INTEGRATED SAFEGUARDS DATASHEET APPRAISAL STAGE

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1 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized I. Basic Information Date prepared/updated: 05/04/2010 INTEGRATED SAFEGUARDS DATASHEET APPRAISAL STAGE Report No.: AC Basic Project Data Country: Cameroon Project ID: P Project Name: Cameroon - Competitive Value Chains Task Team Leader: Vincent Palmade Estimated Appraisal Date: May 3, 2010 Estimated Board Date: June 24, 2010 Managing Unit: AFTFW Lending Instrument: Specific Investment Loan Sector: General industry and trade sector (100%) Theme: Export development and competitiveness (100%) IBRD Amount (US$m.): 0.00 IDA Amount (US$m.): GEF Amount (US$m.): 0.00 PCF Amount (US$m.): 0.00 Other financing amounts by source: BORROWER/RECIPIENT Environmental Category: A - Full Assessment Simplified Processing Simple [] Repeater [] Is this project processed under OP 8.50 (Emergency Recovery) or OP 8.00 (Rapid Response to Crises and Emergencies) [ ] No [] 2. Project Objectives The Project Development Objective is to contribute to the growth of the wood and tourism value chains by improving their competitiveness and the investment climate. The project will support specialized infrastructure investments, vocational training, policy reforms and direct support to firms through an innovation grant. 3. Project Description Component 1: Sustainable wood transformation (US$2.2 million) The objective of this component is to increase, sustainably, the economic value added of the wood value chain in Cameroon (second and third transformation). The project will support a critical mass of interventions in the wood value chain to trigger productive private investments and job creation. Although the project will promote wood products, the net environmental impact should be positive because it will promote the use of certified wood (coming from sustainable forestry exploitations), productive cutting techniques (allowing much more wood to be used from a given tree), secondary species (left abandoned today) and drying techniques (allowing the wood products to have a much longer shelf life).

2 This component includes the following three subcomponents: (i) improvement of the policy framework; (ii) promotion of sustainable wood transformation techniques and vocational training and, (iii) preparation studies for the creation of a wood cluster in Yaoundé. These subcomponents are further detailed below. Subcomponent 1.1. Reforms to promote the transformation of certified dry wood (US$0.4 million) The project will finance a consulting contract to improve the institutional, policy and regulatory framework along the wood value chain. The consultant will recommend, on the basis of relevant international good practices, new policies to: (i) encourage the development of a domestic market for competitive certified wood, (ii) encourage the drying of wood, including around the forests in the East to save on transportation cost and (iii) encourage wood transformation. The consultant will explore the opportunity to develop a common regional policy to facilitate controls and avoid a "race to the bottom" between countries facing similar challenges and opportunities. The consultant will also recommend a new regulatory and institutional framework to encourage the formalization of the wood artisans and encourage/recognize the use of dry legal/certified wood by them. (US$0.3 million) The project will finance a consulting contract to create the Wood Federation regrouping private operators all along the value chain. (US$0.1 million) Subcomponent 1.2. Promotion of sustainable wood transformation techniques and vocational training (US$1.1 million) The project will finance a consulting contract which will document the best possible uses for various types of wood together with the standards, norms and construction techniques that should be applied. It will include information campaigns and documentation to promote the use of dried wood cut along standard dimensions using high yield cutting techniques, highlighting to both producers and consumers their economic and quality advantages. The detailed technical information on wood products and transformation techniques will be made available through a web site that will be managed by the Ministry of Forestry. (US$0.4 million) The project will finance an in-depth study to develop specific recommendations as to how to improve the provision of vocational training by both the public and private sector in the wood value chain. (US$0.1 million) The project will finance specific pilot programs as recommended by the above mentioned study - e.g. inviting world class technical experts, such as the Canadian Forintek and the French "Compagnons" to spend several months in Cameroon training large numbers of artisans as it was done successfully in Vietnam. (US$0.6 million) The project will also support under component 3.2 (innovation grant) users of high yield and eco-friendly equipment and private providers of vocational training. The innovation

3 grant will not finance equipment for the wood value chain until the wood cluster in Yaounde is established or until the legal, regulatory and institutional framework for wood transformation is improved with support from the Forest and Environment Sectoral Program and the FLEGT process (Forest Law Enforcement on Governance and Trade). Subcomponent 1.3. Preparation studies for creating a wood cluster in Yaoundé (US$0.7 million) The project will finance the preparatory studies necessary for the creation of a wood cluster in Yaoundé. Future financing (e.g. through an possible additional financing) would be available subject to specific conditions and approval by the Board of the World Bank. The studies will cover the economic feasibility, technical design, institutional arrangements, social and environment aspects - including a detailed description on how it will be ensured that the cluster will be supplied with legal wood. Component 2: Ecotourism (US$8.7 million) This component, together with the third component tackling the cross-cutting investment climate issues, aims at addressing a critical mass of the constraints preventing the growth of the tourism industry in Cameroon. The core of the proposed tourism development strategy is to focus on Cameroon's world class touristic assets to constitute a few and compelling touristic packages. This component includes the following two subcomponents: (i) investments to upgrade and preserve world class tourism assets; and (ii) technical assistance to improve the regulatory and institutional framework of the tourism sector. Subcomponent 2.1. Upgrading of world class tourism assets (US$6.7 million) - Mount Cameroon (US$2 million) The objective is for Mount Cameroon (4,095 m) to emulate Mount Kilimanjaro (5,825 m) which welcomes more than 40,000 tourists a year (compared to one thousand for Mount Cameroon). Mount Cameroon has unique faunal and animal diversity (including mountain elephants) and is close to attractive beaches (Limbé), cultural centers (Buea) and a large cosmopolitan city with an international airport (Douala). The project will finance: (i) the remaining 80km (out of 120km) of physical demarcation left to be completed around the Park (ii) the update and validation of the Mount Cameroon Management Plan (Mount Cameroon has been declared a National Park in December 2009) and technical assistance to build the capacity of the Park Management (in partnership with KFW) (iii) technical assistance to build the capacity and leadership of Mt CEO. Mt CEO is the successful inter-communal NGO offering ecotourism services on Mont Cameroon - with a revenue sharing agreement with local communities. Mt CEO will also federate, coordinate and provide technical support to other accredited actors (e.g. training and equipping of guides and porters ), (iv) the establishment of a proper reception area in Buéa; (v) the rehabilitation/construction and equipping of intermediate camps, shelters and cookhouses as well as trails, signaling and communication systems

4 and (vi) local promotion activities. "Hard" investments within the Park and promotion activities will be financed only after the Mount Cameroon Management Plan has been validated and the Park management has been put in place. The project will also support as part of component 3.2 (innovation grant) private investments in eco-lodges and restaurants in and around the Park. - Chiefdoms in the Western and North Western Provinces (US$1.5 million) The project will finance: (i) the creation of museums and the development of areas for artisanal activities in ten Chiefdoms (to be selected following a competitive process) (ii) capacity building and equipment to help protect precious artefacts from fire and theft (on the basis of a code of good conduct), (iii) road signaling system around the region and (iv) local promotion and advertising campaigns through support to the local "Offices du Tourisme". The project will also support as part of component 3.2 (innovation grant) private investments (e.g. hotels and restaurants). - Kribi (US$1.5 million) With its attractive beaches and city center, Kribi is a key tourism destination. The project will finance the upgrading of three beaches north of Kribi's city center (Ngoyé, Mpala and Londji). This will include rehabilitation of access roads, parking areas, sanitation and surveillance facilities. The project will also finance the development of a commercial/artisanal area at Ngoyé beach (the beach closest to Kribi's center) as well as the rehabilitation of Kribi's public lighting. These supports are based on the urban and tourism development plan being finalized. The project will also provide technical assistance to the "Office Intercommunal du Tourisme" (e.g office equipment, training and local promotion) - the private sector is represented on the board of the Office. Private investments (e.g. in hotels and restaurants) will be supported as part of component 3.2 (innovation grant). - Campo Ma'an (US$1.7 million) Campo Ma'an is a National Park with very strong eco-tourism potential (e.g. Gorillas, drills and elephants) 70 km south of Kribi. The coastal road from Kribi to the Park is being rehabilitated. The Park has benefited from offsets from the Chad-Cameroun Pipeline ($0.4 million a year through FEDEC - scheduled to end on December 2010) as well as from technical assistance provided by World Wildlife Fund (WWF). A Park management plan was completed in 2008, the area is secured and the habituation of Gorillas has started. The project will finance: (i) the update of the 2006 Management plan, (ii) technical assistance to strengthen the capacity of the Park Management with respect to eco-tourism activities, (iii) activities in support of the local indigenous population (iv) the completion of the habituation program of Gorillas (focused on the internal island of Dipikar) which started with the technical support of WWF, (v) the rehabilitation of 46 km of roads and trails, as well as bridges, construction of watchtowers and platform for the set up of ecolodges (to be financed through the innovation grant) and set up of road signs from Kribi to the entrance of the National Park,

5 (vi) local promotion activities. "Hard" investments within the Park and promotion activities will be financed only after the updated Campo Ma an Management Plan has been published and the eco tourism capacity of the Park management has been strengthened. Key private investments (e.g. ecolodges) will be supported as part of component 3.2 (innovation grant). Subcomponent 2.2. Reforms of the tourism policy framework, promotion and vocational training (US$2 million) The project will finance a feasibility study for the creation of a new dedicated institutional set up for the management of protected areas and tourism sites inspired by relevant international good practices. (US$0.3 million) The project will support the creation of the Cameroon Tourism Federation regrouping private operators. (US$0.1 million) The project will support the development of an e-tourism portal to promote Cameroon as a tourism destination, with on-line reservation facilities accessible to small hotels such as World Hotel Link. This portal will be managed by the Cameroon Tourism Federation. (US$0.3 million) The project will finance national and international campaigns to promote the sites rehabilitated by the project. The content and format of these campaigns will be decided in partnership with the Cameroon Tourism Federation and the Minister of Tourism. (US$0.4 million) The project will finance an in-depth study to develop specific recommendations as to how to improve the provision of vocational training by both the public and private sector in the tourism sector. (US$0.1 million). The project will finance the implementation of some of the key recommendations from the above mentioned study - e.g. support to the CEMAC School for Hotel and Tourism. (US$0.8 million) The project will also support through component 3.2 (innovation grant) private providers of vocational training. Component 3: Cross-cutting actions to support competitiveness (US$10.2 million) This component includes the following two subcomponents: (i) support to investment climate reforms; and ii) innovation grant mechanism to help increase the competitiveness of small and medium enterprises in the wood and tourism value chains. Subcomponent 3.1. Investment climate reforms (US$4.7 million) - Support to the Cameroon Business Forum (US$1.0 million).

6 The Cameroon Business Forum (CBF) has been set up as the main platform for Public Private Dialogue on investment climate issues. The Permanent Secretariat of the CBF plays a key role - it is responsible for the organization of the Forums (e.g. high level meeting every six months), prepares the agenda, leads the technical work (carried out by working groups) and crucially, follows-up on the reforms decided upon at the meeting. The project will complement the support which is being provided by the International Finance Corporation (IFC). The project will finance three dedicated staff of the Permanent Secretariat as consultants (one economist, one communication specialist and one senior assistant). The project will finance technical assistance to the General Directorate of Economy within MINEPAT targeted at the implementation of the reforms enacted by the CBF. The project will also finance three consulting contracts to support: (i) business registration reforms, (ii) electronic payment of taxes and (iii) the generation of new investment opportunities in collaboration with the Investment Promotion Agency (IPA). - Support to a business taxes and licenses guillotine (US$1.4 million) The project will finance technical assistance to design and implement a "tax and business licenses guillotine". This will enable to reduce the large number of taxes and licenses burdening the life of enterprises and affecting competition. This will entail a consulting contract to set up an on-line inventory of all business taxes and a systematic review to simplify, consolidate and eliminate business taxes and licenses. It will be followed by targeted technical assistance to support the implementation of the reforms. - Support to the Competitiveness Committee (US$2.3 million). The project will finance: (i) review of investment regimes - including import taxation of capital goods, (ii) five benchmarking studies to be publicly disclosed on key factor costs (transportation, financial services, telecom, cement, fertilizers and land); (iii) three consulting contracts to develop/implement strategies for export driven agribusiness value chains; (iv) a study to develop the ecotourism potential of the Dja biosphere reserve and Rhumsiki (v) master plan to develop Cameroon s Littoral growth pole; (vi) a consulting contract to evaluate the feasibility and support the implementation of the planned national competitiveness innovation grant fund (PARCEC), and (vii) capacity building of the Competitiveness Committee (e.g. upgraded web site and training of staff). Subcomponent 3.2. Innovation grant to support key private investments in the wood and tourism value chains - «Fonds d'appui à la Compétitivité» (FAC) - (US$5.5 million) The objective of the Fonds d'appui à la Competitivité (FAC) is to kick-start key private investments by SMEs in the wood and tourism value chains in a context where access to finance if very difficult and the cost of imported equipment very high due to import taxes and tariffs (as discussed in component 3.1 above). The innovation grant will focus on investments which have strong positive externalities on the other actors of the value chain. A positive list has been developed to that effect - it includes vocational training, creation and diffusion of key information (e.g. through business associations), business

7 development services, equipment for drying plants using certified wood, high yield eco friendly equipment for SMEs, equipment for eco-lodges and restaurants next or within the two National Parks supported by the project. Support for the main hard investments on this positive list will be obtained through a competitive process (through calls for expression of interest) and will be subjected to specific terms of reference, with an important emphasis on innovation and learning spillovers. 20% of the fund will not be subjected to the positive list to provide the flexibility to support unanticipated projects with strong positive externalities in the two value chains. The FAC will co-finance 50 percent of the proposed investment costs. The minimum subsidy amount is CFAF 5 million (US$11,111) and the maximum is CFAF 50 million (US$111,111). Applicants must meet the following eligibility criteria: - Legal status allowing commercial activities in Cameroon; - Structure created and operating in Cameroon, under Cameroonian law; - In operation for over three years; - SMEs: maximum of 50 employees, annual turnover under CFAF 500 million, capital assets under CFAF 200 million; - Must show their capacity to finance the remaining 50 percent of the investment; - Cannot have any direct or indirect link with any member of the Steering Committee, Management Unit or Review Committee (either through capital participation, service provision or direct family relation). The governance and selection process will be subject to very strict rules to ensure independence, integrity and competency. They are described in detail in Annex 6: Implementation Arrangements. At least, once every quarter the FAC Management Unit publishes an Expression of Interest inviting interested firms to apply to the FAC. A first screening of applications is then completed by the FAC Management Unit, based on the eligibility criteria. The Management Unit then undertakes a detailed analysis of the applications that meet the eligibility criteria and rates them. It then submits the detailed analysis, with the ratings, to the Review Committee for final decision. Once the application is selected, a Financing Agreement is established between the beneficiary and the FAC Manager; the Financing Agreement describes the different funding conditions. The Financing Agreement will stipulate that the beneficiary will need to submit information to the FAC Management Unit for the next three years for monitoring and evaluation (M&E) purposes. Special efforts will be made to seek out and support businesses managed by women. The third quarterly Expression of Interest will be reserved to businesses managed by women and the FAC will have as one of its objectives to continuously increase the share of firms benefiting from the FAC which are managed by women. Project coordination (US$5 million)

8 The component will support the establishment, equipment and operations of a dedicated team (to be hired competitively by a specialized firm) within the Ministry of Economy, Planning and Regional Development (MINEPAT) reporting to a high level Steering Committee. The team will be responsible for overall project implementation, procurement, financial management and M&E. Reimbursement of Project Preparation Advance (US$2.9 million) and non allocated funds (US$1 million) 4. Project Location and salient physical characteristics relevant to the safeguard analysis During the design of the project, the exact location of the activities has not been precisely defined; nevertheless a number of sites have been identified in the course of project preparation. These various sites are summarized below: - Yaoundé (preparation studies for the creation of a wood cluster to be financed through a possible additional financing subject to specific conditions and approval by the Board of the World Bank) - Campo Ma'an (development of ecotourism around Gorillas in the National Park) - Kribi (upgrading of basic infrastructure for increased ecotourism) - Mount Cameroon (upgrading of facilities for increased ecotourism) - Bafoussam, Bamenda, Foumban Chiefdoms (upgrading of facilities for increased ecotourism) 5. Environmental and Social Safeguards Specialists Ms Lucienne M. M'Baipor (AFTCS) Mr Emeran Serge M. Menang Evouna (AFTEN) 6. Safeguard Policies Triggered No Environmental Assessment (OP/BP 4.01) Natural Habitats (OP/BP 4.04) Forests (OP/BP 4.36) Pest Management (OP 4.09) Physical Cultural Resources (OP/BP 4.11) Indigenous Peoples (OP/BP 4.10) Involuntary Resettlement (OP/BP 4.12) Safety of Dams (OP/BP 4.37) 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 1. Describe any safeguard issues and impacts associated with the proposed project. Identify and describe any potential large scale, significant and/or irreversible impacts: The project is category A because it will finance all the key preparation studies for the creation of a wood cluster in Yaoundé that would be financed through a possible

9 additional financing subject to specific conditions and approval by the Board of Executive Directors. Also, this project is expected to finance wood transformation equipment in that wood cluster in Yaoundé. OP 4.01 Environmental Assessment. The Borrower has prepared an Environmental and Social Management Framework (ESMF) published and disclosed on December 23, 2009 (Report E2326), as the locations of the sites for the wood transformation and ecotourism components (and their related investments) were not known at the time of project preparation. The ESMF will guide the screening, analysis, and safeguards approval of future activities, The ESMF also presents sample terms of reference for activities eligible for environmental assessments (EAs), environmental management plans (EMPs), and also environmental guidelines for contractors (roads rehabilitation and buildings). The ESMF identified the various potential environmental impact of the project. The potential negative impacts broadly focus on the following: (i) soil, surface water and groundwater pollution risks due to the industrial waste accumulation from the wood cluster, as well as renovated accommodation facilities; (ii) loss of vegetation and landscape transformation following the installation of infrastructure (cluster, tourism facilities, works), which will enhance the risks of destroying the habitat of threatened species and the ecologically fragile areas; (iii) risk of disturbance to wildlife by noise during works and by the influx of tourists; and, (iv) risk of degradation of sacred forests by wood harvesting. The establishment of a pilot wood cluster in Yaoundé (prepared during this project and which would be financed through an additional financing subject to specific conditions and approval by the Board of the World Bank) will probably provoke resettlement even if the final location of the cluster has not yet been decided (various sites have however, been proposed and visited). The other negative social impacts that may be generated by the project would broadly cover: (i) risk of conflicts over land expropriation and risks related to the acquisition of land for the purpose of infrastructure building (e.g. cluster, tourist accommodation); (ii) risk of increased prevalence of STIs and HIV / AIDS; (iii) increased risk of lung disease affecting workers and employees due to air pollution by industrial wastes (e.g. sawdust, chemical products, etc.); (iv) risk of overcrowding, especially with the saturation of infrastructure and basic services (housing, education services and health) in project areas; and (v) risk of deteriorating archaeological and cultural heritage linked to the destruction of cultural and archaeological relics (e.g. tombs, sacred sites, archaeological sites, etc.) and disruption of traditional customs and practices. OP 4.04 Natural Habitat. No critical natural habitat is being converted as such, but, facilities will be built inside national parks, and roads and other support infrastructure will be rehabilitated to promote ecotourism. Impacts on sensitive habitats will thus be monitored and mitigated as required.

10 OP Cultural Property. As the project expects to promote cultural tourism mostly in the western region of the country, the ESMF includes a specific section on the management of risks related to cultural assets. Specific mitigation measures related to cultural property will be introduced in the sub contractor s contracts. A social assessment will be prepared prior to the commencement of physical works. The Bank s safeguards policies will be applied under the innovative grants subcomponent and relevant mitigation measures defined and applied when needed. OP Indigenous Peoples. As the project will be implemented in Campo Ma an National Park, an area where there are Indigenous Peoples, it will be critical to ensure that Pygmy communities share in the benefits of the project and minimize the risk of marginalization. An Indigenous Peoples Plan has been prepared and disclosed on January 19, 2010 (Report IPP401). The indicative budget for the IPP is US$300,000 and will be implemented in close collaboration with other partners working with IPs in this region. OP 4.12 Involuntary Resettlement. Components 1 and 2 of project will support the preparation of studies for the sustainability of wood transformation and development of ecotourism in Cameroon through the following activities: the investment to upgrade and preserve world class tourism assets in area around Mount Cameroon, Campo Ma an, the upgrading of Kribi s beach and city center, and Chiefdoms. Some or all of these activities may involve land acquisition and, in some cases, involuntary resettlement. A Resettlement Policy Framework was prepared and disclosed on January 19, 2010 (Report RP903) to guide resettlement and land acquisition planning and implementation in future subprojects. Resettlement Action Plans will also be prepared, as appropriate. Resettlement issues are also likely to arise in the context of the wood cluster in Yaoundé prepared under this project and which would be financed by an additional financing subject to specific conditions and approval by the Bank's Board of Executive Directors. A Process Framework has been prepared for the Mount Cameroon National Park, and disclosed in Cameroon on April 20, 2010 and at the InfoShop on April 22, 2010 (Report E2326) to enable neighboring communities to participate in the conception of the different components of the project, the management of natural resources, and in the overall decision-making process. For the Campo Ma'an National Park, a Process Framework has been prepared and disclosed on May 3, 2010 (Report RP 903). It will be finalized once the park's Management Plan, prepared in 2006, is updated. OP 4.36 Forests. As the project will finance the necessary preparation studies for the creation of a wood cluster in Yaoundé that would be financed through an additional financing, this will generate a timber demand from forests. Furthermore, the current project will also offer an innovative grant which could increase forest activities demand. Even if the project does not directly promote timber logging, it will provide an added value to the wood, which could have an indirect impact on the forest. In the last years, Cameroon has not been successful at addressing illegal logging activities throughout the country. The preparation and design of the wood cluster in Yaoundé will need to address concerns about illegal logging to avoid any use of illegal timber by the cluster. To prevent such risk, the project envisions (through close collaboration with the ongoing Forest and Environment Sector Development Policy Credit, PSFE) to ensure that only

11 timber coming from official allocated titles, which are legal and sustainably managed, is used by the cluster. A control system for timber origin will be put into place with a regular checking by an independent observer. In addition, the Government of Cameroon is signing with the European Commission a Voluntary Partnership Agreement that will promote better forest law enforcement (FLEFGT). These two tools (PSFE and FLEGT) will be used to prevent the use of illegal timber by the cluster. The wood cluster EMP will place a strong emphasis on the best control of wood origin and a third party control mechanism. 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area: As the project will finance the necessary preparation studies for the creation of a wood cluster in Yaoundé that would be financed through an additional financing, this will generate a timber demand from the forest. Furthermore, the current project will also promote innovative grants activities able to increase forest activities demand. Increased tourism in Cameroon could have long term negative environment and social impacts (degradation of natural sites, impact on customs and habits of local populations). However, the project intends to focus on ecotourism to ensure the development of sustainable tourism activities. For the national parks, the indirect risk would be the reduction of biodiversity due to uncontrolled tourism activities or agriculture encroachment. 3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts. To minimize the risks associated with the establishment of the wood cluster, the project will initially focus on technical assistance that will be provided to identify suitable alternatives or options. The cluster location will be subject to a detailed screening based on the social and environmental impacts analysis. 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. The Borrower hired Cameroonian consultants with recognized environment and social expertise to undertake different diagnostics under the supervision of the Ministry of Environment and Protection of Nature. The key to ensuring sustainability of the project investment lies in the satisfactory implementation of the Environmental and Social Management Plans. The Government of Cameroon has recognized the importance of strengthening national environmental and social safeguard policies and their implementation. The Ministry of Environment and Protection of Nature as such remains the only regulator of environmental issues. The Government has also recognized its lack of capacity to deal adequately with environmental and social negative impacts of the projects. Since 2009, the World Bank is providing technical assistance to the government to improve its capacities under the Environmental and Social Capacity Building Project for the Energy

12 Sector Project. This project involves several main governmental actors (MINEP, MINSANTE, MINAS, MINEE, MINDAF and MINCULT) and Civil Society Organizations. If at the national level, the critical mass of capacity is growing, in the meantime, at the PIU level, the environmental and social capacity to deal with environmental and social impacts remains extremely weak. An Environmental and Social Impact Assessment (ESIA) will be prepared for each activity planned for implementation during the first year of the project, including environmental and social management and monitoring plans (EMPs). The EAs will include in-depth analysis of the subproject alternatives and possible cumulative impacts. The EA and EMP preparation process will be consistent with national environmental policies, laws and regulations and with the World Bank s environmental and social safeguard policies. To ensure the satisfactory implementation of environmental and social concerns through the project, it was decided to create an Environmental Social Unit headed by an Environmental and Social Specialist (ESS) who will be hired under Terms of Reference satisfactory to the World Bank. The ESS will work closely with the representatives of several ministries, including: the Ministry of Environment and Nature Protection, the Ministry of Social Affairs, the Ministry of Tourism and also communities and NGOs. Furthermore, the government has budgeted US$1.3million in the project to deal with environmental and social safeguards issues. 5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. The key stakeholders at the institutional level are: Ministry of Economy and Planning Ministry of Environment and Nature Protection Ministry of Forests and Fauna Ministry of Tourism Ministry of Social Affairs GICAM: private sector representative body At the NGO level: World Wildlife Fund SNV: international NGO supporting small scale wood transformation RAPID, CED, APIFED: national NGOs working with Pygmies Other stakeholders: Wood craftsmen associations Urban and rural councils Consultation and Disclosure. Extensive consultations at the national and local were carried out as the safeguards documents were prepared. The key development challenges affecting Pygmies raised during the consultation of the fourteen pygmy s "campements" include: (i) restriction of access to forest and fauna resources; (ii) shrinking resources;

13 (iii) lack of access to basic infrastructure and social services (health and education); (iv) marginalization from decision-making; and, (v) difficulty in adapting to modern production systems and loss of identity. These issues were integrated as an action plan in the IPP and will be implemented by the project team. The ESMF, RPFs and IPP were publicly disclosed in country as well as in the World Bank s Infoshop. The draft ESMF was made available for review and comment to the Ministry of Environment and Protection of Nature, Ministry of Social Affairs, prior to its publication. Disclosure at the InfoShop occurred on December 23, 2009 for the ESMF (disclosed in Cameroon also on December 23, 2009), on January 19, 2010 of the RPF and IPP (both were disclosed in Cameroon on January 18, 2010). A draft Process Framework for Mount Cameroon was disclosed in Cameroon and Infoshop on April 20, A draft Process Framework for Campo Ma an was disclosed in Cameroon and Infoshop on May 3, An update of the Campo Ma an Management Plan and finalization of the Process framework and preparation of the Mount Cameroon Management Plan will be among the project outputs. It should be noted that KFW will be an important partner in the Mount Cameroon Management Plan preparation process. The first outputs are expected to be delivered no later than 6 months after project effectiveness. The project will comply with national and World Bank policies on consultation and disclosure during the preparation of the above mentioned documents. B. Disclosure Requirements Date Environmental Assessment/Audit/Management Plan/Other: Was the document disclosed prior to appraisal? Date of receipt by the Bank 12/15/2009 Date of "in-country" disclosure 01/18/2010 Date of submission to InfoShop 01/19/2010 For category A projects, date of distributing the Executive Summary of the EA to the Executive Directors Resettlement Action Plan/Framework/Policy Process: Was the document disclosed prior to appraisal? Date of receipt by the Bank 12/15/2009 Date of "in-country" disclosure 01/27/2010 Date of submission to InfoShop 02/01/2010 Indigenous Peoples Plan/Planning Framework: Was the document disclosed prior to appraisal? Date of receipt by the Bank 12/15/2009 Date of "in-country" disclosure 01/18/2010 Date of submission to InfoShop 01/19/2010 Pest Management Plan: Was the document disclosed prior to appraisal? Date of receipt by the Bank Date of "in-country" disclosure Date of submission to InfoShop

14 * If the project triggers the Pest Management and/or Physical Cultural Resources, 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 (to be filled in when the ISDS is finalized by the project decision meeting) OP/BP/GP 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 Natural Habitats Would the project result in any significant conversion or degradation of critical natural habitats? 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 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 Indigenous Peoples Has a separate Indigenous Peoples Plan/Planning Framework (as appropriate) been prepared in consultation with affected Indigenous Peoples? If yes, then did the Regional unit responsible for safeguards or Sector Manager review the plan? If the whole project is designed to benefit IP, has the design been reviewed and approved by the Regional Social Development Unit or Sector Manager? OP/BP 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? OP/BP Forests Has the sector-wide analysis of policy and institutional issues and constraints been carried out? Does the project design include satisfactory measures to overcome these constraints? Does the project finance commercial harvesting, and if so, does it include provisions for certification system? No N/A N/A N/A N/A No

15 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? D. Approvals Signed and submitted by: Name Date Task Team Leader: Mr Vincent Palmade 05/04/2010 Environmental Specialist: Mr Emeran Serge M. Menang Evouna 05/04/2010 Social Development Specialist Ms Lucienne M. M Baipor 05/04/2010 Additional Environmental and/or Social Development Specialist(s): Approved by: Regional Safeguards Coordinator: Ms Alexandra C. Bezeredi 05/04/2010 Comments: Sector Manager: Mr Peter J. Mousley 05/04/2010 Comments: