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 and Food Global Practice | Global Environment Project | Investment Project Financing | FY 2015 | Seq No: 11 | ARCHIVED on 16-Sep-2019 | ISR38047 | 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: 10-Apr-2018 Original Closing Date: 30-Dec-2019 Revised Closing Date: 30-Dec-2019 pdoTable Project Development Objectives Project Development 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 Project Development Objective been changed since Board Approval of the Project Objective? No Components Table 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 Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Moderate Moderate Implementation Status and Key Decisions The SPSCB/SPSBC Project has entered its last semester of implementation with its closing scheduled on December 30, 2019. The project continues to make good implementation progress toward achieving its stated objectives and results with most activities under all components already completed and the few ongoing ones to be completed before closing. This assessment is based on the findings of the implementation support mission conducted from July 18 to 25, 2019. The Project (totaling around US$28.97 million with a GEF co-financing of US$9.59 million) is focusing on a total of 12 protected areas (PAs) and their respective buffer zones in the Atlantic and Central-Eastern parts of the country. Activities 9/16/2019 Page 1 of 7 Public Disclosure Copy The World Bank Implementation Status & Results Report Sustainable Production Systems and Conservation of Biodiversity (P145621) are taking place in seven provinces (Bocas del Toro, Coclé, Colon, Chiriqui, Los Santos, Panama y Veraguas), two comarcas (Guna Yala and Ngabe-Bugle) and two indigenous peoples’ territories (Bribri and Naso-Teribe). Key progress achieved so far includes: i) 506,847 hectares (or 91 percent of the end target) of land brought under enhanced biodiversity conservation; (ii) 626 hectares (or 52 percent of the end target and up from 6.5 percent in December 2018) of landscape already certified by internationally/nationally recognized standards with certification work well underway toward completion in September 2019 for an additional 600 hectares (to total over 1,200 hectares of cocoa, plantain, and coffee plantations); iii) the Endowment Fund established one year ago with an initial capital of US$5.0 million (and now standing at US$11.7 M) to support sustainable management of PAs as part of a window of the broader and fully operating Fund for Water, Protected Areas and Forest; (iv) implementation of the National Biodiversity Information and Monitoring System (SNIMBD) in all 8 PAs targeted (or 100 percent of the end-target); (v) 30 subprojects (or 100 percent of the end target) supporting income-generating and biodiversity-friendly production and marketing system implemented by producer associations; (vi) completion of key analytical work and studies (including the review of the Financing Gap of the National Protected Area System); (vii) four business alliances with buyers for marketing of biodiversity-friendly products established with APRE, COBANA, COCABO and APOSOF (200 percent of the end target); and (viii) completion of priority activities of environmental plans in all 6 municipalities targeted. To date, the number of direct beneficiaries of SPSCB is standing at 118,490 (148 percent of the revised target). The national project team is coordinating effectively with local authorities in each of the 12 PAs targeted by the Project and is well engaged with local communities and with producer groups. The Project has less than 5 months until its closing on December 30, 2019 to complete the few activities and sub-projects still under implementation. This is doable if the current pace of execution is maintained in the coming months. Over the remaining period, MiAMBIENTE and the Project Implementation Unit will be developing the project completion report as well as a arrangements to ensure the sustainability of the project results (including productive sub-project investments and transfer of knowledge and biodiversity data generated to permanent entities of MiAmbiente, etc.) in the post-project period. The next and final implementation support mission is scheduled for November 2019. 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 -- Moderate Moderate Fiduciary -- Moderate Moderate Environment and Social -- Moderate Moderate Stakeholders -- Moderate Moderate Other -- Low Low Overall -- Moderate Moderate Results PDO Indicators by Objectives / Outcomes Conserve globally significant biodiversity through improved mgmt effectiveness of Protected Areas IN00728725 ►Areas brought under enhanced biodiversity protection (ha) (Hectare(Ha), Custom) Baseline Actual (Previous) Actual (Current) End Target 9/16/2019 Page 2 of 7 Public Disclosure Copy The World Bank Implementation Status & Results Report Sustainable Production Systems and Conservation of Biodiversity (P145621) Value 0.00 431,817.00 506,846.00 550,000.00 Date 01-May-2014 14-Dec-2018 25-Jul-2019 30-Dec-2019 91 percent of the end target. Project activities implemented to enhance biodiversity protection include: training of park rangers in 12 protected areas (with delivery of Park Ranger Diploma); demarcation (overall mapping of the territory including physical identification and signaling) to support the monitoring systems of three PAs; scientific monitoring to update the documentation regarding biodiversity; and Comments: strengthening of Park Ranger offices with equipment for fire monitoring and control; among others. Final progress with this indicator will be assessed using the final application of the GEF-Tracking Tool in November/December 2019 before project closing. Conserve globally significant biodiversity through biodiversity mainstreaming in buffer zones IN00728746 ►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 78.00 626.00 1,200.00 Date 01-May-2014 14-Dec-2018 25-Jul-2019 30-Dec-2019 52.2 percent of the end target and up from 7% back in December 2018 with 626 hectares having received the certification of organic products from ACERT (Autoridad de Control y Certificacion de Productos organicos de Panama) and/or biodiversity-friendly products from MiAmbiante (through the resolution DM-02-7-June 14, 2019, official Gazette No. 28801-B dated June 21, 2019. Furthermore, the Comments: processing of 600 hectares under the certification of Appellation of Origen is well advanced with completion expected by the end of September 2019. This would bring the cumulative value of the indicator to 1,226 Ha or slightly over 100 percent of achievement. Intermediate Results Indicators by Components Biodiversity and Sustainable Productive Landscapes IN00728748 ►Producer association groups implement at least 30 sub-projects (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 21.00 30.00 30.00 Date 01-May-2014 14-Dec-2018 25-Jul-2019 30-Dec-2019 100 percent of the end target. All 30 sub-projects supported by the project are currently under implementation by producer groups for the promotion of agroforestry systems (e.g. improvement of cocoa farm production through the implementation of good agricultural and environmentally friendly practices, Comments: using organic fertilization, natural shade harvesting, increased productivity to stop expansion of the agricultural frontier, etc.). Completion of all related activities are expected by the end of October 2019 ahead of the closing date. IN00728751 ►Business alliances with buyers for marketing of biodiversity-friendly products are established (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 4.00 4.00 2.00 Date 01-May-2014 14-Dec-2018 25-Jul-2019 30-Dec-2019 9/16/2019 Page 3 of 7 Public Disclosure Copy The World Bank Implementation Status & Results Report Sustainable Production Systems and Conservation of Biodiversity (P145621) 200 percent of the end target. Business partnerships have now been established with COCABO and COOBANA, cooperatives dedicated to the export of organic cacao (Swiss market, USA, other European countries) and organic banana (German market). Two new additional partnerships are now in place for Comments: commercialization with domestic supermarkets: APRE (organic coffee) and GORACE (organic horticulture and fruits). IN00728754 ►Number of municipalities that have implemented activities in their environmental plans (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 3.00 6.00 6.00 Date 01-May-2014 14-Dec-2018 25-Jul-2019 30-Dec-2019 100 percent of the end target. 6 municipalities have implemented activities of their Environmental Plans These are the municipalities of Boquete, Renacimiento, Tierras Altas Gualaca, San Lorenzo in the Province of Chiriqui that are collaborating in the implementation of their joint ecotourism subproject Comments: “Circuito del Café”. In addition, the Municipality of Chame has also recently completed and adopted its municipal environmental plan. IN00728756 ►Direct project beneficiaries (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 112,667.00 118,490.00 80,000.00 Date 01-May-2014 14-Dec-2018 25-Jul-2019 30-Dec-2019 148 percent of the end target of 80,000 (revised upward from 48,450 during the April 2018 MTR). The beneficiary population include beneficiaries of the productive sub-projects and of the municipal ones as Comments: well. IN00728757 Female beneficiaries (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 45.00 46.00 50.00 Sustainable Management of Protected Areas IN00728747 ►Endowment fund to support sustainable management of PAs established and operating (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 100.00 100.00 100.00 Date 01-May-2014 14-Dec-2018 25-Jul-2019 30-Dec-2019 1100 percent of the end project target. The Trust Fund for Water, Protected Areas and Forest Life (also known as the Super Fund which include also the GEF-supported Endowment Fund (EF) to enhance the sustainable management of PAs as one of its windows) was established on July 11, 2017 and celebrated recently the completion of its first year of operation. The initial capitalization of the EF has been made Comments: effective and already received contributions in a total amount of US$11.7 Million (well exceeding the initial target of at least US$5.0 M. The disbursement of the GEF contribution (US$1.5 M) was made effective on Oct 25, 2018. IN00728750 ►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 2.00 2.00 3.00 9/16/2019 Page 4 of 7 Public Disclosure Copy The World Bank Implementation Status & Results Report Sustainable Production Systems and Conservation of Biodiversity (P145621) Date 01-May-2014 14-Dec-2018 25-Jul-2019 30-Dec-2019 67 percent of end target. After some delays, two concessions (National Park Camino de Cruces and Gulf of Monyijo Wetland) with the University of Panama (UPAN) under Scientific Investigation schemes are now in place. A third concession (National Park Altos de Campana also with UPAN) is awaiting final Comments: autorization from MiAmbiente. A fourth concession (National Park Omar Torrijos with the NGO Vision Verde) is being processed under EcoTourism schemes. IN00728753 ►Number of PAs where the SNIMDB is implemented (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 3.00 6.00 8.00 8.00 Date 01-May-2014 14-Dec-2018 25-Jul-2019 30-Dec-2019 100 percent of the end target. 8 PAs (Volcan baru, La Amistad, Fortuna, San San Pond Sak, Altos Campana, Omar Torrijos, Camino de Cruces and Santa Fe) with Biodiversity reports and data integrated into the INaturalist-PA Plateform. Work is underway for the possible inclusion of an additional park Comments: ((Bosque Protecor Palo Seco) with completion scheduled in late September or early October 2019. This would bring to 9 the total number of PAs incorporated in the SNIMDB by the end of the Project. Knowledge Management, Training, and Communications IN00728749 ►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 45.00 55.00 50.00 Date 01-May-2014 14-Dec-2018 25-Jul-2019 30-Dec-2019 183 percent of the original end target of 30 and 110 percent of the revised end target of 50. Based on the current status of implementation of outreach activities and the additional ones under preparation, Comments: the end-target has been revised upward from 30 to 50 during the MTR. IN00728752 ►Analysis of financial gap for the entire PA system published (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 1.00 1.00 Date 01-May-2014 14-Dec-2018 25-Jul-2019 30-Dec-2019 100 percent of the end target. The final report of the study was shared with the Bank team during the mission. is currently being finalized (the final report is expected by the end of February 2019). Estimates indicate that the financial needs of the PAs under a basic management scenario are approximately Comments: US$16,7 million per year and goes up to US$27.4 million for an optimal management. The current financial allocation covers 40 percent of basic needs and the Endowment Fund could have the potential to cover an additional 30 percent. IN00728755 ►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 1.00 4.00 1.00 Date 01-May-2014 14-Dec-2018 25-Jul-2019 30-Dec-2019 9/16/2019 Page 5 of 7 Public Disclosure Copy The World Bank Implementation Status & Results Report Sustainable Production Systems and Conservation of Biodiversity (P145621) 400 percent of the end target. Original target achieved throught the certification of 78 hectares of Comments: organic coffee per Organic Panama certification in the province of Chiriqui and Veraguas was achieved. 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 9.59 0.00 100% 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 9/16/2019 Page 6 of 7 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. 9/16/2019 Page 7 of 7