Document of
                                           The World Bank

                                     FOR OFFICIAL USE ONLY

                                                                                                  Report No: 81003 - BR




                                     RESTRUCTURING PAPER

                                                   ON A

                            PROPOSED PROJECT RESTRUCTURING

                                                     OF

                  THE TOCANTINS SUSTAINABLE CERRADO PROJECT


               GRANT FROM THE SUSTAINABLE CERRADO INITIATIVE


                                                  TO THE

                                       STATE OF TOCANTINS

                                               June 10, 2013




Sustainable Development Unit
Brazil Country Management Unit
Latin American and Caribbean Region


This document has a restricted distribution and may be used by recipients only in the performance of their
official duties. Its contents may not otherwise be disclosed without World Bank authorization.
Regional Vice President:       Hasan Tuluy, LCRVP
      Country Director:        Deborah Wetzel, LCC5C
       Sector Manager:         Karin Kemper, LCSEN
     Task Team Leader:         Bernadete Ribas Lange




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                                   BRAZIL
                        SUSTAINABLE CERRADO INITIATIVE

                   TOCATINS SUSTAINABLE CERRADO PROJECT

                                   P091827 / TF096766

                         RESTRUCTING PAPER – LEVEL 2


The purpose of this level two restructuring is to extend the Closing Date of the Brazil:
Tocantins Sustainable Cerrado Project (GEF, TF096766) from June 31, 2013 to December
2, 2013.

The Tocantins Sustainable Cerrado Project is part of the Sustainable Cerrado Initiative that
addresses global environmental biodiversity protection priorities, through decentralized
actions together with an integrated, biome-wide coordination, and it is consistent with GEF-
3 Strategic Objectives. The Tocantins Sustainable Cerrado Project is financed by a GEF
Grant in the amount of US$3.0 million. The grant was declared effective on September 13,
2010. To date, the Project has disbursed US$1,522,716.81 (50.76% of the grant amount).
Most of the remaining funds have already been committed and are expected to be fully
disbursed by November 2013.

The proposed amendment is based on a request from the recipient dated January 14, 2013,
that was endorsed by the Ministry of the Environment’s (MMA) on January 25, 2013; and
by the Brazilian Overseas Finance Commission’s (COFIEX) on May 9, 2013.

This will be the first extension of the Closing Date for this Project. The reason for this
extension is to fully execute and finance contracts under implementation and to carry out a
broad evaluation of the Project’s results and intermediaries indicators.

The design of the components and activities will remain the same and the project is
expected to reach its intended objectives, although the scope of the outcome (250,000 ha in
new protected areas) will ultimately depend on the commitment of both Federal and Stage
Governments). Major accomplishments to date include: (i) strengthening of protection of
existing protected areas; (ii) implementation of new policies on water resources, fauna, and
environmental regularization of rural properties, including specific systems ready to be
used; and (iii) development of proposals for the creation of new protected areas.

As result of the Project implementation, Tocantins Government has being able to strengthen
the dialog and engage with relevant environmental agencies and local actors that are key for
the achievement of the Project’s objective.

Based on provision of OP13.30, the Bank team confirms that: (i) the project objectives
continue to be achievable; and (ii) the performance of the recipient is moderately
satisfactory. Procurement post-review and financial management missions were carried out,
and the arrangements in place were considered moderately satisfactory.



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