1. Project Cycle IBRD, CDM & GEF December 2005

2. Structure of presentation Why mitigation is important Why mitigation is important The project cycle in lending operations The project cycle in lending operations Project cycle in BioCF Project cycle in BioCF Project Cycle in GEF Project Cycle in GEF Concluding remarks Concluding remarks

3. IBRD Lending Identification Identification Preparation Preparation Appraisal Appraisal Approval Approval

4. IBRD process Identification 1. Identification Mission Send SMOs two weeks before departure 2. Select Quality Reviewers Before #3 3. Draft PCN and concept-stage PID & ISDS Before #4 4. Issue Concept Package As agreed with Country Director

5. IBDR process Identification 5. Concept Review Meeting (CD or ROC) 8 days after #4 6. Minutes of Concept Review Meeting Circulated 5 days after #5 7. Approval of PCN Review Minutes by CD 3 days after minutes are circulated 8. Send PID and ISDS to InfoShop 5 days after CD approval of minutes

6. IBRD process Preparation Strategic context Technical project preparation Social and Environmental Safeguards Financial Management Procurement Capacity Assessment Economic Assessment Institutional Arrangements Risk Analysis Monitoring and Evaluation System.

7. IBRD process Appraisal 9. Circulate Draft PAD (or relevant sections) Prior to QER (Quality Enhancement Review) 10. Quality Enhancement Review Timing at discretion of TTL and SM 11. Pre-appraisal Mission Send SMOs two weeks before departure 12. Draft PAD Upon return from mission

8. IBRD process Appraisa l 13. Draft Legal Document (by Lawyer) 7 days after #10 (**) 14. Issue Decision Package 8 days before #15 15. Decision Meeting 16. Minutes of Decision Meeting 3 days after #15 17. Send updated PID to InfoShop, If necessary 3 days after #15

9. IBRD process Appraisal 18. Authorization to Negotiate in the Field (by LEGxx) 3 days after #15 19. Appraisal Mission 10 days after #15 20. Appraisal Aide Memoire Upon completion of #19

10. Approval 21. Draft Letter of Sector Policy (by borrower) Before #23 22. Authorization to Negotiate at HQ (by LEGxx) Before #23 23. Notice of Invitation to Negotiate Before #24 24. Negotiations (HQ/field) 3-5 days

11. Approval 25. Minutes of Negotiations Upon completion #24 26. Status of Negotiations 20 days before Board presentation 27. Statutory Committee Report (by Lawyer) Signed by RVP/LEG 14 days before #30 28. Board Package to CD and RVP 20 days before Board presentation

12. Approval 29. Board Documents to SECBO/Printshop 18 days before Board presentation 30. Distribution to Board 13 days before Board presentation 31. EM on Board Attendance and Speech, if applicable 4 days before Board presentation 32. Speech, Questions from EDs, Pre-Board Meeting 1 day before Board presentation 33. Board Presentation (As scheduled)

13. BioCF Process Preparation Preparation Carbon asset due diligence Carbon asset due diligence Validation process Validation process Appraisal Appraisal Negotiation Negotiation Implementation, start up Implementation, start up Supervision & periodic verification Supervision & periodic verification Project completion Project completion

14. BioCF Process Preparation PIN review by Fund Management Unit Initial due diligence Decision to proceed Preliminary risk matrix Draft PCN Host country endorsement Inclusion in portfolio Fund Management Committee and Participant Committee. Letter of Intent

15. BioCF Process Carbon Asset Due Diligence Project Design Document (PDD) By project participants Additionality, baseline and monitoring plans Fund Management Unit review (QC) Documents for Validation prepared Project participants, Fund Management Unit, and Bank team. Bank undertakes project preparation activities

16. BioCF process Validation Process CF Unit contracts Independent Validator Designated Operational Entity, DOE DOE initiates validation Documents made public for comments (30 days) DOE issues report and opinion Validation report issued only if Meth are approved.

17. BioCF process Appraisal by Bank Team Technical project preparation Social and Environmental Safeguards Financial Management Procurement Capacity Assessment Economic Assessment Institutional Arrangements Risk Analysis Monitoring and Evaluation System. Additionality Baseline Methodology Monitoring Methodology

18. BioCF process Negotiation Draft and negotiation of terms Term Sheet Project due diligence completed ERPA negotiations ERPA signature

19. BioCF process Implementation, construction, start up Project registration CDM-EB Start project activities Independent initial verification DOE Project monitoring following MP Project participants

20. BioCF process Supervision and Periodic Verification Bank team supervises until forest established Periodic verification/certification DOE BioCF pays verified ERs ERs distributed to BioCF investors

21. BioCF process Project Completion Yet to be defined

22. GEF Process Identification Identification PCN & GEF Pipeline Entry:PCN & GEF Pipeline Entry: PDF Grant:PDF Grant: Preparation/Approval Preparation/Approval QER:QER: GEF STAP Expert Review & GEF Work Program Entry:GEF STAP Expert Review & GEF Work Program Entry: PAD Review:PAD Review: Appraisal & Negotiation :Appraisal & Negotiation : CEO Endorsement:CEO Endorsement: Board Approval:Board Approval: Supervision Supervision Project Supervision & PSRs:Project Supervision & PSRs: Mid-term Review & Amendments:Mid-term Review & Amendments: Closing Closing Extensions and/or Closing & ICR:Extensions and/or Closing & ICR: Evaluation Evaluation OED Evaluation:OED Evaluation:

23. GEF process Identification PCN Review: Initial GEF eligibility Review by RC/ENV Thematic Specialist (TS) Initial GEF eligibility Review by RC/ENV Thematic Specialist (TS) PCN Review and approval - RC/ENV TS invited PCN Review and approval - RC/ENV TS invited GEF Pipeline Entry (can be combined with PDF Grant Request) “GEF Project Review Criteria” conformity by RC/ENV TS “GEF Project Review Criteria” conformity by RC/ENV TS Submitted to GEF Secretariat (GEFSec), other GEF agencies for comments Submitted to GEF Secretariat (GEFSec), other GEF agencies for comments GEF Pipeline Eligibility Review by GEFSec (“Bilateral”) GEF Pipeline Eligibility Review by GEFSec (“Bilateral”) GEF Review sheet will be provided to TTL for action GEF Review sheet will be provided to TTL for action GEF CEO Approval for GEF Pipeline Entry GEF CEO Approval for GEF Pipeline Entry

24. GEF process Identification PDF Grant: Concurrent submission as Pipeline & PDF B Follow Pipeline submission process Follow Pipeline submission process Need GEF Country Focal Point Endorsement Letter Need GEF Country Focal Point Endorsement Letter PDF B submission only (Concept is already in the GEF pipeline) RC reviews, seeks advice from ENV TS RC reviews, seeks advice from ENV TS Submitted to GEF Secretariat (GEFSec), other agencies for comments Submitted to GEF Secretariat (GEFSec), other agencies for comments Need GEF Country Focal Point Endorsement Letter Need GEF Country Focal Point Endorsement Letter

25. GEF process Preparation/Approval Quality Enhancement Review (QER) QER Review (RC/ENV TS invited) Encouraged before work program submission to GEF council GEF STAP Expert Review STAP Expert identified and contracted from STAP Roster Database ENV TS suggested; or Other TTLs suggested based on past experience. If suitable expert not in STAP Roster, propose an expert to STAP Chair for inclusion in STAP Roster and get approval Draft GEF Project Brief submitted to STAP Expert for comment STAP Expert Comments and TTL responses as an Annex to GEF Brief Response to STAP Roster expert’s comments should be sent to the reviewer

26. GEF process GEF Work Program Entry (or GEF Council Approval) Bank Internal Review: “GEF Project Review Criteria” conformity by RC/ENV TS “GEF Project Review Criteria” conformity by RC/ENV TS GEF Work Program submissions should be at least pre- appraised GEF Work Program submissions should be at least pre- appraised GEF Secretariat (GEFSec) Review: GEF Work Program package1 is submitted to GEFSec, other GEF agencies for comments GEF Work Program package1 is submitted to GEFSec, other GEF agencies for comments GEF Work Program Eligibility Review by GEFSec (“Bilateral”) GEF Work Program Eligibility Review by GEFSec (“Bilateral”) GEF CEO Recommendation for inclusion in the GEF Work Program GEF CEO Recommendation for inclusion in the GEF Work Program GEF Council Review: GEF Council Review/Comments and approval of the GEF Work Program GEF Council Review/Comments and approval of the GEF Work Program

27. GEF process PAD Review, Appraisal & Negotiation PAD Review and Appraisal: PAD Review and Appraisal is conducted as regional practices PAD Review and Appraisal is conducted as regional practices GEF RC and ENV TS are invited to PAD Review GEF RC and ENV TS are invited to PAD Review Appraisal SMO is copied to GEF RC Appraisal SMO is copied to GEF RCNegotiation Negotiation package is sent to RC for clearance Negotiation package is sent to RC for clearance RC reviews package for consistency with Council and GEFSec comments RC reviews package for consistency with Council and GEFSec comments RC's clearance would state: RC's clearance would state: ACTTF issues a GEF grant number (TF #) after receiving RC's clearance ACTTF issues a GEF grant number (TF #) after receiving RC's clearance Any major changes proposed during negotiations with respect to the project's GEF aspects also require the RC's clearance Any major changes proposed during negotiations with respect to the project's GEF aspects also require the RC's clearance

28. GEF process CEO Endorsement TTL submits GEF CEO endorsement package to RC for clearance Cover Memorandum for Bank’s GEF Executive Coordinator’s signature; Cover Memorandum for Bank’s GEF Executive Coordinator’s signature; A GEF Project Document (generated from final negotiated PAD through the operations portal) A GEF Project Document (generated from final negotiated PAD through the operations portal) Signed minutes of negotiations; and Signed minutes of negotiations; and Confirmation of co-financing. Confirmation of co-financing. GEF RC sends final package electronically through Bank - GEF Tracking database to GEF Anchor, who forwards it to GEFSec

29. GEF process Board Approval A GEF MOP is prepared (for both freestanding and blended operations. Different language is applicable for freestanding and blended operations.) No Statutory Committee clearance is required for GEF grants GEF CEO Endorsement must be received prior to Board circulation

30. GEF process Supervision Project Supervision & ISRs: TTLs follow regional practices for project supervision and ISRs TTLs follow regional practices for project supervision and ISRs GEF Coordination Team reviews PSRs as part of annual GEF Project Implementation Review (GEF PIR) for GEF council GEF Coordination Team reviews PSRs as part of annual GEF Project Implementation Review (GEF PIR) for GEF council Feedback on overall ISR quality especially the assessment of outcomes and use of M&E in supervision is provided to TTLs through RCs Feedback on overall ISR quality especially the assessment of outcomes and use of M&E in supervision is provided to TTLs through RCs GEF team prepares annual review of GEF portfolio quality GEF team prepares annual review of GEF portfolio quality Mid-term Review & Amendments: TTLs follow regional practices for MTRs and Amendments TTLs follow regional practices for MTRs and Amendments TTLs should also follow additional GEF Guidance for MTRs to address GEF specific criteria TTLs should also follow additional GEF Guidance for MTRs to address GEF specific criteria GEF RC clears any amendments to the GEF project GEF RC clears any amendments to the GEF project Any major amendments/restructuring of the project may require GEF CEO endorsement subject to council no objection (4 weeks posting) Any major amendments/restructuring of the project may require GEF CEO endorsement subject to council no objection (4 weeks posting)

31. GEF process Closing and Evaluation Extensions, Closing and ICRs Any extensions of GEF Grant Agreement must receive RC’s clearance Any extensions of GEF Grant Agreement must receive RC’s clearance For second and subsequent extensions, RCs seek GEF Anchor’s approval before granting their clearances For second and subsequent extensions, RCs seek GEF Anchor’s approval before granting their clearances TTLs follow regional practices for project closing TTLs follow regional practices for project closing TTLs must coordinate with ACTTF for legally closing the GEF project TF # TTLs must coordinate with ACTTF for legally closing the GEF project TF # For blended projects, only one ICR is required unless the GEF grant and loan close in different FYs For blended projects, only one ICR is required unless the GEF grant and loan close in different FYs ICRs should confirm “GEF Project Review Criteria” for ICR ICRs should confirm “GEF Project Review Criteria” for ICREvaluation Standard OED procedures apply to GEF projects Standard OED procedures apply to GEF projects

32. Concluding remarks Need to integrate mitigation with adaptation and development. Need to integrate mitigation with adaptation and development. Integrated IBRD-BioCF/CF-GEF projects are coming. Integrated IBRD-BioCF/CF-GEF projects are coming. Integration implies more documentation, and more work for task teams. Integration implies more documentation, and more work for task teams. Task teams should seek GEF and CF coordinators for support. Task teams should seek GEF and CF coordinators for support.

33. Thanks and merry Christmas!