The World Bank Implementation Status & Results Report Atiala-Atsinanana Emission Reductions Program (P167725) Atiala-Atsinanana Emission Reductions Program (P167725) AFRICA EAST | Madagascar | Environment, Natural Resources & the Blue Economy Global Practice | Recipient Executed Activities | Investment Project Financing | FY 2021 | Seq No: 2 | ARCHIVED on 11-Nov-2021 | ISR49019 | Implementing Agencies: Ministry of Economy and Finance, National Office of Climate Change, Carbon and REDD+, Ministry of Environment and Sustainable Development Key Dates Key Project Dates Bank Approval Date: 04-Feb-2021 Effectiveness Date: -- Planned Mid Term Review Date: 28-Jul-2023 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 objective of the Program is to make payments to the Program Entity for measured, reported and verified Emission Reductions (ER payments) related to reduced deforestation, forest degradation and the enhancement of forest carbon stocks (REDD+) at the national level in Madagascar, and distribution of ER payments in accordance with 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 Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions To achieve the effectiveness of the PRE-AA program, three conditions must be met and action remains to be taken: i. Submission of the final version of the Benefit Sharing Plan (BSP) An advanced version of the BSP, which has been the subject of a lengthy consultation process with stakeholders, was approved by the Carbon Fund participants, provided that the minor comments made will be taken into account and that any major contradictions identified in the final document of the BSP in relation to the advanced version could call into question the terms of the purchase contract signed by the Carbon Fund. The BSP was one of the source documents during the signing of the contract. The final version of the BSP was pending on the adoption of the Forest Carbon Market Decree which formalized some of the benefit sharing arrangements of the BSP. The Decree was adopted by Government Council on October 20, 2021, and the GOM is currently working on the final version of the BSP and it will be submitted to the World Bank prior to the upcoming support mission which will take place November 34 to December 3. The final BSP will be submitted to the FCPF soon after the end of the mission upon consideration of comments made by the task team. ii. Preparing an operations manual for the operation of the designated special account (CAST by its acronym in French) Madagascar has chosen a Special Designated Account in the Treasury or CAST as a transitional mechanism for receiving and managing carbon revenues from the FCPC Carbon Fund. To this end, the submission of an operations manual for the operation of the CAST is one of the conditions for the implementation of the signing of the purchase agreement between Madagascar and the World Bank. The operations manual should describe all operating procedures, from the arrival in the CAST to the recipient entities, and must be validated by the Bank. This should describe the role and 11/11/2021 Page 1 of 5 The World Bank Implementation Status & Results Report Atiala-Atsinanana Emission Reductions Program (P167725) responsibility of each actor at each stage of fund management. It is also expected that this manual will present the disbursement procedures in accordance with the BSP, and this disbursement will result from the results of carbon performance through each monitoring period. This manual is currently being prepared by the GOM with the support of a consultant. A draft version has been shared with the task team which will be discussed in preparation of the upcoming support mission. It is expected that the validated operations manual will be submitted to the FCPF soon after the end of the mission upon consideration of comments made by the task team. iii. Demonstration of the Government's ability to transfer emission reduction securities, formalized by a legal text The GOM must demonstrate its ability to transfer emission reductions. This demonstration of capacity should be formalized by a legal text (Decree or others), to avoid any ambiguity in the current legal regime. The GOM has opted to use a decree regulating forest carbon markets to codify certain elements related to REDD+ and associated instruments and tools, including this ability to transfer title to emission reductions. The Decree regulating the ownership of title to ERs was adopted by Government Council on October 20, 2021, and the GOM is currently working with the support of a consultant on a legal note that justifies the ability to transfer title. This note will be submitted to the World Bank prior to the upcoming support mission which will take place November 34 to December 3. The final legal note will be submitted to the FCPF soon after the end of the mission upon consideration of comments made by the task team. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Substantial Moderate Moderate Macroeconomic Moderate Moderate Moderate 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 Substantial Substantial Substantial Environment and Social Moderate Moderate Moderate Stakeholders Substantial Moderate Moderate Other -- -- -- Overall Substantial Substantial Substantial Results PDO Indicators by Objectives / Outcomes Make payments for verified ER and distribute in accordance with the agreed Benefit Sharing Plan IN01062902 ►Volume of ER (in tons) that have been measured and reported by the Program Entity, verified by a Third Party, and transferred to the FCPF Carbon Fund (tCO2e) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 10,000,000.00 11/11/2021 Page 2 of 5 The World Bank Implementation Status & Results Report Atiala-Atsinanana Emission Reductions Program (P167725) Date 22-Mar-2020 01-May-2021 05-Nov-2021 31-Dec-2025 This will be measured by the MRV team in BNCCCR following the monitoring plan described in the ER- Comments: PD. IN01062903 ►Amount of payments by the FCPF Carbon Fund for CO2 Emission Reductions generated by the Program (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 50,000,000.00 Date 30-Nov-2020 01-May-2021 05-Nov-2021 31-Dec-2025 Comments: This will be estimated by BNCCCR based on the payments received by the REDD+ fund. IN01062904 ►Emission Reductions payments distributed in accordance with agreed-upon Benefit Sharing Plan (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 15-Dec-2020 01-May-2021 05-Nov-2021 31-Dec-2025 Comments: This will be estimated by BNCCCR through the monitoring of implementation of the BSP. Intermediate Results Indicators by Components Given the nature of the Project there are no Intermediate Indicators. IN01062905 ►N/A (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N/A N/A N/A N/A Date 06-May-2021 06-May-2021 06-May-2021 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 Not P167725 TF-B4710 USD 2.68 2.68 0.00 0.00 2.68 0%% Effective 11/11/2021 Page 3 of 5 The World Bank Implementation Status & Results Report Atiala-Atsinanana Emission Reductions Program (P167725) Not P167725 TF-B4711 USD 47.32 47.32 0.00 0.00 47.32 0%% Effective Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date Not P167725 TF-B4710 04-Feb-2021 -- -- 31-Dec-2025 31-Dec-2025 Effective Not P167725 TF-B4711 04-Feb-2021 -- -- 31-Dec-2025 31-Dec-2025 Effective Cumulative Disbursements PBC Disbursement Achievement Disbursed amount in Disbursement % PBC ID PBC Type Description Coc PBC Amount Status Coc for PBC Restructuring History There has been no restructuring to date. Related Project(s) 11/11/2021 Page 4 of 5 The World Bank Implementation Status & Results Report Atiala-Atsinanana Emission Reductions Program (P167725) There are no related projects. 11/11/2021 Page 5 of 5