Public Disclosure Authorized Public Disclosure Authorized The World Bank Implementation Status & Results Madagascar Third Environment Program Support Project (P074235) Operation Name: Third Environment Program Support Project (P074235) Project Stage: Implementation Seq.No: 20 Status: ARCHIVED Archive : 04-Oct-2014 Country: Madagascar Approval FY: 2004 Product Line: IBRD/IDA Region: AFRICA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Key s Board Approval 11-May-2004 Original Closing 31-Dec-2009 Planned Mid Term Review Last Archived ISR 16-Feb-2014 Effectiveness 13-Sep-2004 Revised Closing Actual Mid Term Review 13-Jul-2007 Project Development Objectives Third Environment Program Support Project (P074235) Project Development Objective (from Project Appraisal Document) To Enhance the protection and sustainable management of targeted protected areas. Has the Project Development Objective been changed since Board Approval of the Program? Yes No losure Authorized Public Disclosure Authorized Madagascar Third Environment Program Support Project (P074236) Global Environmental Objective (from Project Appraisal Document) The global objective of the project is to contribute to the presevation of the quality of regional and global commons through improved natural resources management and biodiversity protection in critical ecological regions, defined as national protected areas and their corresponding buffer zones and corridors. Has the Global Environmental Objective been changed since Board Approval of the Program? Yes No Support to Madagascar's Foundation for Protected Areas and Biodiversity (P113976) Global Environmental Objective (from Project Appraisal Document) To contribute to the preservation of the quality of regional and global commons through improved natural resource management and biodiversity protection in critical ecological regions, defined as national protected areas and their corresponding buffer zones and corridors. Has the Global Environmental Objective been changed since Board Approval of the Program? Yes No Page 1 of 8
Component(s) Component Name Component Cost Protected Area and Landscape Management 16.00 Local Community Support and Development 14.00 Sustainable Financing Mechanisms for Protected Areas and Landscapes 10.00 Project Management, Monitoring and Evaluation 3.00 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Moderately Unsatisfactory Moderately Unsatisfactory Progress towards achievement of GEO Satisfactory Satisfactory Overall Implementation Progress (IP) Moderately Unsatisfactory Moderately Satisfactory Overall Risk Rating Implementation Status Overview In accordance with the recommendations of the Mid-Term Review (MTR), which took place in July-October 2013, the Additional Financing (AF) to the Third Environmental Program support project (EP3) was restructured so as to improve project performance and monitoring, and to allow the implementation of key activities. The results framework was updated and a reallocation between components allowed, inter alia, the financing of activities for the management of precious wood stockpiles. These include the financing of studies aimed at developing an action plan to dispose of illegal precious wood stocks, as well as coastal surveillance activities. A new restructuring was done in June 2014 to allow the financing of law enforcement operations in the fight against illegal precious woods exports. Recent developments include the finding of possible procurement irregularities in community micro-project implementation. A post-procurement review of contracts executed by Service Providers was undertaken by the Bank during the month of June 2014. The review indicated that a number of irregular practices may have affected a large number of small contracts. Disbursements under this activity have now been suspended until further notice and assurance that funds will not be diverted from the purpose they are meant to serve. The project is undertaking an in-depth review of micro-projects to assess whether services have been delivered as expected. The Bank team has recommended a value-for-money audit of this sub-component and encourages the project to proceed rapidly with this activity. *Progress towards PDO* The project results framework has 4 outcome level indicators and 17 intermediate level indicators. As of June 2014, at the outcome level, three indicators were showing progress, with (i) 100 percent of the protected areas expected to be targeted by FAPBM co-financing receiving their contribution; (ii) 93 percent of households targeted by community microprojects around protected areas receiving support (although activities are now on hold, following recent evidence of irregularities, and the indicator is subject to revision once the project s review on the ground is completed); (iii) 87 percent of female beneficiaries receiving community support (same consideration as above applies). Relatively poor progress is recorded by the indicator on (iv) level of threat in protected areas, the mission noted an increase in pressure on protected areas (measured by the number of bushfires detected). The problem has been particularly acute in the semi-dry region of the Mikea protected area and the project has submitted a plan, now validated by the team, to strengthen control mechanisms and preventive measures in the park. Progress in achieving the PDO remains "moderately unsatisfactory", although with a tendency towards improvement. The rating will be revised once further clarity is achieved with respect to the actual achievements on the community support activities (i.e. (ii) and (ii)) and threat levels (i.e. (iv)). At the intermediate indicator level, the mission wants to highlight progress on the following: Page 2 of 8
Despite initial delays, activities supporting communities living around protected areas have considerably picked up speed since the MTR. However this result will be reassessed in light of recent findings of procurement irregularities on the part of service providers in some project areas. Ecotourism and conservation infrastructure works have started, and are all expected to be completed before December 2014. Significant progress has been made in the process of establishing ecotourism concessions within PAs managed by Madagascar National Parks (MNP). MNP selected four PAs that will be subject to concessions. A task force consisting of MNP representatives, the World Bank and the private sector was established in December 2013 to monitor the awarding of concessions. Calls for expressions of interest were launched for the concessions, as well as for the recruitment of a firm to provide support to MNP throughout this process. A shortlist of private firms has been made. A draft contract template and terms of reference for the concessions are being validated by the administration. It is expected that by the end of 2014, one out of four scheduled concessions will be awarded. The study on the reform of PAs managed by MNP has also progressed, with the establishment in February 2014 of a steering committee to manage the process, as recommended during the MTR. Since then, the Call for Expressions of Interest for the study has been launched, and TORs reviewed and approved by the committee. The selected firm has started its work on September 9 2014 and the study results should be delivered by the beginning of December 2014. However, the mission also highlights a relative weakness on: The level of days of co-patrolling with local communities (55 percent of the target) The number of management transfer contracts signed (43 percent) The number of people affected by project being compensated (47 percent) *Implementation and disbursement* During the MTR, the Project Coordination Unit (UCPE) prepared a dashboard of activities to be achieved by March 2014, which was approved by the World Bank. This dashboard was established specifically with the objective of closely monitoring project performance in terms of implementation and speed of disbursement in the short term. This tracking tool showed, during the March-April 2014 implementation support mission, that the project has not only improved its planning and monitoring capacities, but also considerably increased the speed of implementation. On March 15, 2014, the dashboard showed that out of 25 indicators, only 3 suffered delays, while the implementation of activities relating to 2 indicators were postponed for technical reasons. The situation recorded as on June 30, 2014 was slightly worse, with 5 indicators being behind schedule, but confirmed a sustained level of overall implementation speed. As a result, the project implementation performance is now rated as "Moderately Satisfactory". The rating will be reassessed during the next implementation support mission. Despite improvements in the speed of implementation and because of various delays, it is now expected that by December 31, 2014, the project's undisbursed funds may reach approximately US $ 7 million. Locations Country First Administrative Division Location Planned Actual Madagascar Not Entered Tahiry Nanaharin' i Zahamena Madagascar Not Entered Farihy Tsimanampetsotsa Madagascar Not Entered Alan' ny Mikea Page 3 of 8
Country First Administrative Division Location Planned Actual Madagascar Not Entered Midongy Atsimo Madagascar Not Entered Tahiry Manokan' i Kirindy Madagascar Not Entered Foret de Kalambatritra Madagascar Not Entered Tsingin' i Bemaraha Madagascar Not Entered Belo Madagascar Not Entered Baie de Baly Madagascar Not Entered Tahiry Nanahary Antsingin'i Namoroka Madagascar Not Entered Tahiry Nanaharin' Ankarafantsika Madagascar Not Entered Alan Ambohitra Madagascar Not Entered Andasibe-Mantadia National Park Madagascar Not Entered Andringitra National Park Madagascar Not Entered Masoala National Park Madagascar Not Entered Montagne d'ambre National Park Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Surface of Protected Area network with Hectare(Ha) Value 130000.00 1050000.00 1050000.00 recurrent costs co-funded from revenues from the combined project endowment and previous EP3(IDA) endowment to the Foundation Page 4 of 8
Number of households adjacent to the Protected Areas that have benefitted from park, natural resource and livelihood activities Number Value 0.00 83558.00 90000.00 11-Jan-2012 30-Jun-2014 This result is subject to verification after misprocurement was identified in some microprojects. PIU estimates a possible downward correction of 20% PIU estimated new target, after accounting for actual populations being targeted, to be in the order of 86000. Of which female beneficiaries Number Value 0.00 208895.00 240000.00 30-Jun-2014 This result is subject to verification after misprocurement was identified in some microprojects. PIU estimates a possible downward correction of 20% Global Environmental Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Level of threat in project supported PAs Number Value 870.00 1763.00 270.00 (number of fires declared) 11-Jan-2012 31-Dec-2013 Fires particularly concentrated in Mikea PA. A response plan has been prepared. Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Weighted management effectiveness tracking Percentage Value 60.00 68.00 71.00 tool score for targeted protected areas 11-Jan-2012 30-Jun-2014 After MTR, the indicator was changed from a simple to a weighted average. Consequently, baseline was revised. Number of surveillance grids monitored in 30 Number Value 0.00 209196.00 176308.00 national parks and 3 corridors 11-Jan-2012 30-Jun-2014 Page 5 of 8
Number of paid patrolling days of local Number Value 0.00 70192.00 126861.00 surveillance committees Km of Protected Area boundaries materialized Kilometers Value 0.00 4595.00 7224.00 and maintained 11-Jan-2012 30-Jun-2014 Target revised at MTR. Conservation infrastructures built or renovated Number Value 0.00 2.00 34.00 Study on the reform of the PA network Yes/No Value No No Yes managed by MNP 11-Jan-2012 30-Jun-2014 Study launched on September 9, 2014 Number of affected households (PAP) that Number Value 0.00 5852.00 12414.00 benefitted from social safeguards sub-projects Number of PAs with a restructured Park Number Value 0.00 20.00 30.00 Support Committee and strengthened technical capacity Number of management transfer contracts Number Value 0.00 43.00 173.00 established or renewed Ratio of the operational costs of FAPBM to the Percentage Value 21.00 20.00 20.00 amount of financing delivered to PAs Km of tourism circuits equipped to operational Kilometers Value 0.00 98.00 60.00 standards 31-Jan-2012 30-Jun-2014 Number of concessions signed with the private Number Value 0.00 0.00 1.00 sector Number of established community ecotourism Number Value 0.00 0.00 13.00 projects 11-Jan-2012 30-Jun-2014 Page 6 of 8
Km of access roads delivered Kilometers Value 0.00 94.00 Number of reference scenarios for emissions linked to deforestation defined for the Eastern Humid Forest ecoregion Number of validated studies on the strategy of illicit rosewood stockpile management Index of management efficiency of PCU in implementation and monitoring of project 11-Jan-2012 Number Value 0.00 0.00 3.00 11-Jan-2012 30-Jun-2013 Number Value 0.00 0.00 3.00 Number Value 60.00 70.00 90.00 Target revised at MTR Data on Financial Performance (as of 15-Sep-2014) Financial Agreement(s) Key s Project Ln/Cr/Tf Status Approval Signing Effectiveness Original Closing Revised Closing P074235 IDA-49650 Effective 21-Jun-2011 12-Oct-2011 26-Mar-2012 P074235 IDA-H0870 Closed 11-May-2004 21-May-2004 13-Sep-2004 31-Dec-2009 31-Dec-2011 P113976 TF-10466 Effective 12-Oct-2011 12-Oct-2011 12-Oct-2011 P074236 TF-53226 Closed 21-May-2004 21-May-2004 13-Sep-2004 01-Jan-2079 31-Dec-2011 P074235 TF-93177 Effective 08-Jun-2012 13-Jun-2012 13-Jun-2012 13-Jun-2016 13-Jun-2016 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P074235 IDA-49650 Effective USD 42.00 42.00 0.00 26.41 13.18 63.00 P074235 IDA-H0870 Closed USD 40.00 39.44 0.56 40.29 0.00 102.00 P113976 TF-10466 Effective USD 1.88 10.00 0.00 10.00 0.00 100.00 P074236 TF-53226 Closed USD 1.88 8.83 0.17 8.83 0.00 100.00 P074235 TF-93177 Effective USD 1.88 1.88 0.00 0.37 1.51 20.00 Disbursement Graph Page 7 of 8
Key Decisions Regarding Implementation With respect to community development micro-projects, the decision is to analyze the results of (i) the value-for-money audit, and (ii) the PIU s assessment of service delivery to beneficiaries throughout the project area, with the aim of assessing the extent of actual irregularities that have taken place, identify remedial and preventive actions and assess an eventual continuation of activities. Support policy dialogue on increasing the financial sustainability of Madagascar's protected area network. MNP treasury challenges continue to be a concern in the near future. The study on the reform of PAs managed by MNP will propose optimal management arrangements for the network so as to reduce dependency on external aid. However, as results will only be available in early December 2014, the recommendations will not be implemented before the scheduled closing of the EP3 AF in December 2014. Utilize project resources to support the work against precious woods traffic. The project will support the Government in: (i) preparing a precious wood stockpile use plan to be presented to CITES before December 2014; (ii) undertake law enforcement activities inland and along the coast (with the possible support of satellite-based monitoring); (iii) plan the audit of rosewood stockpiles that are still unseized. Restructuring History There has been no restructuring to date., Level two Approved on 10-Feb-2014, Level 2 CD Decision on 30-Jun-2014 Related Projects P074236-Madagascar Third Environment Program Support Project, P093721-Madagascar Biodiversity Corridor Carbon Finance Project, P107484-Madagascar Additional Finance-3rd Environmental Program, P113976-Support to Madagascar's Foundation for Protected Areas and Biodiversity Page 8 of 8