MZ Zambezia Emissions Reductions Payment (WB-P164524)

Countries
  • Mozambique
Where the impacts of the investment may be experienced.
Financial Institutions
  • World Bank (WB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Bank Risk Rating
B
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Feb 1, 2019
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
MINISTRY OF FINANCE
The holder of the loan, grant, or other investment.
Sectors
  • Climate and Environment
The service or industry focus of the investment. A project can have several sectors.
Project Cost (USD)
$ 50.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ WB website

Updated in EWS Mar 4, 2019

Disclosed by Bank Jun 1, 2018


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Project Description

According to bank documents, the project objectibve is to achieve payments for measured, reported and verified emission reductions (ER) from reduced deforestation (ER payments) in the area of the Zambezia Integrated Landscape Management Program, and distribute ER payments in accordance with an agreed-upon benefit sharing plan.

This project covers the ER payments and sharing of benefits within the area of the ZILMP. The ZILMP is a large-scale program, whose activities are implemented with the support of ongoing Bank-financed projects. The four investment project finance (IPF) projects (MozBio, MozDGM, MozFIP and Sustenta) complement each other and cover all the upfront investment needed to generate ER results for the Zambezia ER Payment Project, as described in the approved Emission Reductions Program Document (ERPD).

The implementation of the Program started in 2015 with the launch of the MozBio project, and will continue through 2024 (and potentially beyond). The Zambezia ER Payments Project implementation period , or ERPA period, will start before ERPA signing, and will continue until December 2024, before the end of the lifetime of the Carbon Fund (December 2025).

The project has 2 components:

  1. Measurement, reporting and verification (MRV) and payment of ERs generated by the project. Deforestation and associated ERs within ZILMP will be measured annually by the MRV unit within FNDS. Measurement and reporting from the GoM to the FCPF CF will take place every year, starting in late 2018 and early 2019. The verification might take place every year by a third party contracted by the Bank following the submission of a monitoring report by the GoM. Payments
    from the FCPF CFto GoM are expected to be made annually upon verification of the emission reductions, or upon interim progress reports (in case verification doesn't take place annually).
  2. Distribution of ER payments as per a BSP. The BSP was prepared by the GoM/FNDS through a highly participatory process. An advanced draft of the BSP is currently available, and will be shared with Carbon Fund participants for their information before ERPA negotiation. The BSP is guided by the principles of equity, efficiency and transparency, and includes: principles; categories of beneficiaries; processes for the distribution of benefits; and monitoring provisions, among other issues
Investment Description
  • World Bank (WB)
Contact Information

World Bank:
Contact: Andre Rodrigues de Aquino
Title: Sr Natural Resources Mgmt. Spec.

Contact: Karin Teixeira Kaechele
Title: Carbon Finance Specialist

Borrower:
Name:Ministry of Land, Environment and Rural Development
Contact:Momade Nemane
Title:Manager
Email: momadenemane@gmail.com 

Implementing Agency:
Name:Ministry of Land, Environment and Rural Development
Contact:Momade Nemane
Title:Manager
Email: momadenemane@gmail.com 

ACCOUNTABILITY MECHANISM OF WORLD BANK

The World Bank Inspection Panel is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by a World Bank-financed project. If you submit a complaint to the Inspection Panel, they may investigate to assess whether the World Bank is following its own policies and procedures for preventing harm to people or the environment. You can contact the Inspection Panel or submit a complaint by emailing ipanel@worldbank.org. You can learn more about the Inspection Panel and how to file a complaint at: http://ewebapps.worldbank.org/apps/ip/Pages/Home.aspx.