Public Disclosure Copy The World Bank Implementation Status & Results Report Sustainable Production Systems and Conservation of Biodiversity (P145621) Sustainable Production Systems and Conservation of Biodiversity (P145621) LATIN AMERICA AND CARIBBEAN | Panama | Agriculture Global Practice | Global Environment Project | Investment Project Financing | FY 2015 | Seq No: 7 | ARCHIVED on 29-Nov-2017 | ISR29738 | Implementing Agencies: Ministerio de Ambiente (MIAMBIENTE), Ministerio de Economia y Finanzas Key Dates Key Project Dates Bank Approval Date:09-Feb-2015 Effectiveness Date:04-Feb-2016 Planned Mid Term Review Date:30-Mar-2018 Actual Mid-Term Review Date:-- Original Closing Date:30-Dec-2019 Revised Closing Date:30-Dec-2019 Global Development Objectives Global Environmental Objective (from Project Appraisal Document) The proposed global environmental objective is to conserve globally significant biodiversity through improved management effectiveness of the project protected areas and biodiversity mainstreaming in the buffer zones. Has the Global Environmental Objective been changed since Board Approval of the Project Objective? No Components Name Sustainable Management of Protected Areas:(Cost $15.16 M) Biodiversity and Sustainable Productive Landscapes:(Cost $6.81 M) Knowledge Management, Training, and Communications:(Cost $5.17 M) Project Management:(Cost $1.83 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Moderately Satisfactory  Moderately Satisfactory Overall Implementation Progress (IP)  Moderately Satisfactory  Moderately Satisfactory Overall Risk Rating  Moderate  Moderate Implementation Status and Key Decisions 11/29/2017 Public Disclosure Copy Page 1 of 10 Public Disclosure Copy The World Bank Implementation Status & Results Report Sustainable Production Systems and Conservation of Biodiversity (P145621) This ISR is based on the findings of the last Implementation Support Mission conducted September 25-29, 2017. The project was approved in February 2015, became effective in February 2016 and the first disbursement took place in July 2016. After startup delays, the project is advancing well. The main areas of progress in recent months include: (i) completed baseline studies for four protected areas to monitor the results and ongoing activities that will enhanced biodiversity protection, (ii) 50 park rangers have received specialized training to strength their capacity to preserve the protected areas, (iii) acquisition and utilization of specialized equipment (GPS, camera traps, compass, boats, engines, etc.) to support improved management, control function in commercial areas of project zones (Nargana and Damani Guariviara) and for forest firefighting; (v) four municipal environmental plans (up to 76,000 direct and indirect beneficiaries) and eleven sub projects (2,450 direct beneficiaries) are now designed and ready to start implementation; (vi) A total of 15 outreach activities have been done to promote the importance of biodiversity and country’s protected areas management system. In addition, the Institutional and technical arrangements of the Endowment Fund (EF) have been finalized and agreed upon. The EF will be a window of a newly established national fund “Fideicomiso de Agua, Areas Protegidas y Vida Silvestre” also known as the “Super Fund”. The Super Fund is a hybrid fund and its governance structure will be led by an independent Board and technical unit, in accordance to the guidelines and procedures following international best practices as described in the operational manual. The selection and contracting process to hire an internationally recognized Asset Manager (AM) to manage the EF’s assets has also been initiated. Nevertheless, with the closing date of the project just 24 months away (November 30, 2019), there is a need to further accelerate the pace of implementation of the project to make up for the initial implementation delays and to ensure that the project fully achieve its stated objectives and results. The Mid-Term Evaluation of the project is scheduled for the end of March, 2018. 11/29/2017 Public Disclosure Copy Page 2 of 10 Public Disclosure Copy The World Bank Implementation Status & Results Report Sustainable Production Systems and Conservation of Biodiversity (P145621) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  Moderate  Moderate Macroeconomic  --  Low  Low Sector Strategies and Policies  --  Moderate  Moderate Technical Design of Project or Program  --  Moderate  Moderate Institutional Capacity for Implementation and Sustainability  --  Low  Moderate Fiduciary  --  Moderate  Moderate Environment and Social  --  Moderate  Moderate 11/29/2017 Public Disclosure Copy Page 3 of 10 Public Disclosure Copy The World Bank Implementation Status & Results Report Sustainable Production Systems and Conservation of Biodiversity (P145621) Stakeholders  --  Moderate  Moderate Other  --  Low  Low Overall  --  Moderate  Moderate Results Global Environmental Objective Indicators PHINDGEOTBL  Areas brought under enhanced biodiversity protection (ha)(Hectare(Ha), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 194,075.00 550,000.00 Date 01-May-2014 23-May-2017 29-Sep-2017 30-Dec-2019 Comments 35 percent of the end target. Park Rangers in 12 protected areas have been trained (including delivery of Park Ranger Diploma) in the areas of environmental and natural resource management, environmental sustainability, reporting, use of specialized equipment (GPS, compass, camera traps, forest fire fighting, motor boats, etc.). Further progress with this indicator will be assessed using the application of the GEF- Tracking Tool at the time of the Mid-term review planned in late March or early April 2018. PHINDGEOTBL  Landscapes certified by internationally or nationally recognized environmental standards that incorporate biodiversity considerations (ha)(Hectare(Ha), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 1,200.00 Date 01-May-2014 09-Feb-2016 29-Sep-2017 30-Dec-2019 Comments To be assessed at the time of the Mid-term review planned during the second half of FY18. Investments have been designed and are under implemented for the first 763 hectares in the process of certification. The formulation process of sub projects for the certification for about 500 additional hectares is being initiated. The certification process includes cocoa, coffee and plantain plantations. Due to the nature of the certification process (eg, organic, rain forest, fair trade, green seal), the final stage of actually obtaining certification of the first tranche of the 1,200 hectares is expected to start during the second half of 2018. Overall Comments 11/29/2017 Public Disclosure Copy Page 4 of 10 Public Disclosure Copy The World Bank Implementation Status & Results Report Sustainable Production Systems and Conservation of Biodiversity (P145621) Intermediate Results Indicators PHINDIRITBL  Endowment fund to support sustainable management of PAs established and operating (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 25.00 100.00 Date 01-May-2014 -- 29-Sep-2017 30-Dec-2019 Comments 25 percent of the end project target. The Trust Fund for Water, Protected Areas and Forest Life (also known as the Super Fund) was established on July 11, 2017 through Executive Decree 69. The Endowment Fund to enhance the sustainable management of PAs as called for under component 1 of the GEF-funded project will be set up as one window under the Super Fund. The institutional arrangements for the operation have been defined and approved. The start of operations of the Board and the Technical-Administrative Unit is expected to begin in the first quarter of 2018. The initial capitalization of the fund by the Government (US $ 2 million) is expected to be effective before December 31, 2017. PHINDIRITBL  Number of operating concessions for administration or services to support the management of 3 PAs (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 3.00 Date 01-May-2014 23-May-2017 29-Sep-2017 30-Dec-2019 Comments Two concessions (National Park Division General Omar Torrijos and National Park Altos de Campana) under Ecotourism schemes are well under preparation. Their formalization is expected in the first half of 2018. PHINDIRITBL  Number of PAs where the SNIMDB is implemented (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 3.00 0.00 4.00 8.00 Date 01-May-2014 23-May-2017 29-Sep-2017 30-Dec-2019 Comments 11/29/2017 Public Disclosure Copy Page 5 of 10 Public Disclosure Copy The World Bank Implementation Status & Results Report Sustainable Production Systems and Conservation of Biodiversity (P145621) 50 percent of the end target. To date, the implementation of Biological Monitoring has been initiated in 4 protected areas. In 2018, two additional protected areas (Cerro Hoya National Park and Altos de Campana National Park) will be incorporated into the National Biodiversity Information and Monitoring System. In 2018, monitoring will be carried out in the areas where sampling was carried out in 2017 and in the two additional APs to be added. PHINDIRITBL  Producer association groups implement at least 30 sub-projects (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 11.00 30.00 Date 01-May-2014 23-May-2017 29-Sep-2017 30-Dec-2019 Comments 37 percent of the end target. Nine producer groups are each implementing nine subprojects for the promotion of agroforestry systems (e.g. improvement of cocoa farm production through the implementation of good agricultural and environmentally friendly practices, using organic fertilization, natural shade harvesting, increased productivity to stop expansion of the agricultural frontier, etc.) and that have received their first disbursement to start of implementation. 2 additional sub projects are scheduled to receive their first disbursement by December 2017. In addition, a total of 19 sub-projects are in the design process and are expected to be approved by June 30, 2018 and to start implementation shortly after. PHINDIRITBL  Two business alliances with buyers for marketing of biodiversity-friendly products are established (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 2.00 2.00 Date 01-May-2014 -- 29-Sep-2017 30-Dec-2019 Comments 100 percent of the end target. Business partnerships established with COCABO and COOBANA, cooperatives dedicated to the export of cacao (Swiss market, USA, other European countries) and banana (German market). It is planned to establish two additional alliances for coffee and coconut marketing by the end of June 2018. 11/29/2017 Public Disclosure Copy Page 6 of 10 Public Disclosure Copy The World Bank Implementation Status & Results Report Sustainable Production Systems and Conservation of Biodiversity (P145621) PHINDIRITBL  Number of municipalities that have implemented activities in their environmental plans (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 6.00 Date 01-May-2014 -- 29-Sep-2017 30-Dec-2019 Comments 0 percent of the end target. A total of 4 plans have been designed and the 4 subprojects resulting from these plans are expected to begin implementation in the first quarter of 2018. The 2 additional plans are in the design process and their design is expected to be finalized in November 2017. PHINDIRITBL  Direct project beneficiaries (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 37,149.00 48,450.00 Date 01-May-2014 -- 29-Sep-2017 30-Dec-2019 Comments 76 percent of the end target. The current beneficiary population is the result of interventions in the Municipalities of Capira and Chame. PHINDIRITBL  Female beneficiaries (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 48.00 50.00 11/29/2017 Public Disclosure Copy Page 7 of 10 Public Disclosure Copy The World Bank Implementation Status & Results Report Sustainable Production Systems and Conservation of Biodiversity (P145621) PHINDIRITBL  Number of outreach or educational activities to promote the benefits of biodiversity and the public’s role in conservation (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 6.00 15.00 30.00 Date 01-May-2014 23-May-2017 29-Sep-2017 30-Dec-2019 Comments 50 percent of the end target. Two additional outreach activities are scheduled before the end of 2017, with 7 more in 2018. PHINDIRITBL  Analysis of financial gap for the entire PA system published (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 0.00 Date 01-May-2014 23-May-2017 29-Sep-2017 30-Dec-2019 Comments The terms of reference for the Financial Gap Analysis are being finalized. Submission to Bank for no objection is expected before December 15, 2017, and the final product is to be finalized within the first half of 2018. PHINDIRITBL  At least one biodiversity-friendly product (i.e., coffee, cacao, orange, or banana) receives bio-labels and/or denomination of origin. (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 1.00 Date 01-May-2014 23-May-2017 29-Sep-2017 30-Dec-2019 Comments One organization of coffee producers with high potential for the certification of their product has already been identified through the investments to be implemented under the approved subprojects. The certification is a lengthy process and the completion of the certification for at least one eligible product is expected in late 2018 or early 2019. Overall Comments 11/29/2017 Public Disclosure Copy Page 8 of 10 Public Disclosure Copy The World Bank Implementation Status & Results Report Sustainable Production Systems and Conservation of Biodiversity (P145621) Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P145621 TF-18972 Effective USD 9.59 9.59 0.00 2.90 6.69 30% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P145621 TF-18972 Effective 09-Feb-2015 09-Jul-2015 04-Feb-2016 30-Dec-2019 30-Dec-2019 Cumulative Disbursements Restructuring History Level 2 Approved on 21-Jul-2015 11/29/2017 Public Disclosure Copy Page 9 of 10 Public Disclosure Copy The World Bank Implementation Status & Results Report Sustainable Production Systems and Conservation of Biodiversity (P145621) Related Project(s) There are no related projects. 11/29/2017 Public Disclosure Copy Page 10 of 10