The World Bank Report No: ISR4834 Implementation Status & Results Congo, Democratic Republic of BCF - IBI Carbon Sink - Bateke (P096414) Public Disclosure Copy Operation Name: BCF - IBI Carbon Sink - Bateke (P096414) Project Stage: Implementation Seq.No: 1 Status: ARCHIVED Archive Date: 02-Jul-2012 Country: Congo, Democratic Republic of Approval FY: 2010 Product Line: Carbon Offset Region: AFRICA Lending Instrument: Implementing Agency(ies): Key Dates Board Approval Date 04-Aug-2009 Original Closing Date 31-Dec-2018 Last Archived ISR Date Effectiveness Date 04-Aug-2009 Revised Closing Date 31-Dec-2018 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Moderately Unsatisfactory Overall Implementation Progress (IP) Moderately Unsatisfactory Overall Risk Rating Implementation Status Overview By December 2011, around 1,500 hectares had been reforested under agroforestry systems, forestry plantations and assisted natural regeneration by NOVACEL. The project is currently facing some implementation challenges arising from an under-delivery of carbon credits, which, in turn, is related to : i) smaller overall planted area than originally planned; ii) lack of proper planting maintenance leading to higher than expected mortality rates; iii) overestimation of carbon sequestration rates in certain project strata due to lack of information of growth rates under these specific conditions. The WB project team and other partners (ORBEO and DANONE) are currently supporting NOVACEL in implementing a business restructuring plan to ensure the continuity of activities under these changed circumstances. Given the tight financial situation of NOVACEL, no new reforestation activities will take place for the time being. Instead, NOVACEL will focus on cassava harvesting and processing, and on maintenance of areas already planted.NOVACEL is also implementing the recommendations from a recently conducted organizational audit by PwC (financed by the BioCF), to strengthen its administrative and managerial systems. The BioCF will amend its ERPA from 500,000 Emission Reductions contracted until 2017, to 80,000 until 2017, to reflect the new expected sequestration by the project in the areas already planted. Public Disclosure Copy NOVACEL, with the support of the NGO Gi-Agro, continues to implement its social development program targeted at the local communities, including health and education activities Over 12% of carbon revenues have been used for this type of activities, as required in the ERPA. In February 2011, the project was registered under the Clean Development Mechanism by the UNFCCC, as one of the first reforestation projects to reach this milestone in Africa, and the first in Central Africa. In November 2011, the project prepared its first Monitoring Report, which presented detailed information on planting per stratum, as well as carbon sequestration figures, based on an inventory carried out by NOVACEL following the CDM methodological guidelines for monitoring. This report will be updated by late July 2012, to serve as the basis for the verification to be conducted by TuV-Sud in September 2012. Locations Page 1 of 2 The World Bank Report No: ISR4834 Country First Administrative Division Location Planned Actual Congo, Dem Rep Ville de Kinshasa Maluku Public Disclosure Copy Congo, Dem Rep Not Entered Bankana Key Decisions Regarding Implementation The BioCF has completed the first advance payment of Emission Reductions in February 2012.The project's CDM verification will be carried out by TuV-SuD, in the second half of 2012. The BioCF will amend its ERPA from 500,000 Emission Reductions contracted until 2017, to 80,000 until 2017, to reflect the new expected sequestration by the project in the areas already planted. Related Projects There are no related projects. Public Disclosure Copy Page 2 of 2