Integrated Safeguards Data Sheet (concept stage)l Section I - Basic Information Date ISDS Prepared/Updated: August 29, 2005 A. Basic Project Data (from PDS) I.A. 1. Project Statistics COUNTRY: Nicaragua PROJECTrID: P094154 PROJECT: Precious Woods Project TTL: Armando E. Guzman APPRAISAL DATE: 2005 IBRD or IDA AMOUNT ($m): 0.0( BOARD DATE: n/a BCF AMOUNT ($m): 1.19 Borrower ($m): 6.63 Other - private source ($m): 2.33 MANAGING UNIT: LCSEN SECTOR: Forestry (100%) LENDING INSTRUMENTS: STATUS: I.A.2. Project Objectives (From PDS) The Nicaragua Precious Woods Project will reforest 600 ha of (legraded former pasture t achieve carbon sequestration and to create a sustainable source of valuable wood for national and intermat onal markets in order to reduce the pressure on natural forests. In addition, the project will include the pre ervation of 350 ha of existing secondary forests and provide employment in the area. This will enable sus ainable income- generation options for poor and vulnerable comnmunities in southwestern Nicaragua. The roject will thus bring along not only carbon sequestration but also benefits regarding ecological, wildlif and landscape diversity. The estimated total sequestration would equal 297,045 t C02e by 2017 (including 175,647 C02e, or 59%, by 2012). As with all BioCF projects, this project represents a unique opportunity to simultaneou ly promote the objectives of the United Nations Conventions on Climate Change, Biological Diversity, and Desertification; to improve rural livelihoods: and to contribute to the sustainable developm nt objectives of one of the poorest nations in the Western Hemisphere. I.A.3. Project Description (From PDS) As indicated above the project consists in the reforestation of degraded pasture land with T ak and valuable native wood species on to former cattle ranches in southwestern Nicaragua. The project co ponents are: 1.Reforestation of former pastures. In total it is planned to reforest 600 ha. The expansion f the project to up to 4000 ha is likely if the experiences made with the proposed activity lead to positive results specifically regarding the registration as aCDM project. But it would not be subject to the agreement with the BioCarbon Fund. 2. Preservation of the existing secondary forests. These are located mainly along creeks, teep slopes and swamps. As forest preservation is not an eligible sink activity under the CDM no CERs wi 1be claimed for this component. They amount to about 350 ha. The carbon purchase funds from the BioCarbon Fund would be spread over a period f 7 years. It is expected that the Bank's supervision responsibilities will be very limited, as no Bank fun s per se flow to the project, and that this responsibilitywould not exceed 7 years. L.A.4. Project Location: (Geographic location, information about the key environmental and social characteristics of the area and population likely to be affected, and proximity to any protected areas, or sites or critical~atural habitats, or any other culturally or socially sensitive areas.) The project is located on two former cattle ranches (or Fincas) near the village of Sapoa, community of Cardenas, in Southwestern Nicaragua between Lake Nicaragua and the Pacific Ocean. The Finca La Pimienta is ocated directly at the border to Costa Rica, the Finca Javalina about 3 km to the north. The two project sites are not onnected and are not in the proximity of any protected arca, critical natural habitats or otber culturally or socially sensi ive areas. The project is situated in the community of Cardenas in the southwest of Nicaragua near the border o Costa Rica (see map). Cardenas has an area of 228 km2 and a population of 6,388 inhabitants, most ofthem live in ural areas. In the Poverty Map of Nicaragua the municipality of Cardenas is classified as having a high level of pove ry with a poverty head count index of 72.2. Due to the lack of employment opportunities most people live on subsi tence agriculture. Many migrate to other parts of the country or to Costa Rica. Bl. Check Environmental Classification A [ ],B [X], C [l, FI [],TBD [] l Comments: Environmental risks or negative impacts are not expected in the project area of influence. However, an EA report will be prepared(and disclosedpriortc appraisal)to ensure any ossible adverse impactsareproperlyscreenedfo7b andmitigatedas iteeded. l C. Safeguard Policies Triggered (from PDS) Click on Policy name for brief summary of objectives, triggers and requirements Click on Policy reference number for full policy l I.C1. Table on applicability Yes No lBD Environmental Assessment (OP/BP/GP 4.01) [XI [1 I I Forestry (OP/GP 4.36) [X] 1] I I l Natural Habitats (OP/BP 4.04) [ ] [X] I _ _l Safety of Dams (OP/BP 4.37) [1 [X I Pest Management (OP 4.09) I] [X]I Involuntary Resettlement (OD 4.30) [ I IX] Indigenous Peoples (OD 4.20) 1] [XI I I Cultural Property (OPN 11.03) [ ] [XI I I Projects in Disputed Areas (OP/BP/GP 7.60) [] [Xl Projects on International Waterways (OP/BP/GP 7.50) [] [X] [I supportingthe proposedproject,the Bank does not intendtoprejudicethefinaldeter inationofthe *By parties'claimson the disputedareas Section II - Key Safeguard Issues and Their Management II.D. Summary of Key Safeguard Issues. Please fill in all relevant questions. If information is not available, describe steps to be taken to obtain necessary data. II.D.la. Describe any safeguard issues and impacts associated with the proposed proje t. Identify and describe any potential large scale, significant and/or irreversible impacts. As indicated above there are no potential environmental risks or impacts in the project area of influence. However, due to the nature of the project the Forestry (OP/GP 4.36) safeguard is triggered. II.D. lb. Describe any potential cumulative impacts due to application of more than one safeguard policy or due to multiple project component. n/a II.D. 1c Describe any potential long term impacts due to anticipated future activities in the pi oject area. n/a II.D.2. In light of 1, describe the proposed treatment of alternatives (if required) n/a II.D.3. Describe arrangement for the borrower to address safeguard issues During preparation it will be ensured that the recipient will carry out forestry operations in conformity with Forestry (OP/GP 4.36) II.D.4. Identify the key stakeholders and describe the mechanisms for consultation anl disclosure on safeguard policies, with an emphasis on potentially affected people. A Bank mission in March 2005 met with project sponsors Precious Woods (PW), the Nicar gua Designated National Authority (DNA) representative, Minister of Enviroimlent and with the May r of Cardenas. (They all expressed strong interest in supporting the project and Minister Arturo Harding emphasized the importance of the project for the country development plan and other environmental and sector strategies. According to the Mayor past forestry activity performed by PW has increased employme nt opportunities for the population in the area). E. SafeguardsClassification (select one). Category isdetermined by the highest impact in any policy. Or on basis of cumulative impacts from multiple safeguards. Whenever an individual safeguard policy istriggere the provisions of that policy apply. _ [ ] SI. - Significant, cumulative and/or irreversible impacts; or significant technical and inst tutional risks in management of one or more safeguard areas [X] S2. - One or more safeguard policies are triggered, but effects are limited in their impact and are technically and institutionally manageable []S . - No safeguard issues 3 SF - Financial intermediary projects, social development funds, community driven levelopment or similar projects which require a safeguard framework or programmatic approach to address safeguard issues. F. Disclosure Requirements ExpectedDate Actual Date EnvironmentalAssessment/Analysis/ManagementPlan: Date ofreceipt by the Bank .../1... .../... or N/A Date of "in-country" disclosure ... ...I/....!... or N/A Date of submission to InfoShop .../..... ..././... or N/A For category A projects, date of distributing the Executive Summary of the EA to the Exe utive Directors ... .../.. ... L....../ ResettlementAction Plan/Framework. Date ofreceipt by the Bank / ... ... / orN/A Date of"in-country" disclosure / ... ... 1/ or N/A Date ofsubmission to InfoShop ... / . /... or N/A l IndigenousPeoples DevelopmentPlan/Framework: Date of receipt by the Bank .. .. / I..... or N/A Date of "in-country" disclosure ... / / ... or N/A Date of submission to InfoShop ... / .../ I/ / or N/A PestManagementPlan: Date of receipt by the Bank ... / .../ I/ / or N/A Date of "in-country" disclosure .../ ../. .. / ... or N/A Date of submission to InfoShop ... / .../ // / or N/A Dam Safety ManagementPlan: Date of receipt by the Bank .../ ../. .../ ... or N/A Date of "in-country" disclosure .../ /... .../ ... / or N/A Date of submission to InfoShop .../ /... .../ ... / or N/A Ifin-country disclosure of any of the above documents is not expected, please explain why. n/a Signed andsubmittedby: Name , Date Task Team Leader: Armando E. Guzman< ,, Project Safeguards Specialist 1: Project Safeguards Specialist 2: Project Safeguards Specialist 3: _ Approved by: Name Date Regional Safeguards Coordinator Reidar K v Comments Sector Manager Abel Mejia A:-' 1 Comments N/A: Not Available n/a: Not applicable By supporting the proposed project, the Bank does not intend to prejudice the final determination of the parties' claims on the disputed areas (this disclaimer appears oniy for projects triggering OP/BP 8.60)