Proposed Administration of Grant Kingdom of Cambodia: Greater Mekong Subregion Biodiversity Conservation Corridors Project

Transcription

1 Additional Financing Sri Lanka Project Number: Grant Number: 0241-CAM February 2015 Proposed Administration of Grant Kingdom of Cambodia: Greater Mekong Subregion Biodiversity Conservation Corridors Project Distribution of this document is restricted until it has been approved by the Board of Directors. Following such approval, ADB will disclose the document to the public in accordance with ADB's Public Communications Policy 2011.

2 CURRENCY EQUIVALENTS (as of 29 January 2015) Currency unit riel/s (KR) KR1.00 = $ $1.00 = KR4, ABBREVIATIONS ADB Asian Development Bank RCP representative concentration pathway NOTE In this report, "$" refers to US dollars.

3 Vice-President S. Groff, Operations 2 Director General J. Nugent, Southeast Asia Department (SERD) Director J. H. Mir, Environment, Natural Resources and Agriculture Division, SERD Team leader Team members Peer reviewers T. Dang, Environment Specialist, SERD S. Aman-Wooster, Senior Social Development Specialist (Safeguards), SERD C. Chea, Gender Officer, Cambodia Resident Mission (CARM), SERD B. Giap, Natural Resources and Agriculture Economist, SERD C. Hem, Senior Project Officer, CARM, SERD U. Hoque, Senior Social Development Specialist (Gender and Development), SERD S. Kawazu, Senior Counsel, Office of the General Counsel (OGC) B. Konysbayev, Senior Counsel, OGC U. Kumar, Economist, Economics and Research Department M. Ladia, Associate Safeguards Officer, SERD C. Losenno, Senior Environment Specialist (Climate Change Adaptation), Regional and Sustainable Development Department M. Macabingkil, Operations Assistant, SERD A. Musa, Senior Financial Management Specialist, SERD E. Piano, Associate Project Analyst, SERD A. Qadir, Senior Counsel, OGC S. Ranawana, Senior Natural Resources Specialist, SERD S. Sok, Senior Procurement Specialist, CARM, SERD A. Srinivasan, Principle Climate Change Specialist, SERD A. Lopez, Natural Resources and Agriculture Specialist, East Asia Department (EARD) F. Radstake, Senior Environment Specialist, EARD In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

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5 CONTENTS PROJECT AT A GLANCE Page I. BACKGROUND 1 II. ADDITIONAL FINANCING 1 A. Rationale 1 B. Impact, Outcome, and Outputs 2 C. Revised Investment and Financing Plans 2 D. Due Diligence 3 E. Implementation Arrangements 4 III. THE PRESIDENT'S RECOMMENDATION 4 APPENDIX Revised Design and Monitoring Framework 5 SUPPLEMENTARY APPENDIXES (available on request) A. Grant Agreement B. Sector Assessment (Summary) C. Project Administration Manual D. Contribution to ADB Results Framework E. Development Coordination F. Detailed Economic and Financial Analysis G. Country Economic Indicators H. Summary Poverty Reduction and Social Strategy I. Gender Action Plan J. Environmental Assessment and Review Framework K. Resettlement Framework L. Indigenous Peoples Planning Framework M. Risk Assessment N. Climate Change Impact Modeling and Vulnerability Assessment O. Summary Project Approval Request (for Pilot Program for Climate Resilience Subcommittee) P. Climate Resilience Outputs and Pilot Program for Climate Resilience-Funded Activities (for Pilot Program for Climate Resilience Subcommittee) Q. Feasibility Study Rainwater Harvesting Ponds with Climate-Resilient, High-Value Crop Productivity R. Feasibility Study Climate-Resilient Irrigation and System of Rice Intensification Techniques S. Feasibility Study Bioengineered Sea Barriers Reducing Saltwater Intrusion T. Framework for Ecosystem-Based Adaptation in Two Catchments in Mondulkiri Province

6 Project Classification Information Status: Complete PROJECT AT A GLANCE 1. Basic Data Project Number: Project Name Greater Mekong Subregion Biodiversity Conservation Corridors Project (Additional Financing) Department /Division SERD/SEER Country Cambodia Executing Agency Ministry of Agriculture, Borrower Government of Cambodia Forestry & Fisheries, Ministry of Environment 2. Sector Subsector(s) ADB Financing ($ million) Agriculture, natural Agricultural production 0.00 resources and rural Forestry 0.00 development Irrigation 0.00 Land-based natural resources management 0.00 Total Strategic Agenda Subcomponents Climate Change Information Inclusive economic growth (IEG) Pillar 2: Access to economic opportunities, including jobs, made more inclusive Climate Change impact on the Project Environmentally sustainable growth (ESG) Disaster risk management Environmental policy and legislation Natural resources conservation Regional integration (RCI) Pillar 4: Other regional public goods 4. Drivers of Change Components Gender Equity and Mainstreaming Governance and capacity Civil society participation Effective gender mainstreaming development (GCD) Institutional development Organizational development (EGM) Knowledge solutions Pilot-testing innovation and learning (KNS) Partnerships (PAR) International finance institutions (IFI) Official cofinancing 5. Poverty Targeting Location Impact Project directly targets Yes poverty Geographic targeting (TI-G) Yes High.. 6. Risk Categorization: Low 7. Safeguard Categorization Environment: B Involuntary Resettlement: B Indigenous Peoples: B 8. Financing Modality and Sources Amount ($ million) ADB 0.00 Cofinancing 7.40 Strategic Climate Fund - PPCR 7.40 Counterpart 0.00 None 0.00 Total Effective Development Cooperation Use of country procurement systems Use of country public financial management systems Yes Yes Source: Asian Development Bank This document must only be generated in eops Generated Date: 19-Feb :38:32 PM

7 I. BACKGROUND 1. On 10 December 2010, the Board of Directors of the Asian Development Bank (ADB) approved a grant of $19,000,000 from ADB s Special Funds resources to the Kingdom of Cambodia for the Cambodia component of the Greater Mekong Subregion Biodiversity Conservation Corridors Project. 1 The project s impact is climate-resilient sustainable forest ecosystems benefiting local livelihoods. Its outcome is sustainably managed biodiversity corridors in Koh Kong and Mondulkiri provinces. The outputs are (i) institutions and communities strengthened for biodiversity corridor management; (ii) biodiversity corridors restored, protected, and maintained; (iii) livelihoods improved and small-scale infrastructure support provided in target villages and communes; and (iv) project management and support services operationalized. 2. The Ministry of Environment and the Ministry of Agriculture, Forestry and Fisheries of the Government of Cambodia are the executing agencies. As the first ADB-funded environment sector investment project executed by two agencies with limited experience in administering projects and working at the grassroots level, the project has experienced delays. However, through training, clarifying lines of responsibility, and streamlining financial management, progress has been made. The project contract awards and disbursement as of 16 February 2015 are $5.52 million and $3.91 million, or 29% and 21% of the grant amount, in line with the projections. The project is rated on track according to the ADB project performance rating system. 3. Recognizing that communities that rely on forests are the most vulnerable to climate change because of their dependence on ecosystem services and limited livelihood alternatives, the project has prioritized community-driven and ecosystem-conserving investments for income generation. Climate resilience has not been sufficiently addressed because of resource constraints, and is to be further addressed when additional financing becomes available. A. Rationale II. ADDITIONAL FINANCING 4. According to the World Risk Report 2012, Cambodia ranks eighth among the top 15 countries with the highest risk of impact from climate change and a very low capacity to adapt. In the two project provinces, the livelihoods of the project communities are threatened by the expected negative impacts of climate change on agriculture and food security. Of the 22 project communes, 10 of 12 in Mondulkiri Province and 5 of 10 in coastal Koh Kong Province are highly vulnerable to climate change. Temperatures in the two provinces are expected to increase by 0.7 degrees Celsius (at representative concentration pathway [RCP] 4.5) or 1.0 degree Celsius (at RCP 8.5) by More frequent and longer droughts may have the greatest climate change impact in the two provinces during In Mondulkiri Province, projected increases in extreme rainfall suggest a higher flood risk. In Koh Kong Province, more frequent and longer droughts and sea level rise could lead to greater saltwater intrusion. 5. An additional financing, to be funded under the ADB Strategic Climate Fund, will change the scope of the project by reducing the climate risks to the project and increasing the communities climate resilience. The additional financing is (i) included in the country operations 1 ADB Report and Recommendation of the President to the Board of Directors: Proposed Loan and Grants to the Kingdom of Cambodia, Lao People s Democratic Republic, and Socialist Republic of Viet Nam for the Greater Mekong Subregion Biodiversity Conservation Corridors Project. Manila. 2 Representative concentration pathways (RCPs) are four greenhouse gas concentration trajectories, which are used to describe four possible climate futures depending on how much greenhouse gases are emitted in the years to come: RCP2.6, RCP4.5, RCP6, and RCP8.5.

8 2 business plan, for Cambodia; (ii) highlighted in ADB s Midterm Review of Strategy 2020; and (iii) consistent with government priorities. 3 B. Impact, Outcome, and Outputs 6. With the additional financing, the climate resilience of the communities and ecosystems supported by the project will be enhanced, while the project s impact and outcome statements will remain unaffected. To accommodate the additional financing, the project scope will be changed to benefit a further 4,300 households with climate-resilient livelihoods through new investments undertaken within outputs 3 and Under output 3, project participants climate resilience will be enhanced through four interventions: (i) increasing water availability through constructing 40 rainwater harvesting ponds for 60 hectares of home gardens, and introducing drought-resilient crops in both project provinces, benefiting about 2,000 households; (ii) rehabilitating an irrigation scheme in Mondulkiri Province for a command area of 250 hectares, and supporting the adoption of a system of rice intensification by about 1,000 households; (iii) protecting 750 hectares of agricultural land from saltwater intrusion by constructing 15 kilometers of bioengineered sea barriers and introducing salt-resilient crops to (iv) 400 households in Koh Kong Province; 4 and diversifying sources of income for 900 households in two pilot catchments in Mondulkiri Province in the event of crop failures through rehabilitation and conservation of 9,000 hectares of forest. Lessons from the implementation of these interventions will be documented in case studies and policy recommendations. 8. Under output 4, the additional financing will strengthen the capacity of the project staff to implement additional activities and integrate climate change concerns into national and provincial development planning and budgeting. Efficiency gains between the current project and the additional financing will be maximized through increased assistance from the project s existing consultants. Technical support will also be provided in new areas such as ecosystem-based adaptation, catchment planning, and climate-resilient crops. Other project management areas include monitoring and reporting, knowledge sharing, procurement, incremental operational and recurrent costs, and incremental safeguard monitoring. C. Revised Investment and Financing Plans 9. On 28 June 2011, when the project had just become effective, the government s Strategic Program for Climate Resilience was approved by the Pilot Program for Climate Resilience Subcommittee under the ADB Strategic Climate Fund. This included an allocation of $8.0 million, including $0.6 million for preparation of the use of the remaining $7.4 million as the Promoting Climate-Resilient Agriculture in Koh Kong and Mondulkiri Provinces Project under the Greater Mekong Subregion Biodiversity Conservation Corridors Project. The government requested, and the ADB Strategic Climate Fund agreed to provide a grant equivalent to $7,400,000 as additional 3 ADB Country Operations Business Plan: Cambodia, Manila; ADB Midterm Review of Strategy 2020: Meeting the Challenges of a Transforming Asia and Pacific. Manila. Government priorities are expressed in (i) the Cambodia Climate Change Strategic Plan, ; (ii) the sector climate change strategic plans for agriculture and environment; (iii) the National Social Development Plan, ; and (iv) the National Adaptation Program of Action on climate change. 4 The sea barriers are earthen dikes planted with mangroves. Kandol, a commune in Koh Kong Province that is outside the project area, is added to this intervention because of its high vulnerability to climate change.

9 3 financing to the project to accommodate its modified scope of enhanced climate resilience. The grant will be administered by ADB with no additional contribution from the government, ADB, or the beneficiaries. Expenditures under the additional financing will be in parallel with those of the current project, and a separate imprest account for the additional financing will be established in each executing agency. The same disbursement arrangements will apply to the additional financing. The financial management arrangements of the additional financing are considered adequate. Most of the additional financing is for livelihoods and small scale infrastructure and is expected to be fully disbursed by December Furthermore, the ministries capacity to support conservation-based livelihoods will be strengthened by key government staff and consultants. The revised investment and financing plans are in Tables 1 and 2. Table 1: Revised Investment Plan ($ million) Current Amount a Additional Financing b Item Total A. Base Cost c 1. Institutional and community strengthening Biodiversity corridors restoration and protection Livelihood and small-scale infrastructure Project management and support Subtotal (A) B. Contingencies d C. Financing Charges During Implementation Total (A+B+C) a Refers to the original amount. Includes taxes and duties of $1.1 million to be financed from the Asian Development Bank (ADB) grant. b Includes taxes and duties of $597,000, to be financed by the ADB Strategic Climate Fund in compliance with para. 9 of ADB Change of Loan and/or Grant Funded Projects. Operations Manual. OM H3/OP. Manila. c In mid-2010 prices for the current project and mid-2013 prices for the additional financing. d Physical contingencies are computed at 10% for civil works and 10% for training, surveys, and studies. Price contingencies are computed at 1.0% for 2015, 1.4% for 2016 and 2017, and 1.5% thereafter on foreign exchange costs, and at 3.5% on local currency costs (includes provision for potential exchange rate fluctuation under the assumption of a purchasing power parity exchange rate). Source: ADB estimates. Table 2: Revised Financing Plan Current a Additional Financing Total Amount Share of Amount Share of Amount ($ million) Total (%) ($ million) Total (%) ($ million) Share of Total (%) Source ADB ADB Strategic Climate Fund b Government Beneficiaries Total ADB = Asian Development Bank a Refers to the original amount. b Under the Pilot Program for Climate Resilience financed by the Strategic Climate Fund. Administered by ADB. Source: ADB estimates. D. Due Diligence 10. Due diligence has been undertaken for the additional financing, which has been classified as category B for all safeguard categories (environment, indigenous people, and involuntary resettlement). All safeguard frameworks of the project have been updated to accommodate the modified project scope. The direct beneficiaries of the additional financing are poor coastal farming households in Koh Kong Province and communities in remote, mountainous areas in Mondulkiri Province, most of whom are indigenous peoples. The additional financing will not

10 4 support interventions that involve involuntary land acquisition, nor does it imply significant impacts for the environment, resettlement, or indigenous peoples. All investments under the additional financing reflect priorities identified through participatory, multi-stakeholder consultations. Civil works will be designed to a standard that ensures climate resilience and sustainability. 11. The additional financing is classified as effective gender mainstreaming. It supports women s access to economic and financial resources, provides opportunities for their participation in community water and forest resources conservation, and provides better infrastructure to reduce their work burden. A gender action plan has been prepared in which women are targeted to comprise (i) 80% of trainees on crop selection, and techniques to improve home garden productivity and water conservation; (ii) 40% of trainees on the system of rice intensification; (iii) 50% of farmers involved in mangrove planting; (iv) 25% 30% of farmers of demonstration plots for salt-resilient crop production; (v) 30% of management positions in water user and forest conservation groups; and (vi) 30% of water user group members to be trained in operation and maintenance. 12. Representative investments were evaluated, including (i) irrigation and climate-resilient rice production, (ii) rainwater harvesting and climate-resilient home gardens, (iii) bioengineered sea barriers and salt-resilient crops, and (iv) ecosystem-based adaptation. Economic analysis of these investments generated economic internal rates of return ranging from 15.5% to 17.1%, based on benefits that are readily quantifiable. Sensitivity analyses indicated that none of the risk factors appeared to jeopardize the economic viability of these interventions. Financial analysis indicated that due to the increased cropping intensity and yields, and the adoption of higher-value crops, average household income will increase from $675 at year-end 2014 in the without-project scenario to the range of $1,040 to $1,485 (or 54% to 120%) by 2020 in the with-project scenario. This suggests that the proposed interventions will be highly beneficial in diversifying livelihoods and income sources, and reducing poverty. The additional financing is also expected to generate social benefits for communities, local governments, and private and nongovernment organizations through stakeholder empowerment resulting from the institutional and capacitybuilding interventions. However, these benefits are more difficult to quantify. E. Implementation Arrangements 13. The same executing agencies will be responsible for overseeing interventions that fall within their mandates. The implementation arrangements reflect those under the project, with slight modifications as documented in the project administration manual (Supplementary Appendix C). All procurement of goods and services and engagement of consultants will be undertaken in accordance with ADB s Procurement Guidelines (2013, as amended from time to time) and ADB s Guidelines on the Use of Consultants (2013, as amended from time to time). 5 The project completion date remains unchanged as 31 March III. THE PRESIDENT'S RECOMMENDATION 14. The President recommends that the Board approve ADB administering a grant not exceeding the equivalent of $7,400,000 to the Kingdom of Cambodia for the additional financing of the Greater Mekong Subregion Biodiversity Conservation Corridors Project, to be provided by the ADB Strategic Climate Fund. 5 Universal procurement will apply (ADB Doc. R Blanket Waiver of Member Country Procurement Eligibility Restrictions in Cases of Cofinancing for Operations Financed from Asian Development Fund Resources. 25 February. Manila).

11 Appendix 5 Design Summary REVISED DESIGN AND MONITORING FRAMEWORK Performance Targets and Indicators with Baselines Data Sources and Reporting Mechanisms Impact Assumptions Climate-resilient sustainable forest ecosystems benefiting local livelihoods Unchanged Outcome Biodiversity conservation corridors established in Koh Kong and Mondulkiri with enabling policy, regulatory, and management regimes Unchanged Outputs Output 1 Institutions and By 2022, 5,600 ha restored and additional 3,000 ha leveraged under REDD+ for climate change mitigation compared to 2011 baseline By 2022, approximately 2,600 households with diversified livelihood assets and/or incomegenerating opportunities By 2022, approximately 1 million labor days worth of employment generated through projectrelated conservation work and cash transfers for participatory restoration activities By 2018, evidence from forest sample plots and biodiversity assessments is available to establish baseline of climate change impacts on key flora in the biodiversity corridor and assessment of species change and resilience Current targets remain and, by 2022, an additional 4,300 households in 23 communes (including the added Kandol commune) are able to adapt to climate change and climate variability By 2018, management plans and biodiversity corridor policy with legal framework in place covering around 700,000 ha of forest and nonforest land in 22 communes of Koh Kong and Mondulkiri provinces By 2018, biodiversity conservation corridors mapped and demarcated with cross-border arrangements with Lao PDR and Viet Nam entered into for maintenance and protection By 2018, biodiversity conservation regulatory framework and management regime with financing in place for maintaining ecosystem services By 2018, increase in income and/or assets for target households by 40% compared with 2011 By 2018, at least 30% of the village level corridor management committee members are women Current targets remain and, by 2018, climateresponsive instruments tested and adopted by an additional 4,300 households for climateresilient diversified livelihoods, supported by strengthened government capacity to mainstream climate resilience in agriculture sector By 2012, zoning of 700,000 ha of biodiversity MAFF and MOE updates on forest cover, greenhouse gas emissions, and biodiversity trends Provincial cadastral surveys and reports Household and commune socioeconomic surveys and reports National databases of MAFF and MOE Household and commune socioeconomic surveys Performance monitoring surveys Project management information system Corridor maps Assumptions and Risks Climate-change adaptation and mitigation activities receive additional and/or incremental funding Biodiversity corridor regulatory framework is adhered to by planners and decision-makers at central and provincial levels Population growth is stable and in-migration into biodiversity corridor areas can be regulated Risks Sudden influx of climate change refugees Ad hoc development investment decisions override long-term environmental and/or biodiversity corridor plans and programs Assumptions Provincial governors and central government commit to declaring and establishing a Greater Mekong Subregion biodiversity corridor area and enforce regulations Timely approval of management plans and funds by CPCU to PPMU Risk Other development activities negatively affect current and planned biodiversity conservation activities in the corridors Assumptions Sector development plans

12 6 Appendix Design Summary Performance Targets and Indicators with Baselines corridor (target date moved to 2017) By 2013, participatory land use plans and commune investment profiles and/or plans updated in 22 communes covering eight districts in two provinces (target date moved to 2016) By 2014, 240 km of demarcation completed (target date moved to 2015) By 2014, all 22 communes receive collective forest land (management) certificate for commune forest groups (target date moved to 2017) 500 central-, 1,060 provincial-, 800 district-, and 1,100 commune-level persons trained in project activities Of the trained persons, at least 40% are female with a large portion from indigenous people s groups Unchanged, except for the target dates above Data Sources and Reporting Mechanisms Assumptions and Risks communities strengthened in biodiversity corridor management Unchanged approved by provincial government, MAFF, and MOE Land use plans with maps for 22 communes Commune profiles and investment plans Demarcation maps Land use certificates CPCU reports remain conducive to promotion and consolidation of biodiversity landscape approaches Sufficiently qualified national consultants can be engaged Risks Other development activities (commercial plantations, mining, settlements, roads) create further fragmentation of forest ecosystem and hamper landscape approaches Political security and peace in border areas are disturbed Output 2 Biodiversity corridors restored, protected, and sustainably managed by local resource managers Unchanged By end 2011, effective patrolling of forest areas established in 22 communes by commune-based patrolling units in protecting on average 5,000 ha per commune covering over 110,000 ha of the biodiversity conservation (achieved in 2014) By 2016, about 5,600 ha of natural forest land rehabilitated through forest restoration, enrichment planting, and non-timber forest product and agroforestry planting using mainly native species and maintained over and beyond the project period (target date moved to 2018) Restoration activities include labor input provided by women on cash basis, improving household income Unchanged, except for the target dates Government statistics Provincial and district economic survey statistics Area planted and maintained in watershed areas Reports of forest protection department on illegal activities Performance monitoring surveys CPCU reports Output 3 Livelihood improvement and small-scale infrastructure support in target communes By 2015, at least 1,150 households receive cash and technical support to improve agricultural productivity and income from home gardens, agriculture, and/or animal production; almost 90% of home gardens will be managed by women; at least 500 ha of forest-based livelihood plantations (target date moved to 2017) By 2015, enhanced accessibility to water, production, markets, and services with capacity building in O&M and business models (ecotourism, nontimber forest product, and agroprocessing) in 22 communes (target date moved to 2018) By 2016, at least 30% of the commune development fund management committee Government statistics Provincial and district economic survey reports Provincial revenue reports Provincial business and enterprise statistics Performance monitoring surveys CPCU reports Assumptions and risks are the same as those in outputs 1 and 2. Additional Assumptions Sector development plans in Cambodia remain conducive to PPCR investments (e.g., community-based production forestry) Water user groups have the skills and resources to undertake O&M tasks Equitable contracting established between community forestry enterprise

13 Appendix 7 Design Summary Unchanged Output 4 Project management and support services Performance Targets and Indicators with Baselines comprises female members By 2015, investments in livelihood improvements and small-scale infrastructure completed (target date moved to 2017) By 2015, selected households in 22 communes have access to renewable energy technologies (target date moved to 2017) By 2015, anticipated climate change impacts on infrastructure documented and integrated into provincial level planning and adaptation costs and investment needs identified (target date moved to 2018) Current targets remain unchanged, except for the target dates above, and by 2018: 2,000 households are provided with 40 rainwater harvesting ponds for home gardens and adopt drought resilient crops; 1,000 households have a climate-proof irrigation system and adopt system of rice intensification; 400 households are protected by 15 km of sea barriers and adopt salt-resilient crops; and 900 households have diversified income from 9,000 ha of forest. Of the total 4,300 beneficiaries, women comprise (i) 80% of trainees on improving home garden productivity and water conservation, (ii) 40% of trainees on the system of rice intensification, (iii) 50% of farmers involved in mangrove planting, (iv) 25% 30% of farmers in demonstration plots for salinity-resilient crops, (v) 30% of management positions in water user and forest conservation groups, and (vi) 30% of water user group members to be trained in O&M Three case studies and policy recommendations on ecosystem-based adaptation and integration of climate change in design of sea barriers, irrigation, and rainwater harvesting ponds documented and discussed with relevant ministries 65 officials and project staff acquire capacity to integrate climate change concerns into development planning and budgeting By March 2011, CPCUs and provincial project management units are operational; at least 20% of project staff are female (achieved) By June 2011, all advance actions regarding procurement of vehicles, equipment, and consultants completed (achieved) By August 2011, first tranche of grant received in imprest accounts (achieved) By 2012, around 200 officials and project staff trained on procurement, management, financial controls, monitoring, and reporting (achieved) Quarterly technical and financial reports Data Sources and Reporting Mechanisms CPCU reports Midterm evaluation Performance monitoring surveys Grant disbursement reports Assumptions and Risks with forest management groups Additional Risks Construction standards for irrigation, rainwater harvesting ponds, and sea barriers are not maintained at sufficient quality Strong pressure on the forest from unsustainable logging and economic land concession for agro-industrial plantations Essential policy reform for the sustainable forest management intervention not achieved before December 2015, leaving inadequate time to establish a viable community forestry enterprise Assumptions and risks are the same as those in outputs 1 and 2. Additional risk MAFF s and MOE s low implementation capacity and lack of coordination

14 8 Appendix Design Summary Unchanged Performance Targets and Indicators with Baselines produced by CPCUs including progress of gender action plan implementation (achieved) Project performance and monitoring system established by early 2012 including mainstreamed gender action plan activities; and sex-disaggregated data collected for all subproject activities (target date moved to 2015) Timely submission of financial liquidation and withdrawal applications (achieved) By 2017, operational guidelines and/or manuals circulated on biodiversity corridors management and best practices Current targets remain, except for the target dates and: By March 2015, all advance actions regarding procurement of vehicles, equipment and consultants completed By 2015, at least 20% of project female staff and community members are involved in technical training and workshops Data Sources and Reporting Mechanisms Activities with Milestones (Overall Project) 1. activities remain with updated target dates as follows: 1.1 Strengthen policy framework for biodiversity corridor establishment and implementation (changed to 2017) 1.2 Raise awareness and build technical capacity to replicate model of biodiversity corridors (changed to 2017) 1.3 Participate in biodiversity corridor activities and establish cross-border cooperation framework on forest ecosystem and biodiversity corridor management (changed to 2017) 1.4 Strengthen capacity on land use planning, zoning, demarcation across landscapes (changed to 2017) 1.5 Strengthen the capacity of district officials and key provincial level staff involved in corridor and protected areas management (changed to 2017) 1.6 Strengthen the capacity of communes to manage and protect forest and natural resources in the corridors and move toward effective community-based natural resource management with co-management mechanism (changed to 2017) 1.7 Zone and map at provincial level biodiversity corridor delineation and demarcation (changed to 2017) 1.8 Strengthen capacity for managing commune development funds (changed to 2016) 1.9 Update database on forest resources, land use, and integrating with other information on agriculture, water, mining etc. (changed to 2015) 1.10 Secure recognition of biodiversity corridors through provincial level policy and regulations, decisions, and decrees and implement management plans (changed to 2018) 2. activities remain with updated target dates as follows: 2.1 Undertake participatory demarcation and delineation of forest and/or conservation corridor areas from commune areas (changed to 2017) 2.2 Identify and undertake landscape connectivity in key fragmentation points through targeted reforestation and/or enrichment planting, gap filing, or natural regeneration (changed to 2017) 2.3 Identify benefit sharing schemes for forest and watershed protection (changed to 2017) 2.4 Identify bare and/or scrub land available close to communes and/or clusters for forest plantations, non-timber forest product domestication and supply of timber for value addition (changed to 2017) 2.5 Conduct sustainable forest management planning in collaboration with ongoing government plans and/or programs (changed to 2017) 3. activities and additional activities as follows: 3.1 Update commune and village level data on socio-economic status and poverty mapping and monitoring (changed to 2015) Assumptions and Risks Inputs ADB Grant $19 million (current) Government $1.4 million (current) $0.0 (additional) $1.4 million(overall) Beneficiaries $0.5 million (current) $0.0 (additional) $0.5 million (overall) ADB Strategic Climate Fund Grant $0.0 (current) $7.4 (additional) $7.4 (overall)

15 1. Appendix 9 Activities with Milestones (Overall Project) Inputs 3.2 Provide support to promoting agriculture and/or agroforestry based livelihood improvements (changed to 2017) 3.3 Explore possibilities of improving market information services using mobile IT technology and private sector services in the communes or through local associations in the biodiversity corridor area (changed to 2017) 3.4 Provide seed capital for Commune Development Funds (changed to 2016) 3.5 Provide investment support to prioritized small scale infrastructure (changed to 2017) 3.6 Build and/or improve O&M capacity for maintaining infrastructure (changed to 2017) 3.7 Review and develop plans for climate proofing local infrastructure (roads, bridges, schools) and seek funding to implement infrastructure adaptation in priority areas (completed) 3.8 Map household vulnerability and livelihood options impacted by climate change and prepare for managing disasters and improving coping strategies (completed) 3.9 By 2016, train government officials and project staff on integration of climate change concerns into development planning and budgeting (added) 3.10 By 2016, train government officials and project staff on ecosystem-based adaptation in catchment and climate proofing of sea barriers, and irrigation and rainwater harvesting ponds for national and provincial officials (added) 3.11 By 2018, build 40 rainwater harvesting ponds and introduce climate-resilient high-value home garden crop productivity (added) 3.12 By 2018, rehabilitate irrigation scheme for climate-resilience and recommend policy on climate proofing of irrigation infrastructure (added) 3.13 By 2018, build bioengineered sea barriers and introduce of saline-resilient crops recommend policy on climate proofing of sea barriers (added) 3.14 By 2018, introduce ecosystem-based adaptation in two catchments and recommend policy on ecosystem-based adaptation (added) 4. activities and additional activities as follows: 4.1 Establish Central and Provincial Project Management Unit (completed) 4.2 Establish financial accounts and internal audit controls (completed) 4.3 Open project accounts, secure monthly statements (completed) 4.4 Recruit support staff and consultants (completed) 4.5 Draw up annual and six monthly work plans, personnel scheduling, budgets and procurement plans, and seek approvals (unchanged) 4.6 Procure goods and services applying procurement rules as laid out in PAM (completed) 4.7 Guide and oversee implementation (unchanged) 4.8 Conduct survey and/or reports and studies to enhance and support project implementation (completed) 4.9 Monitor project implementation (unchanged) 4.10 Prepare statement of expenditure and liquidation documents (unchanged) 4.11 Submit six monthly financial and technical reports (unchanged) 4.12 By 2015, procure vehicles, equipment, and consulting services for PPCR interventions (added) 4.13 From 2015 to 2018, provide training and workshops on project management, ecosystem-based adaptation, catchment planning, and climate-resilient crops (added) 4.14 Provide monitoring, reporting, and knowledge sharing of PPCR interventions (added) ADB = Asian Development Bank; CPCU = central project coordination unit; ha = hectare; km = kilometer; MAFF = Ministry of Agriculture, Forestry and Fisheries; MOE = Ministry of Environment; O&M = operation and maintenance; PAM = project administration manual, PPCR = Pilot Program for Climate Resilience; PPMU = provincial project management unit; REDD+ = reducing emissions from deforestation and forest degradation Notes: 1. refers to the original project with past additional financing (if any). For example, for the second additional financing, current project refers to the original project and the first additional financing. The same principle applies to subsequent additional financing, if any. 2. refers to the original project with past (if any) and proposed additional financing. For example, for the second additional financing, overall project refers to the original project, the first additional financing, and the second additional financing. The same principle applies to subsequent additional financing, if any. Source: ADB.