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Note: Baselines will be established in year one.

Annex 4: Detailed Project Description

Argentina: Argentina GEF Sustainable Forestry Development

Background

Argentina harbors significant levels of biodiversity thanks to its broad range of geographic, altitudinal, and climactic regions. Over 10 percent of the 178 terrestrial ecoregions identified for Latin America and the Caribbean lie wholly or partially in Argentina (Dinnerstein, et al). Thanks to these abundant natural resources, the country has a thriving primary production sector. Agriculture (including livestock) and forestry represent 10 % and 3 % of the GDP respectively. The forestry sector is the smallest of these sectors and plantations represent 1.2 million hectares spread over the 23 provinces. Over 90% of these plantations are concentrated in the provinces of Misiones, Corrientes, Entre Rios, Buenos Aires, and the three provinces of Northern Patagonia (SAGPyA 2004 estimate).


Historically, expansion of the plantation area has been highly correlated to federal government support in the form of planting subsidies. However, there is growing evidence that the sector has reached a stage where market forces may now provide the primary motivation for planting. In 1992, with the beginning of subsidies, annual planting increased steadily for eight years. Planting rates in 1992 were estimated at 7,600 ha per year and annual planting continued to climb, peaking in 1998 at about 102,900 ha per year. Between 2000 and 2002, annual planting rates fell to about 20 thousand ha, but increased 30 percent the next year to just over 30 thousand ha per year. The government estimates that there are between 10 and 20 million hectares of land with potential for plantation forests, in addition to 5 million hectares of pasture suitable for agroforestry alternatives. This leaves considerable room for expansion, as well as the opportunity to do so in a way that is balanced and takes into consideration the multiple values of forests and trees.
Incremental reasoning

Within this context, the globally important biodiversity of Argentina is at risk if not adequately planned, managed, and protected through involvement of the public and private sectors and the participation of civil society and academia. Analysis of the institutional capacities indicate a need for training, equipment and clear regulatory and planning frameworks to adequately consider biodiversity and promote it’s growth in a sustainable way. Managers in the forestry sector (both private and public) must be able to understand that biodiversity needs to be considered at ecosystem and landscape level, as well as species level. They must therefore have adequate options to work within this range of possible interventions.


Baseline analysis in Patagonia and Mesopotamia show that some critical areas for biodiversity overlap with areas of ongoing planting, therefore justifying the need for incremental investments in improved forestry practices that demonstrate viable economic alternatives or justify modifications of planting regimes within a biodiversity vision for these regions. Preservation of some areas through protected areas is also an option that should be considered when weighing how the sector should grow. Building capacities and providing planning tools will allow these decisions to be made.
The government of Argentina has proposed an approach that would make the forestry sector more sustainable from an economic, environmental, and social standpoint through the GEF Sustainable Forestry Development Project. The stated Global Environment Objective is to mainstream biodiversity conservation into plantation forestry practices in order to conserve globally and regionally significant biodiversity in production landscapes located in critical ecosystems.. This will be accomplished through the improvement of the capacities of national, provincial, and non-governmental institutions with responsibility over planted forests, as well as producers, researchers, and extension agents. Activities supported will include improved extension programs, information access, technology transfer, testing of management strategies, and improvement in managerial skills. These mainstreamed activities will be blended with investments in the plantation forestry sector made under the IBRD Sustainable Forest Development Project loan. Below is a detailed description by component of the proposed project, including subcomponent costs. (For a more detailed breakdown of costs, please see Annex 5).
Component 1: Institutional Capacities Strengthened (US $2.99 million total, including US$1.94 Million GEF funding)

This component will ensure that national, provincial, and local forestry institutions are developing programs that integrate and promote biodiversity conservation in plantations. The focus of the efforts will be to build capacities and technical skills of forestry officials, as well as individual researchers and extension agents, in areas relevant to the incorporation of biodiversity in plantation forests. In addition it will generate the legal, regulatory and policy framework necessary to mainstream biodiversity and improve on-ground management of the forestry sector. It will promote dialog between private sector, public officials, and academia while disseminating conclusions, and facilitate access to examples of international best practices in the field of biodiversity and plantations. Strategic Environmental Impact Assessments also will be carried out in the project ecoregions to ascertain the broader impacts of forestry activities on the ecosystem. These activities will be coordinated with the parallel loan component, which will address information, policy, institutional development and coordination needs that are required to catalyze and orient the plantation forestry sector toward sustainable development. The three subcomponents are: (i) Capacity building for biodiversity (ii) Organization and planning for biodiversity conservation and (iii). Policies and studies for biodiversity mainstreaming.


Subcomponent 1.1: Capacity building for biodiversity (US$1.22 million GEF funding)

Training of public sector and other institutional players will aim to expand the understanding of biodiversity conservation, not only regarding its global environmental benefits but also in terms of its social and economic potential. Specialized in-depth training on biodiversity and ecosystem integrity and management, environmental impact assessments, and best practices for forest plantations and enrichment planting will be provided for senior federal and provincial officials, as well as for researchers and extension agents. Selected decision makers will also study international best practices in incorporating biodiversity into plantations. This component will also support the acquisition of information systems designed to provide necessary tools for biodiversity-friendly planning to national and provincial authorities. The end result of the project will be a set of federal and provincial officials, as well as extension agents and researchers, with a sound understanding of the technical issues involved in incorporating biodiversity criteria into plantation forests, knowledge of national and international best practices, and the equipment necessary to make appropriate planning decisions.


Activities under this subcomponent include:

  • Training in biodiversity mainstreaming for government officials at national and provincial levels;

  • Training for researchers and extension agents;

  • Provision of information systems equipment.

  • Study tours of national and provincial forestry officials to observe best practices and ecoregional planning and management.


Subcomponent 1.2: Organization and planning for biodiversity conservation (US$0.40 million GEF funding)

This subcomponent will support national and provincial-level dialogs involving broad sectors of civil society and private enterprise in order to create a common vision regarding the integration of biodiversity conservation into plantation forests, and will provide the tools necessary for such planning. At a provincial level, workshops with producers will be complimented by opportunities to study examples of international best-practices in settings similar to those of provincial plantations. The principal outputs will be a shared understanding of the current status of biodiversity in Argentine plantation forests, concerted plans for advancing biodiversity conservation, materials designed to disseminate conclusions and recommendations to a wider audience of technical specialists and policy makers, and tools for eco-regional and land-use planning.


To help provide a framework for planning plantation development at the local level, the project will undertake the preparation of detailed ecological maps through conventional mapping and GIS technology, using landscape ecology concepts. This effort will aim to identify areas vulnerable to plantation expansion and environmentally sensitive areas which, because of their ecological value, should not be subjected to planting, or that will require the incorporation of conservation measures into plantation development to ensure the long-term sustainability of nearby natural habitats.
The entire spatial and attribute database will be conformed to register with the SAGPyA’s national plantation inventory system to create an electronic environmental monitoring system which will be updated regularly, and made available by internet. Links with other relevant inventories and databases will be established, including the new native forests inventory, available through SAyDS, and the National Parks Administration’s (APN) Biodiversity Information System and spatial information on protected areas locations and classifications.
Monitoring is critical to ensuring that the impacts of the measures to be adopted are positive for biodiversity. The project will look at practical methodologies and critical species to determine if the measures are being implemented appropriately and improving the situation versus an initial baseline to be taken at the outset of the project. The monitoring may be carried out in conjunction with government institutions and may also involve other organizations including universities and NGOs with specific capabilities and projects. The system will be maintained at the local level throughout the project, and will be designed to ensure the long-term monitoring needed to assess changes to the ecosystem and serve as feedback to the ongoing planning and management processes.
Lines of action and activities under this subcomponent include:

  • Organization and planning for biodiversity at national levels;

    • Linking of production instances and biodiversity at a national level;

    • Promoting regional forestry policy dialog on biodiversity;

  • Strategic Environmental Impact Assessment at ecoregion level.

  • Organization and planning for biodiversity at provincial and local levels;

    • Planning for biodiversity and forestry in the Alto Parana Atlantic Forest;

    • Planning for biodiversity and forestry in Mesopotamian Grasslands;

    • Planning for biodiversity and forestry in Northern Patagonian ecosystems;

  • Establishment of a monitoring system for biodiversity;

    • Integration of native forest and plantation inventories

    • Strengthening of provincial systems for biodiversity and production monitoring.


Subcomponent 1.3: Policies and forest sector studies for biodiversity mainstreaming (US$0.31 million GEF funding)

This subcomponent is designed to support establishment of the policy, legal, and economic incentive framework on forest plantations, and to devise recommendations for modifications that would further stimulate biodiversity conservation in plantations. Among the topics investigated will be national Law 25.080 and specific provincial policies and legislation related to forests. The project will support work to examine potential weaknesses in the regulatory framework to improve consideration of biodiversity. Suggestions for potential improvements in plantation policy, EIA, and tax laws and their regulations will be considered while looking for opportunities for amendments to encourage biodiversity conservation.


The impact of the existing incentive structure on biodiversity in plantations will also be studied. Government promotion for forest plantations and enrichment planting, economic and financial incentives for large plantations, and the existence of environmental funds all influence plantation planning and the incorporation of biodiversity-friendly practices into management techniques.
National and provincial policy can also be an important force for expanding plantations and private investment. In some provinces such as Neuquen and Misiones, there are subnational incentive systems that will either forward subsidies or may supplement the national subsidy system. Taxes may also be playing a role as incentives or disincentives that can be analyzed for their role and link to biodiversity conservation. The policy framework will be analyzed and proposals prepared under the project for possible modifications needed to lead plantations in a direction compatible with biodiversity conservation.
Lines of action and activities under this subcomponent include:

  • Evaluation and proposals for legislation;

    • Improve environmental standards in the incentive system;

    • Policy and legal reform at the provincial level;

    • Development of legal protections for globally important ecosystems;

  • Analysis of the impact of legislation and incentives on biodiversity;

  • Basic analysis for a sustainable forestry policy for the plantation sector;

    • Incorporation of biodiversity in national and provincial forest policy.


Component 2: Development and dissemination of biodiversity-friendly plantation practices and technology transfer (US $2.01 million, including US$1.09 million GEF funding)

This component will support the design and management practices that benefit biodiversity in native and exotic forest plantation settings, the economic analysis of different approaches, and the dissemination of best practices. The field testing of some of these practices will be piloted in the provinces while others, based on a demand-driven model will be tested in Component 3. The subcomponent will also strengthen the network of native seed banks and nurseries necessary to support native forest plantations. These incremental investments are needed since native species are at a disadvantage due to higher seedling costs (in some cases up to 10 times the cost of exotic seedlings) and need for genetic improvement of seeds for plantation settings. The project will facilitate a series of workshops designed to establish a set of standards for biodiversity conservation in the forestry sector that are agreed upon by major stakeholders, and will sponsor a major regional workshop to disseminate lessons learned and best practices. In order to multiply the reach of the project in terms of number of people trained and duration of impact, this component will also support the establishment and implementation of training programs for extension agents and of university programs in biodiversity-friendly forestry.


The activities implemented under this component are complementary to those funded by the partially-blended lending project. The parallel component of the loan will support applied research and technology transfer to generate a body of knowledge useful to producers, based on a “demand driven” model. The development of information on aspects such as pest management, and applied genetic research on native and exotic tree species, will be incorporated into best management practices to be extended to private sector forestry operations of all sizes. It will also promote partnerships with the private sector and provincial institutions. To get the ‘best practice’ message out, government certified private forestry extension services will be nurtured for large producers, with a similar system being promoted on a cost sharing basis for medium and small -scale producers. The aim would be to shift the fiscal burden for research and extension to the beneficiaries, that is, the private sector, with the state acting as regulator.
The results expected under Component 2 of this GEF project will be achieved through two subcomponents:
Subcomponent 2.1: Forest Practices for Biodiversity (US$1.01 million GEF funding)

This subcomponent is designed to advance specific biodiversity-friendly techniques in plantation management with an emphasis on elements of the ecosystem which are most fragile or endangered, and disseminate lessons learned and best practices. These best practices will be integrated into the training and extension modules being supported by the project.


Included under this subcomponent are studies to further understand the technical dynamics related to plantations composed of native species, and economic analysis of the alternative approaches for the design and management of native plantations. The subcomponent will also support work on strategies to promote seedbanks and nurseries for native forest species, further facilitating the establishment of native plantations. To further promote ecologically-sound forestry practices, field trials with native species, including nursery and establishment trials as well as investigation of species growth and species behavior in mixed stands, will be carried out. Some promising groups of species to be assessed include: Nothofagus spp., Austrocedrus chilensis (Patagonia, Magellanic Forests); Tabebuia spp., Cedrela spp., Cordia trichotoma, Balfourodendron riedelianum (Alto Parana Atlantic Forest). Multisectoral roundtable workshops will be held to discuss the establishment of standards for biodiversity-friendly practices in the forestry sector and to disseminate best practices drawn from studies and field trials. The work done under this subcomponent will also be disseminated, and the dialog on best practices continued, at a major international workshop linked to the World Forestry Congress to be held in Argentina in 2009. The workshop will bring together forestry experts to discuss issues related to biodiversity in plantations thereby assisting in the replication and cross-sharing of experience at regional and global levels.
Lines of action and activities under this subcomponent include:

  • Plantation methodology development with emphasis on biodiversity conservation;

    • Development and promotion of plantations with native forest species;

    • Strengthening of seed bank networks and native species nurseries;

  • Development of standards and best practices for biodiversity in plantations;

    • Development and dissemination of standards and best practices for biodiversity;

    • Development and dissemination of management alternatives.

    • Piloting biodiversity-friendly practices and native plantations in provinces.


Subcomponent 2.2: Technology Transfer for Biodiversity (US$75 thousand GEF funding)

This subcomponent will develop training programs in order to provide current agriculture and forestry extension agents with the tools they need to promote the integration of biodiversity into productive practices. As these extension agents have the greatest degree of contact with producers in the forestry and agricultural sectors, and are frequently their primary source of technical assistance and information, the promotion of biodiversity-friendly practices by these agents is likely to have far-reaching implications on the ground. Subcomponent 2.2 will also support the design and implementation of programs promoting biodiversity-friendly forestry practices in universities and technical/vocational schools in Patagonia and Mesopotamia, the two primary forestry regions in the country. By training both extension agents and the next generation of researchers, policy-makers, and producers in techniques which promote the conservation of native biodiversity in plantation forests, this subcomponent will create a multiplier effect, reaching many times the number of people trained over the next few decades. For increased sustainability and replication at a national level, it is linked and mainstreamed into the IBRD investments in extension that will pilot and strengthen forestry extension systems.

Lines of action and activities under this subcomponent include:


  • Development of extension program to support biodiversity conservation;

    • Preparation of Technology Transfer Program;

  • Development and strengthening of program for forestry schools and universities;


Component 3: Support for adoption of biodiversity-friendly plantation forestry practices (US $8.425 million, including US$3.34 million GEF funding)

This component will support the incorporation of techniques which support biodiversity conservation into the practices of small, medium, and large producers. All producer groups generate impacts on biodiversity in plantation ecosystems, yet they require very different engagement strategies due to a highly disparate set of characteristics and needs. In all cases, in order to work with beneficiaries with the greatest degree of interest and ownership, the component will work through demand-driven subprojects proposed by the beneficiaries themselves within guidelines established by the project. The component also includes an extensive environmental education program for producers and other stakeholders, discussions on themes critical to biodiversity conservation in plantation ecosystems, and monitoring and evaluation in the effects of the forestry projects and silvopastoral projects on ecosystems. Support and preparatory work for the creation of protected areas, private reserves, and ecological corridors in areas with high biodiversity value that border on plantation areas will also complement these efforts in order to foment the protection of globally important biodiversity within the productive landscape.


The implementation of this component will entail a demand-driven model in which, provinces, local governments, academic institutions, and NGOs will compete for funding of projects that are designed to maximize biodiversity, provide economic incentives to protect and use native species, and improve biodiversity within exotic plantation settings. The demand driven model was selected to capitalize on the many diverse opportunities that exist for mainstreaming that were encountered during the preparation process. This provides the opportunity to make incremental, catalytic investments in projects that have established ties in the communities. A special set of selection criteria will be developed to achieve greatest levels of participation, co-investment, and pertinence with the goals of mainstreaming biodiversity in plantation settings.
Component 3 of the GEF project will support the following subcomponents:
Subcomponent 3.1: Pilot Projects for Mainstreaming Biodiversity in Plantation Landscapes (US$3.05 million GEF funding)

Generating income from conserving biodiversity at the plantation level will require the promotion of sustainable production alternatives. This is particularly important for the small- and medium-size initiatives for which the sustainable use of certain portions of property may require precluding other uses which are more profitable in the short-term. This alternative production subcomponent seeks to support the mainstreaming process by converting biodiversity conservation initiatives into income generating opportunities for small- and medium-scale producers. (Small producers in Argentina have less than 50 ha, while medium-scale producers may have from 50 to 1000 ha.)


Examples of the plantation activities which may be promoted, depending on the needs and characteristics of the producers, are the planting of native species, establishment of biodiversity corridors, use of sterile clones, enrichment planting, incorporating conservation practices into plantation management (such as thinning and pruning, varying age structures in the plantation, maintaining habitats through retention of debris), reintroduction of native corridors, and eradication of exotics in native stands, use of non-timber forest products from plantations, among others. For subsistence farmers, the emphasis will be on establishing more sustainable production on their holdings in the form of agro-forestry systems. Eligible types of activities include, for example the production of yerba mate, ornamental plants, medicinal plants, honey, stevia sweetener, palm hearts, and grazing under forest cover. These alternatives must be beneficial from both economic and biodiversity standpoints. The designs may benefit from evaluations (to be generated in Component 2 primarily) to help boost their viability from a financial, environmental, and social point of view. To support pilot activities and other complementary initiatives, the dissemination of biodiversity values among the landowners and younger generations in the targeted ecoregions through environmental education campaigns would support the long-term changes and provide the proper backdrop for the practices to be adopted. Public awareness campaigns would also be incorporated to support the conservation of ecosystems in relation to plantations and to disseminate the conservation planning visions developed in other components of the project.
Following the implementation of the public awareness exercise carried out in 6 to 10 target areas (3-5 in both Patagonia and Mesopotamia) through the subcomponent, including the basic principles of conservation within productive landscapes and sustainable development, SAGPyA will be responsible for disseminating the relevant information to the public, specifying the objectives and procedures of the subcomponent. Proposals would be submitted to SAGPyA on a competitive basis and evaluated and approved using the following general criteria; (i) degree to which the proposed activity contributes to biodiversity conservation objectives and its mainstreaming in the productive landscape, (ii) technical soundness and quality, (iii) economic/financial viability, (iv) arguments of sustainability, (v) community support for the proposals, (vi) level of co-financing (minimum of 1:1 required), (vii) capacity to successfully implement the proposed intervention(s). The sustainable production activities are designed to have positive environmental impacts and any adverse impacts would be screened out during the selection process. (In cases where other governmental and non-governmental programs might be available, proposals would be required to include and show such support, to avoid duplication.)
Proposal submission would be open to all interested parties including NGOs, research institutions, and farmers and land-holders, the latter probably in associative arrangements. The project technical managers for both Mesopotamia and Patagonia will have the responsibility to initially evaluate the proposals following the established evaluation and selection criteria. Recommended proposals will be forwarded to the component and funds coordinators for further evaluation; final approval would require the written agreement of SAGPyA, the project coordinator, and the Technical Managers. Following approval a contract would be signed between SAGPyA and the successful bidder. The SAGPyA, through the project, would monitor each contract and make payments as warranted. Compliance will be audited by a consultant acceptable to the Bank. The provinces will play an important role in project selection through their participation in the provincial mesas forestales (MFs) and also participate in the supervision of the sub-component activities under the responsibility of SAGPyA.
The best practices developed and results of the field trials conducted under other components of the project will be monitored and an intensive review at mid-term carried out on sample areas in order to conduct feedback to implementation. This will help to ensure that the forestry techniques and practices are effective and practical under actual field conditions. Economic and social viability of the practices must also be evaluated for enhancing sustainability and ensure sustainability. This subcomponent will provide feedback to ensure local knowledge and needs are incorporated into best management practices, thus ensuring greater adoption by the local landowners and plantation operations involved in the program.
Lines of action and activities under this subcomponent include:

  • Pilot subprojects for biodiversity conservation incentives;

  • Environmental education/public awareness campaigns;

  • Monitoring of biodiversity in pilot mainstreaming projects in the primary plantation regions of Argentina.


Subcomponent 3.2: Environmental Management of Forest Production (US$0.30 million GEF funding)

While small producers are extremely important for their impact on biodiversity through forestry and agroforestry activities, partnerships between large forestry corporations, producers and national/local authorities are also necessary for mainstreaming biodiversity into the plantation forestry sector. As both large individual landowners and corporate plantations have potential to impact biodiversity, both are considered and included in the project design. This subcomponent supports greater dialogue with private forestry companies and other large stakeholders through provincial and local roundtables focused on issues related to the incorporation of biodiversity in large plantations, as well as the drafting of standards for large forestry corporations. The private sector can provide both technology and financial resources for the implementation of best practices; if the public sector recognized the resulting demonstrations of corporate and social responsibility, it can lead to the quicker adoption of standards and reduce potential social conflict.


This subcomponent will also seek to further the dialog on forestry certification systems, and will provide technical assistance for those producers that decide to pursue certification. SAGPyA has already begun development of a manual of best practices that has served as input into the proposed Forestry Stewardship Council (FSC) standards for Argentina. The GEF will provide a needed push for dissemination and wider adoption of best practices and certification as part of mainstreaming, together with support to its participation and compliance with the provisions of the Montreal Process. Initially the standards of best practices may be voluntarily, adopted followed by certification after the practices have been “mainstreamed” throughout the forestry sector.
Subcomponent 3.2 will also seek to establish buffer and transition areas at the borders of large private plantations in areas with high biodiversity value. The identification of new areas where protected areas are needed, both private and public, in the context of plantation landscapes will be supported through technical studies and other activities to catalyze an increase core biodiversity areas in these regions. (The actual establishment of protected areas is not to be funded by the project.) The establishment of private reserves and promotion of tourism (both local recreational and more upscale nature tourism) as a result of ecoregional planning processes will also be included among potential alternatives for communities, companies, and individuals with interest in and capacity for investment in these ventures. The IBRD investment plans to support development of silvopastoral systems (i.e. plantations within livestock production landscapes). The GEF increment will monitor these alternatives to evaluate if there are benefits to biodiversity of these types of systems and what methods are least impacting for dissemination in globally important grassland ecosystems.
Lines of action and activities under this subcomponent include:

  • Regional Forestry Council for biodiversity;

    • Integration of the biodiversity concept in planning process and private reserves;

  • Promotion of certification to promote biodiversity conservation;

    • Analysis of certification process for plantations;

  • Monitoring of biodiversity in agrosilvopastoral ecosystems;

  • Support for the identification and catalyzing new protected areas options and buffer zones in plantation regions.



Component 4: Project Implementation, Monitoring and Evaluation (US$0.71 million total, including US$0.57 million GEF funding)

This component will administer implementation of the GEF Sustainable Forest Development project, including financial management, procurement, and administrative tasks, as well as technical supervision and oversight and monitoring and evaluation. Component 4 will support the project implementation team and its activities, as well as those of other parties related to implementation and monitoring. More detail on institutional arrangements, financial management, and procurement can be found in Annexes 6, 7, and 8.


The GEF Sustainable Forestry Development Project will share offices and a team with its IBRD counterpart project and the SAGPyA, ensuring close coordination in the implementation and monitoring of the two projects within the overall framework of the responsible line agency. This will ensure that the maximum degree of synergy is achieved, that modifications to one project can quickly be reflected in the other if needed, and sustainability of actions are transferred to the institution. It will also result in significant cost savings for both projects.
Subcomponent 4.1: Grant Administration (US$0.49 million GEF funding)

This subcomponent will support the efficient and effective implementation of the project, including the administration of GEF and counterpart funds, execution of technical activities financed under the grant, and procurement of goods and services. This subcomponent will permit the hiring of a core project team (see Annex 6 for details) to execute the project. This team will also be responsible for maintaining relations with national and provincial governments, private sector organizations, and NGOs; participating in relevant national and international events; and disseminating information on the project and its achievements.


Included under this subcomponent are:

  • Hiring of core project administration team;

  • Financial administration of grant funds;

  • Technical administration of project activities;

  • Procurement activities.


Subcomponent 4.2: Monitoring and Evaluation (US$74 thousand GEF funding)

This subcomponent will support the design and implement a program to collect baseline data, monitor the outcomes of project activities, evaluate the results, and incorporate the findings into the implementation of the project. The subcomponent will also include activities relating to the mid-term review and final evaluation of the project. The results of ongoing monitoring and evaluation will be disseminated at local, national and global levels to support the goals of sustainability.


Included under this subcomponent are:

  • Development and implementation of a monitoring and evaluation program;

  • Mid-term review and final evaluation of project.

Annex 5: Project Costs



Argentina: Argentina GEF Sustainable Forestry Development

Table 5.1 summarizes the financing for the GEF Sustainable Forestry Development Project from all sources. Table 5.2 presents a more detailed summary of the GEF financing.


Table 5.1 Project Financing for All Sources

Project Cost By Component and/or Activity

US$ Million

GEF

Govt.

IBRD

Total

1) Institutional Capacity Strengthening

1.94

0.48

0.57

2.990

2) Improve Forestry Practices and Technology Transfer for Biodiversity

1.09

0.27

0.65

2.01

3) Biodiversity-conservation and Forestry

3.34

3.83

1.25

8.42

4) Project Implementation and Monitoring & Evaluation

0.57

0.14




0.71

Unallocated

0.06

0.02




0.08

Total Project Costs

7.00

4.74

2.47

14.21

*Government cofinancing includes both in-kind and cash cofinancing. Beneficiary cofinancing for subprojects has been included in the government cofinancing.




Table 5.2: Project GEF Financing

Project Cost By Component and/or Activity

Local

US $million



Foreign

US $million



Total

US $million



1) Institutional Capacity Strengthening

1.195

0.537

1.732

2) Improve Forestry Practices and Technology Transfer for Biodiversity

0.830

0.083

0.913

3) Biodiversity-conservation and Forestry

2.659

0.000

2.659

4) Project Implementation and Monitoring & Evaluation

0.537

0.026

0.563













Total Baseline Cost

5.220

0.647

5.867

Physical Contingencies

0.082

0.003

0.085

Price Contingencies

0.983

0.065

1.047

Total Project Costs1

6.285

0.715

7.000

Total Financing Required

6.285

0.715

7.000



1Identifiable taxes and duties are US$m ___, and the total project cost, net of taxes, is US$m___. Therefore, the share of project cost net of taxes is ___%..
Annex 6: Implementation Arrangements

Argentina: Argentina GEF Sustainable Forestry Development
Institutional Arrangements

The GEF Sustainable Forest Development Project will be financed by a $7 million grant from the Global Environment Facility, implemented through the World Bank, to the Government of Argentina. The grant funds will be deposited directly into a special account in the Banco de la Nación. The national counterpart for the project is the Secretariat of Agriculture, Livestock, Fishing, and Food (Secretaría de Agricultura, Ganadería, Pesca y Alimentos, or SAGPyA). A graphic illustration of the institutional arrangements for the project is depicted below. (Please note that for the sake of simplicity, financial management arrangements can be found in full detail in Annex 7.)





Executing Agency

The GEF Sustainable Forest Development Project will be implemented by the Secretariat of Agriculture, Livestock, Fishing, and Food (SAGPyA), which will be responsible for the technical, financial, and administrative oversight of the project as a whole. Within SAGPyA responsibility for the project rests specifically with the Forestry Directorate. A specialized team located within the DF will be responsible for the direct implementation of project activities, as well as for financial management and procurement (see further details below).


For subprojects working with small and medium sized producers (under Component 3), most activities will be directly implemented by a set of specialized service providers contracted by the administrative unit.
Consultative and Advisory Bodies

A stakeholder forum known as the Mesa Forestal (Forestry Roundtable) will be created to incorporate stakeholder perspectives into the official forestry dialog. The Mesa Forestal will serve as a type of advisory council to the project, making sure the views of a diverse set of actors involved in the plantation forestry sector are incorporated into project implementation. The Mesa Forestal will also allow a more effective dissemination of project information and results among different stakeholder groups.


Other governmental institutions will play an advisory role for relevant aspects of the project such as the Institute for Agricultural Technology (INTA), an important research institution with much experience in the forestry sector. Academic institutions and NGOs are expected to serve in similar consultative roles during implementation.
Technical Advisory Committee

The project will form a four-member Technical Advisory Committee. Members will be recognized leaders in the fields of natural resource management and biodiversity conservation in each of the target regions of the project.


Committee members will be proposed by academic institutions, extension agencies and others involved in land and or plantation management. The DF will review the proposed candidates and select those with the most appropriate profiles for the work to be on the committee.
The functions of the Technical Advisory Committee will be to:
a) Review the 6 month and annual reports provided by the monitoring and evaluation activity and conduct interviews with project and agency specialists involved in the various components;

b) Provide feedback to the monitoring and evaluation process and make recommendations for adjustment of monitoring techniques, as may be required, in order to enable the effective use of the monitoring system to guide project implementation;

c) Advise the administrative unit on the results of the monitoring assessment, and their potential impact on measures needed to promote the conservation of biodiversity in plantation forests.
The committee will provide feedback within one month of the receipt of the monitoring reports and conduct a formal meeting with the administrative unit to discuss their findings. A brief joint report of the evaluation containing the major issues and recommendations will be elaborated and included as an annex to the periodic progress reports submitted to the Bank.
Associated Project

The GEF Sustainable Forest Development Project is partially blended with an IBRD lending project of the same name. The two projects were designed in close consort, and will be implemented in close coordination by the same project team working out of the same office. This will increase the synergies between the projects, allowing for close coordination of activities while reducing costs.


The overall objective of the IBRD Sustainable Forest Development Project would be to improve plantation production and management, foster rural development and enhance the environmental values of plantation forestry in Argentina. This it would do by improving the policy framework, strengthening institutional capacity at the local level, improving information delivery services, improving the supply of improved genetic material, establishing a framework for forest certification, facilitating the involvement of small and medium-scale farmers, land owners and producers in plantation and agro forestry by institutionalizing environmental safeguards and best practice into plantation management.
Project efforts would focus on (i) the rural poor, whose livelihoods depend on agriculture; (ii) medium- and small-scale producers in the forest sector, with limited access to technology needed for improving productivity; and (iii) innovative medium-scale farmers working in silvo-pastoral systems. In addition, the project would aim to bolster the technical capacity and outreach of public organizations working in plantation forestry to provide technical, policy and regulatory leadership within the sector.
Implementation Arrangements
The proposed GEF project will be implemented by the Direccion de Forestacion of the SAGPyA. The same mechanisms will be used for implementation of. the proposed IBRD loan. The SAGPyA teams are familiar with the technical and institutional requirements of the proposed projects, which are similar to those which the unit carried out under the Forestry Development Project. By utilizing established human capacity, systems, and procedures, these arrangements will greatly reduce the initial training and costs required to correctly implement the project and will assure much higher quality administration and management. The technical and supervisory capacity of this unit has been evaluated and found to be sound.
During implementation, the unit will be composed of twelve people, eleven of whom will work full or part time on the GEF Sustainable Forestry Development Project. An Executive Coordinator is responsible for oversight of the entire unit and its operations. A Technical Manager will be responsible for the technical, financial, and administrative activities required to implement the activities funded under the GEF grant. A counterpart Technical Manager will be responsible for the execution of the partially-blended loan project. Two Technical Assistants will be hired to contribute to the technical execution of the project. The two projects will share a team composed of an accounting specialist, accounting assistant, procurement specialist, monitoring and evaluation specialist, two administrative assistants, and clerk. With the exception of the Technical Manager for the GEF project, two regional-program managers, and one administrative assistant, all administrative unit staff will be financed either through the IBRD loan or through local funds. The GEF Technical Manager will provide overall technical leadership to the GEF project, direct the activities of the two regional program technical assistance managers; serve as contact point for international organizations, the national government, NGOs and private industry and the participating provincial governments; backstop the work of the technical advisory committee; and; in cooperation with the Executive Coordinator prepare the required documentation for the mid-term review and final evaluation at the end of the project’s tenure. A diagram of the unit is below:

The administrative unit team will be responsible for project coordination, administration, and management, as well as for procurement and financial management. (For full details about these last two functions, please see Annexes 7 and 8.) This includes executing of national activities, overseeing the execution of provincial-level activities, coordinating with national authorities, establishing relationships with related projects and organizations, representing the project at relevant events, hiring consultants, monitoring results and impacts, and interacting with civil society. Other responsibilities include fostering cooperation with other partners, promoting the exchange of biodiversity and forestry information, and coordinating and recording counterpart financing. The administrative unit will also prepare annual budgets, annual operating plans and procurement plans, as well as technical project reports, for submission to the Bank.

The Forestry Directorate of SAGPyA will be directly involved in the development and execution of the project given the objectives of long-term mainstreaming and policy work For monitoring of project results and impacts, the administrative unit team will draw on the resources and experience of SAGPyA, as well as specialized programs, consultancies, and participatory processes. Institutions with specific capacity in monitoring, evaluation and systematizing information such as the SAGPyA geoprocessing office, as well as other organizations including the academic sector, research institutions, and specialized NGOs, will be incorporated into a coherent framework tied to project outcomes as well as the global environmental objectives.
The provincial governments, through their environmental bureaus, will be involved in the execution of provincial-level activities. Non-governmental organizations of national and regional/local scope may take part in components such as environmental education, outreach, biodiversity monitoring and other aspects specifically related to their expertise and interest.

The monitoring and evaluation of project results will draw on the resources and experience of SAGPyA, as well as specialized programs, consultancies, and participatory processes, for the ongoing monitoring and evaluation of project results. Institutions with specific capacity in monitoring, evaluation and systematizing information such as the SAGPyA geoprocessing office, as well as other organizations including the academic sector, research institutions, and specialized NGOs, will be incorporated into a coherent framework tied to project outcomes as well as the global environmental objective. The results of ongoing monitoring and evaluation will be disseminated at local, national and global levels to support the goals of sustainability, and will be incorporated as necessary into the project implementation strategy. Annex 3 of this document details the project monitoring strategy, including the use of the SP2 Biodiversity Mainstreaming Tracking Tool.



Associated Project

The GEF Sustainable Forest Development Project is partially-blended with the lending Sustainable Forestry Development Project, financed through an IBRD loan. The two projects have been closely coordinated since inception, and as detailed above will share the same implementation team. This will help ensure that all activities and complimentary but not duplicative, and will create synergies in the shared ambits of action.

Annex 7: Financial Management and Disbursement Arrangements

Argentina: Argentina GEF Sustainable Forestry Development
A Financial Management assessment is underway in accordance with OP.BP 10.02 and applicable policies and guidelines.10 This Annex states the findings and agreements at the moment of the PAD distribution and will be updated once the assessment is completed.

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