CI-GEF PROJECT AGENCY SCREENING RESULTS AND SAFEGUARD ANALYSIS (To be completed by CI-GEF Coordination Team) Date Prepared/Updated: I. BASIC INFORMATION A. Basic Project Data Country: Paraguay GEF Project ID: CI Project ID: Project Title: Innovative use of a voluntary Payment for Environmental Services scheme to avoid and reduce GHG emissions and enhance carbon stocks in the highly threatened Dry Chaco Forest Complex in Western Paraguay Estimated Appraisal Date: Executing Entity: Asociación Guyra Paraguay GEF Focal Area: STAR Allocation: Climate Change GEF Project Amount: USD 2.49 million Other financing amounts by source: Name of Co-financier Type of Co-financing Amount (USD) World Land Trust / Swire Pacific Offshore investment 500.000,00 Guyra Paraguay / Paraguay Forest Conservation Project investment 850.000,00 in kind 565.500,00 in kind 3.000.000,00 investment 1.500.000,00 Natural History Museum London SEAM projects + own governmental allocation Private sector (compensation) Other governmental institutions in kind Financial sector in kind TOTAL 400.000,00 200.000,00 7.015.500,00 Reviewer: Miguel A. Morales Date of Review: Dec 30, 2013 Comments: B. Project Objectives: To avoid and reduce green-house gases (GHG) emissions from deforestation and enhance carbon stocks in the Dry Chaco Forest Complex (DCFC) of Western Paraguay through the establishment of a Payment for Ecosystem Services (PES) stakeholder incentive mechanism. C. Project Description: please refer to PIF for more information D. Project location and physical characteristics relevant to the safeguard analysis: please refer to PIF for more information E. Executing Entity’s Institutional Capacity for Safeguard Policies: please refer to institutional assessment for more information 1 II. SAFEGUARD AND POLICIES Environmental and Social Safeguards: Safeguard Triggered Yes Environmental & Social Impact Assessment (ESIA) No TBD Date Completed X Dec 30, 2013 X Dec 30, 2013 X Dec 30, 2013 Justification: Natural Habitats Justification: Involuntary Resettlement Justification: Indigenous Peoples X Dec 30, 2013 Justification: a) At this stage of the project (PIF) the Project Agency expects that the Ishir Community will be invited to join the PES incentive program, given that they are currently recipients of a carbonbased project in which they own together with Asociacion Guyra Paraguay a property of 4,700 ha in a socio-environmental condominium. b) In addition, some areas that the Guarani Ñandéva, Ishir or Chamacocos and Ayoreo Peoples claim as their ancestral territories, as well as areas where some un-contacted Ayoreo groups may still live, might fall within the priority areas of this project; however this will be determined during the project preparation (PPG) phase. Asociacion Guyra Paraguay has implemented Free, Prior and Informed Consent (FPIC) processes with the Mby’a Guarani and the Ishir-Chamacoco Peoples in eastern and western Paraguay, respectively. If indigenous peoples or their lands are identified as part of the priority areas for this project, a proper FPIC process will be implemented using the guidelines developed by the Institute of Indigenous Affairs of Paraguay (INDI). Staff from INDI and Ministry of the Environment (SEAM) will supervise the implementation of the FPIC process. The Federation for the SelfDetermination of Indigenous People (FAPI) will be invited to oversee the FPIC process. Pest Management X Dec 30, 2013 X Dec 30, 2013 Justification: Physical & Cultural Resources Justification: 2 Other relevant policies and best practices Triggered Stakeholder Engagement Yes No X TBD Date Completed Dec 30, 2013 Justification: the project will involve a wide range and large number of stakeholders, whose appropriate engagement is crucial for the success of the project a participatory and inclusive consultation. Therefore, the project will be carried out a participative, inclusive and systematic way, involving as many stakeholders as possible during the preparation (PPG) and implementation phases. The consultation process will be implemented by the Executing Agency, under the leadership of SEAM, and in the case of indigenous peoples, with the leadership of the INDI. The project will also have the participation of other Ministries, NGOs, academic institutions, and representatives of the civil society which will be key in the present project process, such as: Ministry of the Environment (SEAM), Ministry of Agriculture (MAG), Ministry of Finance (MF), Ministry of Women’s Affairs (MM), Ministry of Industry and Trade (MIC), Ministry of Justice and Labor (MJT), Ministry of Foreign Affairs (MRE), Ministry of Health and Social Welfare (MSPBS), Ministry of Interior (MDI), Ministry of Public Works and Communications (MOPC), Ministry of Education and Culture (MEC), National Institute of Forestry (INFONA), Social Action Secretary (SAS), National Service for Animal, Vegetable and Seed Quality (SENAVE), Meteorology Bureau (DM), National University of Asunción (UNA), Roundtable of Sustainable Finance, Chamber of Paraguayan Agroindustries (CAP), Paraguayan Ranchers Association (ARP), Industrial Group of Paraguay (UIP-private sector), Indigenous Peoples Association (CAPI), Network of Environment NGOs of Paraguay (ROAM), Paraguay Indigenous Institute (INPI), WWF-Paraguay, Instituto de Derecho Ambiental (IDEA), Museum of Natural History London (MNHL), World Land Trust, Private Landholders (Ranchers), Local communities. These stakeholders will be involved from the very beginning and in all stages of the project activities. Gender mainstreaming X Dec 30, 2013 Justification: The III. KEY SAFEGUARD POLICY ISSUES AND THEIR MANAGEMENT 1. Describe any safeguard issues and impacts associated with the proposed project. Identify and describe any potential large scale, significant and/or irreversible impacts: This project is not expected to cause any significant and/or irreversible environmental or social impacts. 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area: N/A 3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts: 3 N/A 4. Describe measures to be taken by the Executing Entity to address environmental and social safeguard policy issues: Indigenous Peoples: the Project Agency does not foresee that the project will create any major social negative impacts on indigenous peoples, such as loss/change of customary rights to land and/or use and access to natural resources or loss of culture and social cohesion; however, to ensure that the project meets CI-GEF Project Agency’s “Indigenous Peoples Policy #4”, the Executing Agency will develop, during of the PPG phase, an “Indigenous Peoples Plan”. The terms of reference will be provided by the CI-GEF Project Agency, who will approve and oversee the implementation of this plan throughout the duration of the project (ESMF pages 5; 53-59). Gender mainstreaming issues: to ensure that the project meets CI-GEF Project Agency’s “Gender Mainstreaming Policy #8”, the Executing Agency will develop, during of the PPG phase, a “Gender Mainstreaming Strategy and Action Plan” that will ensure the mainstreaming of gender issues throughout the project. The terms of reference will be provided by the CI-GEF Project Agency, who will approve and oversee the implementation of this Strategy and Action Plan throughout the duration of the project (ESMF pages 8-9; 73). Stakeholders’ engagement: to ensure that the project meets CI-GEF Project Agency’s “Stakeholders’ Engagement Best Practice”, the Executing Agency will develop and submit, at the beginning of the PPG phase, a “Stakeholders’ Engagement Plan” for the Project Agency’s approval. The Project Agency will oversee the implementation of this plan throughout the duration of the project (ESMF pages 9; 75). 5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people: The consultation mechanisms by each type of major stakeholder will be designed and implemented by the Executing Agency at the beginning of the project preparation phase, and approved and monitor by the Project Agency. IV. PROJECT CATEGORIZATION PROJECT CATEGORY Category A Category B Category C X Justification: the project will not cause or enable to cause any major environmental or social impacts V. EXPECTED DISCLOSURE DATES Safeguard CI Disclosure Date In-Country Disclosure Date Environmental & Social Impact Assessment (ESIA) N/A N/A Natural Habitats N/A N/A 4 Involuntary Resettlement N/A N/A Before Project Implementation Begins (date to be confirmed) Before Project Implementation Begins (date to be confirmed) Physical Cultural Resources N/A N/A Pest Management N/A N/A Indigenous Peoples VI. APPROVALS Signed and submitted by: Vice President GPP: Name Lilian Spijkerman Date Name Miguel A. Morales Date Dec 30, 2013 Approved by: CI-GEF Technical & Safeguards Director: Comments: Account Manager: Name Orissa Samaroo Date Comments: 5