Public Disclosure Copy The World Bank Implementation Status & Results Report Sustainable Production Systems and Conservation of Biodiversity (P145621) Sustainable Production Systems and Conservation of Biodiversity (P145621) LATIN AMERICA AND CARIBBEAN | Panama | Agriculture Global Practice | Global Environment Project | Investment Project Financing | FY 2015 | Seq No: 9 | ARCHIVED on 05-Dec-2018 | ISR34262 | Implementing Agencies: Ministerio de Ambiente (MIAMBIENTE), Ministerio de Economia y Finanzas Key Dates Key Project Dates Bank Approval Date: 09-Feb-2015 Effectiveness Date: 04-Feb-2016 Planned Mid Term Review Date: 30-Mar-2018 Actual Mid-Term Review Date: 10-Apr-2018 Original Closing Date: 30-Dec-2019 Revised Closing Date: 30-Dec-2019 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The proposed global environmental objective is to conserve globally significant biodiversity through improved management effectiveness of the project protected areas and biodiversity mainstreaming in the buffer zones. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Sustainable Management of Protected Areas:(Cost $15.16 M) Biodiversity and Sustainable Productive Landscapes:(Cost $6.81 M) Knowledge Management, Training, and Communications:(Cost $5.17 M) Project Management:(Cost $1.83 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Moderate Moderate Implementation Status and Key Decisions This update is based on a desk review of preliminary progress assessment reported by the Project Implementation Unit at MIAMBIENTE up to the end of October 2018. An implementation support mission is scheduled for December 10-14, 2018. After startup delays, the Project continues to make good progress towards the achievement of its PDO and implementation of project activities is also progressing well under all components with significant advances and results already achieved on the ground. One major result achieved since the last mission in April 2018 is the completion of the process that established the Endowment Fund (to support the sustainable management of Protected Areas in Panama) as evidenced by the 12/5/2018 Page 1 of 6 Public Disclosure Copy The World Bank Implementation Status & Results Report Sustainable Production Systems and Conservation of Biodiversity (P145621) transfer in October 2018 of the US$1.5 million GEF contribution to its capitalization after the disbursements conditions were successfully met by the Project. Good progress with results on the ground for the beneficiaries is also reflected in the increase in the disbursement level of the GEF Grant that stood at 70 percent (US$6.71 million) compared to 41 percent in April 2018. With less than 13 months left before the project closing date of December 30, 2019, there is a need to (a) sustain the accelerated pace of implementation to ensure that the Project achieves successfully its stated objectives and results by the end of 2019; and (b) use the limited time left to also develop a strategy to ensure the sustainability the Project’s results and achievements. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- Moderate Moderate Macroeconomic -- Low Low Sector Strategies and Policies -- Moderate Moderate Technical Design of Project or Program -- Moderate Moderate Institutional Capacity for Implementation and Sustainability -- Moderate Moderate Fiduciary -- Moderate Moderate Environment and Social -- Moderate Moderate Stakeholders -- Moderate Moderate Other -- Low Low Overall -- Moderate Moderate Results PDO Indicators by Objectives / Outcomes Conserve globally significant biodiversity through improved mgmt effectiveness of Protected Areas IN00582687 ►Areas brought under enhanced biodiversity protection (ha) (Hectare(Ha), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 362,817.00 550,000.00 Date 01-May-2014 -- 10-Apr-2018 30-Dec-2019 66 percent of the end target. This significant increase in the area under enhanced biodiversity because of project interventions was assessed using the GEF-Tracking Tool applied between December 2017 and April 2018 as part of the preparation of the MTR assessments. Park Rangers in 12 protected areas have been trained (with delivery of Park Ranger Diploma) in the areas of environmental and natural resource Comments: management, environmental sustainability, reporting, use of specialized equipment (GPS, compass, camera traps, drones, forest fire fighting, motor boats, etc.). Further progress with this indicator will be assessed using the final application of the GEF-Tracking Tool at the time of project closing in December 2019. 12/5/2018 Page 2 of 6 Public Disclosure Copy The World Bank Implementation Status & Results Report Sustainable Production Systems and Conservation of Biodiversity (P145621) Conserve globally significant biodiversity through biodiversity mainstreaming in buffer zones IN00582688 ►Landscapes certified by internationally or nationally recognized environmental standards that incorporate biodiversity considerations (ha) (Hectare(Ha), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 1,200.00 Date 01-May-2014 -- 10-Apr-2018 30-Dec-2019 No change with this indicator despite good progress with the certification process currently underway for (918 Ha) that includes cocoa, coffee and plantain plantations (918 Ha or 76 percent of the end target of 1200 Ha). Because of the nature of the certification processes (e.g., organic, rain forest, fair trade, green Comments: seal) that is lengthy and time-consuming, the completion of these processes with the final obtaining of the certifications for the 1,200 hectares are now expected only during the second half of 2019. Intermediate Results Indicators by Components Sustainable Management of Protected Areas IN00582681 ►Endowment fund to support sustainable management of PAs established and operating (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 90.00 100.00 Date 01-May-2014 -- 31-Oct-2018 30-Dec-2019 90 percent of the end project target. The Trust Fund for Water, Protected Areas and Forest Life (also known as the Super Fund) was established on July 11, 2017 through Executive Decree 69 with the Endowment Fund (EF) to enhance the sustainable management of PAs as one of its windows. The initial capitalization of the EF has been made effective and already received contributions in a total amount of Comments: US$7.5 Million (US$4.3 M from the government and US$2.7 from the private firm AES) and well exceeding the initial target of at least US$3.5 M. The disbursement conditions for the GEF contribution (US$1.5 M) met in late August 2018 and the transfer of the US$1.5 M made effective on Oct 25, 2018. The start of operations of the EF is expected to begin in the 4th quarter of 2018. IN00582674 ►Number of operating concessions for administration or services to support the management of 3 PAs (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 2.00 3.00 Date 01-May-2014 29-Sep-2017 31-Oct-2018 30-Dec-2019 66 percent of end target. After some delays, two concessions (National Park Division General Omar Comments: Torrijos and National Park Altos de Campana) under Ecotourism schemes are now in place. IN00582683 ►Number of PAs where the SNIMDB is implemented (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 3.00 -- 6.00 8.00 Date 01-May-2014 -- 31-Oct-2018 30-Dec-2019 12/5/2018 Page 3 of 6 Public Disclosure Copy The World Bank Implementation Status & Results Report Sustainable Production Systems and Conservation of Biodiversity (P145621) 75 percent of the end target. To date, the implementation of National Biodiversity Information and Monitoring System has been initiated in 4 protected areas. In 2018, two additional protected areas (Cerro Comments: Hoya National Park and Altos de Campana National Park) will be incorporated into the National Biodiversity Information and Monitoring System. Biodiversity and Sustainable Productive Landscapes IN00582675 ►Producer association groups implement at least 30 sub-projects (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 22.00 30.00 Date 01-May-2014 -- 31-Oct-2018 30-Dec-2019 73 percent of the end target. 22 subprojects are currently under implementation by producer groups for the promotion of agroforestry systems (e.g. improvement of cocoa farm production through the Comments: implementation of good agricultural and environmentally friendly practices, using organic fertilization, natural shade harvesting, increased productivity to stop expansion of the agricultural frontier, etc.). IN00582682 ►Two business alliances with buyers for marketing of biodiversity-friendly products are established (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 2.00 2.00 Date 01-May-2014 -- 31-Oct-2018 30-Dec-2019 100 percent of the end target. Business partnerships established with COCABO and COOBANA, cooperatives dedicated to the export of cacao (Swiss market, USA, other European countries) and Comments: banana (German market). New partnerships are being explored to access new markets (with domestic supermarkets). IN00582684 ►Number of municipalities that have implemented activities in their environmental plans (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 6.00 Date 01-May-2014 -- 10-Apr-2018 30-Dec-2019 0 percent of the end target. A total of 4 plans have been designed and the 4 subprojects resulting from these plans are expected to start implementation and to be fully completed in the second half of 2018. The Comments: design of 2 additional municipal plans is well underway and they are expected to generate two additional subprojects to be fully implemented in 2019. IN00582689 ►Direct project beneficiaries (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 62,355.00 80,000.00 Date 01-May-2014 -- 31-Oct-2018 30-Dec-2019 129 percent of the original end target of 48,450 and 78 percent of the revised end target of 80,000. The current beneficiary population is the result of interventions in the Municipalities of Capira and Chame. Comments: Based on the current status of implementation of sub-project and preparation of municipal plans, the end- target has been revised upward from 48,450 to 80,000 during the MTR. IN00582691 Female beneficiaries (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target 12/5/2018 Page 4 of 6 Public Disclosure Copy The World Bank Implementation Status & Results Report Sustainable Production Systems and Conservation of Biodiversity (P145621) Value 0.00 -- 45.00 50.00 Knowledge Management, Training, and Communications IN00582685 ►Number of outreach or educational activities to promote the benefits of biodiversity and the public’s role in conservation (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 37.00 50.00 Date 01-May-2014 -- 31-Oct-2018 30-Dec-2019 123 percent of the original end target of 30 and 74 percent of the revised end target of 50. Based on the current status of implementation of outreach activities and the additional ones under preparation, the end- Comments: target has been revised upward from 30 to 50 during the MTR. IN00582686 ►Analysis of financial gap for the entire PA system published (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 1.00 Date 01-May-2014 -- 31-Oct-2018 30-Dec-2019 The study is currently underway. The final report is expected by the end of December 2018. Comments: IN00582690 ►At least one biodiversity-friendly product (i.e., coffee, cacao, orange, or banana) receives bio-labels and/or denomination of origin. (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 1.00 Date 01-May-2014 -- 31-Oct-2018 30-Dec-2019 The procurement process to recruit the TA needed to support and facilitate achievement of Comments: the certification has been initiated. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P145621 TF-18972 Effective USD 9.59 9.59 0.00 6.71 2.88 70% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P145621 TF-18972 Effective 09-Feb-2015 09-Jul-2015 04-Feb-2016 30-Dec-2019 30-Dec-2019 12/5/2018 Page 5 of 6 Public Disclosure Copy The World Bank Implementation Status & Results Report Sustainable Production Systems and Conservation of Biodiversity (P145621) Cumulative Disbursements Restructuring History Level 2 Approved on 21-Jul-2015 Related Project(s) There are no related projects. 12/5/2018 Page 6 of 6