The World Bank Report No: ISR8061 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: 1 Status: ARCHIVED Archive Date: 04-Apr-2013 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): CESAN, IEMA, INCAPER 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 Effectiveness Date 10-Aug-2005 Revised Closing Date 31-Dec-2013 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 Page 1 of 11 The World Bank Report No: ISR8061 Previous Rating Current Rating Overall Implementation Progress (IP) Moderately Satisfactory Overall Risk Rating Moderate Public Disclosure Copy Implementation Status Overview 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 law 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 underway and is committed to doubling the natural forest cover of the state through the Reflorestar Program which has benefited directly from the this project and has embarked on the ambitious goal of reforesting 30,000 has with native species in water critical areas. 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 Brazil Not Entered Estado de Espírito Santo Brazil Not Entered Pedra Azul Results Global Environmental Objective Indicators Public Disclosure Copy Page 2 of 11 The World Bank Report No: ISR8061 Indicator Name Core Unit of Measure Baseline Current End Target Area of critical habitat restored and/or Hectare(Ha) Value 0.00 109.00 1000.00 protected from encroachment Date 10-Mar-2009 21-Dec-2012 31-Dec-2013 Public Disclosure Copy Comments Restoration of critical habitat is tied to implementation of the PES mechanism on rural properties identified for this purpose. Given the initial delay in implementing PES there was a delay in restoration of critical habitats. The areas identified correspond toPrivate Protected Areas (RPPN) and areas of forest regeneration. 3 RPPN have been created; 3 are in the process of being created; Several land owners expressed interest in creating RPPNs. Market-based mechanisms to finance Text Value No Yes Yes Protected Areas (PA) management Date 10-Mar-2009 21-Dec-2012 31-Dec-2013 implemented Comments New PES criteria and rules have been established and are in use to calculate the amount payable to rural producers. Conservation of biodiversity in agricultural Text Value No Under implementation Yes landscapes implemented Date 10-Mar-2009 21-Dec-2012 31-Dec-2013 Comments Identified rural properties that have signed up have started adopting biodiversity friendly Public Disclosure Copy land use practices. Intermediate Results Indicators Page 3 of 11 The World Bank Report No: ISR8061 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 21-Dec-2012 31-Dec-2013 Public Disclosure Copy Comments Contract is ready to be awarded for the Watershed Management Plans. Contract for the hydrological modeling received N.O. from Bank and was submitted to the Univ Washington. Plenary established Text Value No Plenary Plenary established Plenary established Date 10-Mar-2009 21-Dec-2012 31-Dec-2013 Comments The plenary was established Indicator reached Indicator reached during the first year. Definitive directorate elected Text Value No Yes Yes Date 21-Dec-2012 31-Dec-2013 Comments Indicator reached Indicator reached Ecological and Economic Zoning (ZEE) for Text Value None ZEE delivered & under ZEE delivered & watersheds formulated and officially adopted implementation implemented by participating municipalities Date 10-Mar-2009 21-Dec-2012 31-Dec-2013 Comments University of Lavras was ZEE officially delivered to contracted by the State to Governor by the University of undertake the ZEE Lavras in December 2010. ZEE has had limited use due to equipment issues which is being resolved. Newly elected municipal officials being trained on use of ZEE. Critical biodiversity conservation areas and Text Value None Some areas selected and Areas selected and critical water supply areas identified and some intervened intervened Public Disclosure Copy selected for project intervention Date 10-Mar-2009 21-Dec-2012 31-Dec-2013 Comments The identification of these areas will be made possible through the hydrodynamic modeling. Contract for the modeling exercise has received No Objection from Bank. Page 4 of 11 The World Bank Report No: ISR8061 Water resource monitoring system Text Value Incipient system in place Under implementation Water resource monitoring implemented and providing critical information system implemented to local, state, and national water resource Date 21-Dec-2012 31-Dec-2013 manager s Public Disclosure Copy Comments INCAPER has a few IEMA in partnership with monitoring stations spread out INCAPER has structured the throughout the state hydro-meteorological network increasing its management capacity. New stations have been purchased and are being installed. Another set is being ordered. Vegetative cover monitoring system Text Value None Under implementation Vegetative cover monitoring implemented and information available to the system implemented general public Date 10-Mar-2009 21-Dec-2012 Comments Land use mapping of the two watersheds practically finalized under a BRL3.6m counterpart funded contract Management Plan for Pedra Azul State Park Text Value Previous plan outdated Plan being implemented Updated Management Plan under implementation with workplan under implementation established and monitored Date 10-Mar-2009 21-Dec-2012 31-Dec-2013 Comments Consultant services contract being reviewed by the Bank, No Objection imminent. 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 21-Dec-2012 31-Dec-2013 Comments Election of Council held 19 May 2010. Meetings are being held. Financial instrument for biodiversity Text Value None Different instruments Funds for Biodiversity Public Disclosure Copy conservation selected and implemented identified and being analyzed Conservation established Date 10-Mar-2009 21-Dec-2012 31-Dec-2013 Comments Water Fund analyzed as a long term financial source for biodiversity conservation. New Legislation on PES and the corresponding regulatory instruments which allows for the use of resources for SLM practices was submitted and Page 5 of 11 The World Bank Report No: ISR8061 approved by the state legislature. 8 Private Natural Heritage Reserves (RPPNs) Number Value 0.00 4.00 8.00 established Public Disclosure Copy Date 10-Mar-2009 21-Dec-2012 31-Dec-2013 Comments 3 RPPN created; 3 are in the process of being created; Several land owners expressed interest in creating RPPNs. 1,000 ha of severely degraded areas recovered Hectare(Ha) Value 0.00 109.00 1000.00 Date 10-Mar-2009 21-Dec-2012 31-Dec-2013 Comments With regulatory instruments approved PES payments are just beginning to be made on selected farms. 300 landholders receiving Technical Number Value 0.00 360.00 300.00 Assistance on Sustainable Land Management Date 10-Mar-2009 21-Dec-2012 31-Dec-2013 (SLM) Comments Indicator reached. 360 landholders are being serviced by INCAPER and the FpV team 60 trainers (20 extension officials from Number Value 0.00 30.00 60.00 municipalities and 40 members of technical Date 10-Mar-2009 21-Dec-2012 31-Dec-2013 associations and NGOs) trained on SLM Comments Training events have continued for extension agents through INCAPER the partner Ecological Corridors Project and visiting TA teams: (a) Mr. Enrique Restrepo, Coordinator for the Agro- silvopastoral Project in Public Disclosure Copy Colombia; (b) Rural property diagnostics with the LERF team of Piracicaba, Sao Paulo. 4 experimental stations on SLM implemented Number Value 0.00 1.00 4.00 Date 10-Mar-2009 21-Dec-2012 31-Dec-2013 Comments INCAPER’s Fazenda Jucuruapa research station Page 6 of 11 The World Bank Report No: ISR8061 has been identified as a demonstration unit for SLM. Short-term PES payment plan established for Text Value None Done Done sustainable land use practices Public Disclosure Copy Date 10-Mar-2009 21-Dec-2012 31-Dec-2013 Comments Short term payment plan has been established and is being implemented. The missing regulatory instrument was signed 21.12.2012, which allows for disbursement against PES. Simulation model developed by Accenture (Vale sponsorship) to support the implementation offriendly land use practices has been instrumental in the TA to rural producers. 160 landholders receiving short-term PES Number Value 0.00 82.00 160.00 Date 10-Mar-2009 21-Dec-2012 31-Dec-2013 Comments 82 landholders are receiving orientation on how to participate in the short term PES program. Another 96 are awaiting a technical visit to initiate their participation. Percent increase in the number of properties Percentage Value 0.00 205.00 certified for organic production or in the Date 10-Mar-2009 21-Dec-2012 31-Dec-2013 process thereof (cumulative) Comments 68 rural properties in the Through the technical watersheds of Jucu and assistance provided in part Santa Maria are certified with Project support it had organic 140 all within the Project area Public Disclosure Copy with 2600 ha. A change in local organic certification law has forced some NGOs, including Chão Vivo to change their strategy. This has forced them to move out of the region. INCAPER is working to fill this potential gap. Page 7 of 11 The World Bank Report No: ISR8061 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 21-Dec-2012 31-Dec-2013 ória watersheds Public Disclosure Copy Comments The rules and premises for PES are in use for calculating the values to be paid rural land holders who are protecting and recovering degraded areas strategic for water resources. The regulations for the PES law were just approved opening the way for disbursementsin the field. The modeling exercise will allow for 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 21-Dec-2012 31-Dec-2013 Comments The main water user CESAN is fully engaged with staff dedicated to working on the upper watersheds. Other water users (HEP, Mining Sector, Ports Authority) have been contacted and are exploring ways of engagement. 160 landholders (40 in each of the 4 micro- Number Value 0.00 82.00 160.00 basins) receiving payments for ecosystem Date 10-Mar-2009 21-Dec-2012 31-Dec-2013 services Comments A PES scheme was not 82 rural producers are Public Disclosure Copy present in the State prior to receiving orientation on how the project. to participate in the project. Another 96 rural properties have been registeredand are awaiting a technical visit to be officially included in the Program. With the regulatory instruments now in place these payments should be effective in the first trimester of 2013. Page 8 of 11 The World Bank Report No: ISR8061 A project-level M&E Framework established Text Value None TOR finalized A project-level M&E and providing timely and relevant information to Framework established the decision making bodies governing land use Date 10-Mar-2009 21-Dec-2012 31-Dec-2013 of the watersheds Public Disclosure Copy Comments The TORs for a consultancy to undertake this task has been finalized and a bid will be offered in January. Regional-level Information System covering the Text Value None Contracting underway Functioning Regional-level Jucu and Santa Maria da Vitória basins Information System established and providing timely & relevant in Date 10-Mar-2009 21-Dec-2012 31-Dec-2013 formation to the watershed decision making Comments A small scale map of the two bodies governing land us watersheds is practically finalized resulting from recent flyovers and will be an integral part of analyzing land use patterns on the properties participating in the PES scheme. IDAF's information system has been customized and is providing detailed level of information to decision makers in the watersheds. Project Management Team set up and working Text Value None Team set up Team set up effectively Date 10-Mar-2009 21-Dec-2012 31-Dec-2013 Comments The project’s small technical team has received some reinforcement through some reshuffling of IEMA staff. Administrative support is being provided by the Aguas Limpas PIU. The TORs for a communications specialist is Public Disclosure Copy being drafted. The Bank’s EXT unit has expressed interest in supporting this effort. The field teams have been reinforced through the Reflorestar Program with technical staff from INCAPER and a collaboration agreement with TNC. Page 9 of 11 The World Bank Report No: ISR8061 Best practices and lessons learned Text Value None Under implementation disseminated in the municipalities of the State Date 10-Mar-2009 21-Dec-2012 31-Dec-2013 and to other states Comments The Reflorestar Program has Public Disclosure Copy benefited from the lessons learned in implementing this project and is now poised to launch in the state the PES scheme in the selected priority areas reforesting 30,000 has with native species. Data on Financial Performance (as of 29-Nov-2012) 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 P094233 TF-93210 Effective 11-Dec-2008 11-Dec-2008 10-Mar-2009 30-Jun-2012 31-Dec-2013 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 0.59 3.41 15.00 Disbursement Graph Public Disclosure Copy Page 10 of 11 The World Bank Report No: ISR8061 Public Disclosure Copy Key Decisions Regarding Implementation None. Restructuring History There has been no restructuring to date. Related Projects P102818-Additional Financing Espirito Santo Water & Coastal Pollution Management Public Disclosure Copy Page 11 of 11