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World Bank Document Document of The World Bank Public Disclosure Authorized Report No: 20040 KN PROJECT APPRAISAL DOCUMENT Public Disclosure Authorized ON A PROPOSED LEARNING AND INNOVATION CREDIT IN THE AMOUNT OF SDR 1.4 MILLION (US$ 1.91 MILLION EQUIVALENT) AND A GRANT FROM THE GLOBAL ENVIRONMENT FACILITY TRUST FUND IN THE AMOUNT OF SDR 2.0 MILLION (US$ 2.75 MILLION EQUIVALENT) TO THE KINGDOM OF CAMBODIA Public Disclosure Authorized FORA BIODIVERSITY AND PROTECTED AREAS MANAGEMENT PROJECT January 10, 2000 Public Disclosure Authorized Rural Development and Natural Resources Sector Unit (EASRD) East Asia and Pacific Region CURRENCY EQUIVALENTS (Exchange Rate Effective October 28, 1999) Currency Unit = Riel Riel= US$ 1 US$ 1 = Riel FISCAL YEAR January 1 December 31 ABBREVIATIONS AND ACRONYMS ADB Asian DevelopmentBank CDC Commune DevelopmentCommittee CARERE Community Area Rehabilitation and Regeneration Programme (UNDP) IAPSO Inter-AgencyProcurement Services Office IMSC Inter-Ministerial Steering Committee MAFF Ministry of Agriculture, Forestry and Fisheries MEF Ministry of Economyand Finance MOE Ministry of Environment MRD Ministry of Rural Development NGO Non-GovernmentalOrganization PHRD Policy and Human Resource DevelopmentFund (Japan) PLDF Provincial Local DevelopmentFund PMO Project Management Office PRDC Provincial Rural DevelopmentCommittee UNDP United Nationa DevelopmentFund VDC Village DevelopmentCommittee WFP World Food Programme WWF World Wildlife Fund Vice President: Jean-Michel Severino Country Manager/Director: Ngozi N. Okonjo-Iweala Sector Manager/Director: Geoffrey B. Fox Task Team Leader/Task Manager: Glenn S. Morgan Kingdom of Cambodia Biodiversity and Protected Areas ManagementProject CONTENTS A. Project DevelopmentObjective Page 1. Project developmentobjective 2 2. Global objective 2 3. Key performance indicators 2 B. Strategic Context 1. Sector-related Country Assistance Strategy (CAS) goal supported by the project 3 2. Main sector issues and Governmentstrategy 4 3. Learning and developmentissues to be addressed by the project 6 4. Learning and innovationexpectations 6 C. Project Description Summary 1. Project components 7 2. Institutionaland implementationarrangements 10 3. Monitoringand evaluation arrangements 12 D. Project Rationale (This section is not to be completed in a LIL PAD) E. Summary Project Analyses 1. Economic 13 2. Financial 13 3. Technical 14 4. Institutional 14 5. Social 14 6. Environmentalassessment 15 7. Participatory approach 15 F. Sustainabilityand Risks 1. Sustainability 16 2. Critical risks 16 3. Possible controversial aspects 17 G. Main Loan conditions 1. Effectivenessconditions 17 2. Other 17 H. Readiness for Implementation 18 I. Compliancewith Bank Policies 18 Annexes Annex 1: Project Design Summary 19 Annex 2: Detailed Project Description 23 Annex 3: Estimated Project Costs 30 Annex 4: GEF Incremental Cost Analysis 31 Annex 5: Financial Summary for Revenue-EamingProject Entities, or Financial Summary 34 Annex 6: Procurement and DisbursementArrangements 35 Annex 7: Project Processing Schedule 44 Annex 8: Documents in Project File 45 Annex 9: Statement of Loans and Credits 46 Annex 10: Country at a Glance 48 MAP(S) IBRD 30506 CAMBODIA Biodiversityand Protected Areas ManagementProject Project AppraisalDocument East Asia and Pacific Region EASES Date: January 10, 2000 Team Leader: Glenn S. Morgan Country Manager/Director:Ngozi N. Okonjo-Iweala Sector Manager/Director:Geoffrey B. Fox Project ID: P065798 Sector(s): VM - Natural Resources Management LendingInstrument: Learning and InnovationLoan (LIL) Theme(s): Poverty TargetedIntervention: N Global SupplementalID: P052006 Team Leader: Glenn S. Morgan Sector Manager/Director: Supplement Fully Blended? No Sector(s): VM - Natural ResourcesManagement ProjectFinancing Data I Loani Z Credit Z Grant C Guarantee E] Other (Specify) Global EnvironmentFacility Grant $2.75 million For Loans/Credits/Others: Amount(US$m): IDA Learning and InnovationLoan (LIL) $ 1.91 million ProposedTerms: Currency Pool Loan (CPL) Graceperiod (years): 10 Yearsto maturity:40 Commitmentfee: 0.5 Servicecharge: 0.75% C,X.,.,., S4r ~ ~ L~ . ______ GovenuMent 0.25 0.00 0.25 IBRD IDA 0.56 1.35 1.91 GLOBALENVIRONMENT FACILITY 0.35 2.40 2.75 Total: 1.16 3.75 4.91 Borrower/Recipient:KINGDOM OF CAMBODIA Responsibleagency: MINISTRY OF ENVIRONMENT Ministry of Environment Address: No. 48 Phreah Sihanouk, Tonle Bassac, Chamkarmon,Phnom Penh Contact Person: Dr. Mok Mareth Tel: 855 2342 7844 Fax: 855 2342 7844 Email: [email protected] Estimateddisbursements ( Bank FY/US$M): Annual 0.4 0.5 0.6 0.4 Cumulative 0.4 0.9 1.5 1.9 Projectimplementation period: 4 years Expectedeffectiveness date: 03/01/2000 Expectedclosing date: 02/28/2004 OCS FM) F-r IOctober G. 100 A: ProjectDevelopment Objective 1. Project development objective: (see Annex 1) The development objective of this project is to improve the capacity of the Ministry of Environmentto plan, implementand monitor an effective system of National Protected Areas. Toward that end, this project has two related immediate objectives. First, to develop and test proactive measures to minimize un-sustainable exploitation and degradation of the biodiversity of national and global significancein the Virachey National Park (VNP). Second, to use the experiences gained from VNP to fornulate institutional models for the development of the National Protected Areas system of Cambodia. The project has four closely integrated components: a National Policy and Capacity DevelopmentComponent; a Park Protection and Management Component; a ConmnunityDevelopment Component;and a project management component. The project also includes overall project management activities including annual budgeting, financial management, work program planning, performance monitoring, and procurement. At the present time, the Ministry of Environment (MOE) has little experience with establishment and management of protected areas on the ground. The experiences gained from this project would help the govemnmentto formulate a long term strategic vision for the national protected areas system and would help determine which approaches are most effective under the field conditions in Cambodia. The project will be implemented over a four year period by the Ministry of Environment in collaboration with the provincial governments of Stung Treng and Ratanakiri Provinces. The project will be financed by a GEF Grant (US$ 2.75 million); an IDA Learning and Innovation Loan (US$ 1.91 million); and GOC counterpart financing of (US$ 0.25 million). 2. Global objective: (see Annex 1) The global objective of the project is to assist the Government of Cambodia to achieve sustainable long-term utilization of its natural resources, especially its mountain forest ecosystems of regional and global significance. In particular, the project aims at developing an effective national protected areas system that is based on a consistent and well articulated set of management, financial, and institutional procedures within a well functioninglegal and regulatory framework. The project will contribute to global environmental goals of biodiversity protection in one of the most important remaining forest areas of South-East Asia that is widely recognized for its conservationimportance. 3. Key performanceindicators: (see Annex 1) Relevant methodologiesand approaches developed at VNP are widely shared with the managers of other national parks in Cambodia; * MOE implements key recommendations from organizational reviews, sustainable fnance, legal and regulatory studies; Staff trained as part of leadership and ranger training are able to use skills in day-to-day work; MOE initiates and maintains effective partnerships with other GOC ministries, international donors, and civil society in the protection of national parks; Protection and management operations adopted at VNP lead to increased understanding among all stakeholders of the importance of reducing unsustainable and illegal exploitation of the natural resources of VNP; The knowledge base describing the ecological and ethnographic dimensions of VNP is significantly increased and disseminatedwidely; Methodologies for involving communities in participatory park management planning and protection are -2 - fully developed,tested and evaluated for all pilot villages; * Community awareness of the importance of VNP and willingness to participate in initiatives which further park managementobjectives is increased in all pilot communities; Community resource management plans are formulated for all pilot villages and implementationhas begun in 90 percent of pilot villages. B: StrategicContext 1. Sector-relatedCountry Assistance Strategy (CAS) goal supported by the project: (see Annex 1) Documentnumber: IDA/R97-8 Dateof latestCAS discussion: 02/20/97 Sustainable use and management of natural resources and implementation of the country's National Environmental Action Plan (NEAP) are two key objectives of the 1997 CAS. The CAS focuses specifically on the need for follow up actions on two initiatives -- the National EnvironmentalAction Plan (NEAP) and the World Bank Group, FAO and UNDP assistance to the Government on forest policy reforms. The NEAP (1997) provides a detailed strategic framework to guide the integration of environmental concerns into national and local development policies, economic decision-making, and investmentplanning. The establishment of an effectiveProtected Areas Management System was identified as a critical element of the country's environmentalstrategy. The project
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