FOR OFFICIAL USE ONLY RESTRUCTURING PAPER ON A

Transcription

1 Public Disclosure Authorized Document of The World Bank FOR OFFICIAL USE ONLY Report No: RES21192 Public Disclosure Authorized Public Disclosure Authorized RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF PHILIPPINE CLIMATE CHANGE ADAPTATION PROGRAM GLOBAL ENVIRONMENT FACILITY GRANT TF DECEMBER 21, 2010 TO THE REPUBLIC OF THE PHILIPPINES NOVEMBER 26, 2015 Public Disclosure Authorized ENVIRONMENT GLOBAL PRACTICE EAST ASIA AND PACIFIC REGION This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.

2 ABBREVIATIONS AND ACRONYMS ATI AWS BSWM CCA CCC CSDSS DA DENR DOST ECSFFS GIU IDMF IEC IRRI LGU NIA PAGASA PCIC PhilRice PMO WIBCI Agricultural Training Institute Automatic Weather Station Bureau of Soils and Water Management Climate Change adaptation Climate Change Commission Climate Smart Decision Support System Department of Agriculture Department of Environment and Natural Resources Department of Science and Technology Enhanced Climate Smart Farmers Field School Geographic Insurance Units Integrated Decision Making Framework Information, Education and Communication International Rice Research Institute Local Government Unit National Irrigation Administration Philippine Atmospheric Geophysical and Astronomical Services Administration Philippine Crop Insurance Corporation Philippine Rice Research Institute Project Management Office Weather Index-based Crop Insurance Regional Vice President: Country Director: Senior Global Practice Director: Practice Manager/Manager: Task Team Leader: Axel Van Trotsenburg Motoo Konishi Paula Caballero Iain Shuker Leonardo Paat Jr. 2

3 PHILIPPINES CLIMATE CHANGE ADAPTATION PROJECT CONTENTS A. SUMMARY OF PROPOSED CHANGES 5 B. PROJECT STATUS 6 C. PROPOSED CHANGES 8 D. APPRAISAL SUMMARY 15 ANNEX 1: RESULTS FRAMEWORK AND MONITORING 16 3

4 DATA SHEET Philippines Climate Change Adaptation Program (P101076) EAST ASIA AND PACIFIC Environment & Natural Resources Report No: RES21192 Basic Information Project ID: P Lending Instrument: Specific Investment Loan Regional Vice President: Axel van Trotsenburg Original EA Category: Partial Assessment (B) Country Director: Motoo Konishi Current EA Category: Partial Assessment (B) Senior Global Practice Director: Practice Manager/Manager: Team Leader(s): Paula Caballero Original Approval Date: 29-Jun-2010 Iain G. Shuker Current Closing Date: 15-Dec-2015 Leonardo Jr. Batugal Paat Borrower: Responsible Agency: Republic of the Philippines Department of Environment and Natural Resources, Department of Agriculture, Department of Science and Technology, Philippines Climate Change Commission Restructuring Type Form Type: Full Restructuring Paper Decision Authority: Country Director Approval Restructuring Level: Level 2 Financing ( as of 06-Nov-2015 ) Key Dates Project Ln/Cr/TF Status Approval Date Signing Date 4 Effectiveness Date Original Closing Date Revised Closing Date P TF Effective 21-Dec Dec Jan Dec Dec-2015 Disbursements (in Millions) Project Ln/Cr/TF Status Currency Original Revised Cancelled Disbur sed Undisbur sed % Disburse d P TF Effective USD Policy Waivers Does the project depart from the CAS/CPF in content or in other significant respects? Yes [ ] No [ X ] Does the project require any policy waiver(s)? Yes [ ] No [ X ]

5 A. Summary of Proposed Changes The Philippine Climate Change Adaptation Project (PhilCCAP) is supported by the Global Environment Facility (GEF) through a grant agreement with the Government of the Philippines (GOP) signed on December 21, Four years into the implementation of the project, the Department of Environment and Natural Resources (DENR) as the implementing agency with the endorsement from the Department of Finance (DOF) has requested an extension of project closing date, adjustments in the results framework, component costs, risk assessment, disbursement estimates, and changes in FM-related requirements. Through this proposed restructuring the task team supports an extension of the Closing Date of the project by 12.5 months, from December 15, 2015 to December 31, 2016, to allow the completion of the testing and demonstration of the adaptation measures. Although the Borrower has requested a two year extension, the Bank team is of the view that an extension of the Closing Date by one year will enable the agencies to complete the actions to support the institutionalization of these adaptation measures and the generation of broader constituency for climate change adaptation. This has been discussed with the Borrower subsequent to the letter of request and the Borrower agrees that a one year extension would suffice. The team also supports an adjustment of the results framework to reflect better the project implementation progress and results. The outcome indicators and targets were refined to sharpen the logic of change and to tighten the framing of how the project can contribute to the overall climate change adaptation and response in the country. This adjustment considered the recent changes in the climate policy and institutional landscape and the actions taken by the GOP to enhance resilience. Consistent with other recent restructurings, the project monitoring indicators will be removed by amendment out of the Grant Agreement and included in the Operations Manual by way of revision. This will allow the Project greater flexibility should the indicators need to be adjusted later. Also included as part of the proposed changes under this restructuring, and supported by the FM specialist, is the removal of the requirement under the Grant Agreement for project review by the Internal Audit Service of DENR and DA. This requirement, set out in Section IIB4 of Schedule 2 of the Grant Agreement is no longer necessary given that the internal audit requirement remains part of the overall internal control using existing country systems and the Project is still subject to an external audit on an annual basis. Changes in the component costs and disbursement rates are also supported to reflect the activities that were already carried out and proposed to be extended. The risk assessment of the project has been adjusted to reflect the political risks from the national elections in 2016 and the enhanced institutional capacity of the government counterpart. This is a Level Two restructuring as the requested changes will not affect the Project Development Objective (PDO) nor trigger additional safeguards policies. This restructuring is the first for this project. Change in Implementing Agency Yes [ ] No [ X ] Change in Project's Global Environmental Objectives Yes [ ] No [ X ] Change in Results Framework Yes [ X ] No [ ] Change in Safeguard Policies Triggered Yes [ ] No [ X ] Change of EA category Yes [ ] No [ X ] Other Changes to Safeguards Yes [ ] No [ X ] Change in Legal Covenants Yes [ X ] No [ ] Change in Loan Closing Date(s) Yes [ X ] No [ ] Cancellations Proposed Yes [ ] No [ X ] Change to Financing Plan Yes [ ] No [ X ] Change in Disbursement Arrangements Yes [ ] No [ X ] 5

6 Reallocation between Disbursement Categories Yes [ ] No [ X ] Change in Disbursement Estimates Yes [ X ] No [ ] Change to Components and Cost Yes [ X ] No [ ] Change in Institutional Arrangements Yes [ ] No [ X ] Change in Financial Management Yes [ ] No [ X ] Change in Procurement Yes [ ] No [ X ] Change in Implementation Schedule Yes [ ] No [ X ] Other Change(s) Yes [ ] No [ X ] Appraisal Summary Change in Economic and Financial Analysis Yes [ ] No [ X ] Appraisal Summary Change in Technical Analysis Yes [ ] No [ X ] Appraisal Summary Change in Social Analysis Yes [ ] No [ X ] Appraisal Summary Change in Environmental Analysis Yes [ ] No [ X ] Appraisal Summary Change in Risk Assessment Yes [ X ] No [ ] B. Project Status The Philippine Climate Change Adaptation Project (PhilCCAP) aims to develop and demonstrate approaches that would enable targeted communities to adapt to the potential impacts of climate variability and change. This would be achieved by strengthening existing institutional frameworks for climate change adaptation, and by demonstrating cost-effective adaptation strategies in agriculture and natural resources management. The project consists of four components, namely (i) strengthening the enabling environment for climate change adaptation; (ii) demonstrating climate change adaptation strategies in the agriculture and natural resources sectors; (iii) enhancing provision of scientific information for climate risk management; and (iv) project coordination. The pilot sites for the project are Penablanca Protected Landscape and Seascape (PPLS) in Cagayan Province, the Jalaur River basin in Iloilo Province, and the Siargao Island Protected Landscape and Seascape (SIPLAS) in northeastern Mindanao. Four years into the implementation, PhilCCAP was able to develop a set of adaptation approaches that were demonstrated in the pilot sites. The project also enabled identified institutions to take stock of climate policies and provided information that support the adaptation approaches. The project however experienced challenges particularly procurement delays during the startup as well as bottlenecks in fund transfers due mainly to delays in the issuance of the allotment release documents and changes in the requirements for project fund liquidation. These were addressed in the course of implementation allowing the project to catch up and exhibit progress starting in These however caused significant delays in the delivery of outputs with the disbursement still at 67% (or USD 3.3 million) as of November The most recent ISR, reflecting the results of the July 2015 review, indicated achievements of physical targets of the different project components. However due to implementation delays and low disbursement rate, the project is rated moderately unsatisfactory. A survey, commissioned as part of the Mid Term Review, confirmed the uptake by farmer households of the measures that were demonstrated at the pilot sites, and the level of knowledge and awareness of the stakeholders on climate change adaptation strategies. The heightened awareness of the impacts of climate change and the effects of extreme climate events motivated the various government agencies to strengthen the policies and institutions to further support the adaptation measures. This early indication of results suggests that the project can achieve its objective given sufficient time. Overall, the project demonstrated achievements in terms of developing and innovating adaptation approaches in the agriculture and natural resources sector even with the considerable delays and challenges that it hurdled. While these achievements may not be complete in relation to the overall project design, these provide indication and 6

7 impetus to the agencies that given sufficient period, the project can achieve its objective. For its part, the inter-agency Project Steering Committee (PSC) identified the causes of the bottlenecks and established mechanisms to reduce if not eliminate their recurrence -- for example obtaining clarity on policy related to project-based liquidations, advanced work and financial planning to avoid delays in the issuance of allotment release documents, and acquiring additional support to assist agencies in project financial management. This project restructuring affirms the recommendations of the Mid Term Review on the need to extend the implementation period to allow sufficient time for refining the adaptation measures and approaches following the pilot testing. The refinements will also enhance the credibility of these adaptation measures, and increase the likelihood of replication and upscaling. Changes in the results framework particularly the adjustments of indicators, targets and outputs will reflect more accurately the current circumstances, generate clearer signaling of project outcomes, and provide better logical connections of results and outcomes. Progress under each component and activities proposed to be extended are summarized below: Component 1: This component supports climate change adaptation policy strengthening at the national and local levels, development of decision-making framework, and knowledge management on climate change adaptation. The implementing agency, the Climate Change Commission (CCC), conducted a policy gap assessment as input to policy recommendations and the integrated decision-making framework. A knowledge management unit was established at CCC that documented the climate change adaptation practices and developed the process for climate information sharing, communication and engagement. Activity to be implemented under Part 1(h) in the proposed extension include the communication and education program implemented at the national level and at the project s pilot areas that will not only communicate the results of the project but also advocate for policies that will support the institutionalization of the adaptation measures. This activity will strengthen the support of- and promote the adoption by the Government and stakeholders of the adaptation measures. Component 2: The activities under this component involve the development and demonstration of adaptation measures in targeted communities with focus on the agriculture and natural resources sectors. The National Irrigation Administration (NIA) completed the feasibility studies on incorporating climate change impacts into the designs of two pilot irrigation systems in the provinces of Cagayan and Iloilo. A Supplemental Guideline was developed by NIA to assist designers, operators, and farmers in integrating climate change into the planning, design, implementation, and operations of irrigation infrastructures. In terms of enhancing the delivery and effectiveness of extension services, the Bureau of Soil and Water Management (BSWM) and the Agricultural Training Institute (ATI) completed the Enhanced Climate Smart Farmers Field School (ECSFFS) Manual following the series of trainings of farmers and extension workers in the pilot sites. As an additional support, the International Rice Research Institute (IRRI) developed a web-based climate smart agriculture decision support system (DSS) for rice and corn farms. This tool provides farmers with site-specific climate smart agriculture (CSA) recommendations. The Philippine Crop Insurance Corporation (PCIC) started the second cycle of field-testing of the weather index-based crop insurance covering the dry season in the pilot sites of the Cagayan Valley and Western Visayas regions (Region 2 and 6). PCIC also started the process for developing a geographic insurance unit (GIU) to reduce the transaction cost for parametric insurance system. If completed, the GIU will provide adequate data set that will be used as basis for the design of WIBCI. The draft of the enhanced PA management plans of the two pilot protected areas were completed and presented to the protected areas management boards (PAMB) of PPLS and SIPLAS. The implementation of specific PA management recommendations and alternative livelihoods are ongoing as these activities have been affected by the implementation delays. For the proposed extension, the following activities will be undertaken: Under Part 2 (a) (i), use the supplemental guideline for the redesigning of two irrigation systems to 7

8 further validate the approach by NIA and the training of field and technical staff on the use of Supplemental Guidelines; Under Part 2 (a) (ii), training of extension workers on the use of the Enhanced Climate Smart Farmers Field School (ECSFFS) Manual and the Decision Support System (DSS), conduct of final evaluation of adoption of tools, and completion of the AgroMet investment plan for the country; Under Part 2 (a) (iii), completion of the geographical insurance units (GIUs) development by PCIC supported by BSWM, completion of the wet season testing of WIBCI in Region 2 which was not completed in 2015 on account of the ENSO, and validation of data generated by the AWS in the pilot sites, and Under Part 2 (a) (iv), integration of the PA management plans with the comprehensive development plans of LGUs, completion of testing and implementation of key adaptation measures identified in the revised PA management plans, capacity strengthening of PAMB and communities, and completion of resource generation programs that can lead to additional financing for the PA. Component 3: This component aims to strengthen the provision of climate information to guide the design of adaptation actions. This component is supporting the technical capacity enhancement of the Philippine Atmospheric, Geophysical, and Astronomical Services Administration (PAGASA) that enabled the agency to provide the necessary climate information that supported the activities under Component 2 of this project. Climate projections were provided by PAGASA to the DENR for the revision of the protected area management plans, NIA for the irrigation infrastructure design, DA and PCIC for climate smart agriculture training modules and parametric insurance design. The automatic weather stations (AWS) for the three sites (Cagayan, Iloilo, and Siargao) were installed and handed over to the LGUs. To be completed in the proposed extension is the capacity strengthening of PAGASA through the Australian CSIRO under Part 3(b) of the Project to generate and share climate information and for the implementing agencies and local stakeholders on the use of such information. Under Component 4: The Project Management Office (PMO) provided inter-agency coordination and facilitated the conduct of support activities. The PMO implemented an information, education and communication (IEC) program designed to sustain the interest and support of the stakeholders to the project. The PMO also facilitated the conduct of activities including technical summits, geo-tagging workshop, and even in leveraging additional resources to support the uptake of adaptation measures such as the GEF-funded regional knowledge management project through the Partnership for the Environmental Management of the Seas of East Asia (PEMSEA) and technical support to the index-based crop insurance through the International Finance Corporation (IFC). To support project management, the PMO developed a results-based monitoring and evaluation system (RBMES) enabling agencies and stakeholders to track the progress of each component and activities of the project. Project support and coordination activities are proposed to be continued during the extension including the conduct of end of project evaluation and the project level information and education campaign to promote the adoption of the adaptation measures. C. Proposed Changes Project Development Objectives Original GEO Development Objectives/Results The project development objective is to develop and demonstrate approaches that would enable targeted communities to adapt to the potential impacts of climate variability and change. Change in Project's Global Environmental Objectives Change in Results Framework Explanation: 8

9 This restructuring proposes to remove the project outcome and intermediate indicators from the Grant Agreement as reflected in Annex 1 and incorporate such in the Project Operations Manual. The indicators to be included in the Operations Manual will include the following changes described below. 1. Drop intermediate indicators and targets which do not capture the project implementation performance and results and replace them with more suitable measures. The refinement of the indicators is expected to capture better the results of the completion of the development and demonstration of adaptation measures. The adjustments will reflect a better framing of the set of indicators that will facilitate the collection and analysis of project data. The changes include: Recast indicators to provide quantitative measures of results, for example indicators providing the quantity of changes influenced by the project (number of agencies adopting the CCA practices, number of extension workers/farmers having access to the technology, etc.). 2. Drop intermediate outcome indicators that were incorporated already in other indicators, difficult to measure, monitor, and evaluate, or that direct contribution of the project cannot be ascertained. The dropped indicators are: Intermediate indicator for Component 1. DENR and DA regularly use climate screening tool to assess projects in the annual work plan (incorporated in project assessment criteria). This indicator was dropped as the climate-screening tool had been developed as part of the overall climate reform agenda of the Government (through the World Bank s Programmatic Technical Assistance on Climate Change), and so is not a direct contribution of the project, but is counted as a contribution of the Borrower. Screening tools for specific projects, such as irrigation infrastructure, PA management plans, and crop production systems (rice and corn) however were supported by the project. Intermediate indicator for Component 2. At least 25% of farmers surveyed in the targeted areas who receive extension packages developed with project support (for example, use weather data and/ or climate projections in making farming decisions, use of on-farm rainwater harvesting or other soil moisture management technologies) is already incorporated in the Project Outcome Indicator 1 which assesses adoption among farming households of introduced technologies. Intermediate indicator for Component 3. Completion of documented designs for apposite information delivery to users in Components 1 & 2 subprojects was dropped due to the difficulty in measuring, monitoring and evaluating the suitability of the information delivery to users, and also because the indicator is covered in the second indicator of Component 3. Intermediate indicator for Component 4. "Project M&E framework operational and indicators regularly updated" was dropped as this is already in place and an output of Component Add new indicators that were not part of the original set of indicators but measure important intermediate outcomes of the project. These proposed additional indicators include core sector indicators. Included indicators are: Project Outcome Indicator: Number of direct beneficiaries of the project Intermediate outcome indicator (Component 2): Number of extension workers and farmers who are able to access and utilize the Climate Smart Decision Support System for rice and corn (this signals that the DSS as an important tool developed in the project is used by extension workers for CCA planning). 9

10 Enhanced Climate Smart Farmers Field School (ECSFFS) Resource Manual approved and adopted by DA as the manual for climate-smart farming practices (reflecting the importance of official recognition and endorsement of the manual by the DA in the move towards the uptake of the ECSFFS approach). GIU protocol approved and utilized in developing weather index-based crop insurance by PCIC (to reflect the activities around GIU development, design of the GIU, and design protocol approved by the PCIC Board). Number of LGUs supporting the implementation of the climate change adaptation management prescriptions contained in the revised PA plans. Intermediate outcome indicator (Component 3) Number of automatic weather stations established and utilized for each of the pilot sites Intermediate outcome indicator (Component 4) Project Steering Committee reviews project progress every six months and PMO provides monthly status update identifying implementation bottlenecks, issues, and actions as reported in the minutes. Change in Legal Covenants Explanation: This restructuring proposes to remove the requirement in the Grant Agreement for a periodic internal audit review by the Internal Audit Service (IAS) of DENR and DA. Successive FM reviews have found that the project is generally able to maintain adequate FM systems and has over time showed marked improvement in FM reporting (e.g. timely submission of IFRs and unqualified opinion on the financial reports). The project internal audit requirements will still be part of the overall internal control using existing country systems and will be conducted subject to the IAS professional judgment and discretion of the IAS in terms of audit scope and in line with the annual audit plans of DENR and DA. The Commission on Audit is also strengthening internal audit capacities of the IAS through trainings and mentoring. The team, therefore, feels the required additional audit at Section IIB of Schedule 4 of the Grant Agreement is no longer necessary and supports the removal of the conditionality. Ln/Cr/TF TF Finance Agreement Reference Description of Covenant Date Due Finance Agreement :Section II, B-1 Description :The Recipient shall maintain or cause to maintain a financial management system in accordance with Section 2.07 of the Standard Conditions Frequency :Quarterly 10 Status Complied with Recur rent Frequen cy TF Finance Agreement Complied No Action No Change

11 :Section II, B-2 Description :The Recipient shall prepare and furnish to the Bank, not later than 60 days after the end of each calendar quarter, interim financial reports for the Project covering the quarter. Frequency :Quarterly with Change TF Finance Agreement :Section II, B-3 Description :The Recipient shall have its Financial Statements for the Project audited which shall cover the period of one fiscal year, and furnished to the Bank not later than six months after. Frequency :Yearly Complied with No Change TF Finance Agreement :Section II, B-4 Description :The Project shall be reviewed by the Internal Audit Service (IAS) of DENR and DA, as applicable, at the end of each calendar semester starting December 31, 2011, and furnish a report in 90 days. Frequency :Semestral Not complied with Marked for Deletion TF Finance Agreement :Section II, B-5 Description :For the duration of the Project, within twelve months from issuance of subsequent external audit reports, complete implementation of recommendations, if any, arising from such. Frequency :Yearly Complied with No Change TF Finance Agreement: Section II, A-2a Description: By December 30, 2012, a Complied with No Change 11

12 Change in Loan Closing Date(s) Explanation: mid-term review of the project s performance and achievements would be undertaken and the findings of the study discussed with the Bank. Due Date :30-Dec-2012 Financing This restructuring proposes to extend the project Closing Date for one year. Four years into its implementation, the project was able to gain some important achievements toward the development outcomes. However, challenges during the start-up and the bottlenecks in fund transfers have caused significant delays in the project implementation and slowed down the project s grant disbursement. Even though some of the activities were carried out there are still key outputs that will need to be completed particularly the development, demonstration, and institutionalization of key adaptation measures and sustaining the awareness and knowledge on climate change adaptation. The extension of closing date will provide sufficient time for refining of the adaptation measures and the approaches to their sustainability. The refinements will increase the technical credibility of these adaptation measures, and increase the likelihood of replication and upscaling of these measures. The extension of the project s Closing Date was proposed in the Mid Term Review and expressed by the implementing agencies through the Project Steering Committee to allow for such adjustments. Although the letter of request for restructuring seeks a two years extension of Closing Date, the team has discussed a one year extension with the Borrower and the Borrower agrees this would be sufficient for the purposes of completing project activities. The extension will also enable the implementing agencies to develop plans to not only replicate and upscale these approaches, but more importantly to mainstream these into the regular government functions. The pilot testing is expected to be completed in during the first six months of the extension and the succeeding six months will be utilized to scale up policy advocacy, and communication and education program. Ln/Cr/TF Status TF Effecti ve Disbursement Estimates Original Closing Date Change in Disbursement Estimates Explanation: Current Closing Date 12 Proposed Closing Date Previous Closing Date(s) 15-Dec Dec Dec Dec-2015 The cumulative disbursement as of November 2015 is USD 3.3 million based on the original grant of USD 4.97 million. The implementing agency estimates an additional disbursement of USD 0.66 million for 2015 and USD million for 2016 for the completion of the remaining ongoing activities. The estimated disbursement by proposed Closing Date would amount to a total of USD 4.97 million. The table below will be updated after the approval of this restructuring. Fiscal Year Current (USD) Proposed (USD) ,000, , ,300, ,914.00

13 2013 1,300, , ,000, , , ,251, ,383, Change to Components and Cost Explanation: Total 4,974, ,973, Components The changes reflect the extension of the implementation of activities that are considered necessary for delivering the project development objective and the adjustments in the results framework. The extension of the project Closing Date will allow the completion of a number of activities and include: (i) support the adoption of the climate change adaptation measures developed out of PhilCCAP, (ii) pilot testing of key adaptation measures including weather index-based crop insurance, supplemental manual for climate change integration in the design, construction and operation of irrigation systems, and adaptation measures described in the revised protected area management plans, and (iii) capacity enhancement on the generation and dissemination of climate information. Project support and coordination activities are proposed to be continued during the extension including the conduct of end of project evaluation and the project level information and education campaign to promote the adoption of the adaptation measures. Current Component Name Strengthening the Enabling Environment for Climate Change Adaptation Demonstration of Climate Change Adaptation Strategies in the Agriculture and Natural Resources Sectors Enhanced Provision of Scientific Information for Climate Risk Management Proposed Component Name Current Cost (US$M) Proposed Cost (US$M) Action Revised Revised Revised Project Coordination Revised Appraisal Summary Change in Risk Assessment Explanation: Total: Appraisal Summary Review of project implementation and progress over the last one year has resulted in identification of several additional risks which are documented in the ORAF and mitigation measures proposed to address them. These risks pertain to Borrower Capacity, Governance, Environmental and Social, Design and 13

14 Delivery, Monitoring and Sustainability. Political and governance risks is upgraded to substantial on account of the upcoming elections in With the changes in the political leadership across the levels of government, there is that risk that climate change may not be adopted as a critical issue and concern by the administration. The project works with second level leaders of the agencies to ensure that the adaptation measures are promoted and instituted in the respective agencies. Institutional capacity for implementation and sustainability risk is downgraded to moderate to reflect the improved capacity and awareness of the stakeholders and communities on climate change impact and adaptation. Systematic Operations Risk-Rating Tool (SORT) Risk Category Rating 1. Political and Governance Substantial 2. Macroeconomic Low 3. Sector Strategies and Policies Low 4. Technical Design of Project or Program Moderate 5. Institutional Capacity for Implementation and Sustainability Moderate 6. Fiduciary Moderate 7. Environment and Social Low 8. Stakeholders Low 9. Other OVERALL Explanation Moderate 14

15 Annex 1 Results Framework and Monitoring Philippines: Climate Change Adaptation Program (P101076) Project Name: Team Leader(s) : Product Line: Climate Change Adaptation Program (P101076) Leonardo Jr. Batugal Paat Global Environment Project Requesting Unit: Responsible Unit: Country: Philippines Approval FY: 2010 Region: EAST ASIA AND PACIFIC Global Environmental Objectives Lending Instrument: Project Stage: Restructuring Status: DRAFT EACPF Created by: Reinaluz Ona on 20-Oct-2015 GEN02 Modified by: Leonardo Jr. Batugal Paat on 05-Nov-2015 Specific Investment Loan Global Environmental Objective (from Project Appraisal Document): The project development objective is to develop approaches that would enable targeted communities to adapt to the potential impacts of climate variability and change. This would be achieved by strengthening existing institutional frameworks for climate change adaptation, and by the demonstration of cost-effective adaptation strategies in agriculture and natural resources management. Results Core sector indicators are considered: Yes Global Environmental Objective Indicators Results reporting level: Project Level Status Indicator Name Core Unit of Measure Baseline Actual(Current) End Target Revised Percent of households surveyed Percentage Value

16 Revised in the targeted areas adopt coping strategies, new technologies or improved farming practices to better cope with climate variability and change Percent of stakeholders surveyed in the targeted areas who have participated in or are knowledgeable of activities demonstrated by the project to reduce vulnerability or improve adaptive capacity Date 01-Jul Dec Jun-2017 Percentage Value Date 01-Jul Dec Jun-2017 New Number of direct beneficiaries Number Value Intermediate Results Indicators Date Status Indicator Name Core Unit of Measure Baseline Actual(Current) End Target Marked for Deletion Marked for Deletion DENR and DA regularly use climate screening tool to assess projects in the annual work plan (incorporated in project assessment criteria). Per cent of farmers surveyed in the targeted areas who receive extension advice apply an element of the new extension packages developed with project support Percentage Value Date 01-Jul Dec Dec-2015 Percentage Value Date 01-Jul Dec Jun

17 Revised Marked for Deletion Number of LGUs supporting the implementation of the climate change adaptation management prescriptions contained in the revised PA plans. Completion of documented designs for apposite information delivery to users in Components 1 and 2 subprojects Text Value None Draft plan completed and for presentation to the Protected Area Management Board. Formation of network of 15 MPAs is planned and being coordinated. The revision of the PA management plan was supported by the vulnerability assessment and the climate information provided by PAGASA. Plan implementation Date 01-Jul Dec Jun-2015 Text Value None PAGASA provided information on climate projection for use mainly by Components 1 and 2 of the project based PRECIS modeling Climate models and other analytical work documented 17

18 Revised Number of agencies, institutions, and stakeholders using the climate information generated by PAGASA including hazard maps, monthly seasonal forecasts, and climate projection report for adaptation software. The level of resolution and the available GCM tools has since improved and PAGASA is proposing the use of these tools to generate 8 km resolution that will further detail changes at the municipality level. Date 01-Jul Dec Jun-2015 Text Value None The climate information provided by PAGASA formed a significant input to the feasibility studies conducted by NIA. The information was also used as basis for the indexbased crop insurance. The Enhanced Climate Smart Farmers Field School CR recommendation s incorporated into subcomponent design 18

19 Marked for Deletion Revised Revised Project M&E framework operational and indicators regularly updated Number of adaptationsupportive policies in the agriculture and/or ENRM sectors endorsed. Number of agencies adopting the manual of good adaptation practices in terms of the design of adaptation interventions. Resource Kit is also informed by the provided climate data Date 01-Jul Dec Jun-2015 Text Value None M&E system is now in place and is being updated regularly by PMO. Indicators updated and ICR prepared Date 01-Jul Dec Jun-2015 Text Value 0 3 Date 01-Jul Jul Jun-2017 Change Unit of measure to number, instead of text. Text Value 0 6 One national and one local policy on IDMF. Also one national policy on access to and sharing of climate information. Date 01-Jul Oct Jun-2017 Change Unit of measure to ATI, BSWM, NIA, PCIC, 19

20 Revised Revised New New Number of irrigation infrastructure in PIDP areas redesigned to incorporate CCA parameters recommended by PhilCCAP. Evaluation report issued on the outcome of the weather-index based insurance in two pilot areas Number of LGUs supporting the implementation of the climate change adaptation management prescriptions contained in the revised PA plans. Number of extension workers and farmers who are able to access and utilize the Climate Smart Decision Support tool for rice and corn. number, instead of text. Text Value 0 4 DENR, PAGASA Date 01-Jul Dec Jun-2017 Change Unit of measure to number, instead of text. Text Value 0 1 Date 01-Jul Dec Jun-2017 Change Unit of measure to number, instead of text. Number Value Date 01-Jul Jun-2017 Covers the 9 LGUs making up SIPLAS and 1 LGU covering PPLS Number Value Date 10-Jul Jun farmers and 30 extension workers in the 2 pilot regions. 20

21 New New New New Enhanced Climate Smart Farmers Field School (ECSFFS) Resource Manual approved and adopted by DA as the manual for climate-smart farming practices. Geographic Insurance Unit (GIU) protocol approved and utilized in developing weather index-based crop insurance by PCIC. Number of automatic weather stations established and utilized for each of the pilot sites. Project Steering Committee reviews project progress every six months and PMO provides monthly status update identifying implementation bottlenecks, issues, and actions as reported in the minutes. Number Value Date 01-Jul Jun-2017 Number Value Date 01-Jul Jun-2017 Number Value Date 01-Jul Jun-2017 Percentage Value Date 01-Jul Jun