The World Bank Report No: ISR10520 Implementation Status & Results Congo, Democratic Republic of BCF - IBI Carbon Sink - Bateke (P096414) Public Disclosure Copy Operation Name: BCF - IBI Carbon Sink - Bateke (P096414) Project Stage: Implementation Seq.No: 2 Status: ARCHIVED Archive Date: 07-Oct-2013 Country: Congo, Democratic Republic of Approval FY: 2010 Product Line: Carbon Offset Region: AFRICA Lending Instrument: Implementing Agency(ies): Key Dates Board Approval Date 04-Aug-2009 Original Closing Date 31-Dec-2018 Last Archived ISR Date 02-Jul-2012 Effectiveness Date 04-Aug-2009 Revised Closing Date 31-Dec-2018 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Moderately Unsatisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Unsatisfactory Moderately Satisfactory Overall Risk Rating Implementation Status Overview On May 1st, 2013, a mission composed by Laurent Valiergue (Sr. Carbon Finance Specialist, CPFCF), Simon Rietbergen (Sr. Forestry Specialist, AFTN1), Antoine Lema (Sr. Social Development Specialist, AFTCS), Loïc Braune (NRM specialist, AFTN1), Abdoulaye Gadiere (consultant, AFTN3) traveled to the Democratic Republic of Congo (DRC). The objective of the mission was to supervise the BioCF Ibi Bateke project. The mission met with staff of NOVACEL, the private company in charge of implementing the Ibi Bateke project. The Ibi Bateke BioCF project is an afforestation/reforestation CDM project aiming at producing firewood and/or charcoal, through: - Planting of 3896.80 hectares (Acacia sp, Eucalyptus sp, Pinus sp.) associated to cassava based on an innovative agroforestry model, - Natural regeneration of forests (232.80 ha), with an annual sequestration of 54,511 tons of CO2 over the period 2008-2037. The project was registered under the Clean Development Mechanism by the UNFCCC on February 18th, 2011. The project is one of the first reforestation projects to reach this milestone in Africa, and the first in Central Africa. In November 2011, the project prepared its first Monitoring Report, which presented detailed information on planting per stratum, as well as carbon sequestration figures, based on an inventory carried out by NOVACEL following the CDM methodological guidelines for monitoring. This report was updated in Public Disclosure Copy October 2012 evidencing a sequestration of around 7,000 metric tonnes of CO2 since the previous year (production area: 1244.80 ha). The BioCarbon Fund (BioCF) signed an ERPA (Emission Reductions Purchase Agreement) with NOVACEL on August 4, 2009. This contract was amended on July 9, 2012. According to the contractual arrangements, the BioCF seeks to acquire half of the removals to be generated until December 2017 (80 000 tonnes). The other half was purchased by ORBEO, since absorbed by Solvay Energy Services. Undercapitalized, NOVACEL is facing recurrent difficulties in financing its activities, although it benefited from loans (Suez, Umicore) and prepayments (BioCF, Orbeo) of carbon credits to be received over the period 2008-2017. Today, only the sale of cassava (chips, flour) ensures the survival of the company. As a result, only 1012.42 hectares were planted to date since 2008, resulting in a net balance (sequestration - emission) of CO2 across the project close to zero at the end of 2012. Installed plantation types as of May 1st, 2013: Page 1 of 2 The World Bank Report No: ISR10520 Eucalyptus sp.: 38.93ha Acacia sp.: 908.95ha Pinus sp.: 41.15ha Local species: 23.39 ha Public Disclosure Copy Natural regeneration: 232.46ha Total area generating removals (CO2): 1244.80ha The scope of the mission was to look at the implementation (implemented by the NGO GI-AGRO) of mitigation actions as derived from the EIA, while checking the quality of the Social Development Plan (although no social OP was triggered). Both items were assessed as satisfactory to the World Bank group. Locations Country First Administrative Division Location Planned Actual Congo, Dem Rep Ville de Kinshasa Maluku Congo, Dem Rep Not Entered Bankana Key Decisions Regarding Implementation The next step for Novacel is to protect the existing asset value (fight against bush fires) while trying to increase it by planting new surfaces within the CDM project boundary. The Forest Investment Program could potentially be an opportunity. A management plan has to be completed. At the social and environmental level, a series of recommendations were detailed in the Aide-Mémoire. Related Projects There are no related projects. Public Disclosure Copy Page 2 of 2