Document of The World Bank FOR OFFICIAL USE,ONLY Report No. 3676-MOR KINGDOMOF MOROCCO STAFF APPRAISAL REPORT OF A FORESTRY PROJECT February 12, 1982 EMENA ProjectsDepartment Agriculture Division II This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized
Transcript
Document of
The World Bank
FOR OFFICIAL USE, ONLY
Report No. 3676-MOR
KINGDOM OF MOROCCO
STAFF APPRAISAL REPORT OF A
FORESTRY PROJECT
February 12, 1982
EMENA Projects DepartmentAgriculture Division II
This document has a restricted distribution and may be used by recipients only in the performance oftheir official duties. Its contents may not otherwise be disclosed without World Bank authorization.
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CUkRENCY EQUIVALENTS
Currency Unit Dirham (DH)US$1.00 DH 5.30DH 1.00 US$0.19
WEIGHTS AND MEASUkES
1ihectare (ha) = 2.47 acres
1 kilometer (km) = 0.624 miles
1 kilogram (kg) = 2.205 lbs
1 ton (t) = 2205 lbs
m 3 o.b. = cubic meter of woodover bark (with bark)
m 3 u.b. = cubic meter of wood under
bark (without bark)
m3 s = solid cubic meter of sawn
wood
ADT = Air Dried Ton
ABBREVIATIONS
DEFCS Forestry Department(Direction des Eaux et Forets et de la Conservationdes Sols)
FNF National Forestry Fund(Fonds National Forestier)
MARA Ministry of Agriculture(Ministere de l'Agriculture et de la keforme Agraire
MOI Ministry of Interior(Ministere de l'Int6rieur)
GOVERNMENT OF THE KINGDOM OF MOROCCO
Fiscal Year
January 1 - December 31
KINGDOM OF MOROCCO FOR OFFICIAL USE ONLY
STAFF APPRAISAL REPORT OF A
FORESTRY PkOJECT
Table of Contents
Page No.
I. Introduction ............................................. 1
II. The Forestry Subsector ................................... 1
A. The National Economy ................................ 1B. Place of Forestry in the Economy ................... 2C. Main Constraints to National Forestry Development ... 6D. Financing of the Sector .. 8E. Institutions and Training ........................... 10F. Objectives and Strategies ........................... 12G. Bank Involvement in the Agriculture Sector .......... 12
III. The Project Area .......................................... 14
A. Physical Features .............. 4 .................... 14b. Socio-Economic Features .............................. 15
IV. The Project , , ..... .................... 17
A. Objectives and Summary Description .17B. Detailed Features ...................... 18C. Project Start-up Activities .24D. Project Cost Estimates .24E. Proposed Financing .25F. Disbursement .26G. Procurement .27H. Accounts, Audits and Report ........................ 28I. Environmental Impact .29
V. Project Implementation .29
A. Organization and Management .29B. Staffing .31C. Monitoring and Evaluation .31
This document has a restricted distribution and may be used by recipients only in the performance oftheir official duties. Its contents may not otherwise be disclosed without World Bank authorization.
Page No.
VI. Production, Marketing and Prices .. 32
A. Production .......................................... 32b. Market Prospects .................................... 32C. Prices .............................................. 33
VII. Financial Analysis .35
A. Cost Recovery and Financing of the Sector .35
B. Financial Assessment of Plantation Investments 39
VIII. Benefits and Justification .. 40
A. Benefits and Beneficiaries . . .40h. Economic Analysis . . .41C. Project Kisks and Sensitivity Tests .42
IX. Agreements to be reached and Recommendations . .43
ANNEXES
Annex 1 - Project Costs and Disbursements.Table 1: Project Costs .45Table 2: Estimated Schedule of Disbursements .46
Annex 2 - Selected Documents and Data available inProject File .47
1.01 The proposed industrial reforestation project is the firstcomprehensive Bank investment in the forestry subsector in Morocco anddirected towards helping Government to alleviate some of the developmentconstraints in the forestry subsector. By replanting, improved forestmanagement and technical support the project is expected to increase thesupply of pulpwood for an existing pulpmill and increase its exports ofwoodpulp; to reduce imports by meeting part cf the country's increasingdemand for fuelwood and industrial roundwood; and strengthen the forestryservices in overcoming certain institutional bottlenecks in the sector.The project would be carried out over a five year period.
1.02 The project area selected has relatively favorable climatic andecological conditions for fast growing tree species and has comparativeadvantages in the production of wood products relative to otheragricultural activities. In addition, proximtity to traditional exportmarkets provides Morocco with a good positior to capture an expanding shareof the growing European short and long fiber pulp market.
1.03 The project was identified by a World bank FAO/CP mission in1979. It was prepared by Government in close collaboration with FAO/CP.Preparation was completed in early 1981. This report is based on thefindings of an appraisal mission of Messrs. E. van de Poll, J. P. Chausseand R. Chalk (Bank), and F. Weber and J. Maranda (Consultants) whichvisited Morocco in June 1981.
II. The Forestry Subsector
A. The National EcDnomy
2.01 Morocco has a total land area of 67 million ha and a population of20 million (1980) of which 60% is rural, growing at an estimated rate of3.2% per annum. Per capita GNP was US$740 in 1978. Average GDP growth was7.3% per year in the period 1973-77 through high levels of investment.Because of an increasing debt servicing ratio and widening gap of thebalance of payments, a stabilization program was introduced in 1977 whichreduced investments and imports at the cost of reduced GDP growth andincreased unemployment. As a result GDP has only increased at about 3% perannum since 1977. Details of agriculture in the economy are given in anagricultural sector memorandum of May 1980 (Report 2667a-MOR).
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b. Place of Forestry in the Economy
2.02 Moroccan natural forests including 2.6 million ha of esparto
grass, /I cover around 7.7 million ha, which represents 11.2% of thecountry's total area. About 2.5 million ha of forests and 1 million ha ofesparto grass areas have real production potential. The remaining areas(54% of total), especially in the more arid south, have as prime functionthe protection of soils and water catchments. All natural forests andesparto grass areas belong to the state (Dahir of October 10, 1917). Inaddition there are about 367,000 ha of industrial plantations, mostlyeucalyptus (49%) and coniferous trees (44%). As of 1979, 74% of theseplantations belonged to the state, 17% to collectivities, and 9% to privateindividuals. The latter two categories have mostly been financed fromState funds. Un the basis of recorded wood fiber production in 1978, thecontribution of the forestry subsector to Morocco's agricultural GDP wasestimated at 1.5% and to total GDP at 0.3%. However, forestry's importancefor the country's economy is not adequately represented by recorded fiberproduction. Moroccan forests supply unrecorded but considerable quantitiesof fuelwood to rural populations. Furthermore forest rangelands contributeabout 1,500 million feed units/2 or 18% of total feed requirements to thefodder supply of the national livestock. In 1977 the value of foddersupplied by forest areas was estimated at DH 530 million, four times thevalue of recorded wood fiber production.
2.03 Annual recorded wood fiber prodution shows considerablefluctuations. Official annual figures for the period 1975-1979 aresummarized below but do not fully reflect the actual production of theseproducts, especially fuelwood (see para 2.10):
Source: FAO and Ministere du Plan./a m3 o.b. = 1 m3 of wood over bark (with bark)./b m3 u.b. = 1 m3 of wood under bark (without bark).
Annual domestic production of pulpwood, cork and esparto grassmore than cover domestic consumption and a large proportion is exported.However, annual domestic production covers only 30% of the country's
/1 Esparto grass or alfa is a long fiber grass, used mainly formanufacturing paper, rope and shoes, and for fodder.
/2 Nutritional equivalent of 1 kg of barley.
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requirements for other wood products (15% for sawlogs, 13% for miningtimber) and the balance is imported. Although fuelwood production coversnational demand, it vastly exceeds the annual allowable cut and this is oneof the main factors for decline in the country's forest resources. Thearea under forest is presently declining at a rate of about 20,000 ha/year(para 2.10). In 1979, wood product imports (70% coniferous) amounted toDH 365 million and represented in value 9.8%. of the country's agriculturalimports and 2.5% of its total imports. In -urrert terms. the value -_ we..J
imports increased at an average rate of 16% p.a. during the 1970-77period. In 1978, wood import restrictions vere established and the valueof wood imports fell by 25%. However, between 1978 and 1980, value ofimports again increased at the same average annual rate of 16%. In 1979,exports of wood products amounted to DH 159 million or 6.1% of Morocco'sagricultural exports and 2.2% of its total exports. Pulpwood exportsamounted to DH 90 million (56% of total wood product exports) that of corkproducts to DH 40 million (25%) and that of plywood to DH 14 million(8.8%). The average rate of growth of wood exports' value over the period1970-79 has been 17.4% p.a. in current terms, higher than that ofagricultural exports (7.6% p.a.) or total exports (14.2%). This was dueprimarily to increases in the current value of exports of woodpulp andplywood. However, Morocco's wood product trade balance has beendeteriorating steadily, reaching an estimated deficit of DH 280 million in1980.
2.04 Forestry employment provides around 16.5 million man-days of laborper year and is the main source of income for about 140,000 rural people,most of whom with annual income below the rural absolute poverty levelestimated for Morocco at US$ 270 (in 1980) per capita. Primary productiveactivities (logging and charcoal) provide an estimated 3 million man-daysof work to around 20,000 workers. Forestry administration employspermanently around 2,500 staff members and offers full-time employment on acontractual basis to 1,500 other employees. In addition, governmentactivities in reforestation, infrastructure, soil conservation and forestmaintenance provides on average about 3 million man-days of work per year.The wood processing industries, many of them small scale sawmills orjoineries, employ an estimated 38,000 full-time workers. A major problemin the forestry employment sector at present is the lack of vocationaltraining facilities, particularly for the forest workers and those employedin the wood processing industries which has resulted in stagnation in theintroduction and use of improved forestry equipment and techniques.
Forest Industries
2.05 There are 31 sawmills in the country, mainly in the Casablancaregion and in the kif and Middle-Atlas forest regions. In 1979, theircombined output was around 70,000 m3 (s) L1. In general their equipmentis old and the recovery is low (45%). In addition, there are about 600one-man sawmill operations scattered in rural and urban centers. Fiveenterprises produced 65,000 m3 of woodbased panels in 1979. Five otherenterprises manufacture wooden crates. In 1979, they processed around
/1 m3 s = 1 solid m3 of sawnwood.
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80,000 m3 u.b. of wood and produced 50 million crates, mostly for fruit andvegetable exports.
2.06 The only pulp mill in Morocco (La Cellulose du Maroc) which isefficiently managed is at Sidi Yahia near Rabat in the Kenitra Province.The company was created in 1952. Presently 51/ of its shares are held byGovernment-owned banks and the remainder by foreign shareholders. Duringthe last 6 years major technical improvements amounting to about US$80million have been made to the mill, in order to increase its productioncapacity from 60,000 to 100,000 ADTIL per annum. With the recentimprovements (January 1981) to the mill's evaporators, until thenconsidered to be the major bottleneck, the mill has now expanded itsproduction capacity to 100,000 ADT of pulp per year, corresponding to theprocessing of 345,000 m3 u.b. of eucalyptus wood (para 3.05). During theperiod 1976/79 the mill incurred recurrent financial losses, due to lowproduction levels, depressed international pulp prices and high financialcharges associated with the mills recent investment. However in 1980increased production of 83,000 ADT combined with higher international pulpprices helped the mill to break even financially. The mill's financialposition and profitability are expected to improve further with the millstarting to produce at full capacity and international wood pulp pricescontinuing to increase as projected in para. 6.07. The mill exports 80% ofits production to European countries. The remaining 20% are purchased by 6domestic companies which manufacture paper and paperboard from domesticallyproduced eucalyptus (short fiber) pulp, imported long fiberpulp andrecycled waste paper. Their combined production in 1980 was around 60,000tons or 40% of Morocco's paper consumption estimated at 150,000 tons.
Wood Product Demand
2.07 As can be seen below, per capita consumption of wood products inMorocco is relatively low compared with countries at a similar stage ofdevelopment:
Apparent consumption per 1,000 capita (1975)DevelopingMarket
The present low current consumption together with an expected increase inreal per capita income coupled with a wood products positive incomeelasticity of demand, indicate that Morocco's domestic demand for most woodproducts will grow at an annual rate higher than that of the annualpopulation growth. Using however the conservative assumption of constantper capita consumption, projected demand for roundwood, sawnwood and paperand paper board is expected to increase at least as follows:
/a In '000 m 3 o.b./b Not including fuelwood./c Only 30% of roundwood equivalent to be domestically produced; included under
roundwood.Source: Mission estimates
2.08 For paper and paper board Morocco's consumption is projected toincrease at an average rate of 5.5% p.a., reaching 270,000 tons in 1990 and481,000 tons in 2000.
2.09 keforestation Requirements. In 1970 a Reforestation Plan wasadopted by Government which still forms the basis for Morocco'sreforestation program. On the basis of an analysis of the productionpotentials of the main forest regions and an assessment of future nationalwood product consumption, the Plan proposed the planting during 1970-2000of 662,000 ha representing an annual planting program of 22,000 ha.However the actual achievement has fallen far short to this plan(para 2.15). As a result of the slow pace of the actual replantingprogram, illegal felling and rising demand for forest wood products,Morocco's forest resource is rapidly declining, at an average of about20,000 ha per year. Comparing Morocco's present annual wood productionwith its projected wood demand, the country would now require a minimumannual plantation program of 35,000 ha during the period 1980-2000!i.That would be in addition to the need for fuel wood plantations (para 2.10)and the regeneration of exploited forest areas necessary to maintainexisting resources. This highlights the need for additional plantationswith fast growing species.
2.10 Fuelwood. In volume, fuelwood is by far the most important outputof Moroccan forests. However, current fuelwood consumption estimated atabout 10 million m3 o.b., is met through considerable overexploitation ofexisting resources, as production significantly exceeds the estimatedmaximum annual allowable cut of 3 million m 3 o.b., implying anoverexploitation of some 7 million m3 o.b. per annum. The rate ofexploitation is not expected to increase in the future because increased
/1 Of which: production plantations 20,000 ha (soft wood species 11,000 haand hardwood species 9,000 ha) and protective and recreationalplantations 15,000 ha. Average m.a.i. of new productive plantationsestimated at 8 m3/year/ha. Of existing plantations (360,000 ha) only200,000 are productive plantations.
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use through population growth is expected to be balanced by an increase useof alternative fuel (mainly butagas) as the population becomes moreurbanized. The latest fuelwood demand projections are given below. Theyare based on expected rural and urban population growth of 1.8% p.a. and4.8% respectively, FAU estimates of current fuelwood consumption, and anexpected substitution coefficient into alternative fuels of 40% over the1980 - 2000 period.
Assuming that current allowable cut of existing Moroccan forestswould be maintained until year 2000 - which is unlikely considering thecurrent overexploitation - the satisfaction of the projected fuelwooddemand in 2000 would require the establishment of around 1.0 million ha ofadditional fuelwood plantations by year 2000, an average annual plantationprogram of 50,000 ha, based on an estimated general growth rate of 6 m3o.b. per ha/year under the poorer growing conditions due to lack ofrainfall in most of the country.
C. Main Constraints to National Forestry Development
2.11 To stop the regression of Morocco's forest resources and promotetheir development, several constraints will have to be overcome, most ofthem of an institutional and managerial nature. Four major problems areelaborated below.
2.12 Paucity of Data and Lack of Resource Planning. Presently, onlyvery limited information is available on the location, quality andexploitable volumes of Moroccan forests. The National Forest Inventory,launched in 1976, aimed at providing recurrent stocktaking of the country'sforests over 10 year periods. As of 1980, only 1,100,000 ha (approximately20% of total forest areas) has been subjected to detailed inventory andmapping. Without this knowledge, forest resource planning cannot becarried out. Only 700,000 ha (13%) of Morocco's forest have managementplans. This leads to suboptimal use of existing resources and investmentdecisions. Completion of a first comprehensive coverage of Morocco'sforests is therefore a high priority. In the meantime, less detailed butuseful information could be obtained rapidly through a forest resourcestudy based on satellite imagery, which will be introduced under theproposed project (para 4.15).
2.13 Unsatisfactory exploitation/market:ing system. Under currentpractices, tree stands are auctioned by the Forestry Department of theMinistry of Agriculture to private loggers. The latter, who number around500 for Morocco as a whole, fell and cut the trees and market the wood.They are mostly middlemen with no professional skills in logging and theyrecruit daily unskilled workers paid on a piece work basis. This oftenresults in low valorization of trees. For instance, most holm and cork oakwood production (around 400,000 m3 u.b. year) is transformed into charcoal,whereas a sizeable part could provide higher value sleepers or pit-props,which are currently imported. The current plantation management practicesare also inadequate (i.e. lack of thinnings) and trees are often harvestedwithout regard to the best economic utilization of the wood. This hasresulted in suboptimum utilization of resources as trees are not alwaysharvested according to their best marketable end-product. There is,therefore, a need to train forest workers, to promote professional loggingoperations, and to improve forest exploitat:ion management, a start of whichwill be made under the project (paras 4.17/18).
2.14 Integration of Foresty and Livestock Development. Because ofincreased population pressure on agricultural land, the period spent yearlyby the cattle in forests has been steadily increasing with examples ofsedentarization on forest rangelands. Presently, it is estimated thatabout 1.0 million cows, 3.5 million sheep and 4.0 million goats spend morethan 6 months every year in forests. At the same time and also because ofpopulation pressure, there has been a dilution of traditional authoritiesover collective rangeland management and a gradual abandonment of rangerotation. The growing anarchy presiding in the exploitation of forestrangelands, particularly in natural forest;, has three main consequences(i) a decrease in their productivity; (ii) the prevention of natural forestregeneration; and (iii) the destruction of trees by browsing and lopping.Because of the importance of forest for livestock production (it isestimated that it produces about 35,000 toiis of meat per year or 15% oftotal Moroccan production) and to protect Eorest resources, measures areurgently needed to introduce a rational accion program for dealing with thedual but sometimes conflicting interests between the Forestry Departmentand the local population in the promotion of integrated forestry andpastoral development. Specific measures to reduce the risk of cattleencroachment in the newly established project plantations will be carriedout under the project (para 4.11).
2.15 Insufficient Investment. Morocco's forestry policy aims atreconciliating various interests: increased wood production, harmoniousintegration of livestock and forest development, soil conservation andlarger participation of rural populations in the development of nationalforests with better sharing into the economic benefits from theirexploitation. However Morocco's actual field programs have mainly centeredon the management and conservation of the natural forests, entrusted to thestate. Little resources have been devoted to inventory programs, resourceplanning, plantation programs or soil conservation. During the 1978-80Development Plan, public planned investmenls for the forestry subsectoramounted to DH 205 million or 5.6% of planned investment in agriculture.
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Although the Government's 1970 National Reforestation Plan called for thereforestation of 22,000 ha a year (para 2.09), the 1978-80 Development Planprovided only for plantation of 5,000 ha/year of which 4,000 ha wererealized because of delays in the availability of funds and costescalation. During the same Plan period, none of the planned InventoryProgram was carried out (para 2.12), whereas the preparation of managementplans was reduced from 51,000 ha to 20,000 ha, and soil conservation worksreduced from 17,600 ha to 4,900 ha. However, steps have been taken in the1981-85 Development Plan to redress this situation by more than doubling(increment terms) the annual public forest investments compared with the1978-80 Plan (para. 2.26).
D. Financing of the Sector
2.16 Sources of Funds. Reforestation activities are financed fromseveral sources. Of the presently reforested area, totalling 367,000 ha,about 225,000 ha (62% of total) were financed by appropriations from theGovernment general budget, 55,000 ha (15%) by the resources of the NationalForestry Fund (FNF) (para 2.18), 64,000 ha (17%) by Soil ConservationPrograms and 23,000 ha (6%) by various other sources. Standing trees fromnatural forests and from plantations established by Government on state,private and collective land, are auctioned by the Forestry Department ofMARA (plantations established by private individuals or collectivities withtheir own resources are nearly non-existent). In the case of the sale oftrees standing on private or collective land, the Forestry Departmentrecovers the historical establishment and maintenance costs of theplantation (without interest). The balance goes to the owner of the landor individuals making up the collectivities. In case of the sale of treesgrown on state land, the entire auction price is transferred to the communewithin whose administrative boundaries the land is located. In both cases,however, the buyer has to pay in addition to the basic auction price; (a)an ad valorem 10% tax whose proceeds are transferred to the FNF; and (ii)various fees and taxes amounting to about 8 to 12% of the basic auctionprice, covering administrative selling and recording costs and accruing tothe general budget of the Government. These financing arrangements presentmajor drawbacks discussed in the following paragraphs (paras 2.17/19).
2.17 Forest Revenues and Stumpage Rates. Stumpage rates (value ofstanding tree) for different species have never been systematicallyassessed, but there are indications that current auction prices paid bycontract loggers for some plantation woodlots although set in competitivemarkets are insufficient to pay for the replacement costs of plantations.In 1981 for example, estimated establishment costs of one hectare ofeucalyptus plantations was about DH 3,000, whereas the revenues obtainedfrom clearfelling this hectare was only DH 2,700 /1. This difference ismainly due to the relatively low yields of existing eucalyptus plantations(5 - 6 m3 o.b./ha). Total forest revenues collected from existing
/1 Average standing volume of 60 m3 o.b./ha and clearfelling auctionprice of DH 45/m3 o.b. However in the case of acacia for example,where current unit auction price was DH 180 /m3 o.b., revenues of DH14,000/ha were exceeding the plantation establishment costs of about DH3,000 per ha.
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plantations will remain below plantation replacement costs, unless averageplantation yields and wood product prices increase considerably in thefuture or forest management standards are upgraded (including valorizationof trees) substantially, to improve the value of the standing trees. As afirst step to increase forest revenues, considerable efforts have to bemade to improve the yield and quality of wood fiber per ha by (i) plantingimproved fast-growing species; (ii) using better exploitation techniques;and (iii) improve stand management of the natural forest and plantations.In addition it would be essential to assess and monitor the actual stumpagerates for the various tree species, sothat real stumpage values could beused in monitoring the base price for wocdlot auctioning.
2.18 The National Forestry Fund (FNF) was created by law dated6eptember 12, 1949. FNF resources come from recovery of plantationestablishment and maintenance costs and from the 10% tax on auction prices
(para 2.16). Twenty percent of the Fund's resources are devoted to financeforestry research and experimentation, and 80% to promote reforestation onState, collective and private lands. This is done through two main typesof measures: (i) subsidies in kind to ccllectivities or privateindividuals. An average of 2 million seedlings are distributed free ofcharge annually; (ii) loans in kind and services. Collectivities orprivate individuals enter into a contract with the Forestry Department, bywhich the latter takes control over the use and management of the land fora given period to establish and maintain tree plantations and sell thetrees in due course. Proceeds from the sale are then distributed asmentioned in para 2.16. As only actual historical costs are recovered, thelandowner benefits from a long-term, interest free loan. For example, fora plantation felled after 20 years and assuming a 10% discount rate, FNFrecovers only 15% of the costs incurred. This represents a substantialdrain of the Fund's resources. The FNF tax proceeds have increasedregularly from DH 4.0 million in 1974 to Di 7.0 million in 1980 but aregrossly inadequate to allow the Fund to play a major role in Morocco'sreforestation efforts with current establishment costs (DH 3,000/ha) forproductive plantations.
2.19 State Forests. Prior to 1976, proceeds from the sale of treesfrom state forests accrued to the Government's general budget. The law ofSeptember 20, 1976 organized rural population's participation to forestdevelopment through the creation of National, Provincial and CommunalForestry Councils (para 2.20). The law also redirected the revenues fromstate forests to the communes within whose boundaries the forests arelocated. In turn, the communes should devote at least 20% of the proceedsto investments inter alia into the forestry subsector. Possibleinvestments are in reforestation or development of forest infrastructuresuch as roads, shelters, waterholes and forest rangeland improvement at thecommune's discretion. These arrangements have resulted in a majordiversion of funds from reforestation and it is clear that this 20% formulaplus the current FNF taxation (para 2.18) is inadequate to finance therenewal of the present forest resources. Communes well-endowed in forestresources have generally reinvested very little of their forest revenuesinto reforestation programs, relying on Government budget to finance these
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activities. They have implemented a mining-type of exploitation of forestresources, reaping as quickly as possible high revenues withoutparticipating in the renewal of the resources. Various options which couldbe introduced to improve the level of a more automatic self-financing ofthe sector are described in Chapter VII.
E. Institutions and Training
2.20 The Ministry of Agriculture and Agrarian Reform (MARA) is respon-sible for the overall development of the subsector. It exercises itsresponsibilities mainly through the Forestry Department (Direction des Eauxet Forats et de la Conservation des Sols) (DEFCS) (chart 1). DEFCS isresponsible for the sector planning, including protection and management ofthe forests, plantation programs and supervision of all forestry exploita-tion. The participation and decision making of the local population inboth the formulation and implementation of forest policy has been improvedby the creation in 1976 of Forestry Councils at national, provincial andlocal level. The highest authority, the National Forestry Council has beenset up in MARA. It is chaired by the Minister of Agriculture and consistsof the ministers or representatives of the Ministries of Interior, Finance,Public Works, Commerce, and Justice, the Governors of the forest provincesand representatives of provincial and local authorities (para. 5.02). ThisCouncil is mainly responsible for coordinating all forest programsincluding their financing and defining Government's policy and legislationto facilitate the development of the national forestry resources includinglivestock grazing in the forest areas. The Provincial Forestry Council hasbasically the same function as the National Council but is only involved inmatters dealing with the implementation of provincial forestry programsincluding forest exploitation and sylvo-pastoral development. At locallevel, the Communal Council plays an advisory role, and participates in theorganization of forest related programs within their communal boundariessuch as the auctioning of forest woodlots, the organization of forestgrazing (para. 5.06) and the collection of dead wood. Although it is stilltoo early to measure the effectiveness of these councils, the existingProvincial and Communal Forestry Councils could certainly play a key rolein helping design practical and adequate legislative and administrativeinstruments for the development of the forestry subsector includingpastoral development (paras 5.04/07).
2.21 DEFCS has five technical divisions at headquarters in Rabatconcerned with: (i) exploitation and marketing of wood products includingwood technology; (ii) reforestation and soil protection; (iii) forestinventory and planning including sylvo pastoral development; (iv) inlandfishing and wildlife; and (v) research. At regional level DEFCS isrepresented in all 28 provinces and is attached to the ProvincialAgricultural Services of MARA. The two provincial forestry services ofDEFCS (Kenitra and Khemisset) affected by the project are relatively wellstaffed and will require only a limited number of additional staff to meetthe expanded work program under the project. DEFCS has a staff of 2500 ofwhich 270 managers and enginers, and 1200 junior level technicians.
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Although staffing appears satisfactory, normal operation of DEFCS isgenerally constrained by a shortage of funds. DEFCS is weak in forestinventory and planning while management praci:ices of many field operations,particularly stand management, needs to be improved to increase forestproductivity. In both fields the project wiLl undertake specific measuresto improve this situation (para 4.15)
2.22 Morocco has been engaged in forest :research since 1945. Thesenior research staff are all based in Rabat and are running experimentalplots on a rather limited scale in forest areas throughout the country.IResearch topics presently being covered are silviculture, forest ecology,tree genetics, seed testing, entomology and ]?athology and wood and corkutilization technology. Greater emphasis is however desirable in geneticimprovement, provenance trials, silviculturaL practices through differentmethods of thinnings, rotations, tree spacing, fertilizer use etc, woodtechnology, and utilization, and these will be addressed in this project(para 4.12).
2.23 All formal forestry training and education requirements are met bythe Royal Forestry Training School in Sale for junior (20 graduates peryear) and medium level technicians (20 per year) (respectively 1 and 2 yearcourses) and by the National School of Forest Engineers in Sa16 for Forestofficers (4 year course and about 5 graduates per year). Senior Forestofficers undertake further degree courses at the Hassan II Agricultural andVeterinary Institute. Problems are not foreseen in meeting training off'uture technical staffing requirements. Whal: is totally lacking at presenthowever is DEFCS's capability to direct and carry out in-service trainingand refresher courses for its forestry services personnel in fields such asmodern plantation management techniques, improved silvicultural practices,forest inventory work, equipment maintenance etc. In addition there are nospecialized vocational training centers or courses to train forest workersin improved logging operations and charcoal mLaking. The Project wouldinitiate measures to overcome both of these shortcomings (paras 4.17/18).
2.24 The Ministry of Interior. The Ministry of Interior (MOI) has animportant role in the development of the forestry subsector:
(i) the Provincial Governors who represent MOI have overallresponsibility for development activities in their Provinces, andare responsible for coordinating the operations of the technicalservices including DEFCS;
(ii) the Governors review and approve the decisions of localauthorities, including the communal budget; and
(iii) the MOI, through the directorate of collectivities (Direction desCollectivit6s Locales), has the trusteeship of collective lands.For a successful implementation of plantation and pasturedevelopment as well as an improvement in legislative andadministrative instruments for the subsector, MOI has to play akey role.
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F. Objectives and Strategies
2.25 Government objectives in the forestry subsector, as defined in thefive-year Development Plan (1981-1985), include:
(i) increasing wood fiber production through establishment ofplantations with fast growing species at a rate of 50,000 ha perannum (until year 2000) and by applying a more rational andproductive management and exploitation system of Morocco's forestresources, which would reduce imports of forest related productsand increase exports of wood pulp, cork and alfa;
(ii) maintaining, through improved forest management, the environmentalimpact of forests in relation to soil stability, erosion and watercatchment; and
(iii) control and supply of fodder for livestock by providing improvedsylvo-pastoral management.
2.26 These goals are considered reasonable given the present state ofthe country's forestry resources, wood processing industries andlegislative and administrative instruments. However, development ofMorocco's forestry resources has been slow and are mainly due toinsufficient investment in the sector and other problems, most of whichemanate from lack of planning and management plans (paras 2.11/16).Concerning the lack of investment in the subsector, Government has taken amajor step to improve this situation as the allocation of funds to forestryin the new Plan have been raised to over 8.5% of public investments inAgriculture compared with 7.3% during the 1973-1977 Plan and 3.9% duringthe 1978-80 period. During the 1981-1985 Development Plan, publicinvestments in forestry will amount to DH 893 million (DH 179 million peryear) against DH 213 million during the 1973-1977 Plan (DH 43 million peryear) and DH 205 million during the 1978-1980 Plan (DH 68 million peryear). In respect to the other weaknesses of the subsector, Government isaware of these problems and is willing to remedy this situation, both theproposed Forestry Project and the Bank financed Middle Atlas AgricultureDevelopment Project _- (para. 2.27) are likely to assist in resolvingsome of these problems.
G. Bank Involvement in the Agriculture Sector
2.27 Bank group lending for agriculture in Morocco began in 1965 and todate 14 projects have been undertaken and supported by US$505 millionBank/IDA funds (US$24.0 million in IDA credits). They include fiveirrigation projects; Sidi Slimane (FY65 completed), Sebou I (FY70completed), Souss Ground Water (FY75 completed), Doukkala I (FY76completed) and Doukkala II (FY77). There also have been four agriculturalcredit projects (FY66 completed, FY73 completed, FY77 completed, and FY79)
/1 une major objective of the proposed Bank loan for the Middle AtlasAgricultural Development Project is the integration of wood and fodderproduction.
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an agro-industries and flood control projezt (Sebou II, FY74), four rainfedagricultural development projects (Meknes FY75, Fes-Karia-Tissa FY78,Loukkos FY80 and Middle Atlas FY82); and oie export oriented project(Vegetable Production and Marketing project, FY79). The proposed projectwould be the Bank's first major involvement in Morocco's forestrysubsector, although three rural development projects - Fes-Karia-Tissa(Loan 1602-MOR), Loukkos (Loan 1848-MOR), and the Middle Atlas Project haveimportant forestry components with the objectives of reforestation forerosion control, water catchment protection and sylvo-pastoral development.
2.28 Performance of bank-financed projects has generally been
satisfactory. Performance in irrigation projects has been good onceinitial problems of land distribution, organization delays in constructionand in procurement of irrigation equipment had been overcome. Inadequatecost recovery is the major issue. The impLementation of a recently decreedincrease of irrigation water charges by about 100% will contribute to thesolution of the cost recovery issue. The completion report for the Sebou Iproject, an irrigation project situated in the same region as the proposedForestry Project, was submitted on April 29), 1981. The report stresses theproject's success in institution building and in providing infrastructureto achieve increases in the production of irrigated crops. It alsostresses the importance of extension, the :imely allocation of funds forO&M, as well as the collection of water charges due and the completion ofland reform as a remaining challenge to en3ure achievement of theinvestments's economic and financial potential. Performance of the fouragricultural credit projects has been good. OED reports for three of themare available (Report 2543, June 15, 1979, Report 3248, December 23,1980)11. These reports stress the contribution made by these loans toagricultural development, their success in establishing an efficient creditinstitution and the successful expansion ol credit to small farmers. Theyalso underline the importance of agricultural price policy, extension andinput distribution for improved economic and financial performance of thecredit loans. These issues are being addressed through Bank sector work.The Fourth Agricultural Credit Project has recently run into liquidityproblems because of the 1980/81 drought which resulted in rescheduling offarmers' debts. Adequate measures to deal with these temporary problemshave been taken. In the rainfed subsector, the first project (MeknesFY75), experienced considerable implementation delays due to landredistribution problems, poor preparation of project components,over-optimistic assessment of implementation targets, and inexperience inthe organization and management of rural development projects. TheFes-Karia-Tissa Agriculture Project was designed to minimize organizationand management problems encountered with Meknes and is performing well.The Loukkos project, which has recently become effective has made a goodstart.
/1 The First Agricultural Credit Project was reviewed in OED's Report onAgricultural Credit Programs, Background Paper No. 4.
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2.29 Lessons learned from those projects, both technical andinstitutional, have been taken into account in designing the proposedproject. Start-up delays which have been experienced by most projects inMorocco would be minimized since key project staff have already beenappointed (para 5.01) and since a small pilot mechanized destumping program(para 4.20) is reaching a successful conclusion. Detailed designs,including quantities and specifications for roads and buildings to beconstructed during the first year are available. The proposed project isin line with the Bank's 1978 Forestry Sector Policy Paper in emphasizingthe importance of industrial wood plantations and the crucial role ofmanagement and institutional building for improved management in thedevelopment of the forestry subsector.
III. The Project Area
A. Physical Features
3.01 Location. The project area (Map IBID 15933) covers some 212,000
ha of natural (cork oak) and plantation (eucalyptus, pines and acacia)forests in two provinces (Kenitra and Khemisset). The Mamora forms a largesingle block (134,000 ha) of natural cork oak forest mixed with forestplantations whereas the kharb consisting of about 78,000 ha of forestplantations is dispersed in two separate areas north and south of thealluvial plain of the Sebou River.
3.02 Topography and Soils. The elevation in the project area rangesbetween 25 and 300 m above sea level. The soils in Mamora are homogeneousand consist of sandy pervious soils ranging in depth between 1-5 moverlying rather impermeable clay formations. The area is fairly flat withslopes rarely exceeding 5%. Agricultural potential of these soils for foodproduction is limited, because of lack of soil nutrients. The forest areasin the kharb are located on the fringes of the alluvial plain and are moreundulating than the Mamora forest. In the South, the Rharb consist ofsandy Mamora type soils; in the West the sandy soils are part of recent andconsolidated dune formations, whereas the North and East have largeproportions of gravel mixed with sandy and clay soils. Only a smallpercentage of these soils have good water retention capacity or have fairpotential for agricultural production other than forestry.
3.03 Climate. The moderating influence from the ocean has created asub-humid climate in a band 20 km wide along the coast, while the rest ofthe area inland has a drier sub-arid climate. Annual rainfall decreasesinland, varying between 600 mm along the coast to about 450 mm in the eastof the project area. Maximum mean monthly temperatures range between200C and 370C, while in winter temperatures may drop to minus 50C,with incidents of frost. The climatic conditions in combination with theparticular properties of the soils make the growing conditions in theproject area relatively favorable for relatively fast growing tree species,but less attractive for crop production.
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3.04 Infrastructure. A road network of about 400 km of all weatherplantation access roads exists in the Mamora forest and Rharb area, linkingthese forests with the public road system. The existing forest roads havebeen constructed and maintained by road contractors under the supervisionof DEFCS. This system has been operating efficiently for 10 years.Density of forest roads is low, averaging .40 km/100 ha in the naturalforest of Mamora. However, existing plantations are generally laid-out inblocks of 300 x 300 m, each separated by fire lanes 12 to 30 m wide. Dueto the gentle topography of the area, fire lanes are often used as tracksby four wheel drive vehicles and provide adequate access for plantationmanagement and fire protection. Maintenance of these tracks is carried outby DEFCb on force account, using its own mnotorgrader. In the project area,there are 6 nurseries with a total combined output of about 7 millionseedlings per year. Existing administrative offices and housing areadequate for current level of operations, but will need to be increased tosupport the expanded scale of operations proposed under the project (para4.19).
3.05 In 1980, the pulpmill (para 2.06) produced 83,000 ADT of bleachedhardwood sulfate pulp from eucalyptus and has recently increased itscapacity to 100,000 ADT. To reach full capacity production, the mill'sannual pulp wood consumption would have to be increased from about 286,000m3 u.b. to 345,000 m3 u.b. This increase could be obtained byreplanting about 20,000 ha of present low yielding eucalyptus (5 m3
o.b./ha) with high yielding planting stock (12 m3 o.b./ha, para 4.08).At present the mill purchases its pulp wood requirements from contractloggers who cut eucalyptus wood lots scattered throughout the project areaand beyond, at distances ranging from 5 to 180 km from the mill. Therewould however be sufficient existing eucalyptus plantations in the projectarea within a 50 km radius of the pulpmill, which if properly upgradedwould provide the total wood requirements of the mill at significantlyreduced wood costs.
B. Socio-Economic Features
3.06 Population and Land Tenure. The M4amora area is populated only atthe fringes of the forest. The population of the Rharb has however doubledduring the last 20 years to about 1.2 million people part of which may havebeen caused by the success of the Sebou project (para. 2.28). The forestin the project area is divided into state, collective and private (melk)land. The Mamora forest consists entirely of state land, whereas the Rharbarea comprises 43% state land, 38% collective land and 19% private land.
* Forest areas in the project area are well delimited. While the Governmentis undisputed owner of the state land, people living near forest state landhave grazing rights in these areas together with the right to collect deadwood for domestic purposes. The forest plantations on collective andprivate land are established and managed like forests on state land byDEFCS (para 2.18).
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Land Use and Forest Management
3.07 The project area consists of about 210,000 ha of forests of which82,000 ha in natural cork oak vegetation and about 130,000 ha inplantations, mainly eucalyptus (105,000 ha) and pines (18,000 ha). Theirwood production is generally low, particularly the eucalyptus plantations,which on average have annual yields between 5-8 m3 o.b./ha, about halfthe potential production levels of improved species in this type of soiland climate (para 4.08). In order to make possible efficient exploitationand management, the replacing of degraded natural forests and plantationsof low productivity by high yielding fast growing species is therefore oneof the main priorities in the project area. In 1973, a detailed managementplan for the Mamora forest prepared by DEFCS assisted by foreignconsultants, was introduced, outlining the areas and species to beplanted. DEFCS has already started with the implementation of this Planwhich will be enforced under the project. The existing forest managementin the project area is mainly based on the supply of pulpwood to thepulpmill but a higher value of production would be obtained by allocating alarger share to utility timber, poles and fuelwood from the same forests.This will be possible with improved stand management techniques (i.e.rotation, thinnings, more intensive plant spacing) to be strengthened underthe project.
3.08 Apart from the production of wood products the forest areas arealso used for grazing, particularly those areas which have a degradedforest cover (cork oak) or young tree plantations (eucalyptus, pines,acacia) which still have an open canopy allowing enough sunlight for theproduction of fodder. The Mamora forest has been divided in 10 specificgrazing areas corresponding to each of the 10 tribes who have grazingrights.The productivity of the forest rangeland is however very low due toovergrazing and mismanagement. Forage output varies with the rainfall fromabout 120 to 300 feed units per ha. Fodder production under eucalyptus oracacia plantations is nearly nill, estimated at about 10 to 20 feed unitsper ha.
3.09 Each family is allowed by right a maximum herd for subsistence of8 cattle or 40 sheep. Grazing right holders have to pay a small fee foreach animal above this limit. Although grazing right holders have toregister their herd each year with the local authorities, the actual numberof livestock grazing in the Mamora forest is much too high in relation toavailable fodder resources. In the Rharb area grazing is not regulated.Most young plantations are protected by law against grazing during thefirst 3 to 4 years but, since there is very little natural forest leftwhich can be used for rangeland, temporary grazing restrictions to protectyoung plantations are seldom fully respected. Due to the generally severegrazing pressures on forest lands DEFCS is only allowed by law to close off20% of tribal rangeland/forest during plantation establishment and treeregeneration, to livestock at the same time.
3.10 Agricultural crop production in part of the Rharb plain isintensive since large areas are under irrigated crop production (about70,000 ha). The rural life style is becoming increasingly sedentary. This
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has resulted in a far more aggressive use of grazing areas available in theforests of the project area. Particularly the rangeland in the Mamoraforest is not used any longer for winter grazing only b-t is now usedthroughout the year, resulting in overgrazing and rapidly degradingpastures. Although the deficit in fodder resources in the project area isbeing reduced by increased fodder crop production in the Rharb plain, thesuccess of the proposed reforestation program would also be strengthened ifthe productivity and management of the forest grazing areas were improved.
3.11 Major Constraint to Plantation Development in Project Area. Themain forest development constraint in the project area is related to thereiatively high human and livestock population increase in the area whichhas resulted in overcutting the forest for fuelwood, conversion ofrangeland into agricultural land and increased grazing pressure in theremaining forest areas. The proposed development actions under the projecthave taken these constraints in consideration since the project wouldreplant mainly old plantations (20,000 ha) having a very low annualincremental yield of 5 m3 per ha and which presently do not produce anyfodder for livestock. In respect to the rewly established plantations(10,000 ha) in degraded cork oak forest, w,rhich are presently used forgrazing, pastoral improvements on other existing forest rangeland would bemade to compensate livestock holders for the loss in grazing resulting ofthis reforestation program (para 4.11). The project will also help toalleviate the fuelwood constraints in the project area, by using the stumpsand the balance portion of the production from the proposed plantations forfuelwood.
3.12 A UNDP/FAO project (MOR 73/106), which has successfully studiedtwo tribal rangeland areas in the Mamora forest from 1973-1980, has madespecific proposals for the required improvement of project grazing areasincluding its organization and management. These results would be used inthe implementation of the project pastoral component.
IV. The Project
A. Objectives and Summary Description
4.01 The principle objectives of the project are:
(i) to increase roundwood production through new plantations toprovide short fiber pulpwood to the existing pulpmill at SidiYahia in the Rharb and provide part of Morocco's increasing demandfor construction and industrial timber and fuelwood. Thisincreased production would result in increased exports of pulp andreduced imports of timber; and
(ii) introduce better planning and management techniques for theforestry subsector, which would result in increased productivityof forests as well as supply of forage for livestock.
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4.02 The project is part of a long term plantation program in thecountry (para 2.25). Plantations would be of two types: the first wouldinvolve replanting of old eucalyptus plantations which are either ofunsuitable genetic stock (around 20%) or are already in their third orfourth coppice rotation period with rapidly declining yields (80%), mainlyfor the supply of pulpwood, fuelwood and poles (para 4.04); the secondwould be reforestation with pines, acacia and eucalyptus in degradednatural cork oak areas for the supply of utility timber, fuelwood, poles,tanning bark and some pulpwood (para 4.06).
4.03 The proposed project would consist of:
(i) destumping and replanting of about 20,000 ha of existing
low-yielding eucalyptus plantations in the Mamora and Gharb areas;
(ii) reforestation in the Mamora forest area of about 10,000 hadegraded cork oak forest with 3,000 ha eucalyptus, 3,500 ha Acaciamollissima and 3,500 ha of pines;
(iii) upgrading and constructing of respectively about 140 and 40 km offorest roads and tracks, and maintaining about 500 km of selectedplantation roads over the project construction period;
(iv) pasture improvements on about 2,600 ha;
(v) improving the research, forest inventory/planning and trainingcapabilities of DEFCS;
(vi) carrying out specialized studies including forest inventory,management, exploitation (charcoal) and financing; and
(vii) establishment of a project management unit together withtechnical, administrative and logistical support.
B. Detailed Features
Reforestation and related works
4.04 About 20,000 ha of existing low yielding eucalyptus plantations onState or collective land would be logged, mechanically destumped andreplanted with improved eucalyptus planting stock. Since 50% of thisprogram would be carried out on collective land, assurances were obtainedat negotiations that MUI had received written approval from allcollectivities involved in the destumping program in the project area forreplanting their land with eucalyptus. Destumping will be donemechanically. There are neither technical nor financial advantages tomanual destumping. It costs about DH 3,500/ha (DH 3.5 per stump) andrequires further mechanical soil preparation (deep ploughing) at an averageadditional cost of DH 500/ha. Mechanical destumping costs are estimated atDH 5,500/ha from which must be deducted revenues from sales of stumps ofabout DH 1,000/ha. Moreover, since it takes nearly 400 mandays to manually
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destump one ha, proposed annual destumping programs can only be carried outmechanically as there would be insufficient labor available in the area tocarry out the work within the available period (about 2 million mandays todestump 5,000 ha in 6 to 8 months). The destumping program would becarried out by private contractors financed by the project. The wood fromthe stumps which amounts to about 40 tons per ha would be sold at auctionsto the loggers as part of the wood lots, together with standing trees andimarketed as fuelwood or charcoal. Experiments would be carried out underthe project to establish the most efficient way of splitting these stumpsto facilitate transport and to introduce more efficient charcoal kilns(para 4.18).
4.05 The nursery, field preparation, planting and maintenance programwould be carried out by DEFCS. To meet the increased demand for seedlingsin the project area an additional nursery would be established, which wouldlbring the total number of nurseries in the project area to 7 with a totalannual capacity to 10 million seedlings.
4.06 A further 10,000 ha plantation program would be carried in theMlamora forest on state land to replace the much degraded cork oakvegetation cover, by planting eucalyptus, pines, and Acacia molissima. Incontrast with the mechanical destumping program, with about 900 trees perha this area with only 30 to 40 trees per ha would be suitable for clearingand destumping by hand.
4.07 The combined logging, destumping, land clearing and preparationand plantation program over the 5 year period would be as follows:
4.08 The eucalyptus selected for planting would be Eucalyptuscamaldulensis, (provenance Lake Albacutya). It regenerates from its ownstump following cutting (coppices) and has shown under research conditionsa mean annual increment (m.a.i) in the project area between 17 and 21 m3o.b./ha. Due to the variations in soils and rainfall in the project area,the eucalyptus to be planted under the project is expected to yield anaverage m.a.i. of 12 m3. o.b. It would be harvested every 10 years andwould be allowed to coppice at least twice. The pines selected forplanting would be Pinus pinaster (syn maritimna) from Leiria (Portugal),with an expected m.a.i of 6 mJ o.b./ha. It Would be cut after 30 yearswith thinnings after 15 and 25 years. Acacia mollissima would also be
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planted, cut and destumped after 10 years giving a m.a.i of 8 m3 o.b./haand about 400 kg of dry bark for tanning.
4.09 The plantation establishment, maintenance and managementtechniques proposed are all well proven in both Morocco and other similarecological areas including Southern Europe. Proposed mechanical destumpingtechniques have been tested in Morocco with track type tractors and havebeen found feasible. Nutrient loss caused by these operations appears tobe small, since debris and bark left behind from the wood exploitation isproperly mixed with the soil in the course of the land preparationoperations.
4.10 Roads and Firebreaks. On the basis of the Management Plan (para3.07) 140 km of selected roads will be upgraded to allow year round accessfor standard road vehicles in order to provide better forest management andexploitation. In addition a small new road construction program of 40 kmwill be undertaken in the new plantation areas. Both upgraded and newroads would have minimum design standards compatible with satisfactoryserviceability and would be based on standard 4 m gravel roads withdrainage ditches and culverts as required. Maintenance would be carriedout on about 500 km of selected roads in the project areas aiming atkeeping the roads open for light vehicular requirements. Road constructioncosts (new roads US$19,000/km; upgraded US$14,500/km and maintenanceUS$1,500/km) was based on recent bid documents and contracts for roads inthe project area. The road program would be carried out under the samesystem described in para 3.04. Basic fire protection arrangements alreadyexist in the project area, but will be improved during the project. Newfirebreaks would be constructed according to design standards of existingplantations (para 3.04) which are satisfactory. Because of the flattopography, firebreaks can also serve as access during the dry season whichcompensates for the relatively low density of existing road network (para3.04). Selected firebreaks would be upgraded as access tracks by DEFCS aspart of plantation maintenance operations using departmental labor andequipment. These would bring the overall road track density to about20 m/ha. Special patrols would be put into operation during the high riskseason.
4.11 Pasture Improvement. Blocks of about 100 ha totalling some2,600 ha of degraded cork oak forest would be selected in Mamora forpasture improvement to compensate for the loss in grazing resulting fromthe establishment of 10,000 ha of new plantations on forest range land inMamora (para. 4.06). The program would be carried out at an annual rate ofabout 650 ha starting in PY2. Apart from the intrinsic social and economicmerits of this program, it would also provide an incentive to thecollectivities to cooperate with project staff in the protection of youngplantation stands. Pasture improvements would be based on the findings ofa project (para. 3.12) carried out in Mamora since 1973 by UNDP/FAO andDEFCS and would follow its specific proposals in respect to theorganization, management and technical parameters for improved grazingareas established under this project. Only the forest range of legitimateherds affected by the plantation development program in Mamora would be
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improved. The forest range would be improved by reseeding of the naturalvegetation, seeding of grasses and annual and perennial legumes,fertilization, planting of forest shrubs and the establishment ofrotational and deferred grazing. Investments for fencing has also beenincluded in project costs. It is expected that the present low levelproductivity of these ranges would be increased 3 to 4 fold. Mostimportant would also be the control of stocking rates and the organizationof the legitimate pastoralists into grazing associations, who would beresponsible for the maintenance of the improved pastures (para 5.06). Dueto lack of technical local expertise, two man-years of technical assistanceare included in the project (para 5.07) to help with the implementation ofthis component.
4.12 Research and Technical Management. A number of applied researchdevelopment efforts will be undertaken by the research division of DEFCS toprovide practical guidelines for the improvement of some forest managementoperations. The program would concentrate on;
(i) studies on production and yields cf existing plantations;
(ii) increasing tree volume and growth through genetic improvement,vegetative propagation, use of feitilizer and improvement ofsylvicultural practices (thinnings, tree spacing, rotations etc.);and
(iii) technical and economic assessment of improved wood utilization and
its economics, including charcoal making;
4.13 Resource Management. The research program would closely monitor
project results and assist in reviewing anc formulating forest managementplans for the project area in Rharb and Manmora with the objective of betterrationalizing forest exploitation by earmarking specific forest areas forspecialized management of plantations for pulpwood for the pulpmill andother areas for the production of utility timber and other wood demands(paras 3.05 and 3.07). Although the realization of this goal is a longterm proposition, assurances were obtained at negotiations that a forestmanagement plan for the project area would be established. The plan wouldrationalize land use and fiber production and would introduce specializedsylvicultural practices adapted to different end uses. The plan would beavailable for review by the Bank by December 31, 1983 and would be put intoeffect, taking into account the Bank's comments, if any, not later thanJune 30, 1984. Disease and insect control have not caused any majorproblems in the project area. Although the cork oak has been affected bythe gypsy moth, no serious defoliating problems have been. reported in theexisting eucalyptus plantations. Future pest activity will however bemonitored by the project, and short courses in pest identification andmanagement control will be introduced by D].FCS in the proposed in-servicetraining programs.
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4.14 Technical Research. The genetic improvement of eucalyptus can beconsiderably increased if propagated by rooted cuttings selected fromexceptionally fast growing parent trees (cloning). However this techniquehas one inherent risk in that it has not the genetic diversity which isimportant in resisting diseases, drought, frost etc. Vegetativepropagation must therefore be based on a wide range of parent materialstock which is not yet available. The project would continue with thepresent technique of propagation from seed, but would at the same timedevelop and select a wide range of parent stock so that rooted cuttings ona large scale can be produced during the latter part of the projectperiod. Present fertilizer trials in Morocco have indicated a positiveresponse in the rate of wood fiber production. However the specific rateand time for optimum fertilizer application together with the resultingm.a.i. have not yet been determined. The project will therefore continuethese fertilizer trials and carry out economic and biological analysis toevaluate the precise benefits. The application of fertilizers is notincluded in the project, but funds would be allocated to the project areaby Government if the evaluation proves positive and warrants systematicapplication of fertilizer. A possible technical alternative to theproposed mechanical destumping is chemically killing the tree stumps andplanting between the stumps. Although sprouting (coppicing) of the stumpscould thus be eliminated, this technique is as yet untested. Majorquestions are insufficiently resolved to warrant recommending this methodsuch as (i) the number and costs of chemical sprayings and techniquesrequired to kill the stumps; and (ii) extent of stumps and roots limitingannual mechanical maintenance operations, and percentage of loss in annualtree growth in the new planting caused by impediments during root establish-ment. Since with further research this technique could become a viablealternative to mechanical destumping in the future, it will be furtherstudied under the project's applied research program, and possible harmfulecological side effects monitored.
4.15 Forest Inventory and Planning. The project would include a forestresource study based on recent satellite imagery which is considerednecessary for the management and planning of Morocco's forests. It wouldbe carried out during the first project year and would complement theNational Forest Inventory (para 2.12). In addition, DEFCS's capacity inphoto interpretation and physical planning in the "Division du domaineforestier" would also be strengthened by providing and training 4additional staff.
4.16 Technical Assistance. The project would provide a total of 68man-months of short-term technical assistance. In addition, two man-yearsfor long-term consultants would be required to assist in the initialimplementation of the grazing component (para 5.06). Short-term technicalassistance would be made for up to 29 man-months of specialistconsultancies in various areas relating to applied research, nurserytechniques, silvicultural practices and forest management includingpreparation and evaluation of bidding documents for the destumping program(para 4.20), on a needs basis agreed between the Government and the Bank.
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In addition the project would provide 39 man-months of consulting servicesto assist the project and DEFCS to carry out studies in relation to forestmanagement plan of the project area (8 man-months) (para 4.13), forestinventory and planning (8 man-months) (para 4.15), financing and costrecovery of the sector (6 man-months) (para 7.05), technical manpower andtraining requirements of the sector (17 man-nonths) (paras 4.17/18). Draftterms of references for technical assistance consultants and activities aregiven in the project file. During negotiations assurances were obtainedthat DEFCS would be responsible for preparing detailed terms of referenceand that all consultants would be employed on terms and conditions and withexperience and qualifications acceptable to the Bank.
4.17 Training. There is an important need for improving the trainingcapability of the sector, but a detailed study of training requirements isneeded to devise an effective in-service training program for DEFCS and forthe training of forestry workers and people engaged in small scale woodiprocessing industries. This study should lead to the formulation of asubproject which would establish vocational training centers for forestworkers and other related wood production activities for which interest hasalready been shown by some donor countries. Assurances were obtained atnegotiations that a study on technical manpower and training requirementscovering the scope and detail acceptable to the Bank would be completed nolater than June 30, 1983 and that, after consultation with the Bank, thefindings and recommendations of the study--including particularly theorganization and responsibilities of in-service training for DEFCS--would be implemented no later than December 31, 1983. Provision has beenmade under the project for 28 man months training fellowships for forestryofficers to be utilized in line with the present priorities and therecommendations to be made by the proposed study.
4.18 The forest economy and research divisions of DEFCS would carry outa study which would investigate various ways to improve the efficiency ofcurrent harvesting practices and charcoal-making. The study would mainlyrely on the results obtained from monitoring the operations of 2 or 3groups of forest workers who would be employed by DEFCS under force accountto cut and log some wood lots using improved techniques, undertake themechanical splitting of eucalyptus stumps and test the output andefficiency of some modern charcoal kilns to be introduced by the project.Although a few forest exploitation and loggiig cooperatives exist inMorocco they are not yet very efficient and there are none in the projectarea. The study would therefore also determine appropriate steps toestablish a forest exploitation and logging cooperative among forestworkers in the region which would include its organization, activities andfinancing. If findings of this study are positive one or two pilot loggingcooperatives would be established with the assistance of DEFCS (Divisioneconomique), which has already developed several cooperatives in otherparts of Morocco. This would allow the forestry workers, members of acooperative to secure value added through wood product marketing currentlyonly accruing to their usual employers who a:re predominantly merchants andmoney lenders. The establishment of these cooperatives could however only
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be promoted realistically once DEFCb has established its capability totrain forest workers in technical and organizational matters. Assuranceswere obtained at negotiations that the study would be completed by December31, 1983 and sent for review to the bank. After taking into account theBank's comments the recommendations of the study will be implemented.
4.19 Administrative and Logistical Support. The Project would provideoffices at TIFLET and 13 houses for project personnel. In addition 23light vehicles, seven 5-ton trucks and one grader for forest tracks'maintenance would be purchased.
C. Project Start-up Activities
4.20 Several project activities would be carried out by the DEFCS priorto project effectiveness: destumping, raising of seedlings and planting ofthe destumped area. Provision has been made for up to US$1.5 million ofretroactive financing for the destumping activities which would take placebetween October 1981 and June 1982. Since experience in large scalemechanized destumping contract operations is lacking, about 1,850 ha of atotal of 20,000 ha will be mechanically destumped in 1981/82 in relativelysmall bid packages of 200 ha each so that contractors can demonstratemechanized destumping techniques. The written approval for destumping andplantation reestablishment has been secured for concerned collectivities.It would also provide the project with more accurate cost estimates of thedifferent operational approaches and would help to develop more appropriatetechnical specifications and contract standards for future internationaltenders. The monitoring of these operations will be carried out by theproject manager who is already in place (para 2.29).
D. Project Cost Estimates
4.21 Total estimated project costs during the five-year developmentperiod are estimated at DH 345.0 million (US$65.1 million) of whichDR 145.5 million (U6$27.5 million), or 42% would be foreign exchange. Costestimates include an estimated DH 123.6 million of taxes and duties. Basecost estimates are based on prices obtained during appraisal, updated toend 1981 prices. Physical contingencies included in the project costestimates are 15% for civil works and 10% for equipment and operatingcosts. The allowance for expected price increases has been calculated onboth local and foreign base costs plus physical contingencies. Estimatedprice increases for local cost are 11% for 1981, 10% for 1982, 9% for 1983and thereafter and for foreign costs of 9% in 1981, 8.5% in 1982, 7.5% for1983/85 and 6% for 1986. Total contingencies calculated on the foregoingbasis are estimated at 30% of total costs, or 44% of baseline costs. Theaverage costs of consultant services are estimated at US$10,000 perman-month (including travel and subsistence). Details of projects costsare presented in Annex 1, Table 1 and summarized below:
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Project Cost Estimates
Foreign
Components Local Foreign Total Local Foreign Total Exchange------DH Million----- -----… U$ Million - %
4.22 The proposed Bank loan of US$27.5 million to the Kingdom ofMorocco would cover 65% of total project costs net of taxes, equivalent tothe foreign exchange costs and would include a Bank front-end fee ofUS$500,000 equivalent of 1-1/2 percent of the amount of the Loan. Asummary of the proposed financing plan by major expense category is shownbelow:
Proposed financing Plan(US$ million)
IBRD Government Total
Plantation Investments 21.2 29.3 50.5Construction of Roads 2.6 2.6 5.2Buildings 0.4 0.8 1.2Vehicles and Equipment 0.9 0.8 1.7Management and Support bervices 1.1 3.8 4.9Technical Assistance and Training 0.8 0.3 1.1
Total Project Costs 27.0 37.6 64.6
Front End Fee on Bank Loan 0.5 - 0.5
Total Financing required 27.5 37.6 65.1
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4.23 The bank loan would be made to the Government for a term of 17years, including a 4-year grace period, at the interest rate prevailing at
the time of board presentation. Retroactive financing in an aggregateamount not exceeding Ub$1.5 million would be authorized for the destumpingprogram carried out since October 1981 in the project area.
F. Disbursement
4.24 The proposed Bank loan of US$27.5 million would be disbursed oversix years (1982-1987) and would finance:
Category Amount Disbursement(US$ million) (M)
I. Civil Works
a) Mechanical Destumping 19.5 60% of totalOperations expenditures
b) Road Construction and 2.5 50% of total
Rehabilitation expenditures
c) Houses, Offices and 0.4 35% of totalbuildings expenditures
II. Vehicles and Equipment 1.1 100% of foreignexpenditures and65% of localexpenditures
III. Studies, Consultants and Overseas 0.8 100% of foreignTraining expenditures and
75% of localexpenditures
IV. Unallocated 2.7
V. Fee 0.5
Total 27.5
4.25 Disbursements for Categories I to III would be made after receiptof full documentation. No disbursements would be made for nurseryestablishment, pastoral improvements and research or for tree planting androad maintenance which is mainly carried out by small private contractorsor on force account. An estimated schedule of disbursements is summarizedbelow and detailed in Annex 1, Table 2. The schedule of disbursements isbased on actual disbursements of Bank projects in Morocco.
4.26 Procurement would be carried out by DEFCS under the direction ofthe project manager. In accordance with Moroccan administrativeprocedures, final procurement choices would be approved by DEFCS forcontracts up to DH 500,000 (approx. US$100,000), whereas contractsexceeding DH 500,000 would be referred to the Minister of MARA forapproval. Project works would be undertaken by private contractors formechanical destumping, tree planting, road development and other civilworks. Nursery establishment, pastoral improvement, research includingimprovements on wood utilization wouiu generally bc undertaken by DEFCSitself by force account.
4.27 The largest contracts would be those related to mechanicaldestumping amounting to a total of US$32 million and road developmentvalued at a total of Ub$5 million. Except :or the 1,850 ha of destumpingcarried out in 1981 (para 4.20), destumping contracts would be made on thebasis of international competitive bidding CICB) in accordance with Bankguidelines. Since experience has shown on existing Bank-financed projectsthat small road construction contracts do not attract foreign roadcontractors, due to the competitiveness of Local road contractors and highmobilization costs for foreign road contracl:ors in respect to therelatively small size of contracts, road construction would be carried outby local competitive bidding (LCB) for contiracts below US$2.0 million, inaccordance with procedures acceptable to the Bank. However, foreigncontractors are not precluded from LCB bidding. Contracts for roads overUS$2.0 million, would be awarded on the basis of ICB. It is expected thatonly one contract may exceed US$2.0 million. The others would be lessbecause of the scattered location of the wo:rks. Construction of houses andbuildings, which are scattered throughout the project area, valued atUS$1.2 million would be awarded on the basis of LCB procedures. Sufficientnumber of construction firms both local and foreign are established inMorocco to assure competitive prices for civil works. Other projectworks; nursery establishment, planting operations and maintenanceincluding road maintenance, fire protection, research and pastoralactivities, would be individually small, with works scattered throughoutthe project area and generally not suitable for ICB. All these works forwhich the Bank is making no disbursements, valued at US$17.7 million wouldinvolve a large number of contracts, each not exceeding US$150,000 whichwould be handled by LCB or on force account arrangements depending on localconditions and type of work involved.
4.28 Procurement of vehicles and equipment valued at US$2.0 millionwould be on the basis of LCB. However, wheniever practical, procurement
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will be grouped to form bid packages exceeding US$150,000, in which caseaward of contract will be made under ICB.
4.29 Contracts for 92 man months of technical assistance by consultantswith a total value of US$1.0 million would be awarded in accordance withprocedures for international recruitment acceptable to the Bank (Bankguidelines of August 1981) and employed on terms and conditions acceptableto the Bank. The remaining project costs valued at US$5.7 mainlyconsisting of operating cost and local staff and fellowship, would not lendthemselves to bidding procedures and would be committed in accordance withprudent established practice.
4.30 Contract Review. All bidding packages for civil works estimatedto cost over US$500,000 equivalent and bidding packages for goods overUS$150,000 equivalent would be subject to the Bank's prior review ofprocurement documentation resulting in a coverage of about 80% of the totalestimated value of work and goods contracts. The balance of contractswould be subject to random post review by the bank after contract award.
H. Accounts, Audit and keports
Accounts and Audits
4.31 The accounting system presently in use within DEFCS is adequate.The Project Management Unit (PMU) will keep separate accounts for theProject, maintained in accordance with acceptable accounting principles, toreflect the operations and financial position of the Project. The staff ofthe PMJ would include an accountant to maintain the Project accounts, underthe direct supervision of DEFCS chief accountant. The Project's internalaccounting and control system would provide for the recording and reportingof project-related financial transactions and for compilation and controlof supporting documents for disbursement requests against Bank Loan.
4.32 The existing system of financial control and audit of governmentalbodies is satisfactory. Although ministries and other public institutionshave a substantial autonomy in the physical implementation of theirprograms, the Ministry of Finance tightly controls their financialcommitments, transactions and accounts. Two officials of the Ministry ofFinance - an account officer and a financial controller - are responsibleto oversee the financial operations undertaken by a particular GovernmentService Department. The financial controller reviews all proposedcontracts and must countersign them before they can take effect. Theaccount officer maintains records of financial operations of the ServiceDepartment and prepares monthly reports. He also prepares end-of-yearfinancial statements which are certified by a senior Finance MinistryController. These arrangements would be adopted for the Project.Assurances were obtained at negotiations that separate accounts for projectworks would be maintained by PMU and would be audited by the Ministry ofFinance. A detailed report of such audit would be submitted to the Bankwithin six months after the end of each fiscal year.
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I. Environmenta> Impact
4.33 The project plantations would have a beneficial environmentalimpact in that they would maintain areas under forest cover, therebypreserving an important watershed, minimize soil erosion and provide asecure environment for the protection of wild life in the project area.The forests would also provide a recreational outlet for both urban andrural populations. In addition the project would improve the area'secosystem by integrating forest plantations with livestock grazing.
V. Project Implementation
A. Organization and Management
5.01 MARA, through its Forestry Directorate (DEFCS) would have theprimary responsibility for the overall execution of the Project (Chart).The management and the supervision of technical operations of the projectwould be carried out by a Project Management Unit (PMU) which would beestablished in Rabat and directly responsible to the director of DEFCS.Physical implementation of the plantation and pasture development programswould be carried out by provincial forestry staff (para 5.05). Draft termsof reference for the PMU are in the project file. During negotiations thebank was informed that the PMU was established. In addition, 4 key staffmembers of the PMU, the project manager, the deputy project manager, andthe two project accountants were appointed. Assurances were obtained atnegotiations that the PMU will continue to be staffed at all times by aproject manager, deputy project manager and accountant, with qualificationsand experience acceptable to the bank. To assist in the smooth running ofthe project's technical operations, a Technical Coordinating Committeewould be convened regularly consisting of the existing five departmentalheads oi DEFCb, the two Provincial Forestry Officers (Khemisset andK6nitra) and Head of the Rural Affairs Division of MOI. The director ofDEFCS would be the chairman, and the project manager the secretary of thecommittee, which would meet quarterly. Assurances to this effect wereobtained during negotiations.
5.02 MOI, as guardian of collective laads and tutor of the ruralcommunes would play a major role in organizing the participation of thepeople in forestry and pastoral development and in helping develop theadministrative and legislative instruments of the forestry subsector.MOI's assistance in this would be secured through its participation in theproject's Technical Committee and existing forestry Councils. Assistancein project coordination and arbitration, particularly in respect toimproved forest legislation, would also be sought through the existingNational Forestry Council (para 2.20) which meets at least once a year andis already responsible for coordinating programs and budgets relating toforestry and pastoral development and for defining forest policy. TheDirector of DEFCb provides permanent secre:arial services for this Council.
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5.03 At the provincial level (Kenitra and Khemisset), assistance inproject coordination would be carried out by the existing ProvincialForestry Council (para 2.20) under the chairmanship of the Governor. TheCouncil meets when necessary, but at least twice a year, in March andSeptember. The Council would be particularly useful for the project inrationalizing and regulating the people's participation including thecommune's budgets concerning the project plantation and pastoralactivities, and in testing the practicality of proposals to be made in thestudy discussed in para 7.05.
5.04 Equally important, particularly for the grazing aspects affectingthe state land plantations, would be at local level the Communal Council(para 2.20). The Communal Council plays an important role in representingthe communes in the forest exploitation committees, which are directed byDEFCS and responsible for the sale by auction of the woodlots on State orcollective land. In addition, the Council plays a major role in assistingDEFCS in the organization of forest range improvement programs.
5.05 Plantation Management. The Provincial forestry services of DEFCS(para 2.21) in Kenitra and Khemisset would implement the plantationprogram. PMU would coordinate and plan through the Provincial forestryofficer all the project's plantation operations and planting materialrequirements, but the actual implementation and daily supervision would becarried out through provincial forestry staff in the project area. Thestaff in the project area is divided into five forestry subdivisions (4 inK6nitra and 1 in Khemisset) which are headed by forest officers. Eachsubdivision is further divided in districts and subdistricts which arestaffed by junior forestry staff. After the annual plantation program isjointly agreed by PMU and senior Provincial forestry officers, it would bethe responsibility of the deputy project manager to monitor the projectplantation program. In addition he would be responsible for improving thetechnical standards of silvicultural practices in the project area byproviding on the job training to forestry staff.
5.06 Pastoral Management. Existing legislation provides the necessaryframework for the implementation of pastoral improvements to be made underthe project. The Dahir of 1917 recognizes the tribal grazing rights onState land and the right of DEFCS to limit the stocking rate to the grazingcapacity of the forest range. Implementation decrees provide for thecreation of local commissions composed of representatives of the technicalservices, the local authorities and the tribes concerned to identifyrightholders, fix stocking rates and adopt plans for pastoralimprovements. A newly proposed law ("relative a la creation de perimetresd'amelioration pastorale dans les forats domaniales") sets out in detailthe rights and duties of the Government and the beneficiaries includingsubsidies and cost recovery arrangements is now before the Parliament forapproval. When adopted it will apply to the project. In the meantime theproject will follow cost recovery procedures outlined in para 7.06.Pastoral improvements including the organization of grazing associationswhich would plan and control the use of the improved pasture land would besubject to a preceding socioeconomic study of the area.
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5.07 kange improvement activities, primarily based on the findings of
the UINDP/FAO project (para 3.12), would be carried out by DEFCS under theproject. An experienced range management Dfficer would be employed for 2years to plan and supervise the operations of a small team (5) of forestryfield staff and to carry out on the job training of Moroccan forestrystaff. The range improvement team would work closely with the CommunalCouncil (para 5.04) and the Collectivities involved and would beresponsible for organizing the local commissions (para 5.06) and grazingassociations to be established under the project. Funds have been includedin the project for equipment and operating costs of the team, includingfunds for international recruitment of the range management officer (para4.11) since Morocco has only a few people trained at technical andprofessional levels in range-management.
b. Staffing
5.08 Apart from the small number of project staff to be recruited forPMU, some additional forestry staff at Provincial level would also have tobe recruited. Presently there are about 8 senior and junior forestryofficers, and 58 junior forestry technicians working in the project area.The additional Provincial forestry staff required to carry out the proposedprogram would require 1 senior and 3 junior forestry officers and about 10junior forestry technicians. Assurances were obtained at negotiations thatthe range management specialist (para 5.07) would be appointed no laterthan January 31, 1983 and the additional provincial forestry staff would bein position as and when required.
C. Monitoring and EvaLuation (M&E)
5.09 h&E of the physical targets related to plantation developmentwould continue to be the responsibility of DEFCS but would be assited byPMU. Specifically, parameters for the mechanical destumping operations andnumerous manual and mechanized plantation operations, including growth rateand yield, would be monitored both by project staff and DEFCS researchunit. This should greatly benefit the plarning and implementation of theadditional large scale forest plantation programs elsewhere in thecountry. M&E of project's pastoral activities would be carried out by PMUin conjunction with the "Division du domairne forestier" of DEFCS which isresponsible for pastoral improvements.
5.10 Monitoring of the fiscal matters relating to forest exploitationin the forestry sector would continue to bE the responsibility of theDivision d'economie forestiere of DEFCS. M&E of the project's pilot woodexploitation and utilization study (para. 4.19) would be a combined effortbetween this Division, DEFCS research department and PMU.
5.11 Semi-annual evaluation and progress reporting of projectactivities would be the responsibility of EMU. The reports would besubmitted to the National Forestry Council and to the Bank at the latesttwo months after each semester end. DEFCS would prepare a project
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completion report within six months of the closing of the Loan. Details ofthe contents of these reports including specific performance indicators tobe submitted to the Bank along with formats for presenting information,would be discussed and reviewed during early Bank supervision missions.Assurances to this effect were obtained during negotiations.
VI. Production, Marketing and Prices
A. Production
6.01 Wood production from the plantations would begin following theproject investment period according to rotation lengths and yields given inpara 4.08. The estimated wood production with and without project overproject's 35 year life is as follow;
6.02 Domestic demand for all categories of wood products other thanwood pulp, considerably exceeds Morocco's production potential and nodifficulty is foreseen in marketing the project's output of utility andindustrial timber and fuelwood aimed at domestic consumption (para 2.10).
6.03 In respect to the project's main output - pulpwood for theproduction of bleached hardwood sulfate pulp (blHwSa) - this will betotally absorbed by the pulpmill at Sidi Yahia. The marketing of themill's production of pulp on domestic and international markets is alsoforeseen to present no difficulty. According to FAO estimates, Moroccopaper and paperboard consumption is projected to increase at an averagerate of 5.5% p.a., reaching 260,000 tons in 1990 and 440,000 tons in 2000.Domestic demand for paper products will create a strong derived demand forthe mill's woodpulp production by domestic paper manufacturers. Prospectsfor exports are also favorable. The mill is well established in Europeanmarkets (Germany, England and France) where it has long-term contracts with
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buyers for about 65% of its exported production, the remaining 35% beingsold on the spot market. According to FAO forecasts, world's paper andpaperboard consumption will increase from 171 million tons in 1979 up to337 million tons in 1994. Consumption in Europe is projected to increasefrom 45 million tons up to 73 million tons during the same period, a 3.5%p.a. rate of growth. As a consequence, world consumption of white chemicalpulp is expected to increase from 52 million tons in 1980 up to 67 millionin 1990 - an average rate of increase of 2.8% p.a. -, of which that ofblHwSa (the type produced by the mill) from 17 million tons up to 25million tons, an increase of 4% p.a.
6.04 The Western European paper and paperboard industry is expected torely increasingly on outside sources of white pulp: a minimum of 3.5million tons of net imports by Western Europe /1 are foreseen in 1990compared with 3 million tons in 1980. Being already established in theEuropean market and having transport cost advantage over other mainnon-European exporters of BlHwSa (USA, Brazil), Moroccan incrementalproduction (17,000 ADT/year) should be easily absorbed by the Europeanpaper industry. Moreover, if the establishment of proposed new pulpingcapacities elsewhere in the world is considerably delayed, as is the casein Latin America, a global deficit might develop in wood white pulp marketsby 1990. Thus, no problems are foreseen in marketing the mill's output.
C. Price:3
6.05 Auction price of tree stands. DEFCS sells tree stands ofspecified standing wood volume at public auctions (para 2.13). Auctionprices depend on the prices of end-wood products, and on whether the standis to be clearfelled or also to be destumped. In 1981, average auctionprices in Morocco and in the project's area were DH 45/m3 o.b. foreucalyptus/2 stands to be clearfelled, DH 30/m3 o.b. for eucalyptusstands to be clearfelled and destumped, Dli 125/m3 o.b. for pinestands/3 and DH 150/m3 ob for acacia stands. On the basis of theprojected evolution of wood products' prices (see below), future auctionprices of eucalyptus stands are expected *:o increase at 1% p.a. in realterms until 1990, then remain constant; that of pine stands to grow at 3%p.a. in real terms until 1990 then remain constant; and that of acaciastands to remain constant in real terms during the entire project period.
6.06 Eucalyptus Pulpwood. The Sidi Yahia mill is the only buyer ofpulpwood in Morocco. By a convention signed with the Government in 1973,the DEFCS guaranteed the mill annual deliveries of 345,000 m3 u.b. of wood
/1 Including Scandinavian countries and Portugal./2 Eucalyptus Camaldulensis/3 Pinus Pinaster (thinnings)
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to reach the production capacity of 100,000 ADT/year of pulp. The pulpwoodprice is indexed to that of European prices of bleached hardwood sulfatepulp and revised in October every year. In October 1980, the averagemillgate pulpwood price for the 1980/81 campaign was set at DH 75/m3u.b. Li In October 1981, based on average European pulp prices ofUS$530/ADT over the last year and also because of the appreciation of theUS dollar vis a vis the Moroccan dirham, the average mill gate price ofeucalyptus pulpwood is expected to reach around DH 129/m3 u.b. Averageprices in the following years have been assumed to follow the evolution ofEuropean pulp prices and to increase in real terms by 0.5% annually until1990, to DH 131/m3 u.b. in 1985 and DH 134/m3 u.b. in 1990.
6.07 Wood pulp. In 1980, average CIF Europe price for the Sidi Yahiaeucalyptus pulp was US$ 500/ADT, selling at a US$ 35/ADT discount
relatively to premium Bleached Softwood Sulfate pulp. In June 1981, it wasUS$530/ADT. In the long-term, woodpulp prices are projected to rise at .25to .50% p.a. in real terms. The price of Bleached Softwood Sulfate pulp ininternational markets is projected to be in the range of US$ 555-570/ADT in1985 and of US$ 560-585/ADT in 1990 (in 1980 US$). Moroccan BleachedHardwood Sulfate pulp has been projected to sell for US$ 520/ADT and US$530/ADT (1980 US$) in 1985 and 1990 respectively. In the short-term,market imbalances between demand and supply due to business cyclefluctuations and discrete jumps in production capacity are expected toinduce, as in the past, substantial international price fluctuations. Thedomestic price of pulp is regulated and set annually by the government. In1981, it was DH 2,460/ADT, identical to the export (F.O.B.) price of US$465(DH 2,465) per ADT. It is expected that this price will remain constant inreal terms.
6.08 Poles. Eucalyptus and acacia pole production of the Project'sregion is the most important in the country. In 1981, average wholesaleprices were around DH 180/m3 u.b., up from DH 70/m3 u.b. in 1974 (a 16%p.a. rate of increase). However, the demand for poles is fairly inelasticand the increased Project production would moderate price increases.Future pole prices have been assumed to remain constant in real terms.
6.09 Pine Timber. In spite of import tariffs of around 10% and otherimport restrictions (para 2.03), Morocco imports more than 80% of itsrequirements in coniferous sawlogs, sawnwood, poles and pit-prop anddomestic prices closely follow international prices. Because of depressedconditions in housing industries in major developing countries, forecastsfor real price of coniferous products call for a stagnation in 1981,followed by a moderate increase of 2% p.a. until 1990 as major countries'economies recover. Over the recent years, CIF values increase more thanFOB values, reflecting increasing freight rates. This trend is likely to
/3 Based on European hardwood sulfate pulp prices of about US$390/ADT andan exchange rate of US$1 = DH 4.2.
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continue. Therefore, real prices of coniferous wood products in Moroccohave been projected to remain constant in 1981, grow at 3% p.a. until 1990then remain constant.
6.10 Fuelwood. Most fuelwood from legaL cuttings is transformedon-site into charcoal to be sold in Morocco's main urban centers. Therural population hardly buys any fuelwood but cuts for itself what isnecessary for domestic consumption. Therefore prices are mostly determinedby demand-supply interactions in the urban areas. Since 1977, averagewholesale prices of charcoal have increased at 14% p.a. in current terms(5% in real terms) reaching DR 70/quintal ia 1981. Future prices offuelwood have been assumed to increase at the same rate as that projectedfor petroleum products; 3.5% p.a. in real terms until 1990, then remainconstant.
VII. Financial Arnalysis
A. Cost Recovery and Financing of the Sector
7.01 At current unit auction prices and plantations yields, salesrevenues of plantations to be established under the project would coverabout 60% of plantations' establishment and maintenance costs. It isGovernment's objective to increase this low recovery rate and possiblyachieve full recovery of plantations' replacement costs (para 7.02). Inaddition, only a small percentage of forest revenues are at present beingreinvested in reforestation and the bulk of reforestation programs has tobe financed through budgetary allocation (Fara 7.04). Accordingly an othermajor Government's objective is to establish appropriate institutionalmechanisms to ensure a higher level of sector self-financing. Both theseissues will be addressed by the project.
7.02 kecovery of Plantation Establishment and Maintenance Costs forProject Plantations. Auction revenues, plantation establishment andmaintenance costs and cost recovery coefficients were calculated for thevarious types of plantations to be undertaken under the Project. Costrecovery coefficients are summarized below;
/a At 10% discount rate./b In 1982 dirhams./c NPV of expected benefits over NPV of plantation establishment
maintenance costs.
because of increases in real unit prices and an expected increase in forestplantation productivity through increased yields (from 5 to 12 m3o.b./ha) and quality (through introduction of improved stand management andharvesting techniques), revenues from plantations established under theproject are expected to increase substantially. At a 10% discount rate,overall recovery of total plantation costs is estimated to improve from acurrent 60 to 97%. This discount rate, however, does not take into accountnon-quantifiable positive externalities of reforestation. Because of theexisting competition among the project area's 350 loggers participating inwoodlot auctions it is estimated that the expected auction prices would beclose to the maximum which can be collected by DEFCS and that the projected97% plantation cost recovery therefore approximates maximum achievablerecovery percentage under the project. Auction prices and cost recoverywould be closely monitored by DEFCS on the basis of stumpage values of thedifferent species. Since these values have yet never been systematicallyassessed (para 2.17), the Government would review in consultation with thebank before June 30, 1983 the present stumpage rates of its wood resourcesfor the monitoring of base prices at woodlots auctioning. On this basiswoodlots fetching too low bid prices would be taken out of the auction.This information would also be used for the study on forestry subsectorfinancing (para 7.05). Assurances to this effect were obtained atnegotiations.
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Beneficiaries of Sales Proceeds and Government's Cost Recovery
7.03 Of the 30,000 ha plantations to be established under the Project,19,000 ha would be on state land and 11,000 ha would be on collectiveland. In both cases, cost of plantation establishment and maintenance isborne by the Government, through FNF for plantations on collective landsand through budgetary allocations for those on state land(paras 2.18-2.19). however, sales revenues from plantations on collectiveland are shared between Government and collectivities. Plantation costrecovery procedures by Government are explained in para 2.16. At a 10%discount rate, although Government's estinmated cost recovery fromplantations on collective land is relatively low at 58%., plantationestablishment and maintenance costs on state land are expected to berecovered at more than 95% (assuming that total Government recovery iscomprised of both central and local communal Government, as communal forestrevenues are substituting Government's payments to local Governmentbudgets). For the project as a whole, it has been estimated thatGovernment would recover nearly 80% of tot:al project plantation costs.
NPV /a Government RecoveryGovernment Government Coefficient
Area Costs Revenues At 10% Discount Rate(ha) -(DH)--------- (%)
Eucalyptus (mechanicaldestumping)
- state Land 8,000 81,240 71,920 89- Collective Land 10,400 105,612 59,800 57
Eucalyptus (manualdestumping)
- state Land 1,600 8,128 8,400 101
Eucalyptus (new areas)
- State Land 2,400 13,968 18,696 134- Collective Land 600 3,492 2,400 69
Pine (state land) 3,500 24,010 12,900 54
Acacia (state land) 3,500 22,050 30,345 138
Total Plantations 30,000 258,500 204,461 79
/a 10/. discount rate.
Forest kevenues Earmarked for Forest Investment
7.04 Although plantation cost recovery by Government is adequate theproportion of recovered funds ploughed back into the forestry subsector is
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low, consisting only of resources levied through the FNF tax and of thepart of communes' forest resources (20%) which are reinvested in the sector(para 2.16). Under the present arrangements and with a 10% discount rate,only 34% of funds recovered from the project would be reinvested in thesector, as indicated in the table below. Complementary funding to replacethe resources harvested would have to come from Government budgetallocations.
Area Costs /b investments 10% Discount Rate(ha) --------('000 DH)------- -------(%)-------
Eucalyptus (mecha-nical destumping)
- State Land 8,000 81,240 17,720 22- Collec. Land 10,400 105,612 51,790 49
Eucalyptus(manual destumping)
- State Land 1,600 8,128 2,064 25
Eucalyptus (new areas)
- State Land 2,400 13,968 4,610 33- Collec. Land 600 3,492 1,944 56
Pine (state land) 3,500 24,010 3,170 13
Acacia (state land) 3,500 22,050 7,455 34
Total Plantations 30,000 258,500 88,753 34
/a 1OZ discount rate./b Assumed equal to Project plantation costs.
7.05 To increase the level of sector automatic self-financing, severaloptions can be envisaged among which (i) an increase of FNF ad valorem tax;(ii) an increase in the percentage of the forest revenues communes arerequired to reinvest in the subsector; (iii) the imposition of an interestrate on FNF advances for forest establishment on collective and privateland; (iv) the recovery by FNF of establishment and maintenance costs forplantation established on state land; and (v) a tax on wood imports whoseproceeds would accrue to FNF. For example, an increase of FNF tax from 10to 20% of forest products' basic auction price would nearly double the Fundrevenues and therefore the size of plantation programs it finances. Forplantations established under the project, it would increase the proportionof funds recovered by the Government which are automatically earmarked forreinvestment in the Forestry subsector (para. 7.04) from 34% to 40% at a10% discount rate. Feasibility and financial, legal and socialimplications of these alternatives will be the object of the study on
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Mlorocco's forestry subsector financing tLs be undertaker. by the Proieci:(para 4.17). Assurances were obtained at negotiations that DEFCS wouldundertake a study regarding Morocco's future forestry subsector financing,according to terms of reference satisfactory to the Bank and to becompleted by December 31, 1983, which would study the forest revenuessharing between FNF, communes and collectivities and make proposals forfuture policy and forest legislation which would more adequately bringabout automatic self-financing of the sector. After consultation with thebank, the findings and recommendations of the study would be implemented nolater than June 30, 1984.
7.06 Cost kecovery of Pastoral Improvements. Existing legislationrequires the payment of a tax for the use of state-owned forest rangeland(Decree of January 15, 1921). Herds required for family subsistence areexempt. The numbers of tax-exempted animals per family and the amount ofthe tax are fixed each year by the DEFCS. At present such taxes are notsystematically collected in the project area mainly because of weakadministrative and technical support. Under the Project, this will not bethe case with all the supporting services provided (para 5.07). The localcommission (para 5.06) would determine the stocking rates, based on thepotential of the range and the size of herd needed for family subsistenceexempt from taxes. On the basis of that information, DEFCS would determinethe annual grazing fee required from the taxable flock to recover alloperation and maintenance costs and as much of the investments as possibletaking into account the ability of the beneiiciaries to repay. DEFCS wouldfurthermore ensure that grazing associations and sylvopastoral developmentplans would be set up by the end of 1985 in accordance with a time-scheduleacceptable to the bank so as to cover the entire forest range to beimproved under the project. Assurances to t:hat effect were obtained atnegotiations.
B. Financial Assessment of Plantation Investments
7.07 The financial rates of return of investments of one hectare of thevarious types of plantations and of the total project plantation mix aregiven below, for the investments themselves and for the Government.
------- Finaacial kates of Return ( -------Project Investments per se to the Government
Eucalyptus (mechanical destumping)- State Land 8.5 8.5- Collective Land 8.5 3.8
Eucalyptus (manual destumping)
- State Land 14.5 14.5
Eucalyptus (new areas)- state Land 13.0 13.0- Collective Land 13.0 5.7
Pine (state land) 6.7 6.7
Acacia (state land) 14.0 14.0
Total Plantations 9.7 8.0
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The Net Present Value (at 10% discount rate) of benefits received bycollectivities for one hectare of eucalyptus plantation is about DH 3,700,i.e., an average annual net revenue of (1981) DH 370/ha. The only possiblealternative use of the land would be as rangeland. Under the region'sclimatic conditions, (400 to 600 mm of rainfall) fodder production ofrangeland would be about 200 Feed Units per ha, corresponding to a maximumnet benefit from livestock of about DH 100/ha/1 .
VIII. Benefits and Justification
A. Benefits and Beneficiaries
8.01 The direct quantifiable benefits of the proposed project wouldarise from an increase in the production of pulpwood, other industrial woodand fuelwood. The project would allow the pulpmill at Sidi Yahia to workat full capacity, increasing its annual output from 83,000 ADT up to100,000 ADT of pulp, which would help to earn an estimated (1981) US$190million of foreign exchange in export earnings over a 30 year period(Ub$i6.3 million per year). It would provide about 470,000 m3 ofindustrial coniferous wood, substituting for imports and representing about(1981) Ub$55 million in foreign exchange over the same period. Theproduction of tanning bark would also substitute for Morocco's imports.Finally, the Project would produce about 2,600,000 m3 of fuelwood, anaverage of 72,000 m3 per year. This average annual fuelwood production,transformed into charcoal, is equivalent to 3,500 tons of LiquifiedPetroleum Gas for household use which would cost Morocco about US$1.4million in imports (1981 prices). It is also equivalent to about 1% of thecountry's estimated annual consumption of fuelwood.
8.02 Over the five-year implementation period, the project is expectedto generate about 7,100 man-years of direct employment for unskilled laborand about 1,000 man-years of skilled and semi-skilled labor. A large partof the employment created would therefore provide unskilled jobopportunities and would benefit the poorer workers in the region. Over thelife of the project and with present practices and techniques, the loggingof project incremental wood production would provide about 14,000 man-yearsof labor and its charcoaling another 10,400 man-years to local forestryworkers, most of whom are underemployed and have annual incomes around orbelow the country's absolute poverty level of US$270 per capita (1980). Inaddition, loading and hauling of incremental wood production would generateabout 3,700 man-years of employment.
8.03 The project would also increase the forest revenues ofcollectivities and communes within its boundaries. The research, andtechnical assistance components would make an important contribution to theGovernment's institution building effort. In particular, the study oflegal and financial aspects of the sector would allow the Government toadopt and implement policies to promote more effectively the development ofthe forestry subsector. Finally, the pasture improvement component would
/1 Price of barley DH 0.95/kg; conversion factor 0.5 for existing type oflivestock management.
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compensate local population for fodder lost through reforestation of tractsof lands they used for grazing. It would aLso introduce rational methodsof range management.
B. Economic AnaLysis
8.04 The overall economic rate of retura (ERk) of the project isestimated at 20% /1. benefits have been measured as the incrementalvalue of wood production, valued at economi- price. Costs includeinvestment and incremental operating costs, also valued at economicprices. Economic prices revalue those outputs or inputs tradable on worldmarkets at border prices adjusted for transport, handling and processing inMorocco. Outputs and inputs that are not tradable on world markets havebeen valued at their marginal economic valuas for project purposes.Unskilled labor was priced at its estimated opportunity cost (66% of marketwages) and skilled labor at full domestic wages, adjusted to border pricesthrough the Standard Conversion Factor for aon-traded goods (.71).Separate ERRs have been calculated for each type of plantation to beundertaken and are given below.
Economic Rates of Return (%)
Eucalyptus Plantations after Destumping 25Eucalyptus Plantations on New Areas 22Pine Plantations on New Areas 12Acacia Plantations on New Areas 17Total Plantations 22
The high ERK on plantations established under the project in comparisonwith the financial rate of return para (7.07) are due to the high taxcomponent included in domestic prices of equipment and machinery (50% ofbase price) used for project operations (particularly mechanicaldestumping), and the importance of unskilled labor costs in totalplantation maintenance and protection costs. For eucalyptus plantationsestablished after destumping this difference is compounded by the fact thatthe economic cost of destumping (around DH 4,400/ha) is more than offset bythe high economic value of stumps recovered and used as fuelwood (DH4,600/ha). ERR's of the project and the various types of plantations werecomputed (i) for an economic value of fueluood at 50% of its estimatedvalue; and (ii) without including the economic value of stumps in theproject benefits streams. They are given below:
/1 This includes all project costs. However, some unquantifiable benefits(research, training, soil protection, cther environmental benefits) arenot included in this calculation.
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Economic Rates of Return (X)With Fuelwood Valueat 50% of of stumpsestimated value excluded
Eucalyptus Plantations after Destumping 16.5 13.5Eucalyptus Plantations on New Areas 21.0 22.0Pine Plantations 11.5 12.0Acacia Plantations 15.0 17.0Total Plantations 16.5 14.0Total Project 15.5 13.5
8.05 The project's high Economic kate of Return suggested a possiblemutually exclusive alternative to the project. Because of the nature ofthe region's soils, the only alternative use of the land would be asrangeland. An alternative to the project would be to clearfell and destumpthe 20,000 ha of old eucalyptus plantations as envisaged in the project,then use them as rangeland. The ERR of the difference between net benefitstreams of the two alternatives is 12% in favor of the proposed forestryproject. However, the only alternative to the Project likely to beimplemented by the Government (on financial rather than economic grounds)would to be to clearfell the 20,000 ha and use them as rangeland withoutrecovering the stumps (the estimated financial cost of destumping is aboutDH 5,500/ha and the current sales value of stumps of DH 1,000/ha). In thiscase, the ERk of the difference between the net benefit streams of the twoalternatives is even greater (22%) in favor of the proposed forestryproject.
C. Project Risks and Sensitivity Tests
8.06 No major or unusual technical risks threaten the success of theproposed project. Normal risks of fire in the semi-arid zone plantations,and of pathogens, have been adequatly dealt with in project design andprovisions have been made to assure adequate protection. The plantationestablishment technologies proposed have been used in several Mediterraneanand other countries with success under similar semi-arid conditions.
8.07 Delays in implementation, cost overruns and lower than expectedproduction are the most likely risks to achieving the Project's objectivesand ERR. Switching values for project's critical variables are given below:
Switching Values for Critical Variables /aEucalyptusafter Des- Eucalyptus Total Totaltumping New Areas Pine Acacia Plantation Project
The most critical variable is the yield to be achieved per hectare ofplantation. A 30% decrease, other things remaining as expected, wouldreduce the Project' Economic Rate of Return Lo 10%. However, such adecrease in yields is unlikely, as projected yields are conservative andalready take into account foreseeable technical and managerial constraintsto plantation establishment and maintenance.
8.08 Sensitivity tests were performed to assess the impact of thesecritical variables on the project's outcome;
(i) for the Project as a whole, a 10% decrease in benefits wouldreduce the economic rate of return to 17%, a 20% decrease to 13%.A two-year delay to 12%, a 20% increase in plantationestablishment and maintenance costs to 14%; and
(ii) for different types of plantations, the same sensitivity tests asabove for critical variables will affect to a lesser extent theeucalyptus plantations (whose ERR w.uld remain above 13% in allcases) and acacia plantations (none below 14X). For pineplantations the ERk is estimated to fall to 11% for a 20% increasein establishment and maintenance costs, to 10% for a 20% decreasein benefits and to 9% for a 2-year lelay in benefits.
For all types of plantations, a most critical variable is a delay inexpected benefits. A two year delay is equivalent to a 20% drop iniexpected benefits. This underlines the importance of strong projectmanagement to coordinate project's activities and minimize delays betweenfelling, destumping and planting operations.
IX. Nlajor Agreements reached at Negotiations
9.01 During negotiations assurances were obtained that:
(i) A forest management plan would be introduced in the project areaas discussed in para 4.13;
(ii) a study on technical manpower and training requirements in scopeand detail acceptable to the Bank would be submitted to the Bankno later than June 30, 1983 and the findings and recommendationsincluding proposals regarding organization and responsibilities ofin-service training for DEFC6 would be implemented not later thanDecember 31, 1983 (para 4.17);
(iii) a study would be made to improve harvesting techniques andcharcoal making and determine the appropriate steps to be taken toestablish a forest exploitation and logging cooperative amongforest workers which would be submitted to the Bank not later thanDecember 31, 1983. The recommendations of the study would beimplemented after taking account the comments of the Bank (para4.18);
(iv) to assist PMU in the coordination of the project's technicaloperations, a technical coordinating committee would regularlyconvene at least quarterly (para 5.01);
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(v) the forest range specialist would have been appointed no laterthan January 31, 1983 and additional provincial project staffrequired for the project would be in position as and when required(para 5.08);
(iv) Government would review, in consultation with the Bank before June30, 1983, the present stumpage rates of its wood resources asdiscussed in para 7.02;
(vii) DEFCS would complete a study regarding the subsector's futurefinancing mechanisms before December 31, 1983 and that afterconsultation and exchange of views with the Bank therecommendations will be implemented not later than June 30, 1984as discussed in para 7.05; and
(viii) DEFCb would adopt grazing charges for forest range, establishgrazing associations and prepare sylvopastoral plans according toan agreed time schedule as discussed in para 7.06.
9.02 With the above assurances and conditions, the proposed project issuitable for a Bank loan of US$27.5 million.
IbiK Fiscal Year Disbursement Cummulative DisbursementSemester Ending During Semester At End of Semester
FY 1983
December 31, 1982 1.3 1.3June 30, 1983 2.2 3.5
FY 1984
December 31, 1983 0.6 4.1June 30, 1984 3.7 7.8
FY 1985
December 31, 1984 1.6 9.4June 30, 1985 3.6 13.0
FY 1986
December 31, 1985 1.6 14.6June 30, 1986 3.9 18.5
FY 1987
December 31, 1986 3.2 21.7June 30, 1987 3.8 25.5
FY 1988
December 1987 1.5 27.0June 1988 0.5 27.5
- 47 -ANNEX 2Page 1
KINGDOM OF MOROCCO
STAFF APPRAISAL REPORT
FORESTRY PROJECT
Selected Documents and Data Available in Project File
A. Reports and Studies Relating to Project
Al - Rapport provisoire d'un Projet Forestier No. 51/79 MOR 16 by FAO/CP,Rome, 22 Novembre 1979.
A2 - Projet Forestier Mamora-Rharb: Royaume du Maroc, Ministere de l'Agri-culture et de la Reforme Agraire (MARA), Direction des Eaux etForets et de la Conservation des Sols (DEFCS).
A3 - Projet Forestier Gharb-Mamora - RappDrt de preparation No. 60/80 MOR 20,FAO/CP, Rome, 31 Mars, 1981.
A4 - Extraits de la legislation en matiere de forets: Royaume du Maroc,MARA, DEFCS.
A5 - Annales de la Recherche forestiere au 5aroc, Tomes 17, 18, 19 (resp.1977, 1978, 1979): Royaume du Maroc, MARA, DEFCS.
A6 - Fore^ts de la Mamora, Proces verbal d'amenagement, Revision d'amenage-ment, Lillelund et al., Rabat, Aug. 1973.
A7 - Reglement d'exploitation des peuplements d'eucalyptus du secteurRharb-Laroche, Officina Technica, Madrid.
A8 - Plan National de Reboisement - Rapport du Governement du Maroc,FAO AT 2803; Rome 1970.
A9 - Plan 1978-1980, DEFCS.
A10 - Review of Forestry Needs in Morocco - Recommendations for US AidInvolvement by D.L. Adams and K.A. Christopherson, January 30, 1980.
B. Selected Working Papers
ANNEX 3 : Forestry Sector in MoroccoANNEX 4 : Technical Aspects of the ProjectANNEX 5 : Assessment of the Pulp Mill of Cellulose du Maroc and Projected
