Indonesia: Preparation of the Forest Investment Strategy

Sovereign Project | 44401-012

Summary

The objective of the S-CDTA is to assist the Government of Indonesia (GOI) in preparing a Forest Investment Strategy (FIS) to be funded through the Forest Investment Program (FIP) of the Climate Investment Funds (CIF). The Project is not included in the Country Operations Business Plan (COBP) but conforms to the Indonesia Climate Change Sectoral Roadmap and ADB Operational Priorities for Addressing Climate Change, which identified reducing emissions from deforestation and forest degradation (REDD) as a key objective.

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Project Name Preparation of the Forest Investment Strategy
Project Number 44401-012
Country Indonesia
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 7776-INO: Preparation of the Forest Investment Strategy
Strategic Climate Fund US$ 225,000.00
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change
Sector / Subsector

Agriculture, natural resources and rural development - Agricultural policy, institutional and capacity development

Gender Equity and Mainstreaming No gender elements
Description

The objective of the S-CDTA is to assist the Government of Indonesia (GOI) in preparing a Forest Investment Strategy (FIS) to be funded through the Forest Investment Program (FIP) of the Climate Investment Funds (CIF). The Project is not included in the Country Operations Business Plan (COBP) but conforms to the Indonesia Climate Change Sectoral Roadmap and ADB Operational Priorities for Addressing Climate Change, which identified reducing emissions from deforestation and forest degradation (REDD) as a key objective.

In June 2010, Indonesia has been selected as one of the five pilot countries for the FIP. The FIP is a targeted program of the Strategic Climate Fund (SCF), one of two funds under CIF. FIP supports the efforts of developing countries to reduce emissions from deforestation and forest degradation, conservation and sustainable management of forests, and enhancement of forest carbon stocks (REDD+). It provides scaled-up financing for REDD+ readiness reforms and public and private investments identified through national REDD+ readiness or equivalent strategies.

In July 2010, the GOI has requested a grant from the FIP to support preparation of FIS, to be programmed in cooperation with ADB and the World Bank Group (WBG) according to CIF administrative norms. The FIS will be based on existing country strategies and programs, including the national REDD strategy. The FIS will then form the basis for an FIP resource envelope for individual projects. The notional resource envelope for FIP is about $70 million. In August 2010, ADB agreed to facilitate preparation of the FIS through this proposed S-CDTA.

Project Rationale and Linkage to Country/Regional Strategy The proposed technical assistance will help GOI to develop FIS with a view to effectively implement its REDD+ architecture, institutions, operational procedures and practices, consistent with national development goals and climate change objectives. It will identify a project pipeline along with a rationale for the proposed allocation of FIP resources.
Impact Enhanced carbon storage and sequestration benefits for sustainable livelihoods
Project Outcome
Description of Outcome A robust trategy for forest investments agreed by the Government, Forest Investment Program Sub-committee and the Multilateral Development Banks.
Progress Toward Outcome A Forest Investment Plan for $70 million ($37.5 million grant and $32.5 million concessional credit) with additional co-fianncing of nearly $150 million was agreed upon by the Government, Forest Investment Program (FIP) Sub-committee and the Multilateral Development Banks. The investment plan was submitted in October 2012, and endorsed by the FIP subcommittee on 5 November 2012.
Implementation Progress
Description of Project Outputs Synthesis document on climate policies, strategies, and plans relevant to forest carbon management; candidate investment pipeline; and, Forest Investment Strategy
Status of Implementation Progress (Outputs, Activities, and Issues)

* Preparation grant was approved in January 2011; Five individual consultants were recruited by May 2011; An inception meeting was held on 15 April 2011;

* The Terms of Reference for the Joint Mission by MDBs, and budget estimates for MDB supervision were prepared and approved by the MDB committee.

* Coordination within different branches of the government on REDD+ issues needs to be improved. Weak coordination is one of the reasons for slow progress.

* The first joint mission, led by the Government and assisted by ADB, World Bank and IFC, was conducted from 13 to 22 July 2011. Consulting services of individual experts are ongoing.

The second Joint Mission was held from 13 to 22 December 2011 followed by a technical mission from 18 to 20 January 2012.

Several technical missions were held between January and October 2012 to discuss and refine forest investment plan.

An investment plan comprising climate policies, strategies, and plans relevant to forest carbon management; candidate investment pipeline; and plan of action for implementation of various projects was prepared in October 2012.

Forest Investment Plan was endorsed by the FIP subcommittee on 5 November 2012. The TA account was financially closed on 22 August 2014.

Geographical Location
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design Consultations with various groups of stakeholders -- line ministries, development partners, civil society organizations, and the private sector were conducted.
During Project Implementation Consultations with various groups of stakeholders -- line ministries, development partners, civil society organizations, private sector, and local communities were continued throughout 2012. The forest investment plan was endorsed by the FIP subommittee on 5 November 2012. Preparation of projects by various MDBs including ADB are in progress. Simultaneously, additional stakeholder consultations are in progress. In order to allow for such additional consultations with stakeholders, the TA has been extended up to 30 June 2014.
Business Opportunities
Consulting Services The S-CDTA will be implemented over 6 months and will require 20 person-months of national consultants. Five qualified consultants will be recruited individually by ADB in accordance with the Guidelines on the Use of Consultants (2010, as amended from time to time), in consultation with the Ministries of Forestry, Finance and the WBG. Consultants will have expertise in various areas of forest management, community development, and carbon trading. Consultant services will be performed on an intermittent basis. Consultant contracts will be based on deliverables/outputs and consultants may be contracted for shorter periods than allocated.
Procurement n/a
Responsible ADB Officer Ancha Srinivasan
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Environment, Natural Resources & Agriculture Division, SERD
Executing Agencies
Asian Development Bank6 ADB Avenue, Mandaluyong
Metro Manila, Philippines
P.O. Box 789, 1099 Manila,
Philippines
Timetable
Concept Clearance 26 Feb 2010
Fact Finding 28 Feb 2010 to 13 Mar 2011
MRM -
Approval 17 Jan 2011
Last Review Mission -
Last PDS Update 30 Sep 2014

TA 7776-INO

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
17 Jan 2011 - 17 Jan 2011 30 Jun 2011 30 Jun 2014 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
0.00 225,000.00 5,000.00 0.00 0.00 0.00 230,000.00 17 Jan 2011 169,783.35

Safeguard Documents

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Evaluation Documents

See also: Independent Evaluation

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