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World Bank Document Document of The World Bank Public Disclosure Authorized Report No. 46446-PE PROJECT APPRAISAL DOCUMENT ON A PROPOSED GRANT Public Disclosure Authorized FROM THE GLOBAL ENVIRONMENT FACILITY TRUST FUND IN THE AMOUNT OF US$8.891 MILLION TO THE PERUVIAN TRUST FUND FOR NATIONAL PARKS AND PROTECTED AREAS (PROFONANPE) FOR A Public Disclosure Authorized STRENGTHENING BIODIVERSITY CONSERVATION THROUGH THE NATIONAL PROTECTED AREAS PROGRAM April 7, 2010 Sustainable Development Department Bolivia, Chile, Ecuador, Peru and Venezuela Country Management Unit Latin America and the Caribbean Region Public Disclosure Authorized This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. REPUBLIC OF PERU FISCAL YEAR January 1–December 31 CURRENCY EQUIVALENTS (Exchange Rate Effective: March 24, 2010) Currency Unit = Nuevos Soles 2.83 Nuevos Soles = US$ 1 WEIGHTS AND MEASURES Metric System ABBREVIATIONS AND ACRONYMS APECO Peruvian Association for the Conservation of Nature CBD Convention on Biological Diversity CIMA Center for Conservation, Research and Management of Protected Areas CONAM National Environmental Council COP Conference of the Parties of the CBD DPL Development Policy Loan ENV DPL Series of Programmatic Environmantal Developmnet Loans GEF Global Environment Facility GoP Government of Peru GPAN Participatory Management of Protected Areas Project IANP Bureau of Natural Protected Areas IBRD International Bank for Reconstruction and Development INRENA National Institute for Natural Resources LAC Latin America and Caribbean MEF Ministry of Economy and Finance METT Management Effectiveness Tracking Tool MINAM Ministry of Environment MPA Municipal Protected Areas NCI Nature and Culture International NCSA National Capacity Self-Assessment OPI Public Investment Office PA Protected Area PCM National Cabinet Presidency PDRS Rural Sustainable Development Program PIMA Indigenous Management of Protected Areas in the Peruvian Amazon PIP Public Investment Projects PN National Park [IUCN Cat. II] PPA Private Protected Area PROCREL Loreto Region Conservation Program PROFONANPE Peruvian Trust Fund for National Parks and Protected Areas PRONANP Strengthening Biodiversity Conservation through the National Protected Areas Program Project (The Proposed Project) PRONATURALEZA Peruvian Foundation for Nature Conservation RENACAL National Network of Regional and Local Protected Areas RN National Reserve [IUCN Cat. VI] RNSIIPG National Reserve System of Guano Islands, Islets and Capes RPA Regional Protected Areas ii RP Landscape Reserve [IUCN Cat. V] SERNANP National Natural Protected Areas Service SINANPE National System of Natural Areas Protected by the State SN National Sanctuary [IUCN Cat. III] SNIP National System of Public Investment SPDA Peruvian Environmental Law Society TNC The Nature Conservancy UICN World Conservation Union UNEP United Nations Environment Program UNPD United Nations Development Program WWF World Wildlife Fund/World Wide Fund for Nature ZR Reserved Zone Note: all figures in the document are expressed in US Dollars Vice President: Pamela Cox Country Manager/Director: Carlos Felipe Jaramillo Sector Director: Laura Tuck Sector Manager: Karin Kemper Task Team Leader: Gabriela Arcos iii PERU STRENGTHENING BIODIVERSITY CONSERVATION THROUGH THE NATIONAL PROTECTED AREAS PROGRAM Contents Page I. STRATEGIC CONTEXT AND RATIONALE ...................................................................... 1 A. Country and sector issues .................................................................................................... 1 B. Rationale for Bank involvement ......................................................................................... 3 C. Higher level objectives to which the project contributes .................................................. 5 II. PROJECT DESCRIPTION .................................................................................................... 5 A. Lending instrument.............................................................................................................. 5 B. Project development objective and key indicators ............................................................ 5 C. Project Components ............................................................................................................. 7 D. Lessons learned and reflected in project design .............................................................. 10 E. Alternatives considered and reasons for rejection .......................................................... 12 III. IMPLEMENTATION .......................................................................................................... 13 A. Partnership arrangements ................................................................................................ 13 B. Institutional and implementation arrangements ............................................................. 14 C. Monitoring and evaluation of outcomes........................................................................... 15 D. Sustainability and replicability ......................................................................................... 16 E. Critical risks and possible controversial aspects ............................................................. 17 F. Grant conditions and covenants ........................................................................................ 19 IV. APPRAISAL SUMMARY ................................................................................................... 20 A. Economic and financial analyses ...................................................................................... 21 B. Technical ............................................................................................................................. 23 C. Fiduciary ............................................................................................................................. 23 D. Social ................................................................................................................................... 24 E. Environment ....................................................................................................................... 25 F. Safeguard policies ............................................................................................................... 25 G. Policy exceptions and readiness ........................................................................................ 27 iv ANNEXES Annex 1: Country and Sector or Program Background ..................................................... 29 Annex 2: Major Related Projects Financed by the Bank and/or other Agencies ............. 39 Annex 3: Results Framework and Monitoring .................................................................... 44 Annex 4: Detailed Project Description .................................................................................. 53 Annex 5: Project Costs ........................................................................................................... 63 Annex 6: Implementation Arrangements ............................................................................. 63 Annex 7: Financial Management and Disbursement Arrangements ................................. 69 Annex 8: Procurement Arrangements .................................................................................. 82 Annex 9: Economic and Financial Analysis ......................................................................... 87 Annex 10: Safeguard Policy Issues ........................................................................................ 92 Annex 11: Project Preparation and Supervision ............................................................... 105 Annex 12: Documents in the Project File ........................................................................... 106 Annex 13: Statement of Loans and Credits ........................................................................ 108 Annex 14: Country at a Glance ........................................................................................... 110 Annex 15: Incremental Cost Analysis ................................................................................. 112 Annex 16: Ecological Corridors Approach ........................................................................ 119 Annex 17: Maps .................................................................................................................... 125 v PERU Strengthening Biodiversity Conservation through the National Protected Areas Program PROJECT APPRAISAL DOCUMENT LATIN AMERICA AND CARIBBEAN LCSEN Date: April 7, 2010 Team Leader: Gabriela Arcos Country Director: Carlos Felipe Jaramillo Sectors: Sub-national government Sector Manager/Director: Karin Kemper administration (50%); General public administration sector (25%);General agriculture, fishing and forestry sector (25%) Project ID: P095424 Environmental category: B Lending Instrument: GEF Grant Project Financing Data [ ] Loan [ ] Credit [ X] Grant [ ] Guarantee [ ] Other: For Loans/Credits/Others: Global Environment Facility: $ 8.891 million Total Bank financing (US$m.): $ 0.0 million Proposed terms: N/A Financing Plan (US$m) Source Local Foreign Total Government of Perú (SERNANP) 0.599 0.00 0.599 Global Environment Facility 8.891 0.00 8.891 GERMANY: KREDITANSTALT FUR 8.225 0.00 8.225 WIEDERAUFBAU (KfW) Private Sector
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