. Agriculture sectoral Enhance control over Forestry and agriculture Forestry Systems analysis. forest lands and interface analyzed b. TreeCrop resources through Establishment. revived sustainable alternative ago-forest Secure community production systems for livelihood alternatives communities. created. 4 Sustainable Small a. Small and medium Training plan designed Private sector trained in and Medium Private private sector forest to implement forest management Sector Development institutions capacity sustainable forest based on the "3 Cs". and needs assessment. product processing b. Training inmarketing practices with aim o f and innovative forestry bringingNGOs, small practices. and mediumenterprises, and concession holders upto international standards. 5 Competitive Forest a. Seed grant program. Secure commitment to Income generating spin- Development Grant protected areas and o f f industries and Program b. Sapo CDDprogram forest lands, and enforce community rule o f law inSapo. development fostered through the grant programs. 5 Public a. Design o f a Public Forestry Sector Reform Public Communication n ,ommunication Communication has broad-based public Program created. Program Program for Reform. support b. Implementation o f FDAand civil society Public Communication partners trained in Program. Public Communication Program. 14 Annex 2: ProjectCosts ProjectCost by Sub-Component IndicativeCost CUSS) 1 Institution-Building inthe Public Sector a. Restructuringo f FDA'srole and responsibilities. US$40,000 b. Design andimplementation of new forestry regulations us$20,000 and policies c. .Design o f Protected Areas Fund us$20,000 d. Support to organizations o flocal governance. US$40,000 e. Support to the Forestry Reform and Monitoring US$150,000 Committee. f. Training for FDApersonnel onlog-tracking andchain US$50,000 o f custody. g. Establishment o f an informationmanagement system (including FDA website). us$100,000 h. Development ofCode ofForestPractice US$30,000 i. SectorialEnvironmentalAssessment us$20,000 2: Sustainable Management o f Community Forests 1. Provide training and technical assistance for the US$140,000 development o f sustainable forest management plans for communities and the sustainable use o f non-timber forest products (NTFPs). b. Establishment o ftwo pilot community forestry concessions. US$140,000 3 Sustainable Ago-Forestry Systems a. Agriculture sectoral analysis. b. Tree Crop Establishment. 4 Sustainable Small andMediumPrivate Sector Development a. Small and medium private sector forest institutions capacity andneeds assessment. b. Training inmarketing and innovative forestry Dractices. 5 Competitive Forest Development Grant Facility a. Seed grant program. US$140,000 b. Sapo CDDprogram US$140,000 6 Public Communication Program a. Design o f a Public CommunicationProgram for Reform. b. Implementationo fPublic CommunicationProgram. UNDP Fee US$130,000 TOTAL FORESTRY 15 Annex 3: RiskAnalysis ForestReformProgram:CriticalRisks From outputs to objective GEMAPimplementationproves difficult Continuous vigilance will be done Lack o fpolitical commitment to a transparent Include Communication strategy with high and accountable sector level decision makers Program i s stopped by public opposition to Working closely with national and harvesting o f natural forests (even ifcertified - internationalNGOs from the inceptiono f the reputation risk) program (e.g. IUCN, CI, WB/WWF alliance, Green Advocates) Development o f effective inter-institutional channel o f communication InformalLFIDonor Committee meets every month Creation o f working groups on different Political changes disrupt continuity o f activities reforms that can continue the work independently frompolitical changes Low humanresource capacity at FDA Professional, educational training will be providedby the LFIprogram No support for establishing Community NGOsand Communitiestrainedto request Forestry Programs and argument the need for community work Illegal logging still seen as more profitable and Develop simplified procedures (e.g. permits) less demanding (administratively) than legal and certification program to add value to loggingprocedures wood Concessionaires do not accept the results the A communication campaignwill be done to Executive Order and go to Court show that it is also inthe private sector interest to accept the recommendation Small Grant Program ineffective Experienced implementing partner will execute it Zommunication Strategy i s too fragmented and The communicationprogramwill be leads to inconsistent messages implementedunder the guidance o f the "ad- hoc communication steering committees" Risk rating: H(HighRisk), S (Substantial Rsk),M(Modest Risk), N(Negligible or L o w Risk) 16 Annex 4: ProcurementArrangements 1. Procurementarrangements Procurement for the proposed project will be carried out in accordance with the World Bank's "Guidelines: Procurement Under IBRD Loans and IDA Credits" dated May 2004; and "Guidelines: Selection and Employment of Consultants by World Bank Borrowers" dated May 2004, and the provisions stipulated in the Legal Agreement or any other method accepted by the Bank. 2. ProcurementImplementation This Project will be third-party executed. UNDP will be required to follow Bank procurement procedures and prepare an annual procurement plan for every calendar year from January to December. The first Procurement Plan and Annual Operational Plan will be done in the first month o f Project Implementation and thereafter by no later than Dec 15 for each subsequent year. 3. Procurementof Goods Goods procured under this Project will include Goods estimated to cost a total o f US$200,000 and consisting of computers & accessories, software, canoes, bicycles, motorcycles & helmets, 4x4 vehicles, AV equipment, HF radios, satellite phone, solar panels, deep-cycle batteries & associated wiring/equipment, generators, office furniture & equipment, office supplies (paper, pens, pencils, staplers, scissors, etc.), audio-visual equipment, environmental education equipment & supplies (portable television, microphone & loud-speaker, paper, chalk, boards, t- shirts, pins, badges, brochures, video camera, etc.) and field supplies (flashlightdtorches, lamps, lamp fuel, batteries, rice, ponchos, cooking utensils, matches, etc.). International Competitive Bidding (ICB) will be used for contracts above US$lOO,OOO and National Competitive bidding (NCB) will be used for all contracts between US$lOO,OOO and US$20,000. Shopping may be usedfor contracts below US$20,000. The request for quotations shall be inwriting and addressed to at least three suppliers. The quotations would be opened same time. The request for quotations will contain the following: technical specifications, delivery time, payment conditions and any other information that may be helpthe suppliersto prepare competitive offers. 4. CommunityProcurementProcedures Community Procurement Procedures would be set out in the project operation manual and written agreements entered into with subprojects beneficiaries. 5. ConsultantServices (includingtechnicalservices) Contracts for consulting services are expected to cost about US$SOO,OOO. The project will require extensive use individual consultants as advisors to FDA that will form the core o f the Strategic PlanningUnit for managing the project's technical and administrative tasks. Individuals and Firms will also be selected for specific studies and other technical tasks. More specifically, the following selection procedures will be applied as the case may be for each contract. 17 Quality- and Cost-Based Selection (QCBS) in accordance to section I1 o f the consultants Guidelines will be used for all major contracts under the project and for all contracts estimated to cost more than US$lOO,OOO equivalent. Shortlists for contracts estimated to cost less than US$200,000 may consist o f national firms only, where available. Least Cost Selection (LCS) maybe usedfor assignments of a standardand routine nature for auditing and engineering services o f no complex nature. Consultants Qualijkations (CQ) may be used for assignments estimated to cost less than US$lOO,OOO and for which the need for proposing and evaluating competitive proposals would not bejustified. Single-Source Selectionmay be used inaccordance with paragraphs 3.8 to 3.11o f the Guidelines for the Selection and Employment o f Consultants in the case o f firms; and with section (V) Selection o f Individual Consultants in accordance with paragraphs 5.1 to 5.3 o f the Guidelines. This may include recruitment o f NGOs which possess specific experience relevant for project purposes, as for sections 3.15 and 3.16 o f the Consultants guidelines. Individual Consultants. Services for assignments that meet the requirements set forth in the first sentence o f paragraph 5.1 o f the Consultant Guidelines may be procured under contracts awarded to individual consultants inaccordance with the provisions o f paragraphs 5.2 through 5.3 o f the Consultant Guidelines. Under the circumstances described in paragraph 5.4 o f the Consultant Guidelines, such contracts maybe awarded to individual consultants on a sole-source basis. 6. Prior Review by the Bank For Goods contracts: Each contract for goods estimated to cost the equivalent o f US$lOO,OOO or more and all contracts procured under Direct Contracting shall be subject to Prior Review. - All contracts awarded under the Single Source Selection method will not be subject to prior review. - For Consultants and Technical Services: All TORS, all contracts awarded under the Single Source Selection method, each contract with a consulting firm estimated to cost the equivalent o f US$lOO,OOO or more, and each contract with individual consultants estimated to cost the equivalent of US$20,000 or more will be reviewed the Bank. - All other contracts will be selectively reviewed by the Bank during project implementation and will be governed by the procedures set forth inparagraph 5 o f Appendix 1o fthe relevant Guidelines. 18 7. Procurementfiling system The project staff will maintain accurate records o f all procurement activities and documents related to the Project. The procurement files will be maintained for review by the Bank's supervision missions and independent auditing. The project staff will also consolidate procurement activities into Quarterly and Annual Progress Reports. 8. Training/Workshops/Committees Support to training, workshops and committees to be funded by the grant totals approximately US$300,000. These will consist o f support to regular meetings o f the FDA, Parks Services, Communities, etc. 9. OperationalCosts The grant will finance reasonable expenditures incurred by UNDP and FDA for operating the Project totaling approximately US$200,000. These include communications (telephone and e- mail primarily), in-country transportation (taxis, buses), subsistence for local personneltraveling in Liberia, motorcycle, vehicle & generator operating costs (fuel, lubricants, maintenance), postage & shipping, airfares, international subsistence and indirect costs (office rents, water, electricity, insurance, maintenance o f facilities, and internet fees), office rent and field allowances. 19 Annex 5: FinancialManagementandDisbursementArrangements 1. Introduction The financial management assessment was carried out in accordance with the Financial Management Practices Manual issuedby the Financial Management Board on 3 November 2005. The objective o f the assessment was to determine whether the implementing entities have acceptable financial management arrangements, which will ensure: (1) the finds are used only for the intended purposes in an efficient and economical way, (2) the preparation o f accurate, reliable and timely periodic financial reports, and (3) safeguard the entities' assets. UNDP Liberia will be receiving the finds and implementingthe Project on behalf of Liberia, at the request o f the Government o f Liberia. UNDP will only be responsible for the project financial management, recruitment and procurement o f good and service for the project and will facilitate the actual implementation o f the other activities that are the responsibility o f the Government (FDA) .UNDP will still be responsible for progress reporting to the Bank. 2. Overviewof ProgramandImplementationArrangements The main objective o f the proposed economic management and development program, including its forestry component, is to build robust and transparent structures for economic and fiscal governance and prepare the foundation for good governance, economic recovery, and growth. This will help support the efforts o f the newly elected government to improve the regulatory and governance framework in Liberia. For this activity the Bank will finance from the trust fund major activities in forestry reform. It is proposed that the activities under this objective and components be implemented as appropriate by the United Nations Development Program (UNDP) that has successfilly implemented other projects in Liberia. The financing envelope for assistance in economic management and development is US$2.00 million. 3. CountryIssues Decades o f corruption, abuse, and mismanagement of public finances and administration are acknowledged as both cause and consequence o f the recent war. A dysfinctional judiciary allowed egregious fiscal and administrative practices to continue with impunity. With the war now over, financial and judicial systems remain weak or broken, public trust in Government institutions and officials is low, and commercial entities are subject to an outmoded regulatory regime and rent-seeking behavior. There i s no CFAA or CPAR that has been undertaken recently. However as part of the UN Needs Assessment in 2003/2004 there was quick diagnostic assessment of the P F M system undertakenby both the World Bank and the IMF. This has been followed up through targeted support through a Licus Grant for improving PFM systems and supporting the functioning of entities such as the Cash Management Committee inthe Ministry o f Finance. 20 Recent audits conducted by the Auditor General of Liberia, European Commission, and by ECOWAS investigators and economic crimes experts revealed grave mismanagement o f public finances in GOL departments. Partly in response to these findings, the National Transition Government o f Liberia (NTGL) and international partners developed the Governance and Economic Management Assistance Program (GEMAP) to improve economic management in Liberia. As government capacity is still weak, UNDP Liberia will implement this project. The risk analysis is based on this information and the capacity at the Department responsible for Forestry. 21 n.E! W E m E E E E .3 B 4 2 3 n 0 E cd .E 5. StrengthsandWeaknesses Strengths There i s a strong commitment by the Forestry Development Agency to work with the UNDP in implementing this project. The implementing agency has the experience to ensure speedy and timely implementation and UNDP will ensure that appropriate financial management practices are followed and that project funds are used for intended purposes. UNDP in general i s comfortable with World Bank FMrequirements, andUNDP Liberia (DEX) specifically has prior experience implementing World Bank grants inLiberia. Weaknesses As in other post conflict countries, the overall fiduciary environment in Liberia i s very weak. Successful implementation o f this project will require ownership and active participation o f governmental authorities to ensure sustainability. This i s the greatest challenge that this project will face. 6. FMStaffingfor the Project UNDP has a fully staffed and qualified team including professional accountants both at HQas well as in the field to provide financial oversight for this project. Financial and accounting staff report through a number o f layers o f hierarchy to ensure adequate oversight o f quality o f work and probity. UNDP uses ATLAS as its ERP software option, for which UNDP providestraining for its staff inits use. UNDP has produced a Financial Manual that integrates its own established procedures with ATLAS user instructions. Inaddition to the use o f ATLAS, separate paper files are kept to store project documents. UNDP has an acceptable internal control system in place. All project activities will beincluded inthe annual internalcontrol / internal audit task. 7. BudgetingArrangements UNDP will prepare annual work plans and budget for the project based upon input from the beneficiary institution and will be sent for review from the World Bank within one month from effectiveness and there after by no later than Dec 15 each subsequent year. The budgets will be revised as necessary based on comments received. The budgets will serve several operational purposes: (i) planning o f request o f funds from the Bank; (ii) for quarterly forecasts to be basis included inIFRs; (iii) monitoringproject implementation and identifyingareas o f delays. 8. AuditingArrangements UNDP Liberia is annually auditedby an internal auditor (external to the country) and the current auditing arrangements will be extended to cover this project. The last audit report contained no major findings and has been found to be adequate in scope and coverage for this project. This project will be audited as part of the UNDP Liberia activities and auditors will ensure that there i s adequate information within their report on the project's activities. The audit will be completed on timely basis and copies submitted to the World Bank within six months after the 25 end ofthe fiscal year to which it relates. Ifthe reports are not ready within 6 monthsafter the end o fthe fiscal year, the World Bank reserves the right to request specific audits. 9, ReportingandMonitoring UNDP Liberia will prepare and generate interimun-audited Financial Reports (IFR) and submit them to the World Bank as part o f the project progress report and for disbursement purposes. These reports will consist of: a. Financial Reports: to include sources and uses o f funds and expenditures by project components and activities. b. PhysicalProness Reports: to include narrative information and output indicators linking financial information with physical progress for the major activities under each o f the project components. C. Procurement Reports: providing information on the procurement goods, works, services, training and selection o f consultants showing procurement performance against plan, including information on all authorized contract variations. d. SeparateAccount Activity Statement (from UNDP books) e. Summary Statements o f Separate Account Expenditures for contracts subiect to prior review, and f. Summary Statements of SeparateAccount Expendituresfor contracts not subiect to prior review. These reports will be submitted to the Bank within 45 days from the end o f each quarter. The format o f the IFRs will follow UNDP standard reporting formats, and will be reviewed and agreed before effectiveness. 10. DisbursementArrangements The project will use UNDP's one universal US$ Bank Account to receive the funds but shall maintain a Separate Account inUNDP's Books for the purposes o f this project. The project will use the Reports Based method as basis for its disbursements. The project will submit its cash flow requirements for the implementation o f the first six months of project activities to support its initial advance. The cash flow statement will be supported by the approved work plan and budgetanda procurementplan. The initial advance will be paid into the UNDP's universal account. Subsequent disbursements will be based on the IFR including subsequent six months cash flow statements (and related procurement plan) reconciledto the funds available inthe account. 26 10. Conditions The following actions are to be implemented as specified: S i N Action ByWhom ByWhen 1. Agree on formats o f IFR under the project UNDP Effectiveness 11. Supervisionplan During the first year o f the project implementation, intensive World Bank supervision will be requiredinorder to ensure that the project financial management arrangements are inplace and functioning. The first FM supervision mission after effectiveness will include a review o f the flow o f funds arrangements for the transfer o f funds for sub-project activities and make any modifications that may be required for effective implementation. There will be two supervision missions per year. 12. AllocationofGrant Proceeds The allocation o f the project proceeds by expenditure categories are the following: ExpenditureCategory The Bank's Boardof ExecutiveDirectorsconsentedto the financingof expendituresfrom TFLIB at 100% due to the financialconstraintsfacingLiberia. 13. Conclusionsof the FMAssessment This would be a highrisk project in a difficult post-conflict environment were it not for the role o f UNDP Liberia as Grant Recipient and implementing agency. With UNDP taking on implementation responsibility for this project, the risk i s assessed as "Modest". UNDP staff involved in the implementation of the project will have experience working with international donor agencies, and the World Bank in particular, as regards fiduciary responsibilities and accountability o fproject funds. 27 The project is likely to succeed through the combined supervision o f UNDP staff and the Bank, especially in its early stages of implementation to ensure systems are adequately followed to manage project fund flows through to procurement, and appropriate reports are being generated to ensure proper oversight and accountability. 28 Annex 6: Co-Financing The Liberia Forestry Initiative is a partnership driven initiative inwhich the World Bank plays a lead in providing technical advice and in catalyzing donor support. The Bank's contribution i s located in the table below that shows co-financing by source. Inaddition to the World Bank, the table presents other active donors, international NGOs, and GoL contributions. Table A6: LFICo-Financing bv Source Donor Amount U S State Department US$4,500,000 USAID US$2,500,000 U S Treasurv us$loo.ooo World Bank (LICUS and TF) US$2,570,000 World Bank (GEF) us$l,ooo,ooo EUBrussels us$2,000,000 EC Liberia us$200.000 GoL us$l,ooo,ooo Fauna and Flora International us$500,000 Conservation International US$300.000 FA0 US$55,000 Total US$14,725,000 29 VI VI cr, g 3 .