The World Bank Implementation Status & Results Report Forests for Prosperity Project (P170798) Forests for Prosperity Project (P170798) SOUTH ASIA | Nepal | Environment, Natural Resources & the Blue Economy Global Practice | Recipient Executed Activities | Investment Project Financing | FY 2021 | Seq No: 8 | ARCHIVED on 02-May-2024 | ISR60461 | Implementing Agencies: Ministry of Finance, Ministry of Forests and Environment Key Dates Key Project Dates Bank Approval Date: 08-Jul-2020 Effectiveness Date: 16-Jul-2021 Planned Mid Term Review Date: 25-Jan-2024 Actual Mid-Term Review Date: 25-Mar-2024 Original Closing Date: 30-Sep-2025 Revised Closing Date: 30-Sep-2025 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective (PDO) is to improve sustainable forest management; increase benefits from forests and contribute to net Greenhouse Gas Emission (GHG) reductions in selected municipalities in Province 2 and Province 5 in Nepal. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Policy & capacity building support for new government structures and processes for sustainable forest management:(Cost $2.90 M) Community-based sustainable forest management and smallholder forest plantations:(Cost $10.76 M) Forest enterprise improvement and development:(Cost $7.35 M) Project management, monitoring and learning:(Cost $2.99 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions The Forests for Prosperity Project fully aligns with the federalism structure, and it involves the three-tier of the Government. It is anchored in the success of Nepal’s Community Forestry and creates a new, innovative way of developing forest-based enterprises. This project is closely monitored by the Ministry of Forests and Environment (MOFE) and is one of the champions expected to lead innovation and private-sector development. Since the last review, the project has built on the implementation progress made in the previous fiscal year and resolved the major constraints impeding the project’s execution. Notably, the issue of amendment of the Subsidiary Loan Agreement (SLA) between the Public Debt Management Office (PDMO) and the Agricultural Development Bank Limited (ADBL) that delayed Component 3’s implementation by more than two years has been resolved. The Component Implementation Manual (CIM) has been approved by the Ministry of Finance (MoF. The project has 6/20/2024 Page 1 of 8 The World Bank Implementation Status & Results Report Forests for Prosperity Project (P170798) advanced activities of Components 1 and 2 and completed key preparatory work to carry out the on-ground activities of Component 3. The project has advanced to the full-fledged implementation phase. The World Bank Task Team acknowledges the Borrower's commitment, efforts, and responsiveness, which have been demonstrated at senior leadership and technical levels in expediting the project implementation. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Substantial Substantial Substantial Macroeconomic Substantial Substantial Substantial Sector Strategies and Policies Moderate Substantial Substantial Technical Design of Project or Program Substantial Substantial Substantial Institutional Capacity for Implementation and Substantial Substantial Substantial Sustainability Fiduciary High High High Environment and Social Substantial Substantial Substantial Stakeholders Moderate Moderate Moderate Other -- Substantial Substantial Overall Substantial Substantial Substantial Results PDO Indicators by Objectives / Outcomes to improve SFM; increase benefits from forests and contribute to net GHG emssion reductions IN01418592 ►People in targeted forest and adjacent communities with increased monetary or non-monetary benefits from forests (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 88,413.00 110,000.00 Date 13-May-2020 07-Dec-2023 08-Apr-2024 13-May-2026 This indicator includes all paid work attributable to the sustainable forest management including plantations and in forest-based enterprises. Data will be disaggregated by gender and disadvantaged Comments: group. IN01418593 6/20/2024 Page 2 of 8 The World Bank Implementation Status & Results Report Forests for Prosperity Project (P170798) ►Net GHG emissions reduced (Metric ton, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 17,740,000.00 Date 13-May-2020 07-Dec-2023 08-May-2024 13-May-2026 This includes sequestration through improved forest condition and tree planting on non-forest lands and emissions reduction from reduced forest degradation. This indicator will be measured once at the end of Comments: the project. IN01418594 ►Share of project beneficiaries with rating “Satisfied’ or above on project interventions (livelihoods, forest management, other) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 80.00 Date 13-May-2020 07-Dec-2023 08-Apr-2024 13-May-2026 This indicator measures the level of satisfaction of targeted forest-dependent people on project interventions (livelihoods, forest management, other). Data will be dis-aggregated by gender and Comments: disadvantaged group. The The survey required to report the satisfaction with project interventions) will be designed and completed by April 30, 2024. IN01418595 ►Forest area brought under management plans (Hectare(Ha), Corporate) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 6,604.41 7,214.00 15,900.00 Date 13-May-2020 07-Dec-2023 08-Apr-2024 13-May-2026 This refers to the total area of forests brought under sustainable forest management plans. The project has formed 7 new Community Forest User Groups (CFUGs) and renewed the operational plans of 38 Comments: CFUGs. Intermediate Results Indicators by Components 1 - Policy and Capacity Building for Federal Structures & Processes IN01418606 ►Policy and regulatory reforms supported at federal, state and municipal levels supporting SFM (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 7.00 31.00 50.00 Date 13-May-2020 07-Dec-2023 08-Apr-2024 13-May-2026 This indicator applies a wide definition to cover all policies, acts, regulations, directives, guidelines, protocols, and standards relevant to SFM and FBEs coming from all levels of government (Federal, Comments: Provincial, Local). It tracks not just new policies/regulations but also existing policies/regulations that have been revised to promote sustainable and productive forest management and FBEs. The indicator is 6/20/2024 Page 3 of 8 The World Bank Implementation Status & Results Report Forests for Prosperity Project (P170798) disaggregated by government level. Out of 50 project municipalities, 25 have finalized and gazetted local-level forest act and/or procedures, public and private land plantation manuals and grant manuals through the project’s support which are crucial to implement municipal-level forest-sector activities as per the 2019 Forest Act and 2022 Forest Regulation. IN01418610 ►Local governments with approved land-use plans and/or strategic forest sector plans (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 50.00 Date 13-May-2020 07-Dec-2023 08-Apr-2024 13-May-2026 This indicator records the number of municipalities/rural municipalities that have prepared land-use plans and longer-term strategic plans for the forest sector. The project organized orientations on the land use Comments: classification and land use planning for the project municipalities and they are in the process of formulating land use plans as per the 2022 Land Use Regulation. IN01418614 ►Awareness of the federal forest sector structure (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 0.00 Date 13-May-2020 07-Dec-2023 08-Apr-2024 13-May-2026 This indicator assesses the extent to which stakeholders in the forest sector are aware and implementing Comments: their new roles and responsibilities under the federal system – the extent to which sector reforms have taken place and been institutionalized. The indicator is measured as a score. IN01418617 ►Quality of services provided by local government to communities and forest-based enterprises (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 80.00 Date 13-May-2020 07-Dec-2023 08-Apr-2024 13-May-2026 This indicator will measure the client satisfaction of the services provided to communities and forest-based Comments: enterprises . 2 - Community-based sustainable forest management and forest plantations IN01418607 ►Forest area under CBFM (Hectare(Ha), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 530,000.00 530,825.00 531,748.96 545,000.00 Date 13-May-2020 07-Dec-2023 08-Apr-2024 13-May-2026 The total area for which new sustainable forest management plans have been prepared and are being implemented according to the agreed timber harvesting prescriptions. It includes plans for all types of Comments: CBFM including Community Forest, Collaborative Forest Management, and Leasehold Forest and includes newly established and existing CBFM groups for which revised plans have been prepared. The 6/20/2024 Page 4 of 8 The World Bank Implementation Status & Results Report Forests for Prosperity Project (P170798) project has formed 7 new Community Forest Users Groups (CFUGs) and brought 1,748.96 hectares of national forest under sustainable forest management plans. IN01418611 ►Poor households with land allocation inside CBFM areas (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 650.00 Date 13-May-2020 07-Dec-2023 08-Apr-2024 13-May-2026 This indicator records the number of poor or disadvantaged households for which specific provision has Comments: been made in CFUG operational plans. Data will be dis-aggregated by disadvantaged group and female/male household. IN01418615 ►Private smallholder plantations area (Hectare(Ha), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 13.55 13.55 5,000.00 Date 13-May-2020 07-Dec-2023 08-Apr-2024 13-May-2026 This indicator records the area of private (non-forest) land that has been supported by the project for tree planting and/or agroforestry (normally underutilized or abandoned agricultural land or land owned by Comments: absentee landlords). The project has finalized additional 58.15 hectares of private land for plantation and will carry out the planting during plantation season by May 2024 (before monsoon). IN01418618 ►Area of public land managed by disadvantaged/poor groups for plantation/agroforestry (Hectare(Ha), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 10.03 10.03 1,350.00 Date 13-May-2020 07-Dec-2023 08-Apr-2024 13-May-2026 This indicator records the area of public land (under Local Government jurisdiction and often located along river banks and in flood-prone areas in the Terai) that has been assigned to PLMGs (poor and otherwise disadvantaged farmers) for tree planting and agroforestry activities. Data will be dis-aggregated by Comments: disadvantaged group. The project has finalized additional 161.6 hectares of public land for plantation and will carry out the planting during plantation season by May 2024 (before monsoon). 3 - Forest enterprise improvement and development IN01418609 ►Timber and non-timber forest enterprises registered (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 0.00 Date 13-May-2020 07-Dec-2023 08-Apr-2024 13-May-2026 This indicator monitors the registration of all types of small, medium and large forest-based enterprises Comments: with women-owned and/or managed enterprises tagged. Data will be dis-aggregated by type and ownership. 6/20/2024 Page 5 of 8 The World Bank Implementation Status & Results Report Forests for Prosperity Project (P170798) IN01418613 ►Roundwood supplied from CBFM areas (Cubic Meter(m3), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 0.00 Date 13-May-2020 07-Dec-2023 08-Apr-2024 13-May-2026 This indicator measures the volume of timber produced (from several forest areas within a single Comments: landscape/municipality) as a result of implementation of revised sustainable forest management plans with total production being geared towards ensuring a predictable, sustainable timber supply. IN01418616 ►Increase in number of women with skilled jobs in the forestry value chain (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 50.00 Date 13-May-2020 07-Dec-2023 08-Apr-2024 13-May-2026 This indicator records the extent to which women are participating in and benefiting from enhanced Comments: productive work in the forest sector. The aim is to find the percent of women involved as skilled workers in different types of enterprise and parts of the value chain for forest products. IN01418619 ►Finance provided for establishing or improving FBEs (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 6,000,000.00 Date 13-May-2020 07-Dec-2023 08-Apr-2024 13-May-2026 This indicator records the type of enterprises and the size of loans being provided from the project and the extent to which women are also benefiting. Data will be dis-aggregated by loan type, loan size and enterprise ownership. Agricultural Development Bank Limited (ADBL) will share the performance of the Comments: forestry SME portfolio supported by the project in a separate report on an annual basis. The ADBL has mapped and identified a solid pipeline of forest-based SMEs with confirmed loan demand of USD 4.6 million vis-à-vis credit availability of USD 1.88 million for the Fiscal Year 2023/24. Project management, monitoring and learning IN01418608 ►Annual participation of stakeholders in project governance (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 6,300.00 7,300.00 5,000.00 Date 13-May-2020 07-Dec-2023 08-Apr-2024 13-May-2026 This indicator records the number of stakeholders who have participated in various project governance related meetings/workshops including project steering committees, and coordination and sector planning meetings at Local, Provincial and Federal levels. Data will be dis-aggregated by gender and Comments: disadvantaged group. The project has organized various provincial and municipal-level orientations, consultations, and stakeholder workshops, which have been critical to advancing the project implementation. 6/20/2024 Page 6 of 8 The World Bank Implementation Status & Results Report Forests for Prosperity Project (P170798) IN01418612 ►Documents, including studies, stories and surveys produced and shared with open access. (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 30.00 Date 13-May-2020 07-Dec-2023 08-Apr-2024 13-May-2026 This indicator tracks publications and social media/website usage and the subsequent incorporation of new ideas and practices into regular planning, monitoring and implementation activities of forest sector Comments: institutions. It includes documentation and dissemination of good practices such as gender specific activities and safeguard mechanisms. Performance-Based Conditions Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P170798 TF-B2488 Effective USD 17.90 17.90 0.00 0.00 17.90 0%% P170798 TF-B2796 Effective USD 6.10 6.10 0.00 2.27 3.83 37% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P170798 TF-B2488 Effective 08-Jul-2020 19-Mar-2021 16-Jul-2021 30-Sep-2025 30-Sep-2025 P170798 TF-B2796 Effective 08-Jul-2020 19-Mar-2021 16-Jul-2021 30-Sep-2025 30-Sep-2025 Cumulative Disbursements 6/20/2024 Page 7 of 8 The World Bank Implementation Status & Results Report Forests for Prosperity Project (P170798) Restructuring History There has been no restructuring to date. Related Project(s) P181002-Additional Financing for Forests for Prosperity 6/20/2024 Page 8 of 8