Forest Carbon Partnership Facility

Progress with Due Diligence Activities in Panama

Participants Committee Meeting (FCPF PC5)La Lopé National Park, Gabon.

March 22-24, 2010

• FCPF PC approved the Panama R-PP in June, 2009, and requested to proceed with World Bank due diligence activities for a $3.6 m preparation grant.

• The new government of Panama took office on July 1, 2009.

• The World Bank has conducted two missions to Panama in July, 2009 and in February 2010 to:– Re-engage the new administration on going forward with the

FCPF/World Bank activities;– Define the next steps for the “due diligence” process of the Bank;– Inclusion of a broader stakeholder consultation and participation

(other relevant government entities; Indigenous Peoples; NGOs; rural communities; Donors; research institutes; private sector; etc.)

– Define operational steps for ensuring harmonization and coordination with UN-REDD and other donors under a national REDD program.

Background

Accomplishments

• Renewed commitment of the new government to continue with the FCPF Readiness process: two meetings in 9/02 and 2/10

• Establishment of the National REDD Working Group: government agencies, private sector, Indigenous Peoples, NGO’s, Universities, civil society, UN-REDD and other donors.

• Articulation of SESA: working session focusing on (i) preliminary stakeholder analysis; (ii) identification of main social and environmental risks; and (iii) documentation of initial dialogue with key stakeholders regarding the process.

Progress to Date

Accomplishments (cont.)

• Institutional arrangements for REDD process management agreed and established: coordination unit with a General Coordinator and 3 supporting staff. Coordinator reports directly to Minister.

• Fiduciary assessment of ANAM’s administrative unit completed by the Bank: unit currently managing a WB GEF project will also provide fiduciary services on R-PP execution.

Progress to Date

Preliminary Agreement reached between UN-REDD and ANAM• Focal Agency: ANAM• UN-REDD document will be used as the basis to prepare a new version of

R-PP and this document will be the “official” Readiness Proposal. The revised R-PP will integrate the findings of the due diligence process.

• Elaborate a unified consultation plan and strategy. • Articulate a unified application of social and environmental standards. • Manage preparation phase through a single coordination/administration

unit in ANAM• A single Project Operational Manual (POM) will be prepared identifying

the various funding sources and specific operational steps.• Define a single monitoring and harmonized reporting system

Coordination with UN-REDD

• ANAM: Revise R-PP to reflect key issues addressed by the Bank and the TAP, stakeholder feedback and coordinate activities with UN-REDD.

• ANAM: Continue discussions with key stakeholders on issues relevant to REDD to ensure a process is in place to address them during preparation.

• ANAM: Finalize draft ToR for the SESA, and seek feedback and inputs from key stakeholders.

• World Bank: Prepare Assessment Note, and convene internal review by the Bank.

• World Bank: Conduct an appraisal mission and prepare Grant Agreement.

Next Steps

Thank you!