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Document of

The World Bank

FOR OFFICIAL USE ONLY

Report No: 132584

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

PROJECT PAPER

ON A

PROPOSED ADDITIONAL GRANT

IN THE AMOUNT OF US$ 4.94 MILLION

TO THE

FEDERAL REPUBLIC OF NIGERIA

FOR

REDD+ READINESS PREPARATION SUPPORT

FROM THE FOREST CARBON PARTNERSHIP FACILITY

November 29, 2018

Environment and Natural Resources Global Practice

Africa Region

Vice President: Hafez M.H. Ghanem

Country Director: Rachid Benmessaoud

Senior Global Practice Director: Karin Kemper

Practice Manager: Benoit Bosquet

Task Team Leader: Amos Abu; Mirko Serkovic

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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.

ABBREVIATIONS AND ACRONYMS

AF Additional Funding

CPS Country Partnership Strategy

CRS Cross River State

ESMF Environmental and Social Management Framework

FAP Forest Action Plan (of the World Bank)

FCPF Forest Carbon Partnership Facility

FGRM Feedback Grievance Redress Mechanism

GRS Grievance Redress Service (of the World Bank)

REL Reference Emissions Level

IDA International Development Association

M&E Monitoring and Evaluation

MTR Mid-Term Report (of the FCPF)

MRV Measurement, Reporting, and Verification

NFMS National Forest Monitoring System

PF Process Framework

REDD+ Reduced Emissions from Deforestation and Forest Degradation

RPF Resettlement Policy Framework

R-PP Readiness Preparation Proposal

SESA Strategic Environmental and Social Assessment

UNFCCC United Nations Framework Convention on Climate Change

WB World Bank

3

FEDERAL REPUBLIC OF NIGERIA

REDD+ READINESS PREPARATION SUPPORT

CONTENTS

ADDITIONAL FUNDING DATA SHEET ....................................................................................4

I. Introduction ..............................................................................................................................6

II. Background and Rationale for Additional Funding (US$4.94 M) .......................................6

III. Proposed Changes .................................................................................................................9

A. Proposed Development Objective (unchanged) ................................................................9

B. Key Results .......................................................................................................................9

C. Project Beneficiaries .......................................................................................................11

D. Costs by component ........................................................................................................11

E. Description of Additional Funding Components ............................................................14

F. Overall Risk Rating (see SORT in Annex 2) ......................................................................15

IV. Appraisal Summary ............................................................................................................17

A. Technical Assessment .....................................................................................................17

B. Financial management.....................................................................................................17

C. Procurement ....................................................................................................................18

D. Social and Environmental, including Consultations and Safeguards ..............................18 V. World Bank Grievance Redress ..........................................................................................19

Annex 1. Results Framework and Monitoring ..........................................................................20

Annex 2: Systematic Operations Risk-Rating Tool (SORT) .....................................................27

Annex 3: FCPF Resolution Approving Nigeria’s Request for Additional Funding ..................28

4

FEDERAL REPUBLIC OF NIGERIA

REDD+ READINESS PREPARATION SUPPORT

ADDITIONAL FUNDING DATA SHEET

Basic Information - Additional Funding (AF)

Country Director: Rachid Benmessaoud

Practice Manager/ Senior GP Director:

Benoit Bosquet / Karin Kemper

Team Leader: Amos Abu; Mirko Serkovic

Project ID: 153732

Expected Effectiveness Date: December

15, 2018

Lending Instrument: Carbon Offset

Additional Financing Type: Grant

Sectors: Forestry

Themes: Climate Change

Environmental Category: B

Expected Closing Date: June 30, 2020

Basic Information - Original Project

Project ID: 153732 Environmental Category: B

Project Name: Nigeria FCPF REDD

Readiness

Expected Closing Date: Dec 31, 2018

Joint Level: N/A

Lending Instrument: Carbon Offset

Fragility or Capacity Constraints [ ]

Financial Intermediary [ ]

Series of Projects [ ]

AF Project Financing Data

[ ] Loan [ ] Credit [X] Grant [ ] Guarantee [ ] Other:

Proposed terms:

AF Financing Plan (US$m)

Source Total Amount (US $m)

Total Project Cost:

Cofinancing:

Borrower:

Total Bank Financing:

IBRD

IDA

New

Recommitted

US$4.94

N/A

N/A

US$4.94

Client Information

5

Recipient: Federal Republic of Nigeria

Responsible Agency: Federal Ministry of Environment

Contact Person: Moses Ama, National REDD+ Coordinator

Telephone No.: +234-8033-4869-09

Email: mema20ng@yahoo.com

AF Estimated Disbursements (Bank FY/US$m)

FY FY19 FY20

Annual $2.17M $2.77M

Cumulative $2.17M $4.94M

Project Development Objective and Description

Original project development objective:

To support Nigeria design a socially and environmentally sound strategy to reduce emissions from

deforestation and forest degradation.

Project description:

The Additional Funding (AF) activities will continue to support Nigeria to design a socially and

environmentally sound strategy to reduce emissions from deforestation and forest degradation

and prepare Nigeria to access available national and international funding to implement REDD+

investments as defined in this strategy. In addition, the activities that will be funded under the

AF will enable Nigeria to complete the REDD+ Readiness process as identified in its Readiness

Preparation Proposal (R-PP)1, including the funding of additional activities identified during

Nigeria’s self-assessment of progress at mid-term in June 20172.

Safeguard and Exception to Policies

1 A framework document which sets out a clear plan, budget and schedule for a country to achieve REDD+

Readiness. Nigeria’s R-PP can be found at:

https://www.forestcarbonpartnership.org/sites/fcp/files/2014/september/Nigeria%20REDD%20R-

PP_final%20%205%20Aug%202014.pdf 2 As presented by Nigeria to the Participants Committee of the FCPF in June 2017 through its Mid-Term Report:

https://www.forestcarbonpartnership.org/sites/fcp/files/2017/Sep/NIGERIA_MTR_REPORT_.JUNE_27_2017.pdf

6

Safeguard policies triggered:

Environmental Assessment (OP/BP 4.01)

Natural Habitats (OP/BP 4.04)

Forests (OP/BP 4.36)

Pest Management (OP 4.09)

Physical Cultural Resources (OP/BP 4.11)

Indigenous Peoples (OP/BP 4.10)

Involuntary Resettlement (OP/BP 4.12)

Safety of Dams (OP/BP 4.37)

Projects on International Waterways (OP/BP 7.50)

Projects in Disputed Areas (OP/BP 7.60)

[X] Yes [ ] No

[X] Yes [ ] No

[X] Yes [ ] No

[X] Yes [ ] No

[X] Yes [ ] No

[ ] Yes [X] No

[X] Yes [ ] No

[ ] Yes [X] No

[ ] Yes [X] No

[ ] Yes [X] No

Is approval of any policy waiver sought from the Board (or

MD if RETF operation is RVP approved)?

Has this been endorsed by Bank Management? (Only applies

to Board approved operations)

Does the project require any exception to Bank policy?

Has this been approved by Bank Management?

[ ]Yes

[X] N/A

[ ]Yes [X] N/A

[ ]Yes

[X] No

[ ]Yes [ ] No

Conditions and Legal Covenants:

Financing Agreement Reference Description of

Condition/Covenant

Date Due

7

I. INTRODUCTION

1. This Project Paper seeks approval of the Country Director to provide an Additional

Financing (AF) grant in an amount of US$4.94 million from the Forest Carbon Partnership

Facility (FCPF) to the Federal Republic of Nigeria for the Nigeria FCPF REDD+3

Readiness Project (P153732 / TF 019085)4. The source of the AF grant is the FCPF

Readiness Fund. This grant is processed through FCPF specific procedures agreed with

OPCS.

2. The AF will complement the US$3.8 million Readiness Preparation grant signed on

February 2015 (original grant), currently under implementation by the Federal Ministry of

Environment and expected to close in December 31, 2018. The proposed AF grant would

support Nigeria to: (i) finalize a socially and environmentally sound national strategy to

reduce emissions from deforestation and forest degradation; (ii) complete the REDD+

Readiness process as initially planned in its Readiness Preparation Proposal (R-PP) and in

line with the evaluation criteria of the FCPF REDD+ Readiness Assessment Framework5;

(iii) mobilize funding ; (iv) scale-up REDD+ Readiness activities to additional states; and

(v) prepare for the future implementation of the National REDD+ Strategy of Nigeria.

3. The activities under the AF would be implemented over a period of 18 months until

June 30, 2020.

4. Implementation under the original grant is progressing well and is expected to be

completed by the current closing date of December 31, 2018. As of October 2018,

99 percent of the original grant has been disbursed; the remaining balance is expected to

be disbursed by the closing date.

5. The AF is expected to make important contributions to implementing Nigeria’s national

development priorities, including Nigeria’s Nationally Determined Contribution to the

UNFCCC’s Paris Accord for addressing climate change, as well as the World Bank’s

Country Partnership Strategy (CPS) and the Forest Action Plan (FAP).

II. BACKGROUND AND RATIONALE FOR ADDITIONAL FUNDING (US$4.94 M)

1. Nigeria self-assessed its REDD+ Readiness Preparation process using the FCPF REDD+

Readiness Assessment Framework’s evaluation criteria and submitted the results to the

24th meeting of the FCPF Participants Committee (September 2017) through a Mid-Term

3 Reduced Emission from Deforestation and Forest Degradation 4As approved by the Participants Committee of the FCPF on September 27, 2017 (Resolution PC/24/2018/8):

https://www.forestcarbonpartnership.org/sites/fcp/files/2017/Sep/Final%20Resolution%208%20Nigeria%20Additio

nal%20Funding%20Request.pdf 5 The Readiness Assessment Framework provides a common framework to measure countries’ relative progress on

core readiness activities. It can be found at:

https://www.forestcarbonpartnership.org/sites/fcp/files/2013/june2013/FCPF%20R-

Package%20User%20Guide%20ENG%206-18-13%20web.pdf

8

Report (MTR). The MTR identified the remaining gaps and associated financial needs to

complete the REDD+ Readiness Preparation Process, resulting in Nigeria’s request for an

additional US$ 4.94 million from the FCPF. The request was approved by the FCPF

Participants Committee on September 27, 2017, subject to the availability of funds which

was later confirmed by the FCPF Secretariat on February 13, 2018 and subject to World

Bank due diligence6.

2. Nigeria has been engaged in REDD+ since 2010 with the support of UN-REDD and has

been implementing REDD+ Readiness activities as defined in its R-PP since February

2015 with the support of the FCPF. UN-REDD support focused on Cross-River State,

which is now developing a proposal for a REDD+ investment program across the State’s

forest landscapes. FCPF support has enabled the launch of REDD+ activities at the national

level, while enabling a more in-depth engagement in Nasarawa and Ondo States. The total

cost of Nigeria’s R-PP was initially identified as US$ 8 million, of which US$ 3.80 million

was received from the FCPF. Following Nigeria’s self-assessment of progress at mid-term

in June 2017, the updated cost needed to complete the REDD+ Readiness process was

estimated at US$ 4.94 million7.

3. The proposed AF will enable Nigeria to complete the REDD+ Readiness process at

national-level as defined in its R-PP, while deepening its engagement at sub-national and

community levels in three additional States (to be selected), in addition to Cross-River,

Nasarawa and Ondo which have benefitted from UN-REDD funding as well as the original

FCPF grant of US$ 3.8 million. Specifically, the AF will: (i) reinforce the capacities and

ensure the operation of the national-level and state-level8 REDD+ management bodies to

provide political and technical guidance to the development of the National REDD+

Strategy; (ii) reinforce the capacities and organization of the main stakeholders for a more

effective participation in the development and implementation of the National REDD+

Strategy; (iii) finalize the National REDD+ Strategy with a detailed action plan and

implementation budget; (iv) strengthen national policies to support REDD+

implementation; (v) establish a Measurement, Reporting and Verification (MRV) system

for REDD+; (vi) support enabling activities for the REDD+ investment program in Cross-

River State under development; (vii) prepare Nigeria to access available national and

international funding for REDD+ investments.

4. Consistency with Nigeria’s Country Partnership Strategy (FY14-FY17). The AF

activities are consistent with the FY14-FY17 Country Partnership Strategy (Report

No. 104616) as revised through two Performance and Learning Reviews (PLRs). The first

PLR (report number 103616 of August 2016) did not extend the CPS. The second PLR that

was approved by the Board on June 27, 2018 extended Nigeria’s CPS until 2019. The AF

activities will contribute to the achievement of the CPS objectives under the First Strategic

6 The FCPF Participants Committee encouraged Nigeria to consider the following as it advances its REDD+ Readiness

work: 1) enhance efforts for coordination, technical work and capacity building at federal and state levels necessary

for expanding readiness to three additional states within the country; and 2) continue outreach and consultations at

federal and state levels to ensure that political commitment and momentum for REDD+ are maintained. 7 Detailed information on progress achieved under the original grant and the rationale for additional funds are

contained in Nigeria’s Mid Term Progress Report (MTR) and Request for Additional Funding to the FCPF:

https://www.forestcarbonpartnership.org/sites/fcp/files/2017/Sep/NIGERIA_MTR_REPORT_.JUNE_27_2017.pdf 8 Cross-River, Nasarawa, Ondo and three additional states to be determined.

9

Cluster, more specifically under the focus area of agricultural productivity and climate

change (resilience) which includes the following under its proposed measures: reducing

immediate and long-term climate risks to rural livelihoods by treating and reversing land

degradation; supporting climate smart agriculture; water catchment management; reducing

deforestation and forest degradation and fostering reforestation; and enhancing capacity to

prevent and manage climate-related disasters including through more efficient hydro-

meteorological systems and innovative finance to respond to shocks.

5. Alignment with the IDA18 overarching theme, “Towards 2030: Investing in Growth,

Resilience and Opportunity”. The AF will contribute to help implement three of the special

themes prioritized by the World Bank Group: (i) climate change; (ii) jobs and economic

transformation; and, (iii) governance and institutions, that present specific development

challenges and opportunities in the case of Nigeria, and its forest, agriculture, and energy

sectors, as the main drivers of deforestation and forest degradation. Addressing

deforestation mitigates climate change and contributes to building the resilience of people

and ecosystems to its impacts. REDD+ processes and activities could create training

opportunities and eventually jobs in agro-forestry, forest protection/restoration and other

green sectors. Finally, a number of institutions are being strengthened to provide political

and technical guidance on the implementation of REDD+ in Nigeria in an inclusive and

transparent manner, with the main stakeholders organized for a more effective participation

in the process.

6. Contribution to implement the World Bank Forest Action Plan (FAP). The

development of the National REDD+ Strategy is expected to result in a portfolio of

potential forest-smart interventions in agriculture, landscape restoration, renewable energy

resources targeting biomass energy use, and other cross-cutting aspects such as land-use

planning and governance. The AF will support the identification of potential financing

sources for their implementation. Moreover, it will also support the mainstreaming of these

interventions into implementing ministries’ sectoral policies and plans.

7. The AF grant will complement other World-Bank financed projects such as the

Nigeria Erosion and Watershed Management Project – NEWMAP (P124905, P164082),

which is financing State-led interventions to prevent and reverse land degradation. The

REDD+ Readiness support project also has the potential to contribute to World Bank

programs in the agriculture, environment and energy sectors.

8. Contribution to implement national development priorities. The activities under the

AF are expected to contribute to Nigeria’s plans to pursue a low carbon, high growth, and

climate resilient development path as defined in the country’s National Economic

Recovery and Growth Plan (2017-2022), National Forest Policy (2006, currently under

review), National Policy on the Environment, Agriculture Promotion Policy (2016-2020),

National Policy on Climate Change and Response Strategy (NPCC-RS) and Nationally

Determined Contribution (2016-2030) to the UNFCCC’s Paris Accord. The activities

under the AF are also expected to help access financing from Nigeria’s Green Sovereign

Bond.

10

III. PROPOSED CHANGES

A. PROPOSED DEVELOPMENT OBJECTIVE (UNCHANGED)

1. The Project Development Objective will remain unchanged, and reads to support Nigeria

design a socially and environmentally sound strategy to reduce emissions from

deforestation and forest degradation.

B. KEY RESULTS

2. Key Achievements under the original grant. Progress towards achieving grant objectives

and implementation of activities are both rated moderately satisfactory. The REDD+

process has triggered interest for inter-agency collaboration and coordination, as well as

policy harmonization at national and sub-national levels. It is also establishing

unprecedented partnerships in-country and supporting opportunities to integrate REDD+

into national planning and budgeting processes. This AF will contribute to fulfilling the

outset objectives of the original grant and to enhance the impacts as follows:

a) National and State Level Readiness Management Arrangements: national and

sub-national management arrangements and multi-actor consultation and

coordination platforms have been established and are functioning. At Country level,

the National Council on REDD+, the Programme Steering Committee, the National

Technical Committee and the National REDD+ Secretariat have been established

and are operational. At subnational level, REDD+ Secretariats have been

established in Cross-River, Nasarawa and Ondo States. Through the project’s

support, State-level Secretariats are mainstreaming REDD+ into their policies and

programs and also engaging with local stakeholders. Moreover, along with local

actors, they benefit from capacity strengthening for REDD+. Experience from

Cross-River State, in particular, has generated various lessons for the future

implementation of REDD+ that are relevant for other States and also for the entire

country. The AF will continue supporting the existing national and sub-national

management arrangements (in the three States currently participating) and set-up

additional sub-national REDD+ Secretariats in three additional States to be

selected.

b) Develop REDD+ Strategies and Conduct SESA: the preparation of the National

REDD+ Strategy was launched under the original grant and it is at an advanced

stage. Specifically, the main building blocks that will inform this Strategy; namely,

a geospatial analysis of the drivers of deforestation and forest degradation and the

identification of strategic options to address these (REDD+ Strategic Options) have

been prepared. The next deliverable expected is a first full draft which assesses the

feasibility of the different options, integrates the considerations from the SESA

currently under finalization, and proposes a detailed action plan and costing to

implement the Strategy. The SESA, as well as the associated safeguards

instruments (Environmental and Social Management Framework, Resettlement

Policy Framework and Process Framework), are currently under review and

finalization after being validated by stakeholders at national level. Finally, a

benefit-sharing mechanism that defines how the multiple benefits from REDD+

11

could be shared among the relevant stakeholders has been finalized. The AF will

complement what has been achieved so far by defining approaches to mobilize

resources for the implementation of the National REDD+ Strategy. Building on the

SESA, the AF will fund the development of a Safeguards Information System (SIS)

that includes real time tracking of environmental and social safeguards issues,

including the preparation and implementation of the site-specific safeguards

instruments during the implementation of the REDD+ Strategy.

c) Develop a Reference Emissions Level (REL): the development of the REL is

expected to be completed under the original grant through a Technical Assistance

Agreement (TAA) with the Food and Agriculture Organization (FAO), which is at

an advanced stage. These activities include the implementation of a forest inventory

(based on data collected from Ondo and Nasarawa States and a low intensity

sampling for other ecological zones in the country), assessments of historical forest

cover change and the strengthening of capacities of the national agencies involved

in this exercise. The AF will update and strengthen the REL by improving the

sampling of the forest inventory and continue to reinforce capacities at national

level. Building on this, the AF will fund the development and operationalization of

a National Forest Monitoring System (NFMS), for which an action plan for its

development is in place, including an institutional needs assessment and roadmap

to facilitate enabling legislations and laws for the implementation of a sustainable

and transparent NFMS.

d) Enhance Stakeholder Engagement, Communication, Consultation and

Feedback for REDD+ Readiness Process: The AF will deepen engagements with

stakeholders, with a focus on strengthening existing platforms (National and State-

level Stakeholder Forums)9, engaging forest-dependent communities and

addressing gender gaps at community level. In addition, the AF will support

engagement with government at the policy and technical levels and with other

stakeholder groups such as civil society organizations, media, and the private

sector. The same model would be replicated in the three additional States to be

selected. Analytical work to develop a Feedback and Grievance Redress

Mechanism (FGRM) has begun, and the AF will support its establishment.

3. The PDO indicators for the original grant remain valid for the AF, these are:

1. REDD+ Readiness arrangements fully functional (disaggregated by national and

sub-national level);

2. A National REDD+ Strategy prepared and validated through a consultative

process;

9 The National and State-level Stakeholder Forums bring together civil society organizations, representatives from

forest-dependent communities, academia, media and the private sector for each respective level. Through these

forums, stakeholders are consulted on the activities being carried out under the REDD+ process, and they provide

their input and validate the different deliverables of the process.

12

3. A National Environmental and Social Management Framework developed and

validated through a national Strategic Environmental and Social Assessment

process;

4. A National Reference Emissions Level established;

5. Direct project beneficiaries (number), of which female (percentage).

4. The following results indicators specific to the AF will be reflected in a revised results

framework (see Annex 1):

1. A new PDO indicator is added: Monitoring systems for forests and safeguards

are established.

2. The following intermediate results indicators are added or revised:

• State-level REDD+ Management structures established and functioning in

CRS, Ondo, Nasarawa and three additional states (to be selected);

• Interventions for the National REDD+ Strategy are defined, including

approaches to mobilize resources for their implementation;

• A Measurement, Reporting, and Verification (MRV) system for REDD+ is

designed;

• An Information System for Safeguards, Governance and Multiple Benefits is

designed.

5. The achievement of AF objectives will be monitored using the project’s existing

monitoring and evaluation framework.

C. PROJECT BENEFICIARIES

6. REDD+ is a multi-stakeholder process, with a strong emphasis on consultations and on the

creation of participatory mechanisms to ensure multi-stakeholder engagement. The direct

beneficiary of the grant is the Federal Republic of Nigeria, specifically the Federal

Ministry of Environment and its REDD+ government-partner institutions, as well as the

members of local communities and organizations who participate in the REDD+ process

with support from AF activities.

D. COSTS BY COMPONENT

7. The structure and implementation arrangements of the AF activities will remain as under

the original grant.

Table 1. Updated Budget with the AF

Activities for FCPF Funding Original Cost Changes w/ AF Revised Cost

13

(‘000 US$) (‘000 US$) (‘000 US$)

Component 1: Strengthen National and

State Level Readiness Management

Arrangements

900 1,925 2,825

1.1. National Readiness Management

Arrangements 412 1,285 1,697

1.2. State Level Readiness Management

Arrangements 398 640 1,038

1.3 Monitoring and Reporting for REDD+

Readiness process 90 - 90

Component 2: Develop REDD+ Strategies

and Conduct SESA 1,200 557 1,757

2.1. Improve Analytical Work and

Develop REDD+ Strategy at National and

State Levels

450 200 650

2.2. Develop SESA and Safeguards

Instruments 750 0 750

2.3 Develop Safeguards Information

System (SIS) and multiple benefits

analysis and mapping

- 357 357

Component 3: Develop Reference

Emissions Levels 900 1,080 1,980

3.1. Reference Level 900 - 900

3.2. Forest inventory in additional

States/ecological zones - 250 250

3.3. National Forest Monitoring System

(NFMS) - 830 830

Component 4: Enhance Stakeholder

Engagement, Communication,

Consultation and Feedback for REDD+

Readiness Process

650 1,378 2,028

4.1. Participatory structures and

stakeholder engagement 100 988 1,088

4.2. Communication on REDD+ 100 320 420

14

4.3. Consultations on REDD+ 250 -10 250

4.4. Feedback and Grievance Redress

Mechanism 200 70 270

Contingency 150 0 150

TOTAL 3,800 4,940 8,740

E. DESCRIPTION OF ADDITIONAL FUNDING COMPONENTS

Component 1. Strengthen National and State Level Readiness Management Arrangements

(US$1,925,000)

8. The objective of this component is to support national and state-level coordination and

monitoring of the REDD+ process, including the project management costs. The AF will

support the operational costs of the National REDD+ Secretariat, as well as the operational

costs of six State-level REDD+ Secretariats (Cross-River, Nasarawa, Ondo and three

additional States to be selected), to enable them to mainstream REDD+ into their policies

and programs and engage with stakeholders locally. To this end, a selection process with

clear and objective criteria for the selection of the additional States will be applied to

ensure transparency. The criteria for selection considers the proportion of forest cover in

the State as well as the existence of State budget or other allocations that could be directed

towards REDD+ efforts. The selection assessment would be undertaken by an Evaluation

Committee and the final selection would be cleared by the World Bank based on the

evaluation documents. The selection is expected to be concluded by February 2019. The

AF will fund capacity building and training activities, as well as the sharing of knowledge

between the participating States and the newly-selected States to support the project

implementation. In addition, the AF will support the convening of the Federal Level

REDD+ Management Arrangements and intersectoral coordination.

Component 2. Develop REDD+ Strategies and Conduct SESA (US$557,000)

9. The objective of this component is to carry out analytical work feeding into the formulation

of a National REDD+ Strategy (including on benefit sharing), develop the strategy itself,

undertake the SESA and produce the relevant safeguards instruments (ESMF, RPF, and

PF). The AF will complement the REDD+ Strategy and SESA being funded by the original

grant by defining approaches to mobilize resources for the implementation of the REDD+

10 Experience from the implementation of the initial grant shows that most consultations were embedded within the

contracts and budgets of activities that by nature involved consultations (i.e., the SESA, the development of the

National REDD+ Strategy, etc.). This will continue to be the case under the AF; therefore, there is no separate budget

allocated for consultations. In addition, building from the numerous consultations done to date, the focus at this more

advanced stage of implementation is rather on stakeholder engagement (with a budget of about US$ 1 million).

15

Strategy (identifying the most suited funding sources – public and private, multilateral,

bilateral, and national – to implement the different actions proposed, including

mainstreaming REDD+ into national policies and programs). The AF will fund the

development of a Safeguards Information System (SIS) that includes real time tracking of

environmental and social safeguards issues, including the preparation and implementation

of the site-specific safeguards instruments during the implementation of the REDD+

Strategy. Building on the experience from Cross-River State, the AF will also fund the

analysis and mapping of multiple (non-carbon) benefits with the aim of providing

information on key quantitative and qualitative variables about the impact of REDD+

activities on rural livelihoods, conservation of biodiversity, ecosystem services provision,

among others.

Component 3. Reference Emissions Level – REL (US$1,080,000).

10. The objective of this component is to develop Nigeria’s national REL taking into account

the national circumstances and UNFCCC guidance. The AF will update and strengthen the

REL by enhancing the sampling of the forest inventory and continue to reinforce capacities

at national level. Building on this, the AF will support the development and

operationalization of a National Forest Monitoring System, including the associated

software, as well as capacity strengthening and training needs.

Component 4. Enhance Stakeholder Engagement, Communication, Consultation and Feedback for

REDD+ Readiness Process (US$1,378,000).

11. The objective of this component is to ensure broad stakeholder engagement in the REDD+

process, support communication on REDD+, conduct consultations on specific issues

related to REDD+ Readiness process, and design and establish a feedback and grievance

redress mechanism. The AF will deepen engagements with all levels of stakeholders to

ensure the future implementation of the National REDD+ Strategy. This would entail

reinforcing existing structures (National and State-level Stakeholder Forums) and focusing

on engaging forest-dependent communities with a view to supporting them to establish

networks of communities for fostering the sharing of experience and lessons. At the

community level, there will be a focus on addressing gender gaps. In addition, the AF will

support engagement with government at the policy and strategic levels with a view to

establishing institutional linkages for the implementation of REDD+, as well as

engagement with other stakeholder groups such as civil society, media, and the private

sector. The AF will support the organization of these meetings and related capacity

strengthening to enhance the participation of these stakeholders in the REDD+ process,

engaging them in the different deliverables of the AF. In the three new States to be selected,

REDD+ Stakeholder Forums will also be established. This is an innovation that has

demonstrated to increase ownership based on the experience of Cross-River State.

Building on the analytical work done with regards to the FGRM, the AF will support its

establishment.

16

F. OVERALL RISK RATING (see SORT in Annex 2)

12. The overall risk rating for the project is Substantial. The REDD+ Readiness process

presents a substantial level of risk, as it depends directly on a conducive governance

environment and tackles issues that are sensitive in nature, such as land and forest tenure

rights, and will address intersectoral dynamics that can be challenging. The program

maintains a relatively high degree of international visibility, due to the high stakes of

REDD+ for various stakeholders including vulnerable forest-dependent communities;

however, ample attention is paid to appropriately and adequately deal with sensitive issues

in the Readiness process.

13. Key risks are linked to:

a. Political and Governance (High): The forestry sector in Nigeria, as in many

countries, struggles with transparency and good governance, which may undermine

achievements made by the project. Moreover, the weight of economic policies and

the many interests and influence of other sectors necessary for REDD+

implementation could generate tensions when defining and agreeing on REDD+

interventions. In addition, the forthcoming elections might slow down project

implementation. The AF will also support outreach at federal and state levels to

ensure that political commitment and momentum for REDD+ are maintained with

the new authorities. The AF will also provide resources for governance bodies at

federal and state level, coordination, dialogue platforms, policy studies, capacity

strengthening and stakeholder engagement processes to address issues of

transparency and governance.

b. Sector Strategies and Policies (High): There is an adequate policy framework for

the project, including supportive legal frameworks at the sub-national level.

However, the REDD+ Readiness process also identified several thematic areas

deemed integral to addressing drivers of deforestation wherein need for government

policy, legislative and institutional reform: forest and land use zoning and planning,

and forest tenure security for local communities. Moreover, addressing

deforestation and forest degradation requires effective inter-sectoral coordination

and engagement with the agriculture and energy sectors as the main drivers. There

are also key gaps in forest sector relevant strategies and legal framework. Cross-

sectoral coordination could be a challenge to deliver on REDD+. As part of the

analytical work for REDD+ Strategy, an assessment of related legislation will be

undertaken, including on land tenure. The REDD+ Strategy will identify any

required policy reform.

c. Institutional Capacity for Implementation and Sustainability (Substantial).

Although capacity for implementing REDD+ at the federal and state levels has been

strengthened under the original grant, further strengthening is required. Moreover,

capacity of the three new States to be covered under the AF will require further

strengthening. Under the AF, sufficient funding is allocated to capacity

strengthening activities of actors at all levels and to the operating costs of the

REDD+ management structures. Moreover, the National REDD+ Secretariat will

17

continue to be strengthened by an international and a national consultant to support

the delivery and quality of the activities implemented.

d. Environment and Social (Substantial): Nigeria has demonstrated its commitment

to mitigating adverse social and environmental impacts in the implementation of a

range of World Bank projects including Category A projects through adequate legal

and institutional frameworks that ensure compliance with World Bank safeguards

policies triggered by the project. The FCPF grant will not support site specific

REDD+ civil works activities. Therefore, safeguards policies for FCPF activities

will apply at a more strategic level than in regular World Bank-financed investment

projects.

The SESA currently ongoing has identified the main environmental and social risks

from the future implementation of REDD+ activities (for example, through changes

to the legal and policy framework and interventions in the forest, agriculture and

energy sectors that respond to the identified drivers of deforestation). The SESA

will enable the integration of key environmental and social considerations into the

REDD+ Strategy and the development of the relevant safeguards instruments

(Environmental and Social Management Framework, Resettlement Policy

Framework and Process Framework). These would provide the framework for

guiding the implementation of the REDD+ Strategy.

In addition to the ESMF and RPF under preparation, there are adequate legal and

institutional frameworks in the country to ensure compliance with World Bank

safeguards policies triggered by the REDD+ Readiness activities. While the

Government of Nigeria has previous experience in managing the Bank’s safeguards

policies under the World Bank supported projects, very few of them have used a

Strategic Environmental and Social Assessment (SESA) approach. The World

Bank has been providing supervision and input to the SESA process being

undertaken under the original grant. Appropriate additional support on safeguards

will continue under the AF.

In addition, in Nigeria there is a risk of lack of consistent approaches to

environmental and social issues between state and national authorities. In this sense,

the linkages between institutional arrangements at the federal and the state levels

are crucial to ensure their buy-in into the SESA process and its final results as input

for their forest management decisions and in the design of future REDD+

investments. There have been some experiences at the state level from which the

SESA process could draw from, including the analysis and consultations on the

social and environmental impacts on REDD+ conducted in CRS using the UN-

REDD social and environmental standards for REDD+.

e. Stakeholders (Substantial): REDD+ is a mechanism still under discussion

internationally; it attracts much attention from various groups of stakeholders.

Concerns are raised over how incentives for REDD+ would flow from the Federal

level. Also, stakeholder expectations for potential REDD+ benefits may be

unrealistically high, although stakeholders in the Cross-River State, Nasarawa and

Ondo appear very much on board with the REDD+ process and keen on

18

preservation of their pristine forests. Work to develop a transparent benefit-sharing

mechanism and to develop a FGRM is currently ongoing under the original grant

and will be further supported by the AF. Moreover, the AF will support activities

specifically targeting enhanced understanding of REDD+ and stakeholder benefits,

roles, and responsibilities through communication and outreach and support greater

stakeholder engagement.

IV. APPRAISAL SUMMARY

A. TECHNICAL ASSESSMENT

14. The activities to be financed by the AF were first identified through Nigeria’s self-

assessment of its progress on REDD+ Readiness, presented to the FCPF Participants

Committee in September 2017 through a Mid-Term Report (MTR). The MTR identified

remaining financial needs to complete the REDD+ Readiness process as defined in

Nigeria’s R-PP, resulting in Nigeria’s request for additional FCPF funds of

US$ 4.94 million. The activities proposed under the AF respond to the gaps identified in

line with the FCPF’s REDD+ Readiness Assessment Framework. Activities were later

confirmed after technical discussions with the National REDD+ Secretariat. They follow

guidelines, standards, and technical criteria established by the FCPF.

15. The activities identified are also achievable by the institutional arrangements in place. The

proposed AF grant will continue to be implemented by the National REDD+ Secretariat,

with the same institutional arrangements of the original grant, through the NEWMAP

Project Management Unit (PMU). A procurement officer dedicated to the project has been

mobilized to support the NEWMAP PMU. Moreover, an international and a national

consultant will support the National REDD+ Secretariat on planning and on the delivery

and quality of the activities implemented. These measures are expected to accelerate

disbursements. Capacity strengthening of the team to ensure timely disbursements will

continue throughout the period of the grant.

B. FINANCIAL MANAGEMENT

16. The financial management arrangements that have been in place under the project will

continue for the additional finance. The NEWMAP Project Management Unit (PMU) will

continue assuring the fiduciary function of the project. The PMU is an experienced entity

with qualified staff and experience in implementing World Bank-financed projects and is

currently executing the ongoing project and the NEWMAP project with Moderately

Satisfactory FM performance. The PMU has in general adequate budgeting, accounting,

reporting, recording and filing arrangements in place. The entity uses a robust financial

management platform at both Federal and State level, which handles the fiduciary

responsibilities of the project.

19

C. PROCUREMENT

17. The procurement arrangement for the proposed AF will be the same as in the original

project: the NEWMAP Project Management Unit (PMU) will continue assuring the

fiduciary function of the project. The team has gathered some procurement experience

working with the NEWMAP PMU during the implementation of the original grant. A

procurement officer has recently been mobilized from the government’s Bureau of Public

Procurement (BPP) to support this PMU in procurement issues related to the REDD+

project. Procurement under the AF will be in accordance with the World Bank’s

“Procurement Regulations for IPF Borrowers” (Procurement Regulations) dated July 2016

(revised November 2017) under the “New Procurement Framework” (NPF), and the

“Guidelines on Preventing and Combating Fraud and Corruption in Projects Financed by

IBRD Loans and IDA Credits and Grants”, dated October 15, 2006 and revised in January

2011 and as of July 1, 2016, and other provisions that may be stipulated in the Financing

Agreement. In accordance with paragraph 5.9 of the “World Bank Procurement

Regulations for IPF Borrowers” (“Procurement Regulations”) the Bank’s Systematic

Tracking and Exchanges in Procurement (STEP) system will be used to prepare, clear, and

update procurement plans and conduct all procurement transactions for the project. The

World Bank Standard Procurement Document under the New Procurement Framework

will be used for all international competitive procurement. As part of the preparation of the

additional finance, the Borrower (with the support from the World Bank) prepared a Project

Procurement Strategy for Development (PPSD) that describes how procurement activities

will support project operations for the achievement of project development objectives and

deliver Value for Money (VfM). The PPSD clarifies institutional arrangements for

procurement; roles and responsibilities; thresholds, procurement methods, and prior

review, and the requirements for carrying out procurement.

D. SOCIAL AND ENVIRONMENTAL, INCLUDING CONSULTATIONS AND SAFEGUARDS

18. The institutional arrangements for the implementation of the additional grant will continue

relative to the ongoing project. The project is being implemented by the Federal Ministry

of Environment (FME), with the National REDD+ Secretariat in the Forestry Department

being responsible for the day-to-day operation.

19. The Recipient has several years of experience in applying and implementing World Bank

projects. There are considerable legal and institutional frameworks in the country to ensure

compliance with World Bank safeguards policies triggered by the project. In Nigeria, the

FME is responsible for setting policy guidelines on environmental issues and ensuring

compliance with national environmental standards. It has different departments with field

offices in every region of the country. An experienced team exists inside this ministry that

deals with the national environmental issues in their daily work. Further, safeguards

specialists in the World Bank team will provide additional guidance to the Borrower's team

and the Bank task team.

20. The SESA is building upon existing knowledge and institutions that currently carry out

similar studies to inform strategic, sectoral planning or other relevant impact assessments,

where relevant. It is expected that the SESA will help to identify the most relevant

20

stakeholders and the priority areas for institutional strengthening to ensure that the REDD+

strategy would be implemented in a socially and environmentally sound manner. The

SESA and the development of the safeguards instruments are being conducted in a

participatory manner and would be subjected to a national validation workshop.

V. WORLD BANK GRIEVANCE REDRESS

21. 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 or the WB’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 WB’s

independent Inspection Panel which determines whether harm occurred, or could occur, as

a result of WB 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 GRS, please visit

http://www.worldbank.org/GRS. For information on how to submit complaints to the

World Bank Inspection Panel, please visit www.inspectionpanel.org.

22. Feedback and Grievance Redress Mechanism (FGRM) for REDD+ in Nigeria:

Analytical work to develop a FGRM has begun and the AF will support its establishment

and operationalization.

21

ANNEX 1. RESULTS FRAMEWORK AND MONITORING

Nigeria P153732: REDD+ Readiness Preparation Support

Revisions to the Results Framework

Revisions to the Results Framework Comments/

Rationale for Change

PDO

Current Proposed

To support Nigeria design a

socially and

environmentally sound

strategy to reduce

emissions from

deforestation and forest

degradation

Continued

PDO indicators

Current Proposed change

Indicator One: REDD+

Readiness arrangements

fully functional

Continued

Indicator Two:

A National REDD+

Strategy prepared and

validated through a

consultative process

Continued

Indicator Three: A

National ESMF prepared

and validated through a

national SESA process

Continued

Indicator Four: A national

Reference Emission Level

established

Continued

New

Indicator Five:

Monitoring systems for forests and

safeguards are established.

Added to reflect that funding

under the AF will support the

establishment of monitoring

systems for forests and

safeguards.

22

Revisions to the Results Framework Comments/

Rationale for Change

Indicator Six: Direct

Project Beneficiaries

Continued

Intermediate Results indicators

Current Proposed change

Component 1: Strengthen National and State Level Readiness Management Arrangements

Intermediate Result

Indicator One: Government

institutions provided with

capacity building support to

improve management of

forests

Continued

Intermediate Result

Indicator Two: State-level

REDD+ Management

structures established and

functioning in Ondo and

Nasarawa states

Revised

State-level REDD+ Management

structures established and functioning

in CRS, Ondo, Nasarawa and three

additional states (to be selected)

Revised to reflect that the AF

will support the establishment

and functioning of REDD+

Management structures in three

additional states (to selected), in

addition to supporting the

functioning of REDD+

Management structures in Ondo

and Nasarawa.

Component 2: Develop REDD+ Strategies and Conduct SESA

Intermediate Result

Indicator Three: Key

studies conducted on

deforestation and forest

degradation

Continued

Intermediate Result

Indicator Four: Reforms in

forest policy, legislation or

other regulations supported

Continued

Intermediate Result

Indicator Five: SESA

mechanism established

Continued

New

Intermediate Result Indicator Six:

Interventions for the National REDD+

Strategy are defined, including

Added to reflect that funding

under the AF will support the

definition of approaches to

mobilize resources for the

23

Revisions to the Results Framework Comments/

Rationale for Change

approaches to mobilize resources for

their implementation

implementation of the National

REDD+ Strategy interventions.

Component 3: Develop Reference Emissions Level and Monitoring, Reporting, and Verification

Intermediate Result

Indicator Seven:

A forest base map prepared

Continued

New

Intermediate Result indicator Eight:

Measurement, Reporting, and

Verification system for REDD+

designed

Added to reflect that funding

under the AF will support the

development of a Measurement,

Reporting, and Verification

system for REDD+.

New

Intermediate Result indicator Nine:

Information System for Safeguards,

Governance and Multiple Benefits

designed

Added to reflect that funding

under the AF will support the

development of an Information

System for Safeguards,

Governance and Multiple

Benefits.

Component 4: Enhance Stakeholder Engagement, Communication, Consultation and Feedback

for REDD+ Readiness Process

Intermediate Result

Indicator Ten: Feedback

and grievance redress

mechanism established for

REDD+

Continued

24

Revised Results Framework

Project Development Objective (PDO): to support Nigeria design a socially and environmentally sound strategy to reduce emissions from deforestation and forest

degradation

PDO Level Results

Indicators Co

re Unit of

Measure

Baseline

(2015)

Progress

to date

(2018)11

Target Values12

Frequency Data Source/

Methodology

Responsibility

for Data

Collection

Description (indicator

definition etc.)

2018 2019 2020

Indicator One:

REDD+ Readiness

arrangements fully

functional

Yes/No

No

No13

No Yes Yes Annual

Review of REDD+

readiness

arrangements

National REDD+

Secretariat

Indicates an outcome of

institutional strengthening

activities supported by FCPF

Grant; full functionality will be

defined according to

definitions in Section B under

“National REDD+

management”, para 16

- including at the

national level

Yes/No No No No Yes Yes Annual

- including at the sub-

national level in six

pilot states Yes/No

No No14 Yes Yes Yes Annual

Reports of the

Technical Committee

Meetings at State

levels

National REDD+

Secretariat

In CRS, Ondo, Nasarawa and

three additional states (to be

selected)

Indicator Two:

A National REDD+

Strategy prepared and

validated through a

consultative process

Yes/No

No No Yes Yes Yes Annual

Availability of the

National REDD+

Strategy document,

and reports on

National REDD+

Secretariat

Indicates an outcome of the

National REDD+ Strategy

development process,

including related consultations

11 For new indicators introduced as part of the additional funding, the progress to date column is used to reflect the baseline value. 12 Target values are cumulative. 13 Managing inquiries, complaints and potentially grievances by stakeholders is pending. 14 Functional in CRS, Ondo and Nasarawa.

25

related consultations

and SESA process

Indicator Three: A

National ESMF

prepared and validated

through a national

SESA process

Yes/No

No No Yes Yes Yes Annual

Availability of the

SESA and ESMF

reports

National REDD+

Secretariat

Indicates an outcome of the

national SESA process,

resulting in an ESMF

Indicator Four: A

national Reference

Emission Level

established

Yes/No No No Yes Yes Yes Annual

Review of REDD+

M&E system

National REDD+

Secretariat

Review of M&E system

includes assessment of data

quality (esp. timeliness,

reliability, validity, precision,

relevance)

Indicator Five:

Monitoring systems

for forests and

safeguards are

established.

Yes/No

No No No Yes Yes Annual

Review of monitoring

systems for forests

and safeguards

National REDD+

Secretariat

Indicates an outcome of the

development of monitoring

systems for forests and

safeguards, including a

Measurement, Reporting, and

Verification system for REDD+,

a National Forest Monitoring

System and an Information

System for Safeguards,

Governance and Multiple

Benefits.

Indicator Six: Direct

Project Beneficiaries

Number

0 617 1,067 1,717 1,967 Annual

Activity reports of

capacity building

activities

National REDD+

Secretariat

Direct beneficiaries are people

or groups who directly derive

benefits from an intervention

(direct beneficiaries of the

capacity building activities)

- female beneficiaries Percent

age 0 40 40 40 40

INTERMEDIATE RESULTS

Intermediate Result (Component One): Strengthen National and State Level Readiness Management Arrangements

26

Intermediate Result

indicator One:

Government

institutions provided

with capacity building

support to improve

management of

forests

Numbe

r 0 4 7 7 7 Annual

Activity reports

National REDD+

Secretariat

The Government institutions

targeted include the National

REDD+ Secretariat and REDD+

Units in CRS, Ondo, Nasarawa

and three additional states (to

be selected)

Intermediate Result

Indicator Two: State-

level REDD+

Management

structures established

and functioning in

CRS, Ondo, Nasarawa

and three additional

states (to be selected)

Yes/No No

No15 Yes Yes Yes Annual

Minutes of state-level

Committees

meetings, evidence of

regular functioning of

REDD+ Units

National REDD+

Secretariat

Indicates an outcome of

activities on establishment and

functioning of REDD+

management structures in CRS,

Ondo, Nasarawa and three

additional states (to be

selected)

Intermediate Result (Component Two): Develop REDD+ Strategies and Conduct SESA

Intermediate Result

Indicator Three: Key

studies conducted on

deforestation and

forest degradation

Number 0

0 2 2 2 Annual Review of studies

conducted on

deforestation and

forest degradation

National

REDD+

Secretariat

Studies on deforestation and

degradation at State level.

Intermediate Result

Indicator Four:

Reforms in forest

policy, legislation or

other regulations

supported

Yes/No No

Yes Yes Yes Yes Annual Review of support to

forest policies

National

REDD+

Secretariat

Support to review forest acts at

National and State level in two

new states

Intermediate Result

Indicator Five: SESA

mechanism established Yes/No No

No Yes Yes Yes Annual Availability of SESA

report

National REDD+

Secretariat

SESA report will describe the

SESA process undertaken

including establishment of the

SESA mechanism

Intermediate Result

Indicator Six:

Interventions for the

National REDD+

Yes/No No No No Yes Yes Annual

Availability of report

National REDD+

Secretariat

Indicates an outcome of the

approaches defined to mobilize

resources for the

15 Functional in CRS, Ondo and Nasarawa.

27

Strategy are defined,

including approaches

to mobilize resources

for their

implementation

implementation of the National

REDD+ Strategy interventions

Intermediate Result (Component Three): Develop Reference Emissions Level and Monitoring, Reporting, and Verification

Intermediate Result

Indicator Seven:

A forest base map

prepared

Yes/No No No Yes Yes Yes Annual Availability of the

map

National

REDD+

Secretariat

Indicates one of the

intermediate outcomes of the

REL work

Intermediate Result

indicator Eight:

Measurement,

Reporting, and

Verification system for

REDD+ designed

Yes/No No No No Yes Yes Annual

Review of

Measurement,

Reporting, and

Verification system

for REDD+ report

National

REDD+

Secretariat

The report will describe the

components of a Measurement,

Reporting, and Verification

system for REDD+

Intermediate Result

indicator Nine:

Information System

for Safeguards,

Governance and

Multiple Benefits

designed

Yes/No No No No Yes Yes Annual

Review of

Information System

for Safeguards,

Governance and

Multiple Benefits

report

National

REDD+

Secretariat

The report will describe the

components of a System for

Safeguards, Governance and

Multiple Benefits

Intermediate Result (Component Four): Enhance Stakeholder Engagement, Communication, Consultation and Feedback for REDD+ Readiness Process

Intermediate Result

Indicator Ten:

Feedback and

grievance redress

mechanism

established for

REDD+

Yes/No No No16 No Yes Yes Annual

Availability of

FGRM determined to

be appropriate for

REDD+

National

REDD+

Secretariat

This will build on existing

systems as much as possible

16 Analytical work to develop a Feedback and Grievance Redress Mechanism has begun.

28

ANNEX 2: SYSTEMATIC OPERATIONS RISK-RATING TOOL (SORT)

Risk category Rating

1. Political and Governance H

2. Macroeconomic M

3. Sector Strategies and Policies H

4. Technical Design of Project or Program M

5. Institutional Capacity for Implementation and Sustainability S

6. Fiduciary M

7. Environment and Social S

8. Stakeholders S

OVERALL S

29

ANNEX 3: FCPF RESOLUTION APPROVING NIGERIA’S REQUEST FOR ADDITIONAL FUNDING