Upstream Environmental and Other Analytical Work in Development Policy Lending Forest and Environment Policy Development Operation –Cameroon–

Expectations for the Operation A results-based operation in line with a results-based CAS An operation that helps move the portfolio towards PRSC A Government-led multi-donor operation to replace the plethora of existing projects An operation that covers all socio- economic, institutional and environmental aspects of the forest/environment sector

Design Features - Summary- A Letter of Sector Policy and one Matrix setting the operation’s Issues and outcomes Prior conditions General conditions Tranche release conditions Milestones Baseline and outcome indicators

Non-Safeguard Related Analytical Work Sector institutions analysis (resulting inst. change and closing of parastatal) Sector expenditure review & financial management capacity enhancement Sector MTEF Fiduciary risk analysis PRSP, HIPC and CAS matching analyses

Safeguard Related Analytical Work CATEGORY A Mandatory: OP 4.01 Environment OP 8.60 Development Policy Lending Non-mandatory: OP 4.36 Forestry OP 4.04 Natural Habitats OD.4.20 Indigenous People OP 4.12 Involuntary Resettlement

Other Analytical Work Forest revenue and taxation system Review of concession allocation system Law enforcement Audits of bodies and initiatives dealing with forest and environment-related revenues—PSRF; RFA to communities Communications assessment Baselines development

At the Core of Analyses Sector and Natural Resources Sector Development Program -- NOT a collection of Bank/Donor-financed sub-programs Adequacy of policy, legal and regulatory frameworks and compatibility with Bank safeguards and other Bank principles Government preparedness to implement its own rules and regulations and apply corrective action, as appropriate

Sequencing of EA Analyses 1.Review of proposed government program 2.Identification of direct and indirect social and environmental impacts 3.Analysis of underlying policies, supporting laws and regulation 4.Assessment of institutional capacity to deal with undesirable impacts 5.Integration of mitigation measures into the Operation

Advantages of Adopted Approach Strong policy dimension featuring government ownership Strong donor coordination through use of common policy development matrix Strong foundation of knowledge developed and translated into rich ESW Focus on results, and systemic issues Upfront recognition and action to tackle key policy and institutional challenges

Challenges Preparation work exceeds Bank standard preparation time and resources Wide range of extra-sectoral issues limit ability to control progress and schedules Hard-to-balance donor- and Govt- preferences for investments and TA Separating the operation’s own environmental content and budget with the Environmental Management Plan