Upstream Environmental and Other Analytical Work in Development Policy Lending

1
Upstream Environmental and Other Analytical Work
in Development Policy Lending

• Forest and Environment Policy Development
  Operation
• Cameroon

2
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

3
Design Features- Summary-

• A Letter of Sector Policy and one Matrix setting
  the operations
• Issues and outcomes
• Prior conditions
• General conditions
• Tranche release conditions
• Milestones
• Baseline and outcome indicators

4
Non-Safeguard RelatedAnalytical 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

5
Safeguard RelatedAnalytical 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

6
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 revenuesPSRF RFA
  to communities
• Communications assessment
• Baselines development

7
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

8
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

9
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

10
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 operations own environmental
  content and budget with the Environmental
  Management Plan