Synergy Report

Synergy in CHT : Peace Dividend January 2002

Volume 1, Issue 2

Inside this Issue: 2. In Memoriam 3. An independent

endorsement 3. Boalkhali revisited 4. What are ESCs? 5. Training an essential

cornerstone 6. Presentation at the UN 7. Interview Conservator

of Forest Chittagong 7. EEC Rep. visits gardens 8. Md Kurshed Alam, an

industiralist with vision 8. Bhatiary BMA or ESC? 9. Joint meeting of Firms 11. Sromojibi Paribesh

Songrokon Firm 12. Empress tree 12. Presentation on ESCs

in Kathmandu 12. Ankur Tree Nursery 13. Current state of Affairs 13. Acknowledgements

Synergy Foundation United Kingdom 66B Forburg Road

Stoke Newington London N16 6HT

Company Νο: 3049283Char. Reg No: 1070650

BOI Reg. No: 9906016-H

Synergy Foundation Bangladesh

The Synergy Foundation is an UK-based charitable company, specialised in mobilising green and ethical investments. Through its subsidiary implementation agency in Bangladesh1 it has since 1994 involved itself in the development of a pro-poor reforestation methodology. This action-research led to the development of a reforestation methodology through which the poor are provided with a sustainable livelihood, and barren hill-lands are again reforested. This approach has been named an Environmental Stewardship Contract or ESC in short. Through this long-term (between 35- & 60 years) tripartite production sharing agreement the seemingly opposite interests between the landless-poor and landowners are enduringly bridged, and a win-win situation for all parties involved is created. This approach is deemed to be so appropriate to the needs of today that this in "Bangladesh invented solution" is at the moment replicated in several other countries in Asia. More details are provided elsewhere in this newsletter. With a promotion capital grant made available by the European Commis-sion, the Foundation obtained permission to start with the introduction of

ESCs to the Chittagong Hill Tracts (CHT). In preliminary consultations with the CHT Regional Council, it was decided to organise a Workshop at Rangamati, to enable people to learn more about the work of the Synergy Foundation, and to discuss the adaptation of the ESC methodology to the existing realities in the Chittagong Hill Tracts. This Workshop under the Chairmanship of the CHT Regional Council was held at the Tribal Cultural Institute in Rangamati on Thursday February 1, 2001. The former Minister of CHT Affairs of the Bangladesh Government, kindly agreed to act as Chief Guest at the Workshop, which was formerly opened by Mr. Jyotirindra Bodhipriya Larma, the Chairman of the CHT Regional Council. Mr. Moni Swapan Dewan, the current

Deputy Minister of the Ministry of CHT Affairs was amongst the workshop participants. The Chakma Circle Chief Barrister Raja Devasish Roy, was also one of the speakers on the occasion. Representatives of all three Hill District Councils, the three Deputy Commissioners, the District Headmen Associations, the District Chairman Associations, the Forestry Department, the BADC, the NGO Sector and other civil society organisations were also invited to participate. Despite the fact that a nation-wide hartal had been called on the day of the Workshop, 70-percent of the invited participants were able to come. At the Workshop a lively and detailed discussion took place on several of the critical issues that were flagged for discussion on the workshops' agenda. All speakers and participants stressed the need to involve besides the Union Councils also the traditional leaders as the Headman and the Karbari in the work of the Foundation. The need to preserve, and possibly enhance bio-diversity was also commonly stressed. After a successful day, the Workshop felt confident to recommend to the CHT Regional Council, to enter into an understanding with the Synergy

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CHT Regional Council

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dation regarding the large-scale introduction of the ESC methodology e CHT2. Consequently, on the 27th of March, a Declaration of Intent was

ergy Conservation Ltd. rkshop report is on request by e-mail available for interested parties the Dhaka office of the Synergy Foundation. <synergy@bangla.net>

entered into between the CHT Regional Council and the Synergy Foundation. Through this document the Foundation undertakes to endeavour mobilising the resources necessary to reforest 25-thousand acres (approx. 40 squire miles) barren hills in the three Hill Districts of the CHT. The CHT Regional Council will encourage peaceful occupancy of the land, and shall encourage private landowners and the Hill District Councils to identify and make available suitable barren hill-land for the replication of Environmental Stewardship Contracts™ in the CHT. The agreement also addresses the institutional relationship between the CHT Regional Council and the Foundation. Through its successful implementation five thousand people will be empowered to become self-employed agro-forestry producers. The Declaration of Intent between the Foundation and the CHT Regional Council prescribes that in case the small landowners themselves provide the physical labour required to reforest their hill-land, that in case of a multi-tree-species production forest configuration the following agreed income division will be applied:

Profit Receiving Party: Fruits & Branches:

Inter-cropping:

Thinned Out Trees:

Grown Trees:

Firm Members:(Third Party) 100 % 90 % 50 % 35 % Union Council: (Witness) Nil 5 % 5 % 5 % Regional Council (Witness) Nil 5% 5% 5% Land title holders(s): (Second Party) Nil Nil 15 % 35 % Synergy Conservation Ltd.: (First Party) Nil Nil 25 % 20 %

Regretfully, two weeks after the workshop was completed, some foreign road-building engineers were kidnapped in the CHT. Though this incident

was eventually resolved, it abruptly halted most foreign aided project activities in the CHT. After the incident, Synergy was informed on inquiry

that all necessary co-operation and support would be provided to the staff of Synergy Conservation Ltd., in the implementation of their work. This suggested that it would be possible to proceed (with caution) with our reforestation activities as planned, despite the unrest associa-ted with the kidnap and the ensuing parliamentary elections. Therefore, on Thursday, 19 July, 2001, Mr. Ushatan Talukder Member of the CHT Regional Council, and Secretary of the PCJSS chaired a simple ceremony in Rangamati, during which the first three

Environmental Stewardship Contracts™ to be implemented in the Chittagong Hill Tracts were formally signed. The Firms formed and incorporated by the people who will look after the trees are: the Synergy Begnachari Shamol Firm, the Synergy Begnachari Kailakhoni Firm and the Synergy Trirotno Firm. Together, these Firms will provide sustainable self-employment for 49 people in the Subolong Union No.1. & Borkal Sadar Union No. 2, in the Borkal Thana of the Rangamati Hill Tracts. Around 220 thousand trees and bamboo’s are now planted by the Firms on 272.25 garden acres hill land. During the signing ceremony, one of the speakers expressed the opinion that this was thus far the only tangible peace dividend the people of Borkal had received since the 1997 Peace Treaty.

Signing Ceremony of the three new Environmental Stewardship Contracts™ at a local restaurant.

Mr. Ushatan Talukder

In Memoriam

The Board of Trustees of the Synergy Foundation. The Board of Directors of Synergy Conser-vation Ltd. The Board of Direc-tors of Synergy Conservation (Nepal) Pvt. Ltd. & The members of the Stichting Vrienden Synergy Foundation Netherlands, mourn the premature departure of Barrister Lutfur Rahman Shah Jahan, Advocate of the Supreme Court of Bangladesh, and Co-

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Founder & Trustee of the Synergy Foundation. Shah died on the 6th of November 2001 at St. Joseph Hospice in London. During its' 38th meeting, the Board of Trustees lamented his death and acknowledged his contributions in grooming the Synergy Foundation from its cradle, especially during the initial conceptualisation stage and with the preparation of the first drafts of the Environmental Stewardship Contracts™. At his request, Shah has been buried in London, besides his dear and beloved wife Munni Rahman.

An Independent Endorsement Financial viability of

Environmental Stewardship Contracts confirmed

In August 1999, the Netherlands Ministry of Foreign Affairs released a study named: “Private Investments in Sustainable Forest Management”. The Directorate General International Co-operation (DGIS) of this Ministry utilised the services of FORM Ecology Consultants bv. and the Netherlands Committee for the International Union for the Conservation of Nature (IUCN) to conduct the study, whose principle objective is to promote private investments in sustainable

forestry management. The study covered five different models, including the Environmental Stewardship Contract methodology developed by the Synergy Foundation. It states that through the social forestry model developed by the Foundation, the short and long term interests of all parties involved are cared for, and attention is given to all aspects of sustainability: ecological, social and economic. Further the study suggests that green investors in Environmental Stewardship Contracts may expect a return on their investment (Internal Rate of Return IRR) of 17 percent. The study states that the anticipated returns are expected to be well above the average returns experienced in the green investment sector. Investments in this model meet all the criteria used by fiscal authorities and market regulators to screen and approve international green investment projects. Therefore the returns of green investors will not be subjected to income and/or capital gain tax. The study commends the Foundation on taking steps to obtain crop insurance to reduce the risks to which the trees are exposed as cyclones, fire, theft, damage by wild animals’ breech of contract etc. This will make investments in Environmental Stewardship Contracts more attractive to foreign green investors. It further says that the model creates sustainable employment for the poor and reduces pressure on the few remaining acres of natural forest. The system provides the opportunity to plant many indigenous types of species and may replace the trend of mono-cultures. People interested to obtain copies of this independent appraisal may contact the Synergy Foundation, or DGIS in the Netherlands.

Boalkhali Revisited Have you ever been to Boalkhali? Chances are remote. If you are not from Bangladesh the chances are even smaller. And to the people of Bangladesh it is perhaps just another tiny local administrative unit located somewhere in southeastern region of the country far removed from the mental horizon of most of those who are at the helm of affairs. What’s so special about Boalkhali? It is here, that just over six years ago a small group of idea chasers coming from different nations took their dynamic concept of Environmental Stewardship Contracts™ into practice on a completely uncharted route.

Barrister Lutfur Rahman Shah Jahan

The Synergy Foundation (SF), is a British not for profit company that introduced the innovative idea of reforesting barren hills in such a manner that environmental considera-tions as well as the commercial interest of the landowners, workers and the investors are all properly taken care of. They called this system an Environmental Stewardship Contract™. (ESC) Their action research was launched on a contiguous plot of fifty acres of hilly land belonging to eight different landowners in the eastern part of the Boalkhali Thana in the Chittagong district. 14 male and 6 female landless workers from the nearby

Before

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Josthopura village were selected as the planters. They were willing to take the necessary risk of replanting empty hills, long forgotten from the communities memory as the most valuable asset in the vicinity. Landowners willingly offered their land because it was not fetching them any return whatsoever anyway. SF was eager to implement their innovative model, which till then was only existing on paper. The ESC enabled all these stakeholders to come together. Through this tripartite legal agreement the landowners pledge tenure rights to the landless workers for sixty years in return for a handsome share of the returns. The workers pledge their labour and constant supervision and security. In return they are entitled to receive tree after-care fees for the first three years, the fruits of the trees, along with the right and credit to inter-crop and a portion of the thinned-out and matured trees. SF provides financial and technical resources and expects a return of twenty five percent of the matured trees.

Six years later, one can see tangible results. From the approach road, while you walk a mile towards the eastern hills an impressive site of a bottle green forest is jutting up in front of you amidst miles of denuded hills covered with only shrubs. That’s not all. Enter the plantation and you meet a dozen or more otherwise ordinary people welcoming you with warmth, joy and cheerfulness. They are the Environmental Stewards who through their hard work have made the idea come to life. Talking to a few of them assures you of considerable improvement in the quality of their life and their enthusiasm and commitment in what they are doing. Over the past six years each member of the group, whilst looking after 5-acres young forest, earned on average around Tk. 1350/- monthly from tree aftercare fees, inter cropping and thinned-out trees. As the trees are getting bigger, the first earnings from the

fruit bearing trees are now also coming. In addition, the Firm members received Synergy's support to construct an earthen dam on the land given in their care, to harvest rainwater and cultivate fish. The Firm itself has also taken lease from a fishpond in the adjacent village. They look forward to the day when matured trees will be harvested fetching a return of approximate Tk. 6.3 million for each family in 20 years time. A total of 87.236 trees of 48 varieties, from fruit to firewood to timber have been planted. Most of the timber plants are more than twenty feet tall now and look pretty well built. The fruit trees have started bearing fruits. The whole garden gives an atmosphere of serene natural beauty as much as rejuvenated life in the animal and plant world and of course the renewed economic activity of a small enterprising community. One wishes looking eastward from the top of one of the garden hills that miles and miles of empty mountain range were reforested in the same way.

What are ESCs?

Background The Synergy Foundation developed a pro-poor reforestation methodology that we called an Environmental Stewardship Contract or ESC in short. Through this innovative tripartite legal-instrument small companies formed by landless families, reforest barren and under-utilised hills in developing countries. These families were earlier unable to interact in a sustainable manner with this hill environment. Though they had the physical ability to work, they lacked legal-title to their immediate environment. And just like the hill-owners, they lacked the financial resources to reforest these hills. The Foundation developed a strategy that bridges this nearly everywhere in de developing world existing gap between the land-rich and the landless-poor.

What do we do? We assist and enable the landless-poor to form micro-agricultural enterprises, which are dully registered as independent and self-governing Partnership Firms. The Firms have a constitution based on co-operative principles. One Firm consists of 20 Partners (read Heads of Families) who jointly plant and look after a 45-hectare plantation. We also identify owners (of hill-land) who lack the physical and financial resources necessary to reforest their land. Jointly with the landless and the landowners, we then enter into long-term (35 to 60-year long) tripartite production-sharing agreement. The landless contribute their labour, the landowners contribute their land, and the Foundation, through its subsidiary implementing agency provides the investment, training and other support necessary to reforest the hills. In Bangladesh the aim is that each participating family looks after 2.25 hectares, a plot large enough to provide sufficient returns to sustain a rural family. In Nepal, where the soil is less fertile, and market access more difficult, each family will look after a 4-hectare plot. The Firms are paid tree-aftercare fees and are provided with inter-cropping loans. The Firms are therefore immediately able to provide an income to the Firm Partners.

After

The income division for a typical ESC in the production forest configuration in Bangladesh is more

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or less as shown on page two of this newsletter. Naturally, other income configurations are also possible. The Foundation is for example now in a position to access excellent lands suitable to cultivate oranges, mangoes, litchis and avocados that will fetch high prices. Already the largest mango-pulp user in Bangladesh indicated that that his company is ready to issue an irrevocable forward sales agreement for nearly any amount of mangoes that we would be able to produce. It is therefore likely that if suitable circumstances continue to exist, that the Foundation will in future get involved in some orchard-type of projects.

What is the vision ? Very early on in its “development journey”, the Foundation realised that the large-scale replication of this beneficent methodology could only be financed through the mobilisation of significant green investments. In 1998 a specialist employed by the International Finance Corporation independently confirmed the validity of the notion that investments in ESCs will pay for themselves. This view was reconfirmed in 1999 by a study conducted for the Netherlands government In itself it’s not remarkable that forestry is profitable. People have been investing in forestry for centuries. The benefits and the need of mankind to invest in forests has been described as early as 150 AD in the Arthashastra1, which is probably the earliest comprehensive manual on the art of state-governance known to mankind. But more recently, in the last century, softwood pine prices are recorded to have risen at a rate of 4.8% annually for more than 87 years. According to the United Nations Food and Agricultural Organisation (FAO), the global demand for wood and wood products is projected to increase by approximately 50% between 1991 and 2010. This does not take into consideration the demands of the emerging markets in Asia, which are big consumers of

wood. In Asia, wood is already often traded above the world market price. So, the fact that the expansion of the ESC methodology can be financed through green investments is not disputed. One could even argue that ESCs are more cost effective than traditional forestry. As the investor in an ESC only contributes a small portion of the total cost of labour and the tree-aftercare and security that the trees need over their entire growth cycle. And normally also no land needs to be purchased or leased. Through ESC’s it won’t cost the investor more than fifteen dollars and a considerable amount of patience to grow a seed into a 20-year old tree, in a multiple species environment which may produce 2½ cubic meter softwood, which has a current market value of approximately US $ 375/-. Trees planted in Boalkhali In the Strategic Plan designed to describe the various steps and securities needed to “package” this investment opportunity in such a fashion that investors will agree to put their hard earned money into it the self-explanatory vision statement goes as follows:

Vision Statement The wide acceptance of Environmental Stewardship Contracts as popular and responsibly managed green investment product, marketed by major financial institutions amongst their clients in industrialised nations. The methodology is popular because it is responsibly and transparently managed, provides above average returns to the investors, landlords and landless alike and is proven to trigger economic growth and environmental conservation in developing countries.

Training an essential cornerstone

Training is the only way of improving ones skills. Therefore, from the very beginning of taking the ESC into practice, training figured prominently in the activities financed by the Foundation. With as over-riding training objective the enhancement and strengthen of the capacity of the Firms to independently manage their affairs. By now all the Environmental Stewards in all the Partnership Firms availed of different types of training. Training services are provided by training and extension workers in association with organisations as the BADC, Forest Department, and with reputed local NGOs as TMSS in Bogra. The training centre facilities of NGOs as the

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Attentive Faces. Firm members being trained at VERC in Savar near Dhaka

1 By Kautilya (Chanakya)

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Village Education Resource Centre (VERC) and Caritas, are rented by Synergy Conservation Ltd. as and when required. The in training specialised Training Task Group Bangladesh (TTGB) provides valuable support in the organisation and management of the on-site Participatory Rural Assessment (PRA) sessions, which are organised as a first step in the process that

leads towards group and Firm formation and

particinformmuch traininFirmscultivservesmatersimultchalleprovidservicnegoti The ftopics• C

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Contract™, role of the local government. • Methods of inter-cropping shade resistant crops

underneath the trees, and suitable crop selection. • Use of legumes to reduce weeds, and protect and

stimulate young-sapling growth. • Prevention and identification of tree pests and

diseases. Appropriate application of fertiliser and (natural) insecticide.

• Skill training for pruning, and thinning-out, tree-seed collection, and compost production, land-

Illiteracy is less of a problem in the CHT

incor-poration.

Thus far training has been provided in the

residential training facilities of NGOs in Bogra, Dhaka & Chittagong. And when viable, Sy-nergy Conserva-tion Ltd. also organised train-ing sessions in which members of all Firms

ipate together. This promotes net-working and ation exchange. Experience tells not to put too stock in the traditional classroom-lecture type of g. In addition, feed-back received from the

suggests that training in for example the ation of shade resistant medicinal-plants only a purpose if access to appropriate planting ial and extension services in the field are aneously provided to the Stewards. The next nge for Synergy Conservation Ltd. will be to e follow-up in areas as processing and marketing es, to ensure that the Stewards are able to ate a fair price for their products.

ollowing list, provides an overview of training touched upon thus far: onducting of meetings, consensus building and ispute resolution and prevention skills. haracteristics of good leaders, benefits of group rmation and group solidarity and group action. enefits of Firm Formation and legal incorpor-tion. Contents, meaning and implication of the irms' Constitution and bylaws. erms and Conditions and obligations of all arties to the Environmental Stewardship

measurement, level terracing of land, bee-keeping and honey collection.

• Soil erosion prevention through terracing and vegetative means (Vetiver grass technology).

• Tree-nursery development and management. • Up-grading of managerial and leadership skills and

active participation of general members in decision making process.

• Training on efficient book keeping, minutes writing and general administration.

• Correct handling and administration of credit. • Skill and strategies for building networks and

alliances.

Training session in progress

Over the years this investment in training has proved very useful. It has helped the Stewards to become more confident, and articulate. It improved their technical capacity in efficient garden management, which in turn helped the Firms to consolidation and acquire a collective vision. They can now independently conduct their annual general meetings, keep accounts and elect their office bearers through secret ballot by themselves. A genuine participatory and transparent management style has infused commitment and strong group-solidarity. It has reduced mistrust and created a sense of belonging and a culture of inter-dependence in and between the families that form the Firms.

Synergy presents the ESC model at the UN in New York

On Tuesday the 25th of April 2000, the Secretary of the Synergy Foundation, Mr. Engbert P.M. Gründemann gave a 20 minutes presentation about the Environmental Stewardship Contract methodology, at a workshop held under the auspicious of the 8th UN Conference on Sustainable Development in New York. The Foundation was invited by a Dutch NGO, called Training session in progress

"Both ENDS" to make this presentation during a workshop on ‘Strategies for Increased Food Security’. After the UN Conference in Rio de Janeiro, the UN Commission on Sustainable Development was formed to monitor and direct the processes of change that were to be triggered after the conference in Rio. The topic for 2000 was sustainable agriculture, land resources, financial resources, trade and investment, economic growth and forests. During this conference “stake-holders” from the global NGO community, trade unions, industry and government delegates met to discuss the concerned issues and possible future course of action. During the conference itself “side-events” are organised by many of the participants to the CSD. Though the workshop was thinly attended it was nonetheless useful for networking and the ESC concept and the ideas behind it were well received.

Interview with Mosharraf Hossain Conservator of Forest, Chittagong Division

"ESC as practiced in several areas in the Chittagong region, is concrete evidence how the denuded hills can be reforested" says Mr. Mosharraf Hossein the Conservator of Forest, of the Chittagong Division. Coming from a senior bureaucrat, this is indeed a seal of approval. He has all the praise for Synergy and its secretary Mr. Engbert Gründemann. A tall, well-built man in his mid fifties is full of passion when he is asked to comment on the Synergy’s reforestation model. He started to recollect his visits to the Synergy gardens. What impressed him most is the harmonious existence of the forest and human habitation. However, he recommends Synergy should be going for even higher tree species diversity. He is busy in his office listening to his subordinate officers complaining how they are at a total loss in restricting either forest encroachment or illegal logging. He neither has the necessary funds nor enough skilled manpower at his disposal to reforest and take care of thousands of hectares of barren hills under his jurisdiction. No wonder, being fully aware of these limitations that he understands the necessity of building partnership with willing investors and would be planters. When suggested, why not turn the present encroachers into Environmental Stewards, he is willing to give it a try provided private agencies as Synergy

take the initiative because the government has very stringent laws against forest encroachers. In such a case the government would be willing to provide the khas hills according to Mr. Mosharraf Hossein. EEC Representative in Synergy gardens

In June 2001, Ms Josephine Kalinauckas 2nd Secretary of the Delegation of the European Commission in Bangladesh visited the Synergy gardens in Bhatiary and Boalkhali areas. She was delighted to see EEC’s assistance has been well utilised. She spent several hours surveying the gardens and talking to the members of different firms about their work, life and vision. She noted the observations that attracted her most.

The Secretary of the Foundation making his presentation at the UN in New York

• The scenic beauty of the garden itself overlooking

the Bay of Bengal and how it stands out from the surrounding empty hills.

• The sincere commitment and matured motivation

of the Environmental Stewards in what they have already and look forward to achieve.

• The remarkable success of human spirit and vision

that has made the ESC into success story. It is probably one among very few practising models that address all aspects of development. It is 100% environment friendly, very lucrative as a commercial investment, redresses poverty by creating employment and demonstrates a harmonious existence between the nature and the human society.

Ms Josephine Kalinauckas

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The Synergy Foundation itself is in the process of designing a unique web-site. The Foundations' Co-Treasurer, in the United Kingdom has taken the initiative to design this site, together with a team of system-analysts and other subject matter specialists of London University. This will not be merely confined to the development of a web-site, but shall also involve the design and introduction of the data management systems to be maintained on the plantations. This step shall greatly increase transparency and acceptability of ESCs amongst investors. Up-to-date information to will be made available. People will be able to check on the Internet which Firm and Steward is looking after their trees. The profit and loss accounts and annual reports of the respective Firms can also be reflected on this site. Up-to-date information about rainfall, tree survival rates, and cubic-volume of the trees and their current world market value can also be provided.

Md. Khurshed Alam An industrialist with a vision

In the developing world where usually the well to do is in a mad rush to make a quick buck by whatever means possible it is rare to find a few among them with a vision. Mr Khurshed Alam and the large business house he belongs to, is one such exception. MEB is a group of companies that manufactures different types of industrial products based in the Chittagong region. Apart from industrial complexes, the group owns large tracts of hilly lands. In 1997 the group joined the Environmental Stewardship Contract as the second party by providing 171 acres of denuded hilly land in Bhatiary. Mr. Alam is one of the directors. A stocky well built man in his early forties while talking to this newsletter correspondent shows the natural flare and confidence of a business executive who is fully aware of his responsibilities of sustaining the environment around him. Following is an excerpt of the interview.

Bhatiary of BMA or ESC?

SN: What made you enter the ESC? Bhatiary is a hill station only ten kilometers north of

Chittagong city, well known for accommodating the impressive Bangladesh Military Academy (BMA) complex on its slopes overlooking the Bay of Bengal. Take the sandy road right beside the academy that winds up through a brick factory across a shallow muddy stream into the adjoining hills and you have entered a full grown forest. Over the last four years Synergy Foundation through its implementing agency Synergy Conservation ltd. has reforested 220 garden-acres of empty hills, which are owned by the MEB Group of Industries. They, along with many others had harvested the naturally grown trees without replanting. As a result it had a detrimental affect on the environment and fetched zero return to the owners. No wonder when Synergy came forward with their unique

KA: Our industries emit considerable amount of carbon in the atmosphere. We are aware it has a detrimental affect on the environment. But we can not close down our industries either. The least we can do is to minimize the damage. So, out of enlightened self-interest we have joined hands with Synergy.

SN: Do you regret that dozens of landless people have settled in your land for next 3 generation?

KA: Not at all. In fact they are taking care of the forest from where we expect to get 35% of the grownup trees. We consider it as a profitable investment as well as taking care of the environment.

SN: How do you see the future of the gardens? KA: We visualize a prospective future. One gets

impressed while visiting the gardens. It is a forest in the making where there was none. We had exhausted the forest resources, now it is time to rebuild it again. I invite all other landlords in the vicinity to come forward and join the ESC or reforest their lands themselves.

Information on the Internet

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Both ENDS is a NGO based in the Netherlands. On the 22nd April 2001, on the occasion of Earth Day, they launched a new web-site, called the ‘Encyclopaedia of Sustainability’. This web-site provides detailed information about viable and people-oriented practices of sustainable land and water management made available by forty carefully selected NGOs from all over the world. The objective of this initiative is to enable development practitioners and other interested parties to obtain information about such practices. The NGOs that agreed to co-operate in this information-sharing venture also agreed to respond to specific queries of the users of this web-site (www.bothends.org). The origin of the Environmental Stewardship Contract methodology is described in detail on this web-site. Just click on “landless and landowners share solutions” and all information becomes available.

People and trees at Bhatiary

ESC proposal the landowners readily agreed. Four years later they have no regrets as explained recently in an interview on page 8 of this newsletter. 62 poor households, 26 of them female-headed from the surrounding villages were selected as Environmental Stewards. Some of the families were recent settlers at Bhatiary. Where they settled after having lost their homes and land in other districts of Bangladesh, due to river erosion. Whilst others are from the locality. For efficient management they are organised into three separate Partnership Firms. All 3 have collectively planted 2,86,918 trees of 41 different varieties. Each member will be given the responsibility to look after five acres of garden. They can inter-crop, harvest fruits and branches, and grow vegetables, bees and livestock that add up to their income on aftercare fee. To top it all they live in the garden that has now turned into a forest. A tiny little hut here on the slope of a hill and a tin shade there just beneath the fast growing Akasmoni and Mangium trees gives the impression of a forest dwelling community in the making. And like any forest dwelling community they are beginning to live in harmony with the forest they live in and derive their livelihood from. They have a common goal- earn their livelihood, taking care of the trees and secure their tenure so that none can evict them off their possession, which is a common phenomenon for the weak and the marginalised. Recently they have built at their own initiative a school for the children of the locality, from their own

resources. From their income they improved their living conditions and installed safe drinking water and sanitary facilities, whilst all houses have electricity. Initially when they were settling in the garden people in the surrounding villages used to scare them with all kinds of hearsay and cautions regarding the hills and their future. They have worked and lived in the gardens for more than four years now. During this period they increased their income substantially from aftercare fees, inter crop and from livestock with small credit provided by Synergy Conservation Ltd. Now they are confident of the work they do and look forward to considerable earnings from thinned out and matured trees in the future. People who used to ridicule them once now want to join them. Yes, they have faced threats and resistance from local thugs and petty politicians but their group cohesion and solidarity helped them overcome these of and on disturbances. Recently the groups held their annual general meeting when, apart from electing new office bearers they resolved many a pressing issue regarding their work and group dynamic. True, Bhatiary today is well known for its BMA. But the model of efficient land and forest management these hardworking ordinary people have developed through living experiment can go a long way in projecting the tremendous potential of an environmentally friendly commercial investment. Bhatiary can well turn into a reference point for green investors globally. It shows that not only barren hills can become rich in forest resources, in the process it can reduce poverty considerably, absorb carbon dioxide from the atmosphere and strengthen the concept of a harmonious peaceful coexistence between the natural world and human habitation. Who knows, maybe one day Bhatiary will become equally well known for its ESC as it is today for the BMA.

Turmeric Inter-cropping at Bhatiary

Joint Meeting of all the Firms in

Northwest Chittagong In late July 2001 the five by Synergy started Firms in Northwest Chittagong held their mandatory annual general meetings. To provide some relaxation and enjoyment in a week full of meetings, the three Firms in Bhatiary hosted a get-together for all Firm members in the region. The event was held under the shade of the 5-year old trees in a festive mood. Representatives of Synergy and the landowners were also present. After an opening speech by Ms Monju Mollick, the Managing Director of Synergy Conservation Ltd. the Chairpersons of each firm briefly presented their previous year report and gave their views about their future progress and fieldwork. Mr. Gründemann, the Asia Regional Representative, and Secretary to the Board of Trustees of the Foundation informed the participants about plans to help the Firms form an Apex-organisation. He pointed out that such an Apex-organisation could play an important role in areas as the provision of credit, and agricultural extension. The establishment of a legal defence fund, and a newsletter could also be amongst the activities of such an Apex

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organisation, which could also have a representative appointed to the Board of Trustees of the Foundation. All participants in the meeting were asked to discuss this idea further internally, and to forward their suggestions and comments about the role and formation of such an Apex organisation, before the end of October to Synergy. After refreshments were served, Mr. Timothy Biswas, the Programme Manager of Synergy Conservation Ltd. introduced the Chief Guest of the proceedings, Dr. Alamghir Mati, Managing Director of Modern Food Products Ltd. and the Modern Herbal Research Garden. Dr. Mati is President of the Bangladesh Homeopathic Medical Association, and was awarded by the Bangladesh Government the important status of "CIP" (Commercially Important Person) in 1993. Before his speech, he had walked through the adjacent plantations and pick-up several samples of valuable medicinal plants. In his speech he praised Synergy Conservation Ltd. for its initiative, and proceeded with giving a series of detailed discourses about the cultivation and trade in medicinal plants and herbs. After a break for mid-day prayers, a chaotic but very tasty kitchuri-bhat was served to nearly 200 people. The people have become quite adept at preparing this delicious dish, in which little meat, and lentils and rice are mixed together. The food is cooked in huge pots and quantities under the trees at the site. Chairs and plates and glasses are rented from a nearby "decorator". During the lunch, two members of the Board of Trustees of the Synergy Foundation arrived from Dhaka. Mr. Ali Ahmed Ziauddin (Zia), and his wife Dr. Nasreen Khundker. After the lunch they were introduced to the participants, and Zia, who is one of the Founding Members of the Foundation was asked to give a speech. In his speech, he painted the significant difference between the past and the present. Before Synergy's intervention, most of the current Firm members had very little to look forward to. Many of them had neither an address nor a house. At best their illegal occupancy and presence was tolerated by the landlord and the people of the locality. Now, 5-years later their existence is legalised. People have a house, sanitation and some even have a television. Their children go to school in the knowledge that they await a bright future, which can be financed by the proceeds of the mature trees their parents worked so hard for to cultivate on the hills. Zia stressed in his fiery speech

that these gains were not earned easily. Various things had gone wrong. Money was stolen, and particularly the first Firm in Bhatiary had to withstand a strong opposition of some local touts. Because of people's determination to remain united and meet their challenge, the homesteads of the Firm members are now situated in a beautiful young plantation, and the people of the Firms have a future to look forward to. A future that can only be assured if the people remain united, and keep their Firms strong, well organised and under the leadership of able and honest people worthy of this important responsibility. After his inspiring speech, the events took a lighter note, as members of the various Firms read some poetry, and sung some songs. A comic about an angry looking Dutch man who climbed the hills in rain or sunshine, and always managed to get his cloths dirty from head to toe by mud, rain or sweat was also displayed amongst much laughter and smirks. The creativity of the people is boundless, as they even came up with a song about a Dutch-man and his Bangladeshi wife, which had been specially composed for the occasion. The various Firm members and their family members interlaced all this with dance performances. Around five in the afternoon, the Firm members of Boalkhali had to leave, which led to the formal closure of the meeting. We left around seven, but the people of the three other Firms were still deeply involved in singing and dancing and the declamation of sketches and poetry. It had been a rewarding day and a stimulating experience to see how well the Firms are managing their affairs, and how confident the people are about their future.

Joint meeting at Bhatiary

School children at Bhatiary

School children at Bhatiary

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Synergy MEB Sromojibi Paribesh Songrokhan Firm

This Firm had its 4th Annual General Meeting (AGM) in July. A critical one, as the AGM marked the beginning of the first year that the Firm will have to function without the secure monthly income that was previously provided as tree-after-care fee. The trees that were planted by the Firm do not any longer require daily attention. They are now well above the average cow or goat-height, and are far less vulnerable than before. The canopy coverage is 100 percent, and it will now only be possible to cultivate shade-resistant plants as turmeric, ginger and passion-flower and back-pepper and pan and mushrooms under the trees. Though the Firm members unhesitatingly acknowledge that they are far better of than before, most of them have now also more dependants to look after then before. As many of their family members came to stay with them after they secured the benefits of Firm membership. When this Firm was formed at first, it suffered a great setback because they had elected a corrupt Chairperson, who stole large sums of money before the other Firm members during an emotional Second AGM disposed of him. Though the second Chairman of the Firm did a better job, he was unable to get the confidence of the not literate Firm members, who felt that the literate Firms members were continuously taking them for a ride. This suspicion was bridged in the third AGM, during which the Firm members elected Ms Rehena Begum, a not literate

fellow Firm member, as their new Chairperson. Ms Rehena turned out to be a very assertive, capable and trusted leader, with a photographic memory for facts and figures. This last fact was aptly demonstrated during the AGM where she revealed a mistake in a by Synergy prepared audited statement of the Firms Accounts. At her insistence, the books were re-checked during the meeting, and this correspondent witnessed that her objections were correct. One out-standing due of one of the Firm members had not been properly recorded. Lots of hard questions were asked during the AGM and Synergy representatives were not spared either. Lengthy discussion ensued on the role of the office bearers, and on how to increase income from inter-cropping, chances of increasing the numbers of fruit growing trees and scope of further credit for livestock. After about 3 hours of debate, often heated most of the issues at hand were settled in a consensual way. This showed the growing commitment and maturity of the partners, more so when they had no qualms about re-electing Ms Rehena again as Chairperson of the Synergy MEB Sromojibi Paribesh Songrokhan Firm for the year 2001-2002 her second term. They voted for her competence and honesty, not for her ability to extend patronage. This is rare in rural Bangladesh.

AGM at Bhatiary

IsoeahiiMowcmwasTsfp

Meetings are followed with rapt attention

Ms Rehena Begum, Chairperson, caught looking overthe shoulder of the Cashier, Mr. Asraful Sorkar

11

n the afternoon, when talking to this correspondent everal Firm members expressed their personal pinions on a variety of subjects. Ms. Rehana the re-lected Chairperson aged 36 and a mother of 5 is happy nd full of grit. When asked, she promptly replied that er first concern would be to increase the Firm’s ncome from inter-cropping and the living conditions n their homesteads. Other Firm members as Matiur,

atin and Jane Alam were happy with their present ccupation but a bit apprehensive about the near future, hen under the full tree-canopy not much inter-

ropping will be possible whilst the trees are not ature enough for harvesting. All four of them along ith few others suggested that Synergy should be more

ttentive to their need for credit in order to be able to tart family based small-scale poultry and livestock. hey believe, this will increase their income ubstantially, given the forest growth all around them eed cost would be minimum, which will reduce cost of roduction.

Synergy Imports “Empress Tree”

Synergy Conservation Ltd, the Bangladesh based implementing agency of the Synergy Foundation recently imported a new tree species, the Paulownia Fortunei, or the ‘Empress’ tree for a small field-trail.

This species is also called the Kiri tree. This deciduous tree is the only arboreal genus of the Scrophulariaceae family, and is indigenous to Vietnam, Cambodia and China. It grows quite rapidly and is currently grown commercially in many parts of China, Brazil USA, Australia and New Zealand. A unique feature of this tree is, it can re-grow from the cut-stump, and harvested 2/3 times in 50/60 years time. Experts predict that Paulownia timber is most likely to sell as a replacement for the increasingly scarce low-density timber of the Meranti and Western Red Cedar. .For this field-trail, a limited amount of tissue cultured saplings were imported from Australia, for which permission was obtained from the plant protection wing of

the Ministry of Agriculture of the Bangladesh government. Complementary samples of this new tree species were given to the National Botanical garden in Mirpur, and to the Forestry Department in Chittagong. The imported saplings were planted in Barisal, Meherpur, and Taingail and Chittagong. Reports about the growth of the saplings are mixed. On plantation sites with plenty of moisture in the soil, the growth has been spectacular. In one year the saplings reached a height of 6 meters and a diameter of 19 centimetres. In drier places and on the hills in Chittagong, the performance has been less impressive thus far.

ESC model presented in a Workshop in Kathmandu The Japanese government has been playing a lead role in the promotion of Biotechnology applications for Reforestation and Bio-diversity Conservation in Asia. Amongst others, this involves the organisation of international workshops in the Asia region. The 8th BIO-REFOR Workshop was organised in November and December 1999 in Nepal, with the Ministry of Forest and Soil Conservation of His Majesty’s Government of Nepal acting as local host and organiser. There were four themes on which papers were presented and discussed by the participants: (1) Man-made Forest, (2) Propagation Techniques, (3) Soil Conditions and Mycorrhiza and (4) Ecological Processes in Forest Rehabilitation. The Synergy Foundation was invited to present to this international audience a paper on its reforestation methodology under the Man-made Forest theme, a presentation that was given by the Foundation’s Asia Regional Representative Mr. Engbert Gründemann on the 29th of November. The presentation was well received, and stood-out in being the only presentation in the entire workshop that focused on how to stimulate reforestation in such a manner that the interests of the poor are also looked after. It is universally acknowledged that the gainful and long-term involvement of the rural poor is a pre-condition for sustainable environmental management. Yet there are few examples of economically viable and sustainable reforestation methodologies that do not reduce the poor to the status of servants and/or make them dependant on patronage extended by NGOs- forestry- or local government officials. During the workshop, the Secretary of the Ministry of Forest and Soil Conservation welcomed the news that the Synergy Foundation decided to adjust and replicate the Environmental Stewardship Contract methodology in Nepal though its implementing agency in Nepal, Synergy Conservation (Nepal) Pvt. Ltd.

Ankur Tree Nursery Firm: A step in the right direction In Bengali ‘Ankur’ means flowering. An appropriate name for an enterprise, that is helping to flower the dreams of dozens of environmental stewards. It is a tree-nursery in Boalkhali, a few miles south of the Synergy garden there. Assured and timely supply of at least fifty different varieties of quality saplings is not an easy task. With this concern in mind, in early 2000, Synergy offered to help a small Partner-ship Firm to set up a tree-nursery desig-ned to cater to the needs of different groups under the Synergy

Secretary of the Ungkur Firm, at recent AGM

1 year old Empress tree

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programme. Synergy provided them credit for capital and operational costs and some primary motivational and technical training. After about a year and half they have already supplied 81 thousand saplings to the Synergy supported Firms and they have another 50 thousand in stock. They have earned an operational profit of Tk. 30.000/- and started to repay their loan to Synergy. The nursery has the capacity to produce half a million saplings a year. With an assured market, the partners (2 male and 3 female) can achieve the full capacity and perhaps also extend their business provided they quickly learn the technique of improving the quality and the nitty-gritty of a commercial operation. Hopefully, in another year’s time they will pick up all the loose ends and prove that Synergy’s investment was a step in the right direction.

Current state of affairs Eight years ago, when the founding members of the Synergy Foundation embarked upon their uncharted route of trying to find practical ways and means to provide landless people with productive access to land, they had no idea where this journey would lead them. Their persistent quest of finding new solutions for old problems eventually led to the development of the Environmental Stewardship Contract™ methodology, as it stand today. The Foundation has through its subsidiary a strong establishment in Bangladesh, where it reforested 650 acres and laid the grounds for a significant expansion of this acreage. A subsidiary in Nepal has also been formed and incorporated, to replicate affairs. Negotiations to mobilise the promotion capital required for the first 1000 hectares in Nepal, are advancing. In addition, we are in the process of starting in South India, where some wealthy local businessman decided to furnish the investment necessary to set-up operations and reforest the first 500 acres. In the Philippines the model is successfully replicated in Kalinga, where the first 24 acres were planted in 1999. Information about our work has been freely shared with any party requesting for it, as the Foundation wants to encourage the wide spread replication of this beneficent and socially relevant reforestation methodology at an as large as possible scale. Recently, the Hong Kong based Association for Sustainable & Responsible Investment, expressed an interest to publish about our work in their e-bulletin, which reaches 2000 in sustainable development

interested investors. The Foundation is confident that with the appropriate support of the insurance, finance and timber-industry it will be possible to realise its objective as formulated in the vision statement on page 5 of this newsletter.

Hills reforested in Boalkhali

The trees grown in these bags will be planted on the barren hills in the background

We know that it is possible to successfully design and administer financial instruments as 30-year long mortgages, to enable people to buy a basically unproductive asset as a house. We have set out to make it possible to design and successfully administer a financial instrument that enables landless people in developing countries to reforest barren land and create sustainable livelihoods for their families and wealth for all stakeholders who agree to participate and support them in this venture. The first steps have been set. In the next edition of this newsletter we hope to be able to report how the first forward sales agreements for trees cultivated through ESCs have been entered into.

Acknowledgements:

This newsletter is published by the Synergy Foundation, with financial support made available by the European Commission. Articles may be reproduced without per-mission provided that the source is credited. The contri- butions to this news-letter by Mr. Ali Ahmed Ziauddin (Zia) are gratefully acknowled-ged. Editor: Engbert Gründe- mann This child will receive a share of

the trees his mother planted

13

Organogram

PurpI

susta

Inco

Board1. D

L2. Ir

FW

Board1. D2. D3. D4. D5. Ir

AuditorPricewaJM The

Stichting Vrienden Synergy Foundation Netherlands

Purpose: Supporting the Foundation’s

Work

of Recommendation: r. G.J.W.Wijers, Chairperson Worldife Fund (WWF, Netherlands) K.F. Wiersum, Senior Lecturer orestry & Rural Development, agening University

Members: rs E.P. Oldenkamp, Chairperson r P. Leeflang, Secretary Treasurer rs A.D. Frugte, Member rs M.J. Vervest, Member E.N. Flach, Member s: terrhouseCoopers N.V. Oostduinlaan 2, 2596 Hague, The Netherlands

Synergy Conservation Ltd. Chairperson & MD Ms Monju Mollick

Role: implementation of strategies & projects

developed by the Foundation

Incorporated in Bangladesh

Synergy Conservation Nepal Pvt. Ltd.

Chairperson & MD: Mr. Jyoti P.Pradhan

Role: implementation of strategies & projects

developed by the Foundation

Incorporated in Nepal

Board of Advisors Synergy Foundation: A.B.M.G. Kibria, Retd. Presidential Advisor, &

Inspector General of Police & former Ambassador .of Bangladesh. President of the Anjuman Mufidul Islam Welfare Society

Synergy Foundation Board of Trustees: 1. Tahrunnessa Abdullah, Chairperson 2. Engbert P.M. Gründemann, Secretary 3. Peter M. Britto, Co-treasurer U.K. 4. Sham Chowdhury, Trustee 5. Ali Ahmed Ziauddin (Zia), Trustee 6. Bert Flach, Trustee 7. Bina Pradhan, Trustee 8. Nazmul Alam Siddiqui Trustee 9. Nasreen Khundker, Trustee 10. Gholam Nabi, Trustee 11. Md. Shahidullah Khan, Trustee

Auditors • Sayer Vincent Chartered Accountant & Registered Auditors, 23

Angel Gate, City Road London EC1V 2SJ United Kingdom • Azad Zamir & Co. Chartered Accountants 2/2 Purana Paltan,

Dhaka-1000 Bangladesh Solicitors: • Sinclair Taylor & Martin, Solicitors 9 Thorpe Close Portobello

Road London W10 5XL • Kamal-ul-Alam, Barrister-at-Law, Advocate, Supreme Court of

Bangladesh, 401/2 New Eskaton, Dhaka, Bangladesh

Synergy Conservation India Ltd.

Under Incorporation in India

Role: implementation of strategies & projects

developed by the Foundation

Synergy Foundation ose:

mplementation of pro-poor & inable land management models

in developing countries rporated in the United Kingdom,

Company No. 3049283 Reg. Charity No. 1070650

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