Public Disclosure Copy. Implementation Status & Results Report Carbon Asset Development - Methane Recovery from Waste Mgmt Project (P152805)

Transcription

1 Public Disclosure Authorized EAST ASIA AND PACIFIC Philippines Environment & Natural Resources Global Practice Recipient Executed Activities Investment Project Financing FY 2016 Seq No: 3 ARCHIVED on 07-Feb-2018 ISR29217 Implementing Agencies: The Land Bank of the Philippines, The Land Bank of Philippines Public Disclosure Authorized Key Dates Key Project Dates Bank Approval Date:07-Oct-2015 Original Closing Date:30-Jun-2019 Project Development Objectives Effectiveness Date:28-Oct-2015 Revised Closing Date:30-Jun-2019 Public Disclosure Authorized Project Development Objective (from Project Appraisal Document) The objective of the Project is to assist Land Bank of the Philippines (LBP) with the development of carbon assets for purchase by the Carbon Partnership Facility (CPF). Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Public Disclosure Authorized Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Unsatisfactory Moderately Unsatisfactory Implementation Status and Key Decisions This project assists Land Bank of the Philippines with a small grant for the development and management of carbon assets for purchase by the World Bank under an associated project with Land Bank on Methane Recovery from Waste Management, specifically from pig farms and landfills. Land Bank has carried out a series of training and information events for its staff and its clients, plans to sign a sizable contract to support data monitoring at pig farms, and is working to complete the inclusion of pig farms and landfills in the two CDM program in the first half of Overall, implementation of the grant has been slower than originally planned, which leaves a portion of the grant available to support the operation and CDM 2/7/2018 Page 1 of 11

2 performance of the included farms and landfills. 2/7/2018 Page 2 of 11

3 Risks Overall Risk Rating Risk Category Rating at Approval Previous Rating Current Rating Overall Moderate Moderate Moderate Some of the planned activities under the grant are delayed. There is a risk that Land Bank may not use the grant fully and/or effectively by the closing of the grant on 30 June Land Bank has agreed to review and revise the implementation plan for the grant to support the emission reduction performance of the participating pig farms and landfills. Results Project Development Objective Indicators PHINDPDOTBL Compliance with the CER delivery schedule in the ERPA for pig farm (Percentage, Custom) Value Date 01-Oct Dec Dec Jun-2019 This indicator measures the effectiveness of the CADF grant in terms of Land Bank s compliance with its delivery obligations under the piggery EPRA. The actual value is calculated as the ratio (in percent) of CERs issued to the CPF (21,088, net of the 2% share of proceeds) to Contract CERs to be generated by 31 December 2017 (581,573) under the CPF ERPA for pig farms. The sharp drop from 2016 reflects the significant delay in inclusion of new pig farms into the program. The CPF may postpone the verification and issuance of CERs and therefore the delivery of Contract CERs can occur with a time lag. Since the last reporting on 31 December 2016, no new CERs were verified and issued, although participating pig farms continued to generate some emission reductions. The reported percentage number has 2/7/2018 Page 3 of 11

4 decreased, since the CER delivery obligation for 2017 is sharply higher (based on earlier plans for this program) and because delivered CERs have now been counted net of the 2% share of proceeds (going to the UNFCCC Adaptation Fund), which corrects an earlier mistake. It is important to note that the CERs issued to date are credited towards the reporting years 2014 and 2015 (until 30 June). By June 30, 2017, the total ER generation from pig farms stood at 32,441 CO2e (including 5,968 tco2e under the Spanish Carbon Fund). If all generated emission reductions had been verified and delivered to the PCF (net of SOP), the ratio of delivered to Contract CERs (as of 31 December 2017) would stand at about 5.6 percent. Since the contract CERs through 2016 are only about 5% of the total CERs contracted under the pig farm ERPA (2 million CERs), the deliveries in later years ( ) will have a much greater impact on the eventual project outcome. Based on the prospective inclusion of pig farms into the program, the overall delivery rate under the ERPA is currently expected to be close to 60%. But this number does not yet account for possible loss of subprojects and for the time lag between generation of ERs and CER issuance to the CPF. PHINDPDOTBL Compliance with the CER delivery schedule in the ERPA for landfills (Percentage, Custom) Value Date 01-Oct Dec Dec Jun-2019 This indicator measures the effectiveness of the CADF grant in terms of Land Bank s compliance with its delivery obligations under the EPRA for the landfill program. The actual value is calculated as the ratio (in percent) of CERs issued to the CPF (zero, net of share of proceeds) to Contract CERs to be generated by 31 December 2017 (841,812) under the CPF ERPA for landfills. The stand-alone CDM landfill is not included here. The CPF may postpone the verification and issuance of CERs and therefore the delivery of Contract CERs may occur with a time lag. No CERs for the landfill program have been verified and issued yet. The emission reductions generation by 31 December 2017 are reported as 91,855. The first verification and issuance is now planned to occur in the first half of If the generated emission reductions had been verified and delivered to the CPF (net of SOP), the ratio of delivered to Contract CERs (as of 31 December 2017) would stand at about 10.7 percent. The landfill program is currently expected to deliver about 75 percent of the CERs contracted under the landfill ERPA. Overall Intermediate Results Indicators 2/7/2018 Page 4 of 11

5 Staff training (Number, Custom) Value This indicator measures the staff capacity built at Land Bank. As per Land Bank's semi-annual reports, 5 additional staff training events were held in the previous 12 months (compared to 3 events originally planned). Manager training (Number, Custom) Value This indicator measures the number of managers trained. The target is 2 per year. The higher number reflects management changes at Land Bank during One Land Bank manager attended the World Bank Innovate for Climate event in Barcelona in May Technology assessment for pig farms (Number, Custom) Value This indicator measures a single activity by Land Bank on the assessment of technology for pig farms and the development of related tools, which was planned for Land Bank has used consultants to advise on biogas technology under local conditions, but has not carried out a formal technology assessment. Land Bank will assess whether this activity should still be carried out, e.g. to promote biogas technology throughout the Philippines beyond the current program. The indicator will change to "1" when the activity has been completed. 2/7/2018 Page 5 of 11

6 Technology assessment for landfills (Number, Custom) Value This indicator measures a single activity by Land Bank on the assessment of technology for landfills and the development of related tools, which was planned for Land Bank has used consultants to advise on landfill gas technology under local conditions, but has not carried out a formal technology assessment. Land Bank will assess whether this activity should still be carried out, e.g. to promote the utilization of landfill gas throughout the Philippines beyond the current program. The indicator will change to "1" when the activity has been completed. Document preparation for pig farms (Number, Custom) Value This indicator measures the preparation by Land Bank of pig farms for inclusion into the CDM program. Since the last reporting date, Land Bank has prepared the POA-DDs and other documents for an additional 26 pig farms. Land Bank has used CADF funds to hire consultants who helped with document preparation. In consideration of the short time remaining for inclusion of pig farms, it was agreed that Land Bank will focus on the existing pipeline and target only 50 farms (in addition to the originally included Marcella and Biotech farms), some of which are large. Document preparation for landfills (Number, Custom) Value This indicator measures the preparation by Land Bank of landfills for inclusion into the landfill program. Land Bank has prepared the PoA- DDs and other documents for two landfills, which have now been included in the landfill program. In additional, Land Bank prepared 2/7/2018 Page 6 of 11

7 documents for an existing CDM landfill operation under the standalone ERPA with the CPF. In consideration of the short time remaining for further inclusion of landfills, it was agreed that Land Bank would not pursue any additional landfills for the CDM program. National forum (Number, Custom) Value This indicator measure Land Bank s public outreach activity. As per Land Bank's semi-annual reporting, Land Bank has conducted one National Forum as a nationally publicized signing event for the CPF ERPAs. (The 30-Jun-2016 data point was set to "0" in error.) The National Forum is an annual, nationwide conference to promote modern, low-carbon waste manage practices in pig farms and landfills as well as Land Bank's program on climate change. Further National Fora are planned after the end of the inclusion phase on 30 April Road shows for pig farms (Number, Custom) Value This indicator measures Land Bank s outreach activities towards prospective pig farms. Since the inception of the program, Land Bank has conducted 6 regional road shows throughout the country to promote participation in the pig farm program and share information on biogas generation with its clients. In addition, Land Bank identified a need to conduct focus group discussions with prospective pig farms to obtain required information from them, which has greatly raised the actual value above the earlier plan. 2/7/2018 Page 7 of 11

8 Road shows for landfills (Number, Custom) Value This indicator measures Land Bank s outreach to encourage landfill owners and operators to join the landfill program. Three landfill road shows were planned in total. Since Land Bank had already engaged in direct discussions with owners of several large landfills and visited their sites, road shows to attract further interest in the landfill program were not deemed necessary. Marketing materials (Number, Custom) Value This indicator measures how Land Bank promotes the piggery and landfill programs through media. Land Bank has developed print material on its pig farm and landfill programs, issued press releases and created a web page on its Partnership with the World Bank. Monitoring and information system (MIS) (Number, Custom) Value This indicator tracks the development and maintenance of the project s Monitoring and Information System (MIS). Land Bank keeps the MIS updated and plans to adjust it to handle the information collected by landfill operators and by automated monitoring for pig farms. This, and continued maintenance of the MIS, will increase this indicator to "2". 2/7/2018 Page 8 of 11

9 Monitoring equipment for pig farms (Number, Custom) Value This indicator tracks the provision by Land Bank of monitoring equipment and services for its pig farm program. Land Bank now expects that a contract with a service provider will be signed in early 2018, followed by installation of meters and automated data collection and transmission equipment. This indicator will turn to "1" after these arrangements have been put in place. Inclusion and verification support for pig farm (Percentage, Custom) Value This indicator measures Land Bank s support for inclusion of pig farms and verification of emission reductions. This indicator shows 100% when all verification and inclusion activities are fully funded by the grant or from other sources. Inclusion and verification support for landfills (Percentage, Custom) Value This indicator measures Land Bank s support for inclusion of landfills and verification of emission reductions. This indicator shows 100% when all verification and inclusion activities are fully funded by the grant or from other sources. 2/7/2018 Page 9 of 11

10 Overall The intermediate results indicators track how Land Bank implements the activities contained in its implementation plan and budget for the utilization of the CADF grant. The results reported in this ISR are taken from Land Bank's semi-annual reporting for the period ending on 31 December Land Bank has agreed to evaluate its performance under the grant and propose revisions to the utilization of the grant after the end of the inclusion phase (30 April 2018) with the purpose of better supporting the operation and emission reductions performance of the participating pig farms and landfills. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P TF Effective USD % Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P TF Effective 12-Oct Oct Oct Jun Jun-2019 Cumulative Disbursements Restructuring History 2/7/2018 Page 10 of 11

11 There has been no restructuring to date. Related Project(s) There are no related projects. 2/7/2018 Page 11 of 11