Implementation Status & Results Report Coastal Watersheds Conservation in the Context of Climate Change Project (P131709)
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1 Public Disclosure Authorized LATIN AMERICA AND CARIBBEAN Mexico Environment & Natural Resources Global Practice Global Environment Project Investment Project Financing FY 2014 Seq No: 9 ARCHIVED on 30-Oct-2017 ISR29965 Implementing Agencies: Fondo Mexicano para la Conservación de la Naturaleza (FMCN), Comisión Nactional de Áreas Naturales Protegidas (CONANP), Instituto Nacional de Ecologia (INE), Comision Nacional Forestal (CONAFOR), Nacional Financiera, S.N.C Public Disclosure Authorized Key Dates Key Project Dates Bank Approval Date:21-Nov-2013 Planned Mid Term Review Date:23-Jan-2017 Original Closing Date:30-Jun-2019 Global Development Objectives Effectiveness Date:11-Mar-2014 Actual Mid-Term Review Date:23-Jan-2017 Revised Closing Date:28-Jun-2019 Public Disclosure Authorized Global Environmental Objective (from Project Appraisal Document) The project global environmental objective (GEO) is the same as the project development objective (PDO): To promote integrated environmental management of selected coastal watersheds as a means to conserve biodiversity, contribute to climate change mitigation, and enhance sustainable land use. Has the Global Environmental Objective been changed since Board Approval of the Project Objective? No Components Public Disclosure Authorized Name Component 1: Creation and Consolidation of Protected Areas:(Cost $20.34 M) Component 2: Promoting Sustainability within Watersheds:(Cost $17.09 M) Component 3: Enabling Adaptive Management by Strengthening Monitoring Capacities:(Cost $0.43 M) Component 4: Innovative Mechanisms for Inter-institutional Collaboration and Promoting Social Participation:(Cost $0.97 M) Component 5: Project Management:(Cost $0.65 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Moderate Moderate Page 1 of 12
2 Implementation Status and Key Decisions The Project continues to make progress towards the achievement of its development objectives. This update reports on the implementation support mission carried out on August 6-10, The mission s main objective was to assess implementation progress of the project and follow up on recommendations resulting from the mid-term review mission carried out on January 23-27, Part 1 of the project continues to enhance biodiversity conservation in protected areas, already achieving its end project target with a total of 1,164,215 hectares of protected areas in the process of consolidation. Five protected areas showed an improvement in their management effectiveness according to the GEF Tracking Tools (METT). Capitalization of permanent funding sources has reached US$ 21.4 million. The client has a strategy in place to raise additional funds and address financial sustainability. Part 2 has made progress in improving forest and land management surpassing the project s target with 21,586 hectares of watersheds implementing Payment for Ecosystem Services, agro-ecosystem and sustainable forest management subprojects. For Part 3, five Integrated Watershed Action Plans (IWAPs) have been finalized and two more in the process of development. The water quality and biodiversity conservation monitoring systems implemented by communities are ongoing in each of the six watersheds. For Part 4, the Project continues to make progress and innovate in the coordination of investments in the selected watersheds. Information about the Project can be found on its website Page 2 of 12
3 Page 3 of 12
4 Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- Moderate Moderate Macroeconomic -- Moderate Moderate Sector Strategies and Policies -- Moderate Moderate Page 4 of 12
5 PHINDGEOTBL PHINDGEOTBL Technical Design of Project or Program -- Moderate Moderate Institutional Capacity for Implementation and Sustainability -- Low Low Fiduciary -- Moderate Moderate Environment and Social -- Moderate -- Stakeholders -- Moderate Moderate Other Overall -- Moderate Moderate Results Global Environmental Objective Indicators Areas brought under enhanced biodiversity protection (ha)(hectare(ha), Custom) Value ,007, ,164, ,100, Indicator 1: Consolidation of at least 1.1 million hectares of protected areas, including at least 2 new protected areas of an estimated 500,000 hectares(hectare(ha), Custom) Value ,007, ,164, ,100, The project has consolidated a total of 1,164,215 hectares of existing protected areas, surpassing the end-project target (1,100,000 hectares). More specifically, the Gulf of Mexico includes "Parque Nacionales de Pico de Orizaba", Cofre de Perote, Pantanos de Centla, "Sistema Arrecifal Veracruzano", "Los Tuxtlas", "Lobos-Tuxpan", "Canon de Usumacinta", and "Marismas Nacionales Nayarit". The Gulf of California are in the process of being declared (67% of total), including Marismas Nacionales Sinaloa (47,760 ha), Arrecifes Los Tuxtlas (163,104 ha), Ameca (261,443 ha) and Monte Mojino (201,280 ha). The GEF METT methodology is used for assessing Protected Areas management effectiveness. Intermediate Results indicator 1.1 is contributing toward this objective, and has shown improvement in management effectiveness in five protected areas, including Cofre de Perote, Pico de Orizaba, Lobos Tuxpan, Cañón de Usumacinta and Sistema Arrecifal. Improvement is measured in terms of increase in METT values. Page 5 of 12
6 PHINDGEOTBL PHINDGEOTBL Indicator 2: Improved land and forest management with reduced carbon emissions in selected sites in 6 watersheds(hectare(ha), Custom) Value 1,008, ,104, ,027, The figure of 1,008,858 hectares as baseline in PDO 2 was derived from the Payment of Environmental Services (PES) in the large watersheds. Due to the design and establishment of commitments in the project (CONAFOR counterpart and goal in indicator 2.2), CONAFOR considers pertinent to continue contemplating the intervention in these large watersheds. The PES in effect in these large basins under CONAFOR in 2016 was 1,082,694.86, and under the "Biodiversity Heritage Fund" was 12,212 hectares in January These 1,082, hectares reported by CONAFOR account for 9,374 hectares (June 2017) reported by the subprojects in the Gulf of Mexico. Indicator 3: Integrated watershed/ subwatershed action plans (IWAPs) including municipal, regional, and federal levels (6 watersheds)(number, Custom) Value Four IWAPs finalized for Tuxpan, Antigua, Jamapa and Baluarte), and two in process of development (San Pedro and four watersheds of the following rivers-mascota, Pitillal, Cuale and Las Juntas). Overall Six integrated watershed/subwatershed action plans (IWAPs) including municipal, regional, and federal levels are in process of development. Final versions of four IWAPs are completed, including Jamapa, Baluarte, Tuxpan, and Antigua. Two IWAPs are in the process of development (San Pedro, and four watersheds of the Mascota, Pitillal, Cuale and Las Juntas rivers). With the support of the regional funds, INECC has developed models of six watersheds with comprehensive technical data that define priority sites to invest in defined activities that will maintain ecosystem services. The activities were defined through participatory workshops in two watersheds and will be available for six watersheds by the end of These IWAPs are already being considered by local organizations, CONANP and CONAFOR as a useful tool to direct investments from public programs and the private sector. The IWAPs are instruments that contain a high quality of information, the integration of variables, and sophisticated processes of analysis - an important strength for the Project. IWAPs can guide the resources available in the participating agencies of the Project so that they have a greater impact on the management of watersheds. IWAPs will also help regional coalitions of NGOs (such as the COBIJA) to establish methodological proposals for the well-being of watersheds. The IWAPs have generated a lot of interest in the public sector to manage payment of environmental Page 6 of 12
7 PHINDIRITBL PHINDIRITBL services. Intermediate Results Indicators Indicator 1.1: Protected areas meeting their management effectiveness target (Number, Custom) Value Five protected areas showed an improvement in their management effectiveness according to the GEF tracking tools (METT), exceeding its mid-term projection (4 protected areas). These protected areas are: Cofre de Perote, Pico de Orizaba, Lobos Tuxpan, Cañón de Usumacinta and Sistema Arrecifal. Improvement is measured in terms of increase in METT values: Cofre de Perote (METT score 100 [2012] [2016]), Pico de Orizaba (METT score 105 [2012] [2016]), Lobos Tuxpan (METT score 25 [2012] - 61 [2016]), Cañón de Usumacinta (METT score 57 [2012] - 59 [2016]), Sistema Arrecifal (METT score 63 [2012] - 69 [2016]). Eight additional protected areas will receive funding starting in June 2017: four in the Gulf of Mexico (Lobos Tuxpan, Los Tuxtlas, Sistema Arrecifal Veracruzano, Cañón de Usumacinta) and four in the Gulf of California (Marismas Nayarit, Marietas, Marías, and Isabel). The tracking tool will be extended to the Gulf of California as soon as funding is received. The decree of two new protected areas is advancing well, however, it is taking longer than expected due to its legal process. FMCN has secured funding from the Leona and Harry Helmsley Charitable Trust to support CONANP with the legal process. CONANP will continue promoting the new decrees through a comprehensive participatory approach. Declaration of the two new protected areas is expected in Indicator 1.2: Capitalization of permanent funding sources (Amount(USD), Custom) Value Capitalization of permanent funding sources has reached US$ 21.4 million. The client has a strategy in place to address financial sustainability and raise additional funds. The funding sources include: US$5.296 million from Packard; US$9.091 million from CONAFOR; and US$ 7.2 million from Braskem- Idesa; Helmsley; KfW; and Grupo Materias primas. Page 7 of 12
8 PHINDIRITBL PHINDIRITBL Indicator 2.1: PES, agro-ecosystem and sustainable forest management subprojects implemented in accordance with IWAPs (Hectare(Ha), Custom) Value , , , Total area in watersheds implementing Payment for Ecosystem Services (PES), agro-ecosystem and sustainable forest management subprojects in accordance with IWAPs is 21,586 hectares, surpassing the mid-term projection (13,866 ha) and end-target (18,696 ha). Of the 21,586 hectares, hectares refers to agro-ecosystem and sustainable forest management sub-projects and 12,212 hectares is in PES. In the next 2 years, the project will strengthen management effectiveness of this area, enhancing forest and land management practices across watersheds and engaging diverse stakeholders in collaborative planning, monitoring and learning. Therefore, the project does not anticipate to expand this area (there will be no further calls for subprojects or PSA) and the strategy is to consolidate efforts to ensure sustainability in landscape management of the 20,332 hectares. Indicator 2.2 CO2 avoided and sequestered in the targeted watersheds/subwatersheds (Percentage, Custom) Value The Project has revised the target for CO2 avoided and sequestered based on updated data considering reference values of vegetation types in Mexico, resulting in 2,095 MtCO2 in 5 years. The change is due to advances in Monitoring, Reporting and Verification (MRV) progress in Mexico. The figure included in the design of the Project was calculated based on average carbon per vegetation type using international standards (IPCC), while the adjusted figure is based on actual reference values of carbon per vegetation types of Mexico derived by CONAFOR from its National Forest and Soils Inventory. The project has verified the values using the FAO Ex Act Tool, based on 8,120 ha in agro-ecosystem and sustainable forest management sub-projects, as well as the 12,212 ha in PSA and the reduction in deforestation in protected natural areas. The result was 58% (2.33 MtCO2- December 2016) of CO2 avoided and sequestered in targeted watersheds. Page 8 of 12
9 PHINDIRITBL PHINDIRITBL Indicator 2.3 At least one functioning monitoring system per watershed (Number, Custom) Value The project has adopted two monitoring systems in each of the six watersheds. Communities are monitoring water quality in six watersheds applying internationally recognized protocols ( and monitoring biodiversity by adopting the SAR-MOD monitoring methodology. Data are being gathered and transferred to the National System for Biodiversity Monitoring (SNMB) at CONABIO and Global Water Watch (water quality) platforms. The first monitoring system, SAR-MOD, is a biodiversity tool developed by FMCN, CONABIO, CONAFOR and CONANP, who jointly defined the methodology and inputs for model development - a unique national effort that facilitated the development of a methodology in a strategic way, contributing to the National System for Biodiversity Monitoring (SNMB) coordinated by CONABIO. The project has financed the acquisition of the monitoring equipment and the training of communities to achieve the implementation of the SAR-MOD. The second monitoring system promoted by the project is the Community based Water Monitoring system developed by Global Water Watch (GWW). The characteristic of this system is that it collects information on physical-chemical and bacteriological aspects, as well as of flow, total suspended solids and macro-invertebrates. Acting as an early warning system, this range of parameters allows to generate knowledge on the bodies of surface water, with well-established protocols and periodic certifications to ensure the quality of the data. This system is being implemented by 10 community groups that joined the GWW network in Based on the recommendation of the independent evaluation, and discussions at mid-term review, the client and the Bank decided to eliminate this indicator, as it is repetitive with Intermediate Indicator 3.1. Indicator 3.1: Number of watersheds/ subwatersheds with priority sites being monitored with remote sensing and local data gatheringtechniques (Number, Custom) Value Six watersheds are being monitored with remote sensing and local data gathering techniques, reaching its mid-term and end-target for the project (6 watersheds). Biodiversity and community water monitoring systems are in place in the following watersheds: Tuxpan, Antigua, Jamapa, Huazuntlán, Temoloapa and Usumacinta basins. There are currently 18 biodiversity monitoring points and 9 water quality monitoring points. In addition, the project monitors the change in land use and carbon in these watersheds and in the Gulf of California. The national methodology to measure biodiversity and analyze ecosystem integrity was designed under the coordination of the National Commission for the Knowledge and Use of Biodiversity (CONABIO) and is being applied by the Project. Local organizations and protected areas are feeding with data the National System for Biodiversity Monitoring (SNMB). In December 2016, CONABIO launched the portal where analysis of the SNMB can be found. Community hydrological monitoring is taking place in six watersheds and data are being fed into the Global Water Watch (GWW) platform. The information generated and analyzed through the monitoring systems will be incorporated in the Integrated Watershed Action Plans (IWAPs) for each watershed, to strengthen local institutions and promote adaptive management. In October, INECC organized the first Page 9 of 12
10 PHINDIRITBL workshop to analyze results, reflect on actions conducted and propose adjustments to the IWAPs. During the mid-term review mission, it was agreed to refine Intermediate Indicator 3.1 as follows Number of watersheds/ subwatersheds with priority sites being monitored with biodiversity and water quality systems. Indicator 4.1: Number of local partners that have incorporated best land management practices (Number, Custom) Value The Project has made progress partnering with 5 local entities ( Fondo Ambiental Veracruzano, Instituto de Ecologia, Asociacion de Industriales de Veracruz, Junta Intermunicipal de Medio Ambiente Sierra Occidental y Costa-JISOC; Fondo Ambiental de Jalisco). Local organizations are working with protected area staff and are forming coalitions to improve their coordination. Inter-institutional coordination at the national level continues, while two state Regional Committees have been successfully established. The project has innovated in institutional collaboration schemes, from the coordination of the Project Technical Committee to finding links with other federal institutions. The project has strived adding partners that have political and economic impact to coordinate the IWAPs. At the state level, the Project has initiated processes to align investments, with the Veracruz Environmental Fund in the state of Veracruz, and with the Biodiversity Environmental Fund in the state of Jalisco. The Project Technical Committee has met regularly with a total of 16 meetings, where most of the agreements have been completed. The two state Regional Committees meet twice per year and allow for inter-institutional coordination of investments in the field. These Committees include state representatives of the Ministry of Agriculture and Husbandry (SAGARPA), National Water Commission (CONAGUA) and the National Commission for Indigenous Peoples (CDI). Three workshops have been organized, where all the stakeholders have participated and exchanged experiences. Topics covered at these meetings have included administrative and technical aspects of project management, safety in the field, collective impact, gender, water monitoring, and IWAPs. The FMCN organized a forum with the Industrial Association of Veracruz (AIEVAC) focused on the performance standards of the International Finance Corporation (IFC) and presenting the IWAPs as a tool to direct investments in offsets. The regional fund in the Gulf of Mexico together with 14 institutions organized the IV National Watershed Congress, which focused on the conservation of watersheds in the context of climate change and where all project partners participated. This academic event broke the historical record by reaching almost 1,000 participants. The different partners see the project as a unique effort in the country. The same was expressed by non-partner institutions such as the case of NAFINSA and SEMARNAT, and other partners at the state and local levels. Building real participatory processes implies transcending discourse by opening effective participatory processes. The project continues to build a full and open process with consultation mechanisms from the local level upwards to implement joint agendas. Despite the extensive work, this generates transversality in the decision making and, therefore, in the responsibility and appropriation of the Project. Overall Page 10 of 12
11 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 11-Dec Dec Mar Jun Jun-2019 Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) Page 11 of 12
12 There are no related projects. Page 12 of 12
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