The World Bank Phase 2 for DGM Program and Global Learning and Knowledge Exchange Project (P170861) REPORT NO.: RES57672 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF PHASE 2 FOR DGM PROGRAM AND GLOBAL LEARNING AND KNOWLEDGE EXCHANGE PROJECT APPROVED ON JULY 24, 2020 TO CONSERVATION INTERNATIONAL ENVIRONMENT, NATURAL RESOURCES & THE BLUE ECONOMY OTHER Regional Vice President: Juergen Voegele Global Director: Valerie Hickey Practice Manager/Manager: Christian Albert Peter Task Team Leader(s): Dinara Besekei Sutton The World Bank Phase 2 for DGM Program and Global Learning and Knowledge Exchange Project (P170861) ABBREVIATIONS AND ACRONYMS AU Administrative Unit CI Conservation International CIF Climate Investment Funds COP Conference of the Parties CPF Country Partnership Framework DGM Dedicated Grant Mechanism EMRIP Expert Mechanism on the Rights of Indigenous Peoples FAP Forest Action Plan FCPF Forest Carbon Partnership Facility FIP Forest Investment Program GCF Green Climate Fund GCT Global Communications Team GEA Global Executing Agency GEF Global Environment Facility GRM Grievance Redress Mechanism GRS Grievance Redress Service GSC Global Steering Committee ITAD Monitoring & Evaluation for International Development Consulting IFAD International Fund for Agricultural Development IIPFCC International Indigenous Peoples Forum on Climate Change IPLC Indigenous Peoples and Local Communities LMP Labor-Management Procedures The World Bank Phase 2 for DGM Program and Global Learning and Knowledge Exchange Project (P170861) M&E Monitoring and Evaluation MDB Multilateral Development Bank NEA National Executing Agency (of the DGM Country Projects) NTFP Non-timber forest product PDO Project Development Objective PEN Poverty and Environment Network REDD Reducing Emissions from Deforestation and Forest Degradation SC Sub-Committee SCD Systematic Country Diagnostic SDG Sustainable Development Goal UN United Nations UNDRIP United Nations Declaration on the Rights of Indigenous Peoples UNFCCC United Nations Framework Convention on Climate Change UNPFII United Nations Permanent Forum on Indigenous Issues UN-REDD United Nations REDD Programme UNSR United Nations Special Rapporteur on the Rights of Indigenous Peoples WBG World Bank Group The World Bank Phase 2 for DGM Program and Global Learning and Knowledge Exchange Project (P170861) BASIC DATA Product Information Project ID Financing Instrument P170861 Investment Project Financing Environmental and Social Risk Classification (ESRC) Low Approval Date Current Closing Date 24-Jul-2020 31-Dec-2023 Organizations Borrower Responsible Agency Conservation International Conservation International Financing (in USD Million) FIN_SUMM_PUB_TBL SUMMARY Total Project Cost 0 Total Financing 0 Financing Gap 0 DETAILS -NewFin3 Project Development Objective (PDO) Original PDO The Project Development Objective is to strengthen networks and partnerships for DGM Indigenous Peoples and Local Communities (IPLCs) at regional and global levels. OPS_TABLE_PDO_CURRENTPDO The World Bank Phase 2 for DGM Program and Global Learning and Knowledge Exchange Project (P170861) Summary Status of Financing (US$, Millions) Net TF Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed TF-B3573 24-Jul-2020 14-Aug-2020 11-Nov-2020 31-Dec-2023 2.30 2.30 0 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING 1. The purpose of this restructuring is to seek approval for: (i) additional financing in the amount of US$ 2 million granted by Climate Investment Funds (CIF) to the Phase 2 of the Dedicated Grant Mechanism (DGM) Global Learning and Knowledge Exchange Project (“the Project”) (P170861), (ii) extension of the Project’s closing date from December 31, 2023, to May 30, 2025; and (iii) updates to the Project’s Results Framework. This is a second restructuring of the Project. A. Background. 2. The first DGM Global Learning and Knowledge Exchange Project was implemented between June 15, 2015, and December 31, 2020. The current Project was approved in June 2020. It was restructured in May 2023 to have its original closing date extended from June 30, 2023, to December 31, 2023. The PDO is to strengthen networks and partnerships for DGM IPLCs at regional and global levels. The project comprises four components: Component 1: Global and Regional Learning - aims to organize and facilitate knowledge exchange, learning, and capacity building on forests and climate change issues at regional and global levels; Component 2: Governance and Partnerships - helps to enable the Global Steering Committee (GSC) to fulfill its role within the DGM in addition to strengthening IPLC networks and organizations in global forums; Component 3: Monitoring, Reporting, Grievance and Redress Mechanism (GRM), and Communications - focuses on DGM Global communications, robust monitoring and reporting (M&R), and an efficient project-related GRM; and Component 4: Management of the DGM Global Executing Agency. 3. A decision to consider additional financing was taken by the CIF Forest Investment Program Technical Committee (FIP TC) in January 2023, motivated by the success of the DGM Global in the coordination of GSC activities, communication, and knowledge exchange, and the need to support remaining active DGM country projects (Brazil, the Republic of Congo, Guatemala, and Nepal1). Subsequently, a concept note detailing the justification for the additional funding was presented to the FIP TC in March 2023, and approval for the funding was granted in August 2023. 1 DGM Mexico and Cote d’Ivoire are scheduled to be closed in FY2024. The World Bank Phase 2 for DGM Program and Global Learning and Knowledge Exchange Project (P170861) B. Overall Project Status and Progress to Date 4. As November 11, 2023, following the implementation support mission, the progress towards the achievement of the PDO and implementation progress were rated Satisfactory. The Project resumed implementation of key activities in- person (e.g., global and regional exchanges) and others virtually (Global Fellowship). 5. The Project was originally scheduled to be implemented over a three-year period but experienced delays due to COVID-19, especially for interventions that required in-person participation. Despite these challenges, the Project was able to achieve most of its indicators. In May 2023 the Project closing date was extended until December 2023, to fully utilize the savings generated during the pandemic and take advantage of the opportunity to increase relevant project targets. As of November 11, 2023, the Project funds are fully disbursed by the Global Executing Agency (GEA) (US$ 2.3 million). 6. During the recent implementation support mission, the following progress has been reported: a. Knowledge Exchange In Nepal, from March 21 to 27, 2023, the Project coordinated the Global DGM IPLC Exchange, the National Executing Agency (NEA) Exchange, and a Global Women's Meeting. These events were designed to facilitate the exchange of insights with the new DGM projects in Nepal and Guatemala. The key areas of focus included monitoring and evaluation, procurement, and support for entrepreneurship within Indigenous Peoples and Local Communities (IPLC). The Global DGM Women's meeting sparked discussions aimed at enhancing gender engagement. b. Sustainability Working Group. On March 20, 2023, a Sustainability Working Group meeting was held in Nepal to coordinate efforts to promote sustainability of the DGM program among GSC members, WB, and CIF. Subsequently, in April 2023, the co-chairs of the Global Steering Committee (GSC) from Nepal and Mexico engaged in high-level discussions with representatives from the CIF, the Global Environment Facility (GEF), and the World Bank in Washington DC. The objective of these discussions was to raise awareness about the efficacy of the direct financing mechanism and its achievements. c. Annual GSC meeting. The annual GSC meeting took place in Brasilia, Brazil, from June 27 to 29, 2023, concurrently with the CIF's Trust Fund Committee Meetings. During the GSC meeting, co-chairs were elected, and a decision was made to establish a gender subcommittee to ensure greater gender participation in the implementation of the DGM. To advance sustainability agenda, the GSC meeting requested the CIF to provide an update on the program's funding status in support of knowledge exchange, communication, and collaboration among the remaining DGM country projects. 7. Given the success of the project so far and following discussions with the CIF regarding sustainability of the DGM program, on August 8, 2023, the FIP TC endorsed the additional financing concept document for DGM for further development. C. Rationale for Restructuring 8. The additional financing will allow the Project to continue its mandate in: (i) facilitating knowledge exchange by supporting the successful implementation of the remaining DGM projects in Nepal, Guatemala, the Republic of The World Bank Phase 2 for DGM Program and Global Learning and Knowledge Exchange Project (P170861) Congo, and Brazil, and sharing lessons and best practices developed and learned over the years of project implementation among IPLCs from various project countries and with new DGM communities of the CIF’s Nature, People, Climate Program; (ii) engaging in enhanced gender activities by providing necessary time to collaborate with newly elected gender committee and promote a stronger emphasis on the inclusion of women and youth in decision- making processes and empowerment within project interventions; (iii) monitoring the implementation of ongoing national DGM projects. That will contribute to the long-term sustainability of the DGM and allow the Project to serve as a bridge between the FIP DGM and NPC DGM. This, in turn, will play a crucial role in informing the design of the NPC DGM and its operational guidelines. 9. The requested 17-month extension of the Project until May 30, 2025, is essential to enable the GEA to disburse and implement the additional financing. The results framework will be updated to capture the results from these additional resources. 10. Financial Management. The Project’s financial management and disbursement arrangements will remain the same. There are no overdue reports; all semiannual unaudited financial reports and annual audited financial statements were submitted to the World Bank and found acceptable. 11. Procurement. The Project Procurement arrangement will remain the same as in the parent project. Procurement performance under the project have been found satisfactory. The PPSD and PP have been updated for the additional financing. Procurements under the project are composed of small value non consultant and consultant service and are not complex. The Project procurement will be executed in accordance with the World Bank’s Procurement Regulations for Investment Project Financing (IPF) Borrowers (5th edition, September 2023) (“Procurement Regulations”), and the approved Procurement Plan. 12. Environmental and Social. Given that the scope of activities and stakeholders involved remain as in the parent project, the environmental and social risk classification for the additional financing (AF) remains low and the environmental and social instruments (Stakeholder Engagement Plan, Labor Management Procedures and Environmental and Social Commitment Plan) remain valid for this AF. The SEP and the ESCP have been updated and re-disclosed to reflect past stakeholder engagement activities and environmental and social related commitments by CI under the AF. Furthermore, any additional environmental and social related aspects of the Project can be addressed through regulations and policies followed by the implementing agency, CI, in its headquarters in Alexandria, Virginia. 13. During the past three years of implementation of the Project, Conservation International (CI) the Global Executing Agency (GEA), successfully managed the environmental and social risks identified in the Project (considered as low) by implementing the social and environmental instruments produced by CI under the ESF. Furthermore, Project activities are inclusive in nature as they create forum and platforms for indigenous peoples, women, and representatives of local communities to participate and have voice in climate decisions. The Additional Financing will deepen such goals by creating a women’s committee and promoting youth participation in project activities such as knowledge exchanges and in international climate decision making platforms. The 2023 GSC Annual Meeting served as an example of the mentioned decision-making platforms while also serving as a platform for deciding and consulting the activities part of this Additional Financing. The World Bank Phase 2 for DGM Program and Global Learning and Knowledge Exchange Project (P170861) II. DESCRIPTION OF PROPOSED CHANGES 14. While the PDO and Theory of Change remain unchanged, several new activities will be introduced in components 1 and 2, aligning with the rationale for the additional funding. As part of Component 1: Global and Regional Learning (US$419,605), in addition to the regular activities, extra resources will be allocated to support gender subcommittee initiatives and the design and implementation of women's leadership training. This will lead to increased participation of women in knowledge exchange, learning, and a greater role in decision-making. In Component 2, Governance and Partnerships (US$716,641), new activities will be incorporated to bolster the efforts of the GSC Sustainability Working Group, with a particular focus on enhancing donor engagement, promoting DGM's success, sharing lessons learned, and developing the sustainability strategy (new Sub-Component 2.3. Developing a Sustainability Strategy for the DGM Project (US$326,693): organizing at least two regional meetings and coordinating with DGM Country projects to maintain a robust system of policy engagement and knowledge exchange with other national and regional initiatives after the FIP DGM Global program concludes its program coordination mission. The GEA will compile lessons learned from the DGM mechanism to contribute to the process of building the framework for the NPC DGM Program). Components 3 and 4 will maintain their support for project implementation, with additional funding allocated in the amounts of US$678,779 and US$184,975, respectively. 15. The proposed modifications are reflected in the Project Results Framework. These include increasing targets for existing indicators, removing the indicator "Percent Satisfaction of GSC Members" due to its relevance only to active DGM country projects, which currently comprise six members as of November 20232. Additionally, a supplementary indicator associated with the new Subcomponent 2.3 is incorporated into the existing indicator "Number of DGM reports produced," specifying analytics and recommendations contributing to DGM sustainability. Furthermore, a new indicator, "Percentage of DGM Global and regional gender-focused events," is introduced to measure the progress of gender focused activities in Component 1. 16. Project Costs by Component Additional Financing, Project Components Original costs, US$ US$ 1. Global and Regional Learning 609,709 419,605 Sub-Component 1.1. DGM Learning Exchanges 430,537 396,605 Sub-Component 1.2. DGM Fellowship 179,172 23,000 2. Governance and Partnerships 800,701 716,641 Sub-Component 2.1. Secretariat of the Global Steering Committee 512,310 282,631 2Remaining DGM country projects include Brazil, Cote d’Ivoire, Guatemala, Mexico, Republic of Congo, Nepal. DGM Mexico and DGM Cote d’Ivoire will be closed in FY 2024 and early in FY2025, resulting in reduction of the GSC members to four by July 2024. The World Bank Phase 2 for DGM Program and Global Learning and Knowledge Exchange Project (P170861) Sub-Component 2.2. Managing IPLC partnerships and networks 288,391 107,317 Sub-Component 2.3. Developing a Sustainability Strategy for the DGM 326,693 Project 3: Monitoring, Reporting, GRM, and Communications 643,007 678,779 Sub-Component 3.1. Monitoring and Reporting of the DGM Global 397,830 560,720 Project Sub-Component 3.2. Grievance and Redress Mechanism of the DGM 17,621 Global Project Sub-Component 3.3. Communication and knowledge management of the 227,557 118,059 DGM Global Project 4: Management of the DGM Global Executing Agency 246,582 184,975 Total 2,300,000 2,000,000 ES NOTE TABLE III. SUMMARY OF CHANGES Changed Not Changed Results Framework ✔ Components and Cost ✔ Loan Closing Date(s) ✔ Additional Financing Proposed ✔ The World Bank Phase 2 for DGM Program and Global Learning and Knowledge Exchange Project (P170861) Disbursement Estimates ✔ Implementation Schedule ✔ Implementing Agency ✔ Project's Development Objectives ✔ Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Disbursements Arrangements ✔ Change in Overall Risk Rating ✔ Legal Covenants ✔ Institutional Arrangements ✔ Financial Management ✔ Procurement ✔ Other Change(s) ✔ Economic and Financial Analysis ✔ Technical Analysis ✔ Social Analysis ✔ Environmental Analysis ✔ IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_RESULTS_TABLE RESULTS FRAMEWORK Project Development Objective Indicators PDO_IND_TABLE Joint activities and/or alliances under IPLC leadership at regional and/or global level that emerged through the global platform (number) Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 17.00 25.00 Revised Date 03-Feb-2020 01-Dec-2022 27-Jun-2025 GSC providing fiduciary and general oversight to the DGM program (Yes/No) Unit of Measure: Text The World Bank Phase 2 for DGM Program and Global Learning and Knowledge Exchange Project (P170861) Indicator Type: Custom Baseline Actual (Current) End Target Action Value - Yes Yes Revised Date 03-Feb-2020 01-Dec-2022 27-Jun-2025 Intermediate Indicators IO_IND_TABLE Number of person-hours of capacity building and/or knowledge exchange in global exchanges (number) Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 911.00 3000.00 Revised Date 03-Feb-2020 01-Dec-2022 27-Jun-2025 Percentage of satisfaction of exchange participants (percent) Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 0.00 85.00 Revised Date 03-Feb-2020 01-Dec-2022 27-Jun-2025 Percentage of exchange participants in learning and knowledge exchange activities belonging to non-DGM countries (percent); Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 10.00 20.00 Revised Date 03-Feb-2020 01-Dec-2022 27-Jun-2025 Percentage of women participants in Global and Regional Learning Exchanges (percent) Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 46.00 50.00 Revised Date 03-Feb-2020 01-Dec-2022 27-Jun-2025 The World Bank Phase 2 for DGM Program and Global Learning and Knowledge Exchange Project (P170861) Number of relevant international events for GSC members with other IPLC partners and networks (number) Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 15.00 25.00 Revised Date 03-Feb-2020 01-Dec-2022 27-Jun-2025 Percentage of GSC members that perceive DGM processes as transparent and inclusive (percent) Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 62.00 70.00 Revised Date 03-Feb-2020 01-Dec-2022 27-Jun-2025 Percent Satisfaction of GSC Members (level of commitment) (percent) Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 87.00 80.00 Marked for Deletion Date 03-Feb-2020 01-Dec-2022 30-Dec-2022 Percentage of grievances elevated to and addressed by GSC, related to the delivery of the DGM (percent) Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 100.00 100.00 Revised Date 03-Feb-2020 01-Dec-2022 27-Jun-2025 Average monthly unique visitors to the DGM Global website (past 3 months) Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 614.00 500.00 Revised Date 03-Feb-2020 01-Dec-2022 27-Jun-2025 Publications and communication materials/tools that advance the field of IPLC-led conservation (number) Unit of Measure: Number The World Bank Phase 2 for DGM Program and Global Learning and Knowledge Exchange Project (P170861) Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 22.00 35.00 Revised Date 03-Feb-2020 01-Dec-2022 27-Jun-2025 Number of DGM reports produced (number) Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 8.00 14.00 Revised Date 03-Feb-2020 01-Dec-2022 27-Jun-2025 Of which are analytics and recommendations contributing to sustainability of the DGM Unit of Measure: Number Indicator Type: Custom Supplement Baseline Actual (Current) End Target Action Value 0.00 0.00 2.00 New IPLC and DGM stakeholders engaged in DGM global and regional knowledge exchange (number); (knowledge exchange) Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 209.00 300.00 Revised Date 14-Jul-2020 01-Dec-2022 27-Jun-2025 DGM global fellow that achieved their learning objectives (percent) Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 100.00 85.00 Revised Date 14-Jul-2020 01-Dec-2022 27-Jun-2025 Capacity-building activities under DGM (number) (disaggregated by type) Unit of Measure: Number The World Bank Phase 2 for DGM Program and Global Learning and Knowledge Exchange Project (P170861) Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 10.00 24.00 Revised Date 14-Jul-2020 01-Dec-2022 27-Jun-2025 Percentage of DGM Global and regional gender focused events (percent) Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 0.00 50.00 New Date 30-Jun-2020 04-Oct-2023 27-Jun-2025 OPS_DETAILEDCHANGES_COMPONENTS_TABLE COMPONENTS Current Current Proposed Proposed Cost Action Component Name Component Name Cost (US$M) (US$M) Global and Regional Learning 609709.00 Revised Global and Regional Learning 1029314.00 Governance and Partnerships 800701.00 Revised Governance and Partnerships 1517342.00 Monitoring, Reporting, GRM, and Monitoring, Reporting, GRM, 643007.00 Revised 1321786.00 Communications and Communications Management of the DGM Global Management of the DGM 246582.00 Revised 431558.00 Executing Agency Global Executing Agency 2,299,999.0 TOTAL 4,300,000.00 0 OPS_DETAILEDCHANGES_LOANCLOSING_TABLE LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline TF Status Closing Closing(s) Closing for Withdrawal Applications TF-B3573 Effective 30-Jun-2023 31-Dec-2023 30-May-2025 30-Sep-2025 OPS_DETAILEDCHANGES_ADDITIONAL_FINANCING_TABLE The World Bank Phase 2 for DGM Program and Global Learning and Knowledge Exchange Project (P170861) ADDITIONAL FINANCING Source Currency Amount USD Equivalent Strategic Climate Fund Grant(CSCF) USD 2,000,000.00 2,000,000.00 Existing Net Commitment USD Amount 2,300,000.00 Total 4,300,000.00 OPS_DETAILEDCHANGES_DISBURSEMENT_TABLE DISBURSEMENT ESTIMATES Change in Disbursement Estimates Yes Expected Disbursements (In US$) Fiscal Year Annual Cumulative 0000 0.00 0.00 2020 0.00 0.00 2021 0.00 0.00 2022 0.00 0.00 2023 0.00 0.00 2024 973,800.72 973,800.72 2025 1,024,009.00 1,997,809.72 2026 162,258.10 2,160,067.82