The World Bank Report No: ISR13744 Implementation Status & Results Brazil Espirito Santo Biodiversity and Watershed Conservation and Restoration Project (P094233) Public Disclosure Copy Operation Name: Espirito Santo Biodiversity and Watershed Conservation and Project Stage: Implementation Seq.No: 3 Status: ARCHIVED Archive Date: 10-Mar-2014 Restoration Project (P094233) Country: Brazil Approval FY: 2009 Product Line: Global Environment Project Region: LATIN AMERICA AND CARIBBEAN Lending Instrument: Specific Investment Loan Implementing Agency(ies): Key Dates Board Approval Date 18-Nov-2008 Original Closing Date 30-Jun-2012 Planned Mid Term Review Date 14-Mar-2012 Last Archived ISR Date 09-Jul-2013 Effectiveness Date 10-Aug-2005 Revised Closing Date 31-Dec-2014 Actual Mid Term Review Date 18-Apr-2012 Global Environmental Objectives Global Environmental Objective (from Project Appraisal Document) The Project Development Objective i s to support the adoption o f environmentally friendly landuse practices on 3,400 hectares in two key Atlantic Forest watersheds in Espirito Santo, thereby contributing to biodiversity conservation. Key indicators include: Increase in area (3,400 has) under sustainable land use practices’ (SLMs). Which will be accomplished in part through the: (i) establishment and implementation o f institutional arrangements for payment mechanisms for watershed conservation; and (ii) supporting the adoption o f Sustainable Land Management (SLM) practices through the implementation o f Payment for Environmental Services mechanisms and the participation and capacity building o f local actors. The Global Environment Objective i s to reduce threats to globally important biodiversity (for example, the endangered Muriqui monkey) from agricultural production systems and increase habitat for species in two key rainforest watersheds o f the Atlantic Forest. Key indicators include: Area o f critical habitat restored and/or protected from encroachment; which will be accomplished in part through the: (i) implementation o f sustainable market-based mechanisms to finance Protected Areas (PA) management and conservation o f biodiversity in agricultural landscapes. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Public Disclosure Copy Component Name Component Cost Strengthening Watershed Management 2.65 Targeted Biodiversity Protection and Protected Area (PA) Management 4.46 Integrating Biodiversity in Production Landscapes 2.97 Monitoring and Evaluation, and Project Management 1.92 Overall Ratings Previous Rating Current Rating Progress towards achievement of GEO Satisfactory Satisfactory Page 1 of 10 The World Bank Report No: ISR13744 Previous Rating Current Rating Overall Implementation Progress (IP) Moderately Unsatisfactory Moderately Satisfactory Overall Risk Rating Moderate Low Public Disclosure Copy Implementation Status Overview The second restructuring has been approved, extending the Closing Date to December 31, 2014, which will enable the two large contracts to be implemented successfully. New disbursement requests have been submitted to the Bank in the amount. The Bank is preparing the arrangements to operationalize the transfer of funds to the Biodiversity sub- account of the Water Fund (FUNDAGUA) for the PES payments. Despite slow disbursement of Global Environment Fund funds the Espirito Santo Biodiversity and Watershed Conservation and Restoration Project has had an impact on conservation beyond that expected at the outset of the project. The passing of one of the first State level Payment for Environmental Services laws in Brazil was a direct result from the consultations and the technical assistance the project has been able to impart. The creation of the Water Resources Fund with 3% of the royalties originating from oil and gas exploration has also benefited from this support. Through the project the State has committed to scaling up the effort initiated under the project and has committed to doubling the natural forest cover of the state through the launch of the Reflorestar Program which essentially scales up the current project's objectives with the ambitious goal of reforesting 30,000 has with native species in water critical areas. Two large contracts have been awarded. The first is preparing the Watershed Management Plans working closely with the Jucu and the Santa Maria Watershed Committees. The second contract has started the modeling exercise with the University of Washington and is already showing results. A student from the Federal University of Espirito Santo spent three months in training at UW, data collection has started in earnest with the state agencies (INCAPER, GeoBases, IEMA). A kickoff meeting has officially launched the initiative with all major stakeholders attending. The project has launched PES schemes and land holders are actively participating and continue to receive technical visits to their properties. The first payments were officially launched by Governor Renato Casagrande with payments being made against a PES contract. The identification of critical areas for biodiversity conservation and the establishment of private nature reserves (RPPN) are contributing to the achievement of the GEO. Plans for impact evaluation are well advanced. As the PES program initiated under this project will continue under the new recently negotiated Integrated Sustainable Development Project, it was decided to similarly continue the impact evaluation under that project, thus giving enough time for impacts to be observed. The water utility CESAN is fully on board and actively participating in the pilot Mangarai watershed. Locations Country First Administrative Division Location Planned Actual Brazil Estado de Espirito Santo Vitoria ✔ Brazil Not Entered Rio Santa Maria da Vitória Brazil Not Entered Rio Jucu Public Disclosure Copy Brazil Not Entered Estado de Espírito Santo Brazil Not Entered Pedra Azul Results Global Environmental Objective Indicators Page 2 of 10 The World Bank Report No: ISR13744 Indicator Name Core Unit of Measure Baseline Current End Target New areas outside protected areas managed Number Value 0.00 130.00 1000.00 as biodiversity-friendly (ha) Date 10-Mar-2009 26-Dec-2013 31-Dec-2014 Public Disclosure Copy Comments 5 RPPN have been created; 4 are in the process of being created; Land owners continue expressing interest in creating RPPNs. Area of critical habitat restored and/or Hectare(Ha) Value 0.00 130.00 1000.00 protected from encroachment Date 10-Mar-2009 26-Dec-2013 31-Dec-2014 Comments 5 RPPN have been created; 4 are in the process of being created; Land owners continue expressing interest in creating RPPNs. Market-based mechanisms to finance Text Value No Yes Yes Protected Areas (PA) management Date 10-Mar-2009 26-Dec-2013 31-Dec-2014 implemented Comments PES criteria and rules continue in use to calculate the amount payable to rural producers. Conservation of biodiversity in agricultural Text Value No Yes Yes landscapes implemented Date 10-Mar-2009 31-Dec-2013 31-Dec-2014 Comments The first cohort of payments have been made. Intermediate Results Indicators Public Disclosure Copy Page 3 of 10 The World Bank Report No: ISR13744 Indicator Name Core Unit of Measure Baseline Current End Target 2 watershed management committees Number Value 0.00 0.00 2.00 strengthened Date 10-Mar-2009 26-Dec-2013 31-Dec-2014 Public Disclosure Copy Comments Contract for the Watershed Management Plans was signed and work has begun. Contract for the hydrological modeling was signed. The Univ Washington has had several missions including an official launch. Modeling has begun in earnest. 3 of 4 reports have been filed. Plenary established Text Value No Plenary Plenary established and Plenary established meeting with regularity Date 10-Mar-2009 26-Dec-2013 31-Dec-2014 Comments The plenary was established Indicator reached Indicator reached during the first year. Definitive directorate elected Text Value No Yes Date 07-Jun-2013 31-Dec-2013 Comments Indicator reached Indicator reached Ecological and Economic Zoning (ZEE) for Text Value None Zee under implementation ZEE delivered & watersheds formulated and officially adopted implemented by participating municipalities Date 10-Mar-2009 26-Dec-2013 31-Dec-2014 Comments University of Lavras was ZEE was found to be at too contracted by the State to coarse a scale and will be undertake the ZEE updated with the new finer scale mapping allowing for planning at the municipal level. Public Disclosure Copy Critical biodiversity conservation areas and Text Value None Modeling in full swing. Data Areas selected and critical water supply areas identified and some collection in the field has intervened selected for project intervention transpired. Preliminary results are being circulated Date 10-Mar-2009 26-Dec-2013 31-Dec-2014 Comments Contract for the modeling exercise has been signed and Univ. Washington is in full swing. Page 4 of 10 The World Bank Report No: ISR13744 Water resource monitoring system Text Value Incipient system in place Water monitoring stations Water resource monitoring implemented and providing critical information have provided information for system implemented to local, state, and national water resource the modeling effort. Further manager s hydro-met stations will soon Public Disclosure Copy be deployed. Date 26-Dec-2013 31-Dec-2014 Comments INCAPER has a few Technical specifications for monitoring stations spread out another set of monitoring throughout the state stations is being prepared by IEMA. Vegetative cover monitoring system Text Value None Under implementation. First Vegetative cover monitoring implemented and information available to the results are being circulated for system implemented general public technical vetting. Date 10-Mar-2009 26-Dec-2013 31-Dec-2014 Comments Land use mapping of the two watersheds is still being finalized given difficult weather conditions which did not allow for the low altitude flight paths over the mountainous area. Management Plan for Pedra Azul State Park Text Value Previous plan outdated Plan being contracted Updated Management Plan under implementation with workplan under implementation established and monitored Date 10-Mar-2009 26-Dec-2013 31-Dec-2014 Comments No Objection issued for Consultant services contract for work in the Park is being prepared by State. Management Council for Pedra Azul State Park Text Value Inexistent Mgmt Council established and Mgmt Council established established and functioning with quarterly functioning meetings Date 10-Mar-2009 26-Dec-2013 31-Dec-2014 Public Disclosure Copy Comments Meetings are being held. Financial instrument for biodiversity Text Value None Biodiversity sub-account in Funds for Biodiversity conservation selected and implemented the Water Fund being Conservation established created. Date 10-Mar-2009 26-Dec-2013 31-Dec-2014 Comments Biodiversity sub-account in the Water Fund being created. Page 5 of 10 The World Bank Report No: ISR13744 8 Private Natural Heritage Reserves (RPPNs) Number Value 0.00 5.00 8.00 established Date 10-Mar-2009 26-Dec-2013 31-Dec-2014 Comments 5 RPPN created; 4 are in the Public Disclosure Copy process of being created; Several more land owners expressed interest in creating RPPNs. 1,000 ha of severely degraded areas recovered Hectare(Ha) Value 0.00 130.00 1000.00 Date 10-Mar-2009 26-Dec-2013 31-Dec-2014 Comments Payments are being made. With the finer scale mapping a more strategic implementation approach is being implemented allowing for identifying critical areas. 300 landholders receiving Technical Number Value 0.00 396.00 300.00 Assistance on Sustainable Land Management Date 10-Mar-2009 26-Dec-2013 31-Dec-2014 (SLM) Comments Indicator reached. 396 landholders are being serviced by INCAPER and the FpV team 60 trainers (20 extension officials from Number Value 0.00 60.00 60.00 municipalities and 40 members of technical Date 10-Mar-2009 26-Dec-2013 31-Dec-2014 associations and NGOs) trained on SLM Comments Training events have continued for extension agents through INCAPER. 4 experimental stations on SLM implemented Number Value 0.00 1.00 4.00 Date 10-Mar-2009 26-Dec-2013 31-Dec-2014 Comments Two properties in the watersheds are used as Public Disclosure Copy reference point by farmers. An agreement with the owners of these properties is being finalized to serve as a SLM demonstration area. Short-term PES payment plan established for Text Value None Done Done sustainable land use practices Date 10-Mar-2009 26-Dec-2013 31-Dec-2014 Comments Short term payment plan has been established and is being implemented. 5th June the Page 6 of 10 The World Bank Report No: ISR13744 first payment was effectively made with the presence of the Governor. 160 landholders receiving short-term PES Number Value 0.00 90.00 160.00 Public Disclosure Copy Date 10-Mar-2009 26-Dec-2013 31-Dec-2014 Comments The process of updating the Forest Code had the effect of having a number of landholders dropping out under the impression that they would not need to recover any of the riparian zones. This was reverted by a Presidential veto and now the interest to participate has been rekindled and farmers are signing up. Especially now with the positive signal of payments effectively being made. Percent increase in the number of properties Percentage Value 0.00 226.00 certified for organic production or in the Date 10-Mar-2009 26-Dec-2013 31-Dec-2014 process thereof (cumulative) Comments 68 rural properties in the Through technical assistance watersheds of Jucu and provided in part with Project Santa Maria are certified support 154 farmers are now organic certified organic with an area of approximately 2860 ha. A functioning PES program targeted toward Text Value None PES Program under Functioning PES program protection of critical areas for water service implementation supplies in the Jucu and Santa Maria da Vit Date 10-Mar-2009 26-Dec-2013 31-Dec-2014 ória watersheds Comments The first payments following the stipulations of the Public Disclosure Copy regulations for the PES law were just made. The modeling exercise will allowfor improving the selection of priority areas. Main water users identified and engaged in the Text Value None Main water users identified Main water users identified program and engaged Date 10-Mar-2009 26-Dec-2013 31-Dec-2014 Comments The main water user CESAN is fully engaged with staff Page 7 of 10 The World Bank Report No: ISR13744 dedicated to working on the upper watersheds. There has been little traction with other water users (HEP, Mining Public Disclosure Copy Sector, Ports Authority). It is expected that the modeling will be able to show some concrete scenarios that will help increase their engagement. 160 landholders (40 in each of the 4 micro- Number Value 0.00 90.00 160.00 basins) receiving payments for ecosystem Date 10-Mar-2009 26-Dec-2013 31-Dec-2014 services Comments A PES scheme was not Farmers are receiving both present in the State prior to long term and short term the project. payments. The process of updating the Forest Code had the effect of a number oflandholders dropping out thinking they would not need to recover any degraded areas or protect conservation areas on their properties. The final version of the law did not transpire as such and now the interest to participate has been rekindled and farmers are signing up. Especially now with the positive signal of payments effectively being made. A project-level M&E Framework established Text Value None TOR and questionaire A project-level M&E and providing timely and relevant information to prepared Framework established the decision making bodies governing land use Date 10-Mar-2009 26-Dec-2013 31-Dec-2014 of the watersheds Public Disclosure Copy Comments A questionnaire for the baseline survey has been prepared, along with TORs for the survey firm. Contracting is expected to occur shortly, with the survey being conducted in Q1 of FY14. Page 8 of 10 The World Bank Report No: ISR13744 Regional-level Information System covering the Text Value None Regional level information Functioning Regional-level Jucu and Santa Maria da Vitória basins system being built and tested Information System established and providing timely & relevant in Date 10-Mar-2009 26-Dec-2013 31-Dec-2014 formation to the watershed decision making Public Disclosure Copy Comments The Portal Capixaba de bodies governing land us Gestao das Aguas e da Paisagem is being built. Data is being pooled together with various collaborators across the state agencies. Project Management Team set up and working Text Value None Team set up and improved Team set up effectively with administrative support staff added to the team Date 10-Mar-2009 26-Dec-2013 31-Dec-2014 Comments The Project Implementation Unit continues to be small and stretched thin especially with the launch of the Reflorestar Program. Administrative support is being provided by the Aguas Limpas PIU. The field teams have been reinforced through the Reflorestar Programwith technical staff from INCAPER however those resources have also been used in other directions. The collaboration agreement withTNC has made it possible for the project to actually get farmers signed up and being paid. Best practices and lessons learned Text Value None disseminated in the municipalities of the State Public Disclosure Copy Date 10-Mar-2009 26-Dec-2013 31-Dec-2014 and to other states Comments The Reflorestar Program has benefited from the lessons learned in implementing this project and has now been launched in the state with payments to farmers having been made. Data on Financial Performance (as of 10-Feb-2014) Page 9 of 10 The World Bank Report No: ISR13744 Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P094233 TF-55569 Closed 10-Aug-2005 10-Aug-2005 10-Aug-2005 01-Jul-2006 31-Oct-2006 Public Disclosure Copy P094233 TF-93210 Effective 11-Dec-2008 11-Dec-2008 10-Mar-2009 30-Jun-2012 31-Dec-2014 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P094233 TF-55569 Closed USD 0.20 0.20 0.00 0.20 0.00 100.00 P094233 TF-93210 Effective USD 4.00 4.00 0.00 0.75 3.25 19.00 Disbursement Graph Public Disclosure Copy Key Decisions Regarding Implementation None. Restructuring History Level 2 RVP Decision on 26-Dec-2013 Related Projects There are no related projects. Page 10 of 10