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El Salvador Environmental Services Project

Abstract*

The Environmental Services Project will focus on reducing land degradation, conserving forested areas, reverting marginal agricultural areas to forest, and encouraging more sustainable land use in agriculture. It would create payment for environmental services (PES) mechanisms to provide incentives to hillside farmers and other land users in at least two pilot areas, and could be expanded to three more sites. The objective of the Design and Implementation...

* The project abstract is drawn from the PAD, SAR or PGD and may not accurately reflect the project's current nature

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Development Objective

The project development objectives are (i) to establish legal, institutional and financial arrangements to pilot mechanisms of payment for environmental services, (ii) to document links between land use changes and water services improvements and biodiversity conservation, (iii) to define good practices to replicate, scale up, and sustain PES programs; and (iv) to strengthen the capacity of MAG, MARN, community associations, and NGOs to support long-term development of environmental service markets in El Salvador.

Key Details

Project Details

  • P064910

  • Closed

  • Mark A. Austin

  • N/A

  • El Salvador

  • August 27, 2001

  • (as of board presentation)

    June 2, 2005

  • N/A

  • US$ 12.00 million

  • Ministry of Environment and Natural Resources (MARN)

  • Latin America and Caribbean

  • 2005

  • US$ 10.00 million

  • B

  • Not Applicable

  • December 4, 2006

  • BANK APPROVED

  • January 15, 2013

  • Notes

Finances

Financing Plan (US$ Millions)

No data available.
Financier Commitments
Global Environment Facility (GEF) 5.00
Borrower/Recipient 2.00
International Bank for Reconstruction and Development 5.00

Total Project Financing (US$ Millions)

Product Line IBRD/IDA
IBRD Commitment 5.00
IDA Commitment N/A
IBRD + IDA Commitment 5.00
Lending Instrument
Grant Amount 5.00
Total Project Cost** 12.00

Summary Status of World Bank Financing (US$ Millions) as of July 31, 2025

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No data available.
Financier Approval Date Closing Date Principal Disbursed Repayments Interest, Charges & Fees

Detailed Financial Activity as of July 31, 2025

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No data available.
Period Financier Transaction Type Amount (US$)
Jun 2, 2005 IBRD-73000 Loan Commitment 5,000,000.00

Footnotes

Ratings

IMPLEMENTATION RATINGS

Name Review Date
Overall Safeguards Rating Satisfactory 2006-12-17
Counterpart Funding Satisfactory 2006-12-17
Progress towards achievement of PDO Highly Unsatisfactory 2006-12-17
Procurement Satisfactory 2006-12-17
Overall Implementation Progress (IP) Highly Unsatisfactory 2006-12-17
Project Management Satisfactory 2006-12-17
Financial Management Satisfactory 2006-12-17
Monitoring and Evaluation Satisfactory 2006-12-17

COMPLETION RATINGS

No data available.

INDEPENDENT EVALUATION RATINGS

No data available.

Results Framework

PROJECT DEVELOPMENT OBJECTIVE INDICATORS

INDICATORBASELINECURRENTTARGET
  • PES mechanisms designed for at least two sites for contracting (buying and generating) environmental services in priority areas, including functioning M&E systems.Value02
    DateDecember 1, 2006July 15, 2012
    Comment
  • At least 12,000 ha. under environmental service contracts that contribute to biodiversity consrervation as demonstrated by indicators for vegetation cover, land use practices, and habitat restorationValue012,000 hectares
    DateDecember 1, 2006July 15, 2012
    Comment
  • Increased water services in pilot watersheds measured by reduction of sediment production and transport, biochemical oxygen demand (BOD) and total suspended solids (TSS)ValueTo be determined in baseline studies that will be Reduced sediment, BOD, and TSS compared to baselin
    DateDecember 1, 2006November 30, 2011
    Comment
  • Increased biodiversity conservation in the project sites measured by indicators of landform, ecosystems, and habitats in the dimensions of composition and structure.ValueTo be determined in baseline studies that will be Improvement over indicator values in baseline stud
    DateDecember 1, 2006July 15, 2012
    Comment

INTERMEDIATE RESULTS INDICATORS

INDICATORBASELINECURRENTTARGET
  • PES program is operational in each pilot areaValue02
    DateDecember 1, 2006July 15, 2012
    Comment
  • Contract compliance monitoring establishedValueNone100 percent of PES contracts monitored for complia
    DateDecember 1, 2006July 15, 2012
    Comment
  • 60-80 percent of stakeholders aware of the importance of environmental servicesValueTBD80 percent
    DateDecember 1, 2006July 15, 2012
    Comment
  • Methodologies developed, tested, and implemented to identify and assess environmental services needs of private sector and assessment of landowners environmental services function to provide servicesValueNoneMethodolies implemented and assessments completed
    DateDecember 1, 2006July 15, 2012
    Comment
  • Semiannual learning workshops held with project beneficiaries to review lessons learned and identify good/replicable practicesValue02 workshops per year for duration of project
    DateDecember 1, 2006July 15, 2012
    Comment