INTEGRATED SAFEGUARDS DATA SHEET APPRAISAL STAGE

Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Copy Public Disclosure Copy Date ISDS Prepared/Updated: 04-Oct-2013 INTEGRATED SAFEGUARDS DATA SHEET APPRAISAL STAGE Date ISDS Approved/Disclosed: 04-Oct-2013 I. BASIC INFORMATION 1. Basic Project Data Report No.: ISDSA5886 Country: Peru Project ID: P129647 Project Name: Peru Strengthening Sustainable Management of the Guano Islands, Isles and Capes National Reserve System Project (P129647) Task Team Christian Albert Peter Leader: Estimated Appraisal Date: 21-Oct-2013 Estimated Board Date: 05-Dec-2013 Managing Unit: LCSEN Lending Instrument: Investment Project Financing GEF Focal Area: Biodiversity Sector(s): General agriculture, fishing and forestry sector (70%), Public administration- Agriculture, fishing and forestry (30%) Theme(s): Biodiversity (60%), Environmental policies and institutions (20%), Other environment and natural resources management (20%) Is this project processed under OP 8.50 (Emergency Recovery) or OP No 8.00 (Rapid Response to Crises and Emergencies)? Financing (In USD Million) Total Project Cost: 15.92 Total Bank Financing: 0.00 Financing Gap: 0.00 Financing Source Amount BORROWER/RECIPIENT 5.00 Global Environment Facility (GEF) 8.92 GERMANY KREDITANSTALT FUR WIEDERAUFBAU (KFW) 2.00 Total 15.92 Environmental B - Partial Assessment Category: Is this a No Repeater project? Page 1 of 8

2. Global Environmental Objective(s) The project s global environmental objective is to improve the overall management of marine and coastal ecosystems of the Guano Islands, Islets, and Capes National Reserve System of Peru (RNSIIPG) and protect its biological diversity in representative pilot sites. The Project Development Objective is to improve the management effectiveness of the RNSIIPG by: (i) securing sustainable financing through the establishment and operation of an endowment fund and other sources of revenue; (ii) developing socially viable biodiversity management models; and (iii) building stakeholder capacity and scientific foundations, through training and adequately assessing and monitoring biodiversity and ecosystems dynamics. 3. Project Description The project will be funded by the Global Environment Facility (GEF) with a US$8.92 million grant. The government of Peru will provide an additional in-kind contribution of US$5 million through SERNANP. The German Development Bank (KfW) will provide US$2 million from a pre-existing debt-for-nature swap to match an endowment fund to be established as part of the project. Additionally, KfW has committed with the government of Peru a grant of 10 million that will serve as parallel financing for the project, and will also support the financing of marine and coastal protected areas with a special emphasis in RNSIIPG. No allocation from this grant has been included in the project, as the preparation of the feasibility study for the grant has not yet begun. Specific cooperative measures and their corresponding financial arrangements will be identified once the feasibility study is completed. The project will have four components: (1) institutional strengthening; (2) collaborative regional management; (3) monitoring and evaluation; and (4) project management. Component 1: Institutional strengthening. Total amount: US$6,906,670; GEF: US$3,396,670; SERNANP: US$1,510,000; KfW matching fund towards endowment fund: US$2,000,000. This component will build capacity at SERNANP and other institutions involved in the management of marine and coastal resources. Target interventions will include (a) development and implementation of strategically selected planning and management instruments; (b) development and implementation of stakeholder training plans in key knowledge and skill areas; (c) implementation of infrastructure, staffing, and support systems in selected pilot areas (including a systemwide database for monitoring biodiversity); and (d) development and implementation of financial sustainability mechanisms to finance recurrent management costs and ensure the long-term sustainability of interventions after project end. Component 2: Collaborative regional management. Total amount: US$4,216,000; GEF: US $4,000,000; SERNANP: US$216,000. The project will develop socially viable marine management models through locally implemented collaborative subprojects in 10 representative pilot sites selected by SERNANP and local stakeholders during project design. These subprojects will cover a representative range of activities, including artisanal fisheries, tourism, research, and education. Subproject implementation will build on the model of the community-based Program for Sustainable Economic Activities (Programa de Actividades Económicas Sostenibles, PAES), first devised for the GEF-World Bank project on Participatory Management of Protected Areas (Gestión Participativa de Áreas Naturales Protegidas, GPAN) and then refined for the ongoing GEF-World Bank project on Strengthening Biodiversity Conservation through the National Program for Natural Protected Areas (Programa Nacional de Áreas Naturales Protegidas, PRONANP). Subprojects will include their own individual and specific Page 2 of 8

monitoring and evaluation systems as part of the project s overall performance monitoring and evaluation. Public Disclosure Copy Public Disclosure Copy Component 3: Monitoring and evaluation. Total amount: US$4,375,080; GEF: US$1,101,080; SERNANP: US$3,274,000. Project monitoring and evaluation will be carried out at four levels: (a) biodiversity monitoring, by establishing an ecological baseline in key pilot sites and a biodiversity monitoring and evaluation system; (b) monitoring of management effectiveness of the reserve following guidelines established in the GEF-World Bank Management Effectiveness Tracking Tool (METT), using a modified METT designed during project preparation; (c) monitoring and evaluation of collaborative subprojects, under mechanisms established within each subproject; and, (d) safeguards, including through financial and administrative monitoring. Component 4: Project management. Total amount: US$424,888; GEF: US$424,888. Project management will be implemented, monitored, and evaluated by a dedicated project coordination team (PCT) under the supervision of SERNANP, who will be the project s technical and operational executing agency. PCT will coordinate with other project partners (including IMARPE, AGRO RURAL, and DICAPI) and subproject executing entities. PCT staff, including the team coordinator, procurement specialist, and administrative assistants, will share their costs pro rata according to their participation in other project components. The Peruvian Trust Fund for National Parks and Protected Areas (Fondo de Promoción para las Areas Naturales Protegidas del Perú, PROFONANPE), will maintain the fiduciary responsibility for the project, providing disbursements, supervising the use of funds, and managing the endowment fund. RNSIIPG s Technical Coordination Group will provide technical advice on project implementation. 4. Project location and salient physical characteristics relevant to the safeguard analysis (if known) The Guano Islands, Islets and Capes National Reserve System comprises 33 sites located along the Peruvian Coast. 20. The project will directly enhance the conservation status of 84,454 hectares of marine area and 2,952 hectares of land area, or approximately 62 percent of the reserve s total surface. This coverage does not represent a direct measure of project success, as it includes a wide array of social, ecological, and institutional issues that the project is targeting. In addition, the representativeness of this area means that the project is directly addressing RNSIIPG management topics in their entirety. The project will be implemented in ten sites (Lobos de Tierra, Lobos de Afuera, Guañape, Santa Don Martín, Salinas, Pachacámac, Asia, Chincha, Ballestas, Coles), which have been selected during the preparation phase. 5. Environmental and Social Safeguards Specialists Raul Tolmos (LCSEN) Alonso Zarzar Casis (LCSSO) 6. Safeguard Policies Triggered? Explanation (Optional) Environmental Assessment OP/ BP 4.01 Yes This policy was triggered since SERNANP s low experience in managing marine protected areas might result in potential adverse environmental impacts. This project is classified as Category B. The project is expected to have significantly positive environmental outcomes as Page 3 of 8

it will improve biodiversity conservation and natural resources sustainable use practices in ecologically very important marine and coastal areas throughout the strengthened implementation of the National Reserve of the Guano islands, Islets and Capes. The project might support small-scale infrastructure in guano islands and capes, including demarcation, visitor centers, trails, as part of the surveillance and control activities. The Project will also support the preparation of management plans, monitoring plans, surveillance and control plans. Possible negative impacts from these small-scale investments are expected to be low, localized and reversible. An Environmental Assessment (EA) has been prepared by the grant recipient, and reviewed by the Bank, to assess and prevent or mitigate potential environmental impacts. Given the risks associated with living in the Guano Capes and Islands and surveillance in coastal areas, measures on occupational health and safety has also been included in the EA. Natural Habitats OP/BP 4.04 Yes This policy was triggered given the location of the project interventions within the critical natural habitat comprised by the National Reserve on Islands, Islets and Guano Capes. Endangered species living in the National Reserve might be negatively affected by visitors, resource users, including researchers, and reserve rangers if proper measures/protocols are not adopted. The EA will ensure this policy is addressed appropriately. Moreover, increased effectiveness in management of the National Reserve might induce socioeconomic pressures in other natural (marine and coastal) habitats outside the National Reserve. Forests OP/BP 4.36 No This policy was not triggered since the Project will not affect forests or forest dependent community. All the activities will be developed in the coastal and marine areas of the RNSIIPG. Pest Management OP 4.09 No This policy was not triggered since the Project will not purchase or promote the use of pesticides or other agricultural chemicals. Page 4 of 8

Physical Cultural Resources OP/ BP 4.11 Yes This policy was triggered since it is likely that historical monuments and/or archaeological artifacts may be found in some of the Guano capes and islands.. The EA includes appropriate measures for the management of physical cultural resources found in the Project sites. Such measures include compliance with the regulations defined by the Ministry of Culture regarding preservation of historical sites and/or archaeological monuments and artifacts. Indigenous Peoples OP/BP 4.10 No There are no Indigenous Peoples in the project area Involuntary Resettlement OP/BP 4.12 Yes Given the size and economic importance of the existing and emerging threats, the management of RSNPIIG will require high levels of interinstitutional coordination, highly participatory approaches with local stakeholders, efficiency and specific management plans that provide both increased protection and that guide the interventions and investments of relevant sectors to prevent and mitigate the potential impacts of the existing threats. A Social Assessment was developed during the preparation stage to understand livelihood dynamics and guide the selection of pilot project activities that combine more sustainable marine resource use with enhanced livelihoods. The policy is triggered because the project will support the implementation of protected areas that could limit access to natural resources in some of the selected areas. To mitigate potential adverse impacts on livelihoods the client has prepared a Process Framework that includes the sub-projects identified during the preparation phase of the project which are part of Component 2. The project will not result in physical displacement of the people nor will it affect assets. Safety of Dams OP/BP 4.37 No This policy was not triggered since the Project will neither support the construction or rehabilitation of dams nor will it support other investments which rely on the services of existing dams Page 5 of 8

Projects on International Waterways OP/BP 7.50 Projects in Disputed Areas OP/BP 7.60 II. Key Safeguard Policy Issues and Their Management A. Summary of Key Safeguard Issues No This policy was not triggered since the Project will not finance activities involving the use or potential pollution of international waterways. No This policy was not triggered since the Project will not finance activities in disputed areas. 1. Describe any safeguard issues and impacts associated with the proposed project. Identify and describe any potential large scale, significant and/or irreversible impacts: N/A 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area: It is expected that the project will have an overall positive impact on the environment and communities living inside and adjacent to the Reserve. However, some of the activities that will be supported by the project may result in changes in how community membersuse these resources and the transition may be a challenge. The transition will be mitigated by a number of activities, including training for the technical staff of SERNANP as well as other stakeholders (including DICAPI, AGRORURAL), responsible for screening for negative impacts per the Process Framework ) as well as outreach activities to key stakeholders, such as fishermen and their Cooperatives, private tour operators, etc.). Participatory planning processes that will be undertaken annually as part of the preparation of the Annual Operating Plans will support these efforts. 3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts. N/A 4. Describe measures taken by the borrower to address safeguard policy issues. Provide an assessment of borrower capacity to plan and implement the measures described. A first measure taken by the borrower will be a MOU between SERNANP and PROFONANPE to implement measures described in the environmental and social assessments (safeguard instruments). SERNANP will be ultimately responsible for the implementation, supervision, and monitoring of the project activities in RNSIIPG. In addition, SERNANP will (a) supervise PCT; (b) prepare the terms of reference for technical studies and conduct the quality control of these studies in coordination with PCT; (c) if applicable, in coordination with PROFONANPE participate in the selection and recruitment of private sector nonprofit organizations to manage administration contracts within RNSIIPG; (d) prepare the annual operational plans and progress reports that may be required by PAC or PROFONANPE; and (e) conduct the necessary coordination and communication with PROFONANPE and local executing agencies. SERNANP will actively carry out and supervise field activities in RNSIIPG, including implementation of measures contained in the social and environmental safeguard instruments prepared for this Project, through PCT, the Coastal Marine Unit, and the protected area administration. SERNANP has prior familiarity with World Bank social and environmental safeguards through preparation and implementation of PRONANP. 5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. The project will directly benefit local populations living in the influence area of and working Page 6 of 8

inside RNSIIPG, including local artisanal fishers and fishing communities, tour operators and their families, and people providing land-based support (such as caterers, mechanics, boatwrights, local communities involved in the processing of fishing produce, and tour guides). Other stakeholders involved are students and educators who will become part of the project s new outreach initiatives. Civil society groups, such as grassroots conservation organizations and women s associations, will benefit from the project s highly participatory and equality-focused approach. Key stakeholders at the central government institutions include SERNANP, IMARPE, AGRORURAL and DICAPI. B. Disclosure Requirements Environmental Assessment/Audit/Management Plan/Other Date of receipt by the Bank 05-Sep-2013 Date of submission to InfoShop 29-Aug-2013 For category A projects, date of distributing the Executive Summary of the EA to the Executive Directors "In country" Disclosure Peru 04-Sep-2013 Comments: The documents have been published on the websites of PFONANPE and SERNANP, hard copies are also available at their respective offices. Resettlement Action Plan/Framework/Policy Process Date of receipt by the Bank 05-Sep-2013 Date of submission to InfoShop 29-Aug-2013 "In country" Disclosure Peru 04-Sep-2013 Comments: The documents have been published on the websites of PFONANPE and SERNANP, hard copies are also available at their respective offices. If the project triggers the Pest Management and/or Physical Cultural Resources policies, the respective issues are to be addressed and disclosed as part of the Environmental Assessment/ Audit/or EMP. If in-country disclosure of any of the above documents is not expected, please explain why: C. Compliance Monitoring Indicators at the Corporate Level OP/BP/GP 4.01 - Environment Assessment Does the project require a stand-alone EA (including EMP) report? If yes, then did the Regional Environment Unit or Sector Manager (SM) review and approve the EA report? Are the cost and the accountabilities for the EMP incorporated in the credit/loan? OP/BP 4.04 - Natural Habitats Would the project result in any significant conversion or degradation of critical natural habitats? Page 7 of 8

If the project would result in significant conversion or degradation of other (non-critical) natural habitats, does the project include mitigation measures acceptable to the Bank? OP/BP 4.11 - Physical Cultural Resources Does the EA include adequate measures related to cultural property? Does the credit/loan incorporate mechanisms to mitigate the potential adverse impacts on cultural property? OP/BP 4.12 - Involuntary Resettlement Has a resettlement plan/abbreviated plan/policy framework/ process framework (as appropriate) been prepared? If yes, then did the Regional unit responsible for safeguards or Sector Manager review the plan? The World Bank Policy on Disclosure of Information Have relevant safeguard policies documents been sent to the World Bank's Infoshop? Have relevant documents been disclosed in-country in a public place in a form and language that are understandable and accessible to project-affected groups and local NGOs? All Safeguard Policies Have satisfactory calendar, budget and clear institutional responsibilities been prepared for the implementation of measures related to safeguard policies? Have costs related to safeguard policy measures been included in the project cost? Does the Monitoring and Evaluation system of the project include the monitoring of safeguard impacts and measures related to safeguard policies? Have satisfactory implementation arrangements been agreed with the borrower and the same been adequately reflected in the project legal documents? III. APPROVALS Task Team Leader: Christian Albert Peter Approved By Sector Manager: Name: Emilia Battaglini (SM) Date: 04-Oct-2013 Page 8 of 8