world bank financing for forests in central africa
TRANSCRIPT
WorldBankFinancingforForestsinAfrica:LessonsfromIEG’sForestEvaluation
(2002‐2012
WorldBankFinancingforForestsinCentralAfrica:
LessonsfromIEG’sForestEvaluation(2002‐2012)
IssuesforDiscussion
CentralAfricahasborrowedmuchlessfromtheWBthanwasexpectedwithrelationtoforestsandgrowth.
IthasnotreceivedanyIFCorMIGAassistance.
Ithasalsomadeverylittleuseofconcessionalfinanceforsustainableforestmanagement.OnlyoneCentralAfricancountryhasmadeuseoftheBio‐CarbonFund(DRC).DRChasaccessedmultipleformsoffinance–developmentpolicyandinvestmentlending,GEF,theCarbonFund,theForestCarbonPartnershipFacilityandCIF/FIP.
CentralAfricaishighlyactiveintheFCPF‐butquestionsaboutFinancingandthefutureofthepilotCarbonFundareImpending.
AfricaDominatesWorldBankForestPortfolioinProjectNumbers…
…….ButForestLendinginAfricaisonly13%ofGlobalLending(Total=US$2.6b;AFR=US$240.5m)
…….AndForestLendingtoCentralAfricawasonly3%oftotallendinggloballybetween2002‐2012.
UseofConcessionalFinancehasbeenLimitedinCentralAfrica
VeryFewAfricanCountriesaremakinguseofthemultipleformsofforestfinance
offeredbytheWorldBank
• TheDRChasaccessedIDAfinance(developmentpolicylendingandinvestmentlending);GEFconcessionalfinance;theBiocarbonFund;REDDfinancethroughtheForestCarbonPartnershipFacilityandCIF/FIPfinance.
CongoBasinCountriesareparticipatingintheFCPF.TheFCPF’stargetcapitalizationisUS$650million:US$300millionfortheReadinessFundandUS$350millionfortheCarbonFund.
LargestdonorsareGermany(24%),Norway(20%),Canada(10%),andAustralia(9%).TheWorldBankGroupunderwrotethecostofestablishingtheFacility,istrustee,hoststhemanagementteam,etc.
WhereasFCPF’sapproachtoREDD+presupposedprivatesectorparticipation,theFacilityhasonlybeenabletoattracttwoprivatesectorparticipantstotheCarbonFund.
IEG’sReviewoftheForestCarbonPartnershipFacilityfoundthatREDD+ismoreexpensive,complex,andprotractedthanwasanticipated.
REDDPreparationisExpensive:Preparationcosts–includingcomprehensiveconsultationsareinsomecasesrequiringupto4xthisamountanticipated.
AdministrationisExpensive:DisbursementsincreasedfromUS$1min2011toUS$2.8min2012.TheWorldBankadministeredprogramhasspentroughlyUS$22todeliveratotalofUS$4.9millioningrantssinceitsinception,70percentofwhichhavebeenutilizedbyfivecountries(includingDRCandtheRepublicofCongo).
SupervisionisExpensive:FundmanagementunitprovidesUS$1mtoAfricaregionannuallyforimplementationsupervisionsupport.
IEG’sRecommendationfromtheReviewoftheForestCarbon
PartnershipFacility
TheFCPFneedstoupdateandclarifyitsmissiontotheWorldBank’sBoardandtoitsparticipatingmemberswithrelationtothechangesthataretakingplaceinthecarbonmarketandwithrespecttotheevolvingnatureoftheCarbonFund
…thereisaisneedforgreaterclarityonhowandunderwhatconditionstheFacilitywillsupportnon‐market,versusmarket‐basedapproachestoREDD+andhowbenefitswillbealigned.
TheFCPFshouldalsoclarifytheroleofitsparticipantsvis‐à‐visthetwofunds:HowwillcountriesthatarenoteligiblefortheCarbonFundviewtheirroleintheReadinessFundaftertheCarbonFundcomesfullyon‐stream?
IEG’sRecommendationfromtheReviewoftheForestCarbon
PartnershipFacility
TheWorldBankneedsahigh‐level,strategicdiscussiononitsoverallapproachtoREDDandneedstoarticulatehowitplanstosupportimplementationofcountries’REDDstrategiesgoingforward.
AstrategicreflectionontheBank’soverallapproachtoREDD+isnecessary,includingadiscussionbetweenallrelevantnetworksandsectorsabouthowcountry‐generatedREDD+strategieswillbealignedwith,andincludedin,CountryAssistanceStrategies(CASs),PovertyReductionStrategyPapers
(PRSPs)andthecorrespondingoperationalportfoliosandhowREDD+willbesupportedaftertheplannedclosingdateoftheFacility.
TheCIF/FIPareProvidingadditionalfinancefortheREDD+AgendatoDRC
TheDRCisreceivingUS$58.4millioningrantsfromtheForestInvestmentProgram–atargetedprogramundertheStrategicClimateFund(SCF),oneoftwomulti‐donorClimateInvestmentFundshousedattheWorldBank.TheprojectsareimplementedbytheAfricanDevelopmentBank,AsianDevelopmentBank,EuropeanBankforReconstructionandDevelopment,Inter‐AmericanDevelopmentBank,andWorldBankGroup.
Estimatedco‐financing$37.7million