Environmental Services Project

Abstract*

The Environmental Services Project will increase substantially the development of markets for environmental services in Mexico. The project consists of the following components: Component 1 focuses on developing sustainable financing mechanisms. Component 2 activities support the development and strengthening of payment delivery mechanisms for environmental services. Component 3 supports environmental service providers. The actual flow of payments... Show More

Development Objective

The project development objective is to enhance the provision of environmental services of national and global significance and secure their long-term sustainability. This would be done by strengthening and expanding the national PSAH and CABSA programs and supporting the establishment of local payments for environmental services (PES) mechanisms in selected pilot areas. The objective will be achieved through the following key outcomes and outputs: (i) strengthening the capacity of CONAFOR, community associations, and NGOs to increase flexibility and improve efficiency of existing service provision to support long-term development of the PSAH program in Mexico; (ii) establishing and securing sustainable long-term financing mechanisms; (iii) establishing legal, institutional, and financial arrangements to pilot market-based mechanisms for payment for environmental services; (iv) documenting links between land use changes and water services improvements and biodiversity conservation; and (v) defining good practices to replicate, scale up, and sustain market-based PES programs.

Key Details

Project Details

Project ID
P087038
Status
Closed
Team Leader
Adriana Goncalves Moreira
Borrower 2
N/A

Country
Mexico
Disclosure Date
September 16, 2004
Approval Date
(as of board presentation)
March 29, 2006
Effective Date
October 31, 2006

Total Project Cost 1
US$ 141.56 million
Implementing Agency
N/A
Region
Latin America and Caribbean
Fiscal Year 3
2006

Commitment Amount
US$ 45.00 million
Environmental Category
B
Last Update Date
January 15, 2013
Closing Date
June 30, 2011

Last Stage Reached
BANK APPROVED

Associated Projects
P089171

Notes
1. Total project cost includes funding from World Bank and non-bank sources in US$ millions. Active and Closed projects show current commitments. Proposed (pipeline) and dropped projects show the forecast amount. The commitment amount for projects in the pipeline is indicative and may be modified during the project preparation.
2. Borrower refers to the Borrower of a Loan or Recipient of a Grant.
3. ”Fiscal Year” is the fiscal year in which the project was approved (or dropped if the status is dropped). The World Bank's fiscal year is from July 1 - June 30. For example, a fiscal year of 1996 corresponds to July 1, 1995 - June 30, 1996.

Sectors

Themes

FY17 - Environment and Natural Resource Management

FY17 - Climate change14%
- FY17 - Mitigation14%
FY17 - Environmental Health and Pollution Management15%
- FY17 - Air quality management5%
- FY17 - Soil Pollution5%
- FY17 - Water Pollution5%
FY17 - Environmental policies and institutions28%
FY17 - Renewable Natural Resources Asset Management28%
- FY17 - Biodiversity28%

FY17 - Private Sector Development

FY17 - Jobs100%

FY17 - Urban and Rural Development

FY17 - Rural Development14%
- FY17 - Land Administration and Management14%

Project Map

Interactive Map

Finances

Financing Plan (US$ Millions)

Financier	Commitments
Borrower/Recipient	80.66
Local Sources of Borrowing Country	15.90
International Bank for Reconstruction and Development	45.00

Total Project Financing (US$ Millions)

Product Line	IBRD/IDA
IBRD Commitment	45.00
IDA Commitment	N/A
IBRD + IDA Commitment	45.00

Lending Instrument
Grant Amount	N/A
Total Project Cost**	141.56

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

No data available.

Detailed Financial Activity as of March 31, 2025

Download:

Period	Financier	Transaction Type	Amount (US$)
Aug 15, 2018	IBRD-73750	Loan Repay	705,636.75
Aug 15, 2018	IBRD-73750	Loan Repay	317,468.20
Aug 15, 2020	IBRD-73750	Int Charges	3,145.79
Aug 15, 2020	IBRD-73750	Loan Repay	317,468.22
Feb 15, 2020	IBRD-73750	Int Charges	7,399.12
Feb 15, 2020	IBRD-73750	Loan Repay	705,636.75
Feb 15, 2020	IBRD-73750	Loan Repay	317,468.20
Feb 15, 2020	IBRD-73750	Int Charges	12,066.38
Aug 15, 2019	IBRD-73750	Int Charges	24,132.72
Aug 15, 2019	IBRD-73750	Int Charges	14,317.57
Aug 15, 2019	IBRD-73750	Loan Repay	705,636.75
Aug 15, 2019	IBRD-73750	Loan Repay	317,468.20
Mar 29, 2006	IBRD-73750	Loan Commitment	45,000,000.00
Aug 15, 2016	IBRD-73750	Loan Repay	865,730.60
Aug 15, 2016	IBRD-73750	Loan Repay	849,794.94
Aug 15, 2016	IBRD-73750	Loan Repay	602,116.75
Aug 15, 2016	IBRD-73750	Loan Repay	759,363.06
Aug 15, 2016	IBRD-73750	Loan Repay	705,636.75
Aug 15, 2016	IBRD-73750	Loan Repay	317,468.20
Feb 15, 2016	IBRD-73750	Loan Repay	399,889.62
Feb 15, 2016	IBRD-73750	Loan Repay	865,730.60
Feb 15, 2016	IBRD-73750	Loan Repay	849,794.94
Feb 15, 2016	IBRD-73750	Loan Repay	602,116.75
Feb 15, 2016	IBRD-73750	Loan Repay	759,363.06
Feb 15, 2016	IBRD-73750	Loan Repay	705,636.75
Feb 15, 2016	IBRD-73750	Loan Repay	317,468.20
Feb 15, 2016	IBRD-73750	Int Charges	5,578.46
Feb 15, 2016	IBRD-73750	Int Charges	36,230.82
Feb 15, 2016	IBRD-73750	Int Charges	59,273.22
Feb 15, 2015	IBRD-73750	Loan Repay	849,794.94
Feb 15, 2015	IBRD-73750	Loan Repay	602,116.75
Aug 15, 2014	IBRD-73750	Int Charges	128,712.02
Aug 15, 2014	IBRD-73750	Int Charges	120,663.84
Aug 15, 2014	IBRD-73750	Int Charges	9,257.74
Aug 15, 2014	IBRD-73750	Int Charges	22,313.86
Aug 15, 2014	IBRD-73750	Int Charges	72,461.70
Aug 15, 2014	IBRD-73750	Loan Repay	602,116.75
Aug 15, 2014	IBRD-73750	Loan Repay	759,363.06
Aug 15, 2014	IBRD-73750	Loan Repay	399,889.66
Aug 15, 2014	IBRD-73750	Loan Repay	865,730.60
Aug 15, 2014	IBRD-73750	Loan Repay	849,794.94
Aug 15, 2014	IBRD-73750	Int Charges	94,837.14
Aug 15, 2014	IBRD-73750	Int Charges	87,517.68
Feb 15, 2015	IBRD-73750	Loan Repay	759,363.06
Feb 15, 2016	IBRD-73750	Int Charges	90,098.42
Feb 15, 2016	IBRD-73750	Int Charges	108,597.48
Feb 15, 2016	IBRD-73750	Int Charges	12,494.14
Aug 15, 2015	IBRD-73750	Loan Repay	865,730.60
Aug 15, 2015	IBRD-73750	Loan Repay	849,794.94
Aug 15, 2015	IBRD-73750	Loan Repay	602,116.75
Aug 15, 2015	IBRD-73750	Loan Repay	759,363.06
Aug 15, 2015	IBRD-73750	Loan Repay	705,636.75
Aug 15, 2015	IBRD-73750	Int Charges	102,969.60
Aug 15, 2015	IBRD-73750	Int Charges	120,663.84
Aug 15, 2015	IBRD-73750	Int Charges	10,055.80
Aug 15, 2015	IBRD-73750	Loan Repay	399,889.66
Aug 15, 2015	IBRD-73750	Int Charges	11,156.94
Aug 15, 2015	IBRD-73750	Int Charges	48,307.78
Aug 15, 2015	IBRD-73750	Int Charges	71,127.84
Aug 15, 2015	IBRD-73750	Int Charges	68,069.30
Aug 15, 2016	IBRD-73750	Int Charges	77,227.24
Aug 15, 2016	IBRD-73750	Int Charges	96,531.12
Aug 15, 2016	IBRD-73750	Int Charges	16,033.75
Feb 15, 2016	IBRD-73750	Int Charges	58,345.10
Aug 15, 2017	IBRD-73750	Int Charges	51,484.80
Aug 15, 2017	IBRD-73750	Int Charges	72,398.30
Aug 15, 2017	IBRD-73750	Int Charges	23,709.28
Aug 15, 2017	IBRD-73750	Int Charges	29,172.56
Aug 15, 2017	IBRD-73750	Int Charges	17,765.27
Aug 15, 2017	IBRD-73750	Loan Repay	849,794.94
Aug 15, 2017	IBRD-73750	Loan Repay	602,116.75
Aug 15, 2017	IBRD-73750	Loan Repay	759,363.06
Aug 15, 2017	IBRD-73750	Loan Repay	705,636.75
Aug 15, 2017	IBRD-73750	Loan Repay	317,468.20
Feb 15, 2017	IBRD-73750	Loan Repay	705,636.75
Feb 15, 2017	IBRD-73750	Loan Repay	317,468.20
Feb 15, 2017	IBRD-73750	Loan Repay	759,363.06
Feb 15, 2017	IBRD-73750	Int Charges	35,563.92
Feb 15, 2017	IBRD-73750	Int Charges	38,896.74
Feb 15, 2017	IBRD-73750	Int Charges	12,076.94
Feb 15, 2017	IBRD-73750	Int Charges	64,356.04
Feb 15, 2017	IBRD-73750	Int Charges	84,464.72
Feb 15, 2017	IBRD-73750	Int Charges	18,822.34
Feb 15, 2017	IBRD-73750	Loan Repay	865,730.70
Feb 15, 2017	IBRD-73750	Loan Repay	849,794.94
Feb 15, 2017	IBRD-73750	Loan Repay	602,116.75
Aug 15, 2016	IBRD-73750	Int Charges	24,153.90
Aug 15, 2016	IBRD-73750	Int Charges	47,418.54
Aug 15, 2016	IBRD-73750	Int Charges	48,620.92
Aug 15, 2018	IBRD-73750	Int Charges	48,265.56
Aug 15, 2018	IBRD-73750	Int Charges	18,435.65
Aug 15, 2018	IBRD-73750	Loan Repay	602,116.75
Aug 15, 2018	IBRD-73750	Int Charges	9,724.18
Aug 15, 2018	IBRD-73750	Int Charges	25,742.40
Feb 15, 2018	IBRD-73750	Loan Repay	317,468.20
Feb 15, 2018	IBRD-73750	Int Charges	16,648.04
Feb 15, 2018	IBRD-73750	Loan Repay	849,794.80
Feb 15, 2018	IBRD-73750	Loan Repay	602,116.75
Feb 15, 2018	IBRD-73750	Loan Repay	759,363.06
Feb 15, 2018	IBRD-73750	Loan Repay	705,636.75
Feb 15, 2018	IBRD-73750	Int Charges	11,854.64
Feb 15, 2018	IBRD-73750	Int Charges	19,448.40
Feb 15, 2018	IBRD-73750	Int Charges	38,613.60
Feb 15, 2018	IBRD-73750	Int Charges	60,331.92
Feb 15, 2019	IBRD-73750	Int Charges	12,871.20
Feb 15, 2019	IBRD-73750	Int Charges	36,199.20
Feb 15, 2019	IBRD-73750	Int Charges	17,913.64
Feb 15, 2019	IBRD-73750	Loan Repay	759,363.06
Feb 15, 2019	IBRD-73750	Loan Repay	705,636.75
Feb 15, 2019	IBRD-73750	Loan Repay	317,468.20
Aug 15, 2018	IBRD-73750	Loan Repay	759,363.06
Aug 15, 2013	IBRD-73750	Loan Repay	399,889.66
Aug 15, 2013	IBRD-73750	Loan Repay	865,730.60
Aug 15, 2013	IBRD-73750	Loan Repay	849,794.94
Aug 15, 2013	IBRD-73750	Int Charges	33,470.76
Aug 15, 2013	IBRD-73750	Int Charges	96,615.54
Aug 15, 2013	IBRD-73750	Int Charges	118,546.36
Aug 15, 2013	IBRD-73750	Int Charges	97,241.88
Aug 15, 2013	IBRD-73750	Int Charges	128,712.02
Aug 15, 2013	IBRD-73750	Int Charges	120,663.84
Aug 15, 2013	IBRD-73750	Int Charges	11,332.71
Feb 15, 2014	IBRD-73750	Int Charges	27,892.32
Feb 15, 2014	IBRD-73750	Int Charges	84,538.60
Feb 15, 2014	IBRD-73750	Int Charges	106,691.74
Feb 15, 2014	IBRD-73750	Int Charges	97,241.88
Feb 15, 2014	IBRD-73750	Int Charges	128,712.02
Feb 15, 2014	IBRD-73750	Int Charges	120,663.84
Feb 15, 2014	IBRD-73750	Int Charges	10,547.00
Feb 15, 2014	IBRD-73750	Loan Repay	399,889.66
Feb 15, 2014	IBRD-73750	Loan Repay	865,730.60
Feb 15, 2014	IBRD-73750	Loan Repay	849,794.94
Feb 15, 2014	IBRD-73750	Loan Repay	602,116.75
Feb 15, 2015	IBRD-73750	Int Charges	16,735.40
Feb 15, 2015	IBRD-73750	Int Charges	60,384.72
Feb 15, 2015	IBRD-73750	Int Charges	82,982.50
Feb 15, 2015	IBRD-73750	Int Charges	77,793.50
Feb 15, 2015	IBRD-73750	Int Charges	115,840.84
Feb 15, 2015	IBRD-73750	Int Charges	120,663.84
Feb 15, 2015	IBRD-73750	Int Charges	9,411.18
Feb 15, 2015	IBRD-73750	Loan Repay	399,889.66
Feb 15, 2015	IBRD-73750	Loan Repay	865,730.60

Footnotes

Ratings

IMPLEMENTATION RATINGS

Name	Review	Date
Project Management	Satisfactory	2011-08-02
Monitoring and Evaluation	Moderately Satisfactory	2011-08-02
Overall Safeguards Rating	Satisfactory	2011-08-02
Counterpart Funding	Satisfactory	2011-08-02
Overall Implementation Progress (IP)	Satisfactory	2011-08-02
Overall Safeguards Rating	Satisfactory	2011-08-02
Progress towards achievement of PDO	Satisfactory	2011-08-02
Procurement	Satisfactory	2011-08-02
Financial Management	Satisfactory	2011-08-02

COMPLETION RATINGS

INDICATOR	IMPLEMENTATION COMPLETION & RESULTS REPORT: 12-20-2011
Outcomes	Substantial
Risk to Development Outcome	Negligible
Bank Performance	Substantial
Borrower Performance	Substantial
Government Performance	Substantial
Implementing Agency	Substantial

INDEPENDENT EVALUATION RATINGS

INDICATOR	ICR REVIEW: 05-20-2014	PROJECT PERFORMANCE ASSESSMENT REPORT:
Outcome Rating	Satisfactory	N/a
Risk To Development Outcome	Negligible To Low	N/a
Bank Performance	Satisfactory	N/a
Borrower Performance	Satisfactory	N/a
Government Performance	Satisfactory	N/a
Implementing Agency	Satisfactory	N/a
Icr Quality	Satisfactory	N/a
M&e Quality	Substantial	N/a

Results Framework

PROJECT DEVELOPMENT OBJECTIVE INDICATORS

INDICATOR		BASELINE	CURRENT	TARGET

Stand-alone local PES mechanisms designed for at least two pilot sites for contracting (buying and generating) environmental services in priority areas, including functioning M&E systems	Value	0	4	2
	Date	January 1, 2006	March 17, 2011	December 31, 2010
	Comment		Four mechanisms are being supported and are currently working: Cuenca del Rio Pixquiac, Veracruz; Fabricas de Agua Centro deSinaloa; SAS_Veracruz and Cuenca del Alto Nazas Irritila.	complied with

CONAFOR and INE use state-of-the-art methods to monitor and evaluate data on implementation and impacts of national and local PES mechanisms (see pp 46 and 54 of PAD for detailed aspects to monitor)	Value	State-of-the-art monitoring limited to forest cove	partially completed	Effective system in place to allow assessment of P
	Date	January 1, 2006	March 17, 2011	December 31, 2010
	Comment		Compliance monitoring has been completed, but impact monitoring is still in process.

CONAFOR and other agencies have sufficient capacity and resources to implement multiple, targeted PES mechanisms and scale-up market-based program beyond end of project	Value	CONAFOR currently has capacity to implement single	4 pilot sites in place	4
	Date	June 1, 2006	February 19, 2010	June 30, 2011
	Comment		CONAFOR now has the capacity to manage 4 local markets pilot sites.

Additional hectares under environmental service contracts (financed by EXISTING sources) that contribute to increased hydrological,biodiversity conservation and carbon sequestration services	Value	538,106.86 ha	3.126 million hectares total	at least additional 500,000 hectares
	Date	January 1, 2006	May 31, 2011	June 30, 2011
	Comment		Additional 846,000 hectares in 2011, 2.28 mill. hectares from 2006 until 2010 without Fondos Concurrentes,	complied with

Additional hectares under environmental service contracts (financed by NEW sources) that contribute to increased hydrological, biodiversity conservation and carbon sequestration services	Value	0	88,194 ha	100,000 hectares
	Date	January 1, 2006	May 31, 2011	June 30, 2011
	Comment		From Fondos Concurrentes

Proposals for carbon sequestration projects prepared and submitted to potential buyers	Value	9 existing projects	53	15 new project proposals
	Date	January 1, 2006	May 31, 2011	June 30, 2011
	Comment		53 proposals have been submitted to PRONATURA for its possible commercialization. A project in Oaxaca has managed to commercialize78,821 tons of Carbon in a surface of 2,973 ha from 2008 to 2011.

INTERMEDIATE RESULTS INDICATORS

INDICATOR		BASELINE	CURRENT	TARGET

Financing mechanisms based on local demand in place	Value	0	30 sites	New mechanisms in place in at least 6 sites
	Date	June 30, 2006	March 17, 2011	December 31, 2010
	Comment		Financing mechanisms are in place based on local demand through the Fondos Concurrentes program.

The new area enrolled includes of forests and other natural ecosystems of global biodiversity significance under effective conservation (protection and sustainable management) by landowners	Value		317,265 hectares	200,000 hectares
	Date	January 1, 2006	May 31, 2011	June 30, 2011
	Comment		317,265 ha of biodiversity contracts as of June 30, 2010

PES contracts signed to conserve forests or other natural ecosystems	Value	923	5409	200
	Date	January 1, 2006	May 31, 2011	June 30, 2011
	Comment		5409 contracts current, counting only the hydrological contracts, which are all for forest conservation .

Effective biodiversity conservation in the projects sites measured by vegetation cover and indicator species of conservation interest	Value	0	Tracking tools applied in collaboration with CONAN
	Date	January 1, 2006	May 31, 2011	June 30, 2011
	Comment		Tracking Tools for Biodiversity have been updated to 2010 for the GEF report.

Improved water services in pilot areas measured by appropriate indicators such as mean and peak flows, sediment loads, BOD, and TSS	Value	0	Not completed
	Date	January 1, 2006	March 17, 2011
	Comment		Collaborative work with civil and academic groups in the APROMSAS Copalita Huatulco, Valle de Bravo, Cerro Grande and Cofre dePerote -Pico de Orizaba to develop adequate indicators Other undergoing work include research work to establish baseline andindicatorsto design a hydrological monitoring system.

Financing mechanisms based on local demand in place	Value	0	30 sites	New mechanisms in place in at least 6 sites
	Date	June 30, 2006	May 31, 2011	June 30, 2011
	Comment		Financing mechanisms are in place based on local demand through the Fondos Concurrentes program.

Endowment Fund for biodiversity conservation created and operational	Value	None	Fund created and operational	Fund in place to provide ongoing long-term funding
	Date	June 30, 2006	May 31, 2011	June 30, 2011
	Comment		The Fund was establishes on October 16th, 2008 and has been capitalized in USD 21.5 million.

Substantial increase in the efficiency with which PSAH/CABSA funds are used in at least 75% of area contracted in priority areas	Value	One-size-fits-all approach that fails to effective	90%	Targeted and differentiated application (regionall
	Date	January 1, 2006	May 31, 2011	June 30, 2011
	Comment

New ES contracts in pilot sites emphasize participation by ejidos, communities, and small landholders (less than 200 ha).	Value	None	Current Operating Rules include a 200 ha limit for	75 percent of all new contracts annually
	Date	January 1, 2006	March 17, 2011	December 31, 2010
	Comment

ES providers satisfied with timeliness and quality of technical assistance	Value	TA approach strategy and staffing established in P	78% of all ES providers considered TA received "ex	Community promoters selected in year one, trained
	Date	January 1, 2006	March 17, 2011	December 31, 2010
	Comment		414 ES providers surveryed