The World Bank Implementation Status & Results Report North Central Region Emission Reductions Program (P162605) North Central Region Emission Reductions Program (P162605) EAST ASIA AND PACIFIC | Viet Nam | Environment, Natural Resources & the Blue Economy Global Practice | Recipient Executed Activities | Investment Project Financing | FY 2021 | Seq No: 5 | ARCHIVED on 27-Nov-2023 | ISR58401 | Implementing Agencies: Ministry of Agriculture and Rural Development, Socialist Republic of Vietnam Key Dates Key Project Dates Bank Approval Date: 12-Oct-2020 Effectiveness Date: 13-Mar-2023 Planned Mid Term Review Date: 20-May-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 Development Objective of the Project is to make payments to the Program Entity for measured, reported and verified Emissions Reductions (ER) from reduced deforestation, forest degradation and enhancement of forest carbon stocks (REDD+) in the North Central Region of Vietnam and to distribute ER payments according to an agreed benefit sharing plan. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions The program has already generated 16.2 million verified ERs for the first reporting period (2018–19), which is 5.9 million more than the 10.3 million contract volume for all three reporting periods in the Emission Reduction Payment Agreement (ERPA). Of the $51.5 million contract amount, $41.2 million was transferred to the Program Entity (the Ministry of Agriculture and Rural Development) on August 8, 2023 and payment of the remaining $10.3 million is in process. The ERPA Trustee (World Bank) has issued a call option notice to purchase 1 million of the additional ERs generated above the contract amount and could exercise its option to purchase up to 4 million more of the additional ERs during the subsequent two reporting periods. Ninety-five percent of all ERs purchased by the Trustee under the ERPAs will be re-transferred to Viet Nam, which may then count them against achievement of its Nationally Determined Contribution (NDC) targets under the Paris Agreement. The first report on distribution of the ER payments in accordance with the agreed benefit-sharing plan (BSP) is due in February 2024. 11/27/2023 Page 1 of 4 The World Bank Implementation Status & Results Report North Central Region Emission Reductions Program (P162605) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- Moderate Moderate Macroeconomic -- Moderate Moderate Sector Strategies and Policies -- Moderate Moderate Technical Design of Project or Program -- Moderate Moderate Institutional Capacity for Implementation and -- Moderate Moderate Sustainability Fiduciary -- Substantial Moderate Environment and Social -- High High Stakeholders -- Substantial Substantial Other -- Substantial Substantial Overall -- Substantial Substantial Results PDO Indicators by Objectives / Outcomes To achieve payments for measured, reported and verified Emission Reductions in NCR Program IN01357945 ►Volume of CO2 Emission Reductions measured and reported by the Program Entity, verified by a Third Party, and transferred to the FCPF Carbon Fund (tCO2e) (Metric ton, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 10,300,000.00 Date 01-Feb-2018 25-Apr-2023 10-Nov-2023 31-Dec-2025 The verified volume of ERs was 16.2 million tCO2e for the first reporting period (2018-2019), exceeding the contract volume (10.3 million ERs), plus 5.9 million surplus ERs were generated. While the ER units have been issued in the World Bank transaction registry (Carbon Assets Tracking System – CATS), the Comments: Current Actual is 0 as the transfer of ERs was still being processed at the time of this ISR. IN01357946 ►Payment by the FCPF Carbon Fund for CO2 Emission Reductions generated by the Program (US$) (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 41,200,000.00 51,500,000.00 Date 01-Feb-2018 25-Apr-2023 10-Nov-2023 31-Dec-2025 Payment for the full contract value ($51.5 million) will be made for the first reporting period. Eighty percent Comments: of the payment ($41.2 million) has been transferred to the Program Entity, with the remining 20 percent 11/27/2023 Page 2 of 4 The World Bank Implementation Status & Results Report North Central Region Emission Reductions Program (P162605) ($10.3 million) currently being processed. Because the Bank has already issued a call option notice for an additional 1 million ERs and could exercise its option right for another 4 million ERs in the future, the project is expected to exceed the original targets for both ER transfer and payment amount. IN01357947 ►ER payments distributed in accordance with agreed Benefit Sharing Plan (Y/N) (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 01-Feb-2018 25-Apr-2023 10-Nov-2023 31-Dec-2025 Not yet applicable Comments: Intermediate Results Indicators by Components Given the nature of the Project, there are no intermediate indicators IN01357948 ►NA (Metric tons/year, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 0.00 Date 01-Feb-2018 25-Apr-2023 10-Nov-2023 31-Dec-2025 Performance-Based Conditions Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P162605 TF-B2966 Effective USD 48.93 48.93 0.00 38.99 9.93 80% P162605 TF-B2967 Effective USD 2.58 2.58 0.00 2.21 0.37 86% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P162605 TF-B2966 Effective 12-Oct-2020 22-Oct-2020 13-Mar-2023 31-Dec-2025 31-Dec-2025 P162605 TF-B2967 Effective 12-Oct-2020 22-Oct-2020 13-Mar-2023 31-Dec-2025 31-Dec-2025 Cumulative Disbursements 11/27/2023 Page 3 of 4 The World Bank Implementation Status & Results Report North Central Region Emission Reductions Program (P162605) Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 11/27/2023 Page 4 of 4