Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: PAD1520 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT PROJECT APPRAISAL DOCUMENT ON A PROPOSED LOAN Public Disclosure Authorized IN THE AMOUNT OF EURO 93.1 MILLION (US$100 MILLION EQUIVALENT) TO THE REPUBLIC OF TUNISIA FOR AN INTEGRATED LANDSCAPES MANAGEMENT IN LAGGING REGIONS PROJECT Public Disclosure Authorized February 21, 2017 Environment & Natural Resources MIDDLE EAST AND NORTH AFRICA This document is being made publicly available prior to Board consideration. This does not Public Disclosure Authorized imply a presumed outcome. This document may be updated following Board consideration and the updated document will be made publicly available in accordance with the Bank's policy on Access to Information. CURRENCY EQUIVALENTS (Exchange Rate Effective January 31, 2017) (1 USD = 0.93 EUR) Currency Unit = Euros (EUR) EUR = US$1.07 US$ = 0.93 FISCAL YEAR January 1 – December 31 ABBREVIATIONS AND ACRONYMS AC Annual Contracts ADEB Central Aid for Budget Decision (Système d’aide à la décision budgétaire) AFD French Development Agency (Agence Française de Développement) AfDB African Development Bank AMP Aromatic and Medical Plants AP Agricultural Products APIA Agency for the Promotion of Agricultural Investments (Agence de Promotion des Investissements Agricoles) APII Agency for the Promotion of Industry and Innovations (Agence de Promotion de l’Industrie et de l’Innovation) ARAP Abbreviated Resettlement Action Plan AWPB Annual Work Plans and Budgets BMO Budget management by objectives CBO Community-Based Organizations CBT Central Bank of Tunisia (Banque Centrale de Tunisie) CDD Community Driven Development CDL Local Development Councils CEPEX Exports Promotion Center (Centre de promotion des exportations) CFRMA Community Forestry and Rangeland Management Agreement CGF Supreme Audit Institution (Contrôle Général des Finances) CNI National Computing Center (Centre d’Informatique National) COPIL Steering Committee (Comité de pilotage) COSTAB Financial Analysis Software CPD Community Participation in Development CPF Country Partnership Framework CRDA Regional Agricultural Development Commission (Commissariat Régional de Développement Agricole) CRI Competitiveness Reinforcement Initiatives CSI Core Sector Indicator CSO Civil Society Organization CTA Agro-industry Technical Center (Centre technique de l’Agro-Alimentaire) DA Designated Account DAF Administrative and Financial Directorate DSE Socioeconomic Directorate (Direction Socio-économique) DGACTA General Directorate of Land Development and Conservation (Direction Générale de l’Aménagement et de la Conservation des Terres Agricoles) i DGAJF General Directorate for Legal Affairs and Land Use (Direction Générale des Affaires Juridiques et Foncières) DGF General Directorate of Forests (Direction Générale des Forêts) DGFIOP General Directorate of Funding Investments and Professional Organizations (Direction Générale du Financement, des Investissements et des Organismes Professionnels DGAB General Directorate of Organic Farming (Direction Générale de l’Agriculture Biologique) DGIA General Directorate of Agrofood Industry (Direction Générale des Industries Agroalimentaires) DGPA General Directorate of Agricultural Production (Direction Générale de la Production Agricole) DPO Development Policy Operation DRC Directorate of Regulations and Control (Direction de Réglementation et Contrôle) DRPS Department for Afforestation and Soil Protection (Division du Reboisement et la Protection des Sols) EA Executing Agency EDP3 Third Export Development Project EIRR Economic Internal Rate of Return ESMF Environmental and Social Management Framework ESMP Environmental and Social Management Plan ESS Enterprise Support Services EU European Union EX-ACT Ex-ante Carbon balance Tool FAO Food and Agriculture Organization of the United Nations FDES Environmental and Social Diagnostic Fact Sheet FIES Environmental and Social Information Fact Sheet FIP Forest Investment Program FM Financial Management FMO Financial Management Officer FPC Forest Products for Consumption GDA Agricultural Development Groups (Groupement de Dévelopment agricole) GDP Gross Domestic Product GEF Global Environment Facility GHG Greenhouse Gas GIS Geographic Information System GRM Grievance Redress Mechanism GRS Grievance Redress Service GTZ German Agency for Technical Cooperation ((Deutsche Gesellschaft fur Technische Zusammenarbeit), replaced by GIZ) Ha Hectare HDI Human Development Indicators IBRD International Bank for Reconstruction and Development IDRC International Development Research Center IFAD International Fund for Agricultural Development IFI International Financial Institution IFR Interim Financial Reports ILM Integrated Landscape Management ILDP Integrated Landscape Development Plans INAT Tunisian National Agronomic Institute (Institut National Agronomique de Tunisie) INRGREF National Research Institute on Rural Engineering, Water, and Forests (Institut National de Recherche en Génie Rural, Eaux, et Forêts) IR Intermediate Results IRR Internal Rate ff Return ISR Implementation Status and Results Report IUFR Interim Unaudited Financial Report ii JEFF Jobs, Entrepreneurship, Finance and Fiscal Sustainability JICA Japan International Cooperation Agency LDC Local Development Council (Conseil local de Développement) LU Landscape Units MARHP Ministry of Agriculture, Water Resources, and Fisheries MENA Middle East and North Africa MELA Ministry of Environment and Local Affairs MIDCI Ministry of Development, Investment, and International Cooperation (Ministère du Développement de l'Investissement et de la Coopération Internationale) MOP Project Operational Manual (Manuel Opérationnel du Projet MRV Measurement, Reporting, and Verification MSME Micro, Small, and Medium Enterprises MSPG Multisectoral Partner Group MTFF Medium-Term Fiscal Framework M&E Monitoring and Evaluation NPF New Procurement Framework NPV Net Present Value NRM Natural Resource Management ODESYPANO Authority for Forest-Pastoral Development of the Northwest (Office de Développement Sylvo-pastoral du Nord-Ouest) ODCO Authority for the Development of the Center-West (Office de Développement du Centre Ouest) ODNO Authority for the Development of the Northwest (Office de Développement du Nord Ouest) OEP Office for Livestock and Pastures (Office de l’Elévage et de Pâturages) O&M Operating and Maintenance ONH National Office of Oils (Office National d’Huile) ONMP National Boared for Public Procurement (Office national des Marchés publics) PA Productive Alliance PAD Project Appraisal Document PAP Project-Affected Person PDO Project Development Objective PBB Performance-Based Budgeting Reform PEFA Public Expenditure and Financial Accountability PF Process Framework PFM Public Finance Management PGF Productivity and Growth Fund PGIF Forest Integrated Management Project (Projet de Gestion Intégrée des Forêts) PGRN2 Tunisia Second Natural Resources Management Project PO Producer Organizations POM Project Operational Manual PPSD Project Procurement Strategy for Development RC Regional Council RFMO Regional Financial Management Officer RPF Resettlement Policy Framework RPIT Regional Project Implementing Team SBD Standard Bidding Documents SFRM Sustainable Forest and Rangeland Management SIADE Computerized System to Support External Debt (Système informatisé d’aide à la dette extérieure) SLM Sustainable Land Management SMSA Mutual Society for Agricultural Services (Société Mutuelle de Services Agricoles) SOE Statement of Expenditures SMVDA Enhancement and Agricultural Development (Société Mise en valeur & Dévelop agricole) SP Service Providers iii SSEP Monitoring System for Evaluating the Execution of Public Projects (Systeme de suivi d’evaluation de l’execution des projets publics) STAR System for Transparent Allocation of Resources (at the GEF) STEP Systematic Tracking of Exchanges In Procurement SVA Shared Value Alliance TD Tunisian Dinars TOR Terms Of Reference TSA Treasury Single Account System UDLGP Urban Development and Local Governance Program for Results UGO Project Management Unit (Unité de Gestion par Objectifs) UNDP United Nations Development Program VC Value Chain Regional Vice President: Hafez Ghanem Country Director: Marie Francoise Marie-Nelly Senior Global Practice Director: Karin Erika Kemper Practice Manager: Benoit Paul Blarel Co-Task Team Leaders: Taoufiq Bennouna, Jade Salhab, Daniel Gerber iv v TUNISIA Integrated Landscapes Management in Lagging Regions TABLE OF CONTENTS Page I. STRATEGIC CONTEXT .................................................................................................1 A. Country Context ............................................................................................................ 1 B. Sectoral and Institutional Context ................................................................................. 3 C. Higher Level Objectives to which the Project Contributes ........................................ 10 II. PROJECT DEVELOPMENT OBJECTIVES ..............................................................12 A. Project Development Objective (PDO) ...................................................................... 12 Project Beneficiaries ......................................................................................................... 12 PDO Level Results Indicators ........................................................................................... 13 III. PROJECT DESCRIPTION ............................................................................................13