Document of The World Bank IMPLEMENTATION COMPLETION AND RESULTS REPORT (IDA-3372) ON A CREDIT IN THE AMOUNT OF SDR 4.3 MILLION

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Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Document of The World Bank IMPLEMENTATION COMPLETION AND RESULTS REPORT (IDA-3372) ON

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Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Document of The World Bank IMPLEMENTATION COMPLETION AND RESULTS REPORT (IDA-3372) ON A CREDIT IN THE AMOUNT OF SDR 4.3 MILLION (US$5.9 MILLION EQUIVALENT) TO THE REPUBLIC OF CAMEROON FOR A Report No: ICR PETROLEUM ENVIRONMENT CAPACITY ENHANCEMENT PROJECT Sustainable Development Department Central Africa Department Africa Region (CAPECE) June 25, 2008 CURRENCY EQUIVALENT Currency Unit = CFA Franc (CFAF) Currency Unit = SDR Unit = CFA Franc (CFAF) US$1 = 651 CFAF (at project appraisal) US$1 = 1.36 SDR FISCAL YEAR January 1- December 31 ABBREVIATIONS AND ACRONYMS AIDS BM CAPECE CCPP CED COTCO CPSP DCA EA ECMG EIA E-MIS EMP FEDEC FOCARFE GNI GCA GOC HIV IAP IDA IEC IPP KPP LPD M&E MIS MINDAF MINEF MINEP MINFOF MINIMIDT MINJUSTICE MINSANTÉ MINT MTR Acquired Immuno Deficiency Syndrome Banque mondiale (World Bank) Cameroon Petroleum Environment Capacity Enhancement Project Chad Cameroun Petroleum Export Project Center for Environment and Development Cameroon Oil Transport Corporation Comité de Pilotage et de Suivi des Pipelines (in English PSMC) Development Credit Agreement Environment Assessment External Control and Monitoring Group Environment Impact Assessment Environment Management Information System Environment Management Plan Federation of Environment and Development Fondation Camerounaise d Actions Rationalisées et de Formation sur l Environnement Gross National Income Groupe de Concertation et d Action Government of Cameroun Human Immuno-Deficiency Virus International Advisory Panel International Development Association Information, Education and Communication Indigenous People Plan Kribi Power Plant Lom Pangar Dam Monitoring and Evaluation Management Information System Ministry of Land Use Affairs Ministry of Environment and Forestry Ministry of Environment and Natural Protection Ministry of Forestry and Wildlife Ministry of Mines, Industry, and Technological Development Ministry of Justice Ministry of Public Health Ministry of Transports Mid-Term Review NCB NGO NOSRP OEEP PDO PNLDAH NOSRP PSMC RELUFA SNH SOFRECO US$ WB WCS WWF National Competitive Bidding Non Government Organization National Oil Spill Response Plan Offset Environment Enhancement Plan Project Development Objective Plan national de lutte contre les déversements accidentels d hydrocarbures National Oil Spill Response Plan (in French PNLDAH) Pipeline Steering and Monitoring Committee (in French CPSP) Réseau de la Lutte contre la Faim (Network for the fight against hunger) Société Nationale des Hydrocarbures Société française de réalisations et d études économiques United States Dollars World Bank Wild life Conservation Society World Wide Fund for Nature Vice President: Obiageli Katryn Ezekwesili Country Director: Mary Barton-Dock Sector Manager: Marjory-Anne Bromhead Project Team Leader: Mohammed Bekhechi ICR Team Leader: Sherif Arif COUNTRY Project Name Petroleum Environment Capacity Enhancement Project Data Sheet A. Basic Information B. Key Dates C. Ratings Summary D. Sector and Theme Codes E. Bank Staff F. Results Framework Analysis G. Ratings of Project Performance in ISRs H. Restructuring I. Disbursement Graph CONTENTS 1. Project Context, Development Objectives and Design Key Factors Affecting Implementation and Outcomes Assessment of Outcomes Assessment of Risk to Development Outcome Assessment of Bank and Borrower Performance Lessons Learned Comments on Issues Raised by Borrower/Implementing Agencies/Partners Annex 1. Project Costs and Financing Annex 2. Outputs by Component Annex 3. Economic and Financial Analysis Annex 4. Bank Lending and Implementation Support/Supervision Processes Annex 5. Beneficiary Survey Results Annex 6. Stakeholder Workshop Report and Results Annex 7. Summary of Borrower's ICR and/or Comments on Draft ICR Annex 8. Comments of Co-financiers and Other Partners/Stakeholders Annex 9. Review of Contract threshold 46 Annex 10. Status of the Action Plan following the Recommendations of the Inspection Panel. 47 Annex 11. List of Documents Consulted 49 Annex 12. List of Persons for the ICR preparation MAP IBRD 30660 A. Basic Information Country: Cameroon Project Name: Cameroon Petroleum Environment Capacity Enhancement (CAPECE) Project ID: P L/C/TF Number(s): IDA-33720,IDA-3372A ICR Date: 06/27/2008 ICR Type: Core ICR Lending Instrument: SIL Borrower: CAMEROON Original Total Commitment: XDR 4.3M Disbursed Amount: XDR 3.7M Environmental Category: C Implementing Agencies: Pipeline Steering and Monitoring Committee Cofinanciers and Other External Partners: B. Key Dates Process Date Process Original Date Revised / Actual Date(s) Concept Review: 04/15/1999 Effectiveness: 03/28/ /28/2001 Appraisal: 07/21/1999 Restructuring(s): 03/24/2004 Approval: 06/06/2000 Mid-term Review: 07/31/2003 Closing: 12/31/ /30/2007 C. Ratings Summary C.1 Performance Rating by ICR Outcomes: Risk to Development Outcome: Bank Performance: Borrower Performance: Moderately Satisfactory Moderate Moderately Satisfactory Moderately Satisfactory C.2 Detailed Ratings of Bank and Borrower Performance (by ICR) Bank Ratings Borrower Ratings Moderately Moderately Quality at Entry: Government: Unsatisfactory Unsatisfactory Implementing Quality of Supervision: Satisfactory Satisfactory Agency/Agencies: Overall Bank Overall Borrower Moderately Satisfactory Moderately Satisfactory Performance: Performance: i C.3 Quality at Entry and Implementation Performance Indicators Implementation QAG Assessments Indicators Performance (if any) Potential Problem Project No at any time (Yes/No): Problem Project at any time (Yes/No): DO rating before Closing/Inactive status: Yes Moderately Satisfactory Quality at Entry (QEA): Quality of Supervision (QSA): None None Rating D. Sector and Theme Codes Original Actual Sector Code (as % of total Bank financing) Central government administration Health Oil and gas Theme Code (Primary/Secondary) Environmental policies and institutions Primary Primary HIV/AIDS Secondary Secondary Law reform Secondary Secondary Pollution management and environmental health Primary Primary Regulation and competition policy Primary Primary E. Bank Staff Positions At ICR At Approval Vice President: Obiageli Katryn Ezekwesili Jean-Louis Sarbib Country Director: Mary A. Barton-Dock Serge Michailof Sector Manager: Subramaniam V. Iyer Cynthia C. Cook Project Team Leader: Mohammed A. Bekhechi Jean-Roger Mercier ICR Team Leader: ICR Primary Author: Mohammed A. Bekhechi Sherif Kamel F. Arif F. Results Framework Analysis Project Development Objectives (from Project Appraisal Document) To develop and establish a national capacity in Cameroon for the environmental management and monitoring of the Chad-Cameroon Petroleum Export Project (CCPEP). ii This capacity will eventually also help Cameroon ensure the environmental sustainability of future projects, programs and policies in the petroleum sector. Revised Project Development Objectives (as approved by original approving authority) No (a) PDO Indicator(s) Indicator Indicator 1 : Value quantitative or Qualitative) Baseline Value Original Target Values (from approval documents) Formally Revised Target Values Actual Value Achieved at Completion or Target Years Preparation of implementing regulations for environmental management of oil sector 12 decrees have been prepared by When CAPECE started, 12 implementing PSMC and the Government did not decrees and endorsed by have a comprehensive regulations for the Government legal and regulatory 1996 agencies framework for Environmental monitoring the environmental Framework Law CCPP. The Decree management because of have been on Environmental lack of implementing identified to be Impact Assessment decrees and regulations prepared and was approved. The for the 1996 framework adopted by the remaining texts are environmental law. Government in the process of being approved. Date achieved 03/31/ /20/ /01/2007 Comments (incl. % achievement) Partially Achieved. The 12 draft decrees have been prepared by international and local law firms and have been subject to a highly participatory review process which involved stakeholders from all governmental agencies. Indicator 2 : Chad Cameroon pipeline operation meets environmental standards and norms. Value quantitative or Qualitative) Norms on air pollution, water When Chad Cameroon pollution, noise, Pipeline operations oil discharges and started, environmental waste have been standards and norms were identified and included in the EMP. monitored by the implementing agency (PSMC). Compliance with agreed norms and standards agreed upon in the EMP. Independent monitoring by ECMG confirms the CCPP's operating company reports, PSMC findings and reports. Date achieved 03/31/ /20/ /30/2007 Comments (incl. % achievement) Achieved in substance. The environment standards and norms included in the EMP of the Chad Cameroun Pipeline were derived from the World Bank Pollution Abatement and Prevention Handbook (PAPH), and best international iii Indicator 3 : Value quantitative or Qualitative) petroleum industry guidelines. The Government of Cameroon develops its capacity to monitor and mitigate the environmental impacts of large infrastructure/energy projects. More than 200 staff have received training connected When CAPECE started, to monitoring and there were no large supervising energy related 50 staff trained in environmental and infrastructure projects various bio social aspects of the under implementation and physical, Chad-Cameroon government agencies did environment and project and other not have skilled staff to social fields large infrastructure monitor these. projects. These are from all of the thirteen ministries involved in the CCPP. Date achieved 03/21/ /20/ /30/2007 Comments (incl. % achievement) Achieved. An oil spill occured on January 15, 2008 and was handled in a timely and professional manner although there were shortcomings in the external communication. Indicator 4 : Poor people in project area are better off once the pipeline operates as before pipeline construction bagan. Value quantitative or Qualitative) Baseline data was incomplete as to the The socio-economic Environmental conditions of the affected management plan populations at the time of did not have Chad-Cameroon Pipeline adequate targets preparation. Major which could be shortcomings were reflected in the related to fishermen Project Appraisal communities in the Kribi Document. areas which were not surveyed. A socio economic study was conducted by PMSC in 2003 and gathered baseline data which were used later in 2005/07 in a study on socio-economic impacts of the pipeline. Date achieved 03/21/ /20/ /30/2007 Comments (incl. % Partially achieved. achievement) Indicator 5 : Information on the environmental and social safeguards implemetation is disseminated to all relevant stakeholders. Value quantitative or Qualitative) EMP of the Chad Cameroon Pipeline prepared by a consultant and agreed upon by Exxon Mobil and the Government and endorsed by the Bank. INformation on environmental and social safeguards is part of the EIA decree which was approved by the Government. Information of environment and social safeguards were disseminated as part of the Environmental Management iv Information System (EMIS), periodic newsletters and annual meetings. Date achieved 10/01/ /30/ /30/2007 Comments (incl. % Achieved achievement) (b) Intermediate Outcome Indicator(s) Indicator Baseline Value Original Target Values (from approval documents) Formally Revised Target Values Actual Value Achieved at Completion or Target Years Indicator 1 : Training of staff on legal and regulatory framework for environmental management Value (quantitative 50 staff trained 200 staff trained or Qualitative) Date achieved 12/31/ /30/2007 Comments (incl. % achievement) Indicator 2 : EMIS developed and installed Value (quantitative or Qualitative) software developed, equipement acquired, Staff trained and EMIS implemented EMIS fully operational including at local level by field based staff Date achieved 12/31/ /31/2006 Comments (incl. % achievement) Indicator 3 : Concertation workshops with NGOs and civil society organizations involved in pipeline monitoring Value (quantitative or Qualitative) Annual meetings to be organized and implemented Two (02) workshops organized by June 30, 2006 and June 30, 2007 Date achieved 06/30/ /30/2007 Comments (incl. % achievement) v G. Ratings of Project Performance in ISRs No. Date ISR Archived DO IP Actual Disbursements (USD millions) 1 12/28/2000 Unsatisfactory Unsatisfactory /27/2001 Unsatisfactory Unsatisfactory /27/2001 Unsatisfactory Unsatisfactory /14/2002 Unsatisfactory Unsatisfactory /18/2002 Unsatisfactory Unsatisfactory /09/2003 Unsatisfactory Unsatisfactory /11/2003 Unsatisfactory Unsatisfactory /10/2004 Unsatisfactory Unsatisfactory /13/2004 Satisfactory Satisfactory /30/2004 Satisfactory Satisfactory /15/2005 Satisfactory Satisfactory /29/2005 Satisfactory Satisfactory /30/2006 Moderately Satisfactory Moderately Satisfactory /24/2007 Moderately Satisfactory Moderately Satisfactory /19/2007 Moderately Satisfactory Moderately Satisfactory /20/2007 Moderately Satisfactory Moderately Satisfactory /12/2007 Moderately Satisfactory Moderately Satisfactory 5.37 H. Restructuring (if any) Restructuring Date(s) ISR Ratings at Restructuring Board Approved PDO Change DO IP Amount Disbursed at Restructuring in USD millions 03/24/2004 S S 1.41 Reason for Restructuring & Key Changes Made vi I. Disbursement Profile vii 1. Project Context, Development Objectives and Design 1.1 Context at Appraisal Country and Sector Background: With a population of 16.1 million (2003), a GNI per capita of US$800 Cameroun has a high incidence of income poverty reaching 40 percent of the total population. The construction and the operation of the Chad-Cameroon Pipeline Export Project to which this project was related, will provide significant income to the Cameroonian economy, totaling about US$500 million over the next 28 years, through transport fees and taxes and through the Government s share of future revenues of the Cameroun Oil Transport Corporation (COTCO). General Sector Issues: The Chad-Cameroon Pipeline (CCPP) was built to facilitate the export of oil from the Doba Oil Field in Chad to international markets through Cameroon. The CCPP involved not only the pipeline itself, but also the construction and operation of an Offloading Facility (FSO) off Cameroon coast near Kribi. Associated environmental and social risks were high also because of the Government's weak ability to respond to and mitigate these impacts. More broadly, natural resources in Cameroon are being rapidly, and in certain cases irreversibly, degraded and the construction of the CCPP was viewed as another potential cause of further degradation. The legal and regulatory framework for environmental management was yet to be completed, and the environment department was a small, ill-equipped and understaffed office within the Ministry of Forest and Environment (MINEF) when the CAPECE was prepared and approved. Ministry of Environment (MINEP) was established after a separation of the environmental mandate from the previous MINEF in Rationale for Bank assistance Sector Issues to be addressed by the Project: The CCPP was equipped with a very comprehensive Environmental Management Plan (EMP). COTCO (a joint-stock company owned by ExxonMobil, Petronas, and Chevron and minority stakes from Governments of Chad and Cameroon) had the primary responsibility for implementing the EMP in order to prevent, avoid, mitigate, compensate and monitor the environmental impacts of the CCPP. Monitoring compliance with the EMP was the responsibility of PSMC (Pipeline Steering and Monitoring Committee) which was established within the SNH (Société Nationale des Hydrocarbures) in 1997 by a Presidential Decree as the Government s steering and monitoring entity for all pipelines to be built in Cameroon. PSMC was established as a one-stop shop to deal with investors and pipeline sponsors.. Main issues addressed by the Project were the weaknesses of: (i) monitoring environmental management activities at the national level for a complex and large project, with a degree of independence from Exxon and SNH; (ii) the legal framework and related capacity of enforcement and monitoring to ensure a sound implementation and monitoring of the EMP of the CCPP; and (iii) the coordination processes among the various stakeholders, including NGOs, and (iv) communication processes and strategy as Government agencies did not have a good track record on public consultation. Furthermore, public participation was not a feature of the environmental management system of Cameroon. The Bank strategy was to assist the Government to strengthen the national capacity for the environmental and social management and the monitoring of the CCPP. The CAPECE would: 1 (i) (ii) (iii) (iv) Strengthen the role and responsibilities of PSMC and clarify the mandates and responsibilities of key agencies involved in the implementation of CCPP s environmental management and compensation plans; Develop capacity for environmental assessment and monitoring, and emergency response in the petroleum sector; Enhance the legal and regulatory frameworks for environmental management at the national level by drafting the needed implementing regulations and strengthening the enforcement capacity; and Promote greater involvement of CCPP-project affected people and civil society in decision-making for sustainable development. 1.2 Original Project Development Objectives (PDO) and Key Indicators (as approved) The development objective of the CAPECE was to develop and establish a national capacity in Cameroon for the environmental management and monitoring of the Chad-Cameroon Pipeline Export Project. This capacity would eventually also help Cameroon ensure the environmental sustainability of future projects, programs and policies in the petroleum sector. Key Indicators were: (i) (ii) (iii) (iv) (v) National environmental standards and norms in the petroleum sector are established; The CCPP operation meets environmental standards and norms; The GOC develops its capacity to monitor and mitigate the environmental impacts of large infrastructure/energy projects, a condition for continued foreign investment in the country; Poor (affected) people in the project area are better off once the pipeline operates than before pipeline construction began; Information on the environmental and social safeguards implementation of the CCPP is disseminated to all relevant stakeholders. 1.3 Revised PDO (as approved by original approving authority) and Key indicators, and reasons /justification. The PDO was not revised. 1.4 Main Beneficiaries The target population for CAPECE comprised (i) people living and conducting economic activities in the vicinity of the pipeline and its marine terminal; (ii) public servants in the petroleum and environmental sectors and (iii) the public interested in knowledge about the environmental and social aspects of the CCPP. 1.5 Original Components as approved: The Project consisted of four components as described in the DCA. Component 1: Strengthening the institutional, regulatory and legal framework consisting of: A. Drafting, dissemination and enforcement of implementing regulations for Environmental legislation; strengthening the enforcement capacity of all agencies involved in the EMP implementation and monitoring of the CCPP, through technical advisory services, training and public information campaigns. 2 B. A Long-Term Vision Study: carrying out of a long-term vision study that would assess the present institutions and their performance, identify and evaluate the options for an effective and sustainable environmental regulatory framework for the petroleum sector. Component 2: Strengthening Coordi
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