Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: PAD1492 INTERNATIONAL DEVELOPMENT ASSOCIATION PROJECT APPRAISAL DOCUMENT ON A PROPOSED GRANT IN THE AMOUNT OF US$37.5 MILLION Public Disclosure Authorized FROM THE LIBERIA FOREST LANDSCAPE SINGLE DONOR TRUST FUND TO THE REPUBLIC OF LIBERIA FOR A LIBERIA FOREST SECTOR PROJECT APRIL 19, 2016 Public Disclosure Authorized Environment & Natural Resources Global Practice Africa Region Public Disclosure Authorized This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective April 11, 2016) Currency Unit = Liberian Dollar (LR$) LR$91 = US$1 FISCAL YEAR July 1 – June 30 ABBREVIATIONS AND ACRONYMS AFC Authorized Forest Community AFOLU Agriculture, Forestry and Other Land Use AfT Agenda for Transformation CBO Community-Based Organization CFDC Community Forestry Development Committee CFE Community Forestry Enterprise CFMA Community Forest Management Agreement CFWG Community Forestry Working Group CI Conservation International CPS Country Partnership Strategy CQ Consultants’ Qualification CRL Community Rights Law CRL-R Community Rights Law Regulation CSO Civil Society Organization CTF Conservation Trust Fund DA Designated Account D&FD Deforestation and Forest Degradation ENNR East Nimba Nature Reserve EPA Environmental Protection Agency ER Emission Reduction ESMF Environmental and Social Management Framework ESRP Economic Stabilization and Recovery Plan EU European Union EXPAN Expansion of the Protected Area Network [Project] FAO Food and Agriculture Organization of the United Nations FBS Selection under a Fixed Budget FCPF Forest Carbon Partnership Facility FDA Forestry Development Authority FFI Fauna & Flora International FGRM Feedback and Grievance Redress Mechanism FLEGT Forest Law Enforcement, Governance and Trade program FM Financial Management FMC Forest Management Contract FO Farmers’ Organization FTI Forestry Training Institute GEMS Governance and Economic Management Support ii GHG Greenhouse Gas GIMPA Ghana Institute of Management and Public Administration GoL Government of Liberia GoN Government of Norway GRM Grievance Redress Mechanism GRS Grievance Redress Service GVL Golden Veroleum Liberia HCS High Carbon Stock HQ Headquarters ICB International Competitive Bidding IDH Initiatief Duurzame Handel (Sustainable Trade Initiative) IFC International Finance Corporation IFMIS Integrated Financial Management Information System IUFR Interim Unaudited Financial Report INDC Intended Nationally Determined Contributions ISR Implementation Status and Results Report LA Liberia Land Authority LC Land Commission LFI Liberia Forest Initiative LFSP Liberia Forest Sector Project LISGIS Liberia Institute of Statistics and Geo-Information Services LoI Letter of Intent LRP Livelihoods Restoration Plan LULUCF Land use, land-use change and forestry MD Managing Director M&E Monitoring and Evaluation METT Management Effectiveness Tracking Tool MFDP Ministry of Finance and Development Planning MLME Ministry of Land, Mines, and Energy MoA Ministry of Agriculture MoU Memorandum of Understanding MP Management Plan MRV Measurement, Reporting and Verification NCB National Competitive Bidding NCCS National Climate Change Secretariat NCCSC National Climate Change Steering Committee NFI National Forest Inventory NFMS National Forest Management Strategy NGO Nongovernmental Organization NMSMC National Multi-stakeholder Monitoring Committee NORAD Norwegian Agency for Development Cooperation NPV Net Present Value NRM Natural Resources Management NTFP Non-Timber Forest Products OP Operational Policy PDO Project Development Objective iii PF Process Framework PFMU Project Financial Management Unit PG Program Goal PIU Project Implementation Unit PPA Proposed Protected Area PP Procurement Plan PPP Public-Private Partnership PROSPER People, Rules, and Organizations Supporting the Protection of Ecosystem Resources PST Private Technical Service Providers PUP Private Use Permit QBS Quality-Based Selection QCBS Quality- and Cost-Based Selection REDD+ Reducing Emissions from Deforestation and Forest Degradation and fostering conservation, sustainable management of forests, and enhancement of forest carbon stocks REL Reference Emission Levels RIU REDD+ Implementation Unit R-PP REDD+ Readiness Preparation Proposal RTWG REDD+ Technical Working Group SESA Strategic Environmental and Social Assessment SFM Sustainable Forest Management SIIB Special Independent Investigating Body SIS Safeguards Information System SoA Statement of Account SOE Statement of Expenditure STCRSP Smallholder Tree Crop Rehabilitation Support Project TA Technical Assistance TSC Timber Sale contracts TSP Technical Service Provider UN United Nations USAID U.S. Agency for International Development WAAPP West Africa Agricultural productivity project Regional Vice President: Makhtar Diop Country Director: Henry G. R. Kerali Senior Global Practice Director: Paula Caballero Practice Manager: Magda Lovei Task Team Leaders: Paola Agostini/Neeta Hooda iv LIBERIA LIBERIA FOREST SECTOR PROJECT TABLE OF CONTENTS Page I. STRATEGIC CONTEXT .................................................................................................1 A. Country Context ............................................................................................................ 1 B. Sectoral and Institutional Context ................................................................................. 2 C. Higher Level Objectives to which the Project Contributes .......................................... 3 II. PROJECT DEVELOPMENT OBJECTIVES ................................................................7 A. PDO............................................................................................................................... 7 PDO Level Indicators ......................................................................................................... 7 Project Beneficiaries ........................................................................................................... 8 III. PROJECT DESCRIPTION ..............................................................................................8 A. Project Components .................................................................................................... 10 B. Project Financing ........................................................................................................ 13 Project Cost and Financing ............................................................................................... 13 C. Lessons Learned and Reflected in the Project Design ................................................ 14 IV. IMPLEMENTATION .....................................................................................................16 A. Institutional and Implementation Arrangements ........................................................ 16 B. Results Monitoring and Evaluation ............................................................................ 17 C. Sustainability............................................................................................................... 18 V. KEY RISKS ......................................................................................................................20 A. Overall Risk Rating and Explanation of Key Risks.................................................... 20 VI. APPRAISAL SUMMARY ..............................................................................................24 A. Economic and Financial Analysis ............................................................................... 24 B. Technical ..................................................................................................................... 25 C. Financial Management ................................................................................................ 26 D. Procurement ................................................................................................................ 27 v E. Social (including Safeguards) ..................................................................................... 28 F. Environment (including Safeguards) .......................................................................... 30 G. World Bank Grievance Redress .................................................................................. 34 Annex 1: Results Framework and Monitoring .........................................................................35 Annex 2: Detailed Project Description .......................................................................................44 Annex 3: Implementation Arrangements ..................................................................................68 Annex 4: Implementation Support Plan ....................................................................................83 Annex 5: Economic Analysis .......................................................................................................87 Annex 6: Drivers of Liberia’s Deforestation and Forest Degradation....................................93 Annex 7: Geographical Analysis of Project Intervention Areas/Targeted Landscapes ........96 Annex 8: Draft Road Map for the Measurement, Reporting, and Verification ..................101 Annex 9: Forestry Related Projects in Liberia (World Bank Group and Other Partners)106 Annex 10: Map