INTEGRATED SAFEGUARDS DATA SHEET
CONCEPT STAGE
Report No.: AC3806
Date ISDS Prepared/Updated: 08/01/2008
I. BASIC INFORMATION
A. Basic Project Data
Country: Lao People's Democratic Republic / Project ID: P108505Project Name: SUSTAINABLE FORESTRY FOR RURAL DEVELOPMENT II
Task Team Leader: Ulrich K. H. M. Schmitt
Estimated Appraisal Date: September 4, 2008 / Estimated Board Date: December 31, 2008
Managing Unit: EASRE / Lending Instrument: Specific Investment Loan
Sector: Forestry (100%)
Theme: Other public sector governance (P);Biodiversity (S);Land administration and management (S)
IBRD Amount (US$m.): 0.00
IDA Amount (US$m.): 10.00
GEF Amount (US$m.): 0.00
PCF Amount (US$m.): 0.00
Other financing amounts by source:
BORROWER/RECIPIENT 0.00
FINLAND: Ministry for Foreign Affairs 5.00
JAPAN: Gov. of (excl. Ministry of Finance - PHRD Grants) 0.50
5.50
B. Project Objectives [from section 2 of PCN]
The development objective of SUFORD is to help achieve the sustainable management of natural production forests to alleviate rural poverty by implementing key forest policy reform actions set forth in the Government’s Letter of Forest Management Policy. Specific objectives of the project are to: (a) improve the policy, legal and incentive framework enabling the expansion of Participatory Sustainable Forest Management (PSFM) throughout the country; (b) bring the country’s priority natural production forests under PSFM; and (c) improve villagers’ well-being and livelihoods through benefits from sustainable forestry, community development and development of viable livelihood systems.
C. Project Description [from section 3 of PCN]
SUFORD currently operates in 8 Production Forest Areas (PFAs) with a total area of about 650,000 hectares in the four provinces of Khammouane, Savannkhet, Saravane and Champasak, covering approximately one fourth of the country’s estimatednatural productive forests (outside of protected areas). An area of 45,000 hectares of production forest has been FSC certified and independent audits have reconfirmed the sustainability of demonstrated forest management practices. Village development activities are being implemented in more than 400 project villages using project grants and revenues from sustainably harvested timber.
SUFORD is designed along the following four components:
(a) Support Services of Sustainable Forest Management: This component includes support for sector policy reform, development of regulations and bylaws, designation and establishment of the national PFA system, development of technical forest management guidelines and community management procedures, and capacity building.
(b) Sustainable Forest Management and Village Development: This component includes the implementation of PSFM practices in pilot PFAs through operational plans, training to forest management units and villagers in management planning, land-use zoning for production, conservation, protection and implementation of monitoring and evaluation. In addition, this component includes the establishment of Village Development Committees and Village Forestry Committees and the implementation of village development activities.
(c) Forest Sector Monitoring and Control and Capacity: This component includes capacity building for the forest administration at all levels to collect and process current and reliable data on key developments and trends in the forest sector, and support for improved forest cover monitoring and forest law enforcement.
(d) Project Management: This component includes support to the Project Coordination Office and provincial project coordination units, project monitoring and evaluation, and capacity building in general project management.
Overall design of the project, including PDO and components, is expected to remain unchanged under Additional Financing. The proposed three-year extension of SUFORD would continue support the implementation of PSFM in existing SUFORD areas to tackle a number of technical and managerial questions to ensure sustainability of forest management practices. It addition, a geographical expansion would cover the introduction of PSFM in a number of additional priority PFAs which are now being identified in Xayaboury, Vientiane, Bolikhamxay, Sekong, and Attapeu provinces. These PFAs include approximately 400 villages with an estimated population of 120,000 villagers, most of whom would benefit either directly or indirectly from the expanded project. With the expansion would come a stronger focus on capacity building at national and provincial levels to advance the institution of PSFM throughout the country. The four existing project provinces would play a key role in the capacity building program and serve as demonstration areas of the program. Expected results would include:
(a) A refined PSFM system and improved capability of national agencies to support the application of PSFM practices;
(b) Expansion of the implementation of PSFM methodologies in PFAs throughout the country;
(c) Increased contribution of forestry to poverty reduction, village development, and the local and national economies through forest-based livelihood and enterprises; and
(d) Improved forest sector law enforcement, governance, and trade to help maintain the area of natural forests, protect their productivity, biodiversity, and other high conservation values.
Challenges, which would continue to be the focus of World Bank supervision under an expanded SUFORD, would revolve around (a) further strengthening community involvement in various dimensions of forest management and governance; (b) strengthening incentives for PSFM through more participatory and transparent methods of timber sales, royalty assessments and benefit-sharing and (c) addressing a number of silvicultural aspects with regard to forest stand management, timber species distribution; and re-growth patterns in degraded and/or under-stocked areas.
D. Project location (if known)
SUFORD operates in 8 Production Forest Areas with a total area of about 650,000 hectares in the four provinces of Khammouane, Savannkhet, Saravane and Champasak. The proposed geographical expansion of SUFORD under Additional Financing would included up to 10 new Production Forest Areas in Xayaboury, Vientiane, Bolikhamxay, Sekong, and Attapeu provinces.
E. Borrower’s Institutional Capacity for Safeguard Policies [from PCN]
SUFORD additional financing will be implemented by the National Agriculture and Forestry Service (NAFES) and the Department of Forestry (DOF) as lead agencies. Both agencies are responsible for the implementation of the ongoing implementation of SUFORD and both have some experience in implementing safeguard policies of the World Bank. Nevertheless, it will be necessary to complement the currently modest implementation capacities at central and provincial levels with experienced environmental and social safeguards consultant. This has been the practice in the ongoing SUFORD implementation.
F. Environmental and Social Safeguards Specialists
Mr John H. Dick (EASRE)
Mr Chaogang Wang (EASCS)
II. SAFEGUARD POLICIES THAT MIGHT APPLY
Safeguard Policies Triggered / Yes / No / TBD /Environmental Assessment (OP/BP 4.01) / X
SUFORD was originally designated as a Category A project. Although SUFORD additional financing will not have ‘significant adverse environmental impacts that are sensitive, diverse or unprecedented’, Category A for the overall project, including additional financing, will be maintained because of the project’s focus onsustainable management interventions in natural tropical forests. The scale-up of the project and expansion into new provinces and areas requires an update of the original Environmental and Social Impact Assessment (ESIA) to assess and document the environmental and social issues in the proposed new areas. Environmental aspects under the additional financing part relate to appropriate area and site selection for natural forest management interventions in new project provinces and will be addressed through a Technical Feasibility and Slope Analysis of proposed new production forest areas. From a social perspective, ethnic minority groups comprise the majority of the population in the new project areas and a full social impact assessment, including consultations with project-affected people, will be carried out by an independent expert not affiliated with the project. An updated ESIA, integrating the environmental and social aspects, is expected to be available by end of August 2008 for Bank review and public disclosure prior to appraisal of Additional Financing.
Natural Habitats (OP/BP 4.04) / X
SUFORD aims to introduce sustainable management of natural forests for productive purposes and improve control of forest resources through village-based forestry and incentives for stronger regulatory mechanism that involve communities. The project will not involve any conversion or degradation of critical natural habitats but instead promote natural habitat conservation, improved land use and maintenance of ecological functions in line with OP4.04. As part of the project’s management planning process, critical natural habitats (termed 'High Conservation Value Forests' under the project) will be identified in each project site and appropriate management and protection prescriptions developed.
Forests (OP/BP 4.36) / X
SUFORD aims at improving the management of natural forests through a community-forestry approach based on participatory sustainable forest management. This will also involve harvesting operations based on scientifically developed forest management plans, participatory planning, and community management. Compliance with internationally recognized practices for sustainable forest management has already been demonstrated in existing project areas through the achievement and maintenance of independent certification of community forests by the Forest Stewardship Council (FSC). Independent and internationally recognized certification will be pursued in the existing and new expanded project areas.
Pest Management (OP 4.09) / X
Physical Cultural Resources (OP/BP 4.11) / X
Indigenous Peoples (OP/BP 4.10) / X
The overwhelming majority of project beneficiaries in the areas targeted for SUFORD additional financing are ethnic groups (>90%). Hence, a separate IPP is not required according to OP. 4.10 under additional financing. The ESIA process will include consultations with project affected ethnic minority groups and, based on the ESIA, the project will ensure that specific attention is given to IP aspects in overall project design. Specifically, during preparation the existing SUFORD Ethnic Group Development Plan will be revised into a Community Consultation and Participation Framework. This framework will include the basic procedures and detailed steps of community participation and consultation and be applied during project activity implementation. Social constrains, ethnic rules and indigenous knowledge identified during ESIA will be considered in the preparation of this Framework.
Involuntary Resettlement (OP/BP 4.12) / X
SUFORD additional financing will not require any involuntary resettlement in the new project areas. However, some adverse impacts could result from land or asset acquisition and/or restrictions to access to natural resources. Given the implementation experiences in existing SUFORD project areas, these impacts are expected to be very marginal or not to materialize.
Land acquisition: Under the project’s Village Development sub-component, the project may support some upgrading of existing roads and construction of small-scale village infrastructure as part of the project’s community development approach where a limited amount of land acquisition may be required.
Access restrictions to natural resources. The project will be supporting participatory sustainable management of natural production forests in the new provinces. Forest management planning will take full account of on existing customary forestry use rights. However, management plans might result in some involuntary restriction of natural resource access, which could impact upon peoples’ livelihoods. Although these restrictions would occur outside of formal protected areas, these are nevertheless included here.
During the preparation of SUFORD additional financing, the existing Resettlement Policy Framework/Process Framework, which governs mitigation and compensation of affected people in the existing project areas, will be revised based on the results of the updated ESIA.
Safety of Dams (OP/BP 4.37) / X
Projects on International Waterways (OP/BP 7.50) / X
Projects in Disputed Areas (OP/BP 7.60) / X
Environmental Category: A - Full Assessment
III. SAFEGUARD PREPARATION PLAN
A. Target date for the Quality Enhancement Review (QER), at which time the PAD-stage ISDS would be prepared: N/A
B. For simple projects that will not require a QER, the target date for preparing the PAD-stage ISDS: 09/15/2008
C. Time frame for launching and completing the safeguard-related studies that may be needed. The specific studies and their timing[1] should be specified in the PAD-stage ISDS.
Environmental and Social Impact Assessment: submission and disclosure by August 30, 2008
Resettlement Policy /Process Framework: submission and disclosure by August 30, 2008
Community Consultation/Participation Framework: submission and disclosure by August 30, 2008
IV. APPROVALS
Signed and submitted by:Task Team Leader: / Mr Ulrich K. H. M. Schmitt / 07/09/2008
Approved by:
Regional Safeguards Coordinator: / Mr Panneer Selvam Lakshminarayanan / 07/10/2008
Comments: The ISDS was approved on July 10, 2008.
Sector Manager: / Mr Rahul Raturi / 07/17/2008
Comments: The ISDS was approved by SM on 7/17/08.
[1] Reminder: The Bank's Disclosure Policy requires that safeguard-related documents be disclosed before appraisal (i) at the InfoShop and (ii) in-country, at publicly accessible locations and in a form and language that are accessible to potentially affected persons.