FIJI EMISSION REDUCTION PROGRAM WB SUPPORT AS DELIVERY PARTNER World - - PowerPoint PPT Presentation

FIJI EMISSION REDUCTION PROGRAM WB SUPPORT AS DELIVERY PARTNER

World Bank Task Team – Anis Wan, Rama Chandra Reddy, Haddy Sey Carbon Fund 20th Meeting, Washington DC, July 8-11, 2019

Forest Carbon Partnership Facility

Table of Contents

• I. Country Context and Drivers of Deforestation and Forest

Degradation

• II. Summary of ERP Preparation Support
• III. How the ERP Fits into the Bank’s Portfolio and Strategies
• IV. Status of Due Diligence
• V. Next steps and Timeline

• I. Country Context and Drivers of Deforestation and Forest Degradation

six direct drivers

Forest conversion to agriculture Natural disasters Convention al logging Invasive species Mining Unplanned infrastructu re developme nt logging at Sawani

• Fiji has 330 islands, 55% of which is

forest coverage. Over 13,000 communities depend directly on forest resources.

• It has a population of 905,502 (WB,

2017). Ethnic composition - 57% ITaukei, 37% Indian-Fijians, and 6 % other ethnic groups

• Fiji faces challenges posed by frequent

natural disasters and climate change, With climate change, losses of 2.5 percent of GDP are expected every year and losses of 20 percent every 50 years.

Average annual losses due to cyclones and earthquakes (in 2010 US$) (Source: WB SCD)

2009 2012 2014 2015 2016 2017 2018 2019 2020 2024

REDD+ Readiness and ERP

first multi- stakeholder national REDD+ consultations Development of R-PP started Final R-PP Ready R-PP Assessment Note. The original FCPF Readiness Fund grant approved. Development

• f ER-

Program Document ER Program Idea Note (ER-PIN) LoI signing; MTR and AF ER submission to Carbon Fund ER-PA Negotiation and Signing; ER Program Implementation

• II. Summary of ERP preparation support

ER Program Completion

World Bank support

• II. Summary of ERP preparation support
• Readiness grant of USD 3.8 million approved by FCPF and WB
• Additional financing of USD 2 million approved by FCPF and WB
• ER-PIN approved by FCPF and Letter of Intent signed between WB

and Fiji

• Readiness package endorsed at PC25
• Project Concept Review and approval by WB
• The Bank team worked closely with the GoF and consultants on the
• verall design of the ERP

, identification of the drivers and interventions, improvement of FRL, financing, and safeguards documents.

• It supported Fiji in preparation of several versions of ERPD, fielded

several missions, accompanied the TAP to carry out country visit and coordinate with their review, and provided day-to-day support.

• The Bank provided budget support to hire technical expertise to

help prepare ERP .

• Accompany TAP country visit and coordinate TAP review

Support Overall Design of the ER-Program for Fiji

Project Financing: USD 43.18 million for five years.

(~USD 1.64 million) (~ USD 36.68 million) (USD 4.86 million)

• II. Summary of ERP preparation support

ER-Program area covers the islands of Veti Levu, Vanua Levu, and Taveuni, covering 90 %

• f the total land mass and 94 % of the forest cover in Fiji.

Vanua levu forest cover

Multiple use forest

Veti Levu Forest Cover

Plantation forests

Mangroves

protection forest

• II. Summary of ERP preparation support

• III. How the ERP Fits into the Bank’s Portfolio and Strategies
• Fully consistent with the Systematic Country Diagnostic (SCD, FY 2017), the

Country Engagement Note for FY 2015-2017, as it aims to enhance forest productivity, and improve contribution to livelihoods and economic development.

• Aligned with the Bank’s corporate commitments on Forests and Climate

Change by supporting several interventions under the WBG Forest Action Plan (FAP) Focus Areas (Sustainable Forestry and Forest Smart Interventions) and Cross-Cutting Themes (Climate Change and Resilience, Rights and Participation, Institutions and Governance).

ER-PD supports sustainable natural resource management and capacity building (i) Stronger growth; (ii) Better access to services by all (iii) Building resilience (climate resilience)

The ERP aligns with one of the three pathways/focal areas under the SCD and the CPF under preparation (FY 2019 – 2023):

• III. How the ERP Fits into the Bank’s Portfolio and Strategies:

Fiji’s Portfolio and New Development

WB and IFC have significantly expanded their support for Fiji and the Pacific, with World Bank funding to the region tripling since 2016. WB opened a new office in Suva, Fiji as a regional hub delivering more than one billion Fiji dollars’ worth of projects across six countries in sectors including transport, aviation, information and communications technology, education, disaster resilience, fisheries, health and education, among others. Attorney General and Minister for Economy, Aiyaz Sayed-Khaiyum said: Revolutionary Green Bond, hospital PPP , and newly-announced affordable housing partnership are examples of recent innovations that have come about after the WB strengthened its engagement with Fiji. Since July 1, 2019, Fiji is IDA eligible through the Small Island Economies Exception, with a national IDA allocation of US$ 27 million per year. Fiji can also access other IDA windows, including the Crisis Response Window (excluding the Private Sector Window), while retaining access to IBRD (headroom depends on the loan).

• III. How the ERP Fits into the Bank’s Portfolio and Strategies:

Fiji’s Portfolio and New Development

Active: WB & IFC WB Pipeline

Leveraging of Other Investments: REDD+ Readiness Financing

• III. How does ERP fit into the Bank’s portfolio and strategies

Funding Agency Grant amount (Mil. USD) Disbursement (USD) % disbursement Committed# (USD) FCPF 5.8 2.35 41 0.68 GIZ 0.58 0.33 56.90 GoF 0.68 0.50 73.5

Leveraging of Other Investments: Programmatic Approach

The draft financing plan estimates a total ERP budget of US$ 43.2 million for the implementation time period 2020-2024. 43.2 million 2020- 2024 Private sector financing is expected to contribute about USD 8.4 million International financing USD 8.9 million Government Budget USD 13.3 million. Carbon Fund finance USD 12.6 million.

• III. How does ERP fit into the Bank’s portfolio and strategies

Analytical and Policy Support

• III. How does ERP fit into the Bank’s portfolio and strategies

The Bank’s program of analytical and advisory work has complemented a small number of IBRD and TF lending operations and helped to identify new engagement

• pportunities.

IFC engagement has continued to grow leveraging both Investment Services and Advisory Services.

2014 election FY2015- 2017 CEN 2017 SCD FY2019 IDA exception FY2020- 2024 CPF

Coordination with Development Partners

• III. How does ERP fit into the Bank’s portfolio and strategies

WB works in closer partnership with many of the region’s key bodies, including the Pacific Islands Forum Secretariat, the Pacific Community (SPC), and the University

• f the South Pacific (USP), GIZ, as well as other development partners, including

CI, WWF , EU, etc. to deliver even stronger development outcomes.

Systematic Operations Risk Rating Tool (SORT) Risk Category Rating

• 1. Political and Governance

M

• 2. Macroeconomic

M

• 3. Sector Strategies and Policies M
• 4. Technical Design of Project or

Program S

• 5. Institutional Capacity for

Implementation and Sustainability S

• 6. Fiduciary

L

• 7. Environment and Social

H

• 8. Stakeholders

S

• 9. Financial

S OVERALL S Feedback from PCN Review: It was agreed to strengthen the justification for the selection of ERP area in the PCN. The team should also consult FMT on the option of interim advance payment to help with financial flow. An advanced draft BSP should be available prior to ERPA signing and the final BSP should be ready after ERPA signing for the purpose of distributing the benefits during implementation The processing timeline is endorsed and it will be track 2. It was authorized to move forward.

• IV. Status of Due Diligence:

PCN Review and SORT

PCN Feedback and SORT ratings

Advanced SESA, Environmental and Social Management Framework, Resettlement Policy Framework and Process Framework, were prepared for REDD+ Strategy through a highly consultative

• process. They are being reviewed by the World

Bank Regional Safeguards Secretariat for review, and will be disclosed once finalized. Anticipated to be cleared by World Bank by the end of July 2019. The benefit sharing plan is required before ERPA signature, however the benefit sharing mechanism in the ERPD provides a comprehensive roadmap on benefit sharing and provides an outline of the benefit sharing plan and its expected completion.

Safeguard Policies Applicable Environmental Assessment OP/BP 4.01 YES Natural Habitats OP/BP 4.04 YES Forests OP/BP 4.36 YES Pest Management OP 4.09 YES Physical Cultural Resources OP/BP 4.11 YES Indigenous Peoples OP/BP 4.10 YES . Involuntary Resettlement OP/BP 4.12 YES Safety of Dams OP/BP 4.37 NO Projects on International Waterways OP/BP 7.50 NO Projects in Disputed Areas OP/BP 7.60 NO

• IV. Status of Due Diligence

Safeguards

Environmental & Social Risk is High.

• V. Next Steps and Timeline
• Develop benefit sharing plan, finalize SESA, ESMF

, RPF , and GAP

• Complete Appraisal by December 20, 2019
• Complete negotiation by April 2020,
• ER-PA is expected to be signed by June 2020.
• Operationalize National Forest Monitoring System
• Strengthen National Forest Monitoring System for integrated

carbon and co-benefit and safeguards monitoring.

• Strengthen capacity and consultations at national and sub-

national levels, including empowering CSOs

• Strengthen multi-sectoral coordination and collaboration-

Integrated land use plan to address multi-sectoral drivers to D&D.

17

Thank you!