Public Disclosure Copy The World Bank Implementation Status & Results Report Carbon Asset Development - Methane Recovery from Waste Mgmt Project (P152805) Carbon Asset Development - Methane Recovery from Waste Mgmt Project (P152805) EAST ASIA AND PACIFIC | Philippines | Environment & Natural Resources Global Practice | Recipient Executed Activities | Investment Project Financing | FY 2016 | Seq No: 4 | ARCHIVED on 17-Jun-2019 | ISR31805 | Implementing Agencies: The Land Bank of the Philippines, The Land Bank of Philippines Key Dates Key Project Dates Bank Approval Date:07-Oct-2015 Effectiveness Date:28-Oct-2015 Original Closing Date:30-Jun-2019 Revised Closing Date:30-Jun-2019 Project Development Objectives Project Development Objective (from Project Appraisal Document) The objective of the Project is to assist Land Bank of the Philippines (LBP) with the development of carbon assets for purchase by the Carbon Partnership Facility (CPF). Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Moderately Satisfactory  Moderately Satisfactory Overall Implementation Progress (IP)  Moderately Unsatisfactory  Moderately Unsatisfactory Implementation Status and Key Decisions This project assists Land Bank of the Philippines with a small grant for the development and management of carbon assets for purchase by the World Bank under an associated project with Land Bank on Methane Recovery from Waste Management, specifically from pig farms and landfills. Land Bank has carried out a series of training and information events for its staff and its clients, and the inclusion of pig farms and landfills in the two CDM program has been completed. 6/17/2019 Page 1 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Carbon Asset Development - Methane Recovery from Waste Mgmt Project (P152805) 6/17/2019 Page 2 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Carbon Asset Development - Methane Recovery from Waste Mgmt Project (P152805) Risks Overall Risk Rating Risk Category Rating at Approval Previous Rating Current Rating Overall  --  Moderate  Moderate Results Project Development Objective Indicators PHINDPDOTBL Compliance with the CER delivery schedule in the ERPA for pig farm (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 3.63 5.00 100.00 Date 01-Oct-2015 31-Dec-2017 31-Dec-2018 30-Jun-2019 Comments As of 31 December 2018, the PoA Piggery has a total of 21,088 CERs or 5.00% of the minimum ERPA commitment for the year ending 2018 (see Table 1) that was delivered to the WB registry. Pending verification, the PoA has also realized a total of 20,274 ERs or 4.81% (see Table 2) of the minimum ERPA commitment (in addition to the delivered CERs) as of December 2018. Table 1. Percentage Delivery as per the Annual Schedule of PoA Piggery Crediting Year Minimum CERs for Total CERs Delivered Percentage Delivery by LBP to WB Registry (Gross of UNFCCC Costs) 2014 6,594 0 0.00 2015 19,440 0 0.00 6/17/2019 Page 3 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Carbon Asset Development - Methane Recovery from Waste Mgmt Project (P152805) 2016 43,506 0 0.00 2017 232,630 21,088 9.07 2018 421,754 21,088 5.00 An additional 20,274 ERs have been realized in 2018 but not yet verified as CERs for 2018. The reduced expected CER delivery for PoA Piggery may be attributed to the reduction in the number of farms which were eventually included in the CDM program, as well as delays in commissioning date of the biodigester systems. As such, the projected CER delivery has been affected through a decrease in the actual CER delivery period, from 6 years to merely 1- or 3-year period. In general, it has been observed that most piggery farm owners focus on pig production rather than the construction of the biogas system. Various technical concerns (e.g. biogas production, biogas system design, monitoring system glitches, and calamities) also contributed to the decrease in the ERs generated. Based on detailed calculations of feasible emission reductions, revised emission reduction targets will be agreed with Carbon Fund Participants, on the basis of which the ERPAs will be adjusted. The CER delivery schedule will then automatically improve. PHINDPDOTBL Compliance with the CER delivery schedule in the ERPA for landfills (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 28.62 100.00 Date 01-Oct-2015 31-Dec-2017 31-Dec-2018 30-Jun-2019 Comments POA Minimum CERs ERs Realized (Gross of % vs Total CERs Delivered % vs for Delivery by UNFCCC Costs) target by LBP to WB Registry target 31 Dec 2020 CERs (Net of UNFCCC Costs) CERs 6707 - MMPC 683,174 125,303 18.34 -- 6707 – PGEP expansion 16,810 2.46 -- TOTAL 683,174 142,113 20.80 -- 0 As per the table above, there were 142,113 ERs realized but not yet verified and issued as CERs In addition, the Pangea Stand-Alone Project (CDM 1258) has been able to generate a total of 341,798 ERs (verified and issued as CERs by UNFCCC) among which 228,801 CERs have been delivered as of 31 December 2018. The remaining 106,160 CERs are scheduled for delivery pending the processing of the name change on the part of Pangea. PoA/Project No. period ERs Verified CERs Delivered Remarks to UNFCC 1258 01 Jan 2013 – 31 Dec 2013 96,182 94,258 Total: ~170,784 (Payatas Stand-Alone) Only 160,000 were delivered in 1st p 1258 01 Jan 2014 – 31 Dec 2014 78,088 76,526 Remaining 10,784 for carry-over nex (Payatas Stand-Alone) 1258 01 Jan 2015 – 30 Jun 2016 87,144 85,401 Total (+carry over): 96,185 (Payatas Stand-Alone) Only 68,801 were delivered in 2nd p 6/17/2019 Page 4 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Carbon Asset Development - Methane Recovery from Waste Mgmt Project (P152805) Remaining 27,384 for carry-over nex 1258 01 Jul 2016 – 31 Jan 2018 80,384 78,776 Total (+carry-over): 106,160 (Payatas Stand-Alone) Total pending delivery due to signat TOTAL 341,798 334,961 From the 334,961 CERs submitted to UNFCC, 228,801 have been issued, the remaining 106,160 will be issued after the name change has been registered. In total, in 2018, the minimum amount of CERs that was agreed to be delivered was 799,326,the 228,801 issued CERs represent a percentage of 28,62 percent. Overall Comments Intermediate Results Indicators PHINDIRITBL Staff training (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 8.00 11.00 12.00 Date 01-Apr-2015 31-Dec-2017 31-Dec-2018 30-Jun-2019 Comments In 2018, four (4) trainings were attended by LBP staff. The World Bank invited LBP to attend the roll-out of WB’s new Environmental and Social Framework (ESF). Four (4) LBP personnel attended the 1-day presentation (20 February 2018), while one (1) personnel attended the 2-day training (February 21-22, 2018). Two (2) personnel attended the Training on Involuntary Resettlement in October 2018 by the University of the Philippines (UP). In November 2018, an international training in Chiang Mai, Thailand was attended by one (1) LBP staff. The technical visit provided additional knowledge and understanding on waste-to-energy projects, particularly, landfill gas recovery and animal waste recovery system technologies. 6/17/2019 Page 5 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Carbon Asset Development - Methane Recovery from Waste Mgmt Project (P152805) PHINDIRITBL Manager training (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 8.00 11.00 8.00 Date 01-Apr-2015 31-Dec-2017 31-Dec-2017 30-Jun-2019 Comments Two (2) managers attended the 1-day WB ESF roll-out/briefing for managers, while another two (2) managers attended the 2-day training in February 2018. PHINDIRITBL Technology assessment for pig farms (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 3.00 1.00 Date 01-Apr-2015 31-Dec-2017 31-Dec-2018 30-Jun-2019 Comments Available biogas technology in the Philippines lacks a standard, and differ widely from each supplier. Hence, it was difficult to establish a standard biogas technology which practitioners agree upon. In addition, biogas technology providers tend to be wary in sharing their technology details, as these count as their “trade secret”. Furthermore, US EPA conducted two (2) technology assessments for the PoA Piggery and one (1) assessment dedicated solely for Marcela Farms, Inc in 2013 and 2014. It was discussed in one of his reports that there is lack of local capacity to conduct operation and maintenance for other technologies such as anaerobic digesters. PHINDIRITBL Technology assessment for landfills (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 3.00 1.00 Date 01-Apr-2015 31-Dec-2017 31-Dec-2018 30-Jun-2019 Comments Various landfills in the Philippines were considered for inclusion. As discussed in the 2015 CFD, there are only 14 sanitary landfills constructed to receive more than 200 tons/day of waste (Category 4) out of 134 total sanitary landfills in the country or about 10%, as of September 2014. Because of the low CER prices and the short period for an assured fixed price from the Carbon Partnership Fund, projects with flaring only are not feasible. To do a project with commercial power generation, it is ideal to have a sizeable waste of about at 6/17/2019 Page 6 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Carbon Asset Development - Methane Recovery from Waste Mgmt Project (P152805) least 500,000 tons and an acceptance rate above 200 tons/day to be financially viable. Assessments were conducted by USEPA (2013, 2014 and 2015)to determine the feasibility of each landfill to produce enough biogas PHINDIRITBL Document preparation for pig farms (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 52.00 68.00 125.00 Date 01-Apr-2015 31-Dec-2017 31-Dec-2018 30-Jun-2019 Comments The current count for documents prepared for pig farms include the 63 CPA-DDs plus the PoA-DD (#64). Revisions of the PoA-DD (#65) and DDs for CPA 01 (#66), CPA 02 (#67) and CPA 10 (#68) were also prepared to reflect the PRC methodology approved in June 2017, for a total of 68 documents prepared for PoA Piggery. PHINDIRITBL Document preparation for landfills (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 3.00 3.00 4.00 Date 01-Apr-2015 31-Dec-2017 31-Dec-2018 30-Jun-2019 Comments The current count for documents prepared for landfills remains at 3 CPA-DDs. While several potential landfills were visited all over the Philippines, only three of them qualified for the CDM program. Moreover, only CPA 02 and CPA 03 are currently contributing to the ER generation under CPF. 6/17/2019 Page 7 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Carbon Asset Development - Methane Recovery from Waste Mgmt Project (P152805) PHINDIRITBL National forum (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1.00 1.00 3.00 Date 01-Apr-2015 31-Dec-2017 31-Dec-2018 30-Jun-2019 Comments Only one (1) National Forum has been conducted in December 2015. The following year, six (6) regional roadshows were held to market the Program. The regional format has been found to create more engagement with the piggery farm owners and other participants. Taking this cue, the team opted to organize focus group discussions (FGDs) in 2017 to cater to the needs of the piggery farms and be more effective in addressing their specific needs and concerns. Another set of roadshows were held in 2018 to conduct monitoring training to the participating farms. PHINDIRITBL Road shows for pig farms (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 26.00 44.00 7.00 Date 01-Apr-2015 31-Dec-2017 31-Dec-2018 30-Jun-2019 Comments In 2016, regional roadshows were conducted in six (6) strategic locations to market the CFSF Program: Baguio City, Clarkfield, Pampanga and Batangas City in Luzon; Cebu City in Visayas; and Cagayan de Oro City and Davao City in Mindanao. The regional format has been found effective in engaging the piggery farm owners and other participants. In 2018, another set of roadshows (total of 18) were held to provide the piggery farm staff and owners more understanding of the registration process, monitoring, and documents to be submitted for inclusion PHINDIRITBL Road shows for landfills (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 12.00 3.00 Date 01-Apr-2015 31-Dec-2017 31-Dec-2018 30-Jun-2019 Comments Roadshows and site visits to potential SLF for inclusion were conducted since 2014. During these visits, the SLF sites were assessed for 6/17/2019 Page 8 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Carbon Asset Development - Methane Recovery from Waste Mgmt Project (P152805) their suitability for PoA inclusion, as well as the willingness of the landfill managers to participate in the CFSF program. Out of the 12 SLF sites visited, three were eventually registered as CPA while only two continue to contribute to the CDM program: CPA 02 - MMPC and CPA 03 - Pangea expansion. PHINDIRITBL Marketing materials (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 2.00 4.00 3.00 Date 01-Apr-2015 31-Dec-2017 31-Dec-2018 30-Jun-2019 Comments Various marketing strategies and materials were used to fast-track and inform the public about the waste-to-energy programs of LBP. Part of its communications and marketing plan is to develop new sets of brochures for each of the two (2) PoAs. A press release for the Sub- project Purchase Agreement (SPA) agreement signing between LBP and the two CPAs (MMPC and Pangea) was published in May 2017 in Philippine Star, one of the country’s most widely circulated newspaper. On social media, a 1-minute cartoon video was posted on LBP’s official Facebook page to illustrate LBP’s facility for POA Piggery. Aside from these, Executive Vice President of Land Bank had a 30- minute interview on LBP’s program in DZRH radio station on 16 May 2016 and 22 August 2017. DZRH is the country’s radio station with the widest coverage/reach PHINDIRITBL Monitoring and information system (MIS) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1.00 1.00 2.00 Date 01-Apr-2015 31-Dec-2017 31-Dec-2018 30-Jun-2019 Comments A monitoring and information system in the program level was developed. A program database for the CFSF team in LBP was established to use as a “shared folder” to store PoA and CPA data for LBP management and staff to access data at any time. Likewise, the similar database was developed to CPA 01 and CPA 02, which will also be implemented to the rest of the CPAs. 6/17/2019 Page 9 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Carbon Asset Development - Methane Recovery from Waste Mgmt Project (P152805) PHINDIRITBL Monitoring equipment for pig farms (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 1.00 Date 01-Apr-2015 31-Dec-2017 31-Dec-2018 30-Jun-2019 Comments The first two (2) CPAs under PoA Piggery, CPA 01 – Marcela and CPA 02 – Biotech were recipients of the Global Methane Initiative (GMI) grant. They were provided with complete monitoring system that includes flowmeters, data loggers, and flare devices to be used in their biogas electricity generation system. Due to wear and tear over time, the monitoring equipment are non-functioning. An automated monitoring system was planned for the included pig farms, but, this did not push through with the supplier (failed bidding). Instead, a manual monitoring system is implemented with consultants conducting the pig farm visit PHINDIRITBL Inclusion and verification support for pig farm (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 100.00 100.00 100.00 Date 01-Apr-2015 31-Dec-2017 31-Dec-2018 30-Jun-2019 Comments The CADF grant has been very instrumental in providing the necessary support for all the included pig farms. Without the grant, it would be very difficult for the farms to be verified or included in the program since LANDBANK is enabled to provide assistance through logistics, hiring of consultants and conduct of monitoring activities using the CADF grant. Furthermore, through the CADF grant, LBP was able to assist the pig farms in the documentation, permitting requirements, and technical support for them to be included and operate. In addition, the renewal of the crediting period is proposed to be shouldered by CADF for the continued participation of the PoA Piggery in ER generation. PHINDIRITBL Inclusion and verification support for landfills (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 100.00 100.00 100.00 Date 01-Apr-2015 31-Dec-2017 31-Dec-2018 30-Jun-2019 6/17/2019 Page 10 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Carbon Asset Development - Methane Recovery from Waste Mgmt Project (P152805) Overall Comments The CADF grant has been useful in supporting the included SLFs. Activities conducted with the help of the grant include coordination and logistical support in the conduct of monitoring and verification activities. Trainings were also held for the SLF staff in CDM methodology, and consultants were able to provide technical advice. Moreover, the crediting period shall be renewed, and included in the CADF proposal for extension. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P152805 TF-19049 Effective USD 0.41 0.41 0.00 0.26 0.15 64% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P152805 TF-19049 Effective 12-Oct-2015 28-Oct-2015 28-Oct-2015 30-Jun-2019 30-Jun-2019 Cumulative Disbursements Restructuring History 6/17/2019 Page 11 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Carbon Asset Development - Methane Recovery from Waste Mgmt Project (P152805) There has been no restructuring to date. Related Project(s) There are no related projects. 6/17/2019 Page 12 of 12 Public Disclosure Copy