Document of The World Bank FOR OFFICIAL USE ONLY Report No: PAD3210 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT PROJECT PAPER ON A PROPOSED ADDITIONAL FINANCING GRANT FROM THE GLOBAL ENVIRONMENT FACILITY TRUST FUND AND LEAST DEVELOPED COUNTRIES TRUST FUND IN THE AMOUNT OF US$5,936,073 TO THE GOVERNMENT OF SUDAN FOR THE SUSTAINABLE NATURAL RESOURCES MANAGEMENT PROJECT July 7, 2020 Environment and Natural Resources Global Practice Africa Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective July 1, 2020) Currency Unit = Sudanese Pound (SD) SD 55.29 = US$1 FISCAL YEAR January 1 – December 31 ABBREVIATIONS AND ACRONYMS AF Additional Financing BIRDP Butana Integrated Rural Development Project BRICKS Building Resilience through Innovation, Communication, and Knowledge Services CE Citizen Engagement CEN Country Engagement Note CQS Selection based on Consultants’ Qualification CRI Corporate Results Indicator DRSLP Drought Resilience and Sustainable Livelihoods Program in the Horn of Africa ESMF Environmental and Social Management Framework FAO Food and Agriculture Organization of the United Nations FBS Fixed Budget Selection FM Financial Management FNC Forest National Corporation GDP Gross Domestic Product GEF Global Environment Facility GGWI Great Green Wall Initiative GHG Greenhouse Gas GoS Government of Sudan GRM Grievance Redress Mechanism GRS Grievance Redress Service HCENR Higher Council for Environment and Natural Resources IA Implementing Agency IGAD Intergovernmental Authority on Development IFAD International Fund for Agricultural Development INGO International Nongovernmental Organization IPF Investment Project Financing ISR Implementation Status and Results Report LCS Least-cost Selection LDCF Least Developed Countries Fund M&E Monitoring and Evaluation MANR Ministry of Agriculture and Natural Resources MoF Ministry of Finance and Economic Planning NAP National Adaptation Plan NAPA National Adaptation Program of Action NGO Nongovernmental Organization NPF New Procurement Framework NRM Natural Resource Management PCU Project Coordination Unit PDO Project Development Objective PIM Project Implementation Manual PNSC Project National Steering Committee PPR Procurement Post Review PPSD Project Procurement Strategy for Development PS Procurement Specialist PV Photovoltaic QBS Quality-based Selection QCBS Quality and Cost-based Selection RF Results Framework REDD+ Reducing Emissions from Deforestation and Forest Degradation RPA Range and Pasture Administration SAWAP Sahel and West Africa Program in Support of the Great Green Wall Initiative SFM Sustainable Forest Management SLM Sustainable Land Management SLWM Sustainable Land and Water Management SPIU State Project Implementation Unit SSNRMP Sudan Sustainable Natural Resources Management Project SSS Single-source Selection STEP Systematic Tracking of Exchanges in Procurement TC Technical Committee UNEP United Nations Environment Programme VDC Village Development Committee WA Withdrawal Application Regional Vice President: Hafez M. H. Ghanem Country Director: Ousmane Dione Senior Global Practice Director: Karin Erika Kemper Practice Manager: Ruxandra Maria Floroiu Task Team Leader(s): Dora Nsuwa Cudjoe SUSTAINABLE NATURAL RESOURCES MANAGEMENT PROJECT (SSNRMP3) SECOND ADDITIONAL FINANCING TABLE OF CONTENTS I. BACKGROUND AND RATIONALE FOR ADDITIONAL FINANCING ........................................ 6 II. DESCRIPTION OF ADDITIONAL FINANCING .................................................................... 12 III. KEY RISKS ..................................................................................................................... 15 IV. APPRAISAL SUMMARY .................................................................................................. 16 V. WORLD BANK GRIEVANCE REDRESS .............................................................................. 21 VI. SUMMARY TABLE OF CHANGES .................................................................................... 22 VII. DETAILED CHANGE(S).................................................................................................... 22 VIII. RESULTS FRAMEWORK AND MONITORING ................................................................... 25 ANNEX 1: PROJECT DESCRIPTION ......................................................................................... 36 ANNEX 2: IMPLEMENTATION ARRANGEMENTS .................................................................... 40 ANNEX 3: SUMMARY OF CHANGES IN THE RESULTS FRAMEWORK ....................................... 47 ANNEX 4: YEARLY PROGRESS IN MEETING SSNRMP OBJECTIVES .......................................... 49 ANNEX 5: ECOSYSTEM AND STAKEHOLDER PROFILE OF NEW TARGET AREAS UNDER THE AF 54 ANNEX 6: ADDITIONAL AND INCREMENTAL REASONING FOR LDCF/GEF RESOURCES ............ 61 ANNEX 7: MAP OF THE SSNRMP ACTIVITIES ......................................................................... 65 ANNEX 8: THEORY OF CHANGE ............................................................................................ 66 The World Bank Sustainable Natural Resources Management Project (SSNRMP3) Second Additional Financing (P169003) BASIC INFORMATION – PARENT (Sudan Sustainable Natural Resources Management Project - P129156) Country Product Line Team Leader(s) Sudan Global Environment Dora Nsuwa Cudjoe Project Project ID Financing Instrument Resp CC Req CC Practice Area (Lead) P129156 Investment Project SAEE2 (9270) AECE3 (247) Environment, Natural Financing Resources & the Blue Economy Implementing Agency: Ministry of Agriculture and Natural Resources ADD_FIN_TBL1 Is this a regionally tagged project? No Bank/IFC Collaboration No Expected Original Environmental Approval Date Closing Date Guarantee Current EA Category Assessment Category Expiration Date 18-Dec-2013 30-Jun-2022 Partial Assessment (B) Partial Assessment (B) Financing & Implementation Modalities Parent [ ] Multiphase Programmatic Approach [MPA] [ ] Contingent Emergency Response Component (CERC) [ ] Series of Projects (SOP) [ ] Fragile State(s) [ ] Performance-Based Conditions (PBCs) [ ] Small State(s) [ ] Financial Intermediaries (FI) [ ] Fragile within a Non-fragile Country [ ] Project-Based Guarantee [ ] Conflict [ ] Deferred Drawdown [ ] Responding to Natural or Man-made disaster [ ] Alternate Procurement Arrangements (APA) [ ] Hands-on, Enhanced Implementation Support (HEIS) July 7, 2020 Page 1 of 66 The World Bank Sustainable Natural Resources Management Project (SSNRMP3) Second Additional Financing (P169003) Development Objective(s) The Project Development Objective (PDO) and Global Environment Objective is “to increase the adoption of sustainable land and watermanagement practices in targeted landscapes”. Ratings (from Parent ISR) RATING_DRAFT_ NO Implementation Latest ISR 14-Jul-2017 24-Jan-2018 10-Aug-2018 10-Mar-2019 17-Dec-2019 23-Jun-2020 Overall Implementation S S S S MS MS Progress (IP) Overall Safeguards MS MS MS MS MS MS Rating Overall Risk S S S S S S BASIC INFORMATION – ADDITIONAL FINANCING (Sustainable Natural Resources Management Project (SSNRMP3) Second Additional Financing - P169003) ADDFIN_TABLE Urgent Need or Capacity Project ID Project Name Additional Financing Type Constraints P169003 Sustainable Natural Restructuring, Scale Up No Resources Management Project (SSNRMP3) Second Additional Financing Financing instrument Product line Approval Date Focal Area Investment Project Global Environment 23-Jul-2020 Land degradation Financing Project Projected Date of Full Bank/IFC Collaboration Disbursement 30-Nov-2023 No Is this a regionally tagged project? No July 7, 2020 Page 2 of 66 The World Bank Sustainable Natural Resources Management Project (SSNRMP3) Second Additional Financing (P169003) Financing & Implementation Modalities Child [ ] Series of Projects (SOP) [✓] Fragile State(s) [ ] Performance-Based Conditions (PBCs) [ ] Small State(s) [ ] Financial Intermediaries (FI) [ ] Fragile within a Non-fragile Country [ ] Project-Based Guarantee [✓] Conflict [ ] Deferred Drawdown [ ] Responding to Natural or Man-made disaster [ ] Alternate Procurement Arrangements (APA) [ ] Hands-on, Enhanced Implementation Support (HEIS) [ ] Contingent Emergency Response Component (CERC) Disbursement Summary (from Parent ISR) Net Source of Funds Total Disbursed Remaining Balance Disbursed Commitments Grants 13.24 7.71 5.52 58 % PROJECT FINANCING DATA – ADDITIONAL FINANCING (Sustainable Natural Resources Management Project (SSNRMP3) Second Additional Financing - P169003) PROJECT FINANCING DATA (US$, Millions) SUMMARY -NewFi n1 SUMMARY (Total Financing) Proposed Additional Total Proposed Current Financing Financing Financing Total Project Cost 8.35 5.94 14.29 Total Financing 8.35 5.94 14.29 Financing Gap 0.00 0.00 0.00 DETAILS - Additional Financing NewFinEnh1 Non-World Bank Group Financing Trust Funds 5.94 July 7, 2020 Page 3 of 66 The World Bank Sustainable Natural Resources Management Project (SSNRMP3) Second Additional Financing (P169003) Global Environment Facility (GEF) 1.37 Least Developed Countries TF for Climate Change Activities 4.57 COMPLIANCE Policy Does the project depart from the CPF in content or in other significant respects? [ ] Yes [ ✔ ] No Does the project require any other Policy waiver(s)? [ ] Yes [ ✔ ] No INSTITUTIONAL DATA Practice Area (Lead) Environment, Natural Resources & the Blue Economy Contributing Practice Areas PROJECT TEAM Bank Staff Name Role Specialization Unit Team Leader (ADM Senior Environmental Dora Nsuwa Cudjoe SCCCI Responsible) Specialist Nizar Mohamed Ahmed Procurement Specialist (ADM Procurement EAERU Abu Elzoul Responsible) Financial Management Stella Chepkorir Financial management WFACS Specialist Social Specialist (ADM Samuel Lule Demsash Social Safeguards SAES2 Responsible) Environmental Specialist (ADM Tamene Tiruneh Matebe Environmental Safeguards SAEE2 Responsible) Abeyah A. Al-Omair Team Member Public health HAEH1 July 7, 2020 Page 4 of 66 The World Bank Sustainable Natural Resources Management Project (SSNRMP3) Second Additional Financing (P169003) Aimnn Mohamed Hassan Team Member Program Assistant AEMSD Asferachew Abate Abebe Peer Reviewer SSAEN Dereje Agonafir Habtewold Team Member Environmental Specialisr SAEE2 Dr Babiker Abdalla Ibrahim Team Member Public affairs specialist SAEE2 Hamad Esther Bea Team Member Program Assistant SAEE2 Gayatri Kanungo Team Member GEF Coordinator SENCR Habab Taifour Peer Reviewer SAEW2 Jean O Owino Team Member Finance officer WFACS Jiang Ru Peer Reviewer SSAEN Limya Abdelaziz Mohamed Monitoring and Evaluation Team Member AEMSD Ibrahim Specialist Magid Salah Team Member Team Assistant AEMSD Mohamed Osman Hamid Team Member Operations Officer AEMSD Mohamed Omer Ahmed Mohamed Team Member Financial Management EAEG1 Abdalla Razan Mutasim Bashir Team Member Operations specialist SAEE2 Nimir Tracy Hart Team Member SENDR Valery Kavaleuski Team Member Operations specialist SAEE2 Extended Team Name Title Organization Location July 7, 2020 Page 5 of 66 The World Bank Sustainable Natural Resources Management Project (SSNRMP3) Second Additional Financing (P169003) I. BACKGROUND AND RATIONALE FOR ADDITIONAL FINANCING A. Introduction 1. This Project Paper seeks the approval of the World Bank Board of Executive Directors for an Additional Financing (AF) or Phase 3 in the amount of US$5.91 million from the Global Environment Facility (GEF) and Least Developed Countries Fund (LDCF) to the Sudan Sustainable Natural Resources Management Project (P129156) (SSNRMP). It also seeks the Executive Directors’ approval2 to (a) extend the closing date to November 30, 2023; (b) modify activities within the existing components; (c) revise the Results Framework (RF) with indicators for the new activities and extend the end target dates for indicators to match with the revised closing date; and (d) revise the eligible expenditures to reflect the increase of the share of funds allocated to the on-the-ground activities. 2. The Project Development Objective (PDO) of SSNRMP is to increase the adoption of sustainable land and water management practices in targeted landscapes. The PDO is not revised as it remains relevant and achievable. 3. The AF is to scale up implementation of project activities in two additional states of Gadarif and Khartoum and to support restructuring to accommodate innovative technology transfer and climate change adaptation activities in support of combating land degradation through an integrated natural resource management (NRM) approach in Sudan. The proposed AF aims to support innovative proven For Official Use On climate-adaptive technologies in sustainable land and water management (SLWM) to (a) rehabilitate degraded grasslands and rangelands; (b) showcase climate-resilient farming practices, including shelterbelts and high-economic-value trees; (c) promote climate-resilient alternative livelihoods for the most vulnerable people; and (d) develop management and zoning plans for grazing and rangeland areas. The AF builds upon the SSNRMP institutional structures utilizing economies of scale and creating efficiencies in a low-capacity environment. 4. In addition, a portion of the AF will be directed to support the identification of innovative approaches to counter climate-induced vector-borne diseases, such as malaria, through Sudan-centric studies, informing decision-makers and stakeholders about their findings and recommended steps (see annex 1 for more details). B. Original Objectives, Design, and Scope 5. As a least developed and dry Sahelian African country, Sudan is among the countries most vulnerable to the adverse effects of climate change. Agriculture including crops, livestock, and forestry contributes 35–40 percent of gross domestic product (GDP), with poverty estimated at 36.1 percent and malnutrition at 32 percent3. About 30 percent of children under five are chronically malnourished (stunted) and 16 percent suffer from acute malnutrition (wasted). Traditional rain-fed farming accounts for 60–70 percent of agricultural output. As the primary livelihood for poor and vulnerable population, agriculture and livestock sectors require nurturing and scaling up climate-adaptive approaches to build 1 The exact grant amount is US$5,936,073 (LDCF: US$4,566,210 and GEF:US$1,369,863). 2 Project Restructuring was requested in a letter from the Ministry of Finance and Economic Planning, dated May 8, 2018. 3 Sudan Poverty Profile. Summary Results of the 2014-2015 National Baseline Household Budget Survey, AFDB, June 2018 2 December 2019 Page 6 of 67 The World Bank Sustainable Natural Resources Management Project (SSNRMP3) Second Additional Financing (P169003) the needed resilience in the face of increasing impacts of climate change and disaster risks. Conflict and fragility challenges exacerbated by clashes over scarce resources between nomadic groups and others, impose additional pressure on natural resources and Sudan’s ability to develop in line with the 2030 Agenda for Sustainable Development and the Sustainable Development Goals. The parent SSNRMP (Phase 1) became effective in June 2014. The first AF (Phase 2) of the project (P161304) was approved in August 2018 and is currently under implementation. The parent project was restructured by the first AF to (a) extend the closing date to June 30, 2022; (b) modify components to accommodate additional funds; (c) revise the Results Framework with mandatory Corporate Results Indicators (CRI) and indicators for the new activities and extend the end target dates for indicators to match with the revised closing date; (d) revise the eligible expenditures to reflect the increase of the share of funds allocated to the on-the-ground activities; and (e) include additional operational policy (OP) 4.37 on Dam Safety. 6. Partnership arrangements and co-financing. The GoS request comprises US$4.566 million from the LDCF for climate change adaptation and US$1.369 million from Sudan’s allocation for GEF-7 land degradation. The proposed AF leverages and expands the ongoing SSNRMP. The GoS is committed to scaling up sustainable land management (SLM) interventions with a focus on building resilience into as many states as possible and will continue supporting the project through in-kind contributions, provision of office facilities and vehicles, and secondment of staff, despite budget constraints and limited resource availability. The GoS embraced the need for capacity building at the federal and state levels needed to implement the project and sustain its outcomes. Indicative sources of co-financing include in-kind support by the Ministry of Finance, the state of Khartoum, and funding from the International Fund for Agricultural Development (IFAD) for its Sustainable Natural Resource and Livelihood program. Co-financing from all sources sums up to an equivalent of US$17.6 million. 7. Baseline projects and aid coordination. During project appraisal, consultations were conducted with the ongoing relevant projects in the targeted areas to ensure effective coordination and harmonization of activities. These projects include the Drought Resilience and Sustainable Livelihoods Program in the Horn of Africa (DRSLP) in Gadarif implemented by the African Development Bank and Intergovernmental Authority on Development (IGAD) since 2015. The DRSLP aims to address the root causes of drought in the targeted areas focusing on water management, rangeland development, and rehabilitation and improvement of crops and livestock production through its four components: (a) natural resources management, (b) market access and trade, (c) livelihoods support, and (d) project management and capacity building. In addition, Phase 3 will take into account interventions by IFAD’s ‘Butana Integrated Rural Development Project’ (BIRDP), which has covered five states including Khartoum and Gadarif. The BIRDP aims to strengthen the resilience of the targeted communities to drought and to sustainably improve their livelihoods through four components: (a) policy and institution building, (b) natural resources management, (c) livestock and marketing development, and (d) community development business options. The outputs of the DRSLP’s and BIRDP’s components provide key guidelines for Phase 3 implementation. Furthermore, implementation of Phase 3, particularly water management practices, will benefit from the recommendations and lessons learned from the recent report of the United Nations Environment Programme (UNEP) on the Integrated Water Resources Management Good Practices in Sudan. On the wider scope, the U.K. Department of International Development, under the guidance of UNEP, has been supporting the GoS through its Adapt for Environment and Climate Resilience (ADAPT) project which aims to increase the understanding of climate resilience and environmental management in Sudan and ensuring the integration of best practices throughout delivery, planning, and policy. Under the ADAPT project, the first Sudan’s State of 2 December 2019 Page 7 of 67 The World Bank Sustainable Natural Resources Management Project (SSNRMP3) Second Additional Financing (P169003) Environment Report is being developed while an Environment Background Paper to support the development of Sudan’s Poverty Reduction Strategy Paper is produced. Accordingly, and beyond the best practices of SSNRMP Phase 1, the project design of SSNRMP Phase 3 has considered the lessons learned from the implementation of these projects. The project will continue its regular consultations and dialogue with the relevant partners and donors during implementation to avoid any overlaps among the different activities and interventions and to ensure that there is no duplication of efforts. It is noteworthy to mention that SSNRMP is part of Sudan’s Natural Resources Management Network which is a coordination platform that involves all the governmental institutions, nongovernmental organizations (NGOs), international NGOs (INGOs), donors, and projects that are working in NRM. The network provides a good platform to exchange lessons learned and ensure that the different projects’ interventions complement each other. 8. To achieve the PDO, the parent project was designed around three components:  Component 1: Institutional and Policy Framework, including subcomponents: (a) develop effective interagency collaboration mechanisms at the central and state levels; (b) assist communities in preparing and implementing investments under integrated land management plans; and (c) manage, monitor, and maintain soil and water conservation structures in collaboration with Village Development Committees (VDCs).  Component 2: Community-based Sustainable Management of Rangelands, Forests, and Biodiversity, including subcomponents: (a) preparation of integrated land management plans for rehabilitation of shelterbelts and establishment of wind breaks; (b) reforestation of reserve forests and preparation of wildlife conservation and management plans; and (c) rehabilitation of Gum Arabic belt and rehabilitation of rangelands; and  Component 3: Project Management, Monitoring and Evaluation, including coordination support encompassing procurement, financial management (FM), environmental and social safeguards, annual work plans, and organization of implementation support missions. C. Project Progress to Date 9. In its fifth year of implementation, SSNRMP proceeds with Moderately Satisfactory implementation progress (IP) rating, working in three original states of Kassala State, El Gezira State, and White Nile and starting project activities in three Phase 2 states: Northern State, River Nile State and North Kordofan State. For more than two years (July 2017 to December 2019), the project has received Satisfactory rating on its overall implementation progress. The Project Coordination Unit (PCU) is fully staffed and is prepared to take on additional workload. Due to internal unrest in Sudan, the World Bank suspended disbursements between April and September 2019, forcing the extension of the Phase 1 activities. The disbursement ratio of the project including that for the first AF is 58.3 percent or US$7.71 million. Phase 2 effectiveness has been declared, corresponding funds have been allocated, and activities have started. There are no key issues for management attention, and no remedial actions need to be taken. Going forward, the project will focus on replicating and scaling up activities to support climate- resilient incentives, technologies, and policy measures to improve the adaptive capacity of targeted vulnerable population. 2 December 2019 Page 8 of 67 The World Bank Sustainable Natural Resources Management Project (SSNRMP3) Second Additional Financing (P169003) 10. Progress toward achievement of the PDO is being monitored and reported through quarterly PCU reports. Table 1 reflects the progress to date. Table 1. Progress toward Achievement of the PDO PDO Indicators Actual End Target Land area where sustainable land management practices were adopted as 111,256 164,000 a result of project (ha) Areas brought under enhanced biodiversity protection (ha) 20,687 23,400 Direct project beneficiaries (number of people), of which female (%) 47,178 (33%) 85,000 (35%) D. Rationale for Additional Financing 11. Climate change and land degradation are inextricably linked in the context of Sudan and need to be addressed synergistically through integrated NRM. According to the studies under the Reducing Emissions from Deforestation and Forest Degradation Readiness Program, drivers of land degradation in Sudan include climate change and unsustainable biomass use for energy (50 percent of Sudan’s energy comes from biomass). 12. More than 80 percent of Sudan consists of arid or semiarid areas. The Fifth Assessment Report of the Intergovernmental Panel on Climate Change (2014) projected that the Horn of Africa will be among the regions to be most negatively affected by climate change. While average temperatures are climbing, For Official Use On average rainfall decreased by 5 percent in the rainy season throughout Sudan between the 1970s and 2000. Rising temperatures will exacerbate existing stresses on the Nile water flow and are likely to affect broader water resources, food security, human health, ecosystem health, and livestock. 13. Increasing temperatures, decreasing annual precipitation, and increasing variability are causing gradual southward shift of ecological zones, with progressing desertification in Sudan. Recent semiarid zones are gradually taking on characteristics of the arid zones. Droughts are likely to intensify due to reduced precipitation and/or increased evapotranspiration.4 Changes in rainfall and temperatures affect the magnitude, duration, and frequency of droughts. Sudan features the Nubian and the Libyan Deserts, both expanding southwards and exacerbating the growing pressures on rangeland by human settlements and livestock. Simultaneously, many ecologically important areas in Sudan are threatened by deforestation due to unsustainable forest management practices and extraction, resulting in 12 percent loss of Sudan’s forest cover in just 15 years.5 14. Observed and predicted changes in temperature and rainfall patterns threaten food security in Sudan and have caused changes in the productive capacity of rain-fed agriculture. According to Sudan’s First and Second National Communication, its National Adaptation Program of Action (NAPA), and its National Adaptation Plan (NAP), one of the most detrimental impacts of climate change is the increasing frequency of extreme flooding events caused by an increase in intensity of rainfall during the rainy season. Farming productivity is predicted to be affected by climate change due to reduced water supply, reduced 4 Verner, Dorte, 2012. Adaptation to a Changing Climate in the Arab Countries. MENA Development Report. World Bank. 5 UNEP. 2007. Synthesis Report Sudan Post-conflict Environmental Assessment . 2 December 2019 Page 9 of 67 The World Bank Sustainable Natural Resources Management Project (SSNRMP3) Second Additional Financing (P169003) crop productivity, prolonged droughts, and loss of arable land resulting from increased erosion from desertification and flooding. 15. Climate change can potentially increase conflicts over arable land and pastures, water, and other natural resources, thus contributing to internal displacement and forced migration, especially in the areas of Sudan where subsistence farming is the basis for livelihoods.6 16. Climate change affects the health sector and the spread of vector-borne diseases. Malaria and other climate-induced, vector-borne diseases are more likely to spread in certain scenarios under climate change. Due to poor water quality, Sudan had the second highest costs attributed to diarrheal deaths relative to all Arab states in 2010, spending over US$600 million. 7 Approximately 2 percent of GDP is spent on clean water and treatment of diarrheal diseases. Climate change is expected to increase the incidence and spread of epidemics, malaria, and other vector-borne diseases.8 17. Considering these ongoing and anticipated developments, the GoS requested to expand the coverage of the ongoing SSNRMP practices to the most vulnerable areas in Gadarif and Khartoum. Phase 3 captures the efficiencies and economies of scale by expanding SSNRMP from the six states where project activities are already being implemented. In total, the project activities will directly address the issues in eight states. The two new project locations are in line with Sudan’s NAPA and are selected to support the Great Green Wall Initiative (GGWI). This pattern of project area selection also corresponds with the LDCF and GEF land degradation strategy while factoring in value addition leading to the sustainability of this project. Khartoum was specifically selected to stabilize the rural population around the capital and to make the best use of the high capacity of governmental institutions in this state. 18. The GoS is committed to scaling up project activities implementing nature-based solutions to climate-induced risks. Results from the ongoing project activities confirm that despite the growing trends of climate impacts in Sudan, climate change adaptation interventions help secure livelihoods and make them more resilient. Such interventions include (a) rangeland rehabilitation, (b) grass cover restoration, (c) forest regeneration, (d) innovative low-cost water harvesting solutions, (e) distribution and propagation of viable climate-resilient/drought-resistant seed varieties, (f) capacity training and on-farm demonstration of land management techniques, and (g) diversifying sources of income. 19. The restructuring would reinforce the capacity to achieve the PDO by the modification of activities and directing more funds to the on-the-ground activities and improve service delivery in a fragile and conflict-affected context, responding to international appeals and calls from the GoS to support the poorest and most vulnerable people in managing resources sustainably and combating land degradation while enhancing systemic resilience. The proposed interventions will help Sudan respond to climate- related risks. 6 Drivers of Deforestation. 2018. Technical study as part of reducing emissions from deforestation and forest degradation (REDD+) readiness. Forest National Cooperation of Sudan. 7 Verner, Dorte. 2012. Adaptation to a Changing Climate in the Arab Countries . MENA Development Report. World Bank. 8 “Changes in Climate Extremes and Their Impacts on the Natural Physical Environment.” In Managing the Risks of Extreme Events and Disasters to Advance Climate Change Adaptation. A Special Report of Working Groups I and II of the Intergovernmental Panel on Climate Change. Cambridge, United Kingdom, and New York, United States: Cambridge University Press. pp. 109–230. 2 December 2019 Page 10 of 67 The World Bank Sustainable Natural Resources Management Project (SSNRMP3) Second Additional Financing (P169003) 20. The project complements planned and ongoing poverty reduction efforts in the drought-stricken less resilient areas of the country. The proposed activities to be supported with the GEF/LDCF funds correspond to the priority sectoral and geographical areas in the Sudan NAPA. In Sudan, the NAPA report (2007) showed that the groups that are the most vulnerable to climate risks are the traditional rain-fed farmers and pastoralists. Rain-fed agriculture farmers and pastoralists are typically the least able to cope with climate-related shocks in Sudan. There is ample evidence of past climatic shocks generating a chain of events that led to the disintegration of community and the discontinuity of human habitation. The NAPA consultation process confirmed a widespread interest in the introduction of certain types of measures to preserve agricultural production capability, conserve water resources, and inhibit the spread of disease. 21. Through this project, Sudan fast-tracks the implementation of its first Nationally Determined Contribution under the Paris Agreement by pursuing Land Degradation Neutrality through integrated NRM that generates and fosters adaptive approaches to climate change, adaptation, and SLM and biodiversity benefits in response to climate predictions which show that “humid agro-climate zones will shift southwards rendering areas of the North increasingly unsuitable for agriculture”,9 with grave implications for food security and the livelihoods of farming communities and pastoralists. 22. The AF aims to furnish investments and capacity development in the three most vulnerable sectors as identified in the NAPA—forest (agriculture), water, and health—through increasing agricultural productivity, increasing access to water, and studying measures for controlling climate-induced diseases. Specifically, the project will support bottom-up land use approaches for the project beneficiaries to enhance their climate-resilient/adaptive livelihoods options. 23. Phase 3 objectives match the LDCF programming strategy goals for 2018–2022: “Reduce Vulnerability and Increase Resilience through Innovation and Technology Transfer for Climate Change Adaptation” and “Mainstream Climate Change Adaptation and Resilience for Systemic Impact.” The AF responds to the GEF-7 LDCF objective encouraging countries to “strategically jointly program LDCF grants alongside GEF Trust Fund resources to develop robust projects or program that generate global environmental benefits and as well as adaptation benefits.” It maximizes the comparative advantage of these two funds leveraging co-financing from the ongoing World Bank-supported operations to deliver multiple benefits with focus on vulnerable communities in fragile ecosystems. This project capitalizes on addressing major GEF/LDCF focal areas—land degradation and climate change—two sides of the same coin in the Sudan dry landscape. 24. The proposed additional grant contributes to the World Bank Africa Climate Change Plan, including its pillar on resilient landscape, and is consistent with the World Bank FY14-15 Interim Strategy Note for Sudan, and the Country Engagement Note (CEN) for Sudan for the period FY21-22 that is currently under preparation. SSNRMP’s approach to mainstreaming gender consideration is consistent with the GEF Policy on Gender Mainstreaming and the World Bank Group’s renewed Gender strategy. 25. The World Bank’s comparative advantages for supporting the GoS in addressing climate adaptation and land degradation issues come from the World Bank’s significant experience in promoting climate-resilient development by integrating knowledge, investment, and policy support and engaging 9 https://www.wri.org/our-work/project/world-resources-report/climate-change-adaptation-and-decision-making-sudan. 2 December 2019 Page 11 of 67 The World Bank Sustainable Natural Resources Management Project (SSNRMP3) Second Additional Financing (P169003) private sectors, in addition to its ability to mobilize resources and leverage financing to support countries’ development priorities. II. DESCRIPTION OF ADDITIONAL FINANCING 26. Building on successful implementation. The proposed AF builds upon the existing enabling systems, structures, and capacity developed under the SSNRMP to improve the food security using the integrated landscape/ecosystems approach. The proposed AF replicates tested SSNRMP practices for enhanced environmental benefits and improved food security and expands the target area coverage to demonstrate transformative impacts at the landscape level. 27. Mainstreamed implementation. The project’s implementation is fully mainstreamed into the government system, with the project managed and implemented by the existing GoS structures coordinated by the Ministry of Agriculture and Natural Resources (MANR). The existing arrangements are favorable in cost-effectiveness and sustainability. Since project implementation processes are well established ensuring effective management of inputs and activities, Phase 3 continues the devolution of implementation responsibilities to the lower level, that is, state and locality levels. The AF will also be used to develop a policy framework for SLWM (consolidating all the lessons learned from Phases 1 and 2) and provide recommendations for the Government to incorporate such a framework in its economic development plans, sectoral strategies, investment plans, and budget allocations. 28. Theory of Change. Communities in Gadarif and Khartoum are vulnerable to impacts of climate change while facing land degradation. Phase 3 aims to bring a total of 57,000 ha of landscapes under improved practices and reach 25,000 direct beneficiaries (at least 45 percent women) from SLM activities. The project is intended to strengthen the resilience of poor communities and support Sudan's effort to enhance its adaptive capacity through (a) mainstreaming climate change and resilience into policy and planning and (b) reducing vulnerability and increasing resilience through innovation and technology transfer. In addition, the AF is intended to address drivers of land degradation and desertification through (a) reducing pressures on land use and (b) improving agroecosystem services. The success of the project is dependent on adopting a number of SLWM practices and conducting a number of community development activities to strengthen people's resilience. The Theory of Change of SSNRMP Phase 3 is presented in annex 8. 29. High demand and absorptive capacity. Notably, there is high demand for project support to SLWM and community-based NRM activities among project benefiting communities. Demand exceeds currently available funding about twofold, underpinned by the ownership and high absorptive capacity in the targeted areas. The AF addresses these issues by funding scaling-up activities in the beneficiary communities. 30. Key AF outcomes. Key projected outcomes for Phase 3 include (a) expanded adoption of integrated SLWM practices by target communities, (b) improved sustained flow of environmental services in agroecosystems, and (c) improved management of reserve forests and shelterbelts. Mostly, the AF is expanding the scale of the ongoing activities with an increased focus on the adoption of climate-resilient technologies. These activities help rehabilitate degraded grasslands and rangelands, increase resilience 2 December 2019 Page 12 of 67 The World Bank Sustainable Natural Resources Management Project (SSNRMP3) Second Additional Financing (P169003) and food security of communities in targeted areas and study possible response to the spread of malaria. In addition, the environmental services provided by the project communities through SLWM, soil and water conservation, and good farming practices could be converted into commodities that contribute to environmental sustainability and improve natural capital assets at the local level. 31. Innovative nature of the AF. Phase 3 supports innovative solutions and approaches in several areas: (a) countering of vector-borne diseases, (b) institutionally inclusive management of natural resources, (c) climate-smart NRM technologies, and (d) implementation of sustainability measures to be based on the findings from the impact assessment of Phase 1. The proposed AF design draws upon proven and tested approaches in institutional development and adaptive landscape restoration while supporting innovations in malaria control through Sudan-centric studies, informing decision-makers and stakeholders about their findings and recommended steps. 32. Boosting jobs and rural incomes. Phase 3 provides jobs and employment opportunities for local communities and supports improving their incomes through direct payments and indirectly through provision of inputs and trainings. Job opportunities will include activities pertaining to rehabilitation of forests and rangelands and civil works. The number of beneficiaries, at the community level, who will receive work for pay and who will be paid on a daily basis is estimated to be 1,519, while 91 beneficiaries will be paid on a monthly basis. Given that the primary goal is to promote sustainable NRM practices and climate change adaptation methods, the project will continue collecting monitoring and evaluation (M&E) data on income-generating activities throughout the project to inform future analysis but without creating a specific new indicator in the RF on jobs and incomes. Proposed Changes 33. Additional states. The AF scales up successful SSNRMP activities to two additional states: Gadarif and Khartoum. The AF will (a) rehabilitate degraded grasslands and rangelands; (b) establish demonstration farms to showcase climate-resilient farming, shelterbelts, and high-economic-value trees; (c) promote climate-resilient alternative livelihoods for the most vulnerable people; and (d) develop management and zoning plans for grazing and rangeland areas. Detailed profiles of the new states along with the description of the selected areas for project activities are presented in annex 5. 34. Results Framework. Most indicators have been revised and scaled up to reflect Phase 3 targets. Summarized RF changes are presented in annex 3, and year-to-year progress in meeting SSNRMP objectives is discussed in annex 4. In the combined RF, four indicators implemented during Phase 1 and Phase 2 are not funded under Phase 3 and will therefore not be monitored. They are marked as such in the RF. For Phase 3, five new indicators have been added to reflect on the project activities on malaria, to assess citizen engagement (CE), and to meet GEF/LDCF funding requirements regarding climate change adaptation and resilience. 35. Scope of activities. The project integrates innovative technology transfer activities in support of the implementation of the United Nations Convention to Combat Desertification and Sudan’s commitments under the Paris Agreement. Such activities include (a) supporting the production of highly nutritive food crops and drought-resistant varieties through awareness raising to local communities and strengthening existing production cooperatives, including women’s cooperatives; (b) setting up small- scale irrigation infrastructure (hydro-pumps) supported by high-efficiency off-grid solar PV; (c) 2 December 2019 Page 13 of 67 The World Bank Sustainable Natural Resources Management Project (SSNRMP3) Second Additional Financing (P169003) establishment/rehabilitation of seasonal water harvesting and storage facilities; and (d) construction of additional boreholes for local groundwater extraction and management. Due to research gaps in research on malaria incidences and climate change, Phase 3 also supports innovations in malaria control through Sudan-centric studies, informing decision-makers and stakeholders about their findings and recommended steps in this area. 36. Implementation arrangements and closing date. The closing date of the project is proposed to be extended to November 30, 2023, well within 10 years of the parent project approval. The implementation arrangements will utilize economies of scale and deliver maximum impact on the ground. The PCU will hire State Project Implementation Unit (SPIU) heads through competitive process instead of hiring governmental secondees to avoid any overlap of interests. In addition, the team will adopt evolved implementation modalities for Khartoum, given that it represents a special case. It is densely populated, its demography is influenced by displacement from other parts of Sudan, and this affects traditional farming practices due to rapid urbanization. Existing youth committees and community committees will be considered in the implementation arrangements. During implementation, the team will consider an appropriate form for an innovative institutional mechanism to engage the private sector and communities. There are no changes planned for the safeguards or fiduciary arrangements. Additional Financing Scope 37. Table 2 shows current and Phase 3 financing by component. Table 2. Funding by Components under Phases 1, 2, and 3 and Total Component Phase 1 Phase 2 Phase 3 Total Component 1: Institutional and Policy Framework 1,500,000 600,000 700,000 2,800,000 Component 2: Community-based Sustainable Management 5,230,000 4,163,586 4,696,073 14,089,659 of Rangelands, Forests, and Biodiversity Component 3: Project Management, Monitoring and 1,000,000 741,000 540,000 2,281,000 Evaluation Total 7,731,481 5,504,586 5,936,073 19,172,140 38. The project is structured in three project activities/components. A detailed description of components is provided in annex 1. This section presents a summary of project activities. In addition, given the emerging context shaped by the COVID-19 pandemic, the project stipulates flexibility to address requests of the GoS to support activities to fight COVID-19 which would be aligned with the project’s general focus on building up resilience, including at the community level. As per the project objective “to increase adoption of sustainable land and water management practices in targeted states,” interventions will support improved water harvesting techniques and access to water. Access to potable water is key to meeting basic hygiene needs critical to containing the spread of the virus. The project will also support alternative livelihood interventions and efforts to improve food security. Under the component to support research work on climate-induced vector-borne studies, the project could contribute to relevant epidemiological studies around climate and environmental factors and viral diseases. 2 December 2019 Page 14 of 67 The World Bank Sustainable Natural Resources Management Project (SSNRMP3) Second Additional Financing (P169003) Component 1: Institutional and Policy Framework 39. This component finances technical assistance, workshops, goods, services, and operational costs to build or support national-, state-, and local-level capacities to strengthen policy and regulatory frameworks, remove critical knowledge barriers, and develop an enabling environment for the on-the- ground activities. Component 1 supports (a) capacity building of institutions involved in NRM by strengthening their capacity to formulate, implement, and monitor programs and projects in this area; (b) development of a policy framework on sustainable forest and land use management; (c) information and knowledge management. In addition, this component supports innovations in malaria control through Sudan-centric studies and informing stakeholders about their findings and recommendations. Component 2: Community-based Sustainable Management of Rangelands, Forests, and Biodiversity 40. This component focuses on incorporating innovative technologies in community-based sustainable NRM. Subcomponents include (a) addressing climate change impacts on water resources and agriculture by promoting innovative climate-smart NRM technologies and (b) alleviating negative impacts of environmental degradation and climate change on livelihoods. Specific areas of activities include (a) rangeland management and rehabilitation using innovative locally tested land techniques, (b) preparation of integrated land management plans, (c) introduction of small-scale irrigation infrastructure supported by high-efficiency off-grid solar photovoltaic (PV) as well as protection and use of water resources, (d) forest ecosystem rehabilitation and restoration, (e) establishment of demonstration farms to showcase climate-resilient farming, shelterbelts, and high-economic-value trees, (f) strengthening of resilience of communities; and (g) development of locality SLWM extension approaches. This component through various procurement methods finances technical assistance, training, investments, goods, works, services, and operational costs related to the promotion of wider adoption of community-based SLWM practices in forests and rangelands in the targeted communities. Component 3: Project Management, Monitoring and Evaluation 41. Under this component, support is provided for day-to-day project implementation and management including procurement, FM, environmental and social safeguards aspects, preparation of annual work plans, and organization of supervision missions. The component provides support for office operating costs including annual audit costs and supervision missions. This component also supports the M&E system tracking the project’s expected results. III. KEY RISKS 42. The overall risk rating for the project is Moderate determined by the improved capacity of the Khartoum based Project Coordination Unit and relevant Ministries and their proven record in effective project management, procurement, finance management, safeguards, and gender inclusion. While recognizing the prevailing difficult circumstances of socio-economic and political transition as well as the COVID-19 pandemic which brings another challenge to project preparation and implementation similar to all Bank interventions, project activities have been innovative adopting remote supervision and oversight mechanisms, remained tangible and impactful and received state government support. 2 December 2019 Page 15 of 67 The World Bank Sustainable Natural Resources Management Project (SSNRMP3) Second Additional Financing (P169003) 43. Political and governance risk is rated Substantial. This risk is defined by the political transition in Sudan, accompanied by tensions arising from difficult socioeconomic conditions as well as the occasional inertia of resisting political change, which could affect the implementation of SSNRMP across all states. Recent political unrest in 2019 resulted in suspension of the project’s disbursement from April to September, adversely affecting the pace of project implementation. Selection of project sites within Phase 3 states is flexible, and funds can be redirected to new sites if necessary. Governance risks are related to frequent changes in the management of central agencies and continued uncertainty in the prospects of resolving their overlapping responsibilities. This latter risk will be mitigated by enhanced efforts to collaborate across multiple institutions and strengthened institutional coordination between the PCU and new SPIUs. 44. Macroeconomic risk is rated Substantial. This is due to the massive ongoing economic crisis as the country embarks on the path of broad systemic economic reforms. Macroeconomic risk could adversely affect the project as a result of rampant inflation, changes in currency exchange rates, cash shortage, and/or deficit in basic goods that the project highly depends on such as fuel. General cost inflation could then significantly increase project budget. Support under the project is expected to lead to increased efficiency in government spending in the agriculture and environment sectors, which leads to continued infusion of additional financial resources. 45. Climate risk is rated Substantial. Climate change, particularly erratic rainfall and drought, may affect the results of the investment techniques. The project will continue to build capacities of local institutions and communities on the design and use of water harvesting and scale up most suitable water harvesting techniques to capture rain and runoff water. IV. APPRAISAL SUMMARY A. Economic and Financial (if applicable) Analysis 46. Preliminary economic and financial analysis of the SLWM practices under the project reveals positive trends. The project helps increase the resilience of the socioeconomic systems and ecosystems in the targeted areas. The benefits include (a) increased primary production of ecosystems, (b) increased biodiversity, (c) increased recharge of ground water, and (d) increased carbon sequestration (forest and soil). Investments in SLWM help targeted areas transition toward long-term resilience by strengthening the financial, economic, environment, and natural resource assets and are expected to contribute positively to Sudan's socioeconomic development. 47. Projected development impact is leading to improved local capacities in NRM, enhancement of environmental quality and regeneration of trees and range resources, more active community organization and engagement of a wide range of stakeholders, increased women’s role in economic activities, improved water supplies at the community level, policy response to address climate-induced diseases, and strengthened capacities of involved government departments. 48. Phase 3 interventions are designed in the same way as those of Phase 1 and Phase 2 and target locations in two new states within the GGWI belt, and therefore, the economic analysis is expected to follow a similar trend. Considering that the project follows a framework approach, with few specific investments identified in advance, a full ex ante economic analysis is not possible. Jointly with the PCU, 2 December 2019 Page 16 of 67 The World Bank Sustainable Natural Resources Management Project (SSNRMP3) Second Additional Financing (P169003) the project team will monitor and assess economic impact from activities during implementation. At this stage, the following considerations are taken into account:  International experience suggests that SLWM technologies bring substantial long-term productivity gains.  Investments in capacity building will be particularly cost-effective if the project catalyzes larger SLWM investments and broader uptake in drought-prone areas in Sudan.  AF interventions will rely on capacity-building efforts from the earlier phase of the project to reach scale and greater development targets. 49. Results from demonstrations and farmer fields show increases in agricultural productivity of on average 20–30 percent from the ongoing SLWM interventions. It is reasonable to expect similar results under the proposed AF. VDCs are expected to eventually become financially viable under a variety of small-scale, sustainable microfinance mechanisms and schemes. An independent midterm evaluation conducted in 2017 indicated the importance of more efforts to strengthen targeted communities in business models to contribute to the achievement of the full package of SLWM interventions on household outcomes (socioeconomic well-being and food security). Once the COVID-19 induced restrictions are lifted, the PCU intends to launch an independent impact assessment for the results of Phase 1 activities, which will inform how best to support the sustainability of the parent project. The findings of the impact assessment will become an important lessons-learned instrument to develop sustainability measures and inform economic and financial analysis for Phase 2 and Phase 3. B. Technical 50. The SLWM approach/technologies employed, including agroforestry and cropping mix, are largely tested and well understood in Sudan. The project design places more emphasis on innovation and experimentation in incentives and extension systems to support the application of the technologies. The proposed AF is specifically focused on ensuring sustainability and reducing pressures on common resources by providing support to sustainable uses of forests. The design of the proposed activities in the SSNRMP areas has benefited from earlier work carried out under the desertification control and the Revitalizing Gum Arabic Production and Marketing Project (P110588) and from experience gained to date under the ongoing SSNRMP. C. Financial Management 51. The MANR carries the responsibility for project implementation. It has acceptable FM arrangements in place to implement the project. The MANR is staffed by a finance manager, a deputy manager, and eight qualified accounting staff seconded by the GoS. In addition, the MANR has a resident internal auditor who reviews all transactions and support documents before payment is done. An administrative unit at the ministry is tasked with ensuring that fixed assets are properly recorded and safeguarded. 2 December 2019 Page 17 of 67 The World Bank Sustainable Natural Resources Management Project (SSNRMP3) Second Additional Financing (P169003) 52. Physical verification of fixed assets is undertaken on an annual basis. The Finance Department keeps the accounting books and has set up a manual accounting system to record project transactions, prepare project financial statements, and have them audited. 53. Project financial statements are audited by the Sudan National Audit Chambers in accordance with International Standards on Auditing. The audit reports are submitted to the World Bank not later than six months after the end of each fiscal year. The Finance Department is required to prepare and submit to IDA, within 45 days following the end of each quarter, an interim financial report. D. Procurement 54. Procurement for the parent project has been carried out according to the World Bank’s ‘Guidelines: Procurement under IBRD Loans and IDA Credits’ and ‘Guidelines: Selection and Employment of Consultants by the World Bank Borrowers’, both dated January 2011 and revised July 2014. Procurement has been carried out by a dedicated procurement specialist (PS), working under the overall supervision of the project coordinator. Procurement Committees comprise PCU staff and SSNRMP Steering Committee and TC members, as needed. The Project Implementation Manual (PIM) provides clear guidance on institutional procurement arrangements. The PIM for Phase 3 has been updated to follow the New Procurement Framework (NPF) that applies to investment projects after July 1, 2016 . 55. The AF includes the Project Procurement Strategy for Development (PPSD). The Procurement Plan for the first 18 months of AF project implementation was cleared on February 20, 2020. The PCU has adopted the Systematic Tracking of Exchanges in Procurement (STEP) system. The primary risk identified in the PPSD is the use of the NPF. Mitigation of this risk will be through providing training to all procurement staff, with a focus on capacity strengthening in the Phase 3 states. 56. Procurement Post Reviews (PPR) have been conducted annually by the World Bank Sudan PS. The project’s Procurement Plan has been maintained satisfactorily. It has been reviewed and approved during Joint Implementation Support Missions and sent for the task team leader’s ‘no objection’ when modifications were proposed between implementation support missions. After initial procurement- related delays in the first two years of the parent project, PPRs have found management of procurement functions satisfactory. Recent PPRs have noted only a few instances of delays in publication of awards and lack of clarity on the annual leave parameters for PCU staff. 57. The PCU is responsible for all procurement associated with Components 1 and 3. The SPIUs manage the bulk of procurement under Component 2, primarily shopping for goods and works. The GoS seconds staff to SPIUs to work as procurement officers. The SPIU procurement officers are trained by the PCU PS and execute their procurement function under the guidance of this PS. 58. Whenever possible under Component 2, VDCs make small procurement of local goods under the sub-grants to the communities. This community procurement mechanism is conducted through local shopping, as stipulated in the PIM, to bring communities closer to project management and seek physical decentralization through contracting local entrepreneurs for small contracts. 2 December 2019 Page 18 of 67 The World Bank Sustainable Natural Resources Management Project (SSNRMP3) Second Additional Financing (P169003) E. Social (including Safeguards) 59. The project is expected to have positively impact on target farming and VDC communities through improved agricultural productivity; expanded livelihood opportunities; increased resilience and adaptation to climate change through the introduction of improved crop varieties, shelterbelts, crop rotation, efficient water harvesting structures, and the establishment of early warning systems; and enhanced flow of environmental services (for example, through improved water or carbon sequestration services). A participatory, consensus-based, and community-driven approach to activities on the ground mitigates against potential social risks since decisions are arrived at by an entire community as part of the micro-land use planning process. SSNRMP activities will not involve land acquisition leading to involuntary resettlement; however, a Process Framework activated for the original project has been updated for the AF and disclosed on February 19, 2020. The project activities’ focus on livelihood security will enhance social capital in participating communities. No labor influx is expected under the project-funded activities. 60. Throughout the first two phases, the project has demonstrated steady performance on safeguards consistently receiving Moderately Satisfactory rating. A recent hire of a dedicated full-time safeguards specialist to coordinate and facilitate the implementation of the project’s safeguard instruments has solidified the PCU’s grasp of these matters and created an important resource of technical expertise and oversight for SPIUs. Improvements since the staff came on board include (a) trainings and awareness events for local government staff and participating communities, (b) regular monitoring of the application of the safeguards instruments, (c) hands-on support to the SPIUs in the use of the screening forms, and (d) mainstreamed safeguards issues in the project activities, including safeguards commitments in contracts and due diligence for financial payments. SSNRMP Gender Approach 61. In Gadarif and Khartoum, women face challenges such as (a) vulnerability due to seasonal labor migration of husbands; (b) low levels of education; and (c) forms of livelihoods engagement, pastoralists more vulnerable than agriculturalists. The analysis also indicated the constraints to women’s access to an equitable role in decision-making. Thus, the design of the proposed projects relies on the implementation experience of SSNRMP in creating opportunities for women’s equal rights to project resources, as well as access to long-term strategic investments and other forms of support, in accordance with Sudanese laws. 62. Phase 3 addresses the gender gap through (a) institutional capacity building and policy framework; (b) community-based sustainable management of rangelands, forests, and biodiversity; (c) income-generating activities such as crafts work, backyard vegetable farming, collection of forest seeds, collection of pasture seeds, and selling of crops such as ground nuts, melon seeds, and vegetables. 63. The SSNRMP considers different roles of men and women in advancing sustainable NRM. Regular review and midterm and project closure evaluations rigorously monitor the impact of SSNRMP activities on gender including achievements toward the minimum targets to ensure inclusion and continued project benefit and remove constraints. 64. The activities on closing gender gap in the new states will be informed by the findings of the gender study currently under way. To ensure long-term sustainability of the project and to reflect the critical role of women in enhancing community resilience, the project includes activities geared at 2 December 2019 Page 19 of 67 The World Bank Sustainable Natural Resources Management Project (SSNRMP3) Second Additional Financing (P169003) establishing women cooperatives for knowledge sharing, joint marketing, and seed bank storage, as well as for honey and fruit production. Laying the groundwork for comprehensive efforts to counter detrimental effects of malaria, Sudan-centered studies on countering malaria supported by the project will examine the impact on women as often main caretakers in families. 65. Key gender outcome/results indicators in Phase 3, where feasible, reflect an increase in the share established under Phase 1 and Phase 2 and include the following: (a) composition of female participation in the VDCs is 50 percent; (b) female-headed household recipients of the livelihood activities are 18 percent; (c) the target female participation in training programs for extension service providers is 50 percent; (d) the target female participation in training on formulation, monitoring, and implementation of policies for SLWM is 50 percent; and (e) female beneficiaries are 45 percent. Stakeholder Engagement 66. Information sharing and exchange are central to the design of the project (see annex 5 for details). The SSNRMP has promoted effective partnerships and knowledge sharing across stakeholders. The AF is expected to contribute to this effort ‘leading from behind’ with the expectations for a strong ministry/agency capacity to coordinate the Environment Donors’ group works. 67. The project has been in close contact with IFAD, the Food and Agriculture Organization of the United Nations (FAO), UNEP, and the United Nations Development Programme through the Environmental Donors’ group. The project also works closely with the Higher Council for Environment and Natural Resources (HCENR), which is expected to assist in information sharing. The project has vast and active presence in the social media. Further, as part of the World Bank-GEF Sahel and West Africa Program in Support of the Great Green Wall Initiative (SAWAP) which brings a large group of stakeholders together, the project has shared and published lessons and best practices. 68. As part of the project’s Implementation Support Missions, the team regularly conducts information and experience sharing visits with key partners engaged in the NRM agenda and regular meetings have been held with UNEP, IFAD, IGAD, FAO, Swedish Agency for International Development, and Norwegian Embassy. Citizen Engagement 69. Achieving the objective of sustainable NRM is only possible with active CE to secure buy-in for project activities and strengthen ownership of the process leading to the desired transformation. In SSNRMP, community participation is the central concept of the project providing for engagement of communities in project activities to determine issues that need attention and define solutions to address them. The CE supports the engagement of people living in and around project intervention areas. The objective is to connect local communities’ perception of the interventions' social impact with management decisions to enhance project quality through the integration of various community interests and incorporate local knowledge. 70. The project seeks to enhance citizens’ voice and participation. Intertwining CE mechanisms are designed to generate stakeholder ownership of project activities: (a) direct consultations with beneficiaries, (b) arrangements for registering and addressing grievances and complaints, and (c) a 2 December 2019 Page 20 of 67 The World Bank Sustainable Natural Resources Management Project (SSNRMP3) Second Additional Financing (P169003) community monitoring process embedded at the local level. A typical cross-cutting instrument to pursue sustainable NRM through communities is the community action plan, developed and adopted jointly by SPIUs and communities. The progress in applying these CE mechanisms will be continuously assessed during implementation. 71. Consultations with communities and other stakeholders started during project preparation will continue throughout project implementation to promote transparency and participation of men and women in decision-making as well as sustaining of project investments. CE outcomes in the area of NRM, as prescribed in the Strategic Framework for Mainstreaming CE in World Bank Group Operations, will be assessed through an indicator ‘beneficiaries who participated in planning, implementation, monitoring, evaluation of landscape management activities’. F. Environment (including Safeguards) 72. All safeguards policies applicable to the parent project are also applicable to this AF. Several factors influence the Moderately Satisfactory rating of safeguards performance in the Implementation Status and Results Reports (ISRs) to date: slow progress in implementing the grievance redress mechanisms (GRM), screening documentation of subprojects at an insufficient level, and a lack of implementation of annual environmental and social issues audit. The hiring of a dedicated, full-time PCU environmental and social safeguards specialist brought about positive developments, including capacity building on safeguards for the SPIUs and state implementing agency (IA) staff. 73. The project’s principal motivation is improved SLWM, reversed land degradation, and contribution to climate change resilience. The project is expected to lead to measurable biophysical improvements in the target landscapes through improved vegetative cover, reduced soil erosion, reduced siltation and sedimentation, and improved landscape connectivity. The environmental impacts of the project will likely be overwhelmingly positive, with only minor potential for local adverse environmental impacts from activities such as tree planting, water harvesting structures, and other small on-farm earthworks related to soil conservation. The Environmental and Social Management Framework (ESMF) has been updated, consulted upon, and disclosed for use on February 20, 2020. The safeguards specialist will be responsible for monitoring and reporting on the application of the ESMF. V. WORLD BANK GRIEVANCE REDRESS 74. Communities and individuals who believe that they are adversely affected by a World Bank (WB) supported project may submit complaints to existing project-level grievance redress mechanisms (GRM) or the World Bank’s Grievance Redress Service (GRS). The GRS ensures that complaints received are promptly reviewed in order to address project-related concerns. Project affected communities and individuals may submit their complaint to the World Bank’s independent Inspection Panel which determines whether harm occurred, or could occur, as a result of World Bank non-compliance with its policies and procedures. Complaints may be submitted at any time after concerns have been brought directly to the World Bank's attention, and Bank Management has been given an opportunity to respond. For information on how to submit complaints to the World Bank’s corporate Grievance Redress Service (GRS), please visit http://www.worldbank.org/en/projects-operations/products-and-services/grievance- redress-service. For information on how to submit complaints to the World Bank Inspection Panel, please visit www.inspectionpanel.org. 2 December 2019 Page 21 of 67 The World Bank Sustainable Natural Resources Management Project (SSNRMP3) Second Additional Financing (P169003) VI. SUMMARY TABLE OF CHANGES Changed Not Changed Results Framework ✔ Components and Cost ✔ Loan Closing Date(s) ✔ Implementing Agency ✔ Project's Development Objectives ✔ Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Disbursements Arrangements ✔ Safeguard Policies Triggered ✔ EA category ✔ Legal Covenants ✔ Institutional Arrangements ✔ Financial Management ✔ Procurement ✔ Implementation Schedule ✔ Other Change(s) ✔ VII. DETAILED CHANGE(S) COMPONENTS Current Component Name Current Cost Action Proposed Component Proposed Cost (US$, (US$, millions) Name millions) Component 1: Institutional 2.10 Revised Component 1: 2.80 and Policy Framework Institutional and Policy Framework Component 2: Community 9.39 Revised Component 2: 14.10 based sustainable Community based 2 December 2019 Page 22 of 67 The World Bank Sustainable Natural Resources Management Project (SSNRMP3) Second Additional Financing (P169003) management of rangelands, sustainable forests and biodiversity management of rangelands, forests and biodiversity Component 3: Project 1.74 Revised Component 3: Project 2.30 Management, Monitoring Management, and Evaluation Monitoring and Evaluation TOTAL 13.23 19.20 LOAN CLOSING DATE(S) Ln/Cr/Tf Status Original Closing Current Proposed Proposed Deadline Closing(s) Closing for Withdrawal Applications TF-16134 Effective 30-Jun-2019 30-Jun-2022 30-Nov-2023 30-Jun-2022 TF-A7607 Effective 30-Jun-2022 30-Jun-2022 30-Nov-2023 30-Mar-2024 Expected Disbursements (in US$) DISBURSTBL Fiscal Year Annual Cumulative 0000 0.00 0.00 2014 138,108.33 138,108.33 2015 832,492.41 970,600.74 2016 1,295,424.87 2,266,025.61 2017 1,730,700.60 3,996,726.21 2018 1,427,516.85 5,424,243.06 2019 2,255,000.00 7,679,243.06 2020 1,852,750.00 9,531,993.06 2021 1,852,750.00 11,384,743.06 2022 1,851,324.00 13,236,067.06 2 December 2019 Page 23 of 67 The World Bank Sustainable Natural Resources Management Project (SSNRMP3) Second Additional Financing (P169003) SYSTEMATIC OPERATIONS RISK-RATING TOOL (SORT) Risk Category Latest ISR Rating Current Rating Political and Governance  Substantial  Substantial Macroeconomic  Substantial  Substantial Sector Strategies and Policies  Substantial  Moderate Technical Design of Project or Program  Substantial  Moderate Institutional Capacity for Implementation and  Substantial  Moderate Sustainability Fiduciary  Moderate  Moderate Environment and Social  Moderate  Moderate Stakeholders  Substantial  Moderate Other  Substantial  Substantial Overall  Substantial  Moderate LEGAL COVENANTS2 LEGAL COVENANTS – Sustainable Natural Resources Management Project (SSNRMP3) Second Additional Financing (P169003) Sections and Description OPS_LEGAL_CONVENANT_CHILD_NODATA No information available Conditions Type Description Effectiveness (a) the execution and delivery of the LDCF Grant Agreement on behalf of the Recipient have been duly authorized or ratified by all necessary governmental action; (b) the execution and delivery of the GEF Grant Agreement on behalf of the Recipient have been duly authorized or ratified by all necessary governmental action. 2 December 2019 Page 24 of 67 The World Bank Sustainable Natural Resources Management Project (SSNRMP3) Second Additional Financing (P169003) VIII. RESULTS FRAMEWORK AND MONITORING Results Framework COUNTRY: Sudan Sustainable Natural Resources Management Project (SSNRMP3) Second Additional Financing Project Development Objective(s) The Project Development Objective (PDO) and Global Environment Objective is “to increase the adoption of sustainable land and watermanagement practices in targeted landscapes”. Project Development Objective Indicators by Objectives/ Outcomes RESULT_FRAME_TBL_ PD O Indicator Name PBC Baseline End Target PDO and GEO "to increase the adoption of sustainable land and water management" Land area where sustainable land mgt. practices were adopted as 0.00 164,000.00 a result of proj (CRI, Hectare(Ha)) Areas brought under enhanced biodiversity protection (ha) (Hectare(Ha)) 0.00 23,400.00 Direct project beneficiaries (Number) 0.00 85,000.00 Female beneficiaries (Percentage) 0.00 35.00 Net greenhouse gas emissions (CRI, Tones/year) 0.00 16,142,426.00 The composition of female participation in the Village Development Committees (Percentage) 0.00 30.00 July 7, 2020 Page 25 of 66 The World Bank Sustainable Natural Resources Management Project (SSNRMP3) Second Additional Financing (P169003) RESULT_FRAME_TBL_ PD O Indicator Name PBC Baseline End Target Female-headed household recipients of the livelihood activities 0.00 30.00 (Percentage) PDO Table SPACE Intermediate Results Indicators by Components RESULT_FRAME_TBL_ IO Indicator Name PBC Baseline End Target Component 1: Institutional and Policy Framework Staff trained in formulation, monitoring and implementation of policies for SLWM and biodiversity conservation, of which female 0.00 160.00 (%) (Number) Percent of trainees who are female (Percentage) 0.00 30.00 Number of trainees who are female. (Number) 0.00 160.00 Staff trained in providing extension services regarding SLWM and biodiversity conservation practices (Number) 0.00 1,200.00 Number of which female (Number) 0.00 360.00 Percent of trainees who are female (Percentage) 0.00 30.00 Communication plan designed and implemented (Yes/No) No Yes Composition of female participation in the Village Development Committees (Percentage) 0.00 30.00 July 7, 2020 Page 26 of 66 The World Bank Sustainable Natural Resources Management Project (SSNRMP3) Second Additional Financing (P169003) RESULT_FRAME_TBL_ IO Indicator Name PBC Baseline End Target Component 2: Community based sustainable management of rangelands and forests and biodiversity conservation activities in targeted s tates Forest areas reforested and rehabiliated as a result of the Project 0.00 23,200.00 (Hectare(Ha)) Number of nationally-designated wildlife and/or forest sites 0.00 15.00 brought under improved biodiversity conservation (Number) Forest gazetted as a result of the Project (Hectare(Ha)) 0.00 6,000.00 Total rangeland areas to be rehabilitated by the Project (Hectare(Ha)) 0.00 19,000.00 Landscape management plans that incorporate SLWM and biodiversity conservation practices designed and starting 0.00 12.00 implementation as a result of the project (Number) Female-headed household recipients of the livelihood activities (Percentage) 0.00 30.00 Component 3: Project management, Monitoring and Evaluation M&E system functioning and providing accurate and on-time No Yes data (Yes/No) GEF tracking tools updated (SFM, Land Degradation, Biodiversity) 3.00 18.00 (Number) IO Table SPACE Monitoring & Evaluation Plan: PDO Indicators Mapped Methodology for Data Responsibility for Data Indicator Name Definition/Description Frequency Datasource Collection Collection Land area where sustainable land mgt. This indicator measures the Quarterly Project State PIU and MoEFPD July 7, 2020 Page 27 of 66 The World Bank Sustainable Natural Resources Management Project (SSNRMP3) Second Additional Financing (P169003) practices were adopted as a result of proj land area that as a result of records, the Bank project supplemented incorporated and/or by beneficiary improved sustainable land verification, management practices. GEF Tracking This indicator can track Tool (TT) progress toward sustainability at farm scale and at landscape scales within agroecological zones, watersheds, or basins. The baseline value for this indicator is expected to be zero. This is a proxy indicator that measures biodiversity protection as a result of the World Bank operation through formally Project Areas brought under enhanced converting an area into a Quarterly records, GEF PCU and SPIUs biodiversity protection (ha) protected area and TT establishing a functioning management system; or, improving the management system of an existing protected area. Direct beneficiaries are Project people or groups who records and Quarterly PCU and SPIUs Direct project beneficiaries directly derive benefits beneficiary from an intervention (i.e., verification children who benefit from July 7, 2020 Page 28 of 66 The World Bank Sustainable Natural Resources Management Project (SSNRMP3) Second Additional Financing (P169003) an immunization program; families that have a new piped water connection). Please note that this indicator requires supplemental information. Supplemental Value: Female beneficiaries (percentage). Based on the assessment and definition of direct project beneficiaries, specify what proportion of the direct project beneficiaries are female. This indicator is calculated as a percentage. Based on the assessment Project and definition of direct records and project beneficiaries, Quarterly PCU and SPIUs Female beneficiaries beneficiary specify what percentage of verification the beneficiaries are female. Impact of SSNRMP AF on GHG emissions and Annually PCU, with WB support Net greenhouse gas emissions carbon sequestration is calculated through application of July 7, 2020 Page 29 of 66 The World Bank Sustainable Natural Resources Management Project (SSNRMP3) Second Additional Financing (P169003) the FAO Ex- Ante Carbon- balance Tool (EX-ACT) Most VDCs are integrated. However, in some localities, men and women Project have separate VDCs. The reports and The composition of female participation percentage is calculated as Quarterly PCU and State PIUs beneficiary in the Village Development Committees the number of women verification participating as VDCs divided by the total number of VDC participants. This is a calculated as the number of female-headed households participating in livelihood activities divided by the total number of Project households participating in records and Female-headed household recipients of Quarterly PCU and SPIUs livelihood activities. This beneficiary the livelihood activities indicator should be verification compared to the estimated percentage of female- headed households in Sudan during the project period. ME PDO Table SPACE July 7, 2020 Page 30 of 66 The World Bank Sustainable Natural Resources Management Project (SSNRMP3) Second Additional Financing (P169003) Monitoring & Evaluation Plan: Intermediate Results Indicators Mapped Methodology for Data Responsibility for Data Indicator Name Definition/Description Frequency Datasource Collection Collection The definition of SLWM is based on TerrAfrica’s definition: the adoption of land use systems that, through appropriate management practices, enables land users to maximize the economic and social benefits from the land while maintaining or enhancing the ecological support functions of the Project Staff trained in formulation, monitoring land resources. For the records, and implementation of policies for SLWM Quarterly PCU purposes of this proposal, supplemented and biodiversity conservation, of which this definition will by beneficiary female (%) encompass other verification approaches such as integrated natural resources management (INRM), integrated water resources management (IWRM), integrated ecosystem management (IEM), eco-agriculture and SFM, and many facets of sustainable agriculture, agriculture water July 7, 2020 Page 31 of 66 The World Bank Sustainable Natural Resources Management Project (SSNRMP3) Second Additional Financing (P169003) management (AWM), biodiversity conservation and climate change adaptation, such as agroforestry. This is calculated as the number of women trained Project in formulation, monitoring, records and and implementation of Quarterly PCU and State PIUs Percent of trainees who are female beneficiary policies for SLWM and verification biodiversity conservation divided by the total number of those trained. Number of trainees who are female. Total forest areas Forest areas reforested and rehabiliated reforested and Quarterly FNC PCU and State PIUs as a result of the Project rehabilitated as a result of project activities This is measured by the timeliness and quality of the PCU Quarterly Report, Project which is expected 45 days reports, after the end of the PCU M&E officer, including M&E system functioning and providing previous quarter. This Quarterly supported by SPIU M&E beneficiary accurate and on-time data report includes a quarterly focal points participation update of the Results records Framework indicator values and a written section on Project Management and M&E. July 7, 2020 Page 32 of 66 The World Bank Sustainable Natural Resources Management Project (SSNRMP3) Second Additional Financing (P169003) This is the number of nationally designated Twice: at wildlife and/or forest sites mid-term brought under improved and at Project Number of nationally-designated wildlife biodiversity conservation. closing of records and PCU and/or forest sites brought under As there is no BD funding in parent reports, GEF improved biodiversity conservation the AF, the end target for project TT the parent project and the funding. AF is the same, i.e. there are no additional sites in the AF. Twice: at project Project mid-term, records, and at GEF TTs are to be updated including project GEF tracking tools updated (SFM, Land per GEF guidelines twice Results PCU, SPIUs, and FNC closing, for Degradation, Biodiversity) during project Framework each implementation indicators as parent inputs project as well as AF Forest gazetted as a result Quarterly FNC PCU and SPIUs of the project as measured Forest gazetted as a result of the Project in hectares This is the number of those Project Staff trained in providing extension who provide extension records and Quarterly PCU and SPIUs services regarding SLWM and biodiversity services in the selected beneficiary conservation practices States who have received verification project training. July 7, 2020 Page 33 of 66 The World Bank Sustainable Natural Resources Management Project (SSNRMP3) Second Additional Financing (P169003) Number of which female This is the number of women trained in providing Project extension services reports and Quarterly PCU and State PIUs Percent of trainees who are female regarding SLWM and beneficiary biodiversity conservation verification practices divided by the total number of trainees. Total rangeland areas Project PCU and State PIUs, Total rangeland areas to be rehabilitated Quarterly rehabilitated by the project records supported by MoENRPD by the Project as measured in hectares. Twice during the project, at Landscape management plans that This is a GEF TT indicator. MTR and incorporate SLWM and biodiversity Project The target is two landscape end-of PCU and SPIUs conservation practices designed and records, GEF management plans per project, for starting implementation as a result of the TT selected State parent project project as well as AF This is a calculated as the number of female-headed households participating in Project livelihood activities divided reports and Female-headed household recipients of Quarterly PCU and State PIUs by the total number of beneficiary the livelihood activities households participating in verification livelihood activities. This indicator should be compared to the estimated July 7, 2020 Page 34 of 66 The World Bank Sustainable Natural Resources Management Project (SSNRMP3) Second Additional Financing (P169003) percentage of female- headed households in Sudan during the project period. Updated annually, This is the stakeholder implement consultation and Communication plan designed and ation Project PCU and PIUs communication strategy, implemented reported records which is updated and on implemented continually. quarterly. Most VDCs are integrated. However, in some localities, men and women Project have separate VDCs. The records and Composition of female participation in the percentage is calculated as Quarterly PCU and State PIUs beneficiary Village Development Committees the number of women verification participating as VDCs divided by the total number of VDC participants ME IO Table SPACE July 7, 2020 Page 35 of 66 The World Bank Sustainable Natural Resources Management Project (SSNRMP3) Second Additional Financing (P169003) Annex 1: Project Description Component 1: Institutional and Policy Framework (US$700,000) 1. This component finances technical assistance, workshops, goods, services and operational costs to build or strengthen national, state and local level capacities to strengthen policy and regulatory frameworks, remove critical knowledge barriers, and develop an enabling environment for the on-the- ground activities. The project design hinges on improving the vertical and lateral coordination from the federal to the local community levels and between the various government, non-government and community players. The project design will also address the sustainability concerns providing tailored solutions. Component 1 supports: 2. Institutional capacity building. The project supports key institutions involved in NRM by strengthening their capacity to formulate, implement and monitor programs and projects in this area. The capacity development program is flexible and modular. Institutional, technical, and administrative training needs are determined through consultative mechanisms at all levels. The project provides institutional support to the MANR, Forest National Corporation (FNC), Range and Pasture Administration (RPA): (i) develop effective interagency collaboration mechanisms at the central and state level; (ii) assist communities in preparing and implementing investments under integrated land management plans; and (iii) manage, monitor, and maintain infrastructures by VDCs. 3. Information and knowledge management. The project has drawn the MANR and FNC much closer together at the central and state levels. Lessons of implementation are to be disseminated through regular events (in country) and through South-South knowledge exchanges in the Horn of Africa Region; knowledge exchange happens through IGAD Drought Resilience Initiative regional platform. The project supports the Pressure State, Impact Response analysis of land and biodiversity degradation, including assessment of land management practices. The project will support efforts of the government to improve the quality and delivery of weather and climate information. To this end, close collaboration will be established with Meteorological Authority and Food Security Early Warning System in the Ministry of Agriculture. Project activities will address such barriers and challenges as inefficient information exchange, limited products, services and decision-making tools for climate-resilient development across sectors. The project will also develop a training action plan for inclusion in the capacity assessment of project's stakeholders to be updated for Phase 3. These activities will be monitored through a dedicated indicator “Direct beneficiaries from the new/improved climate information systems”. 4. A communication plan will be developed within the first six months after project’s effectiveness and implemented throughout project life to disseminate information on project results and lessons learned to key stakeholders. SSNRMP receives support from the Building Resilience through Innovation, Communication, and Knowledge Services (BRICKS) Project (P130888) in strategic communication and contribute to knowledge exchange initiatives benefiting project implementation, within the TerrAfrica platform and other exchange initiatives. 5. Malaria. Although there are global models of climate change which predict changes in malarial incidence spatially and temporally in Sudan, there are no studies based on available local data. Therefore, an AF activity will include a call for proposals to national universities to underwrite locally relevant studies. July 7, 2020 Page 36 of 66 The World Bank Sustainable Natural Resources Management Project (SSNRMP3) Second Additional Financing (P169003) The call will focus on identifying and explaining current and future changes in conditions for malaria incidence, how irrigation and water harvesting facilities can be protected from becoming larvae breeding grounds for mosquitos, and other relevant topics in the malaria – climate change – water management nexus as well as gender impacts of malaria. The project will facilitate the discussion of their findings with governmental agencies, international organizations and recognized experts in order to identify actionable recommendations. A synopsis of these studies, to include potential policy response measures and practical steps to address climate-induced diseases through sustainable NRM, will be disseminated. The AF RF includes a dedicated indicator to reflect on the progress of this activity. Component 2: Community-based Sustainable Management of Rangelands, Forests, and Biodiversity (US$4,696,073) 6. This component works on incorporating innovative technologies in community-based sustainable NRM from the menu of interventions that would match socio-economic and physical conditions of specific localities. Subcomponents include (a) addressing climate change impacts on water resources and agriculture by promoting innovative climate-smart NRM technologies and (b) alleviating negative impacts of environmental degradation and climate change on human health. 7. Rangeland management. Given the importance of livestock in Sudan and its impact on land degradation, sustainable rangeland management activities related to husbandry and livestock are crucial. Activities include establishment of shelter belts for sand dune fixation, demarcation of animal migration routes and grazing land rotations, establishment of nurseries for rangeland rehabilitation, clearing and opening of fire lines to protect rangelands. Community level project activities may include rehabilitation and cultivation in open spaces and seeding rangelands to improve range condition with fodder grasses. 8. Integrated land management plans. The project will support the preparation of NRM plans for the gazetted Om Seraig reserve in the Butana area in the Central Gadarif locality of Gadarif State, Sharg Elneel locality (Sayal Elfaki Saad Area); a forest Reserve and shelterbelt in Khartoum. 9. Protection and use of water resources. SSNRMP designed a collaborative management system between communities and the water authorities, where communities manage the operation of the water structure and the State Water Corporation provides technical back-stopping. The project design will take into account concerns for integrated water resources management. Community level project activities may include rehabilitation of existing hafirs and water sources, using other water harvesting techniques to utilize the water from wadis and khors (seasonal streams). Even though the rainwater harvesting structures hold a small amount of water, due diligence will be applied to make sure rainwater would not be blocked from flowing down stream. Groundwater recharge capacity will be assessed before operations are put in place. 10. Forest ecosystem rehabilitation and restoration. In Khartoum State, the project will gazette and rehabilitate 3,750 ha of the Sharg Elneel Forest Reserve & Khartoum shelterbelt, while in Gadarif State, 12,000 ha of the gazetted Om Seraig reserve in the Butana area will be rehabilitated. Proposed sites can support many of the original small mammals, birds, reptiles, and diverse flora species of the Sahel biome. The project is expected to indirectly benefit biodiversity conservation through the gazetting of forest reserves, restoration of native vegetation by reforestation, enrichment planting, natural regeneration and effective implementation of management plans. July 7, 2020 Page 37 of 66 The World Bank Sustainable Natural Resources Management Project (SSNRMP3) Second Additional Financing (P169003) 11. Strengthening resilience of communities through establishing multiple water harvesting structures, including with the application of greenhouse gas (GHG) technologies (solar panels), strengthening the asset base of rural farmers including natural and financial capital, increasing the diversity of smallholder farming systems through the promotion of mixed cropping-livestock systems and diversification of crops; enhancing household food security and wellbeing through the introduction and improvement of home gardens; promoting equity and inclusion of vulnerable and marginal groups especially women; enhancing local institutions through support to VDCs; diversifying access to alternative sources of energy, and improving the availability of/and smallholder access to climate information. Phase 3 will explore the demand for biogas technologies, which convert biological waste into energy. In addition to having a clean renewable energy provide gas for household needs, many families make extensive use of the fertilizer by-product that biogas digesters provide. 12. Engaging the private sector. Since the beginning of SSNRMP, the project has linked public agencies, private sector and financial institutions through workshops, conferences and trainings to exchange perspectives and understand the role of private and public actors in community resilience activities. Component 1’s focus on regulatory frameworks and policies has facilitated market entry of climate resilience technologies. Some of these include: (i) solar panels to replace diesel pumps for remote village communities; (ii) gas cylinders to replace firewood for village cooking; (iii) non-forest product marketing to reduce transactional costs to market; and (iv) a piloting of biogas technology in SSNRMP3. The introduction of environmentally sound technologies is encouraging communities to establish further micro-finance capacities and the local private sector to further invest in commercializing these same technologies. Private sector engagement in the context of this project will relate to exploring the potential for adopting clean energy technologies and plan for empowering the role of private sector in climate- resilient interventions; that is, SLWM by developing the capacity of the relevant groups, individuals, and companies to implement their natural resources enterprises in a sustainable manner. One of the main responsibilities of the SLM consultant, who will be hired under SSNRMP phase 2, is to identify opportunities for private sector participation and partnership in SLM interventions in the targeted areas, to apply and incorporate them as relevant in the implementation of phase 3. The project will support participation of entrepreneurs in solutions that increase resilience to climate change impacts. The main challenges in this area include limited opportunities for entrepreneurship, lack of enabling environments to devise solutions to address climate change, and limited support for climate innovation activities. To address these gaps, the project will create partnerships with the relevant authorities to open opportunities for entrepreneurship, especially for youth and women, through training and adoption, open sources of financing and benefit from the opportunities of the Sudanese microfinance law. These activities will be monitored through a dedicated indicator “Entrepreneurs supported to enhance climate resilience”. Finally, recommendations from a private sector study carried out under the REDD+ Readiness project will provide useful insights for consultations with beneficiary communities to help derive priority climate- resilient project activities. The study maps all the major companies in the private sector that are engaged in natural resources activities. This will support the project to identify potential partners and the strategic options for involvement, particularly companies that showed interest and/ or willingness to engage in interventions that promote environmental sustainability. 13. Development of locality extension approaches based on incentive structures established for supporting and promoting SLWM. Capacity of new extension agents will be built through training in (i) appropriate SLWM technologies and current extension approaches and (ii) in best technologies for root and tuber crops. Existing training materials have been revised to incorporate lessons learnt during July 7, 2020 Page 38 of 66 The World Bank Sustainable Natural Resources Management Project (SSNRMP3) Second Additional Financing (P169003) previous project support. An incentive system for extension staff based on performance assessment has been developed and implemented, to promote excellence of extension support. Study tours to countries with relevant SLWM experiences and local study tours to best SLWM practice sites will continue to be supported. The key elements of the extension approach are: (a) establishment of demonstration plots for select SLWM technologies in target communities, and (b) supporting formation of farmer groups or individuals interested in applying similar technologies. 14. Adoption of community-based SLWM practices. This component also finances technical assistance, training, investments, goods, works, services and operational costs related to the promotion of wider adoption of community-based SLWM practices in forests and rangelands in the targeted communities. Local communities will acquire the capacity to effectively participate in selection of rangeland activities, negotiation of access to grazing grounds, setting the guidelines for formation of local organization and associations (cooperatives) around specific NRM livelihood initiatives. Component 3: Project Management, Monitoring and Evaluation (US$ 540,000) 15. Project management. The MANR is the IA for the project. Support is provided for day-to-day project implementation and management including procurement, FM, environmental and social safeguards aspects, preparation of annual work plans and organization of supervision missions. The component provides support for office operating costs including annual audit costs and supervision missions. 16. M&E. Under this component, support is provided for an M&E system tracking the expected project’s results. AF resources will finance the monitoring of the scale up activities in LD and Climate Change adaptation focal areas. The M&E system established for the project coordinates with the SAWAP Program so that key indicators are aggregated from the country level to the regional Sahel level. An M&E expert in the PCU coordinates and aggregates monitoring and reporting from M&E Officers in the SPIUs. LDCF tracking tools will be completed at baseline, mid-term and completion. July 7, 2020 Page 39 of 66 The World Bank Sustainable Natural Resources Management Project (SSNRMP3) Second Additional Financing (P169003) Annex 2: Implementation Arrangements 1. The institutional structure for the project continues to be based on two interrelated levels of arrangements - the governance/advisory level and the implementation level. These arrangements promote both adequate coordination mechanisms at the federal levels and efficient implementation at state and locality levels of all activities through empowering the targeted communities and the different stakeholders according to their respective mandates and competences. Coordination focused on policies’ reform and institutional capacity building should remain at the federal level, most of the project activities carried out need to be addressed at the state and local level. 2. The Inter-ministerial PNSC is expected to continue providing strategic guidance to the SSNRMP. The PNSC is chaired by the Minister of MANR supported by the State Minister of National Council of Environment acting as deputy chairpersons. The committee meets twice a year; the PCU acts as a secretary and contributes on technical and operational issues to these meetings. The main functions of the PNSC mandate include the following: (a) provide policy guidance and define the project orientations; (b) review and clear the annual technical and financial reports and annual work plans and budgets. 3. The Technical Committee (TC) represents all relevant stakeholders and is chaired by the Focal Point of Sudan GGWI, with the National Project Coordinator as Secretary. It is supported by technical staff of FNC; the Administration of Wildlife and of RPA at the federal level; representatives from each state; and any additional technical expertise as found necessary by the IA. The main objective of the TC is to work closely with the central PCU during project implementation and offer advice to ensure that the project activities are technically sound. The TC will meet quarterly to discuss work plans and implementation progress. 4. The MANR has overall responsibility for the project’s implementation. Through MoU, certain specialized functions will be provided by partner organizations, the RPA, and the FNC. The PIM has been updated for Phase 3. 5. At the federal level, the PCU is responsible for carrying out the daily activities, overall supervision and coordination of the project implementation at all levels. It reports to the PNSC and is supported by relevant staff from the existing government officials, hired consultants and others. The PCU is based in the MANR. The PCU is composed of a project coordinator, M&E expert, procurement officer and finance officer (accountant), environmental and social safeguards specialist and is supplemented by technical consultants as necessary. 6. At the state and community level, the SPIUs work closely with all the stakeholders during project implementation. The SPIUs report directly to the PCU. The composition of these SPIUs is tailored for each of the selected states based on the nature of project activities. These units draw on technical, administrative and financial staff and are supported by a project state M&E coordinator. Each SPIU includes an M&E expert, extension workers and services responsible for planning and coordination in collaboration with stakeholders. As needed, the SPIUs call on the services of technical consultants. 7. The project works with existing VDCs at the State level to liaison with the larger communities. Where needed, the project mobilizes support and capacity building around VDCs that are not functioning effectively. July 7, 2020 Page 40 of 66 The World Bank Sustainable Natural Resources Management Project (SSNRMP3) Second Additional Financing (P169003) Financial Management 8. An assessment has been conducted to determine whether the MANR has acceptable FM arrangements, which can ensure that (a) the project funds are used only for the intended purposes in an efficient and economical way; (b) the preparation of accurate, reliable and timely periodic financial reports; and (c) the safeguarding of the project’s assets. The FM arrangements discussed below satisfy the World Bank minimum requirements under World Bank Investment Project Financing (IPF) Policy and Directive and can provide, with reasonable assurance, accurate and timely information on the progress of project implementation. 9. The assessment envisaged the capacity of the MANR to use its own administrative, operational procedures and staff to implement the project, with some external support, if needed. The Ministry has acceptable FM arrangements in place. Financial management arrangements such as staffing, budgeting, accounting, internal controls and internal auditing, financial reporting and auditing will be replicated from the previous phases of SSNRMP. Funds Flows and Disbursement Arrangements 10. Designated Account. A DA in Euro currency will be opened at the CBS to receive GEF and LDCF funding to be released by Bank. The DA will be replenished by the World Bank on the basis of withdrawal applications (WAs) supported by relevant documents. The Ceiling of the DA will correspond to the one set in the disbursement letter. The MANR will be responsible for submitting WAs for replenishment, at least monthly. 11. Sub Accounts. The project will maintain a bank account in local currency in each of the states in which the project operates, provided it is within the agreed ceiling. Payments from the sub-accounts can be replenished as disbursements occur and proper supporting documents are filed. The Recipient is responsible for bearing all risks associated with foreign exchange fluctuations when making transfers from the DA that is denominated in Euros to the sub-account denominated in local currency. At the end of the project, any unused balances in both the DA and the sub-accounts will be refunded back to the World Bank. 12. Counterpart Contribution. No counterpart contribution is budgeted in estimating the project costs. Thus, all project expenses would be covered from the GEF and LDCF grant funds. Any additional expenses that may arise, which were not budgeted for, will have to be absorbed by the GoS. 13. Disbursement Methods. The proceeds of the Grant will be disbursed in accordance with the disbursement procedures of the World Bank and will be used to finance project activities through the disbursement procedures currently used: that is, Direct Payment, Advances, Reimbursement and Special Commitment. Replenishment and reimbursement WAs will be accompanied by Statement of Expenditures (SoEs) and Statements of expenditure Subject to Prior review (SoPs) in accordance with the procedures described in the Disbursement Letter and the World Bank's "Disbursement Guidelines". Interim Unaudited Financial Reports and Annual Financial Statements will be used as a financial reporting mechanism and not for disbursement purposes. The minimum application size for direct payment, reimbursement and special commitment will be the equivalent of 20 percent of the Advance ceiling amount. The World Bank will honor eligible expenditures completed, services rendered and delivered by July 7, 2020 Page 41 of 66 The World Bank Sustainable Natural Resources Management Project (SSNRMP3) Second Additional Financing (P169003) the Project closing date. A four months' grace period will be granted to allow for the payment of any eligible expenditure incurred before the Grant Closing Date and for the final audit. Table 2.1. Project Procurement Categories Percentage of Amount of the Additional Expenditures to Be Category Grant Allocated (US$) Financed (inclusive of Taxes) Goods, Operating Costs, Training, works, non- 5,936,073 100% consulting services, and consultants’ services, including audits TOTAL AMOUNT 5,936,073 14. Reporting on the Use of Grant Proceeds. The project will submit bank statements and a reconciliation of the DA together with the WA on a monthly basis or more frequently depending on the project’s need for funds. For payments above the threshold indicated in the disbursement letter for each disbursement category, the MANR will submit a list of payments with records evidencing eligible expenditures (for example, copies of contracts, invoices, and payment evidence). For payments below the threshold, the MANR will submit SOEs listing the detailed payments made without attaching the supporting records. All supporting documentation for SOEs will be retained at the MANR and must be made available for review by the World Bank implementation support mission, Monitoring Agent (if any) and auditors (internal and external) on request. 15. Statement of Expenditures (SoEs). Necessary supporting documents will be sent to the World Bank in connection with contracts subject to prior review or above the SOE thresholds, except for expenditures under Contracts with an estimated value of (a) US$300,000 or less for works, (b) US$200,000 for goods, (c) US$100,000 or less for Consulting Firms, and (d) US$50,000 or less for Individual Consultants, as well as incremental operating costs and training, which will be claimed on the basis of SOEs. 16. Supervision Plan. This is a decentralized project which will be implemented in Khartoum and Gadarif by the MANR. The World Bank’s supervision will be intensive during the project implementation to ensure that the funds are used for the intended purposes and also to provide support as needed. During the first year, three supervision missions will be carried out to support the project implementation then adjust the supervision frequency in the second year depending on the risk assessment then. These supervisions efforts will comprise IFR reviews, audit reports reviews, field visits and assessment of internal controls. The outcome of supervision will feed into identifying weakness areas and work out relevant action plans in agreement with the project coordinator. Procurement 17. The arrangements for procurement for the AF fall under the new World Bank New Procurement Framework (NPF) approved in July 2016, providing Regulations for Borrowers applicable to IPF July 2016 as amended November 2017. The AF now includes PPSD, and PCU has already adopted STEP system. The primary risk identified in the PPSD is the use of the NPF. The objective of procurement under the proposed SSNRMP is to ensure timely and efficient availability of goods, works, consulting, and non-consulting services in line with the approved Procurement Plan and in compliance with the Procurement Regulation July 7, 2020 Page 42 of 66 The World Bank Sustainable Natural Resources Management Project (SSNRMP3) Second Additional Financing (P169003) for IPF Borrowers of the World Bank, while building in-house capacity for procurement and contract management. Mitigation of this risk will be through providing training to all procurement staff, with a focus on capacity strengthening in the new AF states. 18. Procurement will be carried out in accordance with the “Guidelines: Selection and Employment of Consultants under IBRD Loans and IDA Credits & Grants by World Bank Borrowers” dated January 2011 and the “Guidelines on Preventing and Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA Credits and Grants (revised as of July 1, 2016)”. Procurement through National Competitive Bidding (NCB) shall follow procedures acceptable to the World Bank including the use of national SBDs prepared to the satisfaction of the World Bank and issued in the Arabic language. 19. All the procurements for Component 1 and 3 and part of Component 2, will be done by the PCU located in the MANR. Bulk of procurement of Component 2 shall be conducted by the two SPIUs. The community (VDCs) is expected to make small procurement of local goods under the sub-grants to the communities. Component-Specific Procurement 20. Component 1: Institutional and Policy Framework. The procurement involved is mainly the consultancy services of firm and individual consultants. Besides this procurement of vehicles and office equipment by following procurement procedures (including shopping) is envisaged. 21. Component 2: Community-based Sustainable Management of Rangelands, Forests, and Biodiversity. Under this component the bulk of procurement will be done by the SPIUs which will mainly include shopping of goods and works. The community would also make some very small procurement of small goods following shopping procedure. Wherever justified they may resort to direct contracting in line with World Bank guidelines. 22. Component 3: Project Management, Monitoring and Evaluation. Under this component procurement of individual consultants for PCU and SPIUs are envisaged. Procurement and Selection Methods 23. Procurement of goods, works and non-consulting services will utilize methods such as International Competitive Bidding (ICB), NCB, and Procurement from UN Agencies, Community Participation, Shopping and Direct Contracting. Selection of consultants will follow Quality and Cost-based Selection (QCBS), Quality-based Selection (QBS), Selection based on Consultants’ Qualification (CQS), Least-cost Selection (LCS), Fixed Budget Selection (FBS), Selection of Individual Consultants and Single- source Selection (SSS). 24. Workshops, conference attendance and study tours will be carried out on the basis of approved annual/semi-annual work plans that would identify the general framework of training or similar activities, including the nature of training/study tours/workshops, number of participants, and estimated cost. 25. Operating costs, excluding salaries, bonuses, and fees for government civil servants, would be incurred using procedures acceptable to the World Bank. July 7, 2020 Page 43 of 66 The World Bank Sustainable Natural Resources Management Project (SSNRMP3) Second Additional Financing (P169003) 26. The Borrower has developed the Procurement Plan for the first eighteen months of AF project implementation, which was cleared on February 20, 2020. The procurement plan consists of the procurement methods or consultant selection methods, the need for pre-qualification, estimated costs, as well as prior review requirements. The procurement plan will be updated at least annually, or more frequently as required, to reflect the actual project implementation needs and improvements in institutional capacity. 27. Threshold for each method of Procurement/Selection and for Prior Review. The recommended methods of procurement/selection and the prior review thresholds for the project would be as given below. The World Bank’s prior review requirements are stated in Appendix 1 to the Guidelines for Procurement and Appendix 1 to Guidelines for Selection and Employments of the Consultants. All ToRs regardless of contract amount shall be subject to the World Bank’s prior review. Procurement of Goods, Works and Non-Consulting Services Table 2.2. Procurement and Thresholds for Goods, Works and Non-Consulting Services Procurement Method Threshold (US$) Comment 1. ICB (Works) 500,000.00 Equivalent or more 2. ICB (Goods and non-consulting services) 500,000.00 Equivalent or more 3. NCB (Works) 500,000.00 Less than 4. NCB (Goods and non-consulting services) 500,000.00 Less than 5. Request for quotation - NS (Works) 100,000.00 Equivalent or less 6. Request for quotation - NS (Goods and non- 100,000.00 Equivalent or less consulting services) 7 Direct contracting Any value 8 Procurement from UN agencies Any value Table 2.3. Prior Review Thresholds for Goods, Works, and Non-Consulting Services Procurement Method Prior Review Threshold (US$) Comments 1. ICB (Goods, Works and Non-Consultant All Contracts Services) 2. NCB (Goods and Non-consulting services) Equivalent or more than The first contract under 500,000 each category will also be subject to prior review. 3. NCB (Works) Equivalent or more than The first contract will also 500,000 be subject to prior review. 4 Direct Contracting (Goods, Works and All Contracts dealt by PCU and Non-Consultant Services) above US$1,000 for contracts dealt by SPIUs and community. 5 UN Agencies All contracts 6 Request for quotation – NS (Goods, 100,000.00 or Less All shopping –Request for Works and Non-consulting services) Quotations (RFQ)-NS of goods and works shall be subject to post review except the first one in each category. July 7, 2020 Page 44 of 66 The World Bank Sustainable Natural Resources Management Project (SSNRMP3) Second Additional Financing (P169003) Procurement Method Prior Review Threshold (US$) Comments 7 Community Participation in Procurement 100,000.00 or Less All contracts are expected to be of small value under shopping category – RFQ – (NS). However, for direct contracting, threshold indicated at (4) above will be applicable. Selection of Consultants Table 2.4. Selection Methods and Thresholds for Consultants Threshold Selection Method Comments (US$) 1. QCBS, QBS, FBS, LCS Any value Selection Method will depend on nature and complexity of assignment. 2. CQS 500,000.00 Equivalent or less 3 Individual consultant Any value 4 SSS Any value Table 2.5. Prior Review Threshold for Consultants Selection Method Prior Review Threshold (US$) Comments 1. Competitive Methods 200,000.00 Equivalent or (Firms) more 2. Individual consultant 100,000.00 Equivalent or selection more 3 Single Source Any Value (Firms)/Individuals 28. Short list comprising entirely of national consultants. Short lists of consultants for Engineering and Contract Supervision assignment estimated to cost equal or less than US$200,000 equivalent and for all other consultancy assignments estimated to cost equal or less than US$100,000 equivalent per contract, may comprise entirely of national consultants in accordance with the provisions of paragraph 2.7 of the Consultant Guidelines. 29. Frequency of procurement supervision. The World Bank will conduct an annual post review of a sample of 20 percent of all post review contracts finalized under the project by PCU and SPIUs. For the procurement conducted by the communities, post review of the contracts shall be done by the agency engaged to audit the project. The sample size of the procurement review shall be agreed by the World Bank at the beginning of the exercise, which shall be based on the total number of the contracts done over the period of the review. However, the World Bank team will also play a role in quality control and undertake sample spot checking to enhance the outcome of the annual independent review. Monitoring and Evaluation July 7, 2020 Page 45 of 66 The World Bank Sustainable Natural Resources Management Project (SSNRMP3) Second Additional Financing (P169003) 30. The M&E system will continue to be a result-based framework, conceived as a management tool. The M&E system: (i) assesses implementation performance in relation to the expected project outcomes, outputs and budget; (ii) proactively identifies implementation challenges and taking corrective actions in a timely manner; and (iii) documents lessons learned and incorporating them into decision making on project implementation and sustainability. The system also incorporates monitoring the accomplishments of the targets as established under the GEF/LDCF objectives. 31. The project M&E will be linked to the regional M&E system established for the SAWAP portfolio, through BRICKS,10 which integrates M&E results from the Sudan project into the SAWAP portfolio. The project also provides participatory training and expert support to the PCU and SPIUs on the application of M&E tools in relation to measuring biophysical change and carbon flux in land use and management systems implemented. 32. To monitor project performance, the PCU, SPIUs and other participants will collect project-specific data. SPIUs are responsible for providing periodic monitoring data, to be then analyzed by the M&E specialist. Data is disaggregated to facilitate assessment according to gender and target vulnerable groups. The project uses information and communication tools to involve communities to report their own data. M&E reports, including environmental and social monitoring results, are prepared quarterly at the state levels and semi-annually at the federal level. The quarterly reports are shared among the SPIUs, the TC and other key stakeholders. The semi-annual reports are circulated to the PNSC and development partners. 33. The joint World Bank-GoS semi-annual implementation support missions will assess the status of key project outcomes and update legal covenant compliance. An MTR will be conducted two years after effectiveness to assess the project midway through implementation. Upon completion of the GEF/LDCF operation, the World Bank will review the results and prepare the implementation completion report. This will be submitted no later than six months after project closure. Under the AF, the project will provide additional resources for this component strengthening the M&E and coordination across the various states in close collaboration with the BRICKS project. BRICKS improves accessibility of best practices and monitoring information within the SAWAP portfolio on integrated 10 management of natural resources, climate change and natural disasters. July 7, 2020 Page 46 of 66 The World Bank Sustainable Natural Resources Management Project (SSNRMP3) Second Additional Financing (P169003) Annex 3: Summary of Changes in the Results Framework Phase 2 Phase 3 Phase 3 Original Cumulative Cumulative Specific Revisions for Original Outcome/Output Indicator Target Target Target Target Phase 3 (P129156) (P161304) (P169003) (P169003) PDO: To increase the adoption of sustainable land No change and water management (SLWM) practices in targeted landscapes. PDO/CRI Indicator 1. Land area where sustainable 104,000 164,000 221,000 57,000 Revised land management practices were adopted as a result of project (ha) PDO Indicator 2. Areas brought under enhanced 17,400 23,400 23,400 NA No activity under biodiversity protection (ha) Phase 3 PDO Indicator 3. Direct project beneficiaries 50,000 85,000 110,000 25,00011 Revised (number of people), of which female (%) (35%) (35%) (40%) (45%) Intermediate indicators Component 1: Institutional and Policy Framework IR Indicator 1.1. Staff trained in formulation, 100 160 280 80 Revised monitoring and implementation of policies for (30%) (30%) (40%) (50%) SLWM and biodiversity conservation (number of people), of which women (%). IR Indicator 1.2. Staff trained in providing 1,000 1,200 1,500 300 Revised extension services regarding SLWM and (30%) (30%) (50%) (50%) biodiversity conservation practices (number of people), of which women (%) IR Indicator 1.3. Communication plan designed Yes Yes Yes Yes No change and implemented (Yes/No) IR Indicator 1.4. Composition of female No 30 45 45 Revised participation in the Village Development Committees (%) IR Indicator 1.5. Malaria studies conducted and NA NA Yes Yes New indicator their findings disseminated among stakeholders in Sudan – Yes/No. IR Indicator 1.6. Direct beneficiaries from the NA NA 8,750 8,750 New indicator new/improved climate information systems IR sub-indicator 1.6.1. Of which share of women NA NA 50 50 New indicator (%) Component 2: Community-based Sustainable Management of Rangelands, Forests, and Biodiversity IR Indicator 2.1. Forest areas reforested and 17,400 23,200 39,150 15,950 Revised rehabilitated as a result of the project (ha) IR Indicator 2.2. Number of nationally-designated 15 28 28 NA No activity under wildlife and/or forest sites brought under Phase 3 improved biodiversity conservation (%) IR Indicator 2.3. Forest gazetted as a result of the 2,400 6,000 11,700 5,700 Revised 11For LDCF reasoning purposes, Annex 6 provides the LDCF specific core targets which are based on consolidation of beneficiaries from other activities in the project. During project implementation of the capacity building and planning activities the project expects to impact more beneficiaries. July 7, 2020 Page 47 of 66 The World Bank Sustainable Natural Resources Management Project (SSNRMP3) Second Additional Financing (P169003) Phase 2 Phase 3 Phase 3 Original Cumulative Cumulative Specific Revisions for Original Outcome/Output Indicator Target Target Target Target Phase 3 (P129156) (P161304) (P169003) (P169003) project (ha) IR Indicator 2.4. Total rangeland areas to be 10,000 19,000 25,000 6,000 Revised rehabilitated by the project (ha) IR Indicator 2.5. Landscape management plans 7 12 18 6 Revised that incorporate SLWM and biodiversity conservation practices designed and starting implementation as a result of the project (number of plans) IR Indicator 2.6. Female-headed household NA 30 18 18 Revised recipients of the livelihood activities (%) IR indicator 2.7. Farmers adopting improved NA 5,000 6,000 1,000 Revised agricultural technology (number) IR sub-indicator 2.7.1. Of which share of women NA NA 40 50 Revised (%) IR indicator 2.8. Net greenhouse gas emissions NA 16,142,426/ 16,142,426/ NA No activity under (tons over 20 years/tons per ha over 20 years) 269 269 Phase 3 IR indicator 2.9. Direct beneficiaries with NA NA 5,700 5,700 New indicator diversified and strengthened livelihoods and sources of income (number) IR sub-indicator 2.9.1. Of which share of women NA NA 50 50 New indicator (%) IR indicator 2.10. Entrepreneurs supported to NA NA 5,700 5,700 New indicator enhance climate resilience (number) IR sub-indicator 2.10.1. Of which share of women NA NA 30 30 New indicator (%) Component 3: Project Management, Monitoring and Evaluation IR Indicator 3.1. M&E system functioning and Yes Yes Yes Yes No change providing accurate and on-time data (Yes/No) IR Indicator 3.2 GEF tracking tools updated 9 9 9 NA No activity under (Sustainable Forestry Management [SFM], LD, Phase 3 Biodiversity) (number of tools) IR Indicator 3.3 Beneficiaries who participated in NA NA 7,350 7,350 New indicator planning, implementation, monitoring, evaluation of landscape management activities July 7, 2020 Page 48 of 66 The World Bank Sustainable Natural Resources Management Project (SSNRMP3) Second Additional Financing (P169003) Annex 4: Yearly Progress in Meeting SSNRMP Objectives Data Responsibilit Baseline Indicator Cor Unit of Frequenc Cumulative Target Values Source/Methodolo y for Data Name e Measure y gy Collection 2015 2016 2017 2018 2019 2020 2021 2022 2023 Land area Ha 0 0 22,500 45,000 87,500 111,000 161,000 186,000 211,000 221,000 Annual Project records, SPIU and under supplemented by MANR sustainable beneficiary landscape verification, manageme GEF/LDCF Tracking nt practices Tool (TT) (ha) Areas Ha 0 0 3750 9500 14750 20,687 20,687 20,687 20,687 23,400 Annual Project Records, SPIUs brought GEF TT/LDCF TT under enhanced biodiversity protection12 Direct Number 0 10 20 30 40 50 60.0 75.0 85 110 Annual Project records, PCU and project (thousan (35%) (45%) and beneficiary SPIUs beneficiarie d) and% verification s (number), of which female (40%)13 Intermediate Results Indicators Component 1: Institutional and Policy Framework Responsi Data bility for Frequenc 2015 2016 2017 2018 2019 2020 2021 2022 2023 Source/Me Data y thodology Collectio n 12Includes 15,000 hectares in Gezira and 2400 hectares in Kassala. Since biodiversity activities are not funded under Stage 2 and Stage 3, these targets remain unchanged. 13Tentative, to be determined in first year of implementation, though specific survey of villages and beneficiaries. Population density is uneven in select sites, and census data is not fully reliable. July 7, 2020 Page 49 of 66 The World Bank Sustainable Natural Resources Management Project (SSNRMP3) Second Additional Financing (P169003) 1.1 Staff trained in 0 25 50 75 170 200 230 250 280 (40%) Annual Project PCU formulation, monitoring (30%) records, and implementation of supplement policies for SLWM and ed by biodiversity beneficiary conservation(number), of verification which female (%) 1.2. Staff and community 0 100 250 500 1,164 1,264 1,364 1,450 1,500 Annual Project PCU leaders trained in (40%) (50%) records, providing extension supplement services regarding SLWM ed by and biodiversity beneficiary conservation practices verification (number), of which female (%). 1.3. Communication plan Draft Stake- Communic Communic Communic Update Update Update Update Annual Project PCU designed and communic holder ation ation ation Communic Communic Communic Communic records implemented (Yes/No) ation plan Consultati Strategy in Strategy in Strategy in ation ation ation ation on and use use use Strategy Strategy Strategy Strategy Communic ation Strategy 1.4. Composition of 0 19.4% 44% 46.3% 46.3% 45.3% 45.3% 45.3% 45% Annual Project SPIUs female participation in records the Village Development Committees (%) 1.5. Malaria studies Yes Annual Project PCU conducted and their records findings disseminated among stakeholders in Sudan (Yes/No) 1.6. Direct beneficiaries 8,750 Annual Project PCU from the new/improved records climate information systems 1.6.1. Of which share of 50 Annual Project PCU women (%) records July 7, 2020 Page 50 of 66 The World Bank Sustainable Natural Resources Management Project (SSNRMP3) Second Additional Financing (P169003) Component 2: Community-based Sustainable Management of Rangelands, Forests, and Biodiversity Responsibility Data 2015 2016 2017 2018 2019 2020 2021 2022 2023 Frequency for Data Source/Methodology Collection 2.1. Forest areas reforested and 0 3750 9500 14750 20,687 25,837 30,987 35,068 39,150 Annual Project records, GEF TT SPIU with FNC rehabilitated as a result of the project (ha) 2.2. Number of nationally- 15 28 28 28 28 28 Twice: At Project records and SPIU and FNC designated wildlife and/or forest mid-term reports, GEF TT sites brought under improved and biodiversity conservation (%) closing 2.3. Forest gazetted as a result of 2400 2400 6,300 9,400 11,700 11,700 Annual Project records SPIU and FNC the project (ha) 2.4. Total rangeland areas to be 0 2,000 5,000 8,000 9,300 13,800 17,800 21,800 25,000 Annual Project records SPIU, MoA rehabilitated by the project (ha) 2.5. Landscape management plans 0 1 4 6 9 12 14 16 18 Annual Project records, GEF TT SPIU that incorporate SLWM and biodiversity conservation practices designed and starting implementation as a result of the project (number) 2.6. Female-headed household 0 2.2% 11% 13.5.% 13.5% 14.4% 15.3% 16.8% 18% recipients of the livelihood activities (%) 2.7. Farmers adopting improved 0 856 1,251 2,000 2,000 4,000 5,000 6,000 6,000 agricultural technology (number) 2.7.1. Of which percentage of 0 8% 20% 25% 25% 30% 33% 36% 40% women (%) 2.8. Net greenhouse gas emissions 16,142,426/ 16,142,426/ (tons over 20 years/tons per ha 269 269 over 20 years) 2.9. Direct beneficiaries with 5,700 diversified and strengthened livelihoods and sources of income (number) 2.9.1. Of which share of women 30 July 7, 2020 Page 51 of 66 The World Bank Sustainable Natural Resources Management Project (SSNRMP3) Second Additional Financing (P169003) (%) 2.10. Entrepreneurs supported to 5,700 enhance climate resilience (number) 2.10.1. Of which share of women 30 (%) Component 3: Project Management, Monitoring and Evaluation Responsibility Data Source/ 2015 2016 2017 2018 2019 2020 2021 2022 2023 Frequency for Data Methodology Collection 3.1. M&E system Yes Yes Yes Yes Yes, final Annual Project records PCU functioning and providing midterm data accurate and on-time data data Yes/No 3.2 GEF tracking tools 6 12 9 9 9 Twice at Project records PCU, FNC, updated (SFM, LD, mid-term SPIU Biodiversity and LDCF TT) and closing Number 3.3 Beneficiaries who 0 950 1,440 2,952 3,150 4,350 5,250 7,350 7,350 participated in planning, implementation, monitoring, evaluation of landscape management activities Number Indicator Name Description (indicator definition and so on) (a) The definition of SLWM is based on TerrAfrica’s definition: the adoption of land use systems that, through appropriate management practices, enables land users to maximize the economic and social benefits from the land while maintaining or enhancing the ecological support functions of the land resources. For the purposes of this proposal, this definition will encompass other approaches such as integrated natural resources management, integrated water resources management, IEM, eco- agriculture and SFM, and many facets of sustainable agriculture, AWM, biodiversity conservation and climate change adaptation, such as agroforestry. (b) Improved biodiversity conservation in the protected areas: Interview-based score as measured by the GEF Protected Area Management Effectiveness Tracking Tool. This indicator will be measured for two Protected Areas. (c) Areas brought under enhanced biodiversity protection (ha): Verifies a functioning management system that includes a management plan and the capacity and resources to implement the plan with a view to achieving the area’s biodiversity protection goals; this is envisaged to be an indication of enhanced biodiversity protection. July 7, 2020 Page 52 of 66 The World Bank Sustainable Natural Resources Management Project (SSNRMP3) Second Additional Financing (P169003) (d) Land area where SLM practices have been adopted as a result of the project: Demonstrates the impact of project on SLM practices in the project area, which is key for assuring biodiversity conservation in the productive landscape. July 7, 2020 Page 53 of 66 The World Bank Sustainable Natural Resources Management Project (SSNRMP3) Second Additional Financing (P169003) Annex 5: Ecosystem and Stakeholder Profile of New Target Areas under the AF Context of Vulnerability 1. Most of land in Sudan is quite vulnerable to change in temperature and precipitation. The country's inherent vulnerability may best be captured by the fact that food security is mainly determined by rainfall, particularly in the rural areas where more than 65 percent of the population lives. Rainfall is erratic and varies significantly from the North to the South. The unreliable nature of rainfall together with its concentration during the short growing season increases the vulnerability of the rain-fed agricultural system. A trend of decreasing annual rainfall in the last 60 years (0.5 percent) and increased rainfall variability is contributing to drought conditions in many parts of the country. As a result, there is significant impact on natural resources, sustainable livelihoods and Sudan’s ability to develop sustainably in line with the 2030 Agenda for SDGs. 2. Similarly, the increase in temperature is particularly noted in rainfed agriculture, aquaculture, natural ecology systems and biodiversity, water resources, and energy (production and consumption), impacting the vulnerability of communities. Mean annual temperature lies between 26º to 32º but in some places it reaches 47º C causing a lot of stresses and heat related diseases. There is cited evidence for changes in mean temperature, which are projected to increase by up to 3°C by 2050, and precipitation, which is projected to increase by 4 percent per decade.14 3. Communities that are most vulnerable to droughts and floods are pastoralists, poor farmers, and generally poor families with senior members, children, and women (Sayed and Abdala 2013). 15 As seen in the schematic, there is a clear connection between climate change and agricultural productivity and these are directly linked to the four climate stressors – temperature increase, rainfall variability, droughts, and floods. The NAPA16 also clearly links Sudan’s increased vulnerability to resource mismanagement; increased cultivation; fragile land and water resources; poor soil fertility; deforestation; natural resource conflicts; poor extension services; lack of income diversity; community displacement, and poor sanitation and health services. 4. The project as designed will promote innovative climate-smart technologies to systematically leverage Sudan’s environment and natural resources to maximize finance for development, including testing and demonstrating climate-smart agriculture and water technologies that enhance livelihoods, reduce environmental degradation and support mitigation of climate risks in unison. Small innovations have been incorporated through assisting Sudan in studying how irrigation and water harvesting facilities can be protected from becoming larvae breeding grounds for mosquitos – including approaches to combat the spread of climate-induced vector-borne diseases. Overall the project interventions focus on targeted fragile and climate vulnerable landscapes. 14 USAID (United States Agency for International Development). 2016. Climate Change Risk in Sudan: Country Fact Sheet. Washington, DC: USAID. 15 Sayed, M.A. and B. Abdala. 2013. Sudan Environmental and Climate Change Assessment. ECCA No. 3226-SD Rome: International Fund for Agricultural Development (IFAD) 16 https://www4.unfccc.int/sites/NAPC/Documents%20NAP/National%20Reports/Sudan%20NAP.pdf July 7, 2020 Page 54 of 66 The World Bank Sustainable Natural Resources Management Project (SSNRMP3) Second Additional Financing (P169003) Figure 5.1. Climate Stressors and Their Potential Impact on Sectors, Areas, and Communities in Sudan 5. The proposed AF project will implement activities in two new states: Khartoum and Gadarif. Targeted states share common ecological and socio-economic conditions. Fluctuation in rainfalls, land degradation, decline in productivity, and reduction in biodiversity, accompanied by socioeconomic problems in addition to climate change are challenges that all the eight states included in the project share. 6. The new project areas were selected based on their relevance to the GGWI’s17 belt in Sudan. They possess the potential for SLWM challenges, within the NAP recommended measures for those areas/regions. These areas are now seriously affected by deforestation and land degradation due to people movement, migration and displacement attributed to climate change and man-made stresses on natural resources. 7. Khartoum and Gadarif are both in the semi-arid Butana area. Khartoum lies in the central part of the GGWI, whereas Gadarif state lies in the southern part of the GGWI. The country’s GGWI strategy is to cover all states affected by desertification. Communities living in the GGWI belt are amongst the most vulnerable to climatic shocks. Furthermore, these areas are now seriously affected by deforestation and 17 This belt passes through 11 States of the Sudan Federal system. July 7, 2020 Page 55 of 66 The World Bank Sustainable Natural Resources Management Project (SSNRMP3) Second Additional Financing (P169003) land degradation due to intense pressure from human activities and internal displacement attributed to climate change. 8. The following selection criteria have been followed: (a) areas with reserved forests along with potential for integration with rangeland management, (b) areas where the annual rainfall is below or near 450 mm, and (c) communities interested and willing to participate in SSNRMP subprojects. The selection was generated from stakeholder consultation process carried out by SSNRMP team. Khartoum State 9. Khartoum State is the most densely populated state – according to some estimates constituting up to 1/3 of the 42 million population of Sudan. Khartoum, the national capital of Sudan, and Omdurman, the country's second largest city by population, are located in this state. The cities are located at the confluence of the White Nile and the Blue Nile, where the two rivers unite to form the River Nile. As these two cities form the most economically advanced areas of the country, the Khartoum state is the destination for internal economy driven migration and the displaced Sudanese. Consequently, according to the accounts from governmental institutions, the state contains vast pockets of impoverished population. Another factor that contributed to the selection of Khartoum is the need to support the establishment of the Green Belt in this state, initiated by the GoS. 10. The northern part of the state is mostly desert receiving barely any rainfall, while other regions have semi-desert climates. The weather is rainy in the fall, and cold and dry in the winter. During the rainy season, from July to September, Khartoum receives between 110 and 200 mm of rainfall on average. Dust storms are regular occurrences and river fluctuations threaten riverbank erosion and flooding.18 Rapid urban growth combined with rising temperatures, rainfall variability, and river fluctuations have placed serious pressure on Khartoum’s resources. 11. This state has been selected by the client through an interactive and inclusive process to help scale-up the interventions for further replication. Khartoum State falls within the Great Green Wall of SSA and due to the climate induced displacement, many vulnerable communities took refuge and have voluntarily resettled in camps around the city’s outskirts. The provision of safe and clean drinking water is a challenge. Even more challenging is the deterioration of the health environment that leads to disease outbreaks especially malaria. These issues are expected to further intensify in severity due to the impacts of climate change. 12. Major climate change adaptation initiatives needed in Khartoum, as per the country’s official NAP, include:  Agriculture: cultivation of early maturing crop varieties, research activities on drought- resistant seed varieties, and awareness-raising among farmers.  Water: capacity strengthening, adoption of water saving irrigation techniques, integrated water planning, awareness-raising among farmers about climate change. 18 Khartoum State NAP Committee 2013 July 7, 2020 Page 56 of 66 The World Bank Sustainable Natural Resources Management Project (SSNRMP3) Second Additional Financing (P169003)  Public health: ensuring adequate treatment supplies for vector-borne diseases and improving health awareness among rural communities.  Urban areas: development of a comprehensive strategy for mitigation of health impacts in urban areas, transportation planning, and community participation in addressing urban environmental issues. Gadarif State 13. Gadarif has an area of 75,263 km² and an estimated population of approximately 1.7 million (2018). Following the agriculture, livestock rearing is the second most practiced economic activity. Livestock rearing carries different forms, namely, traditional seasonal transhumant, village livestock raising and, as a recent activity, livestock raising by large-scale mechanized merchant-farmers who are investing surplus wealth in sheep and cattle. Collecting and trading in forest products and charcoal burning are other traditional forms of economic activities. Thus, people derive their livelihood income from a mixture of combinations of the three main forms of land-use: agriculture, grazing, and forest utilization. 14. Gadarif vegetation including trees and grasses are dependent on climatic factors particularly rainfall. The seasonal short grasses and scattered thorn trees are available at the northern parts and increase in central parts with appearance of poor savanna plants further south of these areas. At the southern parts, tall grasses, Acacia, Balanites and Hashab are dominant representing rich savanna zone. 15. The area is characterized by a unimodal rainfall season most of which primarily occurs from June to September and controlled by the nature of the Inter-Tropical Convergence Zone. The annual rainfall in the area ranges between less than 300 mm in the North to more than 800 mm in the South. Increasing rainfall variability, rising temperatures, and decreasing average rainfall are already affecting Gadarif’s agricultural economy, 90 percent of which is rain-fed, leading to serious implications for local food security. Crop data analysis indicates 25 percent decrease in sorghum production following 20 percent reduction in annual rainfall between 1981 and 2008. Also, significant vegetation cover over the past few decades severely reduced ability of Gadarif state to produce gum Arabic.19 16. Major adaptation initiatives needed in Gadarif, as per the country’s official NAP (2016), include:  Agriculture: introducing practices that reflect the ecological zones. In the northern part of the state, measures focus on land set-asides for grazing and animal production only. In the semi-arid southern part of the state, measures focus on the introduction of animals into agricultural rotations and the cultivation of sorghum alongside other crops for animal production. Across entire state, improved plant and animal breeds should be introduced, early warning systems should be put in place, as well as capacity building and awareness raising programs developed.  Forests: implementing legislation, planting trees inside reserved forests, and cultivating courses of seasonal streams with trees and annuals to prevent soil deterioration. 19 Gadarif State NAP Committee 2013. July 7, 2020 Page 57 of 66 The World Bank Sustainable Natural Resources Management Project (SSNRMP3) Second Additional Financing (P169003) Stakeholder Consultations: Localities, Activities, Beneficiaries 17. PCU conducted consultations with main stakeholders during field visits and held desk review of relevant sources. In Gadarif, consultations involved 53 officials of which 14 were women, in Khartoum State – 44 officials of which 3 were women. A summary table with information about all project stakeholders is presented at the end of this Annex. 18. The counterparts in Gadarif and Khartoum supported the proposed Additional Financing concept and specific interventions, especially related to malaria control. They confirmed that these interventions will have positive impact on the environment and natural resources in general through rehabilitation of forests, rangelands and community livelihoods activities. They emphasized the importance of integration implying that dealing with NRM cannot ignore anybody and should be inclusive. 19. Stakeholders in Gadarif pointed that the state has great economic potential thanks to natural resources in different climatic zones with diversified forests. At the same time, due to the encroachment of mechanized farming they underscored the necessity of rehabilitation and restoration of forests and rangelands. Gadarif has a lot of livestock and most forests can be used as rangelands and for nomadic settlements. However, local communities raised concerns about herders’ respect for the demarcated livestock migration routes. In Gadarif, shelterbelts are used in rain-fed agriculture as livestock routes to mitigate potential conflicts between pastoralists and farmers. 20. Central Gadarif locality and the proposed Om Serag Reserve Forest were selected in Gadarif State because of their accessibility, good communications coverage and strong willingness to participate in the project. In Gadarif State, the northern part represents the rangelands and the southern part is suitable for agricultural activities with limited livestock routes facilitating the movement between two parts. In Gadarif, SSNRMP will intervene in the Central Gadarif locality which is an area in the southern part of Butana. It is characterized by annual rainfall between 200 and 400 mm in Omat Remaila cluster of villages. The forest cover degraded in Gadarif due to accelerating increase in the population which created continuous demands for forests and rangelands. Soil is degraded due to excessive and irrational use for agriculture. 21. The Sharg Elneel locality and the proposed Sayal Elfaki Saad Reserve Forest were selected in Khartoum State because of the need for forests and rangelands rehabilitation raised by the government and communities. Sharg Elneel locality is an area laid in the northern part of Butana in the Sayal Elfaki Saad cluster of villages nearby the Khartoum shelterbelt in Ombada locality. The forest and rangelands cover are diminishing due to encroachment of investment projects and the impact of climate variability that affects the annual rainfall in the area. In Sherg Elneel, communities made a great effort in protecting and managing the adjacent reserved forests. However, they raised their concerns about encroachment of traditional agriculture and large-scale investors and thus also expressed their needs to rehabilitate the forests as they depend on them. 22. In both states, the proposed target population are mainly pastoralists (Gadarif) or agro- pastoralists (Khartoum). Focus is also on vulnerable groups including women who are given less opportunities in the different social aspects such as education and access to land. Women are usually taking care of their families during the dry period when men move livestock southward for pasture and water. Women are responsible for collecting water and firewood. The degradation of adjacent July 7, 2020 Page 58 of 66 The World Bank Sustainable Natural Resources Management Project (SSNRMP3) Second Additional Financing (P169003) forests/rangelands puts additional burden on target communities’ life as they must walk longer distances to south Gadarif for pasture where the possibility of conflict with sedentary farmers is high, or, as in the case of Khartoum, it affects the life of the population directly because they depend mostly on the fragile ecosystems in the arid and semi-zones of Sudan. 23. The consultations confirmed the need to emphasize community driven NRM to ensure protection and sustainability in the long run. Being mainly pastoralists dependent on forests as main sources of fodder for livestock, communities expressed interest in participating in NRM and underscored the importance of provision of basic services such as water points, literacy classes beside clean energy sources, including solar for lighting and water harvesting. The role of women in the community and importance of giving them opportunities in livelihoods activities has also been recognized. 24. In Khartoum State, project activities will support range and pasture development in Sharg Elneel locality (Sayal Elfaki Saad area). Establishing water harvesting structures and improving water management will be essential for enrichment planting and natural resources regeneration in the new project areas and, therefore, instrumental to increasing the resilience of the rural communities. Community level project activities may include rehabilitation of existing hafirs20 and water sources, using other water harvesting techniques to utilize the water from wadis and khors (seasonal streams). Even though the rainwater harvesting structures hold a small amount of water, due diligence will be applied to make sure rainwater would not be blocked from flowing down stream. Groundwater recharge capacity will be assessed before operations are put in place. The project will support the preparation of NRM plans for the gazetted Om Seraig reserve in the Butana area in the Central Gadarif. In addition, the proposed AF will support the Khartoum Green Belt Project which is being implemented by the Khartoum Higher Council of Environment, Urban and Rural Promotion (HCE). The AF will cover an area of 50 ha from the overall planned area of the Khartoum Green Belt Project. The support will include land preparation, trees plantation, introduction of water harvesting techniques, and livelihood activities aiming to scale- up the model to other states. These activities will be important to contribute to offsetting negative effects from climate induced migration that tends to adversely affect natural resources and environment. In addition, both states are expected to benefit from anti-malaria studies supported by this project. Table 5.1. Summary Table with Information about All Project Stakeholders Stakeholder Roles and Responsibilities Ministry of Finance (MoF) MoF signs a grant agreement with the World Bank and an on-granting agreement with the MANR to enable project implementation. MoF reviews and approves project documents. As a PNSC member, MoF oversees project implementation with other stakeholders. It reviews and considers policy recommendations on future national grassland conservation programs. Ministry of Agriculture The MANR oversees project implementation, supervises the project jointly with other and Natural Resources stakeholders. It reviews and considers policy recommendations of the project on (MANR) future national and state level NRM programs. Leads the Steering Committee and TC at national and state level. Higher Council for Serves as GEF focal point to determine country priorities for GEF funding. Oversees Environment and Natural the compliance of the projects with international and national environmental Resources (HCENR) regulations. 20A hafir is an artificially constructed water catchment basin with a circular earthen wall and diameters of between 70-250 m and heights of up to 7 m. July 7, 2020 Page 59 of 66 The World Bank Sustainable Natural Resources Management Project (SSNRMP3) Second Additional Financing (P169003) Stakeholder Roles and Responsibilities National Council for Oversees and coordinates climate change projects. As the formerly SSNRMP host Environmental (NCE) ministry, NCE was closely involved in project preparation of Phases 1 and 2. World Bank Administers GEF and LDCF grants and supervises SSNRMP on behalf of the donor, avails technical support on regular basis. Participates in the PNSC as observer. Great Green Wall Supports the SSNRMP through BRICKS in term of capacity building in different fields, Initiative (GGWI) while promoting among the donors a potential NRM project. Khartoum state Higher Coordinate with SSNRMP activities at the state level, members of state steering Council for Environment committees. and Rural Promotion Gadarif state, and Higher Council for Environment and Natural Resources Ministry of Production Overseeing SSNRMP implementation, funding and stakeholders at the state level, and Economic Resources MPER actively participates in project preparation. A PNSC member, MPER provides (MPER) necessary technical support and reviews policy recommendations of the project on future provincial grassland conservation programs. Forests National As the lead agency for forestry in Sudan, FNC works closely with the MANR and other Corporation (FNC) stakeholders on project implementation. FNC has state branches ensuring close cooperation with all state stakeholders. At the state level, FNC is responsible for executing project’s forestry interventions. General Directorate of As members of the PNSC, national and state representatives oversee project Range and Pasture implementation, providing state RPAs with technical support. Wildlife General As members of the PNSC, national and state representatives oversee project Administration implementation, providing state RPAs with technical support. State Water Corporation Supervises the water supply interventions at state level. SSNRMP has corresponding (SWC) MOUs with SWC. Extension and Technology As part of MPER department, it provides technical support to technical packages for Transfer (ETT) agricultural extensions. Village Development VDCs are at the heart of the project and are closely considered during the project Committees (VDCs) preparation. They are educated to carry out project promoted grassland management practices. They represent SSNRMP and are responsible for supervising and implementing project interventions at the community level. VDCs are the corner stone of SSNRMP sustainability. Relevant National and Research institutes actively participate in project preparation. They also provide State Agricultural technical advice and inputs to ensure proper implementation of project activities. Research Institutions They help summarize and disseminate project results at the national and international levels. NGOs SSNRMP consults with NGOs on similar NRM programs at national and state level. In addition to learning experience from those programs, SSNRMP explores potential cooperation opportunities with this and other NGOs during project implementation. CSOs Member of PNSC, they provide necessary support in environmental field. Specifically, they coordinate with SSNRMP various international days and events. Private sector Provide and support SSNRMP with necessary civil works, goods and consultancies. UN Agencies and Coordination, networking and platforms for sharing experiences and knowledge Development Projects management in NRM practices. July 7, 2020 Page 60 of 66 The World Bank Sustainable Natural Resources Management Project (SSNRMP3) Second Additional Financing (P169003) Annex 6: Additional and Incremental Reasoning for LDCF/GEF Resources 1. The proposed project contributes to the Climate Change Adaptation (CCA) objectives “Reduce vulnerability and increase resilience through innovation and technology transfer for climate change adaptation” (CCA-1) and “Mainstream climate change adaptation and resilience for systemic impact” (CCA-2). In addition, the project contributes to Land Degradation (LD) Focal Area objectives “Maintain or improve flow of agroecosystem services to sustain food production and livelihoods through Sustainable Land Management” (LD-1-1) and “Reduce pressures on natural resources from competing land uses in the wider landscape” (LD-1-4) 2. This AF addresses CCA and LD challenges in Khartoum and Gadarif States by promoting a landscape approach to natural resources management. In addition, development of locality extension approaches based on incentive structures will be established. The key elements of the extension approach are: (a) establishment of demonstration plots for select SLWM technologies in target communities, and (b) supporting formation of farmer groups or individuals interested in applying similar technologies. In Khartoum State, the project will gazette and rehabilitate Sharg Elneel Forest Reserve & Khartoum shelterbelt, while in Gadarif State the Om Seraig reserve in the Butana area will be rehabilitated. The project will expand efforts in the two new states to strengthen select policy and regulatory frameworks, remove critical knowledge barriers, and develop institutional capacities to add to the ongoing program focus, thus creating a stronger enabling environment for the on-the ground activities in these two new states. 3. LDCF/GEF resources add value to achieve global environmental benefits with a focus on enhancing climate resilience. Specifically, through (i) facilitating a variety of good SLWM practices (such as soil conservation techniques, crop and rangeland management, agroforestry practices, water harvesting to meet domestic, including basic hygiene, needs and improved livestock management activities), (ii) strengthening the asset base of rural farmers including natural and financial capital, (iii) increasing the diversity of smallholder farming systems through the promotion of mixed cropping- livestock systems and diversification of crops, (iv) enhancing household food security and wellbeing through the introduction and improvement of home gardens; (v) promoting equity and inclusion of vulnerable and marginal groups especially women; (vi) diversifying access to alternative sources of energy (solar panels), and (vii) improving the availability of/and smallholder access to climate information. Significantly therefore the project contributes to CCA and LD objectives in the following ways:  CCA-1: Project activities on increasing resilience through innovation and technology transfer as laid out in Annex 1, Component 2, in “Strengthening resilience of communities” and “Engaging the private sector” paragraphs.  CCA-2: Project activities on mainstreaming climate change adaptation and resilience for systemic impact as laid out in Annex 1, Component 1 in “Information and Communication Plan” and Component 2, “Strengthening resilience of communities” paragraphs.  LD-1-1: Project activities on maintaining or improving flow of agroecosystem services to sustain food production and livelihoods through SLM as laid out in Annex 1, Component 2 in “Development of locality extension approaches” and “Adoption of community-based SLWM practices” paragraphs. July 7, 2020 Page 61 of 66 The World Bank Sustainable Natural Resources Management Project (SSNRMP3) Second Additional Financing (P169003)  LD-1-4: Project activities on reducing pressures on natural resources from competing land uses and increasing resilience in the wider landscape as laid out in Annex 1, Component 2, in “Rangeland management”, “Protection and use of water resources”, and “Forest ecosystem rehabilitation and restoration” paragraphs. 4. The SSNRMP is the baseline ongoing project and will continue its activities which will be scaled up through the AF. Phase 3 will be co-financed by a US$3.0 million equivalent in-kind contribution from the State of Khartoum, US$600,000 – from the federal Ministry of Finance meant for both states and from IFAD’s Sustainable Natural Resource and Livelihood program which allocates US$7 million in each of the project’s states.21 The total sum of associated co-financing for GEF incremental purposes constitutes US$17.6 million. 5. The GEF/LDCF alternative comes at a time of political transition in Sudan. It solidifies a partnership based around long-term economic and sustainable development goals with environmental considerations. GEF/LDCF support helps expand to new states the institutional capacity to support local SLWM development in a manner that is participatory and community-based helping address underlying roots of conflict. The project consists of three components: (a) Component 1: Institutional and Policy Framework; (b) Component 2: Community-based Sustainable Management of Rangelands, Forests, and Biodiversity; (c) Component 3: Project management, Monitoring and Evaluation. 6. Component 1: Institutional and Policy Framework. The project finances activities to strengthen policy and regulatory frameworks for SLWM, remove critical knowledge barriers, and develop institutional capacities in key forestry and wildlife, land management and range and pasture sectors, creating an enabling environmental for the on-the ground activities. With GEF/LDCF funding, Sudan can address key gaps in its institutional and legislative framework and re-establish ecosystem services in productive landscapes, rangelands and forested areas. The GEF/LDCF support ensures that relevant national policy framework is grounded in local experience from Component 2. Portion of funds will be directed to support studies of malaria impacts in Sudan and ways to counter the disease. 7. Component 2: Community based sustainable management of rangelands, forests and biodiversity. The project promotes wider adoption of community-based SLWM practices in forests and rangelands in the targeted communities. In addition, the investments are integrated within ecosystem and land management plans to be designed, developed and implemented by the project. Sustainable plans of PAs and buffer zones and supporting activities ensure that agricultural productivity and livestock management are pursued sustainably in the context of these forest reserves. The GEF increment ensures that funds from GEF focal areas incorporate appropriate management and sustainable technologies, and community and government capacity building. With the LDCF support, selected communities and sites would strengthen their resilience in facing the prospects of continued deteriorating desertification, sand dune movement, land and rangeland degradation, deforestation and increasingly devastating floods. 8. The project is expected to enhance resilience to climatic impacts that increasingly affect the livelihoods of the most vulnerable communities in the following ways: 21 These funds will support activities of the IFAD project. July 7, 2020 Page 62 of 66 The World Bank Sustainable Natural Resources Management Project (SSNRMP3) Second Additional Financing (P169003)  The gazetting of additional forest and rangeland areas will help protect the existing native woodland, savanna, and grassland habitats.  The restoration of native vegetation—through reforestation (with local and indigenous species), enrichment planting, natural regeneration, sand dune stabilization, and effective management plans to ensure that grazing and wood collection activities are sustainable—is expected to create and enhance the habitats for many wild species. Rehabilitating ecosystems is expected to create suitable conditions for the return of wildlife.  An increase in both forest cover and quality should create and/or increase ecological niches for ecologically important species. 9. Component 3: Project management, monitoring and evaluation. The component will support the project’s management, M&E as well as communication activities. GEF/LDCF funds will enable the project and the MANR to manage its support and incorporate monitoring and knowledge sharing related to SLWM. It will build on mechanisms in measurement of environmental degradation from related projects regarding monitoring, such as the Rehabilitation Program of the Nabag Forest, which found that remotely sensed data together with field data were useful and effective in estimation of forest volume parameter in Sudan. Linkage to Core indicators: 10. The Phase 3 design aligns with the LDCF core indicators. (a) Number of direct beneficiaries (gender-segregated, M/F) – 52,500 (at least 45 percent female), including 25,000 due to SLM practices, climate information services – 8,750, diversified livelihoods – 5,700, supported private entrepreneurs - 5,700, CE participants – 7,350. Cumulatively for three SSNRMP phases – 137,500 direct beneficiaries, of them females 58,435 or 43 percent. (b) Number of hectares of land under climate-resilient management: See table below for the numbers. The project takes a holistic and integrated natural resources management approach to link and climate change adaptation activities in support of combating land degradation in the target sites. Therefore, disaggregating the beneficiates by each TF would defeat the purpose of a holistic approach on the ground. The targets sites benefit from both SLM and adaptation measures in SLM. Table 6.1. Project Core Indicators and Targets Project Core Indicators Phase 3 Targets 1 Terrestrial protected areas created or under improved management for NA conservation and sustainable use (Hectares) 2 Marine protected areas created or under improved management for conservation NA and sustainable use (Hectares) 3 Area of land restored (Hectares) 27,650 4 Area of landscapes under improved practices (excluding protected areas) 57,000 (Hectares) July 7, 2020 Page 63 of 66 The World Bank Sustainable Natural Resources Management Project (SSNRMP3) Second Additional Financing (P169003) Project Core Indicators Phase 3 Targets 5 Area of marine habitat under improved practices (excluding protected areas) NA (Hectares) Total area under improved management (Hectares) NA 6 Greenhouse Gas Emissions Mitigated (metric tons of CO2e) NA 7 Number of shared water ecosystems (fresh or marine) under new or improved NA cooperative management 8 Globally over-exploited marine fisheries moved to more sustainable levels (metric NA tons) 9 Reduction, disposal/destruction, phase out, elimination and avoidance of chemicals of global concern and their waste in the environment and in processes, NA materials and products (metric tons of toxic chemicals reduced) 10 Reduction, avoidance of emissions of POPs to air from point and non-point NA sources (grams of toxic equivalent gTEQ) 11 Number of direct beneficiaries disaggregated by gender as co-benefit of GEF See LDCF TT investment July 7, 2020 Page 64 of 66 The World Bank Sustainable Natural Resources Management Project (SSNRMP3) Second Additional Financing (P169003) Annex 7: Map of the SSNRMP Activities July 7, 2020 Page 65 of 66 The World Bank Sustainable Natural Resources Management Project (SSNRMP3) Second Additional Financing (P169003) Annex 8: Theory of Change PDO and Global Environment Assumptions: Vulnerable communities can cope with Objective is “to increase the - peaceful transition continues the adverse impacts of climate change adoption of sustainable land and while halting land degradation water management practices in - COVID related restrictions are lifted targeted landscapes” The resilience of poor communities is Drivers of land degradation and strengthened and their vulnerability to the desertification in project areas are adverse impacts of climate change reduced, and addressed and Land Degradation Sudan’s efforts to enhance adaptive capacity Neutrality is promoted. supported. Vulnerability is reduced and Agro-ecosystem services are Climate change adaptation and Pressures on natural resources from resilience increased through maintained or improved to sustain resilience are mainstreamed into competing land uses are reduced and innovation and technology food production and livelihoods policy and planning for systemic resilience in the wider landscape transfer for climate change through sustainable land impact increased. adaptation management Sudan Sustainable Natural Resources Monitoring and Evaluation Management Project (SSNRMP3) Second Additional Financing 27,650 hectares Sustainability efforts of land and forests restored Establish and/or rehabilitate seasonal water harvesting and storage and gazetted facilities Rehabilitate degraded grasslands and rangelands using innovative locally tested land techniques Introduce small-scale irrigation infrastructure supported by high- efficiency off-grid solar PV Cumullatively Establish demonstration farms to showcase climate resilient 57,000 hectares farming, shelterbelts, and high economic value trees Establish boreholes upon assessment of local groundwater recharge of landscapes Promote alternative climate-resilient livelihoods for the most capabilities under improved vulnerable communities practices Develop management and zoning plans for grazing and Improve fodder production for livelihoods and to avoid conflicts over rangeland areas resources Establish range enclosures/ranches to increase resilience of Establish women cooperatives for knowledge sharing, joint marketing vulnerable communities and seed bank storage 25,000 direct Pilot initiatives to engage private sector in project activities as a pathway to beneficiaries sustainability Study innovative approaches to counter malaria throuhg Sudan-centric (at least 45% studies, informing decision makers and stakeholders about their women) findings and recommendations