Add Fin - Consolidation of Protected Areas System Project SINAP II - Third Tranche

Additional financing for MX GEF Consolidation of Protected Areas System Project - SINAP II (P065988) (TF050311). This is the third tranche for this 6-year project. In the past, work undertaken to prepare this tranches and to submit it to the Bank's Board had been undertaken by our usual SPN budget. However, given that this tranche has required additional work, ENV has agreed to provide us additional budget for preparation, and to count it as a FY07 Board delivery. In order to do this, a separate AIS is needed. The original SINAP II Project Document was approved by the GEF Council for Work Program entry at the November 2000 Council Meeting, and a commitment was made to finance the SINAP II project under an innovative multi-tranched structure with a total final grant amount of $31.1 million. CEO Endorsement for the first US$16.1 million was issued on January 7, 2002. It was agreed that subsequent tranche approvals would be delegated by the Council to the GEF CEO, and would then be presented for World Bank Board approval under streamlined procedures developed specifically for tranched GEF projects. The initial tranche of US$16.1 million included US$7.5 million endowment funds to cover the basic conservation of four protected areas. According to the Project Appraisal Document (Annex 14, page 104) further expansion of the Natural Protected Areas Fund (FANP) endowment to cover eight additional protected areas would follow streamlined procedures. A second tranche of US$2.21 million, to support basic conservation in Sierra de Álamos in the state of Sonora in Mexico, was disbursed on July 1, 2004. Approval of all tranches of the project was delegated by the GEF Council to the GEF CEO, as described in Annex 14 of the originally approved Project Document. From the recipient#s side, the third tranche, in the amount of $7.35 million, has been re-endorsed by the Government as the highest priority for their GEF-4 Biodiversity Program. The World Bank is also requesting approval of the associated Implementing Agency fee of $661,500. Based on the information presented above we would greatly appreciate receiving your approval to the proposed AIS. In a separate memo, I will request your clearance for the Board package for the third tranche of SINAP II in the amount of $7.75m.. The full package will be submitted to the GEF CEO for her approval prior to being submitted to the Bank's Board.