Madagascar - Environment Program Project

Document of The World Bank FOR OFFICIAL USE ONLY Report No: 17297 IMPLEMENTATION COMPLETION REPORT REPUBLIC OF MADAGASCAR ENVIRONMENT PROGRAM (Cr. 2125 MAG) JANUARY 15, 1998 Environment Division Africa 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.  ABBREVIATIONS AND ACRONYMS AfDB African Development Bank AGEX Agences d'execution AGIR Appui A la Gestion de l'environnement A travers des Instruments Regionalises et l'approche locale (Regional and local Environment Management Support Component) ANAE Association Nationale d'Actions Environnementales (National Association for Environmental Actions) ANGAP Association Nationale pour la Gestion des Aires Protegees (National Association for the Management of Protected Areas) APPP Annual Participatory Programming Process ARD Associates in Rural Development Inc. CAPE Composante Aires Protegees et Ecotourisme CFSIGE Centre de Formation pour les Sciences de l'Information Geographique et Environnementale (Environment Information Training Center) CI Conservation International CNRE Centre National de Recherche Environnementale CNRO Centre National de Recherche Oceanographie COS Cornite d'Orientation et de Suivi (Steering Committee of the Environment Program) DD Direction des Domaines (Land Titling Directorate) DEF Direction des Eaux et Forets (Water and Forests Directorate) DPRA Direction de Patrimoine et de la Reforme Agraire EDMS Environmental Data Management System EPI, EP2, EP3 Environment Program Phase ESFUM Eco-Systemes Forestiers A Usage Multiple (Multiple-Use Forest Ecosystems) ESSA Ecole Superieure des Sciences Agronomiques FAC Fonds d'Aide et de Cooperation (France) FORAGE Fonds Regional d'Appui A la Gestion de l'Environnement (Regional Fund for Environment Management) FTM National Geographic Institute (Foiben-Taosarintanin 'i Mfadagasikara) GEF Global Environment Facility GOM Government of Madagascar ICDP Integrated Conservation and Development Project ICTF The International Center of the University of Stony Brooke IFAD International Fund for Agriculture Development ITF Interim Trust Fund KFW Kreditanstalt fur Wiederaufban MEF Ministere de l'environnement MINAGRI Ministere de la Production Agricole et du Patrimoine Foncier MOE Ministere des Eaux et Forets NTFP Non-Timber Forestry Products ONE Office National de l'Environnement (National Environment Office) ORSTOM Office de Recherche Scientifique et Technique d'Outre-mer PA Protected Areas PPDOP Participatory Process for the Definition of Options and Priorities PRIF Pre-Investment Financing RPC Regional Programming Committee TRD Tropical Research and Development UNDP United Nations Development Program USAID United States Agency for International Development VITA Volunteers in Technical Assistance WWF World Wide Fund for Nature Vice President: Mr. Callisto Madavo, AFRVP Country Director: Mr. Michael Sarris, AFC08 Sector Manager: Ms. Cynthia Cook, AFYEI Task Team Leader: Mr. Michel Simeon, AFrEI  FOR OFFICIAL USE ONLY CURRENCY EQUIVALENTS (Estimated average for period January I to December 31) Currency Unit = Malagasy Franc (FMG) US$ 11989 = 1590 1990 = 1530 1991 = 1650 1992 = 2000 1993 = 1850 1994 = 1900 1995 = 4000 1996 = 4200 1997 = 4800k' WEIGHTS AND MEASURES Metric system FISCAL YEAR OF BORROWER January I - December 31 Estimated average for period January 1 to June 30, 1997. 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.   REPUBLIC OF MADAGASCAR ENVIRONMENT PROGRAM (Cr. - 2125 MAG) TABLE OF CONTENTS Preface Evaluation Summary i PART 1: PROJECT IMPLEMENTATION ASSESSMENT I A. Statement and Evaluation of Objectives 1 B. Achlievement of Objectives 3 C. Implementation Record and Major Factors Affecting the Project 7 Implementation Record 7 Factors not Generally Subject to Government Control 9 Factors Subject to Government Control 9 Factors Generally Subject to Implementation Agency Control 9 D. Project Sustainability 10 E. Bank Performance 10 F. Borrower Performance 11 G. Assessment of Outcome 11 H. Future Operations 12 I. Lessons Learned 13 PART II: STATISTICAL INFORMATION 14 Table 1: Summary of Assessment 14 Table 2: Related Bank Loans/IDA Credits 16 Table 3: Project Timetable 17 Table 4: Loan/Credit Disbursements: Cumulative Estimated and Actual 17 Table 5: Key Indicators for Project Implementation 18 Table 6: Key Indicators for Project Operation 18 Table 7: Studies Included in Project 19 Table 8A: Project Costs 21 Table 8B: Project Financing 21 Table 9: Economic Costs and Benefits 22 Table 10: Status of Legal Covenants 23 Table 11: Compliance with Operational Manual Statements 25 Table 12: Bank Resources: Staff Inputs 25 Table 13: Bank Resources: Missions 26 APPENDICES 27 Aide Memoire of FAO/CP mission 27 Borrower's comments 36 Co-financiers'comments 42  I  IMPLEMENTATION COMPLETION REPORT REPUBLIC OF MADAGASCAR ENVIRONMENT PROGRAM (CREDIT 2125-MAG) Preface This is the Implementation Completion Report (ICR) for the Environment Program in Madagascar for which Credit 2125 MAG in the amount of SDR 19.8 million (US$ 26.0 million equivalent at appraisal) was approved on April 17, 1990 and made effective on February 6, 1991. Cofinancing was provided by Norway, Switzerland, France (FAC), Germany (KfW), USA (USAID) and UNDP. The credit was closed on June 30, 1997, one year after the original closing date of June 30, 1996. Final disbursement took place on December 9, 1997 and the Credit was fully disbursed. The ICR was initially prepared by a mission of the FAO / World Bank Cooperative Program (FAO/CP) which visited the country in April/May 1997 and reviewed by Michael Sarris, Country Director for Madagascar and Jean-Roger Mercier, Acting Sector Manager, AFTEl.' The Borrower contributed to the preparation of the ICR by arranging field visits and meetings, providing data as well as comments on the mission's aide-memoire. The borrower and cofinanciers provided comments that are included as appendices to the ICR. R. DuBois (Mission Leader, FAO/CP) and H. Trupke (Economist FAO/CP). Comments related to later developments were added by M. Simeon (Task Manager, AFTEI)   IMPLEMENTATION COMPLETION REPORT REPUBLIC OF MADAGASCAR ENVIRONMENT PROGRAM (CREDIT 2125-MAG) Evaluation Summary Introduction At the time of appraisal, EP I represented Phase I of the first environmental program (EP) of its kind, magnitude and complexity implemented in Africa. It was a groundbreaking effort supported by the GOM and a number of international donors as an initial step in what was recognized even at the time as a long term process for which local expertise and capacity would need to be developed in order to achieve program objectives. In response, a cautious two staged approach was adopted in project design divided into institutional building (2 years) and pilot implementation (3 years). The experience derived from the EP initial phase was expected to be consolidated in the program's second phase before its further expansion and diversification into other sectors in the program's final phase. i. Project Objectives. The first phase program (EP1) was meant to be the initial five year slice of a fifteen year National Environmental Action Program (NEAP) prepared in 1987/88 whose objectives are the: (a) conservation and management of Madagascar's biodiversity, (b) promotion of the sustainable development and management of the country's natural resources, (c) improvement of the population's living conditions, and (d) development of the country's human resources and institutional capacity. ii. The EPI consisted of seven components: (a) protection and management of biodiversity; (b) soil conservation, agro-forestry, reforestation and other rural development activities in priority areas; (c) mapping in priority areas and the progressive establishment of a geographic information system (GIS); (d) boundary delimitation and improved land security through land titling in priority areas; (e) environmental training, education, and awareness; (f) environmental research; and (g) a range of activities supporting institution building, the establishment of environmental assessment (EA) procedures and data base, studies, and monitoring and evaluation ( M&E). In addition to the above, selected components from the Bank-supported Forest Management and Protection Project (Cr. 1878 MAG) were transferred at its closure in 1994 to EPI. iii. The total EP1 cost over a period of 5 years was estimated at US$ 85.5 million. The first phase program was to be cofinanced by IDA (US$ 26 million), the Norwegian Government (N Kr 25 million, equivalent to about US$ 3.8 million), and other cofinanciers represented by Switzerland, France (FAC), Germany (KfW), USA (USAID) and UNDP (US$ 38.1 million). The contribution of the GOM was estimated at US$ 17.1 million, including US$ 13.2 million in duties and taxes. During the implementation of the first phase, total financing increased to over US$ 90 million due to additional cofinancing.  Implementation Experience and Results iv. The outcome of the various program components and their respective activities was mixed. The EP 1 established three new institutions charged with specific environmental tasks in conformity with program objectives (ANGAP, ANAE, and ONE). In addition, EPI also achieved or sometimes even exceeded many of its physical objectives (i.e., classification and definition of boundaries of 44 protected areas, implementation of about 1,000 demand-driven mini-projects, and a vast study program). Finally, despite the difficulty of monitoring biodiversity and the corresponding lack of hard data, there is a general feeling amongst donors as well as environment experts that Madagascar's biodiversity is at less risk today than at the advent of EP 1. v. Nevertheless, it was one of EPI's main objectives - as part of the first-phase implementation of the NEAP - to establish the required institutional framework for a sustainable environment program. While the three new agencies were established, their long term future is uncertain vis-A-vis their relationship with the public sector. Moreover, at the end of EPI there was still no government-adopted policy framework in place, no comprehensive policy-related action plan had been designed, and inter- and intra-coordination between and within government agencies, the executing agencies, the donors, and NGO's remained weak. The approach to environmental protection and management was largely based on isolated, self-standing activities, rather than integrated interventions more characteristic of a program. Coupled with EPl 's overly broad objectives, the geographically widely dispersed activities characteristic of the program's first phase have tended to overstretch the capacity of the implementing agencies, especially in the new institutions. The research component fell short of expectations and the translation of research findings into field action programs did not take place. Finally, the absence of an objective- oriented M&E system prevented an adequate assessment of program impact. vi. In spite of these shortfalls, EPI has considerably advanced both international and national consciousness of the importance of conserving Madagascar's environment. Of particular importance, it has instilled a much greater awareness in government about the need for environmental protection and management, it has established common grounds for donor participation and its lessons have been taken into account when designing EP2. Finally at the level of local communities in and around the protected areas, there is evidence of increased sensitization and readiness to assume ownership than at the onset of the program. For these reasons the outcome of the first phase of the EP is rated as satisfactory. Summary of Findings, Future Operations and Key Lessons Learned vii. Perhaps the most important finding of the report is that environmental protection and management requires much more than tie establishment of mandate-specific institutions and the execution of a physical action program. First and foremost, a govemment policy has to be in place allowing all stakeholders to work in a coordinated manner towards clearly defined objectives. In contrast, agencies were established without clearly defined common goals and objectivesl. As reflected in the lack of both vertical and horizontal coordination between agencies/institutions concerned, the holistic (program) approach was never achieved. Furthermnore, the proliferation of agencies has led to a fragmentation of responsibility, overlaps I A number of objectives and priorities had been defined by a national Convention in 1985, but did not necessarily fall within donors priorities, and thus were not entirely reflected in the EPI design. ii  and gaps, both at the executive and field level, and the differentiation in institutional status contributed to rivalries and to an uncertain future which, if not properly addressed during EP2, would undermine NEAP sustainability. Institution strengthening needs to take place in a balanced manner, helping the various institutions/agencies involved in protected/gazetted and other rural areas develop in an equitable and mutually-reinforcing manner. Many of these issues were identified during program preparation but not fully reflected in the appraisal process; the design of EP2 draws from these lessons, and includes explicit conditionalities on institutional developmemnt of the implementing agencies. In addition, the macro-economic framework and political stability were major factors that prevented EPI from reaching its full efficiency, and will continue to be major factors in NEAP implementation performance. viii. Nevertheless, EP 1 was a groundbreaking venture and tested a number of new approaches in protected area management in Madagascar. Under EP2, considerable resources (US$ 155 million - similar to what has been mobilized by different projects under EPI) will be made available to continue the EP process. Although the broad outline of EP2 had already been established at the time of the ICR mission, the program's second phase proved flexible enough to allow for some adjustments following the completion mission's findings. The lessons learned from EP1 should be consolidated prior to expanding and diversifying the scope of the program under EP2. Of particular importance is: (a) clarifying ONE's relationship with the newly created Ministry of Environment and the establishment of a highly visible and influential permanent institutional home for a unit responsible for formulating environmental policy and regulations: (b) developing an end-strategy and "roadmap" leading to the resolution of existing conflicts associated with parallel public and the newly created semi-private institutions involved in environmental planning and management; and (c) evaluating the different Integrated Conservation and Development Project (ICDP) approaches supported under EPI as a basis for the design of EP2 activities particularly under the newly adopted regional (AGERAS) approach. ix. The major lessons to be drawn from project implementation experience are that: (a) program objectives and implementation responsibilities should be realistic and as specific as possible reflecting the local environment in which it will be implemented; (b) allocating financing on a component-by-component basis to different executing agencies can undermine program synergy and objective achievement; (c) community participation in management and maintenance of the rural environment can be facilitated through demonstrated financial attractiveness (e.g. ANAE's mini-projects); (d) changing human behavior and developing community-based approaches to managing protected areas will likely require a long-term commitment (ICDP experience); (e) a communication strategy is essential to the development of successful management strategies for protected areas; and (f) the establishment of an objective-oriented M&E system at the onset of a program/project is critical to monitor program success. These lessons are being incorporated into the design and implementation of the Second Phase Program (EP2), as summarized in the table below. . .  Lessons from EPI Reflection in EP2 a Program scope should be realistic and within Major emphasis is given for institutional country's implementation capacity capacity development to proceed in pace with the expansion of the program b Program financing should be for program as EP2 has been funded as a whole, and a a whole, not earmarked by component strong annual annual programming mechanism would allocate funds based on implementation progress c Community participation can be promoted by Local resource management is built into the demonstrating benefits design of certain EP2 components d Successful management of protected areas EP2 is emphasizing the communications requires a communications strategy aspect, including in particular in its protected areas component e Clear monitorable indicators must be A major effort to develop a sound M&E established to measure performance system was undertaken during EP2 preparation, and is currently being implemented; measurement systems for impact indicators are under development f Institutional roles should be clearly defined Work is in progress under EP2 to clarify the within an established overall policy share of roles and responsibilities between framework the EP2 agencies (ONE, ANGAP) and Central Ministries g Design of mini-projects component should There is a continuing process of evaluation support program's biodiversity objectives of mini-projects in order to promote mechanisms that would ensure coherence of objectives at the local level h Long term sustainability requires greater A Rural Development Action Plan is under integration of the country's rural formulation, and representatives of the EP2 development strategy and its environmental agencies are full members of the working agenda. group in charge of the process iv  IMPLEMENTATION COMPLETION REPORT REPUBLIC OF MADAGASCAR ENVIRONMENT PROGRAM (CREDIT 2125-MAG) PART I: PROJECT IMPLEMENTATION ASSESSMENT A. Statement/Evaluation of Objectives 1. Madagascar has been characterized by the international conservation community as one of the most biologically rich and diverse countries on earth. However in economic terms, the country is also one of the world's poorest, a condition which is increasingly posing a direct threat to the status of the country's rich genetic resources. In 1988, recognizing the various linkages between sustained economic growth and the environment, the Government of Madagascar (GOM) prepared a 15-year Environmental Action Plan (EAP) with the support of a consortium of donors which addressed the pressing environmental problems that threaten the country's biodiversity heritage and its future prospects for sustainable development. 2. In support of the EAP the Bank, in collaboration with other donors, agreed to finance an Environment Program (EP). The fifteen year program was divided into three 5-year slices. The first five-year phase (EP1) aimed at creating a proper policy, regulatory and institutional framework. The second phase (EP2) was to consolidate the activities supported under the first phase. Finally, a third phase (EP3) would emphasize the mainstreaming of environmental considerations into the country's macroeconomic management and sector programs. In order to carry out the necessary studies and field work for the preparation of EPI, the Bank provided a Project Preparation Facility (PPF) advance. The appraisal of the program took place in June 1989 and was followed by a post-appraisal in December 1989. 3. The EP1 was the first comprehensive environmental program to be implemented in Africa. The novelty of its proposed activities, combined with the establishment of new institutions and the large number of national, bilateral and international agencies and non- governmental organizations (NGOs) involved, called for special international coordination and close supervision. Accordingly, a Multi-Donor Secretariat (MDS) was initially established at World Bank Headquarters for a three-year period to disseminate information among the participating agencies, strengthen coordination and supervision, and build on the pilot program's experience to guide the development and implementation of environmental programs elsewhere in Africa. In Madagascar, a Steering Committee was established to guide overall Program implementation. 4. The EPI had two main objectives: (a) to support operations of an urgent nature, namely (i) protecting the heritage of biodiversity in the parks, reserves and gazetted forests, in conjunction with the development of the surrounding communities; and (ii) fighting deforestation and erosion in priority watersheds where the negative economic impact was the highest; and (b) to establish the foundations for environmental management through institution building, studies, and human resource development. I  5. To translate these objectives into a program of concrete actions, the initial phase was to finance seven components: (i) protection and management of biodiversity and natural ecosystems at risk in an integrated approach which also addressed development needs of communities in adjacent areas (peripheral areas). It was expected that the strengthened network of parks and reserves would constitute the basis for the gradual development of "ecological tourism," a promising source of foreign exchange earnings; (ii) soil conservation, agroforestry, reforestation and other rural development activities in program priority areas. The component was to be carried out with the full participation of local communities; (iii) mapping and the progressive establishment of a geographic information system (GIS) for use in planning and managing priority program areas; (iv) establishment of clear boundaries for protected areas and improved land security through titling in program priority areas; (v) environmental training, education, and awareness; (vi) environmental research on land and coastal/marine ecosystems; and (vii) support activities, including institution building, establishing a regulatory framework for EA procedures, strengthening the environmental data base, monitoring and evaluation, and sector policy studies. This component included resources for the preparation of EP2, the second five-year slice of the EP through support for studies and pilot operations. 6. In addition to these components, there were several components integrated into EP I from the Forest Management and Protection Project (Cr. 1878 MAG) closed in 1994. These were: (a) the development of a new forestry law; (b) development of policies on national forestry management and human resources, respectively; (c) development of management plans for four gazetted forests; (d) completion of a national forestry inventory; and (d) forestry research. 7. While the project objectives were clear and relevant to the country's needs they were overly-ambitious. The project proved to be highly demanding for the Borrower as it attempted to implement a complex institution building program while simultaneously supporting a program of geographically, widely-dispersed physical actions. The five year project for which Credit 2125 MAG in the amount of SDR 19.8 million (US$ 26.0 million equivalent) was approved on 4/17/1990, became effective on 2/6/1991. Total project costs were estimated at US$ 85.5 million, with US$ 42.3 million of cofinancing provided by other donors and a government counterpart contribution of US$ 17.2 million of which customs, duties and taxes amounted to an estimated US$ 13.2 million. Taking into account other related operation, the funding allocated to EPI reached over $187 million, of which about 80% were actually spent. 2  B. Achievement of Project Objectives 8. The achievement of the program's objectives was overall satisfactory, although it fell short of initial expectations. Performance in implementing the various components designed to support the fulfillment of the overall project objectives was mixed, bearing in mind that start-up of all activities was affected by social unrest subsequent to which there was a national strike from the period May to November 1991 (see para 33). Finally, it should be noted that the failure to establish a reliable monitoring and evaluation (M&E) program in EP1, prevents any comprehensive assessment of objective achievements. 9. Protection and Management of Biodiversity. The component objectives were: (a) to establish and equip 50 Protected Areas (PAs) covering an area of some 1.4 million ha;1 (b) provide assistance to approximately 70,000 families in communities living on some 0.3 million ha of land in proximity to project-supported PAs to develop sustainable economic activities and improve their living conditions; and (c) improve the protection and sustainable management of 0.3 million ha of gazetted natural forests particularly in proximity to PAs. Implementation was based on the delegation of management activities to autonomous operators under the coordination of a new, program-created agency ANGAP (Association Nationale pour la Gestion des Aires Protegkes), and DEF (Direction des Eaux et Forets). 10. The ANGAP was created and assumed the responsibility for the coordination and management of the country's PAs. A total of 44 PAs were identified, spread all over the country, and are currently proceeding through the required legal process leading to their formal establishment. Of these, only 7 were managed directly by ANGAP, and 13 more through the use of contractors. In the peripheral zones of 19 of the 44 PAs, local development activities were supported through Integrated Conservation and Development Project approaches (ICDPs) which were estimated to have benefited directly a total of 13,482 families (well below the objective of 70,000 - ANGAP estimates that some 65,000 families have benefited from the project, either directly or indirectly). Five of the 44 PAs were protected forests representing a total of approximately 0.48 million ha which were transferred to ANGAP under EPI. Improved management of PAs has no doubt contributed to the development of eco-tourism, with the numbers of visitors increasing by 700 % and entrance fees by 585 % during the period 1992 - 1996, and this will contribute to the long term financial sustainability of the PAs. 11. Key findings derived from the aforementioned ICDP approach were: (a) many of the development activities were highly diffuse and suffered from an absence of focus (often due to the operators own institutional biases), leading to the possible undermining of the achievement of conservation objectives; (b) PA operators, particularly the international NGOs, have built up large and expensive PA management operations which are unlikely to be sustainable when taken over by ANGAP; (c) case-specific examples have been documented which demonstrate tourism- related revenues can be generated and returned to communities in the form of small-scale development projects increasing local well-being and consciousness of the importance of the sustainable management of the adjacent PAs; (d) despite the aforementioned examples to the contrary, there is little hard evidence to date that demonstrates that community-based approaches have significantly reduced the threat to the country's biodiversity resources; and (e) building and expanding on successful ICDP experience to reach a point where the EP will be able to 1 These were later consolidated into 44 protected areas. 3  significantly address the threats to Madagascar's biodiversity will take a significantly longer time than originally envisioned under EPI. 12. Soil Conservation, Agroforestry, Reforestation and Other Rural Development Activities. For selected areas of the country not covered by the program's other components, this component was designed for rural communities where erosion significantly impacts agricultural production and their economic well-being. Specifically, support was to be provided to assist beneficiaries to: (a) protect their watersheds, (b) adopt soil conservation measures, (c) develop their productive capacity, and (d) improve living conditions. Five regions were identified for component implementation (Antananarivo, Lac Alaotra, Fianarantsoa, Mahajanga, Manakara) based on specified criteria (high population density, agricultural potential, and erosion impacts). During implementation it was decided to expand the area of activity to include peripheral zones surrounding selected PAs. Four types of investment were identified for support under the component: watershed management, productive infrastructure, storage facilities/feeder roads, and health facilities of which the former two were to be given priority. Some 30,000 families and 150,000 ha were expected to benefit from about 150 mini-projects. To implement this component, a second private, non-profit institution, ANAE (Association Nationale pour les Actions Environnementales), was created. 13. During the program period, ANAE executed a total of 1,177 mini-projects involving 45,074 families organized into 1,092 groups. The area affected by project activities was an estimated 16,832 ha. Of this total, 52 mini-projects were implemented in the peripheral areas of four project-supported PAs. While the number of families and mini-projects exceeded the initial targets, affected total area was significantly less than expected due primarily to erroneous assumptions made during project design regarding average size of holding. However, selected field surveys indicate that: (a) farmers who adopted improved production/protection technologies experienced increases in agricultural income in the range of 20% to 85%; (b) the frequency of bush-fires has substantially reduced in some component areas; and (c) soil losses are on average around 0.5 tons per ha per year (in contrast to country's average figure of 200 tlha/year on degraded land without conservation measures). Despite these achievements, many of the field activities appear to have been implemented in isolation from other project interventions and their relationship to the project's biodiversity objectives is unclear. Finally, in light of the magnitude and complexity of the problem of soil erosion in component areas and the absence of management plans that could be used to guide interventions on a micro-catchment basis, it is questionable that this component was not initially designed to have an impact on such a problem, so that it could not significantly reduce levels of soil erosion and the resulting sediment loads threatening critical downstream infrastructure (e.g., irrigation barrages and canals). 14. Mapping, Remote Sensing and Geographic Information. The component goal was to support the development of a national capacity to provide the services necessary for the planning, management, monitoring and evaluation of the project's PAs and their surrounding peripheral areas. Specific component objectives were to: (a) establish a geodetic network and cartographic coverage of about 6 million ha, (b) produce orthophotos for about 2 million ha, and (c) establish a national remote sensing laboratory. The component was to be executed by the FTM (Foiben- Taosarintanini Madagasikara, the National Geographic Institute), which was to be strengthened under the project. 15. A total of 2.4 million ha of the proposed geodetic network was established, a shortfall primarily due to changes in the needs and/or budgetary constraints of the institutions participating 4  in other project components (biodiversity, soil conservation, and cadastral survey and titling). Orthophotos were produced for an area totaling an estimated 0.97 million ha, a shortfall due to the budgetary constraints of institutions involved in another project component (cadastral survey), technical problems, and delays in obtaining contracted goods and services. The remote sensing laboratory was established, equipped, and functioning in early 1995 with the exception of the color photograph laboratory which is not yet functioning due to problems with the supplier. 16. Cadastral Surveys and Pilot Land Titling. The component aimed at defining the boundaries between public and private lands for project-supported PAs and gazetted forests. About two million ha of public land were to be surveyed and titled. In addition, pressure on protected areas was to be reduced through supporting increased land security through the pilot titling of about 200,000 ha of private lands in their respective peripheral areas. The component was to be executed by DDRA (Direction des Domaines et de la Reforme Agraire), which has since been renamed Direction des Domaines (DD). 17. Against the initial target, only 838,000 ha of land was surveyed and titled comprising: (a) 191,000 ha of public lands associated with four PAs, (b) 647,000 ha in private lands in areas in proximity to the aforementioned PAs, and (c) 15,000 ha in protected areas. The relative difference in results achieved between public and private lands surveyed from the original objectives was due to the fact that component activities were confronted to significant difficulties (unavailability of reliable maps, disagreements on the limits of some PAs), and consequently were re-directed to lands in proximity to the PAs rather than in the PAs per se, as it was assumed that this would decrease pressure on the PAs. The shortfall in the total private land surveyed was attributable primarily to the complexity of the titling process and the social and political controversy associated with titling activities in the component areas, exacerbated by technical difficulties related to the mapping component. Another significant consideration was that land registration and titling activities were meant to be only pilots whose continuation would depend on the results of an evaluation completed in time for the mid-term review. However due to the late start-up of the component no conclusive results are available. 18. Environmental Training, Education and Communication. The component objectives were to: (a) provide training in support of the program's other component institutions, (b) build human resources to meet the staff needs of the new institutions, (c) introduce environmental curricula to the primary education system, and (d) increase decision-makers awareness of key environmental problems. It was initially projected that new degrees would be developed at the university level, environmental curricula would be introduced to about 20 % of the country's primary schools, and training and awareness campaigns would be supported under the component. The ONE (Office National de l 'Environnement) was to coordinate the component in association with ESSA, Ecole Superieure des Sciences Agronomiques, (university degree program) and the Ministere de I 'Education de Base (primary school curriculum). 19. This component, which was considered by several key stakeholders to be at the heart of EPI, significantly underperformed intended targets primarily due to lack of donor support (expected AfDB financing did not materialize, and other donors did not reallocate funding accordingly). Nevertheless, the development of a university degree program in the environment by ESSA was completed and environmental curricula were introduced into some primary schools, in some cases in areas in proximity to project PAs, both outputs achieved through non- program support. Training occurred in the various project executing agencies (AGEX) but results have not been aggregated (see para. 24 below). Public awareness campaign activity was minimal 5  and limited to regional seminars (6), radio dissemination programs, and public information exhibitions (12). 20. Environmental Research. The component consisted of two environmental research programs which were to focus on coastal (5 specified studies) and land-based (4 specified inventories and studies) ecosystems, respectively. Research activities were to be coordinated and approved by an ONE established Scientific Committee. Implementation was to be the responsibility of a range of national research agencies and universities such as CNRO (Centre National de Recherche Oceanographique) and CNRE (Centre National de Recherche Environnementale), and a network was to be organized for the exchange of available environmental information. 21. The Scientific Committee was established in late 1992 and research activities effectively started only in late 1993. Of the five coastal studies, three studies were completed and appear to be in conformity with the original research priorities. Regarding the terrestrial activities, four studies were completed of which only one appears to be in conformity with the original stated research priorities. However, several of the previously mentioned research priorities appear to have been addressed in other non-project related research activities (e.g., flora and fauna inventory and brush fires). In addition to the above, there were a large number of PA-specific research activities supported under the biodiversity component, though it is unclear how many of these were directly applicable to specified project priorities. 22. The research component suffered from a lack of focus and links to other project operations. However, ONE was not responsible for all of EP1 research activities and coordination was impeded due to the large number of institutions involved, some with similar mandates (CNRE, IHSM, CNRO, universities), but funded from different sources (World Bank, COI, ORSTOM, etc.). This situation appears to have been at least partly addressed by changes which were implemented in 1995 serving to streamline the research programs funded by the World Bank and make them more useful to operations. Reset on biodiversity has been carried out within protected areas, in partnership between foreign institutions and Malagasy universities, and results published in collaboration with ANGAP. 23. Support Activities. The objectives of the support activities component were to: (a) ensure coordination of the other project components, and (b) develop national environmental policies and establish the tools and procedures for its implementation. ONE coordination responsibilities were primarily for: annual planning and fund allocation; M&E; studies; training, education, and building awareness; consolidated accounting and procurement; and liaison with funding agencies. The environmental policy and procedures objective entailed the development of: national environmental policies, legislation, and regulations; EIA procedures; an M&E program; an environmental data management system (EDMS); and representing the country in international fora. In addition to the above, this component supported the completion of 24 specified surveys, studies and plans. The third program-created institution, ONE (Office National de l'Environnement ) was to be responsible for this component,. but actual responsibility for the 24 surveys et al., varied between ONE and the relevant executing agency (AGEX) dependent on the activity. 24. The ONE fulfilled many of the administrative tasks assigned to it including approving EPI annual work programs through the COS (Comite d'Orientation et de Suivi), serving as the secretariat to the monitoring committee, and participating as representative on the boards of 6  ANGAP and ANAE. Nevertheless, there appears to be ample evidence that a stronger role in coordination was needed given the number of institutions involved in and complexity of EP1. Weak coordination appeared to be due primarily to confusion over the exact nature of the coordination role itself, staff constraints, direct donor-AGEX alliances impeding inter-component integration, donor-induced shifts in the definition of ONE's main tasks, and continued uncertainty of ONE's position in the broader GOM institutional context. The M&E activity suffered from a late start-up compounded by the development of an overly complex monitoring system which was eventually abandoned. As a result, much of the M&E monitoring took place in the project's AGEXs with little aggregation occurring until late in the EPI. This problem appeared to be due primarily to ONE's unfamiliarity with sound M&E concepts and procedures, lack of proper guidance, and weak coordination. 25. With regard to the environmental objective, an environmental framework law (Charte de l'Environnement) and a national environmental impact assessment decree (MECIE) were adopted and policy studies completed for several sectors (industry, energy, tourism, mining, roads, and fisheries and aquaculture). However, it remains uncertain whether the GOM has assumed ownership of the existing process or the resultant sector policy options. Moreover, it appears that ONE has not developed the in-house capability to formulate future environmental policies. The establishment of the EDMS was only initiated in 1993 and the last of the required equipment received only in 1997. As a result, accessible data are few and only general in nature. Of the 24 surveys/studies approximately half were executed mainly in support of: (a) the establishment of the three new agencies, (b) DD land tenure activities, and (c) preparation for EP2. The main shortfall occurred in impact studies associated with land titling, ecotourism and education including the required baseline survey. In addition, a non-foreseen study was completed in DD on the legal status of its own project unit but its findings were not accepted by theMinistere de la Production Agricole et du Patrimoine Foncier (MINAGRI). 26. Forest Management and Protection Project Components. Regarding the previously mentioned Forestry Project components integrated into EP1, the new forestry law has been finalized and is currently waiting approval from the country's Council of Ministers. A national forestry plan has been completed and was used as the framework to elaborate new policies on national forestry management and human resources. This has resulted in a major overhaul of the forestry policy and legislation, that should have a major impact during EP2 and beyond. The implementation of the latter resulted in the development and application of training modules followed by local and overseas training. One forest management plan was developed for a gazetted forest and guidelines prepared for the development of additional plans for three other forest reserves. The forestry inventory had only been partially completed at the time of the mission. Thematic maps had yet to be produced due to technical problems cited above associated with the mapping component, but have since become available. Research results were very limited (e.g., research on Eucalyptus and pines). C. implementation Record and Major Factors Affecting the Project 27. Implementation Record. Thile project had a slow start. It was appraised in Junle 1989 and approved by the Board in April 1990 and became only effective in February 1991 due mainly to difficulties of GOM in meeting effectiveness conditionalities. The actual implementation of most components was further delayed throughl social instability and political turmoil which only 7  subsided in late 1991. The resulting disbursement lag was accentuated by the initially poor implementation progress by the newly established agencies including their unfamiliarity with Bank procurement procedures. At mid-term review (December 1993), only about US$ 4.8 million were disbursed against an SAR estimate of US$ 17.8 million. Implementation start-up was further affected by uncertainties over the financial allocation to the various components by cofinanciers as the financing plan had not been finalized at appraisal. 28. During implementation the project also underwent a major shift in emphasis and changes in institutional responsibilities. The additional allocation of over US$ 27 million by USAID mainly in support of the biodiversity component more than doubled the appraised contribution, providing the executing agencies (ANGAP and DEF) with a substantially enhanced funding base but also contributed to additional responsibilities and a broader program of action on an infant organization. 29. In June 1994, GOM and the Bank agreed to close down the Forest Management and Protection Project (Cr. 1878 MAG) which was considered to be performing unsatisfactorily and incorporate the remaining work program of DEF into EP1. In the course of the amendment, the proportion of disbursements which could be financed by IDA up to 100% was increased thus alleviating counterpart funding constraints and some funds from the "Unallocated" category were reallocated. It was also agreed that DEF and DD would be allowed to procure goods and services through ONE in order to expedite procedures and that gradually all payment requests would be channeled through ONE. 30. As a result of these measures and with improving institutional performance, disbursement rates increased sharply to a monthly average of over US$ 400,000 from mid-1994 onwards. To further facilitate disbursement, GOM requested to amend the Development Credit Agreement to reduce the number of disbursement categories from 17 to seven and at the same time requesting an extension of the closing date by six months until December 31, 1996 which was agreed to by the Bank. By that date about US$ 22.5 million or about 85% of the credit were disbursed. In order to allow for a smooth transition from EP 1 to EP 2 the Bank agreed to a further extension of the credit closing date to June 30, 1997. By that time the credit had been fully disbursed (see Table 4). Total project costs have been re-estimated at US$ 91.3 million (see Table 8A) exceeding the appraisal estimated by over US$ 5 million due mainly to the substantial increase in USAID contribution (see Table 8 B) which more than compensated for the withdrawal of AfDB from project financing (due to the country falling in default). 31. As was to be expected the project initially suffered from considerable institutional weaknesses. All three key executing agencies were newly established and suffered from lack of experience. In addition, implementation responsibilities were widely distributed among various ministries and agencies which were not always clearly delineated, leading to internal rivalries, overlaps, gaps, and a slow down of activities for bureaucratic reasons. Unfortunately, ONE which was entrusted with overall coordination, had the weakest start of all and its training, education, and communication functions, which were considered a cornerstone of the project, were virtually eliminated due to the withdrawal of AfDB from the program. On the other hand, ONE's environmental policy role was strengthened through the additional provision of funds by USAID (through the so-called KEPEM project). The most recent creation of a separate Ministry of Environment (MOE), however raises questions-over ONE's future policy mandate. 8  32. The interaction between ONE, ANGAP, and ANAE witlh the various operators lacked a systematic and formalized approach. Altlhough basically the agencies and the operators were expected to work towards a common goal, each operator appeared to apply its own approach and system often pursuing different objectives and their counterpart agencies were not always kept fully informed about their respective activities, results, funding, and personnel. This lack of interaction and coordination, combined with inadequate monitoring and evaluation, has prevented the assessment of the impact of the project and the development of a common cost effective system for the protection and management of protected areas. Principally for these same reasons, research, while mostly driven by EP1 objectives, appeared to be more geared towards meeting the requirements of the individual operators or their staff and its application to management needs was minimal. Implementation experience clearly shows that each of the ministries, agencies, and operators followed an individual project approach rather than aiming at achieving a common environmental program. 33. Factors not generally subject to government control. Project implementation was adversely affected by trade union action which paralyzed most of the country and especially the civil service during the period May to November 1991. Also the fact that the necessary project financing plan was not finalized prior to effectiveness was partly beyond government control. 34. Factors subject to government control . As indicated above, nearly one year lapsed between Board approval and effectiveness due to non-fulfillment of effectiveness criteria. The AfDB withdrew from program financing when GOM defaulted on the repayment of outstanding arrears, seriously affecting the training, education and communication component. Project management was not flexible enough to allow meaningful reallocation of funds to such high priority activities. KfW and NORAD financing were stalled in the finalization phases due to disagreements over levels of counterpart funding and lack of appropriate signatures and delays in the allocation and disbursement of counter-part fuinds continued to affect the program particularly in its early stages. The slow allocation of funds for the payment of import duties on equipment or respective waivers and the slowness in the government procurement process added to implementation delays. Most of these problems, however, were overcome during the last 18 months of the project. 35. Factors generally subject to implementing agency control . At appraisal it was foreseen that there were seven implementing agencies out of which ONE would be responsible for overall program launching and coordination, including the matching of the implementation rhythm with the progressive institutional development. Unfortunately, ONE failed at the onset to establish itself as a center of excellence and did not fully fulfill its expected coordinating role and only achieved a limited success with program M&E. This can be explained to a large extend by the overall political instability in the country and the inability of Government to provide clear guidance. From the start, ONE should have taken decisive steps to clearly express its leadership functions and establish coordination procedures. The initial failure or slowness of DEF to pass operational funds on to ANGAP affected the latter's implementation capacity. DD's approach to land cadastration appears to have been initially overly aggressive contributing to conflict and should have been preceded by a publicity campaign. 36. The main contractors were the international and national NGO's charged with PA management. Generally, the performance of the international NGO's (PACT, VITA, CARE, WWF, CI, TR&D, ARD, and ICTF) was satisfactory although they had the tendency to by-pass 9  ANGAP and there is justifiable concern over the cost of their operations.1 In contrast, national NGOs suffered some deficiencies and one site even had to be closed down. The performalnce of building contractors and suppliers was generally good witlh the exception of the supplier of crucial photogrammetric equipment to FTM which seriously reduced the latter's output and tlhus hampered the achievement of objectives associated with all cartographic dependent components. D. Project Sustainability 37. As indicated earlier, EPI was the first five year segment of a fifteen year Environmental Program. Its continued implementation, at least for the next five years, is guaranteed through EP2 which was appraised in June 1996, approved in December 1996, and became effective in June 1997. There is however, some doubt about certain specific functions and activities of ONE, ANGAP and ANAE. In the case of ONE, its role in the future formulation of environmental policy is to be clarified in light of the recent establishment of the MOE. Similarly, by 1996 ANGAP was expected to derive entrance fees from about 28,000 paying visitors to parks and together with royalties, obtain revenues of about FMG 620 million. Part of these revenues were to be utilized for mini-projects for the benefit of surrounding communities. In 1996, visitors fees were collected from 41,000 persons (non-residents, residents and Malagasy) but total revenues amounted to only about FMG 564 million affecting the number of mini-projects and available funds to be re-invested back into the PAs. Moreover, policy formulation and policing functions have been retained by the MEF contributing to a fragmentary approach to the management of the country's PAs.2 Clarification of the role and responsibilities of ANGAP is being addressed under EP2. The ANAE, concerned about the sustainability of its operations, started to tap alternative sources of funding including private and corporate sponsors abroad, but results are still wanting. The sustainability of FTM on the prescribed commercial basis is also doubtful. Presently, amortization of past investments represents 80% of gross income and FTM recovers only about 66% of its operational costs. FTM should become more aggressive in promoting their products on local and regional markets in order to make full use of their substantial capacity for income generation through the production and sales of cartographic materials to private and public users. On the other hand, its role in providing basic geographic information and to maintain a geographic data base for which there are no direct end-users has to be acknowledged, and public funding provided accordingly. E. Bank Performance 38. Due to Madagascar's limited experience with environmental projects/programs especially at government level, the Bank played a dominant role in project preparation by providing PPF support to finance numerous international consulting studies and fielding several missions to advance the program towards appraisal. In designing the program insufficient importance was given to the institutional complexity associated with the creation of the three cross-sectoral agencies, to the clear delimitation of their respective functions and responsibilities, and also the time frame for achieving results was seriously underestimated. Although the credit was entitled "Program," a project approach was taken focusing more on specific activities rather than the setting in motion of a process. By setting up ONE, ANGAP and ANAE as AGEXs, 1 As a result of cost considerations, ANGAP took over the direct management of four PAs. 2 Recently the DEF was upgraded to the status of an independent ministry, i.e., Ministere des Eaux et Forets (MEF). Discussions on the mandate of ANGAP are on-going. 10  considerable advantage was bestowed over the public sector in terms of recruiting staff with wages and allowances far in excess of what could be provided by the latter. In addition, these agencies were well provided with office accommodation, vehicles, and equipment resulting in generally superior performance over their public sector counterpart institutions. It was overlooked however, that this differential treatment would lead to antagonism from and motivation problems in the public sector implementing agencies contributing to poor intra- program performance and coordination. 39. Between effectiveness and April 1997 (ICR Preparation) the Bank fielded 14 supervision missions including a mid-term review (see Table 13) mostly led by specialists in agricultural economics. The participation of institutional and environmental specialists would have been useful. Especially at the early stage of EP1 there were many incidences of non-adherence to Bank procurement guidelines/regulations which slowed down the rate of implementation. Most mistakes can be attributed to a lack of understanding on the side of the borrower and would have warranted the provision of additional training and support by the Bank. 40. Generally, the borrower expressed satisfaction with the support provided by the Bank but felt the program suffered from delays in the replenishment of the Special Account and that the Bank's procedures were unnecessarily burdensome. The borrower also stated that the frequent changes of task managers (4 during the five year implementation period) were to its disadvantage as each had a different vision and agreements reached with one task manager often had to be renegotiated with his successor. The borrower, however, expressed satisfaction over the increasing role played by the Resident Mission in facilitating disbursements. F. Borrower Performance 41. After a slow start-up phase, including delayed effectiveness, the borrower's performance improved substantially from the end of 1992 onwards. Most of the legal covenants were complied with and the flow of counterpart funds was within the anticipated levels. G. Assessment of Outcome 42. The outcome of the various project components and their respective activities was mixed. EPI established three new institutions charged with specific environmental tasks in conformity with project objectives. In addition, the project also achieved many of its physical objectives (i.e., classification and definition of boundaries of 44 PAs, implementation of demand-driven mini-projects, and a vast study program). Finally, despite the lack of hard data, there is a general feeling that Madagascar's biodiversity is at less risk today than at the advent of the project. 43. Nevertheless, it was one of EPI's main objectives to establish the required institutional framework for a sustainable environment program. While the three new agencies were established, their long term future is uncertain vis-a-vis their relationship with the public administration. At the time of the ICR mission, moreover, there was still no government- adopted policy framework in place, no comprehensive policy-related action plan has been designed, and inter- and intra-coordination between and within government agencies, AGEXs, donors, and NGO's remains weak. The approach to environmental protection and management was still largely based on isolated, self-standing activities, rather than integrated interventions more characteristic of a program. Coupled with EPI 's overly broad objectives, the 11  geographically widely dispersed activities characteristic of the program's first phase created demands which exceeded the capacity of the implementing agencies, especially in the new institutions. The research component fell short of expectations and the translation of research findings into field action programs did not take place. Finally, the absence of an objective- oriented M&E system prevented an adequate assessment of program impact. 44. Perhaps the most important finding of EPI is that environmental protection and management requires much more than the establishment of mandate-specific institutions and the execution of physical action programs. First and foremost, a government policy has to be in place allowing all stakeholders to work in a coordinated manner towards clearly defined objectives. In contrast, agencies were established without clearly defined common objectives. As reflected in the lack of both vertical and horizontal coordination between agencies/institutions concerned, the holistic (program) approach was never achieved. Furthermore, the creation of several agencies - that was unavoidable given the initial void - has led to a fragmentation of responsibility, overlaps and gaps, both at the executive and field level, and the differentiation in institutional status has led to rivalries and to an uncertain future which is likely to undermine program sustainability. Institution strengthening needs to take place in a balanced manner, helping the various institutions/agencies involved in protected/gazetted and other rural areas develop in an equitable and mutually-reinforcing manner. Many of these issues were identified during project preparation but their importance was underestimated during the appraisal process. In addition, poor macro-economic framework and lack of political stability have been major factors in preventing the EPI to reach its full efficiency, and will continue to be major factors in NEAP implementation performance. 45. In spite of these shortfalls, EPI considerably advanced both international and national consciousness of the importance of conserving Madagascar's environment. Of particular importance, it instilled a much greater awareness in government about the need for environmental protection and management, it has established common grounds for donor participation and its lessons have been taken into account when designing EP2. Finally at the level of local communities in and around the protected areas, there is evidence of increased sensitization and readiness to assume project ownership than at the onset of the program. For these reasons the outcome of EP1 is rated as satisfactory. H. Future Operations 46. The EPI was a groundbreaking venture and tested a number of new approaches in protected area management in Madagascar. Under EP2 considerable resources (US$ 155 million - similar to what has been mobilized by different projects under EPI) will be made available to continue the EP process. Although the broad outline of EP2 had already been firmed up at the time of the ICR mission, the program proved flexible enough to allow for some adjustments following the mission's findings. The lessons learned from EPI should be consolidated prior to expanding and diversifying the scope of the program under EP2. Of particular importance is: (a) clarifying ONE's relationship with the newly created MOE and the establishment of a highly visible and influential permanent institutional home for a unit responsible for formulating environmental policy and regulations, (b) developing an end-strategy and "roadmap" leading to the resolution of existing conflicts associated with parallel public and the newly created semi- private institutions involved in environmental planning and management, (c) evaluating the different ICDP approaches supported under EPI as a basis for the design of EP2 activities 12  particularly under the newly adopted regional (AGERAS) approach, and (d) pursue analytical work on the economic costs and benefits of the Program. I. Lessons Learned 47. The major lessons to be drawn from project implementation experience, that have already been incorporated in the design of EP2, are that: (a) program objectives and implementation responsibilities should be realistic and as specific as possible reflecting the local environment in which it will be implemented: as part of EP2 formulation, most of the past ambiguities regarding implementation responsibilities have been clarified, and work is in progress for the remaining ones (e.g. rule enforcement in protected areas); the formulation of EP2 has been highly participatory, and its implementation will promote decentralization; (b) allocating financing on a component-by-component basis to different executing agencies can undermine program synergy and objective achievement: under EP2, a strong annual programming mechanism would allow allocation of funding based on progress of implementation; in addition, as part of new initiatives taken by the Bank in 1997 to help the country formulate a comprehensive rural development strategy, work is in progress to better integrate EP2 activities with those of other development programs; (c) community participation in management and maintenance of the rural environment can be facilitated through demonstrated financial attractiveness: the experience gained by ANAE will be extended to other components, in particular the newly established Regional Environment Fund (FORAGE) and the local management of natural resources (GELOSE) (d) changing human behavior and developing community-based approaches to managing protected areas will likely require a long-term commitments: Parks management agency is not the best institution to undertake rural development type activities; under EP2, the ICDP approach will evolve towards regional eco-planning and landscape ecology; (e) a communication strategy is essential to the development of successful management strategies for protected areas; much greater priority will be given to communication under EP2; and (f) the establishment of an objective-oriented M&E system at the onset of a program/project is critical to monitor program success; a major effort went into the development of such a system as part of EP2 preparation and appraisal, and its implementation is under way. 48. The biggest concern at the onset of EP2 - as reflected by the comments received from some members of the Bank's Board when they were presented the second phase program proposal, remains the long-term sustainability of the program, and particularly its financial sustainability. Although this issue has been partially addressed in the EP2 staff appraisal report, it is acknowledged that there needs to be a much greater integration of the country's rural development strategy and its environmental agenda. 13  PART II: STATISTICAL TABLES Table 1: Summary of Assessments Macro policies Sector policies IZ El Financial objectives E E E E Institutional development E E E L Physical objectives D I L E Poverty reduction E L L [ Gender issues E L E E Other social objectives E E LI Environmental objectives F Z I ] Public sector management l [i ] Private sector development Fl l l ] Other (specify) [ [Z B. Project sustainability Likely Unlikely Uncertain (6) (6) (69) Higl C. Bank performance satisfactory Satisfactory Deficient Identification E El Preparation assistance E LI] Appraisal E El Supervision E [ E 14  Hily D. Borrower performance satisfactory Satisfactory Deficient Preparation z I Implementation E W71 Covenant compliance W Operation (if applicable) Highly Highly E. Assessment of outcome satisfactory Satisfactory Unsatisfactory unsatisfactory 15) (1a) 09) (9) 1 5  Table 2: Related Bank Loans/Credits Preceding operations 1. Forestry I Plantation; sylvo- 1974 Closed Cr. 2125-MAG industrial complex Ln 1065-MAG 2. Forestry I1 Plantation: study viability 1981 Closed of sylvo-industrial Cr. 11 61-MAG complex 3. Energy I Energy policy 1980 Closed formulation; institutional Cr. 1 787-MAG -development 4. Forest Management Institution development, 1988 Closed and Protection Project private reforestation, protect natural forests Cr. 1878-MAG Following operations 1. National Agricultural To strengthen 1989 Ongoing Research Project agricultural research and make it more responsive (Cr. 2042-MAG) to the needs of producers 2. Livestock Project To increase livestock 1991 Ongoing output and to promote (Cr. 2243-MAG) exports 3. Rural Finance Project To assist rural groups 1993 Ongoing develop savings and loan (Cr. 2459-MAG) associations 4. Second Irrigation To promote growth by 1995 Ongoing Rehabilitation Project increasing agricultural output through better (Cr. 2644-MAG) water management and assessment of irrigation rehabilitation 5. Energy 11 Key reforns and 1996 Ongoing infrastructure (Cr. 2844-MAG) improvement in energy sector 16  Table 3: Project Timetable Identification (Executive Project Summary) November 1988 Preparation December 1988 Appraisal July 1989 June 1989 Negotiations March 1990 Board presentation April 1990 April 1990 Signing May 1990 Effectiveness January 1991 February 1991 Midterm review (if applicable) September 1993 November 1993 Project completion June 1995 June 1996 Loan closing June 1996 June 1997 Table 4: Loan/Credit Disbursements: Cumulative Estimated and Actual (US$ thousands) Appraisal estimate 3.4 10.2 15.6 19.9 24.0 26.0 26.0 Actual 2.0 2.4 3.8 6.9 12.1 17.6 26.0 Actual as % of estimate 58.8 23.5 26.4 34.7 50.4 67.7 100.0 Date of final disbursement December 9, 1997 1 Closing date has been extended from June 30, 1996 to June 30, 1997. 17  Table 5: Key Indicators for Project Implementation 1. Biodiversity . Establish Protected Areas 44PAs 44PAs Sustainable Development Activities 70,000 families 13,482 families 2. Soil Conservation, Agroforestry, Reforestation and other Activities Number of families 30,000 families 45,074 families Area Affected 150,000 ha 16,832 ha 3. Mapping, Remote Sensing and Geographic Information Establish a Geodetic Network and Cartographic 6 million 2.4 million Coverage Produc Orthophtos2 million 0.97 millio Produce Orthophotos Establish a Remote Sensing Library 1 1 4. Cadastral Surveys and Pilot Land Titling Public Land Survey and Titled 2 million ha 191,000 ha Private Land Pilot Titling 200,000 ha 647,000 ha 5. Environmental Research Research Studies 9 Studies 4 Studies 6. Support Activities Environmental Legislation 1 1 Environmental Policy Development for 6 Sectors Environmental Data Management System 1 1 Surveys, Plans and Studies 24 12 Table 6: Key Indicators for Project Operation Not applicable 1 The number in the SAR is 51, but some areas have been consolodated 18  Table 7: Studies Included in Project 1. First establishment of ONE To define start-up activities and Completed Determination of data co-ordination organizational frame of ONE 2. First establishment of To define start-up activities and Not implemented Study became part of ANGAP including the scope for biodiversity data system in its appraised socio-economic and establishment of biodiversity format technical analysis of PAs data system 3. First establishment of To defne start-up activities Not implemented Study focused on ANAE in its appraised feasibility of mini-projects form 4. Management audit of To serve as basis for improvement Completed Reorganization of CNRE CNRE 5. Establishment of a To assess manpower and Completed Used as basis for computerized system for equipment requirements and scope equipment purchases cadastral records of operation 6. Inventory of priority areas To draw-up inventory and defne Completed Study demonstrated that under common property right legal ways to protect areas. there is no need for special legislation 7. Land renting and To identify prevailing practices Completed Findings to be used in PE 2 sharecropping review assess legal implications and scope for registration 8. Land taxation review To study impact of tax system on Completed Findings will be used to conservation and propose define land legislation modifications 9. Review of land laws To merge existing land laws into a Not yet Will be executed after consistent land code implemented formulation of land policy 10. List of endangered species To review list and update Completed information system 11. Economic utilization of To establish a system of fees and Completed Will be used in fiscal flora and fauna taxation policy formulation 1 9  12. Review of environmental To review and update legislation Partially Has been used for sector legislation and pioduce booklet for public completed policy and legislation. information Booklet not yet issued 13. Establishment of E.A. To provide guidelines Completed Used for sector specific procedures proposals 14. Preparation of Tropical To redefine the national policy for Not implemented - Forest Action Plan the conservation, regeneration and sustainable use of the forest resources and to define investment programmes. 15. Baseline Survey To establish baseline data (1990) Not implemented for studies 17 to 20 16. Impact of land titling on Not implemented conservation practices l These studies were to be I caried out in 1992/93 in order to prepare for the mid-term review and to 17. Ecological economic and prepare the second five-year time Implemented Results used in the social impact of ANAE mini l slice of the EAP as well as I the preparation of PE 2 projects completion report and I the ex-post evaluation 18. Development of eco- Not implemented Several studies dealing tourism as such with eco-tourism were carried out 19. Impact on environmental Not implemented - education and awareness 20. Soil conservation and To prepare plans for Anatalaha Not implemented - watershed management plans and Toliary regions 21. Watershed management To prepare plans for Andekaleka Not implemented - plans and Mandraka hydropower dams i 22. Protection of infrastructure To prepare proposals for areas Not implemented - in coastal areas damaged by cyclons 1 24. Preparation of the second To prepare programme, Not implemented - five-year slice of EAP incorporating actions identified as appraised2 under studies 21,22 and 23 1 Studies 22 and 23 were replaced by a study on necessary measures to protect the infrastructures of the National Route 2. 2 Since studies 21, 22 and 23 were not carried out fully formulated action programs covering these aspects could not be included in PE 2. In addition the DD has carried out a study of its own project unit with the aim to enhance performance and upgrading its status. The recommendations were, however, rejected by the MOA. 20  Table 8A: Project Costs I. Biodiversity (protection, assistance to DEF & development of 11.19 10.36 21.55 39.06 buffer zones) 2. Soil conservation, Agroforestry/Rural Development 5.83 3.52 9.35 4.04 3. Mapping and Geographic lnfonnation 4.23 5.91 10.14 10.12 4. Cadastral Surveys and Titling 3.46 3.48 6.94 3.32 5. Enviromnental Research 1.63 2.61 4.24 0.68 6. Support Activities 9.20 6.54 15.74 34.08 7. Total Baseline Costs 35.54 32.42 67.96 l Physical Contingencies 2.26 1.56 3.82 Price Contingencies 9.83 3.94 13.76 l Total Program Costs 47.62 37.91 85.53 91.30 1/ At appraisal it had been estimated that local cost would include US$ 13.23 million customs duties and taxes. Details on taxes and duties incurred under the project could not be made available to the ICR mission, but there is evidence tdlat the actual project cost figures provided by GOM do not adequately reflect duties and taxes. Therefore, it was not possible to provide a detailed break down into local and foreign cost. Table 8B: Project Financing IBRD/IDA 26.00 2.00 Cofinancing institutions 42.30 64.66 Domestic contribution 17.20 3A43 TOTAL 85,50 94.09 11 The appraisal report did not provide any bieakdown into local and foreign cost. 21  Table 9: Economic Costs and Benefits No economic evaluation had been carried out at appraisal and no attempt has been made to calculate and ex-post ERR, since conventional economic methodologies do not lend themselves easily to evaluating the externalities associated with environmental protection. For the second phase, a comprehensive analysis of expected benefits has been undertaken by ONE and the implementing agencies as part of program formulation, and complemented during the December 95 and April 96 missions. Several models have been developed that demonstrate that key activities (ANAE mini-projects, forest management and protected areas) can be economically justified under a fairly wide range of initial conditions. The implication is that the various agencies would need to closely monitor costs as well as to perform economic modelling on an on-going basis in order to ensure that their work results in the greatest possible impact. 22  Table 10: Status of Legal Covenants |Credit 4.01. (a) 2 C The Borrower shall maintain records and accounts adequate Fully complied withl 21250 to reflect in accordance with sound accounting practices thel operations, resources and expenditures in respect of Parts A.3, A.5, D, E and F of the project 4.01 (b) (i) 2 C The Borrower shall have the records and accounts referred Fully complied. 1993 audit to in par. (a) of this Section including those for the Special received and acceptable Account for each fiscal year audited 4.01. (b) (ii) 2 C The Borrower shall furnish to the Association a certified Fully complied. 1994 audit due by copy of the report of such audit by said auditors, of such June 1995 scope and in such detail as the Association shall have reasonably requested 4.01. (c) (i) 2 C For all expenditures, the Borrower shall maintain or cause Fully complied to be maintained records and accounts reflecting such expenditures 4.01. (c) (ii) 2 C For all expenditures, the Borrower shall retain, at least I Fully complied year after the Bank has received the audit report all records (contracts, orders, invoices, bills, receipts) evidencing such expenditures 4.01. (c) (iii) 2 C For all expenditures, the Borrower shall enable the Fully complied Association's representatives to examine such records 4.01. (c) (iv) 2 C For all expenditures, the Borrower shall ensure that such Fully complied records and accounts are included in the annual audit and that the report contains a separate opinion by said auditors 4.02 (a) 2 C The Borrower shall cause ANAE. ANGAP and FTM to Fully complied maintain records and accounts adequate to reflect in accordance with sound accounting practices the operations and financial conditions of ANAE, ANGAP and FTM 23  4.02 (b) (i) 2 C The Borrower shall cause ANAE, ANGAP and FTM to Fully complied have its records, accounts and fnancial statements and the records and accounts for the Special Amount for each fiscal year audited 4.02 (b) (ii) 2 C The Borrower shall cause ANAE, ANGAP and FTM to Fully complied furnish to the Association certified copies of its financial statements 4.02. (b) (iii) 2 C The Borrower shall cause ANAE, ANGAP and FTM to Fully complied furnish to the Association such other information concerning such records, accounts, financial statements and the audit 5.01. (a) 13 C The Borrower shall cause ANAE, ANGAP and FTM to Fully complied take out and maintain with responsible insurers insurance against such risks and in such amounts as shall be consistent with appropriate practice 5.01. (b) 13 C The Borrower shall cause ANAE, ANGAP and FTM to Fully complied carry on its operations and conduct its affairs in accordance with sound administrative and financial practices under the supervision of qualified and experienced management 5.01. (c) 13 C The Borrower shall cause ANAE, ANGAP and FTM to Fully complied operate and to maintain its plants, machinery, equipment and other property and from time to time to make all necessary repairs and renewals thereof Covenant Class Status I Accounts/audit C - Complied with 2 Financial performance/generate revenue from beneficiaries CD - Compliance after Delay 3 Flow and utilization of Project funds NC - Not Complied with 4 Counterpart funding SOON - Compliance Expected in Reasonably Short Time 5 Management aspects of the Project or of its executing agency CP - Complied with Partially 6 Environmental covenants NYD - Not Yet Due 7 Involuntary resettlement 8 Indigenous people 9 Monitoring, review and reporting 10 Implementation I Sectoral or cross-sectoral budgetary or other resource allocation 12 Sectoral or cross-sectoral regulatory/institutional action 13 Other 24  Table 11: Compliance with Operational Manual Statements I ~~~~~~No major lack of compliance was observed Table 12: Bank Resources: Staff Inputs Preparation to 99.2 205.6 appraisal Appraisal 97.6 189.5 Negotiations through 11.8 29.6 Board approval Supervision 233.2 625.6 Completion 7.9 29.1 TOTAL 456.6 1098.9 449.7 1079.4 25  Table 13: Bank Resources: Missions Preparation 12/88 7 19 Preappraisal ? ? Appraisal 6.89 12 FA, EC, E, J, C, ISS, EC, Ec, TR Post appraisal 12.89 3 FA, EC, Ec, C, LT Supervision 1. 7.90 1 5 FA 2. 12.90 3 12 FA, E, DS 1 1 3. 4.91 2 22 FA, DS 1 1 4. 12.91 2 5 F, DS 2 2 Fin. 5. 6.92 3 18 AE, F, DS 3 3 Fin., Man., Proc. 6. 12.92 2 17 AE, DS '2 3 Fin., Man., Proc. 7. 4.93 1 9 AE 2 2 Fin. 8. 10.93 1 18 AE 2 2 Fin. 9. (Mid-term 12.93 3 17 AE, E, DS 2 2 review) 10. (partial) 4.94 2 17 AE, OA - - 11. 6.94 3 29 AE, YP, OP 2 2 12. 4.95 3 ? AE, EC, OA S S ? 13. 4.96 5 ? AE, OE, ISS, S S EC 14. 11.96 2 AE, EC S S Completion 5.97 2 20 E, AE AE = Agricultural Economist; C = Cartographer; DS = Donors Secretariat; E = Environmentalist; EC = Economist; Ec = Ecologist; F = Forester; FA = Financial Analyst; ISS = Information System Specialist; J = Jurist; LT = Land Tenure Specialist; OA = Operations Analyst; TR = Training Specialist; YP = Young Professional. 26  Appendix I Aide-mernoire of FAO-CP mission REPUBLIQUE DE MADAGASCAR PROGRAMME ENVIRONNEMENTAL (PE1) (Cr.2125 MAG) RAPPORT DE LA MISSION D'ACHEVEMENT DE LA MISE EN PRATIQUE DU PROJET AIDE-MEMOIRE A. Introduction 1. Ceci constitue I'Aide-Memoire d'une mission FAO/CP qui a sejourne A Madagascar du 21 avril au 9 mai 1997 pour preparer l'ICR pour le projet sus-mentionn6.1 Les objectifs de la mission sont bases sur la revue des documents disponibles aux bureaux de la Banque Mondiale A WASHINGTON et A ANTANANARIVO, des informations fournies par l'Emprunteur, les bailleurs de fonds, les ONG nationales et internationales, ainsi que sur les resultats des descentes sur terrain et des discussions faites avec les villageois et les representants des communautes. La mission souhaite exprimer ici sa reconnaissance pour l'excellent support recu de tous les partis concem6s. B. Le Projet Historique 2. La premiere phase du programme ( PEI) a ete pour la tranche des 5 premieres annees d'un Plan d'Action Environnementale (PAE) de 15 ans prepare en 1987/88 dont les objectifs sont: (a) la conservation et la gestion de la biodiversite de Madagascar, (b) la promotion d'un developpement durable et la gestion des ressources naturelles du pays, (c) I'amelioration des conditions de vie de la population, et (d) le d6veloppement des ressources humaines du pays et de la capacite des institutions. Objectifs et Composantes du Projet 3. Au debut le PE1 a comporte 7 composantes: (a) protection et gestion de la biodiversite; (b) conservation des sols, agro-foresterie, reforestation et d'autres actions de developpement rural dans les zones prioritaires; (c) cartographie des zones prioritaires et etablissement progressif d'un systeme d'information geographique (SIG); (d) delimitation cadastrale et securisation fonciere amelioree par le titrage des terres dans les zones prioritaires; (e) formation, enseignement et sensibilisation sur les questions environnementales; (f) recherche environnementale; et (g) une serie d'activite de support pour la creation d'institution, 1'elaboration de procedures et de bases de donnees d'evaluation environnementale, des etudes, et I La mission a ete composee de Messieurs R. DUBOIS Chef de mission FAO/CP et H. TRUPKE Economiste FAO/CP. 27  des suivis et evaluations (S&E). En complement de ceux pre-cites, en 1994, des volets selectionnes du Projet Gestion et Protection des Forets sont transferes A PE I. 4. Le cout initial total du PEI pour une periode de 5 ans a et estime A 85,5 Millions de US$. Le programme a ete cofinance par l'A.I.D (26 millions de US$), a le Gouvernernent Norvegien ( 25 millions NKz, equivalent A 3,8 millions de US$ environ) et d'autres bailleurs de fonds ( 38,1 millions de US$). La contribution du Gouvernement Malgache (GOM) a ete estim6e a 17,1 millions de US$, dont 13,2 millions de droits et taxes. Le premier PEI a atteint approximativement 91 millions de US$O Experiences dans la Mise en Oeuvre et Resultats Obtenus 5. La composante biodiversite, dont la mise en oeuvre a ete bas6e sur la d6l6gation des actions de gestion des aires protegees (AP) A des operateurs autonomes sous la coordination d'une nouvelle agence ANGAP (Association Nationale pour la Gestion des Aires Protegees) et de la DEF (Direction des Eaux et For8ts), visait a: (a) 1'etablissement et l'6quipement de 50 AP couvrant une superficie d'environ 1,4 million d'hectare; (b) la fourniture d'assistance aux communautes environnantes pour developper des actions agricoles durables et ameliorer les conditions de vie de 70.000 familles vivant sur 0,3 millions ha A proximite des AP supportees par le projet; et (c) l'amelioration de la protection et de la gestion durable de 0,3 millions d'ha de for8ts naturelles repertori6es particulierement A proximite des APs. 6. L'ANGAP a ete cr66e et charg6e de la responsabilite de coordination et de gestion des APs du pays. Un total de 44 APs a te identifie et certaines sont en train de faire l'objet des procedures administratives en vue de leur 6tablissement formel. Sept d'entre eux furent ger6es directement par I'ANGAP et 13 autres par des soumissionnaires. Des actions concretes de developpement local dans des zones proches des APs par l'approche de Projet de Conservation et de D6veloppement Integre (PCDI) ont ete supportees dans 19 des 44 APs et estimees avoir profite a un total de 13.482 familles. Cinq sur 44 AP etaient des forets proteges, representant un total approximatif de 0,48 Millions d'ha qui sont ulterieurement transferes a ANGAP. De plus, un plan de gestion a ete elabore pour une for8t classee, et a permis de conduire a I elaboration de plans de gestion pour 3 (trois) autres for8ts classees. 7. Les principaux resultats d6coulant de l'approche de PCDI adoptee dans 19 des 44 APs furent que: (a) beaucoup d'activites de developpement etaient tres eparpillees et souffraient d'absence de ligne directrice (souvent A cause d e l'influence de la philosophie propre de chaque institution qui a e d6signee Operateur) occasionnant de possibles obstacles a la realisation des objectifs de conservation; (b) des operateurs de AP, particulierement les ONGs internationales, ont 6tabli de grandes et onereuses operations de gestion de AP, qui ne sont pas susceptibles d'8tre durables une fois que l'ANGAP les auraient cedees; (c) des exemples specifiques ont 6t& documentes, qui demontrent que des revenus du tourisme peuvent g6nerer et rendre aux communautes sous formne de petits projets de developpement ameliorant le bien-8tre local et la prise de conscience de l'importance de la gestion durable des APs avoisinants; (d) malgre les exemples sus-mentionnes cependant, il y a tres peu de donnees concretes montrant que les approches impliquant la participation de la communaute ont reduit d'une maniere significative la degradation des ressources en biodiversite du pays; et (e) profiter au maximum des experiences reussies des PCDI de maniere A ce que le PAE puisse adresser des solutions rationnelles et 1 Ces chiffres n' incluent pas les dons effectues par USAID dans le cadre du NPA qui s'elevent A $ 33 million de US$. 28  realistes liees au processus de degradation de la biodiversite de Madagascar meme si cela va prendre plus de temps que pr6vu initialement dans le PE 1. 8. Les objectifs de la composante conservation des sols, d'agroforesterie et d'autres activites de communaute du projet impliquant la communaute ontete de: (a) aider la communaute rurale A proteger leurs bassins-versants, (b) la protection des sols, (c) d6velopper la capacite de production, et d'ameliorer les conditions de vie dans les aires non couvertes par les autres composantes du projet, Ia oui 1`erosion constitue une menace au developpement. Cinq regions ont et6 identifiees pour l'application de cette composante: (ANTANANARIVO, LAC ALAOTRA, FIANARANTSOA, MAHAJANGA, MANAKARA). Le choix s'est base sur des criteres specifiques (haute densite de population, potentiel agricole et impacts de l'6rosion). Pendant la mise en oeuvre, il a ete decide d'6largir la zone d'action aux regions avoisinantes des APs choisis. Quatre types d'investissement ont ete identifies pour appuyer la composante gestion des bassins versants, infrastructure de production, facilite de stockage et routes d'approvisionnement, et services de sante, la priorite dtant mise sur les deux premiers. Quelques 30.000 familles reparties sur 150.000 ha ont ete prevues de beneficier de 150 mini projets. Pour realiser cette composante, une seconde institution privee A but non lucratif, I'ANAE (Association Nationale pour les Actions Environnementales) a e creee. 9. Pendant la duree du projet I'ANAE a realise au total 1.177 mini projets impliquant 45.074 familles organisees en 1.092 groupements. La surface couverte par les activites du projet a ete estimee A 16.832 ha. dont 52 mini projets ont ete realis6s dans les zones avoisinantes 4 APs support6s par le projet. Tandis que le nombre des familles et des mini projets a depass6 l'estimation initiale, le total des zones concernees a ete considerablement inferieur A celui attendu initialement en raison de suppositions erronees apprehendees pendant la phase d'elaboration du document de base du PEI concemant la taille moyenne des exploitations agricoles. 10. Les objectifs de la composante cartographie, teledetection et information geographigue a ete d'assurer les services necessaires a la planification, la gestion, le suivi et ltvaluation des APs du projet et des zones peripheriques. La composante comporte les objectifs suivants: (a) etablir un reseau geodesique et une couverture cartographique d'environ 6 millions d'ha; (b) produire des orthophotos pour environ 2 millions d'ha; et (c) mettre en place un laboratoire national de teldetection, tout ceci sera execute par le Foibe Taosarintanin'i Madagascar (FTM), qui devrait etre renforce au cours du projet. 11. Un total de 2,4 Million de reseau geographique a ete mis en place, ce decalage par rapport aux estimations initiales etant principalement dui aux changements des besoins et/ou aux restrictions budgetaires des institutions ayant pris part a d'autres composants du projet (biodiversite, conservation des sols, etudes cadastrales et titrage). Des photos a6riennes ont et6 produits couvrant une surface totale d'environ 0,97 Millions d'ha, la difference provenant des restrictions budgetaires des institutions impliquees dans une autre composante du projet (etudes cadastrales), des probiemes techniques, et des retards dans la livraison des biens et services. Le laboratoire de teledetection a e mis en place, equipe, et a fonctionne au debut de l'annee 1995 A l'exception du laboratoire de photos aeriennes en couleur qui n'a pu fonctionner pour des problemes liWs avec le fournisseur des equipements que recemment. 12. La composante cadastre et la phase pilote d'une operation de delivrance de titres fonciers a ete prevue pour promouvoir une meilleure gestion en matiere de conservation des ressources naturelles grace A la s&curisation accrue des terres par octroi de titres aux terrains 29  domaniaux et prives avoisinants les APs et les for&ts repertoriees. La composante visait a definir les limites entre les terrains domaniaux et prives avoisinants les APs et les forets repertoriees et consecutivement fournir des cadastres et des titres A 2 Millions ha environ de terrains domaniaux et 200.000 ha de terrains prives. La Direction des Domaines (DD) a ete d6sign6e pour etre le responsable de l1execution de la composante. 13. Contrairement au but initial, seulement 838,000 ha de terrain ont ete cadastres et titres, dont: (a) 191.000 ha de terrains domaniaux associes aux 4 APs; (b) 647.000 ha de terrains prives dans les regions avoisinantes les aires proteg6s sus-mentionnes; et (c) 15.000 ha dans les zones protegees. Le changement de priorisation entre terrain domanial et prive provient principalement de la demande de l'ANGAP A ce que les activites de la composante touchent plus sur les terrains avoisinants les APs que sur les APs en elles-memes. L'insuffisance de l'ensemble des terrains ayant obtenu des cadastres etait due essentiellement A des conflits sociaux et politiques concernant les actions sur les titres et les difficultes techniques liees A la composante cartographique 14. La composante formation, education et communication, a eu pour but de: (a) apporter une formation pour aider les autres institutions des autres composantes; (b) realiser l'ad6quation formation-emploi; (c) introduire des cours sur 1'environnement dans l'enseignement primaire; (d) ameliorer la sensibilisation des decideurs sur les problemes-cles environnementaux. II a et pr6vu initialement que de nouveaux cursus aboutissant A la delivrance de dipl6mes a l'Universite; des curricula a matiere environnementale seraient introduits dans 20 % environ des ecoles primaires; et des campagnes de formation et de sensibilisation seraient menees dans cette composante. L'ONE (Office National de l'Environnement) devrait coordonner cette composante avec l'ESSA (dipl6mes universitaires) et le Ministere de l'Education de Base (cours dans l'enseignement primaire). 15. Le developpement d'un programme universitaire sur l'environnement par l'ESSA a Wt6 realise sans le support du projet. Des cours sur 1'environnement furent introduits dans quelques ecoles primaires, dans certains cas A proximite des APs du projet. Des formations furent organisees dans les differentes agences d'execution du projet (AGEX) mais quelques resultats n'ont pas e consolides. L'activite "campagne de sensibilisation publique" a e reduite et limite A des seminaires regionaux (6), des programmes radiodiffuses et des expositions pour l'information du public (12). La mauvaise performance enregistree dans cette composante a e due initialement A l'insuffisance de support du bailleur principal. 16. Sous la composante recherche environnementale, deux programmes de recherche environnementale etaient centres sur les ecosystemes des c6tes (5 etudes) et des terres (4 inventaires et etudes). Des activites de recherche seraient revues et approuvees par un Comite Scientifique 6tabli par l'ONE. La realisation devrait etre du ressort d'une s6rie d'agences nationales de recherche et des universites. 17. Le Comite Scientifique a et etabli en 1992. Des 5 etudes c6tieres prevues, trois ont et realisees et semblent etre en conforrnite avec les priorites de recherche arret6es au debut. Concernant les activites liees a l'ecosysteme terrestre, quatre etudes ont et terminees dont une seule semble etre en conform ite avec les priorit6s de recherche. Plusieurs des priorit6s de recherche precitees cependant, semblenit avoir ete traitees dans d'autres activites de recherche non liees A un projet (par exemple, inventaire de la flore et de la faune et feux de brousse). En outre, il y a eu un grand nombre d'activites de reclierche sp6cifique aux AP et supportees par la 30  composante "Biodiversite", cependant il n'est pas clair si les resultats de ces recherches ont fait l'objet d'une application directe a au profit de la mise en oeuvre du Projet. 18. En plus de la creation de nouvelles forets protegees (voir paragraphe 5 et 6), les autres composantes integrees dans le PE1 du Projet Gestion et Protection des Forets, il y a eu la promulgation d'un nouveau decret, la realisation d'un inventaire forestier A l'echelle nationale, la realisaton de la politique gouvernementale en matiere de gestion des forets, la gestion des ressources humaines et celle relative A la Recherche. 19. La nouvelle loi sur la foret a ete finalisee et est actuellement en cours de passer la officielle d'approbation aupres du Conseil des Ministres. Un Plan Directeur des For6ts Nationales (PDFN) issu de la nouvelle Politique Forestiere a ete egalement elabore. Ainsi, de nouvelles politique gouvernementales sur la gestion nationale des forets et des ressources humaines ont ete faites. La realisation de ces derniers a eu des repercussions sur l'evolution et I'application des modules d'essai et des stages de formation A l'exterieur. L'inventaire national des forets a ete seulement acheve partiellement. Des cartes thematiques specifiques restent encore A produire A cause des problemes techniques cites plus haut lies avec les volets cartographiques. Les recherches faites ont 6t6 tres limitees (ex.: recherche sur Eucalyptus p. et les pins). 20. Les objectifs de la Composante d'Appui a ete: (a) d'assurer la coordination entre les autres composantes du projet; (b) de developper la politique nationale environnementale et d'etablir les outils et les procedures pour sa mise en oeuvre. Les responsabilit6s de coordination a consiste d'abord en: planification annuelle, S&E, 6tudes, formation, education et sensibilisation, comptabilite consolid6e et passation de commande. L'objectif de la politique environnementale et des procedures ont entrame le developpement des points ci- apres : les politiques nationales environnementales, la legislation et les diverses reglementations; les procedures de l'EIA; les programmes S&E; le systeme d'information environnementale (SIE); la participation du pays dans les forums internationaux. En plus, cette composante a supporte la realisation de 24 cadastres, des etudes et des plans. L'ONE devait etre responsable de la composante dont l'accent 6tait pr6vu de devier dans le temps de l'objectif premier vers le dernier objectif. La responsabilite dans la realisation des 24 cadastres, a e partagee entre l'ONE et les AGEX concernees par l'activite. 21. L'ONE a accompli la plupart des travaux administratifs y afferents comprenant l'approbation des programmes annuels de travail du PEI par le Comite d'Orientation et de Suivi (COS), le role de secr6tariat du COS, et la participation en tant que representant aux Conseils d'Administration de I'ANGAP et de I'ANAE. Toutefois, il s'avere evident qu'un role plus fort dans la coordination s'est avere necessaire vu le nombre des institutions et la complexite du projet implique dans le PEI. La faible coordination a ete la principale consequence de la confusion sur la nature exacte du role de coordination elle-meme, les problemes de cadres et les alliances directes entre les bailleurs de fonds et les AGEX entravant une integration des differentes composantes, des changements induits par les bailleurs de fonds dans la definition des principales taches de l'ONE, et l'incertitude persistante sur la fonction de l'ONE dans le large contexte institutionnel du GOM. L'activitd de S&E a souffert d'un demarrage lent occasionne par le d6veloppement d'un systeme de suivi trop complexe, qui a et dventuellement abandonne. En consequence, une grande partie des travaux de suivi du S&E a ete realisee localement dans les AGEX respectives du projet, avec une coordination qui ne s'est faite que tres tard dans le PEI. II a semble que ce probleme est principalement du A la non-familiarisation avec les procedures generalement d'usage du S&E, A I'absence d'un encadrement approprie et A l'insuffisance de 31  coordination. Un decret d'application des etudes d'impact des investissements sur l'environnement a et6 adoptee et des etudes de politique sectorielle ont ete completees pour differents Departements (industrie, energie, tourisme, mine, routes, peche et aquaculture). Cependant il n'est pas sur que les Ministeres du GOM se soient appropries du processus existant et des options de la politique rdsultante. En outre, il apparait que l'ONE n'a pas developpe la capacite interne a formuler les politiques environnementales. La mise en place des EDMS n'a ete initi6e qu'en 1993 et le dernier equipement a e seulement livre au debut de I'annee 1997. Consecutivement, les donnees disponibles sont insuffisantes et ne sont que de nature generale. Sur les 24 cadastres, environ la moitie a ete executee en support: (a) la mise en place des 3 nouvelles agences, (b) activites cadastrales et (c) preparation de la seconde phase du PE. Les Principaux Facteurs Affectant le Projet 22. Le Projet a et approuve par le Conseil d'Administration en Avril 1990, mais sa mise en oeuvre effective ne commenca qu'en Fevrier 1991 en raison principalement des difficultes du Gouvemement Malgache A parvenir A un accord sur les conditionalites d'application. Quoique les trois nouvelles agences d'execution aient et6 mises en place dans les delais impartis, la situation socio-dconomique et politique instable a considdrablement retarde sa mise en oeuvre et la plupart des activit6s ne demarrerent effectivement qu'A la fin de l'ann6e 1992. 23. Le Projet a souffert en outre de absence de plan concret de financement et le retrait de la BAD parmi les organismes de financement a eu un s6rieux impact sur la composante formation education et communication, entrainant par voie de consequence un effet negatif particulierement sur la composante biodiversit6 et les activites du projet qui a trait au regime foncier et aux cadastres. L'execution a et par ailleurs affect6e au depart par l'importants problemes de passation de marches, lies I'absence d'approfondissement des procedures de passation de march6s de la Banque ainsi que qu'a la lourdeur administrative occasionnee A differents niveaux pour les procedures d'appel d'offre et de passation de marches qui dans certains cas ont entraine des retards de plus d'un an. Par voie de consequence, selon la revue A mi-parcours (Decembre 1993) seulement US $ 4,8 milliards ont ete debloques, contrairement a une evaluation estimee a US $ 17,8 million. Suite a une maturite institutionnelle grandissante et la maitrise des procedes de soumission et de passation des commandes, les performances ont commenc6 A s'amiliorer a partir du milieu de l'annee 1994 et l'on peut s'attendre A ce qu'A la date de forclusion du pr8t repoussee du 30 juin 1996 au 30 juin 1997, la majeure partie des fonds de l'AID auront ete debloqu6s. 24. En depit des buts louables du PEI et de l'approche prudente au depart prevoyant deux phases, la mise en place des institutions (2ans) et la mise en oeuvre pilote (3ans), le projet a souffert des imperfections dans la d6finition des finalites, notamment des objectifs trop globaux, des responsabilites excessivement larges et incorrectement delimitees des agences d'execution et d'une structure qui n'a pas abouti A I'approche souhaitee pour le programme mais a plut6t conduit a la mise en oeuvre isolee de la plupart des composantes. Cette demiere cons6quence est dui aussi au moins pour une part, aux exigences des differentes bailleurs de fonds , chacun defendant son domaine respectif souvent defini par un support specifique de la composante, ce qui a contribu6 A entrainer toute cooperation et a affaiblir les capacites de l'ONE dans son r6le de coordinateur. En plus la position de l'ONE a ete genee par les fr6quents changements intervenus dans l'Administration Malgache, qui l'ont amene successivement sous la tutelle de six (6) differentes Institutions pendant la periode d'execution du projet allant du Ministere de 32  I'Economie et du Plan (MEP) au nouvellement reinstaur6 Ministere de l'Environnement (ME). Les performances de l'ONE ont dte egalement affectees par: (a) les grandes differences dans les salaires et avantages entre les agences nouvellement etablies et les institutions gouvernementales affectant la motivation et la fourniture de support logistique (apportees par ces dernieres); (b) de frequents changements des responsables du projet (task managers) de la Banque (quatre dans l'espace des 5 annees du projet); et (c) la lenteur de la Banque A approvisionner le Compte Special. La Banque n'a pas r6ussi A identifier et rectifier les deficiences des le debut de la phase de mise en oeuvre du projet. 25. La principale faiblesse de l'Emprunteur a ete un manque de forte volonte politique et d'appropriation du programme illustr6e particulierement par: (a) l'incapacite A donner A l'ONE un cadre institutionnel credible et respectable; (b) 1'incapacite A apporter une reponse valable A ses besoins en matiere de cadres; et (c) la provision au depart tardive et insuffisante du fonds de contrepartie. Cependant, la situation s'est progressivement amelioree et l'on espere que la reinstauration du MOE est un signe qui montrant une plus grande implication du GOM dans la reussite du Programme Environnemental. Simultanement, la mise en place au MOE souleva quelque doute sur l'avenir de l'ONE specialement en ce qui concerne sa capacite A r6aliser son mandat politique. 26. Les performances des soumissionnaires et des fournisseurs ont ete generalement correctes. Les foumisseurs de certains equipements cl6 en faveur de la FMT ont neanmoins eu des defaillances, entrainant un impact negatif sur toutes les composantes ayant eu des besoins en matiere de cartographie. Les performances des ONGs nationales et intemationales dans la realisation de AP et des activites de mini-projets ont ete generalement bonnes mais il y a des doutes sur le contr6le de leurs activites, leur orientation objective et la dimension des couts de mise en oeuvre. Evaluation des Resultats 27. Les resultats des differentes composantes du projet et leurs activites respectives ont 06 variables. Le PEI a mis en place trois nouvelles institutions en charge de tfches specifiquement environnementales en conformite avec les objectifs du projet (soit classification et definition des limites de 44 APs, mise en oeuvre des mini-projets suivant les demandes venant des communautes et un vaste programme d'etude). Enfin , malgre l'insuffisance de donnees, il y a un sentiment general que la biodiversite A Madagascar est moins menacee aujourd'hui qu'au moment de l'ebauche du projet. 28. Neanmoins, un des principaux objectifs de PEI a et de mettre en place le cadre institutionnel pour un programme environnemental durable. Alors que les trois nouvelles Agences ont et instaurees, leur devenir A long terme est incertain concernant leur relation avec le secteur public. De plus, il n'a pas existe encore ni un document cadre de la politique gouvernementale, ni un plan d'action clairement defini sur la politique A suivre, et la coordination entre les AGEX, les bailleurs de fonds, et les ONGs ont reste faibles. L'approche sur la protection et la gestion de l'environnement est largement basee sur des activites isolees, independantes, au lieu d'interventions integrees propres A un programme. Couplees aux objectifs tres ambitieuses du PEI, les activites eparpill6es caracteristiques de la premiere phase du programme ont trop compte sur la capacite des Agences d'execution, particulierement des Institutions nouvellement crees. La Composante Recherche n'a pas atteint l'objectifs attendus qui sont la traduction des resultats de la recherche en programme d'actions. Enfin, I'absence d'un 33  systeme de Suivi et d'Evaluation objectif n'a pas permis une evaluation adequate des impacts du projet. 29. En d6pit de ces lacunes le PE1 a considerablement fait evoluer la conscientisation au niveau international et national de la conservation de l'environnement malgache. II a surtout suscite une plus grande prise de conscience du gouvernement de la necessite de proteger et de gerer l'environnement et a instaure des bases communes de participation des bailleurs de fonds. Finalement au niveau des communautes locales avoisinantes les aires d'intervention du projet se manifeste une plus grande sensibilisation et une volonte d'appropriation du programme comparativement A la situation de demarrage du programme. Pour ces raisons, les resultats du projet ont ete evalues satisfaisant. Resume des Resultats, Operations Futures, et les Principales Leqons a Tirer 30. Probablement, le resultat le plus important du projet est que la protection et la gestion de l'environnement exigent beaucoup plus que l'instauration d'institution avec un mandat specifique et l'execution materielle de programmes d'action. En premier lieu, une politique gouvernementale doit etre mise en place en donnant la possibilite A tous les beneficiaires et/ ou acteurs de travailler d'une maniere coordonn6e vers des objectifs clairement definis. Contrairement a cela, des Agences d'ex6cution ont e instaurees, sans objectifs communs clairement definis. Comme le demontre I'absence de coordination verticale et horizontale entre les Agences et institutions concernees, il n'a jamais et possible de parvenir A l'approche holistique. En outre, 1'emergence de plusieurs Agences a conduit A une fragmentation des responsabilites A des chevauchements et des lacunes, au niveau aussi bien executif que sur le terrain, et la differentiation dans les statuts des institutions a entrame des rivalites et conduit A un avenir incertain qui est susceptible de miner la durabilite du projet. Le renforcement des institutions a besoin d'8tre initie d'une maniere equilibree, en aidant les differentes institution/ agences impliquees dans les aires protegees / r6pertoriees et autres regions rurales A se developper d'une maniere equitable et mutuellement avantageuse. Beaucoup de ces questions ont dte identifiees durant la preparation au EP1 mais ne se sont pas refletees dans le processus d'evaluation. 31. Cependant, le PEI a e une aventure de pionnier et a mis a l'epreuve de nouvelles approches dans la gestion des aires protegees malgaches. Durant le PE2 d'importantes ressources (US $ 155 million) seront mises A la disposition du pays pour continuer le PAE. Bien que les grandes lignes du PE2 ont ete dejA fixees, le programme reste suffisamment flexible pour permettre quelques ajustements en cours de mise en oeuvre et consequemment aux resultats de cette mission. Les lecons tirees du PEI devraient 8tre consolidees avant d'elargir et de diversifier le champ d'action du programme au PE2. Il est d'une importance particuliere de: (a) clarifier les relations de l'ONE avec le ME nouvellement cree et la mise en place d'une cadre institutionnel hautement credible et respectable pour une entite chargee de formuler une politique et une reglementation sur l'environnement; (b) de developper une ligne d'action finale conduisant A la resolution des conflits existants avec le secteur public parallele et les institutions semi-privees nouvellement creees impliquees dans la planification et la gestion de l'environnement; et (c) d'evaluer les differentes approches des PCDI initiees sous le PEI comme base de modeles des activites du PE2 particulkirement A l'appui A la Gestion Regionalisees et A l'Approche Spatiale (AGERAS). 34  32. Les principales lecons a tirer de P'experience de mise en oeuvre sont que: (a) les objectifs du projet et les responsabilites des Agences d'execution devraient rester aussi simples et aussi specifiques que possible; (b) par la repartition du financement du programme sur une base composante par composante aux differentes AGEX, la synergie entre les institutions risque de ne pas 8tre realisee; (c) la participation communautaire dans la protection et la gestion de l'environnement rural ne pourra etre effective que si les activites a lancer repondent a leur besoins; (d) le changement du comportement de l'homme concernant les approches A base communautaire sur la gestion des Aires Protegees aura a requerir une implication a long terme; (e) une strategie de communication est essentielle et constitue une condition de r6ussite de la gestion des APs; et (f) que la mise en place d'un systeme de S&E avec des orientations les plus objectives possible pour l'ebauche d'une approche programme/projet est essentiel pour assurer egalement cette reussite. C. SUIVI 33. Au retour de Rome, la mission pr6parera l'ICR incluant les tableaux statistiques requis pour soumission A la Banque et a l'Emprunteur vers le debut du mois de juin. L'emprunteur a e avis6 par la mission sur la necessite de preparer son propre evaluation (sur un resume ne depassant pas 10 pages) pour constituer une partie integrante du rapport final. 35  Appendix 2 Borrower's comments Formal comments from the Borrower take the form of an official letter from the Minister in charge of the Environment, which is reproduced in Part 1 of this appendix. The implementing agencies of the EP 1 now involved in the EP2 have prepared their own ex-post evaluation of EP1, under the supervision of the recently established EP2 Monitoring and Evaluation Committee. They prepared for the purpose of the present report a short summary in English, which is presented in Part 2. Comments received from the implementing agencies have been taken into account in the report itself. PART 1: REPRODUCTION OF LETTER FROM THE ENVIRONMENT MINISTER REPOBLIKAN'I MADAGASIKARA Tanindrazana-Fahafahama-Fahamarinana Antananarivo, le 30 Octobre 1997 MINISTERE DE L'ENVIRONNEMENT SECRETARIAT GENERAL LE MINISTRE DE L'ENVIRONNEMENT DIRECTION GENERALE Service des Etudes Economigues A Monsieur LE VICE PREMIER MINISTRE CHARGE DES FINANCES ET DE L'ECONOMIE - ANTANANARIVO - No. 349-97/MINENV/SG/DG/SEE. 0 B J E T: Rapport d'ach'vement du PEI. REF: L No.1133/97/BM/MG du 08 Octobre 1997. Faisant suite A la lettre sus-referenci6e, J'ai l'honneur de vous communiquer, par la presente, les remarques et avis suivants de mon Departement: 1/ concernant le cadre institutionnel: effectivement, le probleme institutionnel stest pose pendant le PEI. En effet, pendant cette phase, les roles des differentes structures A savoir la Comnmission Nationale pour la Conservation et le Developpement (CNCD), la Structure Institutionnelle Nationale pour l'Environnement (SINE) et l'Office National pour l'Environnement (ONE) n'6taient pas tres clairs. C'est la raison pour laquelle on a modifie la Charte et au debut du PE2 on a cree le Conseil National pour l'Environnement CNE ) ou figure le Ministere de l'Environnement, le Comite Interministeriel de l'Environnement (CIME) et le Comite Technique d'Evaluation (CTE) dont le Secretariat et la presidence sont assures egalement par le Ministere. 36  Donc, au cours du PE2, de tel probleme ne devrait plus se poser car les r6les et mandats des differentes structures de la gestion de l'Environnement ( CIME, CNE, MINENV, ONE ... ) sont tres clairs dans le paysage institutionnel du PE2. L'ONE 6tant une structure d'appui du Ministere de l'Environnement et des Ministeres Sectoriels dans la definition de leur politique. I1 assure egalement la coordination technique des activites des Agences d'Execution (AGEX) du PE2. 2/ Pour ce qui est du cadre de politique generale: la declaration de la politique sectorielle etait faite en Septembre 1996, la question est de savoir, si question temps, c'6tait a la fin du PE1 ou pendant l'elaboration du PE2. 3/ En ce qui conceme le suivi-6valuation: une lacune a ete constate au cours du PEI. Cela est duie au fait que l'ONE et les AGEX en tant qu'executants du programme ne devraient pas faire le suivi-evaluation puisqu'ils sont de ce fait juges et parties. Donc le suivi-evaluation devrait etre assure par une institution A part qui ne serait pas executante du programme. Par ailleurs, conformement de l'article 15 de la convention Etat / PE2, le Ministere de l'Environnement sera dot6 de moyens et de mat6riels lui permettant d'assurer son r6le de contr6le, et de suivi-6valuation du programme. 11 importe de proceder A la concretisation dudit article des la periode de d6marrage du PE2 afin de combler les lacunes constatees durant le PEI. 4/ A propos du renforcement institutionnel, la Banque reconnait les avantages obtenus par l'ONE, I'ANGAP et l'ANAE au detriment du secteur public. Cette difference de traitement a engendre des problemes de motivation de ce demier. A l'avenir, il y aura lieu de remedier A cela en renforcant les capacites de l'ex-DEF, de la CPF et aussi et surtout du Ministere de I'Environnement en uniformisant les traitements de tous ceux qui interviennent dans le secteur environnemental et en dotant le MINENV d'un bureau, des v6hicules et des materiels adequats. signe VAOHITA Colette 37  EVALUATION SUMMARY ENVIRONMENT PROGRAM I (PE1) (CREDIT 2125-MAG) PART 2: SUMMARY OF EX-POST EVALUATION BY IMPLEMENTING AGENCIES Introduction 1. This work has been conducted under the close supervision of the CSE (Monitoring and Evaluation Committee) for the EP2 as the national contribution to the final project closing report to be done by the end of this year. This report puts altogether the results of self assessment works conducted by the Executive Agencies (AGEX) of the EPI with the help of two local consultants. Analyses presented hereby are therefore about all EPI donors and not only about the World Bank. Most informations given in the report are based on the most recent data available from the AGEX. 2. The EP 1 was the first 5-year part of the Environment Action Plan (EAP) started in 1991. The main objective of the EAP is to HELP THE MALAGASY PEOPLE TO PROTECT AND TO IMPROVE THEIR ENVIRONMENT FOR A SUSTAINABLE DEVELOPMENT. The EPI, for its part, aims to DEVELOP EMERGENCY OPERATIONS AND ESTABLISH SOLID GROUNDS FOR AN ENVIRONMENT MANAGEMENT THROUGH INSTITUTIONS AND HUMAN RESOURCES CAPACITY BUILDING. Specific goals of the EPI are: i) to keep and manage the biologic diversity patrimony ii) to promote a sustainable development through a better management of natural resources iii) to improve rural and urban populations life conditions iv) build human resources and institutions capacity. The EP1 was supposed to cover at the start 7 components: - biodiversity and main earth ecosysytems (where it is most endangered) protection and management combined with peripheral zones development - promotion of soil conservation, agroforestery, reforestation and other rural development actions in priority zones - mapping and progressive GIS implementation - delimitation of protected areas and land security improvement by a land titling program in priority zones - promotion of sensibilization, training and education on environment - environmental research on sea, coastal and earth ecosystems - and an EAP support component about assistance to institutions, establishment and financing of Environmental Impact Assessment (EIA) procedures, environmental database implementation improvement, monitoring and evaluation, and studies. 38  3. There were 4 types of EP1 executing agencies: 2 national associations (ANAE and ANGAP), 2 public departments (DDC and DEF), I public commercial company (FTM) and 1 national office (ONE). The initial amount of US$ 85.5 millions went finally up to US$ 127.452 millions of which US$ 90.91 1 millions were effectively disbursed at the time of this assessment. THE EP1 COMPONENTS AND THEIR RESULTS 4. Biodiversity This component was executed by 2 AGEX: ANGAP and DEF and had 3 main objectives: (i) to establish a 1.4 million hectares protected areas (PA) network, (ii) to help peripheral zone communities develop a sustainable agriculture and improve their life conditions while associating them in conservation actions, (iii) develop ways to protect and better manage gazetted forests. DEF was in charge of creating new PA and changing a PA's statute or limits while ANGAP handled operational management of the whole network. Despite administrative slowness and complexity in processing PA' paperworks and despite big differences in the operators' approach, the component was able to create 4 new PA (1 finalized, 3 on the way to be) while 39 PA existed already before EPI. Among those 43, 7 were directly managed by ANGAP and 20 were given to International Operators to be managed under 13 ICDP. The component created also 1,000 jobs and implemented environmental database about the network. Ecotourism development in PA was very encouraging. A national monography on biodiversity is being produced through collaboration between ANGAP, DEF and CNRE. 5. Support to DEF through the biodiversity component Funds from GPF Project MAG/1 878 were transfered to EPI to finance a few activities under the responsibility of DEF. Those activities included: formulation of a new forestry policy, IEFN (National Forestry and Ecologic Inventory), PA creation, Monitoring and Evaluation, Gazetted forests pilot management, Human resources management and Research. DEF acquired through this component equipment, vehicles and training for its personnel. The IEFN is done except 45 maps being produced, the new Forestry Policy is being discussed at the National Assembly, a National Forestry Plan is available, management plans and schemes were established for Pilot gazetted forests (1 Plan is being tested in Ankeniheny), 2 control stations were implemented along the RN2. 6. Soil conservation, agroforestery, reforestation and other rural development actions in priority zones Executed by ANAE, this component was originally designed to let about 30,000 families living in 5 priority zones (Antananarivo, Fianarantsoa, Lac Alotra, Mahajanga and Manakara) benefit from its grants by financing 150 mini-projects. The demand for its grants was so high that the objectives had to be revised in 1993 to reach 50,000 families in 40,000 ha of land. 86 middle operators work closely with ANAE on the field to manage and implement some 1,177 mini- projects covering 16,832 ha. 45,074 families benefited from this component which worked very little in PA's peripheral zones. The main problems the component encountered were that the 39  results depend mostly on populations' own responsiveness and that seeds for reforestation and agroforestry were not always available. 7. Mapping, Remote Sensing and Gis: Through this component, FTM was supposed to produce the mapping and remote sensing tools the other Executing Agencies would need for their own work. For FTM to be able to face such demand, it was given a credit line to improve its old equipment. A 2.4 million ha of geodetic network was established, aerial photos covering 8.526 million ha were taken and orthophotomaps covering about I million ha were produced. Unfortunately, late equipment deliveries and equipment defaults penalized FTM and made them deliver products very late to EPI potential customers and even loose a few markets. Netherless, FTM is now one of the best equipped company in mapping and remote sensing processing in Madagascar because not only has it been equipped but its human resources have been sent for training abroad. 8. Land Titling and Land Security: Left to the DDC, this was a support component to the others. It had 2 main goals: (i) to define the limits and to proceed with the titling of about 2 million ha of state land in PA, (ii) to improve land security and to deliver titles for about 200.000 ha of private land around PA's and in priority watersheds. 5 studies were conducted, the DDC equipped and some of its personnel trained. 7 PA with a total superficy of 191,000 ha, 632,000 ha of peripheral zones and another 15,000 ha in the priority zone of Isorana were inventoried. DDC had to face a few specific problems: slowness in PA's paperwork processing, disappearance of delimitation signs for aerial photos, non implementation of the SIEF component, base maps missing. 9. Training, Education and Communication A key component, this one was supposed to: (i) train the EPI personnel, (ii) build human resources according to the expected job creation during EP1, (iii) start taking into account environmental considerations in school programs, (iv) sensitize decision makers and main users on environmental problems. Specialized diplomas were to be conceived at the University but the population was not ready for that kind of collaboration yet. This component suffered also from the withdrawal of the ADB as its main donor. 10. Environmental Research A few studies were conducted during EP 1, coordinated by ONE while other AGEX had also their own research program apart. DEF has conducted the IEFN, DEF/ANGAP/CNRE are finishing a national monography on biodiversity, and ANAE has done an assessment of all the works about soil conservation in Madagascar with FOFIFA and CIRAD. The main achivements of this component are: the implementation of the Scientific Committee since 1992, a few big studies done in which local organisations have participated (CNRO, IHSM, CNRE, CIDST, COMODE), the networking of existing environmental data banks. 11. Support to EAP This component included 2 parts: (i) the coordination of the other 6 components of EP I, (ii) and the development of the national environment policy by implementing means and procedures for 40  its realization. The coordination role was always a big source of misunderstanding between ONE and the other AGEX during EP1 even if the 1992 COS already suggested that ONE leaves that responsibility to focus more effort on policy development. Implementation and development of the 3 new organisms (ANAE, ANGAP, ONE), the adoption of the Environment Chart are among the biggest achievements of EP I. THE MAIN LESSONS FROM EP1 - EPI objectives were too ambitious and far from being realistic for some components. Program elaboration should be done in a more pragmatic way. - Institutionnal development was not easy for some AGEX because of frequent changes in their terms of reference. Each AGEX's role and responsibility should be defined once and for all from the beginning. - The lack of effective and non directive coordination was one of the biggest problems of EPI. Coordination should not be understood as always a directive one and for control. It should be more of a constant search for concertation, participation and piloting of a progressive process. - A practical monitoring and evaluation system was missing during EP1. This problem is being corrected for EP2 through implementation of a concerted system. * XEPI missed also addressing the issue of the after EAP: what will happen when the funding stops? Beneficiary population do not feel yet as owner of what has been done so far. A better and a clearer sharing of the results and experiences should be done to build and improve base communities' awareness of their ownership of all the Program. EP I was lacking a communication plan because of the non-availability of ADB funds. - a better awareness about environment problems is felt among the EP1 beneficiary populations. * without the international donors, EPI would have never existed but some donors' conditions and frequent changes have to be reviewed for a better stability of the whole EAP system. 41  Appendix 3 Comments from Cofinanciers All donors involved in EP1, either directly through Bank-managed funds or parallel financing, or through the financing of closely related projects, have participated actively to the preparation, appraisal and negotiations of the follow-up EP2 operation. Their views and lessons learned are thus reflected in the design of EP2. Consequently, most donors did not provide formal comments on the present report. Formal comments were received form Swiss cooperation only, and are reproduced below. DIRECTION DU DEVELOPPEMENT ET DE LA COOPERATION DDC AMBASSADE DE SUISSE ANTANANARIVO Le Coordinateur-Adjoint La Banque Mondiale Monsieur Christian REY Repr6sentant R6sident ai. Immeuble Macoma Ibis Rue. Patrice Lumumba 771.22(78) FW ANTANANARIVO 101 22 octobre 1997 Credit 2125-MAG-Programme Environnemental 1/ Rapport d'Achevement, commentaires Cher Monsieur, Nous vous sommes reconnaissants de nous avoir transmis le "projet de Rapport d'Achevement du Programme Environnemental, phase 1, cl6ture le 30 juin 1997" pour avis et commentaires. Tout en reconnaissant avoir e consultes par les auteurs du rapport et avoir eu la possibilite de faire des commentaires lors de la restitution de "fin de mission" le rapport receptionn6 actuellement, accompagne des annexes, souleve neanmoins quelques anomalies sinon des questions que nous estimons qu'il faut signaler. Objectifs du projet: sont cites entre autres b) promotion du developpement et de la gestion durables... c) amelioration des conditions de vie de la population... Les annexes nous informant, "Tableau 1: Resume des 6valuations"(page 18), 42  A. Realisation des objectifs - Lutte contre la pauvrete ................ Mention - "Sans objet" Anomalie? Est-ce possible de concevoir un "d6veloppement durable et une amelioration des conditions de vie de la population" en dehors d'une strategie de "lutte contre la pauvrete"? La Cooperation suisse est de I'avis qu'il aurait fallu evaluer l'impact dans ce domaine. Resultats de l'execution Le premier paragraphe (page ix du resum6) conclue comme suit: "Enfin, meme en l'absence de donnees concretes, on s'accorde generalement A reconnaitre que la diversite biologique de Madagascar est moins menacee aujourd'hui que lorsque le PE1 a e lance". Pourtant A la page 4 (rapport d'achevement), para 11 on lit comme suit: "on dispose de fort peu d'indices prouvant de maniere irrefutable que les approches axees sur les populations locales ont sensiblement reduit la menace... il faudra beaucoup plus de temps... pour permettre au PE de reduire la menace". Anomalie? Une reconnaissance gent'rale plut6t emprunte d'auto-satisfaction? Un vieux dicton anglais dit "Figures are more eloquent than words" et A ce propos il existe des statistiques officielles publides par la Direction des Eaux et For8ts dans le cadre de la Journ6e Mondiale de la Statistique et qui indiquent pour Madagascar pendant la periode du deroulement du PEI comme suit: Surfaces detruites parfeux de brousses 1991 183'543 ha 1992 101'532 ha 1993 401'753 ha 1994 551 '695 ha 1995 1'238'124 ha Le moins que l'on puisse dire est, soit que les evaluateurs ne sont pas tres exigeants ou on veut fermer les yeux face A certaines realit6s. Les chiffres indiquent clairement qu'aupres de la population Malagasy dans sa grande majorite, l'impact du PEI dans les activites quotidiennes est peu voire meme tres peu et on peut de facon tres legitime se demander si la menace connait r6ellement un recul. La recherche: La recherche en soi existait a Madagascar longtemps avant que le PE soit mis en place. Ainsi, A lire A la page ix du rsume " ...les resultats... n'ont pas debouche sur des programmes d'action sur le terrain" (ceci au bout de 5 ans de travail) demontre un probleme majeur d'articulation entre le PE et les entites de recherches. 43  La recherche, menee dans un pays si economiquement faible que Madagascar, n'a de raison d'etre que quand "elle est au service du developpement" Nous ne trouvons pas dans les recommandations des evaluateurs une insistance quant A l'articulation qui est A mettre en place afin que service soit rendu. Au debut du PE2, savons-nous quelles sont nos attentes dans ce domaine? Savons-nous les exprimer/communiquer? Les avons-nous exprimees avec clarte A nos partenaires de la recherche? Existe-t-il une volonte declaree et honoree du cote de la recherche pour 8tre partie prenante du PE2? Total des financements alloues au PEI. A la page ix du resume on peut lire en fin du premier paragraphe: "...estime A USD 85,5 mios ... un cofinancement supplementaire a porte le montant total du financement a plus de USD 90 mios." Cette remarque est confortee par la phrase qui se trouve a la page 10 du rapport d'achevement para 30" Le couit total du projet a ete rddvalue A USD 91.3 mios.(voir tableau 8A) Nous ne comprenons pas l'utilite de la phrase qui a e rajoutee au rapport des evaluateurs par le Charge de projet et qui se trouve en fin de para 7 page 3 "le total des financements allou6s au PEI s'eleve a USD 187 mios, dont environ 80% ont ete effectivement mobilises." Est-il necessaire de se gargariser avec des chiffres qui dans le fond ne veulent rien dire. Nous trouvons que la remarque est d'autant plus deplacee quand on enchaine pour terminer le para 8 sur la meme page ainsi "...il n'a pas e etabli de programme fiable de suivi et d'evaluation pendant le PEI" Si une telle declaration est tres grave pour des depenses qui se montent A USD 91,3 mios evitons d'en rajouter s'il vous plait !!!! Prestations de la Banque A la page 13 du rapport d'achevement para 38 on lit, "la Banque a joue un r6le dominant dans la preparation" et plus loin "Lors de la conception (et pendant le deroulement) ... on n'a pas tenu suffisamment compte de la complexite institutionnelle ... on n'a pas veille A delimiter precisement leurs fonctions ... on a largement sous-evalue le temps necessaire ... on leur (ONE, ANGAP, ANAE) a donne un tres net avantage sur le secteur public en leur permettant d'offrir ... des traitements et indemnites sans commune mesure avec ceux du secteur public ... on n'a pas songe que cette difference de traitement susciterait l'antagonisme ... de nombreux cas d'infraction aux directives ou regles de la Banque en matiere de passation de marches ... imputables au fait que l'emprunteur etait peu familiarise avec ces regles... la Banque aurait pu foumir un complement de formation et d'appui". Tout en reconnaissant qu'il est facile de formuler des critiques negatives, et ceci surtout apres coup. Tout en reconnaissant qu'en acceptant de jouer le r6le de "I e a d e r" parmni les bailleurs la Banque s'est exposee A la place d'autres qui portent avec elle 1'ensemble de la responsabilite des r6sultats peu enthousiastes du PE1. N'avons nous pas plus de courage devant le bilan constat6 44  que d'estimer comme "satisfaisant" une performance qui laisse beaucoup A desirer, pas seulement pour la Banque mais pour chacun de nous? La Banque n'est ni naive, ni a son premier coup et les evaluateurs ne devraient pas considerer comme "satisfaisant" un bilan aussi "questionnable". La performance de l'Emprunteur. Encore une fois, par trois mentions sur quatre (tableau 1 "resume des evaluations" page 18) on estime "satisfaisant" la performance de l'Emprunteur alors que l'on indique clairement A la page x "resume des conclusions et principaux enseignements, ler para, derniere phrase" "Un cadre macro-6conomique peu performant et un manque de stabilite politique ont en outre 6te des facteurs majeurs ayant empeche le PE1 d'atteindre sa pleine efficacite, et continueront A affecter de maniere determinante le degre de performance de la mise en oeuvre du PNAE" Madagascar a dispose de peu de moyens materiels propres pour la mise en oeuvre du PEI Dans ce cas, le r6le qu'il pouvait et devait jouer etait celui de 'fa c i I i t a t e u r"A travers la mise en place des conditons-cadre propices au bon deroulement d'un programme declare comme etant "d'int&& national", mais meme ce role, il ne I'a pas rempli correctement, des lors on devrait avoir le courage de d6clarer "insatisfaisant" la performance fournie plutot que de tomber dans le piege d'une formulation mediocre qui vise a ne pas froisser les sensibilites. Evaluation des resultats A la page 15 du rapport, para 45 et A la derniere phrase on lit "Aussi les resultats de la premiere phase du PE sont-ils juges satisfaisants." Cette appreciation merite d'etre nuancee. Poser la question aux operateurs du PEI A qui cela a offert du travail, il y a un risque qu'ils se disent "satisfaits", mais poser la question au 74% de la population Malagasy qui vivent en dessous du seuil de la pauvrete et qui devraient en etre les premiers beneficiaires du programme je ne suis pas persuade que l'on obtienne la m8me appreciation. En tant que co-bailleur et participant actif au PEI nous ne pouvons considerer comme "satisfaisants" les resultats en question. Voici les "avis et commentaires" sollicites, exprimes en toute franchise et dans un but constructif meme si parfois cela peut paraitre dure. Nous restons volontiers A votre disposition pour la suite des activites et vous prions de croire, Cher Monsieur Rey, en l'expression de nos remerciements sinceres et l'assurance de notre franche collaboration. Frank WEST 45