BRAZIL National Biodiversity Mainstreaming and Institutional Consolidation Project and Sustainable Cerrado Initiative Report No. 154858 DECEMBER 18, 2020 © 2021 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW Washington DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org Attribution—Please cite the work as follows: World Bank. 2021. Brazil—National Biodiversity Mainstreaming and Institutional Consolidation Project and Sustainable Cerrado Initiative. Independent Evaluation Group, Project Performance Assessment Report 154858. Washington, DC: World Bank. This work is a product of the staff of The World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. 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Report No.: 154858 PROJECT PERFORMANCE ASSESSMENT REPORT BRAZIL NATIONAL BIODIVERSITY MAINSTREAMING AND INSTITUTIONAL CONSOLIDATION PROJECT (TF-91515) SUSTAINABLE CERRADO INITIATIVE (TF-96766, TF-96767, TF-97156, TF-97157) December 18, 2020 Financial, Private Sector, and Sustainable Development Independent Evaluation Group Abbreviations ARPA Amazon Region Protected Areas Program CBD Convention on Biological Diversity FIOCRUZ Oswaldo Cruz Foundation FUNBIO Brazilian Biodiversity Fund GEF Global Environment Facility GEF Cerrado Sustainable Cerrado Initiative (Phase 1) ha hectare IBAMA Brazilian Institute of Environment and Renewable Natural Resources ICMBio Chico Mendes Institute for Biodiversity Conservation ICR Implementation Completion and Results Report IEG Independent Evaluation Group MAPA Ministry of Agriculture, Livestock, and (Food) Supply MCTI Ministry of Science, Technology, and Innovation MMA Ministry of Environment PAD Project Appraisal Document PPAR Project Performance Assessment Report PROBIO National Biodiversity Project PROBIO 2 National Biodiversity Mainstreaming and Institutional Consolidation Project TTL task team leader All dollar amounts are US dollars unless otherwise indicated. IEG Management and PPAR Team Director-General, Independent Evaluation Ms. Alison Evans Director, Financial, Private Sector, and Sustainable Development Mr. José C. Carbajo Manager, Infrastructure and Sustainable Development (Acting) Mr. Stephen Hutton Task Managers Mr. Christopher Nelson This report was prepared by Christopher Nelson and John Redwood III, who assessed the project in November 2019. The report was peer reviewed by Christoph Diewald and panel reviewed by Ridley Nelson. Vibhuti Narang Khanna and Viktoriya Yevsyeyeva provided administrative support. ii Contents Summary ............................................................................................................................................................. vi 1. Background, Context, and Design ......................................................................................................... 1 Context and Background........................................................................................................................... 1 Objective, Design, and Financing of PROBIO 2 ................................................................................. 2 Objective, Design, and Financing of GEF Cerrado ............................................................................4 2. What Worked, What Didn’t Work, and Why? ................................................................................... 6 Results .............................................................................................................................................................. 6 Design and Preparation ........................................................................................................................... 12 Implementation and Supervision .......................................................................................................... 16 Lessons .......................................................................................................................................................... 19 Bibliography ..................................................................................................................................................... 29 Figures Figure 1.1. Simplified Theory of Change: The National Biodiversity Mainstreaming and Institutional Consolidate Project (PROBIO 2) ...........................................................................................4 Figure 1.2. Simplified Theory of Change: The Sustainable Cerrado Initiative (GEF Cerrado) .... 6 Appendixes Appendix A. Ratings ..................................................................................................................................... 33 National Biodiversity Mainstreaming and Institutional Consolidation Project (P094715) . 33 Sustainable Cerrado Project (P091827 and P121671) ..................................................................... 38 Appendix B. Fiduciary, Environmental, and Social Aspects ............................................................ 45 Appendix C. Methods and Evidence ...................................................................................................... 50 Appendix D. Additional Data .................................................................................................................... 55 iii Project Data This is a Project Performance Assessment Report (PPAR) by the Independent Evaluation Group (IEG) of the World Bank Group on the Brazil National Biodiversity Mainstreaming and Institutional Consolidation Project (P094715) and the Brazil Sustainable Cerrado Initiative (P091827 and P121671). This instrument and the methodology for this evaluation are discussed in appendix C. Following standard IEG procedure, copies of the draft PPAR were shared with relevant government officials for their review and comment; no comments were received. National Biodiversity Mainstreaming and Institutional Consolidation Project (P094715) Basic Data Country Brazil World Bank financing $22.0 million commitment Global Practice Environment and Natural Actual project cost $118.05 million Resources Project name National Biodiversity Expected project total cost $96.0 million Mainstreaming and Institutional Consolidation Project Project ID P094715 Actual amount disbursed U$22.0 million Financing instrument Specific investment loan Environmental assessment B category Financing source Global Environment Facility (GEF) Trust Fund Grant Dates Event Original Date Actual Date Concept review 03/21/2005 03/21/2005 Negotiations 03/19/2007 03/19/2007 Board approval 01/31/2008 01/31/2008 Effectiveness 09/12/2008 09/11/2008 Closing date 12/31/2013 12/31/2014 iv Key Staff Responsible Management Appraisal Completion Project team leader Adriana Gonçalves Moreira Adriana Gonçalves Moreira Practice manager Laura E. Tlaiye Emilia Battaglini Sector director or senior Global Laura Tuck Paula Caballero Practice director Country director John Briscoe Deborah L. Wetzel Sustainable Cerrado Initiative (P091827 and P121671) Basic Data Country Brazil World Bank financing $13.0 million commitment Global Practice Environment and Natural Actual project cost $38.43 million Resources Project name Sustainable Cerrado Expected project total cost $33.69 million Initiative Project ID P091827 and P121671 Actual amount disbursed $11.93 million Financing instrument Horizontal adaptable Environmental assessment B program loan category Financing source Global Environment Facility Trust Fund Grant Dates Event Original Actual Concept review 09/02/2004 09/02/2004 Negotiations 06/10/2009 06/10/2009 Board approval 03/18/2010 3/18/2010 Effectiveness 09/13/2010 09/10/2010 Closing date 12/01/2013 06/31/2015 Key Staff Responsible Management Appraisal Completion Project team leader Garo Batmanian Bernadete Lange Practice manager Karin Erika Kemper Raúl Alfaro-Pelico Sector director or senior Global Laura Tuck Paula Caballero Practice director Country director Makhtar Diop Martin Raiser v Summary Project Background and Description Brazil is the most biodiverse country in the world, holding an estimated one-fifth of all known flora and fauna species. It also contains a wide range of climate types in seven major biomes, including the vast Amazon and now largely depleted Atlantic rainforests, the Cerrado savanna (which covering 2 million square kilometers is second in size only to Amazônia), the semiarid Caatinga, the world’s largest Pantanal wetlands, and an extensive coastline. The National Biodiversity Mainstreaming and Institutional Consolidation Project (PROBIO 2) was funded by the Global Environment Facility (GEF). Its project development