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GEF Medium-Sized Project Public Disclosure Authorized PROJECT BRIEF ON A Public Disclosure Authorized PROPOSED GRANT FROM THE GLOBAL ENVIRONMENT FACILITY TRUST FUND IN THE AMOUNT OF US$0.9 MILLION TO THE REPUBLIC OF CHILE Public Disclosure Authorized FOR THE DESIGN AND IMPLEMENTATION OF A BIODIVERSITY MANAGEMENT SYSTEM IN THE MINISTRY OF PUBLIC WORKS March 22, 2012 Public Disclosure Authorized MEDIUM-SIZED PROJECT PROPOSAL REQUEST FOR FUNDING UNDER THE GEF TRUST FUND GEFSEC PROJECT ID: 3998 IA/ExA PROJECT ID: P108740 FINANCING PLAN ($) COUNTRY: Chile PPG Project* PROJECT TITLE: Chile: Design and Implementation GEF Total 909,090 of a Biodiversity Management System (BMS) in Co-financing (provide details in Section b: Co- the Ministry of Public Works (MOP) financing) GEF IA/ExA: World Bank GEF IA/ExA 1,032,000 OTHER PROJECT EXECUTING AGENCY(-IES): Ministry of Public 16,000 8,122,200 Ministry of Public Works and Fundación Biodiversa Works DURATION: 3 years for Project implementation Fundación 37,932 GEF FOCAL AREA: Biodiversity Biodiversa GEF STRATEGIC OBJECTIVES (SO): SO-2 ―To Co-financing Total 16,000 9,192,132 Mainstream Biodiversity in Production Total 16,000 10,101,222 Landscapes/Seascapes and Sectors‖ Financing for Associated Activities, if GEF OPERATIONAL PROGRAM: Biodiversity- Strategic Program 4-Policy (Strengthening the Policy any: and Regulatory Framework for Mainstreaming Biodiversity) * If Project is multi-focal, indicate agreed split between focal area allocations IA/ExA FEE: CONTRIBUTION TO KEY INDICATORS IDENTIFIED IN FOR JOINT PARTNERSHIP** THE FOCAL AREA STRATEGIES: GEF PROJECT/COMPONENT ($) BMS incorporated into MOP Internal Standard (Agency Name) (Share) (Fee) Operating Procedures (ISOP) (Agency Name) (Share) (Fee) manuals/documents (Agency Name) (Share) (Fee) At least 25 million hectares valued by BMS by the end of MSP BMS developed, tested, and integrated in MOP’s decision-making system ** Projects that are jointly implemented by more than one IA or ExA MILESTONES DATES PIF APPROVAL 15 September 2009 PPG APPROVAL N.A. MSP EFFECTIVENESS 01 June 2012 MSP START 01 June 2012 MSP CLOSING 28 May 2015 TE/PC REPORT* 28 August 2015 *Terminal Evaluation/Project Completion Report Approved on behalf of the World Bank. This proposal has been prepared in accordance with GEF policies and procedures and meets the standards of the Review Criteria for GEF Medium-sized Projects. Karin Shepardson, Executive Coordinator, World Enos E.Esikuri Bank Project Contact Person Resubmission: - Tel. and e-mail: (202) 458-7225 [email protected] 2 LIST OF ACRONYMS BMS Biodiversity Management System CBD Convention on Biological Diversity CI Conservation International CITES Convention on International Trade in Endangered Species of Wild Fauna and Flora CONAF Forestry National Corporation [Corporación Forestal Nacional] CONAMA National Commission for the Environment CPS Country Partnership Strategy DGA General Directorate of Water [Dirección General de Agua] DPL Development Policy Loan EA Executing Agency EIA Environmental Impact Assessment EIAS Environmental Impact Assessment System GDP Gross Domestic Product GIS Geographic Information System IA Implementing Agency IBRD International Bank for Reconstruction and Development IFC International Finance Corporation ISOP Internal Standard Operating Procedures ISP Institutional Strengthening Program MA Ministry of Environment [Ministerio del Ambiente] MOP Ministry of Public Works MOU Memorandum of Understanding MSP Medium-Sized Project NBS National Biodiversity Strategy NGO Non-Governmental Organization OECD Organization for Economic Co-operation and Development PASMA Mining Sector Institutional Strengthening Project in Argentina [Programa de Fortalecimiento Institucional] SAG Agricultural and Livestock Service [Servicio Agrícola y Ganadero] SEMAT Secretariat of Environment and Territory [Secretaría Ejecutiva de Medio Ambiente y Territorio] TAL Technical Assistance Project TIS Territorial Information System WWF World Wide Fund for Nature 3 TABLE OF CONTENTS 1. PROJECT SUMMARY............................................................................................... 5 a) Project Rationale, Objectives, Outcomes/Outputs, and Activities. ............................ 5 b) Key Indicators, Assumptions, And Risks ................................................................. 14 c) Country Eligibility .................................................................................................... 19 d) Country Drivenness .................................................................................................. 19 2. PROGRAM AND POLICY CONFORMITY ......................................................... 19 a) Program Designation And Conformity ..................................................................... 19 b) Project Design........................................................................................................... 20 c) Sustainability ............................................................................................................ 24 d) Replicability.............................................................................................................. 25 e) Stakeholder Involvement .......................................................................................... 25 f) Monitoring And Evaluation ...................................................................................... 26 3. FINANCING .......................................................................................................... 29 a) Project Costs ............................................................................................................. 29 b) Project Management Budget/ cost ............................................................................ 29 c) Consultants working for technical assistance component ........................................ 29 d) Co-financing sources ................................................................................................ 32 e) Cost-Effectiveness .................................................................................................... 32 4. INSTITUTIONAL COORDINATION AND SUPPORT .................................. 33 a) Core Commitments And Linkages........................................................................... 33 b) Project Implementation Arrangement ...................................................................... 34 List of Annexes Annex 1. Incremental Cost Analysis ................................................................................ 37 Annex 2. Results Framework Matrix ................................................................................ 40 Annex 3. Project Management Structure .......................................................................... 45 Annex 4. Brief Description of the Project Executing Agency .......................................... 47 Annex 5. Financial Management and Disbursement Arrangements ................................ 49 Annex 6. Procurement Arrangements ............................................................................... 54 Annex 7. Environmental and Social Safeguard Policies .................................................. 58 Annex 8. Map of Ecoregions in Chile .............................................................................. 61 Annex 9. Description of the Pilot Ecoregions .................................................................. 62 4 1. PROJECT SUMMARY A) PROJECT RATIONALE, OBJECTIVES, OUTCOMES/OUTPUTS, AND ACTIVITIES. 1. Chile’s economy is the most stable and competitive in South America. This competitiveness has traditionally stemmed from a strong focus on extremely efficient roads and irrigation systems. The country has rapidly recovered from the economic slowdown and financial crisis of the late 1990s, doubled per capita gross domestic product (GDP) since 1990, and cut poverty by more than half. A cornerstone of this trend is the country’s commitment to prudent economic management, sound, consensual governance, and proactive social investments. The Chilean Government has pursued a coherent development program built around equality of opportunity, which is aimed at accelerating growth, expanding global commercial linkages, improving education, safeguarding natural resources, and strengthening competitiveness while addressing acute and longstanding social problems. 2. The Chilean Government has placed great importance on the decision of the Organization for Economic Co-operation and Development (OECD) to accept the country as an official member. The World Bank, through its IBRD-IFC Country Partnership Strategy (CPS), is supporting the Government to meet its goal of attaining OECD income levels as well as achieving living and environmental standards that would put it on a path to growth and social equity. 3. At the same time, Chile depends significantly on the use of its natural resources, including its extractive industries. Chilean GDP still relies heavily on copper production, which accounts for approximately 20 percent, followed by fishing and aquaculture, forestry, and agricultural industries. Recently, economic activity relating to tourism has grown exponentially. In particular, tourism focusing on pristine environments is generating significant demand for access and related services. Copper extraction activities are concentrated in the north, and forestry and agriculture primarily in the south. In the central areas of the country, the Mediterranean climate