German Financial Cooperation with the Lao PDR

German Financial Cooperation with the Lao PDR
Climate Protection through Avoided Deforestation“ (CLiPAD)Financial Cooperation Module
Terms of References for Consultancy Services
Part I: Scope of Services
Introduction
(1) During the bilateral Government negotiations in April 2008, Germany committed up to €
4,0 mill. for Technical Cooperation (TC) and € 4,0 mill. for Financial Cooperation (FC)
to support Lao PDR in a Programme on forest and climate protection by reducing
emissions from deforestation and forest degradation (REDD). This support is likely to
be increased to up to € 4 mill. for TC and up to € 10 mill. for FC. The Lao German
CliPAD Programme will consist of both a FC and TC module and will be jointly
implemented by KfW, GTZ and DED. Under the programme, the proposed goal of the
FC-module is to demonstrate the technical and economical feasibility of pro-poor
REDD approaches in National Protected Areas (NPA) in Laos. This includes support to
reduce emissions from deforestation and forest degradation (DD) in and around NPA
through improved NPA Mgmt, forest law enforcement and by improving the socioeconomic conditions of the resident rural population. Furthermore, the FC-module will
support REDD monitoring and accounting as well as the establishment of REDD
financial mechanisms.
(2) During the preparation of the programme, the Lao Government together with the German Development Cooperation (GDC) selected the National Protected Areas Nam
Poui and Nam Et Phoui Leui as priority areas for the programme. In case of non
performance other NPAs can jointly be selected between GoL and GDC. Besides
ecological and socio-economic conditions, the commitment from the district and
provincial government to combat deforestation and forest degradation was repeatedly
stressed as an important prerequisite for participation in the Programme.
(3) In order to test the technical and economical feasibility of pro-poor REDD approaches
in Lao PDR, it is recommended to conclude the full REDD cycle:
• Reduce emissions from DD in Nam Poui and Nam Et Phou Leui;
• Monitor and account for emission reductions.
• Establish REDD financial mechanisms to reward emission reductions;
(4)
The general project concept is based on the Final Feasibility Study Report (‘FS’)
submitted by an expert team in February 2010 (see Annex 2). Certain modifications
have been made in the MoM Nov. 2009 of the KfW appraisal mission (see Annex 1).
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(5)
The consultant is asked to assist partners in updating the agreed upon project concept
in an inception phase.
Project Objectives and Target Group
(6)
(7)
The
following
REDD
activities
in
Nam
Poui
Phou Loei NPA shall be financed from the Financial Contribution:
and
Nam
Et
•
Reduce emissions from Deforestation and Degradation (DD) in Nam Poui and
Nam Et Phou Loei. Emission reductions will be achieved by enabling and motivating key actors in NPA conservation through financial and technical support as
well as incentive payments. Key actors are the NPA management units (Nam
Poui; Nam Et-Phou Loei advised by WCS), NPA forest law enforcement units
and mobile law enforcement units, DoFI, and the local rural population. This
element will be implemented in close cooperation with GTZ and DED (for details
see 20-25 Divisions of tasks).
•
Measure, report on and verify emission reductions in Nam Poui and Nam Et
Phou Loei according to international carbon standards such as the Voluntary
Carbon Standard (VCS) and CCBA (Climate Community and Biodiversity
Standard). These standards constitute the most advanced voluntary carbon and
social and ecological safeguard standards. In the absence of other standards
they shall be used as the basis for programme development. The monitoring and
accounting system will be implemented in a way that will allow crediting of future
emission reductions under a national system as well which will emerge in future.
•
Establish REDD financial mechanisms (e.g. REDD trust funds) at the national
level will reward emission reductions through incentive payments to villages
(forest conservation contracts), NPA management units (e.g. incentives for fire
prevention) and NPA forest law enforcement units, including forest foot patrol
teams, and mobile law enforcement units, and DoFI (e.g. incentives to prevent
logging). During the first phase incentives will be paid from FC-funds in order to
assist the GoL to establish the REDD financial mechanisms. The component includes development of the two demonstration areas into a full-fledged REDD
programme funded either from the voluntary carbon market or other funding
sources to continuously finance emission reductions after FC-module support
ends. Apart from reducing DD and integrating REDD into the national framework,
the proposed incentive payments to village level will provide additional cash
income for improving the socio-economic situation of the local rural population.
The following measures will be supported by FC
Investments in Readiness, Carbon Monitoring
demonstration areas into long-term carbon projects
and
development
of
(8)
In order to fulfil VCS reporting standards, the programme will support activities such as
definition of a leakage belt, a forest benchmark, a forest carbon stock map and a
baseline scenario.
(9)
Based on feasibility studies by GTZ in NP (2010) and by WCS in NEPL, changes in
forest carbon stocks should be measured again mid-term review after project year 3.
to assess the success of the programme. While emissions from deforestation will be
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comparatively easy to calculate via remote sensing, emissions from forest degradation
will need additional ground sampling.
(10) The establishment and operation of national REDD financial mechanisms will be
facilitated.
(11) The development of demonstration areas into long-term carbon market projects will be
supported. This will include all required documentation for the application process and
design of benefit sharing arrangements to distribute proceeds from the sale of Verified
Emission Reduction (VER) from demonstration areas.
Support to NPA Management in Nam Poui and Nam Et Phuo Loi
In consultation with the relevant NPA unit, GTZ and DED (NPA organizational development) the programme for Nam Poui will
• Support strengthening of the NPA management unit according to DoF’s/GoL's
new directive (units at DAFO) and in anticipation of at least 20 additional staff to
be appointed full time.
• Formulation of the management plan, including reference to village conservation
contracts, zoning, etc.
• Define areas of conservation responsibility between NPA and villages during
Participatory Land Use Planning (PLUP) process
• Implement biological monitoring system based on the NPA management plan
• Improve outreach programmes by the NPA management unit.
For NEPL, in conjunction with the the NPA management unit advised by WCS, the
programme will do the following:
• Support the implementation of an improved NPA patrolling and law enforcement
system (forest substations and mobile units) within the NEPL / WCS management
unit.
Support to law enforcement
Based on an agreed upon enforcement strategy to be developed jointly with DOF, GTZ,
DED, WCS and the consultant, the programme will support provincial POFI offices and
NPA enforcement units, including DOFI. WCS will be subcontracted to provide
advisory/consultancy services to assist DoF to develop the law enforcement strategy,
which, with input from GTZ, DED and the consultant, will guide the law enforcement
component in NEPL and NP.
REDD Incentive systems/ Forest Conservation Contracts
The NPA units supported by GTZ (NP) and WCS (NEPL) will conclude forest conservation contracts with selected villages. Land use zoning is a precondition for conservation contracts. In NEPL, it is envisaged to subcontract WCS for conducting village
land use zoning in relation to the NEPL NPA boundary and assisting the NPA unit to
conclude the contracts.Eligibility of villages and forest types for forest conservation
contracts is a key issue. It is suggested that:
•
•
Eligible villages are those inside or with a border to the NPA and have an impact
on DD in the NPA,
These eligible villages may choose to include their village protection forest
outside the NPA into the contract.
(12) Approaches and incentive systems for the conservation contracts will be jointly
developed by DOF, WCS, GTZ and KfW prior to start of the programme.
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(13) Prior to effecting payments for contracts, performance will be verified by suitable
monitoring systems. For the flow of funds, it will be investigated whether incentives
might be channelled through existing banking structures (see 7. flow of funds). In
NEPL, the flow will follow the NPA/WCS Management Unit designed benefit-sharing
arrangements.
(14) Forest conservation contracts will be annually monitored in NP by the NPA unit, and in
NEPL by the NPA/WCS Management and performance rechecked by the international
consultant.
(15) In the course of the programme, further demonstration activities might be identified
addressing for example newly identified drivers of deforestation.
(16) KfW can neither own nor sell any carbon credits if generated.
Institutional Set-Up and Implementation Agreements for the FC-Module
Institutional structures on national and provincial and district level
(17) The overall responsibility for the Programme Implementation and Management rests
with DoF. As an entry point DoF will establish a Programme Management Unit (PMU)
within the Division of Planning and Cooperation who will coordinate and monitor the
FC/TC-Module implementation.
(18) The PMU consist of
•
a duly authorized Programme Manager,
•
at least two project officers with sectoral expertise (e.g. forestry, climate), and
•
officers for financial management.
All formal processes on the central governmental level (e.g. budgeting, reporting to the
Ministry of Finance) as well as administrative support for the implementation of DAs shall
be handled by the PMU. To ensure an efficient programme implementation responsible
contact persons will be designated in all relevant directorates to act as counterparts for
the PMU and consultant during preparation and review of DA-proposals. These contact
persons shall also be responsible to facilitate any administrative procedures for the
implementation of DAs within the responsibility of their directorate. Taking into account
the multi-sectoral relevance of the REDD-approach the PMU will work closely together
with all members of the REDD relevant institutions.
(19) A Steering Committee at national level will be established in order to provide policy
guidance, monitor and evaluate the overall Programme Implementation including both
FC and TC-Module and endorse annual work plan of the programme.
Division of tasks within German DC and other international partners (WCS)
(20) The components of the TC module (GTZ and DED) reflect the main areas of
intervention, i.e.: REDD Policy advice, strategy and methodology development and
institution building on national level; Land use planning and piloting forest conservation
contracts; NPA management planning; Law enforcement and Information and
Knowledge Management.
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(21) Specific activities and operational details on national level and the selected NPAs of
the TC/FC programme will be closely coordinated with all actors involved in the
implementation of the Programme (see Annex. Division of Tasks).
(22) During joint discussions, KfW, DED and GTZ agreed on the following division of tasks
between TC and FC:
•
GTZ will support the GoL in REDD policy development, initial studies e.g carbon
stock assessment for Nam Poui and support for the design and development of
REDD standards and methodologies with other national and international partners.
Local land use planning processes will be supported by GTZ in Nam Poui. It is
envisioned that after one year of FC module the land use planning process in Nam
Poui is finalized, possible deviations will be communicated timely.
•
Strengthening of NPA management capacities in NP and in collaboration with WCS
in the NEPL/WCS management unit (human resource development, support to
organisational development process, establishment of results-based management
approach, transfer of lessons learned etc.) and law enforcement (establishment of a
community outreach programme, establishment of patrolling system, capacity
building measures for ranger units etc.) on provincial level are supported by DED and
GTZ in the NPA Nam Poui. Alternative livelihood development (improved livestock
husbandry) is supported by DED through one DED-Technical Advisor, and WCS
through some logistical support as agreed upon between DED and WCS..
•
Pilot forest conservation contracts will be collaboratively developed in NPA NamEt
PhouLouey by GTZ, WCS and KfW and best practices transferred to Nam Poui. It is
understood that FC module will support the implementation the forest conservation
contracts based on the methods developed by GTZ and WCS. Lessons learned of
the REDD demonstration activities will be documented and disseminated for the
international REDD processes.
•
DED plans to provide up to 4 international experts and support the employment of up
to 6 national experts. Activities will probably start until the end of 2010. Possible DED
interventions are to 1) improve the capacities of NPA management in NP, 2) law
enforcement in Nam Poui as well as 4) depending on feasibility and availabilty of
funding alternative livelihood development in Nam Et Phou Loey and Nam Poui.
(23) TC and FC activities will be planned and documented in an overall strategic framework
and annual plans of operation.
(24) Possible CIM positions could be requested by the partner in the future.
(25) The implementation of the FC-module will be closely coordinated with aII relevant
partners.
Budget: Cost, Financing and counterpart contribution
(26) According to the Cost and Financing Plan, total project costs are estimated to amount
to EUR 11 million (137,500,000 Kip at an exchange rate of 1 EUR = 12.5 Kip) most of
which are local costs. The FC-Module of the Programme will be financed by 10 million
EUR through the German Government. KfW expects a minimum counterpart
contribution of 10% (of the FC volume) in kind or cash to be provided by the Laotian
Government. The detailed proposal for the Laotian contribution is subject to further
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specification. In NEPL, KfW recognizes the WCS contribution of EUR 1.4 million for
support of the NPA management unit and its activities from 2010-2015.
(27) Taxes, custom duties and other public charges are not eligible for financing out of
German Funds and, shall be borne entirely by the Laotian side.
(28) No financing shall be provided from project funds for any costs accrued prior to the
conclusion of the envisaged Financing Agreement. Cost savings shall be mainly used
for additional REDD measures.
Flow of Funds and tendering
(29) For the implementation of these funds a Financing Agreement will be concluded
between the Lao PDR represented by the Ministry of Finance and KfW. Details of the
FC module of the Programme will be defined in a Separate Agreement to be signed by
the MAF and KfW.
(30) For disbursements, the KfW “Guidelines for Disbursement of Funds of Financial Cooperation with Developing Countries and Comparable Programmes” shall apply. As
advance payments are not possible on either side, a disposition fund is foreseen.
Disbursement from KfW will be based on a three-months advance finance-planning
and on accepted appropriate evidence of expenditures from the prior period. This
covers all expenses of up to 350,000 EUR. Contracts that cover an amount of more
than 350,000 EUR and consulting services shall be financed by the direct
disbursement procedure. The criteria for readiness of disbursement of the German
Funds will follow the mentioned KfW disbursement guidelines and additional
prerequisites.
(31) Following are the processes to be followed according to KfW regulations: After prior
written agreement by KfW the Authorised Parties will arrange for a Special Account to
be opened (Special Account in Euro) with a bank (bank in charge of the account),
which will be kept in its own name or in the name of a third party authorised by the
Authorised Parties with a commercial bank / central bank in the country of the
Authorised Parties. The Special Account must be kept exclusively for payment
transactions under the Disposition Fund on a credit basis. KfW has the right to obtain
information on this account at all times.
(32) For payments for financing costs of day-to-day-work of the NPAMU, each NPAMU will
establish a local account on local level. The NPA accounts will be replenished from the
special account. The PMU will in time issue an implementation decree to enable the
necessary financial transactions from national to local accounts.
(33) Concerning the payments to individual households based on forest conservation
contracts, the formal banking sector could provide transaction channels to distribute
financial incentives/compensations to the rural households and villages participating in
the REDD programme possibly via deposit accounts. The payments to the
beneficiaries will be initiated by the NPAMU and effected via the national PMU. For a
detailed flow of funds the availability and quality of alternative transaction channels
shall be analysed.
(34) In accordance with the prevailing regulations for special account procedure the special
account itself as well as the local NPAMU accounts shall be audited independently on
an annual basis.
(35) All use of project funds and procurements of goods and services will follow KfW guidelines. These will be included in the separate agreement. The consultant will assist
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PMU for the development of the specific disbursement guidelines (e.g. unit cost
development and regular monitoring).
(36) The Financial Management is to be further detailed after agreement on contractual
organisation and fund flows.
Implementation agreements and disbursement conditions for the FC-Module
(37) The FC-Module implementation will start after finalizing the necessary administrative
procedures on the German and Laotian side, including the assignment of staff for the
PMU and NPAMUs.
(38) Prior to the disbursement of the FC Funds for NPA Nam Poui the NPA management
unit in Nam Poui shall have appointed at least 20 additional staff.
(39) Prior to disbursement of FC funds for law enforcement an agreed upon strategy of the
law enforcement strategy shall be submitted to KfW for consent (WCS will be
subcontracted to provide advisory/consultancy services to assist DoF to develop the
law enforcement strategy, which, with input from GTZ, DED and the consultant, will
guide the law enforcement component in NEPL and NP.)
(40) DOF will establish the PMU including ToR of the PMU prior to start of programme.
(41) A Programme manual (plan of operation) for the FC-Module will be worked out in the
first half year with the support of the Consultant specifying the programme concept
including the necessary procedures at all levels. The programme manual will specify
the general concept on DA implementation. The manual will be worked out in
coordination with TC Module. The programme manual will be submitted to DOF and
KfW for consent. In addition, the Consultant will submit to DOF annual workplans for
approval including definition of milestones and outputs.
(42) A joint FC/TC Milestone Review will be conducted by DOF and German Development
Cooperation on basis of an independent mid-term review after project year 3. Key
milestones for this review concern the overall quantum of FC-Module-activities and
fund disbursement. At least 40 Conservation Contracts with villages are implemented,
agreed upon law enforcement strategies will be implemented. If agreed milestones
have not been reached, the Programme may consider terminating the programme.
Additional milestones will be defined in the manual of operation in close coordination
with all partners at the beginning of the programme implementation
Assignment of a Consultant
(43) The FC-Module implementation will be facilitated by an Implementation Consultant.
The Consultant will support the Laotian partner in all tasks referring to the programme
implementation as described in this document, including the support to the Programme
manual (plan of operation). The Consultant will assist the PMU and NPAMU in the
planning, administration, technical steering and monitoring of the programme. Further,
the consultant will supervise implementation.
(44) The Consultant team will consist of
•
The International CTA (Chief Technical Advisor) will be the Consultant Team leader.
He/She will be responsible for the overall steering and execution of all consultant
services and will assist the Laotian partner in overall programme planning to ensure
timely achieving of the programme objective. He/She should have profound
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experience in the field of project planning & management of natural resource
management projects (National Park Management, REDD) as well as internationally
funded projects (including fund management, procurement, etc). Additionally,
experience in institutional building and capacity building is required. The CTA shall be
assigned full time at the start of the programme. Later his/her assignment shall be
reduced to intermittent assignments (up to 48 months).
•
Programme Facilitator (National Expert, up to 72 months) with proven experience in
the coordination and day-to-day management of complex natural resource
management projects. The Programme Facilitator will especially assist in financial
management, contract negotiation, programme supervision as well as day-to-day
programme management. He/she will set up systems for routine monitoring and
reporting, documentation and communication of policy lessons.
•
REDD Markets/Financial Mechanism and Distribution Expert (tentatively up to 8
month international expert) to assist in the development of a sustainable financing
mechanism compatible to the international REDD-structure as well as in line with the
Laotian regulations. Further, he/she will assist in a detailed mechanism on carbon
payments distributions;
•
Other topics will be covered with international experts for REDD (2 months), (Carbon
and Project-) Monitoring (10 months), and Rural banking (3 months) as well as
national experts for GIS/Data base (20 months), Zoning/PLUP (6 months), Rural
banking and financing (12 months) and (Carbon- and Project) Monitoring (25 months)
plus 8 unallocated months as well as local technical administrative and financial
support staff.
•
Personnel Inputs should be concentrated in the first years of the programme with
certain input to be reserved for the consolidation/evaluation phase. The Consultant is
asked to propose a staff and time-schedule according to experience of staff as well
as his professional judgment and knowledge of the local conditions. Deviations from
technical specifications and time allocations mentioned above have to be justified.
(45) The consultant will execute the services in close cooperation with TC (GTZ and DED).
(46) The necessary training inputs will be developed and planned complementary to TC in
the first programme phase and will be part of the overall capacity building programme.
(47) Office space for TC and consultant staff will be established at national and park level
with running costs mainly to be covered by the Consultant
(48) It is envisaged that the Consultant contract covers the whole programme period of
seven years. Additional to the annual evaluation of performance, 3 years after
commencement of services, performance of the consultant will be reviewed by a midterm programme evaluation. Results of the evaluation may have impact on the
consultant contract including termination of the contract.
(49) KfW Guidelines for procurement of consulting services shall apply. The selection of
Consulting Services shall be open to public international bidding. The evaluation of
tendering will be lead by the DOF with support through a tender agent paid for through
German funds.
(50) Knowledge of English language is a prerequisite for all experts.
(51) Evaluation may have impact on the consultant contract including termination of the
contract.
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(52) Workshops, seminars, trainings etc. will be paid from the programme budgets
(53) Additionally, WCS will provide the following advisory services to:.
Oversee implementation of REDD / NPA Management project components at the NEPL
site, assuring integration of CliPAD project activities with ongoing NEPL NPA management
activities.
•
•
•
•
Office space and administrative services in the NEPL NPA Management office,
Viengthong and WCS Vientiane including to
-disperse and account for funds routed through the NPA office administrative
systems and staff,
-countersign with NPA Manager on project expenditures
Meetings with the KfW consultant to provide technical assistance on project
implementation at NEPL site.
Advise and assist DoF to develop the law enforcement strategy, which will guide
the law enforcement component in NEPL , with lessons transferred to NP.
Oversee REDD components and compile overall project design document for
NEPL, utilizing technical inputs that have been contracted out.
(54)
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