Forest Carbon Partnership Facility Progress with Due Diligence Activities in Panama Participants Committee Meeting (FCPF PC5) La Lopé National Park, Gabon. March 22-24, 2010

FCPF PC approved the Panama R-PP in June, 2009, and requested to proceed with World Bank due diligence activities for a $3.6 m preparation grant. The new government of Panama took office on July 1, The World Bank has conducted two missions to Panama in July, 2009 and in February 2010 to: – Re-engage the new administration on going forward with the FCPF/World Bank activities; – Define the next steps for the due diligence process of the Bank; – Inclusion of a broader stakeholder consultation and participation (other relevant government entities; Indigenous Peoples; NGOs; rural communities; Donors; research institutes; private sector; etc.) – Define operational steps for ensuring harmonization and coordination with UN-REDD and other donors under a national REDD program. Background

Accomplishments Renewed commitment of the new government to continue with the FCPF Readiness process: two meetings in 9/02 and 2/10 Establishment of the National REDD Working Group: government agencies, private sector, Indigenous Peoples, NGOs, Universities, civil society, UN-REDD and other donors. Articulation of SESA: working session focusing on (i) preliminary stakeholder analysis; (ii) identification of main social and environmental risks; and (iii) documentation of initial dialogue with key stakeholders regarding the process. Progress to Date

Accomplishments (cont.) Institutional arrangements for REDD process management agreed and established: coordination unit with a General Coordinator and 3 supporting staff. Coordinator reports directly to Minister. Fiduciary assessment of ANAMs administrative unit completed by the Bank: unit currently managing a WB GEF project will also provide fiduciary services on R-PP execution. Progress to Date

Preliminary Agreement reached between UN-REDD and ANAM Focal Agency: ANAM UN-REDD document will be used as the basis to prepare a new version of R-PP and this document will be the official Readiness Proposal. The revised R-PP will integrate the findings of the due diligence process. Elaborate a unified consultation plan and strategy. Articulate a unified application of social and environmental standards. Manage preparation phase through a single coordination/administration unit in ANAM A single Project Operational Manual (POM) will be prepared identifying the various funding sources and specific operational steps. Define a single monitoring and harmonized reporting system Coordination with UN-REDD

ANAM: Revise R-PP to reflect key issues addressed by the Bank and the TAP, stakeholder feedback and coordinate activities with UN-REDD. ANAM: Continue discussions with key stakeholders on issues relevant to REDD to ensure a process is in place to address them during preparation. ANAM: Finalize draft ToR for the SESA, and seek feedback and inputs from key stakeholders. World Bank: Prepare Assessment Note, and convene internal review by the Bank. World Bank: Conduct an appraisal mission and prepare Grant Agreement. Next Steps

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