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Document of The World Bank Group FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No.: PAD1634 PROJECT APPRAISAL DOCUMENT ON A Public Disclosure Authorized PROPOSED GRANT FROM THE BIOCARBON FUND PLUS IN THE AMOUNT OF US$18 MILLION TO THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA FOR THE OROMIA NATIONAL REGIONAL STATE FORESTED LANDSCAPE Public Disclosure Authorized PROJECT March 16, 2017 Environment and Natural Resources Global Practice Public Disclosure Authorized Africa Region 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. CURRENCY EQUIVALENTS (Exchange Rate Effective January 31, 2017) Currency Unit = Ethiopian birr (ETB) ETB 22.61 = US$1 FISCAL YEAR July 8 – July 7 ABBREVIATIONS AND ACRONYMS AD Activity Data A/R Afforestation/Reforestation AGP Agricultural Growth Project ANR Assisted Natural Regeneration BioCF BioCarbon Fund BoANR Bureau of Agriculture and Natural Resources BoRLAU Bureau of Rural Land Administration and Use BoWME Bureau of Water, Minerals, and Energy BSM Benefit Sharing Mechanism CBO Community-based Organization CDM Clean Development Mechanism CRGE Climate Resilient Green Economy CSA Climate-smart Agriculture DA Development Agent DFID U.K. Department for International Development EF Emission Factor EFY Ethiopian Fiscal Year EIA Environmental Impact Assessment EMA Ethiopian Mapping Agency ER Emission Reduction ERPA Emission Reductions Purchase Agreement ESMF Environmental and Social Management Framework ESPES Enhancing Shared Prosperity Through Equitable Services EWCA Ethiopia Wildlife Conservation Authority FCPF Forest Carbon Partnership Facility FM Financial Management FRL Forest Reference Level FDRE Federal Democratic Republic of Ethiopia GEF Global Environment Facility GHG Greenhouse Gas GoE Government of Ethiopia GIS Geographic Information System GIZ German Agency for International Cooperation (Deutsche Gesellschaft für Internationale Zusammenarbeit) GRM Grievance Redress Mechanism GRS Grievance Redress Service ii GTP Growth and Transformation Plan ICB International Competitive Bidding ICS Improved Cook Stoves IFC International Finance Corporation IFR Interim Financial Report ILUP Integrated Land Use Plan INDC Intended Nationally Determined Contribution ISFL Initiative for Sustainable Forest Landscapes (of the BioCarbon Fund) ISLA Initiative for Sustainable Landscapes ISP Implementation Support Plan IWSM Integrated Watershed Management JICA Japan International Cooperation Agency LED Low Emissions Development LIFT Land Investment for Transformation LULC Land Use and Land Cover LUPT Land-use Planning Team M&E Monitoring and Evaluation MEFCC Ministry of Environment, Forest, and Climate Change MIS Management Information System MOANR Ministry of Agriculture and Natural Resources MoFEC Ministry of Finance and Economic Cooperation MoWIE Ministry of Water, Irrigation, and Electricity MRV Monitoring, Reporting, and Verification NFI National Forest Inventory NFMS National Forest Monitoring System NBE National Bank of Ethiopia NBPE National Biogas Program of Ethiopia NGO Nongovernmental Organization NPV Net Present Value NTFP Non-timber Forest Products NICSP National Improved Cookstoves Program OEFCCA Oromia Environment, Forest and Climate Change Authority OFLP Oromia National Regional State Forested Landscape Program OFWE Oromia Forest and Wildlife Enterprise ORCU Oromia REDD+ Coordination Unit ORSC Oromia REDD+ Steering Committee PAD Project Appraisal Document PBS Promoting Basic Services PDO Program Development Objective PES Payments for Ecosystem Services PF Process Framework PFM Participatory Forest Management PIM Program Implementation Manual PP Procurement Plan PSNP Productive Safety Net Program YR (Program) Year iii RE Recipient Executed REDD+ Reducing Emissions from Deforestation and Forest Degradation, conservation of forests, sustainable forest management and enhancement of forest carbon stocks REL Reference Emissions Level RETF Recipient-Executed Trust Fund RPF Resettlement Policy Framework SA Social Assessment SESA Strategic Environmental and Social Assessment SDP Social Development Plan SLM Sustainable Land Management SLMP Sustainable Land Management Program SNNPR Southern Nations, Nationalities, and Peoples Region TA Technical Assistance tCO2e Tons of carbon dioxide equivalent ToR Terms of Reference UNDP United Nations Development Programme UNFCCC United Nations Framework Convention on Climate Change USDOS United States Department of State MoCE Norway Ministry of Climate and Environment WoANR Woreda Office of Agriculture and Natural Resources WoEFCC Woreda Office of Environment, Forest, and Climate Change WoFED Woreda Office of Finance and Economic Development WoRLAU Woreda Office of Rural Land Administration and Use WoWME Woreda Office of Water, Minerals, and Energy ZoANR Zone administration office of Agriculture and Natural Resources ZoEFCCA Zone office of Environment, Forest, and Climate Change Authority ZoRLAU Zone office of Rural Land Administration and Use ZoWME Zone office of Water, Minerals, and Energy Regional Vice President: Makhtar Diop Country Director: Carolyn Turk Senior Global Practice Director: Karin Kemper Practice Manager: Magda Lovei Task Team Leader(s): Stephen Danyo iv Federal Democratic Republic of Ethiopia Oromia National Regional State Forested Landscape Project (P156475) Table of Contents I. Strategic Context .................................................................................................................. 1 A. Country context ................................................................................................................ 1 B. Sectoral and institutional context ..................................................................................... 2 C. Higher level objectives to which the program contributes .............................................. 6 II. Program Development Objectives ...................................................................................... 6 A. PDO.................................................................................................................................. 6 III. Program Description ........................................................................................................... 9 A. Program components ..................................................................................................... 14 B. Program financing .......................................................................................................... 15 C. Lessons learned and reflected in the program design .................................................... 17 IV. Implementation .................................................................................................................. 18 A. Institutional and implementation arrangements ............................................................. 18 B. Results monitoring and evaluation................................................................................. 21 C. Sustainability.................................................................................................................. 22 V. Key Risks and Mitigation Measures ................................................................................ 23 A. Risk rating summary ...................................................................................................... 23 B. Overall risk rating explanation....................................................................................... 23 VI. Appraisal Summary ........................................................................................................... 29 A. Economic and financial analysis .................................................................................... 29 B. Technical ........................................................................................................................ 32 C. Financial management ................................................................................................... 33 D. Procurement management .............................................................................................. 34 E. Social (including safeguards) ......................................................................................... 35 F. Environment (including safeguards) .............................................................................. 37 G. World Bank Grievance Redress Service ........................................................................ 38 Annex 1: Results Frameworks and Monitoring ....................................................................... 39 Annex 2: Detailed Program Description ................................................................................... 66 v Annex 3: Implementation Arrangements ................................................................................. 85 Annex 4: Implementation Support Plan ................................................................................. 134 Annex 5: Lessons Learned and Reflected in the OFLP......................................................... 137 Annex 6: Benefit Sharing Mechanism for the OFLP ............................................................ 141 Annex 7: Methodology for Carbon Accounting ..................................................................... 145 Annex 8: OFLP Safeguards Management Approach ...........................................................
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