Public Disclosure Copy The World Bank Implementation Status & Results Report Forestry Development Project (P147760) Forestry Development Project (P147760) EUROPE AND CENTRAL ASIA | Belarus | Environment, Natural Resources & the Blue Economy Global Practice | IBRD/IDA | Investment Project Financing | FY 2015 | Seq No: 10 | ARCHIVED on 09-Nov-2019 | ISR38066 | Implementing Agencies: THE REPUBLIC OF BELARUS, Ministry of Forestry, BellesExport Key Dates Key Project Dates Bank Approval Date: 27-Mar-2015 Effectiveness Date: 30-Jul-2015 Planned Mid Term Review Date: 28-Feb-2018 Actual Mid-Term Review Date: 02-Apr-2018 Original Closing Date: 31-Aug-2020 Revised Closing Date: 31-Aug-2021 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective is to enhance silvicultural management and reforestation and afforestation, increase the use of felling residues and improve the public good contribution from forests in targeted forest areas. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Improving silviculture and the sustainability of forest management:(Cost $36.47 M) Improving forest fire prevention, monitoring, detection and suppression, improving forest management information systems:(Cost $4.88 M) Building the capacity for sustainable forest management (including GEF Project management):(Cost $2.10 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Moderate Moderate Implementation Status and Key Decisions Project implementation is progressing well. Belarus has been able to increase the amount of silvicultural thinning undertaken in young and medium- aged forests, through the use of the new harvesting machinery supported by the project. This will help Belarus create more diverse forests by species and age-class structure, improving their vitality and climate resilience. 11/9/2019 Page 1 of 7 Public Disclosure Copy The World Bank Implementation Status & Results Report Forestry Development Project (P147760) The following type of equipment has also been delivered and installed: all-terrain fire-fighting trucks; utility all-terrain vehicles for transporting forest protection personnel; all-terrain vehicles for forest fire protection; machines for the mechanized cleaning/chopping of branches and wood waste from harvesting sites; video surveillance systems for monitoring and early detection of forest fires; and mobile wood chippers, which will help increase the use of felling residues and develop the use of woody biomass. Three forest nurseries are completed: (i) the Ivatsevichi nursery opened in April 2018, (ii) the Glubokoye nursery opened in October 2018, and (iii) the Minsk Oblast nursery was officially opening in September 2019. These nurseries will improve the quantity and quality of seedlings for afforestation and reforestation. GEF investments include four simulators for training harvester and forwarder operators, equipment enhancing the nursery infrastructure, specialized equipment for forest fire detection, prevention and suppression, and a number of important consultancy assignments to improve forest management capacity. All these activities contribute to improved carbon sequestration and carbon storage of Belarus forests. The Additional Financing (AF) loan (EUR 12 million) became effective on August 9, 2018. The restructuring of the AF Loan was initiated by the Ministry of Forestry since October 2018 and approved by the Bank in April 2019 to help Belarus cope with on-going climate related stresses facing the forestry sector related to the dieback of forest (following a severe windblow event in 2016 and the continued bark beetle infestation). Following it per Bank's procedures, the Restructuring Paper was disclosed and an ISR was also filed consolidating the changes to the Results Framework in the system (end targets were revised for 2 PDO indicators, 2 intermediate indicators and 2 new indicators suggested). Later the Ministry of Forestry confirmed that reallocation of funds remained necessary as described in the letter from the Ministry of Economy (Ref. No. 15-02-09/2906) but that it had intensively mobilized its own resources to respond to the dieback event. Based on that and upon receipt of an official letter in May 2019 from the Deputy Prime Minister of Belarus requested the Bank not to amend the Loan Agreement but to approve the revised RF, the Bank's management cancelled the AF Loan restructuring on June 5th, 2019. In line with the Bank’s policies the Restructuring paper from the website was retracted and changes to the results indicators as requested by the Belarus side were not carried out. The end targets of the 2 PDO Indicators “Amount of carbon (CO2) sequestered (metric tons)” and “Capacity to produce high quality seedlings increased (number of container-grown seedlings per year in project-financed nurseries)”; and 2 Intermediate Indicators: “Nursery lines for container grown seedlings of native tree species established (Number)” and “Number of people trained (Number)” have been reset in the ISR at the values as approved for the AF Loan. This entails that one PDO indicator and 1 intermediate indicator will not be met as set in the end target (only 4 nursery lines will be established not 6 as now planned; and the maximum capacity to produce high quality seedlings could reach 17,000,000 seedlings by 2020 and not 23,700,00 seedlings as now planned). The Bank clarified to the Ministry of Forestry that changing indicators deem not possible at this time as the project is already in its 4th year of implementation. It was agreed that all justification regarding the achievement of the targets will be provided during the preparation of the project implementation completion and results report. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Moderate Moderate Moderate Macroeconomic Moderate Moderate Moderate Sector Strategies and Policies Moderate Moderate Moderate Technical Design of Project or Program Low Low Low Institutional Capacity for Implementation and Sustainability Substantial Moderate Moderate Fiduciary Substantial Substantial Substantial Environment and Social Low Low Low Stakeholders Low Low Low Other -- -- -- Overall Moderate Moderate Moderate 11/9/2019 Page 2 of 7 Public Disclosure Copy The World Bank Implementation Status & Results Report Forestry Development Project (P147760) Results PDO Indicators by Objectives / Outcomes The Project Development Objective is to enhance silvicultural management and reforestation and affor IN00729310 ►Area of young and middle-aged production-forest thinned according to approved management plans (Hectare(Ha), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 132,500.00 136,500.00 110,813.00 165,000.00 Date 27-Mar-2015 30-Jun-2018 01-Jul-2019 31-Aug-2021 The indicator value for Year 4 is slightly behind the planned amount of 165,000 HA. The indicator value Comments: will be updated in the 1st quarter of 2020 as per the annual reporting cycle of the Ministry of Forestry. IN00729311 ►Amount of carbon (CO2) sequestered (Metric ton, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 4,643,384.00 4,398,373.00 3,645,887.00 5,245,627.00 Date 27-Mar-2015 30-Jun-2018 01-Jul-2019 31-Aug-2021 The actual current value for the YR4 was 3 645 887 metric tonnes will still be updated in the CY2019 end as this is the deadline for the Ministry of Forestry to collect and report the indicator. The GEF indicator on the amount of carbon sequestered is now also showing under the PDO indicators as this is the only way Comments: the team could revise the end target in line with the recalculated carbon balance based on the EX-ACT tool. IN00729312 ►Economic performance of participating SFEs enhanced (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 11,405,500.00 17,412,000.00 15,826,000.00 Date 27-Mar-2015 30-Jun-2018 01-Jul-2019 31-Aug-2021 The indicator is on track, it is more than planned amount of 12 723 000. This indicator measures the excess of revenue over expenditures inclusive of all financing sources for participating State Forest Comments: Enterprises. IN00729313 ►Capacity to produce high quality seedlings increased (number of container grown seedlings per year in project-financed nurseries) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1,000,000.00 5,520,000.00 23,700,000.00 Date 27-Mar-2015 30-Jun-2018 01-Jul-2019 31-Aug-2021 The end target was revised as negotiated for AF Loan to be 23.7 million from the value suggested as part of restructuring for AF which was cancelled by WB at the request of Belarus Government. The indicator Comments: actual value as of July 2019 shows the capacity for one rotation of the three forest nurseries in Ivatsevichi, Glubokoe and Minsk. 11/9/2019 Page 3 of 7 Public Disclosure Copy The World Bank Implementation Status & Results Report Forestry Development Project (P147760) IN00729314 ►Average utilizable volume of commercial timber harvested during intermediate felling in targeted SFEs increased (Cubic Meter(m3), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 28.50 32.60 34.50 35.00 Date 27-Mar-2015 30-Jun-2018 01-Jul-2019 31-Aug-2021 The indicator is on track. The Year 4 actual value will be also updated in the 1st quarter of CY20 as this indicator is updated by the Ministry of Forestry on the annual basis. This measures the intensity of the Comments: thinning operations, with an ideal removal rate of around 35m3/ha per thinning operation. Intermediate Results Indicators by Components Improving forest fire prevention, monitoring, detection and suppression, improving forest management information systems IN00729316 ►Reforms in forest policy, legislation or other regulations supported (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 27-Mar-2015 30-Jun-2018 01-Jul-2019 31-Aug-2021 The Ministry of Forestry processed a number of by-laws and decrees to fulfill the provisions of the new Forestry Code since it was introduced in 2017. This also included the clarifications of the forest management activities composition; detailing other types of logging. Procedure for measuring, marking Comments: and accounting of harvested wood has been clarified. The State Program "Belarusian Forest” for 2016- 2020 is under implementation now. Building the capacity for sustainable forest management (including GEF Project management) IN00729317 ►Number of people trained (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 2,243.00 2,496.00 2,311.00 3,000.00 Date 27-Mar-2015 30-Jun-2018 01-Jul-2019 31-Aug-2021 The actual value for Year 4 will be updated in 1st quarter of CY20 based on the annual calendar reporting cycle in the Ministry of Forestry. It includes the number of people who have been trained on the basis of the “Republican Educational Centre for Training, Retraining and Raising the Level of Skill of Forestry Personnel” (Center). Previously the PIU also summed up 2 regional branches of the Center, but it was then decided to include only those Comments: trained on the basis of the Center. The forestry sector in Belarus is male-dominated, but there is an increase in the number of female entering the sector and receiving the required training. The number of female trained is only calculated by the Ministry of Forestry on the annual basis. For Year 4 the data will be available only as of January 30, 2020. IN00729320 11/9/2019 Page 4 of 7 Public Disclosure Copy The World Bank Implementation Status & Results Report Forestry Development Project (P147760) Number of people trained - female (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 110.00 125.00 127.00 150.00 Date 27-Mar-2015 30-Jun-2018 01-Jul-2019 31-Aug-2021 IN00729322 ►Govt institutions provided w/ capacity buildg to improve mgt of forest resources (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 6.00 8.00 11.00 Date 27-Mar-2015 30-Jun-2018 01-Jul-2019 31-Aug-2021 The indicator is on track. It will be updated in 1st quarter of CY20 based on the annual calendar reporting cycle in the Ministry of Forestry. As agreed during the 2018 WB implementation support mission this indicator is measuring the number of organizations (State Forestry Production Associations, the main Comments: organizations subordinate to the Ministry of Forestry) who participated in training seminars dedicated to the new investment technologies and program implementation abroad. IN00729324 ►Project-supported organization(s) publish reports on inputs and effect of consultation and information dissemination activities on project/program/policies (Yes/No) (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 27-Mar-2015 30-Jun-2018 01-Jul-2019 31-Aug-2021 Final reports with results from the three analytical GEF Grant activities are available on the UE “Bellesexport” website. The project progress information is regularly provided on the website of the Ministry of Forestry and the main media forestry journals and magazines (“Belarusian forest newspaper”; magazine “Forestry and Hunting”, “Architecture and Construction”; newspaper “Soviet Belarus-Belarus Comments: today” and “Minskaya Pravda”). Stands on the construction of forest nurseries with visual graphic and text materials are established by district executive committees to inform the local population about the construction of nurseries. IN00729325 ►Direct project beneficiaries (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 37,165.00 37,820.00 35,500.00 Date 27-Mar-2015 31-Dec-2017 01-Jul-2019 31-Aug-2021 The indicator is on track. The end target was revised during the preparation of the AF as 35 500. Also was revised the end target for female beneficiaries to be 17.50%. The actual number for YR4 will be updated as result of the annual reporting in 2019 data collected for this indicator in the Ministry of Forestry on the Comments: annual basis. Direct beneficiaries are number of the forest sector employees (all SFEs, organizations subordinate to the Ministry of Forestry). it is reported by the Ministry of Forestry based on the official statistics of forest sector staff. IN00729326 Female beneficiaries (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 17.30 17.20 17.50 11/9/2019 Page 5 of 7 Public Disclosure Copy The World Bank Implementation Status & Results Report Forestry Development Project (P147760) Improving silviculture and the sustainability of forest management IN00729315 ►Nursery lines for container grown seedlings of native tree species established (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1.00 3.00 6.00 Date 27-Mar-2015 30-Jun-2018 01-Jul-2019 31-Aug-2021 The Year 4 actual value has been updated based on the semi-annual progress report. It now includes all three seed lines in the 3 forest nurseries - Ivatsevchi (opened in April 2018), Glubokoe (opened in October 2018) and Minsk (opened in September 2019). The end target value was retracted as part of AF Comments: restructuring cancellation to 6 nursery lines although the total number of financed nursery lines will be 4 as per the Ministry of Forestry priorities and needs. IN00729318 ►Improved thinning regime developed (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 27-Mar-2015 30-Jun-2018 01-Jul-2019 31-Aug-2021 Indicator is on track. The use of small harvesters and forwarders (VIMEK) purchased under the project continue to contribute to the introduction of new technologies for forest thinning operations. As of now, all Comments: units of machinery were supplied to the SFEs. IN00729321 ►New areas outside protected areas managed as biodiversity-friendly (ha) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1,226,700.00 4,443,500.00 4,440,592.00 4,500,000.00 Date 27-Mar-2015 30-Jun-2018 01-Jul-2019 31-Aug-2021 The indicator is on track. The area of mixed stands under the authority of the Ministry of Forestry is Comments: indicated, with the exception of specially protected natural areas (forest reserves and natural monuments). Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P147760 IBRD-84740 Effective USD 40.71 40.71 0.00 40.17 0.55 99% P147760 IBRD-88210 Effective USD 14.40 14.40 0.00 1.59 12.70 11% P152636 TF-A1173 Effective USD 2.74 2.74 0.00 1.42 1.32 52% 11/9/2019 Page 6 of 7 Public Disclosure Copy The World Bank Implementation Status & Results Report Forestry Development Project (P147760) Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P147760 IBRD-84740 Effective 27-Mar-2015 02-Apr-2015 30-Jul-2015 31-Aug-2020 31-Aug-2021 P147760 IBRD-88210 Effective 12-Mar-2018 11-Apr-2018 09-Aug-2018 31-Aug-2021 31-Aug-2021 P152636 TF-A1173 Effective 02-Apr-2015 02-Apr-2015 30-Jul-2015 31-Aug-2020 31-Aug-2021 Cumulative Disbursements Restructuring History Level 2 Approved on 17-Sep-2018 ,Level 2 Approved on 09-Apr-2019 Related Project(s) P152636-Forestry Development Project ,P165121-Belarus Forestry Development Project - Additional Financing 11/9/2019 Page 7 of 7