The World Bank Implementation Status & Results Report Dominican Republic Emission Reductions Program (P161182) Dominican Republic Emission Reductions Program (P161182) LATIN AMERICA AND CARIBBEAN | Dominican Republic | Environment, Natural Resources & the Blue Economy Global Practice | Recipient Executed Activities | Investment Project Financing | FY 2021 | Seq No: 6 | ARCHIVED on 29-Mar-2024 | ISR59928 | Implementing Agencies: Dominican Republic, Ministry of Environment and Natural Resources Key Dates Key Project Dates Bank Approval Date: 18-Feb-2021 Effectiveness Date: 18-Apr-2022 Planned Mid Term Review Date: 08-Nov-2024 Actual Mid-Term Review Date: Original Closing Date: 31-Dec-2025 Revised Closing Date: 31-Dec-2025 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The proposed project development objective (PDO) is to make payments to the Program Entity (the Dominican Republic represented by the Ministry of Finance) for measured, reported and verified Emissions Reductions (ERs) from reduced deforestation, forest degradation and the enhancement of forest carbon stocks (REDD+) at the national level in the Dominican Republic and to distribute ER payments in accordance with an agreed benefit sharing plan. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Payment for Measured, Reported, and Verified Emission Reductions (ERs):(Cost $25.00 M) Distribution of ER payments according to the Benefit Sharing Plan (BSP) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions The independent validation and verification by a Third-Party of the Emission Reduction Monitoring Report (ERMR) for the first reporting period (March 26, 2021-December 31, 2021) of the Emission Reductions Program started on May 10, 2023. It has produced an interim report which generally confirms positive Emission Reduction (ER) outcomes. The report will be finalized once two remaining issues have been met i.e., (i) Specifying the percentage of ERs generated by the program that the government will be able to transfer to the Carbon Fund, and (ii) Including specific information required by the Carbon Fund Methodological Framework in the REDD+ Initiative Registry System. Based on experience, the payment process could take about two months once the final independent validation and verification report has been approved by the Bank. The first Emission Reductions Program payment could therefore be expected in Q3 of 2024, subject to pending institutional and technical requirements. 3/29/2024 Page 1 of 4 The World Bank Implementation Status & Results Report Dominican Republic Emission Reductions Program (P161182) The Ministry of Environment and Natural Resources (MARN) has now signed inter-institutional agreements with all the Executing Entities (EEs) except that with the Ministry of Agriculture and Livestock, for which the signing process is in progress. The national Registry of REDD+ initiatives is now operational. The Office for the Coordination of the REDD+ Program (OCR) has also reactivated the Benefit Sharing Plan (BSP) governance. In addition, a public call was launched on October 3, 2023 to offer the opportunity for candidates to receive program benefits and implement REDD+ initiatives. The signing of sub-agreements for the transfer of ER titles between EEs and beneficiaries will be the final step in the beneficiary approval process. Furthermore, technical issues that made the Safeguards Information System (SIS) inoperative, have been addressed by migrating it to Geo-Enabling initiative for Monitoring and Supervision (GEMS). Finally, the OCR has also initiated the preparation of the 2nd ER monitoring report covering the 2022-2023 period. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Moderate Low Low Macroeconomic Moderate Low Low Sector Strategies and Policies Moderate Moderate Moderate Technical Design of Project or Program Substantial Substantial Substantial Institutional Capacity for Implementation and Substantial Substantial Substantial Sustainability Fiduciary Moderate Low Low Environment and Social Substantial Substantial Substantial Stakeholders Moderate Low Low Other Substantial Substantial Substantial Overall Substantial Substantial Substantial Results PDO Indicators by Objectives / Outcomes Project Development Objective Indicators IN01402381 ►Volume of CO2 Emission Reductions measured and reported by the Program Entity, to be verified by a Third Party, and transferred to the FCPF Carbon Fund (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 5,000,000.00 Date 31-Dec-2020 12-Jul-2023 05-Mar-2024 31-Dec-2025 ERs reported from the MRV system, documented in the FCPF ER Monitoring Report. Targets are Comments: consistent with the ERPA term sheet. 3/29/2024 Page 2 of 4 The World Bank Implementation Status & Results Report Dominican Republic Emission Reductions Program (P161182) IN01402382 ►Payment by the FCPF Carbon Fund for CO2 Emission Reductions generated by the ER Program (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 25,000,000.00 Date 31-Dec-2020 12-Jul-2023 05-Mar-2024 31-Dec-2025 Based on assumption of US$5/tonne of CO2e. Payment expected to be made following verification, which Comments: could take up to one year. 50% payment of monitored ERs in 2022 expected to be made in 2023. IN01402383 ►Emission Reductions payments distributed in accordance with agreed Benefit Sharing Plan (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 31-Dec-2020 12-Jul-2023 05-Mar-2024 31-Dec-2025 Distribution of ERPA payments in accordance with the agreed BSP, as evidenced in Interim and ER Comments: Monitoring Reports. Intermediate Results Indicators by Components N/A IN01402384 ►N/A (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 0.00 Date 31-Dec-2020 23-Dec-2022 23-Dec-2022 31-Dec-2025 Comments: N/A Performance-Based Conditions Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P161182 TF-B4963 Effective USD 23.75 23.66 0.09 0.00 23.66 0%% P161182 TF-B4964 Effective USD 1.34 1.34 0.00 0.00 1.34 0%% 3/29/2024 Page 3 of 4 The World Bank Implementation Status & Results Report Dominican Republic Emission Reductions Program (P161182) Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P161182 TF-B4963 Effective 18-Feb-2021 01-Mar-2021 18-Apr-2022 31-Dec-2025 31-Dec-2025 P161182 TF-B4964 Effective 18-Feb-2021 01-Mar-2021 18-Apr-2022 31-Dec-2025 31-Dec-2025 Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 3/29/2024 Page 4 of 4