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FIP Investment Plan for Democratic Republic of Congo

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FIP Investment Plan for Democratic Republic of Congo FIP/SC.6/4 June 7, 2011 Meeting of the FIP Sub-Committee Cape Town, South Africa June 29 and 30, 2011 Agenda Item 5 INVESTMENT PLAN DEMOCRATIC REPUBLIC OF CONGO Proposed Decision by FIP Sub-Committee The FIP Sub-Committee, having reviewed the Investment Plan for the Democratic Republic of Congo, (document FIP/SC.6/4), a) endorses the Investment Plan as a basis for the further development of the projects foreseen in the plan and takes note of the requested funding of USD60million in grant funding. The Sub-Committee reconfirms its decision on the allocation of resources, adopted at its meeting in November 2010, that a range of funding for the country should be used as a planning tool in the further development of project and program proposals to be submitted to the FIP Sub-Committee for FIP funding approval, recognizing that the minimum amount of the range is more likely and that the upper limit of the range will depend on availability of funding. The range of funding agreed for the Democratic Republic of Congo is USD 40-60 million in FIP resources. The Sub-Committee also recognizes that the quality of the proposed activities will be a significant factor in the funding to be approved by the Sub-Committee when project and program proposals are submitted for approval of FIP funding. b) approves a total of USD1.6million in FIP funding as a preparation grant for the following projects, i. USD300,000 for the project “Addressing Deforestation and Degradation in the Kinshasa Supply Area”, (World Bank) ii. USD400,000 for the project “Addressing Deforestation and Degradation in the Mbuji Mayi/Kananga Supply Area”, (AfDB) iii. USD400,000 for the project “Addressing Deforestation and Degradation in the Kisangani Supply Area”, (AfDB) iv. USD250,000 for the project “Small Grants Program to Promising Small-scale REDD+ Initiatives”, (World Bank) v. USD250,000 for the project “Engaging private sector in REDD+ in DRC”, (World Bank) to be developed under the investment plan; c) takes note of the estimated budget for project preparation and supervision services for the project(s) referenced above and approves a first tranche of funding for MDB preparation and supervision services as follows1: i. USD300,000 for the project “Addressing Deforestation and Degradation in the Kinshasa Supply Area”, (World Bank) 1 For private sector projects, MDB preparation and supervision costs are determined at investment development stage and requested at a later point in time. ii. US300,000 for the project “Addressing Deforestation and Degradation in the Mbuji Mayi/Kananga Supply Area”, (AfDB) iii. USD300,000 for the project “Addressing Deforestation and Degradation in the Kisangani Supply Area”, (AfDB) iv. USD300,000 for the project “Small Grants Program to Promising Small-scale REDD+ Initiatives”, (World Bank) v. USD250,000 for the project “Engaging private sector in REDD+ in DRC”, (World Bank) d) requests the Government of the Democratic Republic of Congo and the MDBs to take into account all written comments submitted by Sub-Committee members by July 15, 2011 in the further development of the projects. Dem ocratic Republic of Congo Ministry of Environment , Nature Conservation and Tourism Forest Investment Program Investment Plan 30/05/2011 Table of Content SUMMARY OF COUNTRY INVESTMENT PLAN ................................................................................................... 5 EXECUTIVE SUMMARY ................................................................................................................................... 10 TABLE OF ACRONYMS .................................................................................................................................... 15 FOREWORD .................................................................................................................................................... 16 1. DESCRIPTION OF THE NATIONAL AND SECTORAL CONTEXT ................................................................... 17 1.1. CAUSES AND FACTORS OF DEFORESTATION ...................................................................................... 17 1.2. THE INSTITUTIONAL MECHANISM FOR REDD+ PREPARATION ........................................................... 20 1.3. FOREST GOVERNANCE MECHANISMS ................................................................................................ 23 2. INVENTORY OF GREENHOUSE GAS REDUCTION POSSIBILITIES ............................................................... 23 3. COMPATIBILITY OF THE POLITICAL AND REGULATORY FRAMEWORK WITH THE REDD+ PROGRAMS ..... 25 3.1. THE LAND MANAGEMENT FRAMEWORK ........................................................................................... 25 3.2. THE BIOMASS ENERGY VALUE-CHAIN FRAMEWORK .......................................................................... 26 3.3. BARRIERS TO PUBLIC AND PRIVATE INVESTMENT ............................................................................. 27 4. COLLABORATION WITH MULTILATERAL DEVELOPMENT BANKS AND OTHER PARTNERS ....................... 28 5. IDENTIFICATION AND JUSTIFICATION OF THE PROGRAMS TO BE CO-FINANCED BY THE FIP .................. 33 5.1. CONTEXT ........................................................................................................................................... 33 5.2. SELECTION OF ACTIVITIES .................................................................................................................. 34 5.2.1. SECTORAL ACTIVITIES ......................................................................................................................... 34 5.2.2. ENABLING ACTIVITIES ......................................................................................................................... 39 5.3. SELECTION OF GEOGRAPHIC AREAS ................................................................................................... 41 5.4. PROGRAMS PROPOSED ..................................................................................................................... 43 5.4.1. THE KINSHASA SUPPLY AREA PROGRAM ................................................................................................ 44 5.4.2. THE KANANGA & MBUJI -MAYI SUPPLY AREA PROGRAM ........................................................................... 47 5.4.3. THE KISANGANI SUPPLY AREA PROGRAM .............................................................................................. 49 5.4.4. THE PROGRAM FOR ENGAGING PRIVATE SECTOR IN REDD+ ....................................................................... 51 5.4.5. SMALL GRANTS PROGRAM SUPPORTING INNOVATING INITIATIVES WITH STRONG CO -BENEFITS .......................... 52 5.5. COMPLIANCE WITH THE OBJECTIVES OF THE FIP ............................................................................... 54 6. EXPECTED CO-BENEFITS FROM FIP INVESTMENTS ................................................................................. 54 7. IMPLEMENTATION POTENTIAL AND EVALUATION OF RISKS .................................................................. 56 7.1. EVALUATION OF RISKS ....................................................................................................................... 56 7.2. IMPLEMENTATION POTENTIAL .......................................................................................................... 57 8. PLAN AND FINANCING INSTRUMENTS ................................................................................................... 60 9. PRELIMINARY RESULT FRAMEWORK ...................................................................................................... 63 APPENDIX 1: PROPOSED PROGRAMS ............................................................................................................. 66 Program 1 (geographic): Kinshasa supply area ............................................................................................ 67 Program 2 (geographic): Kananga & Mbuji-Mayi supply area .................................................................... 73 Program 3 (geographic): Kisangani supply area .......................................................................................... 79 Program 4: Engaging Private Sector in REDD+ ............................................................................................. 85 Program 5 (cross cutting): Small grants ....................................................................................................... 91 APPENDIX 2: STAKEHOLDERS CONSULTATION ............................................................................................... 97 APPENDIX 3: DEDICATED GRANT MECHANISM FOR INDIGENOUS PEOPLES AND LOCAL COMMUNITIES ...... 105 APPENDIX 4: TIMELINE FOR THE REDD PROCESS ELEMENTS ESSENTIAL TO THE FIP ..................................... 107 APPENDIX 5: PRIORITY AREAS SELECTION MATRIX FOR THE FIP ................................................................... 108 APPENDIX 6: SUMMARY TABLE OF POTENTIAL RISKS ................................................................................... 109 APPENDIX 7: TERMS OF REFERENCE OF THE STRATEGIC ENVIRONMENTAL AND SOCIAL ASSESSMENT ........ 112 APPENDIX 8: STRATEGY FOR PRIVATE SECTOR INVOLVEMENT ..................................................................... 124 APPENDIX 9: EVALUATION BY THE EXPERT FROM THE TECHNICAL ADVISORY PANEL & ANSWERS FROM THE DRC .............................................................................................................................................................
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