Document of The World Bank FOR OFFICIAL USE ONLY Report No: RES18959 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF THE ENHACING INSTITUTIONAL CAPACITIES ON REDD+ ISSUES FOR SUSTAINABLE FOREST MANAGEMENT IN THE CONGO BASIN PROJECT GRANT TF010038 APPROVED BY THE BOARD ON JULY 14, 2011 TO THE CENTRAL AFRICA FORESTS COMMISSION (COMIFAC) March 31, 2016 ENVIRONMENT AND NATURAL RESOURCES GLOBAL PRACTICE (GENDR) AFRICA This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. ABBREVIATIONS AND ACRONYMS AFD French Development Agency CEEAC Economic Community of Central African States CEFDHAC Conference on Dense Humid Forest Ecosystems of Central Africa CI Conservation International CIFOR Center for International Forest Research COMIFAC Central Africa Forests Commission FAO Food and Agriculture Organization FCPF Forest Carbon Partnership Facility FIP Forest Investment Program GEF Global Environment Facility GTC Groupe de Travail Climat, Climate Change Working Group GIZ German International Cooperation IPCC Intergovernmental Panel on Climate Change LULUCF Land Use, Land Use Change, and Forestry M&E Monitoring and Evaluation MRV Monitoring, Reporting, and Verification OFAC Central African Forest Observatory PMU Project Management Unit PSC Project Steering Committee REPALEAC Réseau des Populations Autochtones et Locales pour la gestion durable de forêts denses et humides d'Afrique centrale, Network for Indigenous People and Local Stakeholders for sustainable management of forests in Central Africa REPAR Réseau des Parlementaires pour la gestion durable des écosystèmes forestiers d'Afrique centrale, Network for Parliamentarians for the sustainable management of Central African forest ecosystems RESA Regional Environmental and Social Assessment SESA Strategic Environmental and Social Assessment SFM Sustainable Forest Management UNDP United Nations Development Program UNEP United Nations Environment Program UNFCCC United Nations Framework Convention for Climate Change Regional Vice President: Makhtar Diop Country Director: Ahmadou Moustapha Ndaye Senior Global Practice Director: Paula Caballero Practice Manager/Manager: Benoit Bosquet Task Team Leader: Loic Jean Charles Braune 2 REGIONAL ENHANCING INSTITUTIONAL CAPACITIES ON REDD+ ISSUES FOR SUSTAINABLE FOREST MANAGEMENT IN THE CONGO BASIN PROJECT CONTENTS A. SUMMARY 5 B. PROJECT STATUS 6 C. PROPOSED CHANGES 6 ANNEX 1: RESULTS FRAMEWORK AND MONITORING 10 ANNEX 2: LETTER FROM THE CLIENT 15 3 DATA SHEET Africa AFCC2/RI-Enhancing Institutional Capacities on REDD issues for Sustainable Forest Management in the Congo Basin (P113167) AFRICA Environment & Natural Resources Report No: RES18959 Basic Information Technical Assistance Project ID: P113167 Lending Instrument: Loan Regional Vice Makhtar Diop Original EA Category: Partial Assessment (B) President: Ahmadou Moustapha Country Director: Current EA Category: Partial Assessment (B) Ndiaye Senior Global Practice Paula Caballero Original Approval Date: 14-Jul-2011 Director: Practice Benoit Bosquet Current Closing Date: 31-Aug-2016 Manager/Manager: Loic Jean Charles Team Leader(s): Braune Borrower: Central African Forest Commission (COMIFAC) Responsible Agency: Restructuring Type Form Type: Full Restructuring Paper Decision Authority: Country Director Approval Restructuring Level 2 Level: Financing (as of 09-Mar-2016) Key Dates Approval Effectiveness Original Revised Project Ln/Cr/TF Status Signing Date Date Date Closing Date Closing Date P113167 TF-10038 Effective 02-Aug-2011 02-Aug-2011 30-Nov-2011 31-Aug-2016 31-Aug-2016 Disbursements (in Millions) % Origi Cancelle Disburse Undisbur Project Ln/Cr/TF Status Currency Revised Disburse nal d d sed d P113167 TF-10038 Effective USD 13.00 13.00 0.00 7.62 5.38 59 4 Policy Waivers Does the project depart from the CAS/CPF in content or in other significant Yes [ ] No [ X ] respects? Does the project require any policy waiver(s)? Yes [ ] No [ X ] A. Summary of Proposed Changes This Restructuring Paper seeks approval for an extension of the project closing date - accompanied by relevant adjustments in the work priorities, budget, and administration - in order to satisfactorily complete all planned activities to achieve the PDO. The proposed changes are listed below: (a) Extending the project closing date by 19 months, i.e. until March 31, 2018; (b) Reallocating USD175,000 from one Disbursement Category to the other, mainly to reflect the uncertainty regarding Gabon's decision whether to implement their country envelop for REDD+ readiness; (c) Confirming relevant adjustments in the work priorities, budget, and administration including reallocating the budget between the components, revising the deliverables related to the inclusion of civil society and revising the results framework to adjust some of the indicator targets and add new indicators. Change in Implementing Agency Yes [ ] No [ X ] Change in Project's Global Environmental Objectives Yes [ ] No [ X ] Change in Results Framework Yes [ X ] No [ ] Change in Safeguard Policies Triggered Yes [ ] No [ X ] Change of EA category Yes [ ] No [ X ] Other Changes to Safeguards Yes [ ] No [ X ] Change in Legal Covenants Yes [ ] No [ X ] Change in Loan Closing Date(s) Yes [ X ] No [ ] Cancellations Proposed Yes [ ] No [ X ] Change to Financing Plan Yes [ ] No [ X ] Change in Disbursement Arrangements Yes [ ] No [ X ] Reallocation between Disbursement Categories Yes [ X ] No [ ] Change in Disbursement Estimates Yes [ X ] No [ ] Change to Components and Cost Yes [ X ] No [ ] Change in Institutional Arrangements Yes [ ] No [ X ] Change in Financial Management Yes [ ] No [ X ] Change in Procurement Yes [ ] No [ X ] Change in Implementation Schedule Yes [ ] No [ X ] Other Change(s) Yes [ X ] No [ ] Appraisal Summary Change in Economic and Financial Analysis Yes [ ] No [ X ] Appraisal Summary Change in Technical Analysis Yes [ ] No [ X ] Appraisal Summary Change in Social Analysis Yes [ ] No [ X ] Appraisal Summary Change in Environmental Analysis Yes [ ] No [ X ] Appraisal Summary Change in Risk Assessment Yes [ ] No [ X ] 5 B. Project Status To date, the project has made significant progress in: (i) building national-level capacities on REDD+ and supporting sub-regional coordination on REDD+ issues, especially in respect to the UNFCCC negotiations; (ii) strengthening regional coordination on REDD+ in international fora; and (iii) improving scientific knowledge on the contributions of Central African forests to carbon sequestration and carbon stock. The PMU is implementing activities according to the plans approved by the Project Steering Committee (PSC), including organizing a regional event around the scientific collaboration for carbon measurement (sub-component 2.a), and planning subsequent national workshops. The PMU also collaborated with the agency for German International Cooperation (GIZ) to hold multiple events for the "Climate Change Working Group” (GTC), in support of the UNFCCC negotiation process. However, the awarding of firm contracts was significantly delayed due to the complexity of the contracts, subsequent lengthy negotiations, and challenges in convening the Procurement Committee and the various sub-committees at each step of the process. While the contracts have now been issued and signed, and activities are ongoing, these initial setbacks delayed project implementation by 19 months. Due to the nature of the project and the time required for implementation, it is not possible to make up for this delay within the current timeline. As a result, the Regional REDD+ Project was downgraded from Satisfactory to Moderately Satisfactory in terms of progress toward achieving the PDO; the same rating was given for overall implementation progress. Less than eight months before closing, total disbursement has reached about USD 7.6 million, or 59%. It should be noted, however, that disbursement over the last two years is well in accordance with work plans, and that committed funds total more than USD 1.5 million. Actual disbursements and commitments make up 70% of the grant total, reflecting significant progress in reaching the project’s objectives. In addition, an additional Technical Assistant (TA) has been hired to supervise the implementation of component 1a and 1b, as well as to assist in coordinating the policies being developed under component 3b. This additional resource has proven efficient to ensure the work program can be carried out effectively and on time. C. Proposed Changes Development Objectives/Results Project Development Objectives Original GEO The Project Development Objective is to strengthen the capacities of the Congo Basin countries on REDD+ issues and on forest carbon stocks measurements, in particular. Change in Project's Global Environmental Objectives Change in Results Framework Explanation: Regarding the PDO: the project will “strengthen the capacities of the Congo Basin countries on REDD+ issues” to help them (a) have a coordinated approach in the international fora such as the COPs (assuming coordinated is better than “one by one”), (b) have a better understanding of their stocks and for that they need carbon measurements and (c) have harmonized approaches in the various countries in order to get economy of scale, and share learnings more easily. Thus, the PDO indicators are already measuring progress along those three axes. It is proposed to complement them by assessing the quality of the capacity building that was provided by the project. For that purpose, a new PDO level indicator has been proposed to measure the satisfaction of the main 6 beneficiaries (key REDD+ actors). These beneficiaries are defined as being (i) the country negotiators (Focal point at UNFCCC), (ii) the countries’ head of the lead agency/coordination group for REDD+ when it exists, (iii)the beneficiaries from the trainings and (iv) the leaders of the national and regional CSO networks working on REDD+. Also, the targets for the indicators in the results framework have been revised to reflect the new closing date, schedule and project priorities. Specifically, the revised indicators need to reflect the time-bound objectives related to the UNFCCC negotiations; the involvement of national networks in formulating REDD+ policy and stakeholder participation. To this end, minor modifications of the existing Result Framework have been proposed, mostly related to the proposed closing date extension. Two indicators, measuring an objective that has been reached, will be dropped as there are no further activities planned for that purpose until the end of the project. In conclusion, the original scope and relevance of the project remains unchanged and the proposed changes do not imply further revisions to the original indicators. The following indicators are proposed to be added to the results framework: - Percentage of beneficiaries satisfied with the REDD+ negotiations at the international level and by the knowledge provided in the regional studies - Number of people registered and active on the Scientific platform (objective = 80) Financing Change in Loan Closing Date(s) Explanation: The Mid-Term Review concluded that an extension of about 18 months is required to ensure that the project objectives will be reached. The project is currently at a critical juncture where, to become successful, it should launch the last phases of implementation for the activities under component 2b and 1b, which cannot not be shorter than 18 months. Based on those conclusions, COMIFAC requested to the Bank an extension until March 31, 2018 (19 months). Therefore the proposed new closing date is March 31, 2018. The project will progressively phase out the activities and wind down the subcomponents, as their objectives are reached. This is expected to be the first and only extension. Ln/Cr/T Original Closing Current Closing Proposed Closing Previous Closing Status F Date Date Date Date(s) TF- Effective 31-Aug-2016 31-Aug-2016 31-Mar-2018 31-Aug-2016 10038 Reallocations Explanation: Because of political consideration over the REDD+ terminology, Gabon signed only a partial Implementation Agreement with the project. As a result, Gabon's envelop (USD350.000) for REDD+ Readiness (component 1c) cannot be used as long as the agreement is not signed. This situation has been discussed with Gabon and the situation may evolve at a later stage. In addition, the disbursement rate for this component is lower than for the rest of the project, even in the five other countries. Considering this situation and the time left for implementation, it is unlikely that all the six countries will disburse the entirety of their envelops. Pragmatically, the team and COMIFAC have discussed a small decrease of the allocation (8%) to anticipate a partial use of this category. This reallocation does not 7 prevent any country to use the full extent of its envelop – it is a technical change to reflect the component situation, not a political decision to reduce the envelop. Current Category of Disbursement % Ln/Cr/TF Currency Allocation Expenditure (Type Total) Current Proposed Current Proposed CON,TRN,OP,GDS Prt TF-10038 USD 10,900,000.00 11,075,000.00 100.00 100.00 1(a),1(b),2,3,4 CON,TRN,OP,GDS 2,100,000.00 1,925,000.00 100.00 100.00 pRT 1(c)-CG BASIN Designated Account 0.00 0.00 0.00 0.00 Designated Account 0.00 0.00 0.00 0.00 Total: 13,000,000.00 13,000,000.00 Disbursement Estimates Change in Disbursement Estimates Explanation: The activities under component 2, especially the core research activity on allometric equations, have faced delays. In addition, the challenging procurement procedures at the beginning of the project have delayed the signing of contracts, thus delaying the disbursement. A new disbursement schedule is proposed below to adjust to the new Closing Date. Fiscal Year Current (USD) Proposed (USD) 2012 880,000.00 300,000.00 2013 2,560,000.00 700,000.00 2014 3,610,000.00 2,500,000.00 2015 3,510,000.00 2,300,000.00 2016 2,040,000.00 2,300,000.00 2017 400,000.00 2,300,000.00 2018 0.00 2,300,000.00 2019 0.00 300,000.00 Total 13,000,000.00 13,000,000.00 Components Change to Components and Cost Explanation: The activities under component 2, especially the core research activity for the allometric equation, have faced logistical challenges during implementation. As this is the core and most important activity of the project, the budget is adapted in order to refocus the resources on this component and allow for smooth implementation in the field. Current Component Proposed Component Current Cost Proposed Action Name Name (US$M) Cost (US$M) Improving knowledge 4.70 4.70 No Change 8 and coordination on REDD+ in the Congo Basin Building technical capacities for measurement and 4.00 4.50 Revised monitoring of carbon stocks in the Congo Basin Forests Mainstreaming REDD+ Concept into 3.00 2.50 Revised sustainable forest management projects Project Management 1.30 1.30 No Change Total: 13.00 13.00 Other Change(s) Other Change(s) Explanation: The changes to the technical components are the following: - On Sub-component 1a: the activities were focusing on COP21, which successfully happened last December. As the component has served its purpose, very few activities will be planned for the remaining project time. The objective in terms of South-South exchanges has been downsized from 3 to 2 as the efficiency of this type of activities (mostly study tours and guests for workshops) has been questioned by the Client. In addition, the added-value of this project would be reduced since other more specific projects have already focused on establishing partnerships between the Congo Basin and other sub-Regions - On Sub-component 1b: The firm that had been contracted to implement this component has made unsatisfactory progress, despite CEFDHAC’s targeted efforts to improve the firm’s performance. The contract is now terminated. A new approach will be implemented with the support of a new staff in the Project team. The activity will focus on (i) consolidating CEFDHAC legitimacy as one of the main Regional platforms for Civil Society and (ii) building a network of the existing National REDD+ Platforms. - On Sub-component 3a: the Incubator served its purpose and this activity will not be renewed during the Project extension. The remaining funds will be used for component 2b, which is facing additional cost increases due to logistical challenges. - On Sub-component 3b: the number of Policy Notes have been decreased from 6 to 3 considering the existing work already launched in the various countries or the existing regional/global initiatives that already support knowledge sharing and guidance. Remaining funds will be used for component 2b, which is facing additional costs due to logistical challenges. 9 Results Framework ANNEX 1: Result Framework AFCC2/RI-Enhancing Institutional Capacities on REDD Project Project issues for Sustainable Forest Management in the Congo Restructuring Status: DRAFT Name: Basin (P113167) Stage: Team Requesting Leader(s) Loic Jean Charles Braune AFCC2 Created by: Loic Jean Charles Braune on 21-Apr-2015 Unit: : Product Responsible Global Environment Project GEN07 Modified by: Loic Jean Charles Braune on 25-Mar-2016 Line: Unit: Country: Africa Approval FY: 2012 Lending Region: AFRICA Technical Assistance Loan Instrument: Global Environmental Objectives Global Environmental Objective (from Project Appraisal Document): The Project Development Objective is to strengthen the capacities of the Congo Basin countries on REDD+ issues and on forest carbon stocks measurements, in particular. Results Core sector indicators are considered: Yes Results reporting level: Project Level Global Environmental Objective Indicators Status Indicator Name Core Unit of Measure Baseline Actual(Current) End Target Revised Coordinated submissions on a Number Value 0.00 7.00 8.00 future REDD+ mechanism to Date 15-Dec-2010 31-Dec-2015 31-Mar-2018 the international UNFCCC negotiations. Comment Change in the "end target date". The objective is to 10 Results Framework reach the end target by COP22 (December 2016). Also, the target has been increased from 4 to 8. Revised Milestones for the elaboration Text Value 0 2 4 of allometric equations specific Date 15-Dec-2010 31-Dec-2015 31-Mar-2018 to the Congo Basin achieved. Comment Field work has Change in the started in 3 "end target countries, about date". This to start in 2 more result is countries. expected to be reach by the end of the Project (new Closing date) Revised Technical guidelines on Number Value 0.00 0.00 2.00 prioritized REDD+ issues have Date 15-Dec-2010 31-Dec-2015 31-Mar-2018 been developed and approved by the PSC. Comment Change in the "end target date" and "End Target Value. This component has been downsized. The result is expected to be reached by the end of the Project (new Closing date) New Percentage of beneficiaries Percentage Value 56.00 56.00 80.00 11 Results Framework satisfied with the REDD+ Date 31-Jan-2015 31-Jan-2015 31-Mar-2018 negotiations at the international Comment Beneficiaries Based on the Mid Added as a new level and by the knowledge include 6 Term Review indicator to sharing provided in the Focal Points, 5 satisfaction complement the regional studies REDD+ survey existing Coordinators, indicators with a 10 civil society focus on representative beneficiary at national satisfaction and level, 4 a qualitative representatives assessment of of the the support Regional level provided to the (CEDHAC, countries on REPALEAC, REDD+ issues. REFAD, REJEFAC) and 2 representatives from COMIFAC (27 in total) Intermediate Results Indicators Status Indicator Name Core Unit of Measure Baseline Actual(Current) End Target No Change GTC meetings for Number Value 1.00 9.00 10.00 styrengthened policy-level Date 14-Jul-2011 31-Dec-2015 31-Aug-2016 coordination of REDD+ at regional level Comment Revised South-South exchanges for Number Value 0.00 1.00 2.00 strengthened knowledge Date 14-Jul-2011 31-Aug-2015 31-Mar-2018 exchange with other regions Comment Change in the "end target 12 Results Framework Value" from 3 to 2. This activity has been downsized. Other capacity building activities have been judged as more efficient. No Change Consultative meetings on Number Value 0.00 13.00 16.00 REDD+ under the CEFDHAC Date 14-Jul-2011 31-Dec-2015 31-Aug-2016 umbrella Comment Revised Direct project beneficiaries Number Value 0.00 940.00 1000.00 Date 14-Jul-2011 31-Dec-2015 31-Mar-2018 Comment Change in the "end target date". Also, the target has been increased from 600 to 1000. No Change Female beneficiaries Percentage Value 0.00 21.00 30.00 Sub Type Supplemental Revised A scientific platform is Yes/No Value No No Yes operational and supporting Date 14-Jul-2011 31-Dec-2015 31-Dec-2017 knowledge exchange amongst scientists. Comment The Platform has Change in the been created but "end target is not yet date". The accessible on the scientific Internet. platform should 13 Results Framework remain in place for the rest of the project, until the last trimester of implementation. New People active on the Scientific Number Value 0.00 60.00 platform Date 01-Jan-2015 31-Mar-2018 Comment New indicator to complement the previous one and measure the quality of the scientific platform. Revised Scientific reports on defined Number Value 0.00 1.00 8.00 allometric equations for the Date 14-Jul-2011 31-Dec-2015 31-Mar-2018 Congo Basin have been produced. Comment Scientific reports Change in the are expected after "end target date" the field work is to align with the completed. new Project end date. New Students - Master level or Number Value 0.00 6.00 30.00 higher - participating in the Date 01-Aug-2015 31-Dec-2015 31-Mar-2018 field work Comment When field Based on 6 work was students in 5 initiated countries Revised Countries, in which national Number Value 0.00 2.00 6.00 teams that have been trained Date 14-Jul-2011 31-Aug-2015 31-Mar-2018 and deployed to the field for data collection as per agreed Comment Change in the 14 Results Framework methodology for definition of "end target date" allometric equations. to align with the new Project end date. Marked for REDD+ pilot project Incubator Yes/No Value No Yes Yes Deletion in place and operational. Date 14-Jul-2011 31-Aug-2015 31-Aug-2016 Comment The Incubator has fulfilled its purpose and is no longer needed for the project extension. The contract was extended until December 2015 and then ended. Marked for REDD+ Project Developers Number Value 0.00 26.00 15.00 Deletion that received support or Date 14-Jul-2011 31-Dec-2015 31-Aug-2016 advisory services from the incubator Comment REDD+ Project The Incubator Developers has fulfilled its definition has purpose and is been redefined as no longer people with a needed for the concept or an project initiative for extension. The REDD+, even if contract was the project is not extended until yet formally December 2015 launched and then ended. 15 ANNEX 2: Request from COMIFAC 16 17