The World Bank Coral Reef Rehabilitation and Management Program- Coral Triangle Initiative (COREMAP-CTI) (P127813) REPORT NO.: RES32268 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF CORAL REEF REHABILITATION AND MANAGEMENT PROGRAM- CORAL TRIANGLE INITIATIVE (COREMAP-CTI) APPROVED ON FEBRUARY 21, 2014 TO REPUBLIC OF INDONESIA ENVIRONMENT & NATURAL RESOURCES GLOBAL PRACTICE EAST ASIA AND PACIFIC REGION Regional Vice President: Victoria Kwakwa Country Director: Rodrigo A. Chaves Senior Global Practice Director: Karin Erika Kemper Practice Manager/Manager: Ann Jeannette Glauber Task Team Leader: Dinesh Aryal 1 The World Bank Coral Reef Rehabilitation and Management Program- Coral Triangle Initiative (COREMAP-CTI) (P127813) ABBREVIATIONS AND ACRONYMS BAPPENAS Badan Perencanaan Pembangunan Nasional (Indonesian Ministry of National Development Planning) BKP Badan Pemeriksa Keuangan (Audit Board of the Republic of Indonesia) COREMAP-CTI Coral Reef Rehabilitation and Management Program - Coral Triangle Initiative CPDET Center for Planner’s Development, Education and Training DDRG Demand-driven Research Grant DA Designated Account EAFM Ecosystem Approach to Fisheries Management ESSF Environmental and Social Safeguards Framework ESHS Environmental, Social, Health and Safety FM Financial Management GEF Global Environment Facility GOI Government of Indonesia IBRD International Bank for Reconstruction and Development ICCTF Indonesian Climate Change Trust Fund ICZM Integrated Coastal Zone Management IFR Interim Financial Report IPPF Indigenous Peoples Planning Framework KKPD Kawasan Konservasi Perairan Daerah (Sub-national Marine Protected Area) KKPN Kawasan Konservasi Perairan Nasional (National Marine Protected Area) KPPN Kantor Pelayanan Perbendaharaan Negara (State Treasury Office) LARAP Land Acquisition and Resettlement Policy Action Plans LARPF Land Acquisition and Resettlement Policy Framework LIPI Indonesian Institute of Sciences LKPP Lembaga Kebijakan Pengadaan Barang/Jasa Pemerintah (National Public Procurement Agency) MCA Marine Conservation Area MMAF Ministry of Marine Affairs and Fisheries MOF Minister of Finance MPA Marine Protected Area NCB National Competitive Bidding NGO Non-Governmental Organization NPOA National Plans of Action PDO Project Development Objective 2 The World Bank Coral Reef Rehabilitation and Management Program- Coral Triangle Initiative (COREMAP-CTI) (P127813) PIU Project Implementation Unit PMO Project Management Office POKMASWAS Kelompok Pengawasan berbasis Masyarakat (community surveillance groups) RCO Research Center for Oceanography SEA Sustainable Enterprise Alliance SPSE Sistem Pengadaan Secara Elektronik (GOI e-procurement system) TA Technical Assistance ULP Unit Layanan Pengadaan (BAPPENAS procurement service unit) WB World Bank 3 The World Bank Coral Reef Rehabilitation and Management Program- Coral Triangle Initiative (COREMAP-CTI) (P127813) BASIC DATA Product Information Project ID Financing Instrument P127813 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 21-Feb-2014 31-Dec-2020 Organizations Borrower Responsible Agency Indonesian Institute of Science (LIPI),Indonesian Ministry Republic of Indonesia of National Development Planning (BAPPENAS) Project Development Objective (PDO) Original PDO To institutionalize the COREMAP approach of a viable, decentralized and integrated framework for sustainable management of coral reef resources, associated eco-systems and bio-diversity for the welfare of the communities in the selected districts of the respective provinces in Indonesia. Current PDO To strengthen institutional capacity in coastal ecosystems monitoring and research to produce evidence-based resource management information. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IBRD-83360 21-Feb-2014 17-Mar-2014 05-Jun-2014 31-Dec-2020 47.38 24.06 23.32 TF-15470 17-Mar-2014 17-Mar-2014 05-Jun-2014 30-Jun-2019 10.00 4.82 5.18 4 The World Bank Coral Reef Rehabilitation and Management Program- Coral Triangle Initiative (COREMAP-CTI) (P127813) Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING A. Background 1. The COREMAP-CTI (the "Project") was approved on February 21, 2014 with an IBRD loan of US$47.38 million and a GEF grant of US$10 million, funded through the GEF Biodiversity and International Waters Focal Areas. The Project became effective on June 5, 2014 and has successfully implemented activities towards its objectives. By 2017, however, two institutional changes challenged implementation as originally envisaged: (i) the enactment of Law No. 23/2014, which dramatically altered the marine spatial planning landscape by shifting management authority over coastal waters from district- to provincial-levels of government;1 and (ii) a decision by the Ministry of Marine Affairs and Fisheries (MMAF) to exit the Project as COREMAP-CTI executing agency due to changes in the Ministry's strategic priorities, and the subsequent decision to no longer access external funds. 2. In response, and at the request of the Government of Indonesia (GOI), a first-order restructuring was processed in June 2017. The executing agency for IBRD-financed activities was shifted from MMAF to the Indonesian Institute of Sciences (LIPI),2 with associated modifications to the PDO, activities, costs, and results framework to ensure alignment with LIPI's scientific and research mandate. Revisions were also made to implementation, financial management, procurement and disbursement arrangements; and the closing date was extended by 18 months. At the time of this first restructuring, US$15.8 million of the IBRD loan and US$4.82 million of the GEF grant had been disbursed. Due to internal GOI budget cycle timelines, which conflicted with GEF Council approval timelines, the restructuring was not processed for the GEF-financed activities at the same time. GEF-financed activities were put on hold with an agreement to proceed with a further restructuring of these once the revised IBRD-financed activities were underway.3 B. Project Status 1 Law No. 23/2014 shifts management authority over coastal waters (within 12 nautical miles of the coast) from district to province. COREMAP originally focused on institutionalizing and strengthening decentralized coral reef management at the district level; issuance of this law necessitated a change in project structure, institutional and financial arrangements to reflect the fact that decentralized coral reef management would now be under the purview of provincial governments. 2LIPI is the nation’s scientific authority and biggest research institution with an annual budget of around US$ 89 million and more than 30 research centers. Its vision is “to become a world class scientific institute and advance scientific research, development and application to increase national competitiveness”. It undertakes substantial research on marine and coastal issues. LIPI was the implementing agency for the first phase of COREMAP and implemented elements of the second phase. It has a long history of successfully managing externally funded project including those financed by the WB and GEF. 3The changes necessitated seeking GEF Council approval and CEO re-endorsement for use of the remaining GEF grant funds. It was agreed with the GOI that the remaining GEF grant fund balance could only be used once formal re-endorsement was obtained. 2 The World Bank Coral Reef Rehabilitation and Management Program- Coral Triangle Initiative (COREMAP-CTI) (P127813) 3. Since the June 2017 restructuring, the Project has made important progress against its revised objectives, which aim to deliver national and global environmental benefits through monitoring and research activities. Among other achievements, LIPI has (i) conducted monitoring of coral reef health at 22 sites; (ii) certified 148 surveyors and assessors in coastal ecosystems monitoring; (iii) launched the national Coral Reef Health Index;4 (iv) trained 126 researchers in coastal ecosystems research techniques; (v) launched a demand-driven grants program for marine-related research; and (vi) completed infrastructure upgrades of three coastal monitoring and research facilities. At the end of February 2019, disbursements under the IBRD loan stood at US$24.06 million, with a remaining balance of US$23.32 million. The Project’s progress in achieving the development objectives and implementation progress are rated as satisfactory, and Project management is rated as satisfactory (Implementation Status and Results Report of December 2018). The most recent Project audit reports for the IBRD loan and GEF grant (2017) were received with disclaimer and clean opinion, respectively. LIPI and MMAF agreed to an audit follow-up action plan to resolve the issues causing the disclaimer opinion. The action plan was approaching completion as of May 1 2019, as part of the 2018 audit by BKP, the national audit authority. C. Rationale for Restructuring As implementation of IBRD-financed activities has been progressing well, the GOI has requested the World Bank's support to restart use of unexpended GEF-resources (in the amount of US$6.22 million) through this second restructuring5. As was initially intended, the proposed restructured Project aims to improve management effectiveness of priority coral reef and associated coastal ecosystems. While GEF activities will remain similar to their original design, revisions are proposed to ensure their alignment with the new operating environment, namely the legal shift in authority over coastal waters from district- to provincial-levels of government, and MMAF's exit as COREMAP-CTI executing agency. In addition, there has been successful institutionalization of some elements of the COREMAP-CTI approach within MMAF. These include: (i) annual Marine Protected Area (MPA) management effectiveness score card assessments; (ii) implementation of national strategic action plans for threatened species; (iii) a strengthened legal basis for rights-based coastal resources management; and (iv) implementation of an ecosystem approach for sustainable fisheries management6. As a result, several activities originally planned under COREMAP-CTI for GEF-financing are already being implemented by MMAF (supported with their own resources) notwithstanding the Ministry's decision to refrain from further direct program implementation. The proposed restructuring will ensure that remaining GEF-financed activities, together with activities financed by IBRD and implemented by LIPI, will build on and complement these ongoing efforts by MMAF. 4. The proposed modifications are relatively minor.7 The most important change is the required shift in executing agency, which like the IBRD-financed activities, will no longer be undertaken by MMAF. GEF-financed activities will instead be undertaken by the Ministry of National Development Planning (BAPPENAS), which will be an executing agency Indonesia has assessed coral reef status as percent of hard coral cover. This metric does not account for the variety of reef habitats that 4 Historically occur naturally. LIPI has worked with experts at the University of Queensland to develop a health index that considers coral, seagrass and mangrove habitat as well as macrobenthos and fish assembles, to provide robust, multi-dimensional measures of ecosystem health. 5 Request letter from MOF, dated November 29, 2018. 6The 2015-2019 Strategic Plan for the Directorate General for Management of Marine Areas of MMAF includes dedicated performance indicators and budget allocations, confirming MMAF's commitment to these elements of the COREMAP-CTI approach, including maintaining and evaluating effective management for all thirteen COREMAP-CTI MPAs. 7 However, for GEF purposes the proposed modifications still required a three-month review by the GEF Council. 2 The World Bank Coral Reef Rehabilitation and Management Program- Coral Triangle Initiative (COREMAP-CTI) (P127813) alongside LIPI. The activities undertaken by each executing agency aligns with their respective institutional mandates and proficiencies for efficient delivery of outputs. There are a range of associated revisions described in detail below. II. DESCRIPTION OF PROPOSED CHANGES 5. Proposed revisions include: (i) adjusting the Project Development Objective (PDO) to incorporate “improve management effectiveness of priority coastal ecosystems” (reflecting the focus of the restarted GEF-financed activities) (ii) changing the executing agency for all GEF-financed activities from MMAF to BAPPENAS, and changing the executing agency for IBRD-financed activities related to scholarships from LIPI to BAPPENAS. In addition; (iii) including a demand- driven grants mechanism to support on-the-ground management activities through experienced and established NGOs and other eligible organizations; (iv) adjusting the component and subcomponent structure and titles; (v) revising project activities to be consistent with the updated PDO and implementation arrangements, implementation progress to date, and government priorities including MMAF’s strategic and policy frameworks; (vi) modification of financial management, procurement, and disbursement arrangements, to reflect the changes in executing agencies; and (vii) an 18-month extension of the closing date. a) Revision of PDO 6. Consistent with their original goal, the restarted GEF-financed activities aim to improve management of coral reef habitats and other coastal ecosystems at the local level. It is proposed that the current PDO, to “strengthen institutional capacity in coastal ecosystems monitoring and research to produce evidence-based resource management information”, is augmented with an additional statement to become “strengthen institutional capacity in coastal ecosystems monitoring and research to produce evidence-based resource management information, and to improve management effectiveness of priority coastal ecosystems”. b) Revision of implementation arrangements 7. In the June 2017 restructuring, the executing agency for IBRD-funded activities was changed from MMAF to LIPI. Given LIPI's focus on research (see footnote 2), the additional executing agency of BAPPENAS, specifically one of its working units, the Indonesian Climate Change Trust Fund (ICCTF)8, is instead proposed for execution of GEF-financed activities. These activities are more focused towards on-ground management efforts than research. 8. Reporting directly to the President, BAPPENAS serves as the key government body responsible for formulating national development plans, assisting the President and regional governments to design development strategies, and evaluating their implementation. BAPPENAS' functions include: (i) strengthening planning capacity at the central and regional level; (ii) facilitating cross-sector participatory planning via cooperation with universities, professional organizations, and civil society organizations; (iii) cross-sector coordination and policy formulation; and (iv) planning, monitoring and evaluating projects financed via foreign grants and loans. The working unit ICCTF-BAPPENAS is a national 8 Or any successor thereto, as is the case for all PIUs in the Project. 3 The World Bank Coral Reef Rehabilitation and Management Program- Coral Triangle Initiative (COREMAP-CTI) (P127813) trust fund entity9 – established through Ministerial Decree No. 3/2013 – and an important GOI instrument for marine conservation within the framework of climate change mitigation and adaptation. While it would be the first time for ICCTF- BAPPENAS to implement activities financed by IBRD or GEF, it is currently effectively managing funds in the amount of US$14 million, comprising grant contributions from USAID, the UK Department for International Development (DFID), the Danish International Development Agency (DANIDA), and others. ICCTF-BAPPENAS's track record includes implementing a portfolio of 63 projects across Indonesia, with a quarter of the currently 42 active projects having a focus on marine conservation and fisheries. 9. At the request of GOI, an additional change in executing agency is proposed for IBRD-financed activities relating to scholarships. Specifically, the awarding of 20 international master’s degree scholarships for qualified technical staff of national and sub-national coastal ecosystems monitoring and management units across Indonesia are also proposed for implementation by BAPPENAS, specifically via its Center for Planner’s Development, Education and Training (CPDET- BAPPENAS) 10. The Center is a secretariat agency – established through Ministerial Decree No. 4/2014 – with a mandate to select, prepare, and place, both at home and abroad, participants for education and training. This change ensures that scholarships are implemented by an agency with dedicated expertise in this area, taking advantage of BAPPENAS's involvement in the Project to ensure implementation efficiency in this sub-component. All other IBRD-financed activities remain with LIPI. 10. Updates to coordination mechanisms are proposed to ensure that the two implementing agencies (and specifically the three Project Implementing Units (PIUs) within RCO-LIPI11, ICCTF-BAPPENAS, and CPDET-BAPPENAS), efficiently deliver a unified Project. The composition of the National Steering Committee, responsible for overall policy direction and general oversight of the Project, will be updated to include representation from across the implementing agencies and relevant associated ministries. A Technical Committee will provide technical coastal ecosystems monitoring, research, and management advice to the Steering Committee and to the PIUs. While the PIUs will be responsible for the implementation of their respective parts of the Project, a Project Management Office (“PMO”) will be responsible for coordinating the PIUs, preparing unified Project reports, and facilitating communications between the National Steering Committee, the Technical Committee and the Bank. c) Revision of implementation modalities 11. This revised implementation arrangement allows for delivery of GEF-financed activities via sub-grants, competitively awarded by ICCTF-BAPPENAS, to experienced NGOs and other eligible organizations for defined activities and work packages. The eligible organizations will be required to show a verifiable track record of successfully delivering projects, contracts, and/or grants with a value greater than US$0.7 million, as well as demonstrated experience in line with the technical and geographic focus of the Terms of Reference. It is expected that these sub-grants will allow 9ICCTF is governed by the Board of Trustees, which formulates principles and policies to govern ICCTF’s activities and operations, approves the work program, adopts the budget, reviews the structure and composition of staffing and performs other statutory functions. 10 See footnote 8. 11 See footnote 8. 4 The World Bank Coral Reef Rehabilitation and Management Program- Coral Triangle Initiative (COREMAP-CTI) (P127813) implementation at the local community level. ICCTF-BAPPENAS has extensive experience with sub-grant delivery mechanisms. d) Revision of Project design 12. A revised component structure is proposed to ensure consistency with the updated PDO and revised implementation arrangements. Subcomponents will be recategorized for a clear division of activities between executing agencies, in line with their mandates and areas of expertise, as per the proposed implementing arrangements. Other revisions ensure progress to date and situational changes in external policy and legislative context is appropriately reflected. Proposed revisions are as follows: (i) Components 1, 2, and 4, which are entirely IBRD-financed, will remain under implementation by LIPI, except for subcomponent 1.2. (scholarships; see paragraph 9). (ii) A new Component 3, “management of priority coastal ecosystems,” is proposed, and will include the reintroduced GEF-financed activities. Component 3 will contribute to strategic objectives for improved coastal ecosystem management as defined by MMAF and will complement the ecosystems monitoring (Component 1) and research (Component 2) aspects of the Project. The new Component 3 contains three subcomponents: (i) management effectiveness of marine conservation areas and conservation of threatened species; (ii) integrated coastal zone planning; and (iii) community stewardship of coastal resources. Component 3 activities will be fully implemented by ICCTF-BAPPENAS. (iii) IBRD-supported activities previously contained under “Component 3: strengthening institutional systems for coastal ecosystem research and monitoring” will be reallocated to Components 1 and 2, with no change to associated budgets or implementation arrangements. e) Revisions to Project activities 13. Activities to be financed with the remaining GEF resources, reintroduced under the new Component 3, will be used as planned under the original COREMAP-CTI design with minor revisions. Revisions will help concentrate activities geographically and thematically. By targeting support towards improving the effective management of four priority MPAs that are rich in biodiversity but characterized by high poverty, poor human development levels, and high dependency on natural resources, the envisaged impact of the Project will be increased relative to the earlier Project configuration. The remaining IBRD resources will continue to be used as planned under the June 2017 restructuring, however, the longer timeline required to facilitate the GEF-financed activities will also allow for increased ambition and scale-up of some IBRD- financed activities (reflected in the proposed results framework). 14. Table 1 provides an overview of changes proposed to the component structure and activities in comparison to COREMAP-CTI’s original design and to the June 2017 restructuring design. Table 2 shows the proposed revisions to funding allocations. Table 1: Proposed Project Component Structure and Activities in Comparison with Original COREMAP-CTI Design and June 2017 Restructured Design 5 The World Bank Coral Reef Rehabilitation and Management Program- Coral Triangle Initiative (COREMAP-CTI) (P127813) Original COREMAP-CTI Design Revised COREMAP-CTI Design Proposed COREMAP-CTI Design (as per PAD) (as per June 2017 Restructuring) (as per 2019 Restructuring) (Changes in comparison to June 2017 Restructuring highlighted in parentheses) Component 1: Institutional Strengthening Component 1: Institutional Strengthening Component 1: Institutional Strengthening for Decentralized Coral Reef Management for Coastal Ecosystems Monitoring for Coastal Ecosystems Monitoring Sub-component 1.1: Strengthening and Sub-component 1.1a: Support for robust Sub-component 1.1: Support for robust expansion of the COREMAP approach coastal ecosystems monitoring coastal ecosystems monitoring (Additional monitoring sites added)12  Mainstream and embed a decentralized Conduct comprehensive and scientifically Conduct comprehensive and scientifically approach to coral reef ecosystem robust coastal ecosystems monitoring surveys robust coastal ecosystems monitoring surveys management within the local government in 18 specific Eastern Indonesia locations: in 39 locations nationwide: and village program of activities in the 9 locations in Eastern Indonesia (Pangkep,  8 locations in eastern Indonesia villages of the selected districts. Selayar, Sikka, Buton Induk, Buton Tengah, (Pangkep, Selayar, Sikka, Buton,  Raise awareness through an outreach Buton Selatan, Wakatobi, Biak, Raja Wakatobi, Biak, Raja Ampat, Merauke) program to enable adoption of the Ampat)  9 locations in western Indonesia (Sabang, COREMAP approach in non-COREMAP  8 locations in Western Indonesia Mentawai, Tapanuli Tengah, Nias Utara, villages, including support for a learning (Tapanuli Tengah, Nias Utara, Mentawai, Bintan, Batam, Lingga, Natuna, Derawan) network of coastal mayors and village Batam, Bintan, Lingga, Natuna, Sabang)  11 MPAs in eastern Indonesia (TWP heads informed by COREMAP experience  7 MPAs in Eastern Indonesia (Kapoposang, Kapoposang, TNP Laut Sawu, SAP Kep. and personnel exchange visits. Sawu/Kupang, Aru Tenggara, Banda, Kep. Aru Tenggara, TWP Laut Banda, SAP  Link the Project with country-wide CTI Wayag Sayang (Raja Ampat), SAP Raja Waigeo Barat, SAP Raja Ampat, TWP activities. Ampat, Padaido) Padaido, Komodo, Sumbawa/Moyo,  Transform village level Coral Resources  4 locations responding to national Takabonerate, Teluk Cenderawasih) Management Plans to coastal resource priorities (Spermonde, Lombok/Sekotong,  4 MPAs in western Indonesia (TWP Kep. management plans that link up with Kendari and Ternate). Anambas, TWP P. Pieh, TWP Gili Matra, district zoning plans. Kepulauan Seribu)  7 locations responding to national priorities (Makassar, Sekotong, Kendari, Ternate, Lampung, Belitung, Wetar Island). Develop and launch new Coral Reef Health Develop and launch new Coral Reef Health Index: Index:  The index will provide a practical approach  The index will provide a practical approach that will link field data to an intuitive that will link field data to an intuitive interpretation for management. Specific interpretation for management. Specific aspects of the proposed metric will aspects of the proposed metric will include: (1) Coral cover, (2) Potential for include: (1) Coral cover, (2) Potential for coral recovery, and (3) Total fish biomass. coral recovery, and (3) Total fish biomass.  Building the bridge between monitoring  Building the bridge between monitoring and management: The lack of connection and management: The lack of connection between monitoring data and between monitoring data and management decisions is a global problem. management decisions is a global LIPI’s skill in monitoring and interpreting problem. LIPI’s skill in monitoring and data will help deliver a coral reef interpreting data will help deliver a coral management strategy identification tool reef management strategy identification developed in collaboration with tool developed in collaboration with international research partners (e.g., international research partners (e.g., University of Queensland and the WB GEF University of Queensland and the WB GEF Coral Reef and Related Ecosystems Project Coral Reef and Related Ecosystems Project (CCRES). (CCRES). 12 Sub-component 1.1 now includes both sub-components 1.1a and 1.1b from the 2017 restructuring. 6 The World Bank Coral Reef Rehabilitation and Management Program- Coral Triangle Initiative (COREMAP-CTI) (P127813)  Centralized online database: To aid future  Centralized online database: To aid future usage and entering of data by those using usage and entering of data by those using the reef health index, a centralized web- the reef health index, a centralized web- enabled database will be developed by enabled database will be developed by LIPI. LIPI.  Web-based reporting: The reef health  Web-based reporting: The reef health index will form the basis of a coastal report index will form the basis of a coastal report card. This will be publicly available through card. This will be publicly available through an online mapping portal, including an online mapping portal, including InaGeoPortal. InaGeoPortal. Establish a National Coastal Ecosystems Establish a National Coastal Ecosystems Monitoring Certification Standard: Monitoring Certification Standard:  LIPI will obtain accreditation from the  LIPI will obtain accreditation from the National Agency for Professional National Agency for Professional Certification (Badan Nasional Sertifikasi Certification (Badan Nasional Sertifikasi Profesi, BNSP), to become the Indonesian Profesi, BNSP), to become the Indonesian Professional Certification Agency for Professional Certification Agency for coastal ecosystems monitoring. coastal ecosystems monitoring. Certification will be secured for 5 Certification will be secured for 5 schemes: schemes: 1) Assess coral reef conditions; 1) Assess coral reef conditions; 2) Assess 2) Assess biodiversity of coral reef fish biodiversity of coral reef fish species; 3) species; 3) Assess megabenthos; 4) Assess Assess megabenthos; 4) Assess mangrove mangrove habitat conditions; and 5) habitat conditions; and 5) Assess seagrass Assess seagrass habitat conditions. habitat conditions.  Develop a long-term staffing and financing  Develop a long-term staffing and financing plan for the Professional Certification plan for the Professional Certification Agency and the national network. LIPI will Agency and the national network. LIPI will develop a national professional develop a national professional competency standard. competency standard.  Undertake a promotional campaign to  Undertake a promotional campaign to launch the national standard. launch the national standard. Establish sub-national assessment centers Establish sub-national assessment centers and monitoring plans: and monitoring plans:  Establish a national network of 7  Establish a national network of 7 assessment centers within existing LIPI assessment centers within existing LIPI partner monitoring institutions (i.e., partner monitoring institutions (i.e., universities) linked to district and universities) linked to district and provincial coastal ecosystem monitoring provincial coastal ecosystem monitoring programs under the Government’s programs under the Government’s Marine Marine Affairs and Fisheries Agencies. Affairs and Fisheries Agencies.  Train and certify at least 25 assessors and  Train and certify at least 25 assessors and 100 surveyors per year. 100 surveyors per year. Sub-component 1.1b: Support for robust (Sub-component 1.1 now includes both, sub- coastal ecosystem monitoring components 1.1a and 1.1b from the 2017 restructuring) Conduct comprehensive and scientifically robust coastal ecosystems monitoring surveys in 11 specific Western Indonesia locations:  8 districts in Western Indonesia (Tapanuli Tengah, Nias Utara, Mentawai, Batam, Bintan, Lingga, Natuna, Sabang) 7 The World Bank Coral Reef Rehabilitation and Management Program- Coral Triangle Initiative (COREMAP-CTI) (P127813)  3 marine conservation areas in Western Indonesia (Gili Matra, Anambas, Pulau Pieh). Sub-Component 1.2 Support for robust Sub-component 1.2: Strengthen technical Sub-component 1.2: Strengthen technical ecological and socio-economic monitoring capacity for target coastal monitoring end- capacity for target coastal monitoring end- users users (No change)  Upgrade coral reef management  Award 20 International Master’s Degree  Award 20 International Master’s Degree information systems in terms of content, Scholarships for qualified technical staff of Scholarships for qualified technical staff of presentation, access, integration with CTI- sub-national coastal ecosystems sub-national coastal ecosystems based information databases, and to serve monitoring and management units across monitoring and management units across as the official repository for coral reef Indonesia. Indonesia. ecological and socio-economic monitoring  Deliver coastal ecosystems monitoring  Deliver coastal ecosystems monitoring and information and management training to technical management training to technical staff of  Develop a certification and training staff of sub-national coastal ecosystems sub-national coastal ecosystems program for coral reef monitoring monitoring and management units across monitoring and management units across incorporating best practice Indonesia. Indonesia.  Conduct monitoring in collaboration activities with various government agencies, civil society organizations and private organizations  Improve and disseminate coral reef protection education modules for elementary through high schools  Improve communities' knowledge of adaptation measures to respond to coral reef-related climate change impacts. Sub-component 1.3: Strengthening Sub-component 1.3: Strengthen Institutional surveillance of coastal ecosystems Capacity for Coastal Ecosystems Monitoring (Original sub-component 3.1)  Develop best practice approaches to Investments will upgrade several existing LIPI marine monitoring, control and facilities: surveillance, including regular joint patrols  LIPI has marine and coastal campuses that involving the Borrower's navy, DINAS and are in need of upgrading in order to community participation at the provincial become a regional training center of level excellence, including: (1) Marine Species  Strengthen local level MCS institutions Conservation Technical Unit, Bitung, (Pokmaswas) in project villages, districts, Sulawesi; (2) Marine Species Conservation and MPAs Technical Unit, Tual, Maluku; (3) Field  Provide pokmaswas near violation "hot- Research Station, Ternate, North Maluku; spots" and MCS patrols with monitoring (4) Marine Bio-Industry Technical Unit, and communications equipment Mataram, Lombok; (5) Facilities at LIPI’s Ancol Headquarters; and (6) Marbest field  Support training of coastal police and civil station, Pulau Pari. investigators to prosecute violators of laws and regulations related to coral reef  COREMAP established the Coral Reef management. Information and Training Centre. These facilities have been operational for more than 10 years and require renovation to support LIPI’s objective of becoming a regional training center of excellence. The project will finance small civil works to renovate interior training facilities at LIPI’s central Jakarta (Jl. Raden Saleh) site. These renovations will also support development of the MarBEST Regional Training and 8 The World Bank Coral Reef Rehabilitation and Management Program- Coral Triangle Initiative (COREMAP-CTI) (P127813) Research Center and strengthen LIPI’s position within the UNESCO/IOC Western Pacific regional network.  The success of the national data repository depends in part on timely and efficient provision of data from regional nodes: LIPI will (1) upgrade and renovate at least 7 regional data nodes within existing institutions (i.e., universities), including through procurement of IT systems; and (2) establish a sub-national network of 8 data loggers and automated marine monitoring stations/buoys that will input data to the national data repository. Sub-component 1.4: Strengthening technical capacity  Train MMAF staff in identified core competencies  Provide short-term training including internship (national and international) on a range of topics to national and district staff, community members, and fisheries extension officers  Support advanced graduate degree programs on fisheries management for selected national staff of the Directorate General of Capture Fisheries within MMAF Component 2: Development of Ecosystem Component 2: Support for Demand-Driven Component 2: Support for Demand-Driven Based Resources Management Coastal Ecosystems Research Coastal Ecosystems Research Sub-component 2.1: Support Preparation of Sub-component 2.1: Strengthening Sub-component 2.1: Strengthening Zoning Plans institutional systems for demand-driven institutions for demand-driven coastal coastal ecosystems research ecosystems research (No change)  Support the preparation and finalization of Strengthen the demand-driven research Strengthen the demand-driven research the zoning plans for the selected districts process, through: process, through: and for the respective provinces, as  Improved engagement with and  Improved engagement with and needed involvement of end users in defining involvement of end users in defining  Support activities required to draft the research priorities and disseminating research priorities and disseminating final district regulation in each of the research outcomes. research outcomes. selected districts.  Two national symposia per year to  Two national symposia per year to enhance cross-sectoral and inter-agency enhance cross-sectoral and inter-agency engagement in the coastal ecosystems engagement in the coastal ecosystems research prioritization and delivery research prioritization and delivery process. process.  Demand-driven competitive coastal  Demand-driven competitive coastal ecosystems research grants system that ecosystems research grants system that awards at least 10 grants per year, LIPI will awards at least 10 grants per year, LIPI will support implementation of coastal support implementation of coastal ecosystems research priorities while ecosystems research priorities while strengthening national research networks strengthening national research networks and capacity. and capacity.  LIPI will undertake priority research based  LIPI will undertake priority research based on a clear demand-driven basis to produce on a clear demand-driven basis to produce at least 18 research publications during at least 18 research publications during the the life of the Project. Indicative studies life of the Project. Indicative studies may 9 The World Bank Coral Reef Rehabilitation and Management Program- Coral Triangle Initiative (COREMAP-CTI) (P127813) may include the following themes, among include the following themes, among others: climate change, biodiversity, others: climate change, biodiversity, threatened species, marine debris and threatened species, marine debris and rights-based fisheries management. rights-based fisheries management. Sub-component 2.2: Application of Sub-component 2.2: Strengthen technical Sub-component 2.2: Strengthen technical Integrated Coastal Management (ICM) capacity for coastal ecosystems research capacity for coastal ecosystems research (No change)  Provide training and build awareness  LIPI will strengthen its own human  LIPI will strengthen its own human about integrated coastal management resources skills, knowledge and capacity resources skills, knowledge and capacity aspects across a range of stakeholders and that of its research partners via and that of its research partners via  Support preparation of an integrated delivery of targeted training (e.g., GIS, delivery of targeted training (e.g., GIS, data coastal management plan for the selected data analysis, research and laboratory analysis, research and laboratory districts, as needed, based on the village techniques), for at least 100 researchers techniques), for at least 100 researchers level coastal management plans per year. per year.  Development of LIPI’s role as a regional  Development of LIPI’s role as a regional center of excellence will be achieved by center of excellence will be achieved by developing national and international developing national and international training offerings within the MarBEST training offerings within the MarBEST Center. Center. Sub-component 2.3: Management Sub-component 2.3: Strengthen Coastal Effectiveness of MPAs Ecosystems Monitoring and Research Data and Knowledge Networks (Original sub- component 3.2)  Support the preparation and finalization of  Augment national holdings of coastal the zoning and management plans for the ecosystems data and enhance availability national and district MPAs to end users by ensuring outputs from  Carry out investments and activities competitive grants and demand-driven relating to conservation area management studies are incorporated into the national data repository.  Support preparation of a national strategic action plan for at least three marine  Development of a long-term strategy and threatened species, and implement development plan to meet the growing protection management plans in three demand for coastal ecosystems data selected pilot sites within the selected provision and dissemination that will result national and district MPAs. from its new mandate from the National Geospatial Agency. LIPI will also commission a review of intellectual property rights and legal requirements associated with data management, and develop data sharing processes, agreements and standards.  Implement a series of public information and awareness campaigns to enhance public knowledge about coastal ecosystems and the outputs of LIPI’s monitoring and research programs.  Undertake a “deep dive” study to develop and launch a COREMAP-CTI Program legacy campaign to raise awareness of the critical environmental, social and economic importance of coastal ecosystems in Indonesia. Sub-component 2.4: Piloting Community Rights-based Approach 10 The World Bank Coral Reef Rehabilitation and Management Program- Coral Triangle Initiative (COREMAP-CTI) (P127813)  Ascertain the feasibility of the designated pilot areas for community-based approach for the management of marine resources  Support process of defining and establishing community rights over reef, fishery and associated resources through implementation of two pilots. Sub-component 2.5: Sustainable Fisheries Management in two fisheries management areas  Carry out stock assessment and status of selected coral reef fish  Develop a coral reef fish management plan based on the stock assessments and an eco-system approach to fisheries management for select coral reef fish species  Assess the district level fisheries performance in selected areas using EAFM indicators  Train MMAF staff and district fishery officers and build awareness in relevant stakeholders on EAFM. Component 3: Strengthening Sustainable Component 3: Strengthening Institutional Component 3: Management of priority Marine-based Economy Systems for Coastal Ecosystems Monitoring coastal ecosystems (New Component to and Research include reintroduced GEF-financed activities)13 Sub-component 3.1: Creation of basic Sub-component 3.1: Strengthen Institutional Sub-component 3.1: Management infrastructure at district and national level Capacity for Coastal Ecosystems Monitoring effectiveness of marine protected areas and MPAs and Research conservation of threatened species  Finance basic infrastructure for Investments will upgrade several existing LIPI Accelerate progress towards “Blue” development of selected district and facilities: management effectiveness for priority MPAs national MPAs  LIPI has marine and coastal campuses  Through ICCTF-BAPPENAS awarded sub-  Identify and develop the prioritized that are in need of upgrading in order to grants, NGOs and other eligible enabling infrastructure to attract private become a regional training center of organizations will support the investment and to support sustainable excellence, including: (1) Marine Species implementation of MPA management enterprise alliances development in the Conservation Technical Unit, Bitung, plan priority actions that will contribute eligible districts Sulawesi; (2) Marine Species to improved management status in Conservation Technical Unit, Biak, Papua; Priority MPAs. Priority MPAs are: (3) Marine Species Conservation KKPN/SAP Raja Ampat (Papua Barat), Technical Unit, Tual, Maluku; (4) Field KKPD Raja Ampat (Papua Barat), Research Station, Ternate, North KKPN/SAP Waigeo Sebelah Barat (Papua Maluku; (5) Marine Bio-Industry Barat), and and KKPN/TNP Laut Sawu Technical Unit, Mataram, Lombok; and (Nusa Tenggara Timur). (6) Facilities at LIPI’s Ancol Headquarters. Accelerate the implementation of three new  COREMAP established the Coral Reef National Plans of Action for threatened Information and Training Centre. These species facilities have been operational for more  Through ICCTF-BAPPENAS awarded sub- than 10 years and require renovation to grants, NGOs and other eligible support LIPI’s objective of becoming a 13Reintroduced GEF-financed activities have been adjusted and realigned to be consistent with the updated PDO, implementation progress to date, and government priorities including MMAF’s strategic and policy frameworks. For more detailed information on modifications, see restructuring note prepared for the GEF. 11 The World Bank Coral Reef Rehabilitation and Management Program- Coral Triangle Initiative (COREMAP-CTI) (P127813) regional training center of excellence. organizations will support and accelerate The Project will finance small civil works the implementation of priority goals for to renovate interior training facilities at threatened species management, LIPI’s central Jakarta (Jl. Raden Saleh) site specifically Manta Rays, Sharks, and and Pulau Pari field station. These Cetaceans, in and around priority MPAs. renovations will also support development of the MarBEST Regional Training and Research Center and strengthen LIPI’s position within the UNESCO/IOC Western Pacific regional network.  The success of the national data repository depends in part on timely and efficient provision of data from regional nodes. LIPI will: (1) upgrade and renovate at least 7 regional data nodes within existing institutions (i.e., universities), including through procurement of IT systems; and (2) establish a sub-national network of 8 data loggers and automated marine monitoring stations/buoys that will input data to the national data repository. Sub-component 3.2: Pilot program to test the Sub-component 3.2: Strengthen Coastal Sub-component 3.2: Integrated coastal zone development of sustainable enterprise Ecosystems Monitoring and Research Data planning alliances and Knowledge Networks  Carry out a feasibility study for SEA  Augment national holdings of coastal Support implementation of one provincial development in eligible districts, and ecosystems data and enhance availability level integrated coastal zone management identify and select the different district, to end users by ensuring outputs from plan location, business enterprise options competitive grants and demand-driven  Through ICCTF-BAPPENAS awarded sub- based on an assessment of district studies are incorporated into the grants, NGOs and other eligible development plans and district level national data repository. organizations will provide technical feasibility studies  Development of a long-term strategy and assistance and actions for the  Support the establishment of district development plan to meet the growing implementation of a marine spatial plan level associations of village coral demand for coastal ecosystems data and integrated coastal zone resources management committees provision and dissemination that will management plan for West Papua (LPSTK) result from its new mandate from the province. Activities will include: (1)  Support the formation of community National Geospatial Agency. LIPI will also developing a technical plan on MPA groups of eligible beneficiaries commission a review of intellectual carrying capacity, (2) rehabilitation of property rights and legal requirements select coastal ecosystem habitats, and (3)  Promote the establishment of SEAs with associated with data management, and training and public outreach in support of private partners selected through a develop data sharing processes, ICZM. competitive process agreements and standards.  Provision of grants to community groups  Implement a series of public information to finance sub-projects and awareness campaigns to enhance  Support piloting of technological best public knowledge about coastal practice approaches (building from other ecosystems and the outputs of LIPI’s sub-project successes and failures), monitoring and research programs. market development and outreach  Undertake a “deep dive” study to activities related to the SEAs. develop and launch a COREMAP Program legacy campaign to raise awareness of the critical environmental, social and economic importance of coastal ecosystems in Indonesia. 12 The World Bank Coral Reef Rehabilitation and Management Program- Coral Triangle Initiative (COREMAP-CTI) (P127813) Sub-component 3.3: Community stewardship of coastal resources Strengthening community surveillance of coastal ecosystems  Through ICCTF-BAPPENAS awarded subgrants, NGOs and other eligible organizations will develop and strengthen community surveillance groups across the priority MPAs, through capacity building, supporting operations and equipment. Piloting community rights-based approach to coastal resources and coral reef fish management  Through ICCTF-BAPPENAS awarded subgrants, NGOs and other eligible organizations will support the implementation of rights-based fishery management. Component 4: Project Management, Component 4: Project Management Component 4: Project Management (no Coordination and Learning change)  Monitoring and evaluation of Project  Monitoring and evaluation of Project  Monitoring and evaluation of Project performance performance performance  Learning networks and dissemination of  Compliance monitoring on safeguards  Compliance monitoring on safeguards best practices and fiduciary management and fiduciary management  Compliance monitoring on safeguards  Coordination with partners  Coordination with partners and fiduciary management  Coordination with the Asian Development Bank and other partners Table 2: Proposed Fund Allocations in comparison with Original COREMAP-CTI Design and June 2017 Restructured Design Original COREMAP-CTI Design Revised COREMAP-CTI Design Proposed COREMAP-CTI Design (as per PAD) (as per June 2017 Restructuring) (as per 2019 Restructuring) Allocation of Remaining Cost Cost Cost Funds Allocation Allocation Allocation Project Design Project Design Project Design15 (US$ million) IBRD + GEF14 IBRD only IBRD + GEF (US$ million) (US$ million) (US$ million) IBRD GEF Total Component 1: 14.93 Component 1: 14.26 Component 1: 28.12 19.56 0 19.56 Institutional Institutional Institutional Strengthening Strengthening for Strengthening for for decentralized coastal ecosystems coastal ecosystem coral monitoring monitoring reef management 14Note that at approval the total cost allocation included US$ 5.7 million of counterpart funding, which are not reflected here. At the 2017 Restructuring, US$3.42 million of the counterpart funding had been spent, and US$2.28 cancelled. 15As described in section II (d) the proposed implementation arrangements for the 2019 restructuring are as follows: Components 1, 2, and 4, which are entirely IBRD-financed, will remain under implementation by LIPI, except for subcomponent 1.2. (scholarships) which will be implemented by CPDET-BAPPENAS; Component 3, which is entirely GEF-financed, will be implemented only by ICCTF-BAPPENAS. 13 The World Bank Coral Reef Rehabilitation and Management Program- Coral Triangle Initiative (COREMAP-CTI) (P127813) Component 2: 15.19 Component 2: 13.09 Component 2: 16.39 4.73 0 4.73 Development of Support for Support for ecosystem Demand-driven Demand-driven based resources coastal ecosystems coastal ecosystems management Research Research Component 3: 22.12 Component 3: 15.79 Component 3: 9.07 0 6.22 6.22 Strengthening Strengthening Management of sustainable Institutional priority coastal marine-based Systems for ecosystems economy Coastal Ecosystems Monitoring and Research Component 4: 5.14 Component 4: 4.24 Component 4: 3.80 2.4516 0 2.45 Project Project Project management and management management coordination, and learning Total 57.38 Total 47.38 Total 57.38 26.74 6.22 32.96 f) Financial Management (FM) 15. The FM arrangement will follow the current country system. ICCTF is a working unit under BAPPENAS, meaning it has the mandate and capacity for national budget management. GEF funds will be provided to ICCTF-BAPPENAS through a planned grant or Hibah Terencana mechanism, and GEF payments will be executed via the State Treasury Office (Kantor Pelayanan Perbendaharaan Negara, or KPPN). Based on the FM assessment that was conducted for this restructuring, ICCTF-BAPPENAS has adequate structures and segregation of duties to conduct daily FM-related work. However, considering ICCTF-BAPPENAS’s existing workload, the working unit may not have sufficient human resources to handle the additional workload posed by GEF transactions. As such, it was agreed that ICCTF-BAPPENAS would hire an FM consultant to assist with GEF-related transactions by no later than the date of grant effectiveness. ICCTF-BAPPENAS, assisted by the FM consultant, will prepare quarterly Interim Financial Reports (IFRs), which shall be submitted to the WB within 45 days after the quarter ends. FM training will be arranged for the staff responsible for preparing IFRs. GEF- financed activities will be audited annually by the Audit Board of Indonesia (Badan Pemeriksa Keuangan, or BPK). The annual audit report shall be furnished to the WB no later than six months after the end of the fiscal year. 16. As most GEF-financed activities will be delivered through sub-grants, ICCTF-BAPPENAS will need to follow Minister of Finance (MOF) regulation no. 168/2016 and its revision, MOF regulation no. 173/2017. In accordance with these regulations, sub-grants characterized as defined in article 3 need to be defined through a Minister of BAPPENAS decree. A sub-grant manual17 would be developed to govern the implementation of the sub-grants, which would be submitted to the Bank for No Objection. Preparation of such a manual would be a disbursement condition for the sub-grants. It is 16 Includes US$ 0.41 million for contingency. 17Along with the new sub-grant manual (specific for Component 3), the project is guided by an existing scholarships manual (sub-component 1.2), a demand-driven research grants manual (sub-component 2.1), and an overall Project Implementation Manual (covering all parts of the Project). These documents contain implementation arrangements, technical specifications, fiduciary procedures, and environmental and social standards, and other key guidelines for the Project's implementation, to the satisfaction of the WB. These are currently being updated to reflect this restructuring. 14 The World Bank Coral Reef Rehabilitation and Management Program- Coral Triangle Initiative (COREMAP-CTI) (P127813) estimated that each sub-grant would have a value ranging from approx. US$0.25 – 0.75 million. As such, sub-grant disbursement might need to be done in several tranches to ensure each sub-grant is delivered within no more than one government fiscal year to comply with MOF regulations. g) Disbursement 17. Disbursement methods that will be used are i) Advance, ii) Direct Payment, and iii) Reimbursement. The Project will use the existing Designated Account (DA) denominated in US dollars at Bank Indonesia (the Central Bank) opened by MOF Directorate General of Treasury for GEF COREMAP-CTI. The DA is solely used to finance eligible project expenditures. The ceiling of the advance to DA will be variable, and the advance(s) will be made on the basis of the six-month projected expenditures. The reporting of use of the DA funds and expenditures would be based on the quarterly IFR. Applications for advance to the DA shall be submitted together with the reporting on use of DA funds, which will consist of: i) IFRs and list payments for contracts under the WB’s prior-review; ii) projected expenditures for six months; and iii) the DA reconciliation statement. ICCTF-BAPPENAS will be responsible for reconciling the DA and preparing the applications for withdrawal with the approval of MOF. As there is an existing DA for the GEF, ICCTF-BAPPENAS would need to coordinate with MOF and MMAF on transferring responsibilities to report on the use of funds and reconciliation of the DA by no later than effectiveness. As mentioned above, the sub-grant manual cleared by the WB would be a disbursement condition for sub-grant disbursement. 18. BAPPENAS will be permitted to charge to the Grant eligible project expenses incurred after February 22, 2019 but before signing of the legal agreement. This measure aims to provide an immediate financing option for BAPPENAS who are not party to the current (2017) amended legal agreement. These expenditures would be used for project-related activities for Component 3 only, specifically for the contracting of consultants for sub-grants preparation (Grant disbursement category 3). These expenditures will be made following Project procurement arrangements, be subject to the same systems, controls, and eligibility filters as other Project expenditures, and be subject to external Project audits. 19. Only the direct cost of scholarships18 will be eligible under sub-component 1.2. Operational costs, including costs for the student selection process, will be financed by BAPPENAS through their existing scholarship administration systems. h) Procurement 20. All procurement under the Project shall be governed by, and carried out in accordance with, the WB's Procurement and Consultant Guidelines, dated January 2011 (revised July 2014), stipulated in the Financing Agreement. This includes procurement of goods, works and non-consultant services under the National Competitive Bidding (NCB) method, which shall also be governed by the WB's Procurement Guidelines. The exception is that the GOI's procurement regulations may be used to the extent they do not conflict with the WB's Procurement Guidelines and subject to the required improvements listed in the NCB Annex to the Financing Agreement, which are incorporated in the harmonized NCB model bidding documents agreed between the WB and the National Public Procurement Agency (Lembaga Kebijakan Pengadaan Barang/Jasa Pemerintah, or LKPP). In case of a conflict or difference in opinion arising during the procurement process, the WB shall provide written clarification, which shall serve as the procedure to be followed. The GOI's e- 18 Defined as the reasonable costs of tuition, registration fees, visa arrangements, insurance fees, student services fees, living expenses, settling-in allowance, book allowance, seminar allowance, research allowance, shipping allowance, travel and subsistence of graduate students. 15 The World Bank Coral Reef Rehabilitation and Management Program- Coral Triangle Initiative (COREMAP-CTI) (P127813) procurement system (Sistem Pengadaan Secara Elektronik, or SPSE) may only be used for procurement of goods, works and non-consultant services under the NCB method, using the harmonized NCB standard bidding documents. The GOI's national SPSE e-procurement system shall not be used for the selection of consultant services under CQS (Consultant Qualification Selection), QBS (Quality Based Selection), FBS (Fixed Budged Selection), LCS (Least-Cost Selection), nor Individual Consultant methods. Procurement under the above-stated methods shall be carried out through a non- electronic process with manual issuance of invitation for bids and receipt of bids. This arrangement applies for the procurement of civil works, goods, and non-consulting services under the sub-grants. 21. Project procurement with GEF financing is mainly for consultants, non-consulting services, civil works and goods. The contracts for non-consulting services, civil works and goods are expected to be of a simple nature and with values below the ICB thresholds. Procurement of consultant services is expected under all components except Component 1. The NCB procurement process and selection of consultants with GEF financing will be carried out by BAPPENAS's procurement services unit (Unit Layanan Pengadaan, or ULP). Procurement process under shopping will be carried out by ICCTF- BAPPENAS’s procurement officer. Procurement processes for small works and goods for communities will be carried out by implementing partners (i.e. the sub-grantees). We note that the ULP procurement officer has no experience in procurement under the WB’s Procurement and Selection Guidelines. The procurement capacity assessment of implementing partners (sub-grantees) will be undertaken once they have been selected and appointed. The Project procurement plan will provide the basis for use of procurement and selection methods and the WB’s review requirements for each contract package, which will be consistent with the WB’s standard thresholds based on procurement risk. The procurement plan will provide the basis for use of the procurement methods and the WB’s review requirement for each contract package, which will be consistent with the WB’s suggested standard thresholds based on the Project's procurement risk. The procurement plan shall be agreed by the WB prior to signing the grant agreement and will be recorded in the WB’s STEP system, which shall be used for exchange, tracking and documentation of all procurement records under the Project. 22. For purposes of sub-grants, it was noted that while ICCTF-BAPPENAS will engage with the sub-grantees (as implementing partners for most of GEF-financed activities), the selection of these implementing partners is carried out by ICCTF-BAPPENAS, based on the selection procedures outlined in the sub-grant manual. As such, for the purpose of the GEF-financed program, the selection of implementing partners is not considered a procurement activity and hence is not considered in this assessment. ICCTF-BAPPENAS will be responsible for developing the implementation selection procedures as set forth in the sub-grant manual. The WB’s no objection will be obtained prior to signing the sub-grant agreements. 23. In addition to the WB’s prior review of the contracts awarded, training on the WB’s Procurement and Selection Guidelines, and hands-on procurement support by the WB during Project implementation, it is proposed that the procurement specialist will conduct procurement supervision in the field at least twice per year, including ex-post reviews of not less than 20 percent of the contracts subject to the WB’s post review. i) Environmental and Social Safeguards 24. The scope and nature of activities proposed by this restructuring will be similar to the original COREMAP-CTI design (prior to the first 2017 restructuring). Therefore, the Environmental Assessment (EA) category of the Project, 16 The World Bank Coral Reef Rehabilitation and Management Program- Coral Triangle Initiative (COREMAP-CTI) (P127813) Category B, Partial Assessment, and the safeguards policies triggered including OP/BP4.01 Environmental Assessment, OP/BP4.04 Natural Habitats, OP/BP4.10 Indigenous Peoples, and OP/BP4.12 Involuntary Resettlement, will continue to apply. 25. The safeguard policies will be applied to the proposed infrastructure-related activities (as presented under subcomponent 1.3 and subcomponent 3.1), and for the Technical Assistance (TA) supporting the implementation of a marine spatial plan and integrated coastal zone management plan for West Papua (subcomponent 3.2). 26. The infrastructure-related activities include improvements and rehabilitation of strategic buildings (e.g., manta- ray sight station, hiking trail, tourist jetty, information centers) to support and accelerate the implementation of priority actions under the MPA management plan, which may be carried out by a third party (i.e. NGO or other eligible organization) via sub-grants awarded by ICCTF-BAPPENAS. Additional infrastructure works consist of renovating and upgrading LIPI’s existing research buildings including: i) Marine Species Conservation Technical Unit, Bitung, North Sulawesi; ii) Marine Bio-Industry Technical Unit, Mataram, Lombok; iii) facilities at LIPI’s Ancol Headquarters; and iv) Pulau Pari field station as the MarBEST Regional Training and Research Center. The renovations and upgrades of LIPI’s research buildings: i) Training Facilities in Jakarta Jalan Raden Saleh; ii) Marine Species Conservation Technical Unit, Tual; and iii) Field Research Station, Ternate, North Maluku, were completed in 2018. 27. In line with impacts experienced to date under the Project, the restructured Project is not expected to generate any large-scale, significant or irreversible environmental and social impacts. The Project will continue following the principle that no severe environmental impacts are tolerated, no natural habitat will be lost or severely damaged, no indigenous people will be adversely affected, and limited involuntary resettlement will take place due to land acquisition from activities in sub-component 3.1 and 3.2. The physical activities are limited to improving strategic infrastructure, renovating and upgrading research centers and offices, and rehabilitating select coastal ecosystem habitats, and thus the environmental and social impacts are expected to be minor to moderate, reversible and site-specific. Such impacts can be managed locally by adopting screening criteria, good engineering design and construction practices. Nonetheless, because of the national scope of the Project, it is essential to ensure sufficient attention is paid to the application of safeguard guidelines and adequate monitoring. 28. Mitigation measures will be carried out in line with best practice measures, as identified in the Project's Environmental and Social Safeguards Framework (ESSF). The ESSF, which sets out procedures required by the Project to minimize adverse environmental and social impacts that may occur during implementation, was updated following public consultation (July 2018) and finalization of restructuring discussions in March 2019. It has received No Objection from the WB and been submitted for redisclosure. The updated ESSF reflects the changes in the role of the implementing agencies (i.e., LIPI and ICCTF-BAPPENAS), and the changes to the Project design. The ESSF provides a negative list and a set of environmental and social screening procedures to guide implementation. It also comprises a Land Acquisition and Resettlement Policy Framework (LARPF), and an Indigenous Peoples Planning Framework (IPPF). The LARPF establishes principles and procedures to guide Project implementers in managing land acquisition activities, and guides preparation of associated action plans (LARAP) for any investments involving land acquisition. The LARAPs provide mitigation plans to ensure that affected peoples will not be worse off due to Project activities and that they will be consulted during 17 The World Bank Coral Reef Rehabilitation and Management Program- Coral Triangle Initiative (COREMAP-CTI) (P127813) preparation and implementation. The IPPF provides general principles and procedures that will be applied during preparation and implementation. 29. From 2015 to 2018, the proposed new implementing agency ICCTF-BAPPENAS financed 63 programs (with 42 currently ongoing) throughout Indonesia with funding from APBN, USAID, UKCCU and DANIDA. The programs included various small-scale infrastructure projects, examples of which include the construction of an information and training center and mangrove walkways for ecotourism, all of which are not considered to have any significant negative environmental impacts, according to ICCTF-BAPPENAS’ independent expert. Generally, ICCTF-BAPPENAS cannot finance any large-scale and permanent infrastructure, any program generating significant environmental and social impacts, any program requiring involuntary resettlement, any program contravening the principles of Environmental and Social Safeguards, nor any activities that support a political agenda. 30. The safeguards institutional capacity assessment, conducted for this restructuring, found that ICCTF-BAPPENAS currently has no dedicated person or team responsible for environmental and social management issues. Rather, program officers are reportedly performing the safeguard-related matters on top of their regular operational duties. Environmental and social safeguards considerations in ICCTF-BAPPENAS projects are guided by its Environmental and Social Safeguards guidelines and other documents.19 Proposed projects are being assessed and categorized against environmental and social risks by an independent expert. According to the expert, all 63 existing projects to date have been categorized as C, unlikely to generate significant environmental impacts. The current ICCTF-BAPPENAS’ Environmental and Social Safeguard guidelines consist of a screening checklist to be signed by the project proponent on potential environment and social impacts that covers issues on: i) indigenous and local communities; ii) biodiversity; iii) land acquisition and resettlement; iv) stakeholder support; v) environmental documents and permits; vi) human rights; vii) labor standards; and viii) gender. In case of any such issues to be identified during screening, the program will be rejected. Environmental, social, health and safety (ESHS) requirements, however, have not been included in the agreement/cooperation document between ICCTF-BAPPENAS and the NGOs or other eligible organizations implementing the projects. As such, there is no contractual requirement for the implementing NGO or other eligible organization to manage any safeguard-related issue as part of ICCTF-BAPPENAS-support. 31. The capacity building section in the ESSF has therefore been updated to include action plans toward addressing the aforementioned gaps in institutional capacity. j) Appraisal Summary 32. Technical: The technical design and scope of the Project will continue to focus on strengthening Indonesia’s capacity to generate robust coastal ecosystems monitoring and demand-driven priority research to inform ecosystem and coastal resources management decision-making and investment priorities. Improved decision-making will contribute toward ensuring long-term sustainability of these resources and optimize their use and utility for the prosperity of the country’s citizens. However, through this restructuring, the focus on ensuring global environmental benefits through monitoring and research activities will be complemented with on-ground activities aimed at improving management of 19Guiding documents include i) Environmental and Social Safeguards Consideration in the Project Cycle for Projects Financed by the ICCTF and the Appendix of Project Categorization; ii) Proposal Scoring Form by Independent Expert; and iii) ICCTF Environmental and Social Safeguard UKCCU 2017 Checklist. 18 The World Bank Coral Reef Rehabilitation and Management Program- Coral Triangle Initiative (COREMAP-CTI) (P127813) priority coral reef and associated coastal ecosystems. The Project will build on and complement ongoing activities (e.g. MPA management, conservation and sustainable use of fisheries and associated resources through community rights- based governance, and capacity building for marine spatial planning) that are being implemented through existing country systems by MMAF as per the original COREMAP-CTI approach. 33. Economic and Financial Analysis: The restructured COREMAP-CTI I is expected to generate quantifiable and non- quantifiable socio-economic benefits, including: (i) increased fisheries production for local consumption and subsistence; (ii) increased high-value fisheries production for live export markets; (iii) increased revenues from tourism activity; (iv) improved public policy through demand-driven research and data, and the infrastructure that supports it; (v) increased productivity from human capital increases associated with training and education; (vi) storm damage protection to coastal communities; (vii) improved biodiversity conservation; and (viii) carbon sequestration in marine ecosystems such as seagrass and mangroves. Economic analysis has been undertaken on the quantifiable benefits from items (i) to (v) above, both for the reintroduced GEF-financed activities in isolation, and for the broader restructured Project in total. The latter analysis accounts for progress to-date, updated Project parameters, and improvements in available data and analysis methods relative to the economic analysis that was undertaken at appraisal. Assumptions used (and described below) are conservative, and the non-quantified items (vi) to (vii) will contribute considerably to the overall social and economic impact of the Project.20 Empirical Approach 34. Social economic returns are determined using a benefit cost analysis. A thirty-year period of analysis is used to account for the long-term benefits expected to accrue from improved natural resources management and the slow rate of change in natural systems, with projections of long-term management costs incorporated. The Project implementation period21 is included within the analysis period. We use a discount rate of 5.6 percent for our primary analysis22 and confirm that positive results are robust to a 10 percent discount rate. 35. The GEF-financed activities deliver management actions that aim at a minimum to prevent reef degradation and live coral loss (necessary for achievement of PDO indicator 1). The analysis compares a with-Project scenario, in which live coral cover within the four target MPAs is assumed to stay constant over the period of analysis, to a without-Project scenario, in which coral cover is assumed to decline in line with rates seen prior to the COREMAP-CTI program. The 20Biodiversity, for example, has very large global public good value. The coral triangle contains 76 percent of all known coral species in the world. The project will also contribute to non-quantifiable empowerment of communities participating in community-based natural resources management activities. 21 The full seven-year implementation period (pre-and post-restructuring) is included in the analysis of the whole project for holistic project evaluation. The shorter post-restructuring implementation period (three years) is used for the analysis of the new Component 3 activities in isolation. Discounting starts in the same year for both analyses for consistency. 225.6 percent is approximately twice the long-term (20 year) GDP per capita growth rate for Indonesia, in line with World Bank Group Discounting procedure. See World Bank (2016). Discounting Costs and Benefits in Economic Analysis of World Bank Projects. 19 The World Bank Coral Reef Rehabilitation and Management Program- Coral Triangle Initiative (COREMAP-CTI) (P127813) counterfactual is based on estimated yearly coral cover loss of 0.25-1 percent.23,24 Returns to Component 3 are calculated under a range of counterfactual coral loss rates. 36. For all benefits, per-unit area calculations of coral value are assumed to scale proportionally with avoided coral loss. Fisheries per-unit area productivity and value is derived from analytical work underpinning the first phase of the COREMAP-CTI,25 with conversion to 2017 US dollars. Key fisheries parameters and assumptions include (1) reef productivity of 10 tonnes annually for local consumption valued at US$ 1.33 per kilogram, (2) reef productivity of 0.5 tonnes annually for live export fish, at a price of US$ 5.50 per kilogram, and (3) that this biomass is harvestable (i.e., that there are spillovers from MPAs). Productivity values are the low end of the range (10-20 tonnes km-2 yr-1) used in the original analysis.25 Tourism values are derived from a published spatially explicit model26 of tourist visits and reef-related expenditure in non-urban, coastal areas. This accounts for the heterogeneity of expenditure across regions to arrive at a national average that unlike many estimates does not misallocate high-value case-study values to remote reefs. The study's resulting Indonesia average (US$ 78,000 km-2 yr-1) is applied to the Raja Ampat locations. A much lower value of (US$ 900 km-2 yr-1) is applied to the less-developed Sawu Sea location.27 Results: New Proposed Activities Under Restructuring 37. The benefit-cost ratio for the proposed re-introduced GEF-financed activities (Component 3) under a mid-range assumption of avoided live coral loss (0.5 percent annually), is 3.59, with a net present value of US$ 25.28 million over 30 years (Table 3). Under avoided loss assumptions consistent with coral triangle region degradation prior to COREMAP-CTI (1 percent), benefit-cost ratios from this component alone are over 7.46 with a net present value over US$ 62.8 million. Estimates include Project management costs. Results under all effectiveness assumptions (0.25 to 1 percent avoided live coral loss) are positive under both 5.6 and 10 percent discount rates. Table 3: Benefit cost (BC) ratios and internal rates of return (IRR) calculated on GEF-Component introduced during restructuring Discount Rate: 5.6 percent Discount Rate: 10 percent Net Present Value Net Present Value IRR BC ratio BC ratio (US$ 2017) (US$ 2017) Counterfactual 0.25 percent 8.8 1.76 7.4 million 1.11 0.88 million annual live coral 0.5 percent 15.4 3.59 25.2 million 2.26 9.26 million loss 1 percent 23.7 7.46 62.9 million 4.68 26.8 million Note: Benefits estimated for avoided live coral cover loss only within the four Component 3 target MPAs. 23Live coral cover loss occurred of approximately 1 percent occurred between 1983 and 2003, and 2 percent between 1997 and 2003, across the coral triangle. See Bruno, J. and Selig, E. (2007). Regional Decline of Coral Cover in the Indo-Pacific: Timing, Extent, and Subregional Comparisons. PLoS ONE 2(8). 24 It should be noted that similar management activities under COREMAP-II in Raja Ampat delivered increases in live coral cover of around 33 percent in five years (before-after comparison without control area) (see COREMAP-II Implementation Completion and Results Report). Our assumptions of the benefits of the management activities are far lower. 25 Cesar, H. (1996). Economic analysis of Indonesia's coral reefs. Environment Department Working Paper. 26 Spalding, M., et al. (2017). Mapping the global value and distribution of coral reef tourism. Marine Policy, 82: 104-113. 27 We use the low-end value of the range presented for tourism and recreation value (US$ 900-148,000 km-2 yr-1) in Burke, L. et al (2004). Reefs at risk in South East Asia. Chapter 6: The economic loss associated with coral reef degradation. 20 The World Bank Coral Reef Rehabilitation and Management Program- Coral Triangle Initiative (COREMAP-CTI) (P127813) Results: Overall Project 38. To the above analysis of the proposed GEF-financed activities, a new analysis of the remaining components to determine total Project economic returns is added. This analysis represents a substantial update since Project appraisal to account for new data, valuation techniques, and Project progress to date. Values have been calculated for the monitoring program (sub-Component 1.1.), research infrastructure (sub-Component 1.4), demand-driven research grants (Component 2), scholarships for master's degrees (sub-Component 1.2), and capacity building through accreditation and short training courses (sub-Component 1.3). This covers all major components of the Project. Full management costs (Component 4) are included along with ongoing support costs of 20 percent of final year Project costs for IBRD-financed activities, and 40 percent of final year Project costs for GEF-financed activities. 39. Analysis of economic returns to education and training draws on a well-developed body of literature linking wage increases to education, including in low- and middle-income developing countries. The full benefit of education is assumed to be reflected in private wages, although given the public-orientation of public-service employment (by definition), this is likely conservative. Initial wages are assumed at US$ 1,000 per month for mid-level technical staff, growing at a rate equal to the long-term per capita economic growth rate of 2.8 percent. Four studies28,29,30,31 to our knowledge estimate returns to education specifically for Indonesia; we take an average of their mid-range estimates32 (10.7 percent). Based on past student and trainee numbers, and future student and trainee numbers in each year under restructuring (20 scholarship students, 70 MSP course training, 250 short-course trainees in total), education and training related activities (alone) have a benefit-cost ratio of 2.82, an internal rate of return of 11.8 percent, and net present value of US$6.04 million. 40. Economic benefits of the demand-driven research grants program are difficult to quantify given the diffuse nature of benefits from research and development, particularly in public-policy type fields. Published estimates of returns to research33 are reviewed, and 20 percent (one of the lowest published rates) applied, spread over 8 years (the assumed obsolescence period for data and research generated from the program). Estimating economic benefits for the monitoring program and infrastructure is similarly challenging. Assumed indirect benefits are the basis for quantification: these activities support improved management but do not directly contribute directly to improved reef condition. Fifteen percent of the benefits of improved management (as determined by the above analysis of Component 3) across all Indonesian MPAs is attributed to the data and knowledge produced by these activities, with sensitivity analysis performed 28 Sohn, K. (2013). Monetary and Nonmonetary Returns to Education in Indonesia. Developing Economies, 51(1): 34-59. Duflo, E. (2001) Schooling and Labor Market Consequences of School Construction in Indonesia: Evidence from an Unusual Policy Experiment. The 29 American Economic Review, 91(4): 795-813. 30 Comola, M., and L. de Mello. (2010) Educational Attainment and Selection into the Labour Market: The Determinants of Employment and Earnings in Indonesia. Paris School of Economics Working Paper, No. 2010-06. 31 Purnastuti, L. (2015). The returns to education in Indonesia: Post reform estimates. The Journal of Developing Areas, 49(3): 183-204. 32 Returns to education estimations may be affected by unobservable variable bias. For example, talent, which cannot be observed (or controlled for), may drive both education attainment and wage earning. At least two of these studies use instrumental variables to alleviate this bias and find little difference with their direct estimates. 33 Georghiou, L. (2015). The value of research. Policy Paper by the Research, Innovation, and Science Policy Experts (RISE). European Commission. 21 The World Bank Coral Reef Rehabilitation and Management Program- Coral Triangle Initiative (COREMAP-CTI) (P127813) on this proportion (Table 4).34 This implies a (conservative) assumption that monitoring, and research infrastructure, have no benefits outside of MPAs. However, it is likely that data and research will benefit reefs under a range of management regimes, and may also support expansion of improved management, suggesting benefits greater than those estimated here. 41. Using the mid-range effectiveness assumption for Component 3 activities. The Project has an overall BC ratio of 1.69, internal rate of return of 8.71 percent, and net present value of US$ 31.9 million. Notably, the Project remains overall positive, even in the case that monitoring and infrastructure (comprising around 54 percent of remaining expenditure) has no influence on reef management at all (an unlikely scenario). Unlike the analysis of Component 3 alone (above), these estimates include expenditure already incurred (prior restructuring) as well as the expenditure proposed to give a complete assessment. The restructured COREMAP-CTI is thus expected to deliver high economic returns both from the proposed activities under restructuring in isolation, and from the overall combination of components, existing and proposed. Table 4: Benefit cost (BC) ratios and internal rates of return (IRR) calculated on whole Project Assumed contribution of research and monitoring to improved management of Indonesia MPAs None 10 percent 15 percent BC ratio 1.09 1.69 2.00 Counterfactual annual live coral IRR (percent) 2.75 8.71 10.18 loss: 0.5 percent Net Present Value (US$ 2017) 4.16 million 31.9 million 45.9 million BC ratio 1.91 3.12 3.73 Counterfactual annual live coral IRR (percent) 8.31 14.31 16.11 loss: 1.0 percent Net Present Value (US$ 2017) 41.84 million 97.54 million 125.71 million Notes: 5.6 percent discounting; assumed impact limited to 2011 MPA area only (139,000 km2); includes education and training benefits, DDRG benefits, research and monitoring, and the proposed GEF-financed activities. k) Risks 42. The overall risk remains moderate. Political and governance-related, stakeholder-related and macroeconomic risks, as well as those associated with sector strategies and policies, and the technical design of the Project are considered low. However, environmental and social safeguards risks are considered moderate, and institutional capacity-related and fiduciary risks substantial, as per the following: 43. Institutional capacity is increased from Moderate to Substantial: The new implementation arrangement proposed under this restructuring will allow putting in place a delivery mechanism via sub-grants awarded by BAPPENAS through its working unit, the ICCTF, to select experienced NGOs and other eligible organizations for defined activities and work packages that contribute to specific component outputs. While ICCTF-BAPPENAS represents an essential instrument for the GOI to achieve marine conservation, and effectively manages funds in the amount of US$14 million, consisting of grant contributions from USAID, UKCCU, DANIDA, and others, it would be the first time for ICCTF-BAPPENAS to receive funding 34Note the implied (conservative) assumption that monitoring, and research infrastructure, have no benefits outside of MPAs. It is likely however that data and research is likely to benefit reefs under a range of management regimes and may support expansion of improved management. 22 The World Bank Coral Reef Rehabilitation and Management Program- Coral Triangle Initiative (COREMAP-CTI) (P127813) through the WB. There is therefore a substantial likelihood that weak institutional capacity for implementing the operation may adversely affect the PDO, and the sustainability of Project outcomes. Mitigation measures will include the provision of technical assistance and capacity building, training of key staff, and close monitoring of Project implementation by the WB through continuous support. 44. Fiduciary - Substantial: While the FM of GEF financing will follow government systems, experience from other WB- financed operations has pointed at risks associated with timeliness of budget availability and payment verifications. In addition, while ICCTF-BAPPENAS was found to have in place adequate structures and segregation of duties to carry out FM-related tasks, ICCTF-BAPPENAS’s existing workload was considered high, and hence the unit may not have sufficient human resources to absorb the additional workload posed by transactions related to this Project. Procurement-related risks stem from BAPPENAS’s ULP procurement officer's lack of experience in working under the WB’s Procurement and Selection Guidelines. In addition, the procurement capacity of implementing partners (sub-grantees) under the grant- mechanism is unknown and can only be assessed once they are selected and appointed. Mitigation measures will include the provision of technical assistance and capacity building, training of key staff, and establishing a strong fiduciary governance framework. 45. Environmental and social – Moderate: While project activities are not expected to generate any large-scale, significant or irreversible environmental and social impacts, Bappenas’ institutional capacity for environmental and social management is limited. First, ICCTF-BAPPENAS currently has no dedicated person and/or team responsible for environmental and social issues. Second, environmental and social safeguards considerations in ICCTF-BAPPENAS projects are guided by ICCTF-BAPPENAS’s Environmental and Social Safeguards guidelines, however, while they cover most relevant aspects, they do not include ESHS requirements, hence there is no contractual requirement for implementing partners pertaining to these specific issues. As mentioned before, the capacity building section in the ESSF has therefore been updated to include action plans toward addressing the aforementioned gaps in institutional capacity, and additional mitigation measures will include the provision of technical assistance, training of staff, and close monitoring of safeguards compliance. l) Extension of the closing date 46. An 18-month extension of the closing date is proposed, which will result in a 36-month cumulative extension – from December 31, 2020 to June 30, 2022. The additional implementation time will allow for the Project to fully achieve the envisaged results from reintroduction of GEF-related activities. The extension also ensures sufficient time for completion of the IBRD-financed infrastructure-related activities (upgrading of monitoring and research facilities). These have faced some delay due to circumstances beyond the Project's control (specifically, an earthquake at one site, a landslide at a second site, and the unavailability of an environmental permit at a third) but are now on track. 47. This extension also allows for increased ambition and scale-up of IBRD-financed activities as reflected in the revised results framework. All PDO-level indicators have higher targets, while five out of eight existing intermediate indicators have higher targets under this restructuring (one unchanged and two reduced marginally). One PDO-level indicator and four intermediate indicators have been added to reflect the restarted GEF-financed activities, and one intermediate indicator has been added for scholarships. 23 The World Bank Coral Reef Rehabilitation and Management Program- Coral Triangle Initiative (COREMAP-CTI) (P127813) III. SUMMARY OF CHANGES Changed Not Changed Implementing Agency ✔ Project's Development Objectives ✔ Results Framework ✔ Components and Cost ✔ Loan Closing Date(s) ✔ Reallocation between Disbursement Categories ✔ Disbursements Arrangements ✔ Disbursement Estimates ✔ Institutional Arrangements ✔ Financial Management ✔ Procurement ✔ Implementation Schedule ✔ Economic and Financial Analysis ✔ DDO Status ✔ Cancellations Proposed ✔ Overall Risk Rating ✔ Safeguard Policies Triggered ✔ EA category ✔ Legal Covenants ✔ APA Reliance ✔ Other Change(s) ✔ Technical Analysis ✔ Social Analysis ✔ Environmental Analysis ✔ 24 The World Bank Coral Reef Rehabilitation and Management Program- Coral Triangle Initiative (COREMAP-CTI) (P127813) IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_IA_TABLE IMPLEMENTING AGENCY Implementing Agency Name Type Action Indonesian Institute of Science (LIPI) Implementing No Change Agency Indonesian Ministry of National Implementing New Development Planning (BAPPENAS) Agency OPS_DETAILEDCHANGES_PDO_TABLE PROJECT DEVELOPMENT OBJECTIVE Current PDO To strengthen institutional capacity in coastal ecosystems monitoring and research to produce evidence-based resource management information. Proposed New PDO To strengthen institutional capacity in coastal ecosystems monitoring and research to produce evidence-based resource management information, and to improve management effectiveness of priority coastal ecosystems OPS_DETAILEDCHANGES_COMPONENTS_TABLE COMPONENTS Current Current Proposed Proposed Cost Action Component Name Component Name Cost (US$M) (US$M) Institutional Strengthening for Institutional Strengthening for 14.26 Revised 28.12 Coastal Ecosystems Monitoring Coastal Ecosystems Monitoring Support for Demand-Driven Support for Demand-Driven 13.09 Revised 16.39 Coastal Ecosystems Research Coastal Ecosystems Research Strengthening Institutional Management of Priority Systems for Coastal Ecosystems 15.79 Revised 9.07 Coastal Ecosystems Monitoring and Research Project Management 4.24 Revised Project Management 3.80 TOTAL 47.38 57.38 OPS_DETAILEDCHANGES_LOANCLOSING_TABLE LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline Ln/Cr/Tf Status Closing Closing(s) Closing for Withdrawal Applications IBRD-83360 Effective 30-Jun-2019 31-Dec-2020 30-Jun-2022 30-Oct-2022 xxv The World Bank Coral Reef Rehabilitation and Management Program- Coral Triangle Initiative (COREMAP-CTI) (P127813) TF-15470 Effective 30-Jun-2019 30-Jun-2022 30-Oct-2022 OPS_DETAILEDCHANGES_REALLOCATION _TABLE REALLOCATION BETWEEN DISBURSEMENT CATEGORIES Financing % Current Allocation Actuals + Committed Proposed Allocation (Type Total) Current Proposed IBRD-83360-001 | Currency: USD Current Expenditure Category: IBRD 83360 WORKS,TR&WS,CS,GOODS,IOC (PRO-- iLap Category Sequence No: 1 MEMORIA) 12,571,620.00 12,475,767.00 12,502,542.00 100.00 100.00 iLap Category Sequence No: 2 Current Expenditure Category: IBRD 83360 GRANTS (PRO-MEMORIA) 0.00 0.00 0.00 100.00 0 iLap Category Sequence No: 3 Current Expenditure Category: IBRD83360 SCHOLARSHIPS (PROMEMORIA) 444,677.00 444,676.72 444,677.00 100.00 100.00 iLap Category Sequence No: 4 Current Expenditure Category: WO,TR&WS,CS,NON-CS,GDS,SCHLRSHPS,IOC 34,363,703.00 7,648,020.59 34,432,781.00 100.00 100 Total 47,380,000.00 20,568,464.31 47,380,000.00 TF-15470-001 | Currency: USD Current Expenditure Category: TF 15470 WORKS,TR&WS,CS,GOODS,IOC (PRO- iLap Category Sequence No: 1 MEMORIA) 10,000,000.00 3,803,111.05 3,803,112.00 100.00 100.00 iLap Category Sequence No: 2 Current Expenditure Category: TF 15470 GRANTS 0.00 0.00 5,775,200.00 100.00 100.00 iLap Category Sequence No: 3 Current Expenditure Category: TF 15470 TR&WS,CS,NON CS, GOODS,IOC xxvi The World Bank Coral Reef Rehabilitation and Management Program- Coral Triangle Initiative (COREMAP-CTI) (P127813) 0.00 0.00 421,688.00 100.00 100.00 Total 10,000,000.00 3,803,111.05 10,000,000.00 OPS_DETAILEDCHANGES_DISBURSEMENT_TABLE DISBURSEMENT ESTIMATES Change in Disbursement Estimates Yes Year Current Proposed 2014 0.00 0.00 2015 6,500,000.00 7,818,500.00 2016 6,700,000.00 8,200,000.00 2017 4,180,000.00 4,600,000.00 2018 10,000,000.00 3,777,597.00 2019 10,000,000.00 5,380,000.00 2020 10,000,000.00 10,401,225.00 2021 0.00 11,650,539.00 . xxvii The World Bank Coral Reef Rehabilitation and Management Program- Coral Triangle Initiative (COREMAP-CTI) (P127813) . Results framework COUNTRY: Indonesia Coral Reef Rehabilitation and Management Program- Coral Triangle Initiative (COREMAP-CTI) Project Development Objectives(s) To strengthen institutional capacity in coastal ecosystems monitoring and research to produce evidence-based resource management information. Project Development Objective Indicators by Objectives/ Outcomes RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 Strengthen monitoring and research capacity for producing evidence-based coastal ecosystem mgmt info Sites at which Indonesia's new Coral Reef Health Index is 0.00 22.00 31.00 39.00 39.00 39.00 applied (Number) Rationale: Action: This indicator has been Progress to-date and extension of Project closing date (restructuring) has allowed for an increase in the indicator's targets. Revised Coastal ecosystems area under continuous monitoring 0.00 2,585,807.00 7,160,761.00 10,068,236.00 11,241,405.00 11,241,405.00 according to defined criteria (Hectare(Ha)) Rationale: Action: This indicator has been Progress to-date and extension of Project closing date (restructuring) has allowed for an increase in the indicator's targets. Revised Coastal ecosystems scientific research papers published by 0.00 0.00 15.00 30.00 50.00 57.00 LIPI and research grant xxviii The World Bank Coral Reef Rehabilitation and Management Program- Coral Triangle Initiative (COREMAP-CTI) (P127813) RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 recipients that meet the need for evidence-based resources management information (Number) Rationale: Action: This indicator has been Progress to-date and extension of Project closing date (restructuring) has allowed for an increase in the indicator's targets. Revised Improved management effectiveness of existing and new marine protected areas (MPA) (Action: This Objective is New) Target MPAs with a Blue Level Management Effectiveness 0.00 0.00 1.00 2.00 2.00 4.00 Score of at least 75 percent. (Number) Action: This indicator is New PDO Table SPACE Intermediate Results Indicators by Components RESULT_FRAME_TBL_IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 Support for Demand-Driven Coastal Ecosystems Research Researchers trained by LIPI in coastal ecosystems research 0.00 109.00 180.00 260.00 340.00 340.00 techniques (Number) Action: This indicator has been Rationale: Revised Progress to-date and extension of Project closing date (restructuring) has allowed for an increase in the indicator's targets. xxix The World Bank Coral Reef Rehabilitation and Management Program- Coral Triangle Initiative (COREMAP-CTI) (P127813) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 Demand-driven coastal ecosystems research grants 0.00 13.00 20.00 30.00 30.00 30.00 awarded by LIPI (Number) Rationale: Action: This indicator has been Progress to-date and extension of Project closing date (restructuring) has allowed for an increase in the indicator's targets. Revised Institutional Strengthening for Coastal Ecosystems Monitoring Coastal ecosystems monitoring 16.00 22.00 39.00 61.00 78.00 78.00 surveys completed (Number) Rationale: Action: This indicator has been Extension of Project closing date (restructuring); decrease in the indicator's end-target from 93 to 78. Revised Specific coastal ecosystems schemes for which LIPI is 0.00 5.00 5.00 5.00 5.00 5.00 accredited as the national certification entity. (Number) Rationale: Action: This indicator has been Extension of Project closing date (restructuring), no change in target values. Revised Assessors and surveyors certified in coastal ecosystems 0.00 148.00 250.00 350.00 500.00 500.00 monitoring by LIPI. (Number) Action: This indicator has been Rationale: Revised Progress to-date and extension of Project closing date (restructuring) has allowed for an increase in the indicator's targets. xxx The World Bank Coral Reef Rehabilitation and Management Program- Coral Triangle Initiative (COREMAP-CTI) (P127813) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 Sub-national assesment centers established by LIPI. 0.00 4.00 6.00 8.00 10.00 10.00 (Number) Rationale: Action: This indicator has been Progress to-date and extension of Project closing date (restructuring) has allowed for an increase in the indicator's targets. Revised Technical staff awarded Masters Degree Scholarships in 0.00 0.00 0.00 5.00 8.00 20.00 coastal ecosystems monitoring and management (Number) Action: This indicator is New Sub-national data nodes within existing institutions established 0.00 2.00 5.00 7.00 8.00 8.00 by LIPI (Number) Rationale: Action: This indicator has been Progress to-date and extension of Project closing date (restructuring) has allowed for an increase in the indicator's targets. Revised LIPI coastal monitoring and research infrastructure assets 0.00 1.00 4.00 6.00 7.00 7.00 upgraded (Number) Rationale: Action: This indicator has been Extension of Project closing date (restructuring); final target revised down (from 8 to 7) due to a land status issue on one site, funds reallocated. Revised Management of priority coastal ecosystems (Action: This Component has been Revised) xxxi The World Bank Coral Reef Rehabilitation and Management Program- Coral Triangle Initiative (COREMAP-CTI) (P127813) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 Small ecotourism infrastructure assets, built in 0.00 0.00 0.00 4.00 8.00 8.00 target MPA areas, as per MPA management plans. (Number) Action: This indicator is New Registered community surveillance groups (POKMASWAS) that are 0.00 0.00 0.00 12.00 14.00 18.00 carrying out regular surveillance patrols in target MPA areas. (Number) Action: This indicator is New Provincial ICZM action plan activities implemented in and 0.00 0.00 0.00 8.00 13.00 14.00 around target MPA areas. (Number) Action: This indicator is New Number of management activities from MMAF's National Plans of Action that have been implemented for 0.00 0.00 0.00 6.00 9.00 9.00 Sharks, Cetaceans, and Manta- Rays in target MPA areas. (Number) Action: This indicator is New IO Table SPACE xxxii The World Bank Coral Reef Rehabilitation and Management Program- Coral Triangle Initiative (COREMAP-CTI) (P127813) xxxiii The World Bank Coral Reef Rehabilitation and Management Program- Coral Triangle Initiative (COREMAP-CTI) (P127813)